AFP - Squid Business

India launches strikes on Pakistan, Islamabad vows to ‘settle the score’

India and Pakistan exchanged heavy artillery along their contested frontier on Wednesday, after New Delhi launched missile strikes on its arch-rival in a major escalation between the nuclear-armed neighbours.Dead were reported on both sides. Pakistan said Indian strikes had killed at least eight people, and India said Pakistani artillery fire had killed three civilians along the de facto border in contested Kashmir.New Delhi announced it had carried out “precision strikes at terrorist camps” at nine sites in Pakistan-administered Kashmir and in Punjab state, days after it blamed Islamabad for a deadly attack on the Indian-run side of the disputed region.The Indian army said “justice is served”, with New Delhi adding that its actions “have been focused, measured and non-escalatory in nature”.Pakistan’s Defence Minister Khawaja Muhammad Asif accused Indian Prime Minister Narendra Modi of launching the strikes to “shore up” his domestic popularity, but said that Islamabad had struck back.”The retaliation has already started”, Asif told AFP. “We won’t take long to settle the score.”- ‘Shelling raining down’ -Islamabad reported eight civilians — including one child — killed in the strikes, and AFP correspondents in Pakistani-run Kashmir and Punjab heard several loud explosions.In Muzaffarabad, the main city of Pakistan-administered Kashmir, troops cordoned off streets around a mosque Islamabad said was hit by a strike, with marks of explosions visible on the walls of several homes.Shortly after, India’s army accused Pakistan of “indiscriminate” firing across the Line of Control (LoC), the de facto border in Kashmir, with bursts of flame as shells landed, AFP reporters saw.”Three innocent civilians lost their lives”, the Indian army said, adding it was responding in a “proportionate manner”.”We woke up as we heard the sound of firing”, Farooq, a man in the Indian town of Poonch, told the Press Trust of India news agency from his hospital bed, his head wrapped in a bandage. “I saw shelling raining down… two persons were wounded”.Wreckage of an Indian fighter jet was seen by an AFP photographer at Wuyan — on the Indian controlled side of Kashmir.An security source confirmed it was an Indian aircraft, but the reason for its crash, and the fate of the pilot, was not immediately known.India had been widely expected to respond militarily to the April 22 attack on tourists in Indian-administered Kashmir by gunmen it said were from Pakistan-based group Lashkar-e-Taiba, a UN-designated terrorist organisation.That assault left 26 people dead, mainly Hindu men, in the tourist hotspot of Pahalgam. No group has claimed responsibility.New Delhi has blamed Islamabad for backing the attack, sparking a series of heated threats and diplomatic tit-for-tat measures.Pakistan rejects the accusations, and the two sides have exchanged nightly gunfire since April 24 along the LoC, according to the Indian army. Pakistan also said it has held two missile tests.- ‘Maximum restraint’ -The violence is a dangerous escalation between the South Asian neighbours, who have fought multiple wars since they were carved out of the sub-continent at the end of British rule in 1947.Diplomats have piled pressure on leaders to step back from the brink of war. “The world cannot afford a military confrontation between India and Pakistan,” the spokesman for UN chief Antonio Guterres, Stephane Dujarric, said in a statement, adding that Guterres called for “maximum restraint.”US President Donald Trump told reporters in Washington he hoped that the fighting “ends very quickly”.US Secretary of State Marco Rubio has spoken to top security officials in both New Delhi and Islamabad since the strikes.Rubio said he was monitoring the situation “closely” and that he would “continue to engage both Indian and Pakistani leadership towards a peaceful resolution”.India’s army said it had “demonstrated considerable restraint in selection of targets and method of execution”, adding that “no Pakistani military facilities have been targeted”.Pakistani Prime Minister Shehbaz Sharif, calling the Indian attack “unprovoked” and “cowardly”, said the “heinous act of aggression will not go unpunished.”Rebels in Indian-administered Kashmir have waged an insurgency since 1989, seeking independence or a merger with Pakistan.India regularly blames its neighbour for backing armed groups fighting its forces in Kashmir, a charge that Islamabad denies.Iranian Foreign Minister Abbas Araghchi is expected in New Delhi on Wednesday, two days after a visit to Islamabad, as Tehran seeks to mediate. India was also set to hold several civil defence drills Wednesday, while schools in Pakistan’s Punjab were closed, local government officials said.The strikes came just hours after Modi said that water flowing across India’s borders would be stopped. Pakistan had warned that tampering with the rivers that flow from India into its territory would be an “act of war”.burs-pjm/tym

India launches strikes on Pakistan, Islamabad vows to ‘settle the score’

Merz se rend en chancelier allemand fragilisé à Paris, puis Varsovie

Après avoir été élu dans la douleur, Friedrich Merz se rend mercredi en chancelier allemand affaibli mais “très européen” à Paris, puis Varsovie, deux capitales où il espère relancer des relations en souffrance.Le président Emmanuel Macron l’a certes félicité après sa nomination en anticipant un moteur franco-allemand “plus fort que jamais”. Mais l’élection mardi aux forceps de Friedrich Merz au poste suprême par les députés allemands, après deux tours de scrutin alors qu’il devait s’agir d’une formalité, inquiète. Car elle a révélé au grand jour la fragilité politique du dirigeant conservateur et de sa coalition avec les sociaux-démocrates, sur qui toute l’Europe comptait pour remettre l’Allemagne au centre du jeu après des années de surplace sous l’ère Olaf Scholz et six mois de crise politique intérieure.”La situation en Allemagne est un choc politique”, a asséné l’eurodéputée française Valérie Hayer sur X. “Une catastrophe absolue”, affirmait une ministre française sous couvert d’anonymat à l’AFP.”Jusqu’ici, il avait renvoyé l’image d’un gouvernement soudé, fort et efficace. Or cela vient brouiller ce message. Cela brouille l’image du retour de l’Allemagne sur la scène européenne”, commente Claire Demesmay, chercheuse associée au Centre Marc Bloch de Berlin, dans un entretien avec l’AFP.Comme il est d’usage en Allemagne, tout nouveau chancelier effectue sa première visite officielle à l’étranger en France, puis en Pologne. Mardi soir, Friedrich Merz, qui ira aussi vendredi à Bruxelles, s’est qualifié sur la chaîne NTV de “chancelier très européen”.- Espoirs -Paris nourrit de grands espoirs dans le président du parti démocrate-chrétien allemand, qui parle ouvertement de renforcer la souveraineté européenne, y compris militaire. Le nouveau gouvernement allemand de coalition promet de “renforcer l’amitié” aussi bien entre l’Allemagne et la France qu’avec la Pologne, notamment dans le cadre du “Triangle de Weimar”, ce forum de coopération trilatérale entre la France, l’Allemagne et la Pologne créé en 1991. “La volonté d’échanger avec ces deux pays est clairement là”, a noté dans un entretien avec l’AFP Martin Koopmann, directeur de la fondation Genshagen, basée près de Berlin et chargée de développer les relations entre ces trois pays. Mais il souligne la nature compliquée des relations entre l’Allemagne et la Pologne qui, par ailleurs, n’est pas dans la zone euro contrairement à Paris et Berlin.Le parti nationaliste Droit et Justice (PiS), actuellement dans l’opposition, continue de réclamer des réparations pour les dégâts et pertes de la Seconde Guerre mondiale à l’Allemagne.A moins de deux semaines du premier tour de l’élection présidentielle polonaise, le 18 mai, ce sujet est particulièrement sensible: pour le Premier ministre Donald Tusk, européen convaincu, il est délicat d’afficher une trop grande proximité avec le chancelier allemand. M. Tusk s’est d’ailleurs contenté sur X d’un bref message de félicitations et d’un “see you tomorrow in Warsaw”.Sur les questions de défense et l’Ukraine, l’hostilité affichée par Donald Trump et son administration à l’égard de l’Europe et les doutes sur le soutien militaire américain ont fait bouger les lignes en Allemagne.- Divergences -Friedrich Merz est favorable à l’idée de placer son pays – dépendant jusqu’ici de la protection nucléaire américaine – sous le parapluie français et britannique. Ce qui constitue une césure énorme avec la tradition atlantiste germanique.Il est aussi – prudemment – ouvert à l’idée de fournir des missiles longue portée Taurus à Kiev.D’autres divergences traditionnelles entre ces trois pays ne devraient toutefois pas disparaître du jour au lendemain.Berlin a certes assoupli en mars sa règle du “frein à l’endettement”, qui limite la capacité d’emprunt du pays pour les dépenses militaires et pour les régions, mais elle n’est pas prête à donner son feu vert à des euro-obligations, promues par la France.Sur le plan commercial, l’Allemagne, nation fortement exportatrice, devrait continuer à pousser à la signature d’accords de libre-échange, comme celui du Mercosur, tandis que la France, craignant une fronde agricole, y est défavorable.”Sur le plan de la politique énergétique, les différences restent également très fortes entre les trois pays”, note M. Koopmann, “même si la Pologne commence à se tourner vers les renouvelables et la France a fait quelques concessions sur le nucléaire”.

Merz se rend en chancelier allemand fragilisé à Paris, puis Varsovie

China eases monetary policy to boost ailing economy

China on Wednesday eased key monetary policy tools in a bid to boost its ailing economy as it struggles with the effects of weak consumption and Donald Trump’s trade war.The country’s leaders are battling to reignite growth, which has not fully recovered since the Covid-19 pandemic, crippled by sluggish domestic demand and a protracted property sector crisis.That has been compounded by a punishing trade standoff that has seen the US president impose tariffs reaching 145 percent on many Chinese products and Beijing retaliate with 125 percent duties on imports from the United States.On Wednesday, the head of China’s central bank Pan Gongsheng told a news conference that Beijing would cut a key interest rate and lower the amount banks must hold in reserve in order to boost lending.He said Beijing’s policies aimed “to support technological innovation, boost consumption, and promote inclusive finance, among other areas”.A persistent crisis in the property sector — once a key driver of growth — also remains a drag on the economy.In an effort to boost demand, Pan also said the bank would cut the rate for first-time home purchases with loan terms over five years to 2.6 percent, from 2.85 percent.The moves represent some of China’s most sweeping steps to boost the economy since September.- More help needed -But analysts pointed to a continued lack of actual stimulus funds needed to get the economy back on track.”The policy measures released today are positive for the market and the economy,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.”What is missing in this conference is new fiscal policy measures, which I think may be reserved for the future, if the economy suffers from the trade war and shows clear signs of slowdown,” he added.Gary Ng, senior economist for Asia Pacific at Natixis, told AFP “it will take more to support growth”.”If economic data does not improve, we will likely see more actions down the road,” he said.Economists have warned that the disruption in trade between the tightly integrated US and Chinese economies could threaten businesses, increase prices for consumers and cause a global recession.Beijing last month blamed a “sharp shift” in the global economy for a slump in manufacturing.And exports soared more than 12 percent in March as businesses rushed to get ahead of Trump’s swingeing tariffs.Beijing has said it is targeting annual growth this year of around five percent — the same as last year and a figure considered ambitious by many economists.China last year announced a string of aggressive measures to reignite its economy, including interest rate cuts, cancelling restrictions on homebuying, hiking the debt ceiling for local governments and bolstering support for financial markets.But after a blistering market rally fuelled by hopes for a long-awaited “bazooka stimulus”, optimism waned as authorities refrained from providing a specific figure for the bailout.Analysts now think the impact of tariffs may lead Beijing to reconsider its caution and push ahead with fresh stimulus.

La Chine “déplore” les frappes indiennes sur le Pakistan et appelle à la “retenue”

Sotheby’s postpones historical gems auction after India backlash

Sotheby’s in Hong Kong postponed an auction of gems with ties to early Buddhism on Wednesday after opposition from India, which said the jewels were the country’s religious and cultural heritage.The Piprahwa gems, which the auction house said dated back to around 200 BC and were unearthed in 1898 by Englishman William Claxton Peppe in northern India, were scheduled to go under the hammer in Hong Kong on Wednesday.The Indian Ministry of Culture issued a legal notice on Monday calling the jewels “inalienable religious and cultural heritage of India and the global Buddhist community” and said the sale violated Indian and international law.It asked for the auction to be cancelled and the jewels repatriated to India, as well as an apology and full disclosure of provenance documents, according to the notice posted on X.Sotheby’s said on Wednesday morning that the auction has been postponed “in light of the matters raised by the Government of India and with the agreement of the consignors”.”This will allow for discussions between the parties, and we look forward to sharing any updates as appropriate,” the auction house said in a statement.Sotheby’s said the night before that the auction would “proceed as planned”.The Indian Ministry of Culture wrote on X that it was “pleased to inform” readers that the auction was postponed following its intervention.The gems in the Hong Kong auction were part of a collection of close to 1,800 gems and precious metal sheets — including amethysts, pearls and gold pieces worked into small beads.They were excavated at the Piprahwa village near the Buddha’s birthplace and have been attributed to a clan linked to the religious figure.Indian authorities said an inscription on one of the caskets confirms the contents — which include bone fragments — as “relics of the Buddha, deposited by the Sakya clan”.In an article written for Sotheby’s, Chris Peppe said his ancestor “gave the gems, the relics and the reliquaries to the Indian government” and that his family kept “a small portion” of the discovery.

Taiwan bicycle makers in limbo as US tariff threat looms

Weeks after Donald Trump’s global tariff bombshell, Jeff Chen’s factory in Taiwan is as busy as ever turning out carbon and alloy wheels for high-end bicycles bound for US and European markets.But he wonders how much longer it will last. The US president’s initial 32 percent tariff on Taiwan stunned the island’s bicycle manufacturers, who were racing to meet orders ahead of the northern summer before the new toll was announced.Some US customers immediately cancelled or postponed shipments, only to reverse their decision when the hefty tariffs on Taiwan and many of America’s trading partners were paused for 90 days.With a global 10 percent levy still in place and no clarity on what happens once the three months are up, Taiwanese bicycle companies and US buyers are in limbo.”They don’t know what to do. There’s no time to respond,” said Chen, general manager of Joy Group, which makes wheels and hubs in Taichung. Joy Group, founded by Chen’s grandfather in 1971, is one of more than 900 companies assembling bicycles or making components, including wheels, pedals and frames, mostly in central Taiwan, the island’s manufacturing heartland.Some companies have received a surge in orders as US customers rush to import bicycles and components before the end of the 90-day period.Others, like Joy Group, have seen little change in demand, which Chen put down to inventory leftover from Covid-19, when retailers stocked up to meet surging demand for bicycles.Chen said US customers had passed on the 10 percent tariff to consumers, but a 32 percent levy could put the brakes on further orders, with inevitable knock-on effects in Taiwan.- ‘Hidden champions’ -“If we are getting affected, then the company would need to think how to cut down… everybody will be facing the same issues,” said Chen, whose company also has four factories in China.Taiwan has long been a key player in the global bicycle industry, but it faced an existential crisis more than two decades ago when an ascendant China drew many of the island’s manufacturers to its shores.Rather than try to compete with China’s cheaper, mass-produced two-wheelers, Taiwanese companies collaborated to upgrade their manufacturing techniques and produce quality bikes and components for high-end markets, mainly in Europe and the United States.While Taiwan’s export volume has fallen dramatically from around 10 million in the 1990s to 1.3 million in 2024, exacerbated by the pandemic glut, the average export price of its bicycles has risen sharply.A traditional bike was valued at US$1,131 last year and an e-bike US$1,848, industry data and analyst reports show. China, which exported more than 44 million bikes in 2024, had an average price of US$57.Taiwan bicycle industry expert Michelle Hsieh said the island’s success in targeting the high-end market was down to “hidden champions” in the supply chain.Small and medium-sized companies — a hallmark of Taiwan’s manufacturing sector — were highly specialised and flexible, Hsieh said, making them “indispensable” in the global market. “They are making things that other people cannot make so they have that competitive advantage,” said Hsieh, a sociologist at Academia Sinica in Taipei.Trump’s hopes that higher tariffs will force firms to move their production to the United States were dismissed by Taiwanese and American bicycle manufacturers as fanciful.- ‘Like a big family’ – It would be “nearly impossible” to set up a factory in the United States in the next three to five years, Taiwanese bicycle company Giant told AFP, citing higher costs, labour challenges and the lack of a “bicycle industry cluster”. “Taichung is the absolute centre of the bicycle industry,” said Tim Krueger, industry veteran and chief executive of US-based Esker Cycles, which imports frames and parts from Taiwan for its mountain bikes. “That’s where the expertise in the whole world is on how to properly manufacture bicycles.”Some bike makers in Taiwan look set to benefit from the 145 percent tariff on Chinese products in the short term, with US customers seeking out Taiwanese suppliers, Hsieh said.But Tsai Po-ming of the Cycling & Health Tech Industry R&D Center, which was set up in 1992 to help Taiwan’s industry become more competitive, said there could also be negatives. Chinese manufacturers might try to offload their lower-end bikes in Europe if Trump’s tariffs fuelled inflation, Tsai told AFP.”Consumers might feel that the prices are too high, and although our products are mid to high-end in quality, they might prefer to buy lower priced models instead,” he said.At Pacific Cycles’ factory near Taipei, workers assembled fold-up bicycles mostly destined for Europe and Asia.While the company has little direct exposure to the US market, president Eva Lin said if one of its suppliers was hurt by the tariffs, then Pacific Cycles would be affected.”The complete industry is like a big family,” she said.”No one can escape from the impact.”