Speaking to TV station TF1, Papin said it was “unfair” that physical stores are responsible for the goods they sell on their shelves, while online platforms are not

International News via Reuters:

Online retailers such as Shein will face a “year of resistance” in France, the country’s minister for small and medium-sized businesses Serge Papin, said on Thursday, adding that the platforms posed unfair competition to French chains.

Speaking to TV station TF1, Papin said it was “unfair” that physical stores are responsible for the goods they sell on their shelves, while online platforms are not.

A Paris court is set to start hearing an appeal from the government to a December court ruling rejecting its request for a three-month suspension of Shein after child-like sex dolls were found for sale on its marketplace.

Shein, which has since partly reopened its marketplace and said it has set up controls on the products sold there, declined to comment on Thursday.

‘THEY MUST RESPECT THE CONSUMER RULES’

Papin said such breaches were “systemic” and he was confident the court will be receptive to his argument that Shein presented a “disturbance to public order”.

He said that two French lawmakers are preparing a bill that would allow the government to suspend online platforms without the need for court approval, adding that he would like to see Shein’s sales fall in France.

The explosive growth of Shein, which sells clothes and accessories at rock-bottom prices thanks to its business model of sending parcels direct from factories in China to shoppers around the world has triggered a backlash in many countries in Europe where traditional retailers are losing ground.

“We need to protect ourselves of course, there is unfair competition, they must respect the consumer rules (applied to French retailers),” Papin said.

France has implemented a 2 euro tax, to take effect from March 1, while the European Union will introduce a 3 euro tax in the summer on small parcels which were previously exempt from tariffs in a bid to curb sales by Shein and other platforms.  

Reporting by Inti Landauro; Editing by Sudip Kar-Gupta, Dominique Patton and Alexander Smith

Among Group of Seven countries, Canada recorded the highest rate of food inflation in December, according to government data

International News via Reuters:

Canadian Prime Minister Mark Carney has earned global admiration for openly declaring the end of a global order based on rules, but he has had far less success addressing a growing and more quotidian concern at home: the rising cost of food. 

Among Group of Seven countries, Canada recorded the highest rate of food inflation in December, according to government data. Food prices rose by 6.2% in December, double the rate in the U.S., and more than three times the rates in France and Germany.  

Carney leads a minority government in Canada and relies on support from other parties to pass legislation and stay in power. While Canadians have consistently rated Carney as the best leader to deal with threats from U.S. President Donald Trump, voter sentiment could change quickly if concerns about American aggression lessen – and cost-of-living issues become more urgent, as they have in Britain, the U.S. and elsewhere. 

A statement from the Bank of Canada this week noted that grocery prices jumped by 22% in the last three years, compared to 13% for other consumer prices. The central bank said last year’s food inflation was mostly driven by imported foods, supply shortages caused by extreme weather and the significant depreciation of the Canadian dollar in 2024. 

Carney announced last week that the country’s poorest 12 million people will get a tax credit for the next five years, “to make sure Canadians have the support they need now.” The government is also taking other measures, like setting aside C$500 million to help businesses deal with supply chain disruptions and allowing producers to write off greenhouse expenses.

TAX CREDITS AND SUPPLY CHAIN SUPPORT

But the measures do little to lower food prices in Canada, which is now the biggest driver of inflation, according to Jeremy Kronick, director of the Centre on Financial and Monetary Policy at the C.D. Howe Institute think tank in Toronto. 

“This will mostly provide relief to people who are choosing between paying rent or buying food, but it is not going to bring food prices down,” said Michael von Massow, a professor at the University of Guelph who specializes in food economics.

John Fragos, press secretary for Canada’s Finance Minister Francois-Philippe Champagne, said the new government initiatives were only a first step towards curbing food costs. 

“We’ve bridged the food inflation gap as it exists now and we’re taking aim at structural issues that will, over the medium and long term, bring down the price of groceries,” said Fragos.

In late 2024, ex-Prime Minister Justin Trudeau also announced a two-month suspension of a sales tax on selected goods “to give Canadians more money in their pockets.” It had mixed results, with some sectors like restaurants reporting increased sales while other businesses did not see an impact.

CANADA’S UNIQUE GROCERY MARKET PROBLEMS

Academics point to entrenched issues including the dominance of just five companies in the grocery sector, a shorter growing season for produce in Canada, and a reliance on the U.S. that has resulted in higher prices via supply chain disruptions.

“There are some uniquely Canadian problems that make the cost of food here so very expensive,” said Michael Widener, who studies food systems at the University of Toronto. 

“Labour and transportation costs are higher, and geographically, we are not close to many other markets,” he said, adding that the dependence on produce from the U.S. and Mexico made Canada extremely vulnerable.

Sylvain Charlebois, an expert in food distribution at Dalhousie University in Nova Scotia, said the government should focus on efforts like eliminating high transportation costs between provinces, addressing the high internal costs of production due to labour laws and the industrial carbon tax among other constraints, and increasing competition within the grocery sector. Canada is a major producer of canola, wheat, dairy and meat but is almost entirely dependent on imports of fresh produce during the winter.

Fresh fruit and vegetables routinely cost at least twice as much in Canada as they do in Britain and elsewhere in Europe; a two-pound bag of carrots in Canada costs $2.21, compared to $0.95 in Britain and $1.18 in Germany, according to online retailers.

Conservative leader Pierre Poilievre has long railed against the high cost of food for Canadians, but that has not translated into increased support. He still trails Carney by double digits in opinion polls — and Carney’s approval has risen since his widely praised Davos speech that openly called out the world’s superpowers for using “economic integration as weapons,” according to several polls.  

A poll by Nanos on January 30 showed 54% of Canadians approved of Carney but also noted that 11.4% said inflation was their biggest concern, up from 9.3% a month earlier. 

The Conservatives’ co-deputy leader Melissa Lantsman told reporters on Monday that “no amount of tax rebates” will solve the problem of food inflation, adding that more than 2 million Canadians, or about 5% of the population, now rely on food banks, the highest-ever recorded number. 

Shachi Kurl, president of the non-profit pollster Angus Reid, said despite food costs consistently ranking among Canadians’ top concerns, Trump’s repeated threats to annex the country have translated into a bigger issue for voters.

“For the time being, food prices are not a voting issue,” Kurl said. “But if Canadians think that is something they can hold their leader accountable for, it may yet become one.”

Ashton Arsenault, who was an aide to a Conservative minister under previous leader Stephen Harper, said exorbitant food costs should present an opportunity for Conservatives to win more public support, but that a steady rise in prices over the years have largely left most Canadians resigned to the inflation.

“Even when things get really bad, we are still very Canadian and polite about it and don’t take to the streets to protest,” he said. “This is a very tough problem to fix and it will take political courage to do it.”

Reporting by Maria Cheng; Editing by Caroline Stauffer and Deepa Babington

Brent crude futures were down 86 cents, or 1.2%, at $68.6 per barrel at 1036 GMT

International News via Reuters:

Oil prices fell more than 1% on Thursday but held close to multi-month highs after the U.S. and Iran agreed to hold talks in Oman on Friday.

Brent crude futures were down 86 cents, or 1.2%, at $68.6 per barrel at 1036 GMT. U.S. West Texas Intermediate crude prices fell 82 cents, or around 1.3%, to trade at $64.32.

However Brent remained only $3 from the five-month high it hit at the end of January on worries over oil supply disruptions. 

Oil prices are strongly influenced by tensions in the Middle East, with markets closely watching the talks in Oman, said UBS analyst Giovanni Staunovo. 

The discussions come as the U.S. builds up forces in the Middle East, and regional players seek to avoid a military confrontation that many fear could escalate into a wider war.

About a fifth of the world’s total oil consumption passes through the Strait of Hormuz between Oman and Iran. Other OPEC members, Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, export most of their crude via the strait, as does Iran.

PVM Oil Associates analyst John Evans said that ahead of Friday’s meeting the market would likely drift with hopes of a diplomatic breakthrough.

“However, there will be no comfort as such in prices, for one untoward remark or a breakdown in talks and the Brent price will soon be banging on the door of $70 a barrel and looking at year-to-date highs,” he said.

Volatility has led to investors rushing to lock in oil prices this year, trading a record number of WTI Midland at Houston contracts in January, amid concerns Middle Eastern supply risks and more Venezuelan barrels heading to the U.S. Gulf Coast.

Strength in the U.S. dollar and volatility in precious metals also weighed on commodities and risk sentiment more broadly on Thursday, analysts said. 

Reporting by Seher Dareen in London, Katya Golubkova in Tokyo and Siyi Liu in Singapore; Editing by Sonali Paul, Jamie Freed and Jan Harvey

The European Commission said on Thursday Apple’s Maps and Ads services will not be designated as gatekeepers under the EU’s Digital Markets Act, citing their relatively low usage and limited market impact in Europe

International News via Reuters:

The European Commission said on Thursday Apple’s Maps and Ads services will not be designated as gatekeepers under the EU’s Digital Markets Act, citing their relatively low usage and limited market impact in Europe.

“The Commission has concluded that Apple does not qualify as a gatekeeper in relation to Apple Ads and Apple Maps, as neither of these platform services constitute an important gateway for business users to reach end users,” it said in a statement.

Apple said it welcomed the decision.

“These services face significant competition in Europe, and we’re pleased the Commission recognized they do not meet the criteria for designation under the Digital Markets Act,” it said in a statement.

The EU’s DMA is among the strictest laws worldwide aimed at curbing the market power of major tech companies, designed to make it easier for users to switch between competing services such as social media platforms, web browsers and app stores.

Reporting by Charlotte Van Campenhout;Editing by Sudip Kar-Gupta and Bernadette Baum