Economy

CME blamed the outage, which halted trading for more than 11 hours, on a cooling failure at a data centre in Chicago.

Global futures markets were thrown into chaos for several hours after CME Group, the world’s largest exchange operator, suffered one of its longest outages in years, halting trading across stocks, bonds, commodities and currencies.

By 13:35 GMT on Friday, trading in foreign exchange, stock and bond futures as well as other products had resumed, after having been knocked out for more than 11 hours because of an outage at an important data centre, according to LSEG data.

CME blamed the outage on a cooling failure at data centres run by CyrusOne, which said its Chicago-area facility had affected services for customers, including CME.

The disruption stopped trading in major currency pairs on CME’s EBS platform, as well as benchmark futures for West Texas Intermediate crude, Nasdaq 100, Nikkei, palm oil and gold, according to LSEG data.

‘A black eye’

Trading volumes have been thinned out this week by the United States Thanksgiving holiday, and with dealers looking to close positions for the end of the month, there was a risk of volatility picking up sharply later on, market participants said.

“It’s a black eye to the CME and probably an overdue reminder of the importance of market structure and how interconnected all these are,” Ben Laidler, head of equity strategy at Bradesco BBI, said.

“We complacently take for granted that much of the timing is frankly not great. It’s month-end, a lot of things get rebalanced.”

“Having said that, it could have been a lot worse; it’ll be a very low-volume day. If you’re going to have it, there would have been worse days to have a breakdown like this,” he said.

Futures are a mainstay of financial markets and are used by dealers, speculators and businesses wishing to hedge or hold positions in a wide range of underlying assets. Without these and other instruments, brokers were left flying blind, and many were reluctant to trade contracts with no live prices for hours on end.

“Beyond the immediate risk of traders being unable to close positions – and the potential costs that follow – the incident raises broader concerns about reliability,” said Axel Rudolph, senior technical analyst at trading platform IG.

A few European brokerages said earlier in the day they had been unable to offer trading in some products on certain futures contracts.

Biggest exchange operator

CME is the biggest exchange operator by market value and says it offers the widest range of benchmark products, spanning rates, equities, metals, energy, cryptocurrencies and agriculture.

Average daily derivatives volume was 26.3 million contracts in October, CME said earlier this month.

The CME outage on Friday comes more than a decade after the operator had to shut electronic trading for some agricultural contracts in April 2014 due to technical problems, which at the time sent traders back onto the floor.

More recently, in 2024, outages at LSEG and Switzerland’s exchange operator briefly interrupted markets.

CME’s own shares were up 0.4 percent in premarket trading.

In its deal with Alberta, Canada will scrap emissions cap on the oil and gas sector, among other moves.

Canada’s Prime Minister Mark Carney has signed an agreement with Alberta’s premier that will roll back certain climate rules to spur investment in energy production, while encouraging construction of a new oil pipeline to the West Coast.

Under the agreement, which was signed on Thursday, the federal government will scrap a planned emissions cap on the oil and gas sector and drop rules on clean electricity in exchange for a commitment by Canada’s top oil-producing province to strengthen industrial carbon pricing and support a carbon capture-and-storage project.

Carney is counting on the energy sector to help the Canadian economy weather uncertainty from United States President Donald Trump’s tariffs, and is seeking to diversify from the US market, which currently takes 90 percent of Canada’s oil exports.

He has relaxed some environmental restrictions implemented by his predecessor, Justin Trudeau, while reaffirming his commitment to net-zero carbon emissions by 2050.

Alberta is also exploring the feasibility of a new crude oil pipeline to British Columbia’s northwest coast in order to increase exports to Asia, but no private-sector company has committed to building a new pipeline.

Pipeline companies and the Alberta government have repeatedly said significant federal legislative changes – including removing a federal cap on oil and gas sector emissions and ending a ban on oil tankers off British Columbia’s northern coast – would be required before a private entity would consider proposing a new pipeline.

Thursday’s agreement includes a commitment by the federal government to adjust the Oil Tanker Moratorium Act in order to facilitate oil exports to Asia.

British Columbia Premier David Eby, who opposes a new pipeline through his province, said on Wednesday the legislation should stay in place.

Other pipeline opponents are also speaking out. A coalition of Indigenous groups in British Columbia said this week it will not allow oil tankers on the northwest coast and that the pipeline project will “never happen”.

The Trans Mountain pipeline from Alberta to the British Columbia coast, which is owned by the Canadian government and is currently the only option to ship Canadian oil directly to Asian markets, tripled its capacity last year with a 34 billion Canadian dollar ($24.2bn) expansion.

The federal government and Alberta also said they would conclude an agreement on industrial carbon pricing by April 1 next year.

In addition, the two agreed to cooperate on building the Pathways Plus project, expected to be the world’s biggest carbon capture project and designed to capture emissions from Canada’s oil sands.

The federal government will also assist Alberta in building and operating nuclear power plants, strengthening its electricity grid to power AI data centres, and building transmission lines to neighbouring provinces.

South Africa secured a declaration from the rest of the G20, despite United States objections.

Washington boycotted the meeting over President Donald Trump’s accusations that South Africa persecutes its white minority, a claim widely rejected.

The document calls for more funding for renewable energy, fairer critical mineral supply chains and debt relief for poorer nations.

The first G20 summit on African soil broke with tradition by releasing the document at the start.

And there was no ceremonial handover between the outgoing South African and incoming American chairs.

Also, can Britain’s Labour government satisfy both businesses and households?

Plus, the weight-loss drug booming industry.

Three websites used to create abuse imagery had received 100,000 monthly visits from Australians, watchdog says.

Internet users in Australia have been blocked from accessing several websites that used artificial intelligence to create child sexual exploitation material, the country’s internet regulator has announced.

The three “nudify” sites withdrew from Australia following an official warning, eSafety Commissioner Julie Inman Grant said on Thursday.

Grant’s office said the sites had been receiving approximately 100,000 visits a month from Australians and featured in high-profile cases of AI-generated child sex abuse imagery involving Australian school students.

Grant said such “nudify” services, which allow users to make images of real people appear naked using AI, have had a “devastating” effect in Australian schools.

“We took enforcement action in September because this provider failed to put in safeguards to prevent its services being used to create child sexual exploitation material and were even marketing features like undressing ‘any girl,’ and with options for ‘schoolgirl’ image generation and features such as ‘sex mode,’” Grand said in a statement.

The development comes after Grant’s office issued a formal warning to the United Kingdom-based company behind the sites in September, threatening civil penalties of up to 49.5 million Australian dollars ($32.2m) if it did not introduce safeguards to prevent image-based abuse.

Grant said Hugging Face, a hosting platform for AI models, had separately also taken steps to comply with Australian law, including changing its terms of service to require account holders to take steps to minimise the risks of misuse involving their platforms.

Australia has been at the forefront of global efforts to prevent the online harm of children, banning social media for under-16s and cracking down on apps used for stalking and creating deepfake images.

The use of AI to create non-consensual sexually explicit images has been a growing concern amid the rapid proliferation of platforms capable of creating photo-realistic material at the click of a mouse.

In a survey carried out by the US-based advocacy group Thorn last year, 10 percent of respondents aged 13-20 reported knowing someone who had deepfake nude imagery created of them, while 6 percent said they had been a direct victim of such abuse.

Russian “shadow vessels” are using false flags to skirt sanctions imposed on Moscow over its war in Ukraine, according to a new report.

A total of 113 Russian vessels have flown a false flag in the first nine months of this year, transporting some 11 million tonnes of oil valued at 4.7 billion euros ($5.4bn), according to the report published on Thursday by the Centre for Research on Energy and Clean Air (CREA), a Helsinki-based think tank.

“The number of Russian ʻshadowʼ tankers sailing under false flags is now increasing at an alarming rate,” said report co-author Luke Wickenden.

“False-flagged vessels carried 1.4 billion euros ($1.6bn) worth of Russian crude oil and oil products through the Danish Straits in September alone.”

Russia’s clandestine shadow fleet transports sanctioned commodities, especially oil, under non-Russian flags to evade scrutiny.

Every vessel sailing on the open seas is required to fly a flag that provides it with legal jurisdiction for its operations in international waters.

The United Nations Convention on the Law of the Sea allows countries to grant their nationality to ships and fly their flag.

Some countries provide open registries that allow foreign-owned or controlled vessels to use their flag, a practice favoured by some shippers due to lower regulatory burdens and registration costs.

In its report, CREA said that 96 sanctioned vessels had flown a false flag at least once this year as of the end of September.

A total of 85 vessels registered at least two flag changes six months after being sanctioned by the European Union, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) or the United Kingdom, according to the think tank.

Six flag registries that had not flagged a Russian ship before Moscow’s full-scale invasion of Ukraine in February 2022 had at least 10 such vessels each in their fleet in September 2025, according to CREA, for a total of 162 shadow vessels.

“In addition to the risks of false flagging, we also see that ʻshadowʼ vessel operators are taking advantage of capacity limitations of economically weak nations to exploit their flags and existing regulations to gain passage rights to deliver blood oil,” said co-author Vaibhav Raghunandan, calling on the EU and the UK to reform their flagging regulations and practices.

CREA said it based its report on vessel ownership and flag registry records obtained from maritime safety platform Equasis.

It said it cross-referenced the data with the IMO Global Integrated Shipping Information System (GSIS), a global shipping industry database.

‘More evasive techniques’

Rachel Ziemba, adjunct senior fellow at the Washington-based Center for a New American Security, said the CREA’s findings aligned with previous reports on Russia’s shadow fleet.

Ziemba said Moscow had resorted to “more evasive techniques” on the back of increased pressure from the EU, as well as moves by China to block so-called “zombie vessels”, which use the registration numbers of retired vessels.

While the US and the EU have continued to roll out new sanctions on Russian oil, “there is an open question about enforcement”, Ziemba said.

With sanctions enforcement becoming more difficult due to the growing illicit trade, countries would need to target vessels, intermediaries and buyers to significantly reduce Russia’s oil sales, she said.

“But that comes with costs,” Ziemba said, suggesting that China, a major buyer of Russian oil, could retaliate against countries that tightened sanctions.

“Plus, actual enforcement might mean more quasi-military stoppages of vessels to check papers, something that these countries might be wary of doing,” she added.

Bangkok, Thailand – Stewed, seasoned with sugar and cloves, deep-fried or dished up in a zingy chilli mince – the diets of most Thais are incomplete without pork.

But a $3bn market – supplied nearly entirely by domestic pig farmers – may be about to face competition like never before from the giant hog farms of the world’s third-largest producer, the United States.

While the fine print of the Thai government’s preliminary trade deal with the US is yet to be revealed, some details have emerged.

Washington has a 10,000-item-long wish list of goods it wants to enter Thailand duty-free to reduce its $45.5bn trade deficit with the Southeast Asian country, an imbalance President Donald Trump says unfairly disadvantages US producers.

The list includes pork, corn, soya beans and some fruits.

Shortly after Trump met Thailand’s caretaker prime minister, Anutin Charnvirakul, on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia last month, the White House revealed some of the many strings attached to its trade deal, which set the tariff rate for the kingdom’s exports to the US at 19 percent.

They include Thailand agreeing to “address and prevent barriers to US food and agricultural products in the Thai market”, according to the White House, and a commitment to “expediting access” for US meat and poultry products.

That has panicked Thailand’s pig farmers, who say the industry may not survive a flood of cheaper, subsidised US pork, which is fattened up on ractopamine, a livestock additive banned in many countries, including the kingdom.

If US pork is allowed into Thailand without duties, nothing less than the kingdom’s food security is at stake, according to Worawut Siripun, deputy secretary-general of the Swine Raisers Association of Thailand.

“Producers will not be able to survive and will stop raising pigs. But the risks are not only for farms facing falling pig prices,” Worawut, who has about 10,000 pigs, told Al Jazeera.

“Those who grow feed crops are also affected, as well as animal feed traders, animal feed producers, and veterinary drug sellers. Everyone in the production cycle is impacted.”

Trump had made trade talks with Thailand contingent on Bangkok signing an extended ceasefire agreement with Cambodia.

But in the weeks since meeting Anutin, Thailand has suspended truce talks over alleged Cambodian breaches of the terms of the agreement.

While there are conflicting signals over whether tensions with Cambodia have put Thailand’s trade negotiations with its biggest export destination on the back burner, farmers and livestock companies are bracing for intensified competition.

Thailand’s pork industry has weathered challenges ranging from outbreaks of swine flu to illegal imports from China and Vietnam.

But it faces high costs, largely as a result of government price controls on corn and soya used to feed pigs and other livestock – a measure intended to protect the country’s crop farmers, a key voting bloc.

And like most of Thailand’s agricultural producers, the country’s pig farmers deal with slim margins.

“Both imported and locally produced feed materials in Thailand are more expensive compared to the US, where feed is cheaper,” Worawut said.

Corn and other feed farmers are also bracing for tough times.

Thailand announced earlier this month that it would lift its annual corn import limit, from approximately 50,000 tonnes to 1 million tonnes, and scrap a 20 percent tariff to appease Washington.

Prime Minister Anutin is likely to dissolve parliament in the coming weeks and set a date for new elections.

He is angling to return to office in defiance of critics who say he has already given away too much to Washington before a comprehensive trade deal has been signed.

Trump officials have already announced a deal to gain preferential access to Thailand’s rare earths, the sale of billions of dollars of US-made aircraft and a promise by Bangkok not to tax US digital services companies.

Anutin’s bargaining position has been weakened by tough economic conditions.

On Monday, the Office of the National Economic and Social Development Council trimmed its economic growth forecast for 2026 to 1.2 percent, down from an expected 2 percent expansion this year – by far the weakest performance among Southeast Asia’s leading economies.

With a third round of trade talks with the US under a cloud following the suspension of the Thailand-Cambodia peace deal, the main political opposition party has called on the government to pause the negotiations and consult with local stakeholders.

“This is a crucial moment,” said Weerayut Karnchuchat, deputy leader of the opposition People’s Party, Thailand’s largest in parliament.

“The minister of commerce has said negotiations will conclude by the end of 2025. That leaves around two months. The government should hold eight weeks of stakeholder hearings … especially groups directly affected, such as corn farmers.”

Thailand should take stock and assess if regional peers with full US trade deals – including Cambodia, Vietnam and Malaysia – are happy with the outcomes and “whether Thailand is offering too much”, he added.

For many midsized businesses, the return of Trump and his trade war has made for a difficult year, with demand depressed across countless supply chains exposed to the US.

Orders are retreating inside Thailand for everything from lightbulbs to electrical wires needed to run factories that export to the US.

Tipok Lertwattanaweerakul, a durian farmer and middleman, said he has seen his profit margins slashed.

Saudi Arabian buyers who sold durian to customers in the US had been Lertwattanaweerakul’s main source of business, but with the Arab country hit with a 10 percent tariff, “they are no longer purchasing from me at all,” he told Al Jazeera.

The new plan comes amid stalled trade talks between Ottawa and Washington.

Canada will offer more support to help the steel and lumber industries deal with United States tariffs and create a domestic market, as well as ramp up protections for steel and lumber workers.

Prime Minister Mark Carney outlined the new plan on Wednesday in a news conference.

Ottawa will reduce the quota for steel imports from countries that do not have a free trade agreement with Canada to 20 percent from 50 percent of 2024 levels, Carney said.

Countries with a free trade agreement (FTA) with Canada will see their quotas cut to 75 percent from 100 percent of the 2024 level. This does not include the US and Mexico, which are bound by the United States-Canada-Mexico free trade deal.

Canada will also impose a global 25 percent tariff on targeted imported steel-derivative products, and incorporate border measures to combat steel dumping.

In July, Ottawa set a quota of steel imports at 50 percent of the 2024 level from non-FTA countries in a bid to stop the dumping of foreign steel into Canada.

The measures are being tightened to open up the domestic market for Canadian-produced steel, said a government official.

The steel industry contributes more than 4 billion Canadian dollars ($2.8bn) to Canada’s gross domestic product (GDP) and employs more than 23,000 people directly. It is, however, one of the two sectors hit hardest by US President Donald Trump’s 50 percent tariffs on steel imports from Canada.

Trump has imposed 50 percent tariffs on steel, and softwood lumber, long subject to US tariffs, is currently taxed at 45 percent after the Trump administration’s hike last month.

Carney said the decades-long process of an ever-closer economic relationship between Canada and the US is now over.

“As a consequence, many of our strengths have become vulnerabilities. Last year, more than 75 percent of our exports went to the United States. Ninety percent of our lumber exports, 90 percent of our aluminium exports, and 90 percent of our steel exports, all bound for a single market,” Carney said.

Ottawa will work with railway companies to cut freight rates for the inter-provincial transfer of Canadian steel and lumber by 50 percent, beginning in early 2026.

“We will make it more affordable to transport Canadian steel and lumber across the country by cutting freight rates,” Carney said.

The government said it would also support the use of locally made steel and lumber in homebuilding, and financial aid for companies dealing with tariff-related impacts, such as on their workforce, liquidity crunch, and for restructuring operations.

Trump tensions

Trump cut off trade talks with Canada last month after the Ontario provincial government ran television advertisements in US markets that criticised Trump’s tariffs by citing a speech by former US President Ronald Reagan.

Carney said he would be in Washington for the final draw on December 5 for the FIFA World Cup 2026 tournament. He said he would speak to Trump then and said he spoke briefly to the president on Tuesday.

“We are ready to re-engage on those talks when the United States wants to re-engage,” Carney said.

Carney’s announcement comes even as there is increased pressure on US businesses reeling from Trump’s tariffs.

Deere & Co, the maker of John Deere tractors, said on Wednesday that it expects a bigger hit from tariffs in 2026. The company expects a pre-tax tariff hit of around $1.2bn in fiscal 2026, compared with nearly $600m in 2025.

International Rights Advocates also sued Tesla for a similar issue, but that case was dismissed.

A United States-based advocacy group has filed a lawsuit in Washington, DC, accusing Apple of using minerals linked to conflict and human rights abuses in the Democratic Republic of the Congo (DRC) and Rwanda despite the iPhone maker’s denials.

International Rights Advocates (IRAdvocates) has previously sued Tesla, Apple and other tech firms over cobalt sourcing, but US courts dismissed that case last year.

French prosecutors in December also dropped a case filed by the DRC against Apple subsidiaries over conflict minerals, citing lack of evidence. A related criminal complaint in Belgium is still under investigation.

Apple denied any wrongdoing in response to the DRC’s legal cases, saying it had instructed its suppliers to halt the sourcing of material from the DRC and neighbouring Rwanda.

It did not immediately respond to requests for comment on the latest complaint.

IRAdvocates, a Washington, DC-based nonprofit that tries to use litigation to curtail rights abuses, said in the complaint filed on Tuesday in the Superior Court of the District of Columbia that Apple’s supply chain still includes cobalt, tin, tantalum and tungsten linked to child and forced labour as well as armed groups in the DRC and Rwanda.

The lawsuit seeks a determination by the court that Apple’s conduct violates consumer protection law, an injunction to halt alleged deceptive marketing and reimbursement of legal costs but does not seek monetary damages or class certification.

The lawsuit alleges that three Chinese smelters – Ningxia Orient, JiuJiang JinXin and Jiujiang Tanbre – processed coltan that United Nations and Global Witness investigators alleged was smuggled through Rwanda after armed groups seized mines in the eastern DRC and linked the material to Apple’s supply chain.

A University of Nottingham study published in 2025 found forced and child labour at DRC sites linked to Apple suppliers, the lawsuit said.

Ningxia Orient, JiuJiang JinXin and Jiujiang Tanbre did not immediately respond to requests for comment.

The DRC – which supplies about 70 percent of the world’s cobalt and significant volumes of tin, tantalum and tungsten used in phones, batteries and computers – did not immediately respond to a request for comment. Rwanda also did not immediately respond to a request for comment.

Apple has repeatedly denied sourcing minerals from conflict zones or using forced labour, citing audits and its supplier code of conduct. It said in December that there was “no reasonable basis” to conclude any smelters or refiners in its supply chain financed armed groups in the DRC or neighbouring countries.

Congolese authorities said armed groups in the eastern part of the country use mineral profits to fund a conflict that has killed thousands of people and displaced hundreds of thousands. The authorities have tightened controls on minerals to choke off funding, squeezing global supplies.

Apple says 76 percent of the cobalt in its devices was recycled in 2024, but the IRAdvocates lawsuit alleged its accounting method allows mixing with ore from conflict zones.

On Wall Street, Apple’s stock was up 0.8 percent.

It has been a whiplash-inducing month for the American rancher, one of United States President Donald Trump’s most steadfast voting blocs.

Starting with an October 19 quip from Trump that the US would increase beef imports from Argentina to the ensuing rancher backlash against the announcement of an investigation into the hyperconsolidated US meatpacking industry and the dropping of tariffs on Brazilian beef, ranchers have found themselves caught between the president’s desires to appease both them and the American consumer in the face of high beef prices.

US ranchers have enjoyed rising cattle prices, largely the result of the lowest herd numbers for beef cattle since the 1950s. Other factors constricting supply include the closure of the Mexican border to live cattle due to concerns over screwworm and steep tariffs on foreign beef.

Cattle prices paid to ranchers are separate from consumer beef prices, which, as of September, were $6.32 for a pound (453 grams) of ground beef, an 11 percent rise from September 2024 when they were $5.67 a pound. The Bureau of Labor Statistics did not release economic data, including the consumer price index for last month, because of the government shutdown.

Trump had no patience for the typically loyal ranchers objecting to his plan to import more Argentinian beef, which they saw as a threat to their recent economic gains.

“If it weren’t for me, they would be doing just as they’ve done for the past 20 years – Terrible! It would be nice if they would understand that,” Trump wrote in an October post on his Truth Social platform.

While Corbitt Wall, a commercial cattle manager and market analyst, is clear that he “totally supports Trump and everything he does”, he also saw hubris and a misunderstanding of the cattle industry by the president.

“There was not a person in the cattle business on any level that was not insulted by that post,” he told Al Jazeera.

Wall religiously follows prices across the cattle trade from ranch to slaughterhouse and has watched the futures market for cattle slide down by more than 15 percent since Trump’s October 21 announcement.

Futures prices dictate what ranchers can expect to sell cattle for down the line and sway current sale prices as well. For ranchers’ sake, Wall said he hopes Trump leaves the cattle market alone.

“He doesn’t live in this world, in this cattle world, and doesn’t realise the impact that a statement can make in our business,” Wall said.

Years of rough seasons

Oregon rancher David Packham said that while cattle prices have jumped in ranchers’ favour, many are still struggling in the face of years of rough seasons.

Years of drought across the country raised feed costs for all and pushed some ranchers to sell off cattle. Sticker prices on farm equipment from tractors to pick-up trucks have ballooned as well, especially on the back of supply chain challenges during the COVID-19 pandemic, and are expected to rise further on account of Trump’s tariffs.

Packham said he has regularly sold cattle at a loss and doesn’t want consumers to think ranchers are living high off the hog.

“I’m looking at a 40-year-old tractor that I use on a daily basis just to keep putting off replacing it, making repairs, although it’s difficult to find parts for now, just to keep it limping along because I couldn’t afford $100,000 for a new tractor,” Packham said. “When I say we’re not really making a whole lot of money, it’s because we have all this loss carryover.”

Packham was a registered Republican until Trump’s first term. The president’s Argentina comments and the subsequent chaos for the cattle industry have propped open a door for ranchers critical of Trump, but they represent a minority within the community, he said.

“I’m noticing more and more of them [ranchers] that had been cautiously neutral, that are now kind of like me and just saying, ‘You know what? No. This is bulls***. He’s a train wreck,’” Packham said.

‘Perennial issue’

One action ranchers can support, however, is Trump’s November 7 announcement of a Department of Justice investigation into the big four US meatpackers – Tyson, JBS, Cargill and National Beef – “for potential collusion, price fixing and price manipulation”.

Historically, ranchers looking to sell cattle have held little negotiating power as the four companies control more than 80 percent of the market.

However, a prior Department of Justice investigation into meatpacker price-fixing was started under the first Trump administration in 2020 due to a gulf created by falling cattle prices and rising consumer beef prices. The investigation continued under President Joe Biden’s administration but was never publicly concluded. According to Bloomberg News, the investigation was quietly closed with no findings just weeks before Trump announced the November antitrust probe.

James MacDonald, a research professor in agricultural and resource economics at the University of Maryland, views the administration’s antitrust investigation announcement as “entirely for political consumption”.

“It is a perennial issue that p***es off ranchers, and you can gain some political ground by attacking the packers,” MacDonald said.

Packham would prefer the new investigation to come at a different time and said that given the squeeze from the tight cattle market, packers are operating under slimmer margins and not from a position of absolute power.

On Friday, Tyson announced the closure of a Nebraska beef-processing plant that employed more than 3,000 people. MacDonald called the decision a “shock” indicative of the depths of the US beef shortage. The current low cattle inventory in the US came from years of drought, which wiped out grazing lands and slowed herd rebuilding. Replenishing the cattle supply chain is a years-long process.

“That’s sort of a fact and a fundamental, and it’s not going to change for a while,” MacDonald said.

MacDonald also doesn’t believe the increased Argentina imports will ease this shortage or lower prices as the country largely sends lower-grade, lean beef to the US, accounting for only 2 percent of imports. He expected that while the reintroduction of largely lean Brazilian beef will impact the import market, it holds less weight on overall beef supply.

McDonald also cited heifer retention numbers, which indicate how many female cattle that ranchers hold back to produce future herds years down the line, which are still low.

Tyson likely factored in these numbers when making the decision to shutter its Nebraska plant, and it doesn’t seem like the industry is expecting herd numbers to rebound either, McDonald told Al Jazeera.

“It’s Tyson saying we don’t think cattle supplies are going to recover anytime soon,” MacDonald said.

While the actual mechanisms of Trump’s recent policies might not budge consumers’ bottom lines or change the cattle market for the time being, Wall is more concerned about the ripple effects from the news cycle, saying ranchers “live and die” by the cattle markets. While his faith is shaken, Wall regardless believes that ranchers, conservative as ever, will show up for Trump when election time comes around.

“You look at what the other side has to offer, and there’s no way people are going to go for that,” Wall said. “So in the long run, they’ll stick with him.”

Music fans at Stockholm airport couldn’t believe their eyes when the popstar they were travelling to see boarded the same flight to Helsinki, and she wasn’t even flying first class

Music enthusiasts in Stockholm, Sweden, were left stunned whilst awaiting their flight to Finland after discovering a very special passenger was also waiting to board the same flight.

It’s hardly uncommon for music lovers to journey far and wide to catch their beloved bands and artists performing live. Whether it’s a trip to a neighbouring city, across the country, or to an entirely different country, no distance appears too far for devoted fans, who frequently use concerts as an opportunity to explore new destinations. What they certainly wouldn’t anticipate, though, is bumping into the very artist they’re travelling to see aboard their aircraft.

However this extraordinary scenario unfolded for a group of admirers who were preparing to board their flight from Stockholm, Sweden, travelling across the Baltic Sea to Helsinki in Finland to see Zara Larsson at her upcoming concert.

Sharing on TikTok, one fan posted the clip which captured the incredible moment she was lingering by the departure gate at Arlanda airport in Sweden, only to glance up and spot the pop sensation approaching the very same gate, instantly drawing the focus of numerous fans present, all travelling to attend her performance the next evening.

“Pov you’re flying from Sweden to Finland to see Zara Larsson and Zara Larsson shows up,” the fan wrote in the video’s caption.

The brief footage showed Zara chatting casually with several supporters at the gate, including one fan who spun around in amazement upon hearing the superstar’s distinctive voice behind her.

The TikTok creator then posted some snaps with Zara, who looked stylish in a black fur coat and vibrant pink nails. She chose to travel makeup-free as she was en route to her Helsinki gig scheduled for 26 November.

The video quickly attracted comments from other fans and has been viewed over 478,000 times within the first day of being uploaded on the platform.

“Crazy how she just flies in economy,” one fan commented, while another exclaimed: “Imagine sitting next to Zara on a plane omggg.”

A third fan chimed in: “Personally i wouldve started dancing lush life to get my lush life girl moment.

“How does it feel… to live our dream?” another asked.

Zara Larsson is currently wrapping up the European leg of her Midnight Sun tour, which kicked off in Munich on 28 October, before hitting London on 5 November, followed by Dublin and Manchester. She will then take the tour to the USA and Canada in February 2026.

California voters are sharply divided along partisan lines over the Trump administration’s immigration raids this year in Los Angeles and across the nation, according to a new poll.

Just over half of the state’s registered voters oppose federal efforts to reduce undocumented immigration, and 61% are against deporting everyone in the nation who doesn’t have legal status, according to a recent poll by UC Berkeley’s Possibility Lab released to The Times on Wednesday.

But there is an acute difference in opinions based on political leanings.

Nearly 80% of Democrats oppose reducing the number of people entering the United States illegally, and 90% are against deporting everyone in the country who is undocumented, according to the poll. Among Republicans, 5% are against reducing the entries and 10% don’t believe all undocumented immigrants should be forced to leave.

“The big thing that we find, not surprisingly, is that Democrats and Republicans look really different,” said political scientist Amy Lerman, director of UC Berkeley’s Possibility Lab, who studies race, public opinion and political behavior. “On these perspectives, they fall pretty clearly along party lines. While there’s some variation within the parties by things like age and race, really, the big divide is between Democrats and Republicans.”

While there were some differences based on gender, age, income, geography and race, the results largely mirrored the partisan divide in the state, Lerman said.

One remarkable finding was that nearly a quarter of survey respondents personally knew or were acquainted with someone in their family or friend groups directly affected by the deportation efforts, Lerman said.

“That’s a really substantial proportion,” she said. “Similarly, the extent to which we see people reporting that people in their communities are concerned enough about deportation efforts that they’re not sending their kids to school, not shopping in local stores, not going to work,” not seeking medical care or attending church services.

The poll surveyed a sample of the state’s registered voters and did not include the sentiments of the most affected communities — unregistered voters or those who are ineligible to cast ballots because they are not citizens.

A little more than 23 million of California’s 39.5 million residents were registered to vote as of late October, according to the secretary of state’s office.

“So if we think about the California population generally, this is a really significant underestimate of the effects, even though we’re seeing really substantial effects on communities,” she said.

Earlier this year, U.S. Immigration and Customs Enforcement launched a series of raids in Los Angeles and surrounding communities that spiked in June, creating both fear and outrage in Latino communities. Despite opposition from Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and other elected Democrats, the Trump administration also deployed the National Guard to the streets of the nation’s second-largest city to, federal officials said, protect federal immigration officials.

The months since have been chaotic, with masked, armed agents randomly pulling people — most of whom are Latino — off the streets and out of their workplaces and sending many to detention facilities, where some have died. Some deportees were flown to an El Salvador prison. Multiple lawsuits have been filed by state officials and civil rights groups.

In one notable local case, a federal district judge issued a ruling temporarily blocking federal agents from using racial profiling to carry out indiscriminate immigration arrests in the Los Angeles area. The Supreme Court granted an emergency appeal and lifted that order, while the case moves forward.

More than 7,100 undocumented immigrants have been arrested in the Los Angeles area by federal authorities since June 6, according to the Department of Homeland Security.

On Monday, Rep. Robert Garcia (D-Long Beach), Bass and other elected officials hosted a congressional hearing on the impact of immigration raids that have taken place across the country. Garcia, the top Democrat on the House’s oversight committee, also announced the creation of a tracker to document misconduct and abuse during ICE raids.

While Republican voters largely aligned with Trump’s actions on deportations, 16% said that they believed that the deportations will worsen the state’s economy.

Lerman said the university planned to study whether these numbers changed as the impacts on the economy are felt more greatly.

“If it continues to affect people, particularly, as we see really high rates of effects on the workforce, so construction, agriculture, all of the places where we’re as an economy really reliant [on immigrant labor], I can imagine some of these starting to shift even among Republicans,” she said.

Among Latinos, whose support of Trump grew in the 2024 election, there are multiple indications of growing dissatisfaction with the president, according to separate national polls.

Nearly eight in 10 Latinos said Trump’s policies have harmed their community, compared to 69% in 2019 during his first term, according to a national poll of adults in the United States released by the nonpartisan Pew Research Center on Monday. About 71% said the administration’s deportation efforts had gone too far, an increase from 56% in March. And it was the first time in the two decades that Pew has conducted its survey of Latino voters that the number of Latinos who said their standing in the United States had worsened increased, with more than two-thirds expressing the sentiment.

Another poll released earlier this month by Somos Votantes, a liberal group that urges Latino voters to support Democratic candidates, found that one-third of Latino voters who previously supported Trump rue their decision, according to a national poll.

Small business owner Brian Gavidia is among the Latino voters who supported Trump in November because of financial struggles.

“I was tired of struggling, I was tired of seeing my friends closing businesses,” the 30-year-old said. “When [President] Biden ran again I’m like, ‘I’m not going to vote for the same four years we just had’ … I was sad and I was heartbroken that our economy was failing and that’s the reason why I went that way.”

The East L.A. native, the son of immigrants from Colombia and El Salvador, said he wasn’t concerned about Trump’s immigration policies because the president promised to deport the “worst of the worst.”

He grew disgusted watching the raids that unfolded in Los Angeles earlier this year.

“They’re taking fruit vendors, day laborers, that’s the worst of the worst to you?” he remembered thinking.

Over a lunch of asada tortas and horchata in East L.A., Gavidia recounted being detained by Border Patrol agents in June while working at a Montebello tow yard. Agents shoved him against a metal gate, demanding to know what hospital he was born at after he said he was an American citizen, according to video of the incident.

After reviewing his ID, the agents eventually let Gavidia go. The Department of Homeland Security later claimed that Gavidia was detained for investigation for interference and released after being confirmed to be a U.S. citizen with no outstanding warrants. He is now a plaintiff in a lawsuit filed by the ACLU and immigrant advocacy groups alleging racial profiling during immigration raids.

“At that moment, I was the criminal, at that moment I was the worst of the worst, which is crazy because I went to go see who they were getting — the worst of the worst like they said they were going to get,” Gavidia said. “But turns out when I got there, I was the worst of the worst.”

A sluggish job market lowers consumer confidence but may also lead to another rate cut from the Federal Reserve by the end of the year.

United States consumer confidence sagged in November as households worried about jobs and their financial situation, likely in part because of the recently ended government shutdown.

The Conference Board said on Tuesday its consumer confidence index dropped to 88.7 this month, from an upwardly revised 95.5 in October, hitting its lowest level since April.

Economists polled by the Reuters news agency had forecast the index edging down to 93.4 from the previously reported 94.6 in October.

“Consumers’ write-in responses pertaining to factors affecting the economy continued to be led by references to prices and inflation, tariffs and trade, and politics with increased mentions of the federal government shutdown,” said Dana Peterson, chief economist at the Conference Board.

“Mentions of the labour market eased somewhat but still stood out among all other frequent themes not already cited. The overall tone from November write-ins was slightly more negative than in October.”

Consumer confidence remained low among all income brackets. While confidence among those who make less than $15,000 annually ticked up slightly, it still remained the group with the lowest consumer confidence.

The consumer confidence report was released amid a slowing labour market. The September jobs report, released late last week, showed 119,000 jobs were added to the US economy as the unemployment rate ticked up 0.1 of a percentage point to 4.4 percent.

However, there is limited economic data available to fully gauge the sentiment of the US economy because the government shutdown, the longest in US history, hindered federal agencies’ ability to gather the data needed to assess current conditions.

“More worries about what lies ahead … hence, putting purchases for major items on hold,” Jennifer Lee, senior economist at BMO, wrote to Reuters.

The economic data followed dovish comments from policymakers in the past few days that helped cement rate cut expectations.

On Monday, Federal Reserve Governor Christopher Waller said the job market was weak enough to warrant another quarter-point rate cut in December although action beyond that depended on a flood of data that was delayed by the federal government shutdown.

Madrid, Spain – Real Madrid fans were divided over plans announced this week by club President Florentino Perez to allow private equity investors to buy up to a 10% stake in the club.

Some fans of “los merengues” said it would mean selling off part of the club, even though Real Madrid remains the wealthiest football club in the world.

They also noted that in recent years, Real Madrid had already changed membership rules, contravening promises to keep memberships within families and diluting its character.

Others supported the investor plan, saying it made good business sense and would not alter the trajectory of a hugely successful club that has won the Spanish domestic title 36 times and collected a record 15 UEFA Champions League trophies.

Perez insisted that allowing private equity investors – who often deploy large amounts of capital into companies not listed on public stock exchanges – to take a stake in the club was an “indispensable project” for the future of football.

Speaking to club members on Sunday, Perez said he will propose a statutory reform during an extraordinary assembly to allow for the possibility of outside investors to take a minority stake in the club, according to reporting by The Associated Press news agency.

“We will continue to be a members’ club, but we must create a subsidiary in which the 100,000 members of Real Madrid will always retain absolute control,” he said.

“On that basis, this subsidiary could simply incorporate a minority stake, for example, 5% – never more than 10% – from one or more investors committed to the very long term and willing to contribute their own resources.”

Perez said that would be “the clearest and most compelling way to value our club”.

The 78-year-old added that it would allow the club to pay dividends to club members, which it is presently forbidden from doing.

Perez insisted investors would be obliged to “respect our values”, contribute to the growth of the club and “help us protect our assets from external attacks”.

He said Real Madrid could have the right to buy its assets back from investors.

Perez reiterated several times that members would never lose control of the club.

He said his proposal would make sure that the current 98,272 members are recognised as the real owners of the club, with the number of members fixed for the future.

“With this protection in place, no one will be able to diminish our status as owners or alter the balance that guarantees the independence and stability of Real Madrid,” Perez said. “It will be us, the members of today, who will have the responsibility of safeguarding our culture of values and ensuring that our club continues to lead world football for many generations to come.”

The Real Madrid president further explained the reform would “shield the club from external and internal attacks on our assets, and to highlight their value so that we are all aware of the treasure that we, as members, have in our hands”.

Spanish club ownership versus English

Real Madrid, like Barcelona and a small number of other Spanish football clubs, is classed as a nonprofit organisation as it is owned by its club members, or socios. Real Madrid, founded in 1902, has only ever had this ownership model.

This ownership structure prevents large private investors from forging a majority controlling stake in the clubs; it also means they can claim tax concessions.

This is despite the fact that Real Madrid was named the world’s wealthiest football club for the fourth straight year in 2025, with an estimated market valuation of $6.75bn, according to the Forbes List. It was also the first club to earn $1bn in revenue.

The nonprofit status allows Spanish clubs to preserve some traditions of their clubs and for members to take an active role in the organisations.

Graham Hunter, a British football journalist who specialises in Spanish football, pointed to the example of Joan Laporta, the current president of the other Spanish mega club, Barcelona.

“Laporta went from being a member and a lawyer to being [club] president in seven years,” he said.

In stark contrast, football clubs in England or the United States – Manchester United or Inter Miami being just two examples – can be owned by individuals, corporations and in some instances, acquired on public stock exchanges, resulting in more commercialised ownership structures.

It means their club’s performances are often centred on more short-run processes like profit maximisation, whereas in Spain, the club is in the hands of fans – not large private investors – allowing scope for longer-term business strategies to be enacted.

If Perez’s plan goes ahead, this could open the door for this famous Spanish club to become more like its foreign rivals.

The high-profile, multi-billionaire boss of Louis Vuitton, Bernard Arnault, was named in Spanish media on Monday as a potential investor in the club, should the new minority ownership rules be adopted.

Fans reaction

Some Real Madrid fans did not share Perez’s enthusiasm to open up the club to large private investors.

David Garcia, a former season ticket holder at the Santiago Bernabeu stadium, said Perez had previously told fans he would preserve the club for members.

“On Sunday, Florentino [Perez] misled the members again. He had told us that access to the club was restricted to the children or grandchildren of members to prevent a Russian or Chinese person from joining,” he told Al Jazeera.

Garcia added that in recent years, the rules of admission to membership had been changed several times, and Chinese and other foreigners had appeared on membership lists.

Alejandro Dominguez, a former vice president of the Real Madrid Veterans Pena, questioned why outside investors were needed to boost the coffers of such a profitable club.

“I don’t understand why we need more money when we are already the richest club in the world?” he told Al Jazeera.

However, Fernando Valdez, a lifelong Real Madrid fan who is part of La Gran Familia supporters club, said he believed the reform would not harm the character of the club.

“If we were selling off huge chunks of the club to raise money to compete with Paris Saint-Germain, then that would be worrying, as it would change the club forever. But it is not like that,” he said.

“We need to know more details about this, but on the face of it, it does not seem like anything to worry about. Five percent or 10% is nothing.”

David Alvarez, who writes about Real Madrid for El Pais newspaper, said Perez’s ownership plan was not designed to compete with other high-spending clubs like Manchester City.

“This will allow the club to pay dividends to socios (club members). At present, the law stops them from doing that. They would have to sell a much bigger stake to be able to compete with the other big clubs in Europe, so they are not trying to do that.”

Trump signs order to integrate supercomputers and data assets in order to create ‘AI experimentation platform”.

United States President Donald Trump has unveiled a national initiative to mobilise artificial intelligence (AI) for accelerating scientific breakthroughs.

Trump signed an executive order on Monday to establish “The Genesis Mission”, the latest iteration of his administration’s aggressive strategy for spurring AI development through deregulation, infrastructure investment and public-private collaboration.

Trump’s order directs US Energy Secretary Chris Wright to unite scientists and technologies at the country’s 17 national laboratories into “one cooperative system for research”.

Under the initiative, US supercomputers and data resources will be integrated to create a “closed-loop AI experimentation platform”, according to the order.

The White House, which likened the initiative to the Apollo programme that put the first man on the moon, said priority areas of focus would include the “greatest scientific challenges of our time,” such as nuclear fusion, semiconductors, critical materials and space exploration.

Michael Kratsios, the White House’s top science adviser, said the initiative took a “revolutionary approach” to scientific research.

“The Genesis Mission connects world-class scientific data with the most advanced American AI to unlock breakthroughs in medicine, energy, materials science, and beyond,” Kratsios said.

Chipmaker Nvidia and AI startup Anthropic said on Monday that they were partnering with the Trump administration on the initiative.

“Uniting the National Labs, USG, industry, and academia, this effort will connect America’s leading supercomputers, AI systems, and next-generation quantum machines into the most complex scientific instrument ever built – accelerating breakthroughs in energy, discovery, and national security,” Nvidia said in a social media post, referring to the US government (USG).

Since re-entering the White House, Trump has made cutting red tape to fast-track the development of AI a key plank of his economic agenda.

Last week, Trump called on the US Congress to pass legislation to create a national standard for AI, while criticising state governments over their laws regulating the emerging technology.

“Overregulation by the States is threatening to undermine this Growth Engine,” Trump said on his platform, Truth Social.

“We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes.”

Benjamin H Bratton, an AI expert at the University of California, San Diego, welcomed the initiative as a move towards the “diffusion” of the technology.

“It is less important ‘whose’ AI people have access to than they have universal access at all,” Bratton told Al Jazeera.

“Most attempts to throttle AI in the USA and EU [European Union] come from cultural, economic and political incumbents protecting their turf.”

“Those locked out of positions of artificially scarce social agency have the most to gain,” Bratton added. “I support diffusion, not any particular administration.”

Islamabad, Pakistan – A new assessment by the International Monetary Fund (IMF) has concluded that corruption in Pakistan is behind an economic crisis driven by “state capture” – where public policy is manipulated to benefit a narrow circle of political and business elites.

The Governance and Corruption Diagnostic Assessment (GCDA), finalised in November 2025, presents a grim picture of a system marked by dysfunctional institutions that are unable to enforce the rule of law or safeguard public resources.

According to the 186-page report, corruption in Pakistan is “persistent and corrosive”, distorting markets, eroding public trust and undermining fiscal stability.

The report, requested by the Pakistani government, warns that without dismantling the structures of “elite privilege”, the country’s economic stagnation will persist.

While corruption vulnerabilities are present at all levels of government, according to the report, “the most economically damaging manifestations involve privileged entities that exert influence over key economic sectors, including those owned by or affiliated with the state.”

The report argues that Pakistan stands to gain substantial economic benefits if governance improves and accountability is strengthened. Such reforms, it notes, could significantly lift the country’s gross domestic product (GDP), which stood at $340bn in 2024.

“Based on cross-country analysis of the reform experience of emerging markets, IMF analysis projects that Pakistan could generate between a 5 to 6.5 percent increase in GDP by implementing a package of governance reforms over the course of five years,” the report said.

Stefan Dercon, a professor of economic policy at the University of Oxford who has advised the Pakistani government on economic reforms, said that he agreed that the absence of accountability in corruption cases was eating away at the country’s economic potential.

“Failure of implementation [of laws and principles of accountability] gives vested interests too often free rein and addressing this must be at the core of efforts for economic reform,” he told Al Jazeera.

Here is what we know about the IMF report, the areas of weakness it highlights, the policy recommendations it makes, and what the experts say.

What does the IMF report say?

Pakistan has turned to the IMF 25 times since 1958, making it one of the fund’s most frequent borrowers. Nearly every administration, whether military or civilian, has sought IMF assistance, reflecting chronic balance of payments crises.

The current programme was started under Prime Minister Shehbaz Sharif.

The GCDA’s release comes ahead of the IMF executive board’s expected approval of a $1.2bn disbursement next month, part of the ongoing 37-month-long, $7bn programme.

Pakistan narrowly avoided default in 2023, surviving only after the IMF extended an earlier nine-month deal, which was followed by the ongoing 37-month programme.

According to the GCDA, Pakistan consistently ranks near the bottom of global governance indicators among nations. Between 2015 and 2024, the country’s score on control of corruption remained stagnant, placing it among the worst performers worldwide and within its neighbourhood.

At the heart of the IMF’s findings is the concept of “state capture”, where, according to the fund, corruption becomes the norm and, in fact, the primary means of governance. The report argues that the Pakistani state apparatus is frequently used to enrich specific groups at the expense of the broader public.

The report estimates that “elite privilege” – defined as access to subsidies, tax relief and lucrative state contracts for a select few – drains billions of dollars from the economy annually, while tax evasion and regulatory capture crowd out genuine private sector investment.

These findings echo a 2021 United Nations Development Programme (UNDP) report, which said economic privileges granted to Pakistan’s elite groups, including politicians and the powerful military, amount to roughly 6 percent of the country’s economy.

Ali Hasanain, an associate professor of economics at the Lahore University of Management Sciences, said the IMF’s description of elite capture is accurate but added that it was “hardly a revelation”.

He pointed to the 2021 UNDP report and other domestic studies that describe how Pakistan’s economic system has long served politically connected actors who secure “preferential access to land, credit, tariffs and regulatory exemptions.”

“The IMF diagnostic repeats what many domestic studies, including those by the World Bank and Pakistan’s own institutions, have already emphasised: Powerful interests shape rules to maintain their advantage,” he told Al Jazeera.

The new report notes that tax expenditures, including exemptions and concessions granted to influential sectors such as real estate, manufacturing and energy, cost the state 4.61 percent of GDP in the 2023 fiscal year alone.

It also calls for an end to special treatment for influential public sector entities in government contracts and urges greater transparency in the functioning of the Special Investment Facilitation Council (SIFC).

The SIFC, created in June 2023 during Sharif’s first term, is a high-powered body comprising civilian and military leaders and tasked with promoting investment by easing bureaucratic obstacles. Although positioned as a flagship initiative jointly owned by the government and the military, it has faced sustained criticism for a lack of transparency.

The report describes broad legal immunity granted to SIFC officials, many from the armed forces, as a major governance concern. It warns that this immunity, combined with the council’s authority to exempt projects from regulatory requirements, creates significant risks.

Highlighting the absence of transparency, the GCDA says the SIFC should publish annual reports with details of all investments it has facilitated, including concessions granted and the rationale behind them.

“The recently established Special Investment Facilitation Council, which has been vested with substantial authority to facilitate foreign investments, operates with untested transparency and accountability provisions,” the report said.

Judiciary and rule of law

The report identifies the judiciary as another critical bottleneck. Pakistan’s legal system is overwhelmed by more than two million pending cases. In 2023 alone, the number of unresolved cases before the Supreme Court increased by 7 percent.

Over the last 12 months, Pakistan has passed two constitutional amendments, both of which faced severe backlash from many in the legal community who said that they represent a “constitutional surrender”. In essence, the amendments create a parallel Federal Constitutional Court that critics say will reduce the powers of the Supreme Court, while also changing rules that guide how judges are appointed and transferred, in ways that opponents say could give the executive great control over whom to promote and whom to punish.

The government, however, has insisted that the changes were made to improve the efficiency and efficacy of the judicial system.

Similar credibility challenges affect the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA), the two principal bodies responsible for investigating corruption.

The GCDA cites a 2024 government task force, which found that NAB has, at times, exceeded its mandate and launched politically motivated cases. This selective accountability, the report says, has damaged public trust and created a climate of fear within the bureaucracy, slowing decision-making.

While NAB says it recovered 5.3 trillion rupees ($17bn) between January 2023 and December 2024, the report notes that conviction rates remain low.

The diagnostic calls for fundamental reforms to NAB’s appointment processes to ensure independence and a shift from “political victimisation” to “rule-based enforcement”.

Was the report necessary?

The IMF outlines reforms which experts acknowledged would be comprehensive if pursued by authorities.

Yet analysts also note that international institutions and domestic researchers have repeatedly made similar observations in the past, with little follow-through by the government.

Sajid Amin Javed, a senior economist at the Sustainable Development Policy Institute (SDPI) in Islamabad, says the fact that Pakistan is already under an IMF programme may compel the government to take the findings more seriously.

He said that the IMF report could have gone further than it has by acknowledging that many of its recommendations have been made by others in the past, “without bringing any change”.

“Perhaps the assessment could have been made to see why these failures happened,” he said.

Javed welcomed the report’s attempt to quantify economic losses from corruption, hoping it might push policymakers to act.

“Corruption and governance are intrinsically tied to each other. Corruption leads to weak governance, and weak governance promotes corruption, making them conjoined,” he said.

Hasanain, however, was more sceptical, questioning why the IMF waited for a formal request from the Pakistani government despite having its own internal assessment mechanisms.

What can the government do?

Analysts said Pakistan’s economic landscape has long been shaped by politically connected actors who enjoy preferential access to land, credit, tariffs and regulatory exemptions. The IMF’s observations, they noted, are not new.

Hasanain argues that corruption, including elite capture of markets, regulatory bodies and public policy, is political in nature and cannot be addressed without deeper reforms.

“Without a broader political awakening, governance reforms will remain technical fixes built on unstable foundations. Ultimately, elite capture is undone only when political incentives change,” he said.

Javed, meanwhile, pointed to what he called policy design capture, arguing that those responsible for drafting governance and anticorruption reforms are often part of the same elite ecosystem.

“Elite policy capture on policy design is perhaps the most important component which allows the elite capture. The report’s recommendations show that we must go for participatory and inclusive methods to get out of our current conundrum,” he said.

For Hasanain, the most urgent reform is a unified economic turnaround plan that is fully owned by the prime minister and communicated clearly.

He said that Pakistan’s economic landscape was cluttered with “committees, councils, task forces and overlapping ministries”, each producing its own documents without accountability.

“The government should consolidate these scattered structures into one clear reform platform with defined priorities, timelines and measurable outcomes. Progress should be published monthly, debated publicly, and subjected to independent scrutiny,” he said.

Hasanain argued that such consolidation would improve coordination, build public trust and signal seriousness to investors.

For Javed, the most immediate priority is reforming the public procurement system, which governs how government bodies buy goods and services using public funds.

“Our procurement system is not working on value of money, but instead it focuses on quantity of money, where lowest bidder wins the bid,” he said, arguing that this approach meant that contracts often did not go to those best suited to deliver what was needed. “This system needs urgent modernisation.”

“An urgent realisation is the order of the day that if we need to have a flourishing, transparent economy, we have no choice but to overhaul our entire economic framework,” Javed said.

DALLAS — Ross Perot, outlining how he would mend the U.S. economy, proposes a combination of tax cuts and loans for small business and tougher trade policy to create more jobs at home.

“We cannot be a superpower if we cannot manufacture here,” the Texas billionaire said in an interview with the Los Angeles Times. He called for the United States to make almost everything it needs at home. “We have to manufacture here,” he said.

Perot, whose undeclared presidential candidacy has surged in opinion polls, described himself as a “fair and free trader” but believes that “agreements we’ve cut with countries around the world are not balanced at all.”

He said he would adjust the “tilted deck” of trade with Japan “in a very nice, diplomatic way. In this case (make) the Japanese say: ‘We’ll take the same deal on cars we’ve given you.’ ”

The effect, he said, would be to drastically reduce imports from Japan. “You are going to see the clock stop,” said Perot. “You could never unload the ships to this country; just could never unload the ships.”

In a similar vein, he opposes a free-trade agreement with Mexico, believing it would drain manufacturing jobs from a U.S. economy that cannot afford to lose them.

Perot said he is willing to have his mind changed. “This is a complicated, multi-piece equation that we need to think through very carefully. In carpenter’s terms, measure twice, cut once,” he said.

But in Mexico, “labor is a 25- year-old with little or no health-care expense working for a dollar an hour. You cannot compete with that in the U.S.A., period,” he said. “So you would have a surge in building factories down there but a long-term drought here at a time we cannot pay our budget deficits.”

The interview centered on Perot’s agenda on the issues of trade, taxes and the federal deficit. In Perot’s view, problems of the U.S. economy are interrelated, from trade to the national debt and the troubled public school system–which he calls “the least effective public education system in the industrialized world.”

“We’ve got a country $4 trillion in debt, adding $400 billion this year,” he said in his Dallas office–graced by portraits of his family and the painting “Spirit of ‘76” on a wall behind his desk.

“And we have a declining job base, which gives us a declining tax base at a time when we’ve run our debt through the ceiling. In business terms, that’s a ticket for disaster. Never forget that every time you lose a worker–who goes on welfare–the welfare check exceeds the tax payment that used to come to the IRS.”

Perot’s reference to a declining job base reflects his belief–disputed by some scholars–that jobs created in the 1980s were at lower wages than the jobs they replaced as manufacturing companies restructured. Most analysts and government data agree that wages for less educated, industrial workers have fallen over the last two decades. But there have been rising incomes at the same time for educated employees–especially those in new, computer-based information industries.

Perot, who will turn 62 this month, is a pioneer of the information-based industry. In 1962 he founded Electronic Data Systems, which innovated the business for organizing computer data for large companies and the government. It made Perot one of the nation’s wealthiest men. But Perot says that advanced industries alone cannot be the solution for the United States.

“Don’t bet the farm on high tech,” he said. “Information industry is all about intellectual acuity. And in a country with the least effective public education in the industrialized world, it kind of makes you grimace.

“What I’m saying is, right now, we can’t take people out of factories and send them to Microsoft (the leading computer software firm). If their children had a great education, we could. That’s generational change. But their children are not getting a great education.”

Perot made great efforts on behalf of educational reform in Texas in 1984, and has said he supports greatly expanded funding for education starting at preschool levels for all children. “It’s the best investment we can make,” he has said.

But education is for the future, and there is a need to create jobs now in the United States, not overseas, Perot declared.

“Do we need to make clothing in this country? Of course we do. Do we need to make shoes in this country? Of course we do. We have places in our country where people would be delighted to work in a shoe factory for reasonable wages.

“When I think of shoes, I think of Valley Forge (the winter encampment during the American Revolution where George Washington’s soldiers wrapped their feet in bandages and rags),” said Perot, a graduate of the U.S. Naval Academy.

“My mind bounces back and forth between the world I hope we have and the world that might be. We might be fighting barefooted.”

Perot contended that jobs can be created fastest in small companies.

“The quickest way to stimulate the economy and have a growing, dynamic job base is to stimulate small business. You’ll create more jobs faster by going through small business than through the huge industries,” said Perot, who started his business career as a salesman for IBM.

He said small-business people today are starved for credit and capital since banks are cautious of lending in the aftermath of the speculative 1980s, and small business doesn’t have access to big stock and bond markets.

But if he should become President, solving the credit problem will be “easy,” Perot said. “Change the regulations and the banks will loan the money,” he said, indicating that bank examiners should loosen their definitions about prudent loans and reduce the amount banks must reserve against potential losses.

Perot would attract investors to small business ventures by reducing the tax on capital gains. “I’ve got to give you a reason to take money out of Treasury bills to invest in a high-risk, wildcatting venture,” Perot explained.

“I can’t force you to take your money out of T-bills, so I have to create an environment where you want to take this risk.” That means a tax preference. “But I’m not changing capital gains for everybody. This is for the really high-risk start-up of a small company,” Perot said.

But “you will rarely hear me use the word ‘capital gains tax rate.’ I’ll be talking about money to create jobs,” he said.

Perot’s own considerable fortune, estimated by various business publications at $3.3 billion, is invested mostly in T-bills and corporate and high-rated municipal bonds. He has $200 million invested in Perot Systems, $350 million in real estate and about $40 million in funds for start-up companies, including a stake in Next Inc., the computer company headed by Apple co-founder Steven P. Jobs.

Perot also spoke of pushing for legislation to allow, and encourage, banks to make equity investments in start-up companies–a form of government-backed development bank.

“Or some other vehicle will emerge,” he said. “You find what seems to be the best way out–and then you adjust 1,000 times as you go. That’s the way you do anything, whether it’s cutting grass or making rockets.”

Perot’s views on big business are harsh. He believes a ruinous gap opened up between management and labor in large corporations, between executives who paid themselves handsomely while demanding reductions in the pay of ordinary workers. The result was a reduction in American competitiveness and hurt the U.S. economy, he says, repeating a theme he sounded often in two stormy years on General Motors’ board of directors.

Today, he is not surprised that the chief executives of more than a dozen major corporations, meeting last month at the Business Council in Hot Springs, Va., uniformly disapproved of him and his candidacy.

“They’re part of the Establishment,” Perot said. “The status quo works for them right now, and I’m talking about major, major change.”

Still, big companies should be enlisted in a drive to turn the U.S. economy to pursuits of peace, from what Perot terms “45 years of Cold War which drained us. The Cold War broke Russia, but it drained us.”

For all his distrust of foreign trade agreements, Perot admires the way Japanese companies do business–in particular Toyota, which he studied while a director of GM. “They work as a team and their products have quality,” Perot said. “Have you spent time in a Lexus dealership? All those guys selling Lexuses have to do is get you to drive it around the block.”

Perot himself drives an ’87 Oldsmobile. But he said U.S. industry should start doing things the way Japanese industry does, having senior business figures help small start-ups, “targeting industries of the future and making sure sacrifice in corporations starts at the top.”

Perot acknowledges that many things he admires in Japanese industry stem from that country’s different way of organizing society. “But my point is, you and I, our company is failing. And we have a competitor who’s winning. I would say, let’s go study him and figure out why he wins.”

To pay for his programs, Perot said, “We are not going to raise taxes unless we have to. But I ain’t stupid enough to say ‘Watch my lips.’ ”

He would “go to a new tax system because the one we have now is paper-laden, inefficient, not fair and so on.” But he claims to have no specific ideas yet on how to change taxes. “I would get people in, and in 60 days I’d have half a dozen new tax systems,” he said.

“My points on taxes are basically three: We’ve got to raise the revenues to make the country go.

“Two, we’ll get rid of the waste. The Department of Agriculture, with 2% of our people engaged in farming, is bigger than it was when a third of our people were farming. You’ve got to cut it down and you need a strong consensus to do that.”

He has been criticized for not being more specific on what other programs he would cut, and by how much. But as a third step, he said he would demand authority to selectively cut programs approved by Congress. “Give me the line-item veto, or don’t send me there,” said Perot, echoing a demand first raised by Ronald Reagan.

Perot has become linked with the idea that wealthy people might help reduce the federal deficit by giving up their rights to Social Security and Medicare. By one calculation, which Perot ascribes to Bush Administration chief economic adviser Michael J. Boskin, such a sacrifice by the wealthy could save the Treasury $100 billion a year–although Perot says that figure has proved dubious.

“I’d give up Social Security in a minute,” said the Texas billionaire. “And if a lot of people would give it up who did not need it, that’s worth looking at.”

Would that be subjecting the venerable Social Security program to a “means test,” which would adjust individual benefits based on income or assets.

“I never got down to what means testing is,” Perot said. “We’ve just got to go through and look at every single item. We have work to do.”

Heads of state from the world’s most powerful countries gathered in Johannesburg, South Africa, over the weekend for a summit that had been billed, under South Africa’s G20 presidency, as a turning point for addressing debt distress across the Global South.

South African President Cyril Ramaphosa had consistently framed the issue as central to his agenda, arguing that spiralling repayment costs have left governments, particularly in Africa, with little room to fund essential services like healthcare and education.

But despite repeated pledges – including in the leaders’ summit declaration to “strengthen the implementation of the G20 Common Framework” – South Africa did not deliver any new proposals for easing fiscal constraints in indebted nations.

Hopes that world leaders would use the G20 summit to tackle sovereign debt distress were further dashed when United States President Donald Trump, at odds with South Africa over domestic policies, skipped the meeting altogether amid Washington’s retreat from multilateralism.

The summit also marked the close of a brief period of Global South leadership in the G20, following presidencies held by Indonesia in 2022, India in 2023, and Brazil in 2024. The US is set to assume the G20 presidency on December 1.

Debt ‘vulnerabilities’

The G20 – which consists of 19 advanced and emerging economies, the European Union and the African Union – represents 85 percent of global gross domestic product (GDP) and roughly two-thirds of the world’s population.

In October, G20 finance ministers and central bank chiefs met in Washington and agreed to a consensus statement on debt.

“We recognise that a high level of debt is one of the obstacles to inclusive growth in many developing economies, which limits their ability to invest in infrastructure, disaster resilience, healthcare, education and other development needs,” the statement said.

It also pledged to “reaffirm our commitment to support efforts by low- and middle-income countries to address debt vulnerabilities in an effective, comprehensive and systematic manner”.

The communique committed to improving the much-criticised Common Framework, a mechanism launched by the G20 five years ago to accelerate and simplify debt restructuring – when countries have to reprofile debts they can no longer afford to repay.

Elsewhere, the statement advocated for greater transparency around debt reporting and more lending from regional development banks.

Record-high debt levels

According to the Institute of International Finance, a banking industry association, total debt in developing countries rose to a record high of $109 trillion by mid-2025.

In recent years, COVID-19, climate shocks and rising food prices have forced many poor countries to rely on debt to stabilise their economies, crowding out other investments. For instance, the United Nations recently calculated that more than 40 percent of African governments spend more on servicing debt than they do on healthcare.

Africa also faces high borrowing costs. In 2023, bond yields – the interest on government debt – averaged 6.8 percent in Latin America and the Caribbean, and 9.8 percent in Africa.

Meanwhile, Africa collectively needs $143bn every year in climate finance to meet its Paris Agreement goals. In 2022, it received approximately $44bn.

At the same time, countries on the continent spent almost $90bn servicing external debt in 2024.

No progress

Shortly before the release of the G20’s final communique, 165 charities condemned the group’s slow progress on debt sustainability and urged President Ramaphosa to implement reforms before transferring the G20 presidency over to the US in December.

“While this year’s G20 has been put forward as an ‘African G20’, there is no evidence that any progress has been made on the debt crisis facing Africa and many other countries worldwide during the South African presidency,” the group said in a letter.

The missive called on the International Monetary Fund (IMF) to sell its gold reserves and set up a debt relief fund for distressed governments. It also backed the creation of a ‘borrowers club’ to facilitate cooperation among low-income countries.

The call for a unified debtor body reflects growing frustration with existing frameworks, notably the Paris Club, in which mostly Western governments, but not China, have exerted undue influence over the repayment policies of debtor nations.

In May 2020, the G20 launched a multibillion-dollar repayment pause to help poor countries cope with the COVID‑19 crisis. Known as the Debt Service Suspension Initiative, the programme is continuing to provide relief to some participating countries.

The launch of the Common Framework, soon afterwards, was designed to coordinate debt relief among all creditors. At the time, the initiative was hailed as a breakthrough, bringing together the Paris Club, China and private creditors to help prevent a full-blown debt crisis in developing countries.

But coordinating equal treatment, including government lenders, commercial banks, and bondholders, has made the process slow and prone to setbacks.

To date, none of the countries that joined the Common Framework – Ethiopia, Zambia, Ghana, and Chad – have completed their debt restructuring deals.

And even then, the programme has relieved just 7 percent of the debt costs for the four participating nations, according to ONE Campaign, an advocacy group.

‘Outmanoeuvred’

In March, South Africa convened an expert panel – headed by a former finance minister and a former Kenyan central banker – to explore how to assist heavily indebted low-income countries, particularly in Africa.

In a report released earlier this month, the panel echoed many of the ideas put forward by the 165 charities that wrote to Ramaphosa in October, calling for measures like an IMF-backed special debt fund and the formation of a debtors’ club.

But the experts’ proposals “weren’t even acknowledged at the leaders’ summit”, Kevin Gallagher, director of Boston University’s Global Development Policy Center, told Al Jazeera. He said that the G20 presidency “failed to address the scale of the global debt problem”.

“Ultimately,” Gallagher added, “South Africa was outmanoeuvred by larger, more economically important members of the G20 who saw little benefit to themselves in reforming the international financial architecture on debt.”

‘Double whammy’ of debt

In the early 2000s, the IMF, World Bank and some Paris Club creditors cancelled more than $75bn of debt – roughly 40 percent of external obligations – under the Heavily Indebted Poor Countries Initiative.

Since then, however, many developing countries have slipped back into the red. After the 2008 financial crisis, private creditors poured money into low-income economies, steadily replacing the cheaper loans once offered by institutions like the World Bank.

Between 2020 and 2025, almost 40 percent of external public debt repayments from lower-income countries went to commercial lenders. Just one-third went to multilateral institutions, according to Debt Justice, a United Kingdom-based charity.

China has also emerged as the world’s largest single creditor, especially in the Global South, committing more than $472bn through its policy banks – such as the China Development Bank and the Export-Import Bank – between 2008 and 2024.

“On top of debt becoming more expensive over the past 10 or 15 years, there is now a wider universe of lenders that developing countries have turned to,” says Iolanda Fresnillo, a policy and advocacy manager at Eurodad, a civil society organisation.

“It’s been a double whammy. Debt is now costlier and harder to resolve,” she said, noting the difficulty of coordinating creditors in a restructuring. Protracted debt crises slow growth by squeezing public investment.

Overcoming these hurdles is made harder when creditors pursue competing commercial interests. Fresnillo says an independent debt-restructuring body, designed to shorten negotiation times and limit economic costs, could help.

In September, the head of the UN Conference on Trade and Development (UNCTAD), Rebeca Grynspan, said, “There is no permanent institution or system that is there all the time dealing with debt restructuring … maybe we can create new momentum.”

However, talk of an international sovereign debt restructuring mechanism isn’t new. The IMF spearheaded a push for a neutral body – which would be akin to a US bankruptcy court – in the late 1990s.

The Fund’s proposed restructuring mechanism faced swift pushback. Major creditor countries, particularly the US, opposed ceding power to an international body that could override its legal system and weaken protections for US investors.

Still, “the need for this type of international solution is obvious”, says Fresnillo. “Having a basic set of rules, as opposed to an ad hoc negotiation for every new debt crisis, should be a bare minimum.”

She added that “adopting a global standard on taxing transnational corporations could also guarantee a baseline of revenues for low-income countries. But with multilateral cooperation so weak right now, I wouldn’t hold my breath.”

The federal government seeks to develop tailored artificial intelligence (AI) solutions and drive significant cost savings by leveraging AWS’s dedicated capacity.

Amazon is set to invest up to $50bn to expand artificial intelligence (AI) and supercomputing capacity for United States government customers, in one of the largest cloud infrastructure commitments targeted at the public sector.

The e-commerce giant announced the investment on Monday.

The project, expected to break ground in 2026, will add nearly 1.3 gigawatts of new AI and high-performance computing capacity across AWS Top Secret, AWS Secret and AWS GovCloud regions through new data centres equipped with advanced computing and networking systems.

One gigawatt of computing power is roughly enough to power about 750,000 US households on average.

“This investment removes the technology barriers that have held the government back”, Amazon Web Services (AWS) CEO Matt Garman said.

AWS is already a major cloud provider to the US government, serving more than 11,000 government agencies.

Amazon’s initiative aims to provide federal agencies with enhanced access to a comprehensive suite of AWS AI services. These include Amazon SageMaker for model training and customisation, Amazon Bedrock for deploying AI models and agents and foundational models such as Amazon Nova and Anthropic Claude.

The federal government seeks to develop tailored AI solutions and drive significant cost savings by leveraging AWS’s dedicated and expanded capacity.

The push also comes as the US, along with other countries such as China, intensifies efforts to advance AI development and secure leadership in the emerging technology.

Tech companies, including OpenAI, Alphabet and Microsoft, are pouring billions of dollars into building out AI infrastructure, boosting demand for computing power required to support the services.

On Wall Street, Amazon’s stock was up 1.7 percent in midday trading.

Other tech stocks surged amid the recent investments. Alphabet, Google’s parent company, closed in on a $4 trillion valuation on Monday and was set to become only the fourth company to enter the exclusive club. Its stock was up 4.7 percent.

Last week, Nvidia announced expectations of higher fourth-quarter revenue — a month after the tech giant announced a partnership to build supercomputers for the US Department of Energy — a deal that sent the company’s valuation topping $5 trillion.

Nvidia stock was up by 1.8 percent in midday trading.

Move comes as a growing number of countries are rolling out measures to limit children’s exposure to digital platforms.

Malaysia plans to ban social media for users under the age of 16 starting from next year, joining a growing list of countries choosing to limit access to digital platforms due to concerns about child safety.

Communications Minister Fahmi Fadzil said on Sunday the government was reviewing mechanisms used to impose age restrictions for social media use in Australia and other nations, citing a need to protect youths from online harms such as cyberbullying, financial scams and child sexual abuse.

“We hope by next year that social media platforms will comply with the government’s decision to bar those under the age of 16 from opening user accounts,” he told reporters, according to a video of his remarks posted online by local daily The Star.

The effects of social media on children’s health and safety have become a growing global concern, with companies including TikTok, Snapchat, Google and Meta Platforms – the operator of Facebook, Instagram and WhatsApp – facing lawsuits in the United States for their role in driving a mental health crisis.

In Australia, social media platforms are poised to deactivate accounts registered to users younger than 16 next month, under a sweeping ban for teenagers that is being closely watched by regulators around the world.

France, Spain, Italy, Denmark and Greece are also jointly testing a template for an age verification app.

Malaysia’s neighbour Indonesia said in January it planned to set a minimum age for social media users, but later issued a less stringent regulation requiring tech platforms to filter negative content and impose stronger age verification measures.

Malaysia has put social media companies under greater scrutiny in recent years in response to what it claims to be a rise in harmful content, including online gambling and posts related to race, religion and royalty.

Platforms and messaging services with more than eight million users in Malaysia are now required to obtain a license under a new regulation that came into effect in January.