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  • Salman Rushdie makes rare public address after attack, warns free expression under threat

    Salman Rushdie makes rare public address after attack, warns free expression under threat

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    Writer Salman Rushdie has made a public speech nine months after being stabbed and seriously injured onstage

    FILE – Salman Rushdie attends the 68th National Book Awards Ceremony and Benefit Dinner on Nov. 15, 2017, in New York. Writer Salman Rushdie has made a public speech nine months after being stabbed and seriously injured onstage, warning that freedom of expression in the West is under its most severe threat of his lifetime. Rushdie delivered a video message to the British Book Awards, where he was awarded the Freedom to Publish award on Monday evening May 15, 2023. (Photo by Evan Agostini/Invision/AP, File)

    The Associated Press

    LONDON — Writer Salman Rushdie has made a public speech, nine months after being stabbed and seriously injured onstage, warning that freedom of expression in the West is under its most severe threat in his lifetime.

    Rushdie delivered a video message to the British Book Awards, where he was awarded the Freedom to Publish award on Monday evening. Organizers said the honor “acknowledges the determination of authors, publishers and booksellers who take a stand against intolerance, despite the ongoing threats they face.”

    He said that “we live in a moment, I think, at which freedom of expression, freedom to publish has not in my lifetime been under such threat in the countries of the West.”

    “Now I am sitting here in the U.S., I have to look at the extraordinary attack on libraries, and books for children in schools,” he said. “The attack on the idea of libraries themselves. It is quite remarkably alarming, and we need to be very aware of it, and to fight against it very hard.”

    Rushdie, 75, was blinded in one eye and suffered nerve damage to his hand when he was attacked at a literary festival in New York state in August. His alleged assailant, Hadi Matar, has pleaded not guilty to charges of assault and attempted murder.

    Rushdie spent years in hiding with police protection after Iran’s Grand Ayatollah Ruhollah Khomeini issued a fatwa, or edict, in 1989 calling for his death over the alleged blasphemy of the novel “The Satanic Verses.”

    In his speech, Rushdie also criticized publishers who change decades-old books for modern sensibilities, such as large-scale cuts and rewrites to the works of children’s author Roald Dahl and James Bond creator Ian Fleming.

    He said publishers should allow books “to come to us from their time and be of their time.”

    “And if that’s difficult to take, don’t read it, read another book,” he said.

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  • Ex-Audi chief pleads guilty in automaker’s diesel emissions scandal

    Ex-Audi chief pleads guilty in automaker’s diesel emissions scandal

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    The former head of Volkswagen’s luxury division Audi has pleaded guilty to charges tied to the automaker’s diesel emissions scandal

    Rupert Stadler, former CEO of German car manufacturer Audi, sits in a regional court room in Munich, Germany, Tuesday, May 16, 2023. Stadler plans to plead guilty in connection with the ‘Dieselgate’ emissions cheating scandal. This would make him the first CEO of the automotive industry to be convicted in the resulting trials. (AP Photo/Matthias Schrader, Pool)

    The Associated Press

    FRANKFURT, Germany — The former head of Volkswagen‘s luxury division Audi pleaded guilty Tuesday to charges tied to the automaker’s diesel emissions scandal, becoming the highest-ranking executive convicted over cars that cheated on emissions tests with the help of illegal software.

    Rupert Stadler answered “yes” to a statement read in court by his attorney that said Stadler admitted wrongdoing and regret for his failure to keep rigged cars off the market even after the scandal had become public knowledge, the dpa news agency reported.

    Stadler entered the plea under an agreement with the judge and prosecutors that provides probation instead of jail time and orders him to pay a 1.1 million euro ($1.2 million) fine in return for a thorough admission of guilt.

    Three lower-ranking managers also have taken plea deals in the 2 1/2-year-long trial in Munich.

    Stadler had been charged with fraud and false certification by prosecutors who said he let cars with rigged software be sold after September 2015. That’s when the U.S. Environmental Protection Agency issued a notice of violation under the Clean Air Act after discovering the rigged software.

    The software turned on emission controls when the cars were on test stands and turned them off when the cars were on the road. The cars would pass inspection but emitted many times the permitted level of nitrogen oxide, a pollutant that can harm people’s health.

    The scandal cost Volkswagen more than $30 billion in fines and settlements and saw two U.S. executives sent to prison.

    It pushed the entire auto industry away from reliance on diesel engines, which had been almost half the auto market in Europe, and helped accelerate the push into electric vehicles.

    Volkswagen has since become one of the world’s biggest makers of battery-only cars.

    Former VW CEO Martin Winterkorn, who resigned in the wake of the 2015 EPA announcement, has been charged by U.S. and German authorities but cannot be extradited to the U.S. German proceedings against him have stalled because he is in poor health.

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  • Hong Kong leader says China’s sentencing of US citizen exposes national security threats

    Hong Kong leader says China’s sentencing of US citizen exposes national security threats

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    HONG KONG — Hong Kong’s leader on Tuesday said the sentencing on spying charges of a U.S. citizen in China, who was also a permanent resident of the semi-autonomous city, illustrated that the territory should “stay vigilant to national security risks hidden in society.”

    The government said mainland Chinese authorities had informed Hong Kong of the arrest of John Shing-Wan Leung in 2021. He was sentenced Monday to life in prison. Hong Kong’s government was prepared to provide assistance to anyone arrested by mainland authorities upon request but had not yet received any in Leung’s case, authorities said.

    Neither Hong Kong Chief Executive John Lee nor the court in the eastern Chinese city of Suzhou that tried Leung, 78, have released details of his alleged crime.

    Since taking office last year, Lee has taken a hard line toward any signs of dissent, backed up by the uncompromising attitude adopted by Chinese leaders from authoritarian Communist Party head Xi Jinping on down.

    “This incident showed us that national security risks could be hidden in society. That’s why we repeatedly stressed that, although Hong Kong’s situation appears to be largely stabilized, we can’t let down our guard over national security risks,” said Lee, a former police officer and head of security in the city.

    A longtime Beijing loyalist, he was effectively appointed to the top position after running unopposed in an election choreographed by Beijing last year.

    In an echo of party propaganda, Lee referred to the 2019 pro-democracy protests that triggered a crackdown as “black violence” and Hong Kong’s version of “color revolution,” a phrase used by China and Russia to describe political movements seeking to overturn authoritarian regimes. Lee said the protest movement was an alarm bell that reminds the city to keep monitoring such risks.

    Leung’s sentencing threatens to further exacerbate already strained ties between Beijing and Washington.

    Leung was detained April 15, 2021, by the local bureau of China’s counterintelligence agency in Suzhou, according to a statement posted by the city’s intermediate court on its social media site. His detention came after China had closed its borders and imposed tight domestic travel restrictions and lockdowns affecting tens of millions to fight the spread of COVID-19.

    Such investigations and trials are held behind closed doors and little information is generally released.

    The harsh sentence given Leung was especially notable because of his previous affiliations with pro-Communist Party organizations, including one seeking overseas support for Beijing’s goal of unification with self-governing Taiwan.

    Relations between Washington and Beijing are at their lowest in decades amid disputes over trade, technology, human rights and China’s increasingly aggressive territorial claims toward Taiwan, the South China Sea and elsewhere.

    High-level government exchanges between the sides have been placed on hold and U.S. companies are delaying major investments amid mixed messaging from Beijing. Many Chinese firms, most notably telecoms giant Huawei, have been effectively shut out of the U.S. market due to legal bans and high tariffs.

    The sentencing comes as U.S. President Joe Biden is traveling to Hiroshima, Japan this weekend for the summit of the Group of Seven major industrial nations, followed by a visit to Papua New Guinea, a Pacific island nation in a region where China has sought to expand its economic, military and diplomatic influence.

    While the Suzhou court offered no indication of a link between Leung’s case and overall China-U.S. relations, spying charges in China often appear highly selective and evidence backing them up is held in secret. The party’s rigid control over courts, civil society and the media effectively blocks efforts to gain further information or mount legal appeals.

    The U.S. Embassy in Beijing said Monday it was aware of Leung’s case, but could not comment further due to privacy concerns. “The Department of State has no greater priority than the safety and security of U.S. citizens overseas,” the embassy said.

    A former British colony, Hong Kong was promised it would retain its financial, social and political liberties when returned to China in 1997. Beijing has since torn up that commitment through progressively harsher restrictions on public gatherings, free speech and political participation, while still promoting the city as an efficient and corruption-free center for trade and finance.

    Meanwhile, on the mainland, Chinese national security agencies have raided the offices of foreign business consulting firms in Beijing and other cities as part of a crackdown on foreign businesses that provide sensitive economic data.

    The pressure on foreign companies appears to clash with attempts by Beijing to lure back foreign investors after draconian COVID-19 pandemic restrictions were lifted at the beginning of the year.

    It wasn’t clear who represented Leung at his trial and his family has not commented on the sentence. Friends and former colleagues declined The Associated Press’ requests for comment.

    Long pretrial detentions are not unusual in China and prosecutors have broad powers to hold people charged in national security cases, regardless of their citizenship status.

    Two Chinese-Australians, Cheng Lei, who formerly worked for China’s state broadcaster, and writer Yang Jun, have been held since 2020 and 2019 respectively, without word on their sentencing.

    Government suspicion is particularly focused on Chinese-born foreign citizens and people from Taiwan and Hong Kong, especially if they have political contacts or work in academia or publishing.

    Under Xi, the party has launched multiple campaigns against what it calls foreign efforts to sabotage its rule, without showing evidence. Online commentary and independent information sources have been muzzled and universities ordered to censor discussions of human rights, modern Chinese history and ideas that could prompt questions about total Communist Party control.

    Xi’s government has also taken a hard line on foreign relations, most recently ordering a Canadian diplomat to leave at short notice in retaliation for Ottawa’s expulsion of a staffer at the Chinese Embassy who was accused of threatening a member of the Canadian Parliament and his family members living in Hong Kong.

    China’s leader for a decade who faces no term limits, Xi has taken a highly confrontational stance toward the U.S. and other democracies, while backing Russian President Vladimir Putin in his invasion of Ukraine and supporting other autocratic governments from Nicaragua to Myanmar.

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  • Stock market today: World shares mixed after China economic data weaker than expected

    Stock market today: World shares mixed after China economic data weaker than expected

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    European shares were trading mostly higher after a mixed session in Asia following the release of data showing China’s economy is weaker than expected, with domestic demand failing to bounce back as much as hoped for after the pandemic.

    Benchmarks rose in Paris, London and Tokyo but fell in Shanghai and Sydney. U.S. futures edged lower and oil prices logged moderate gains.

    On Tuesday, the government will report how much sales at retailers across the U.S. grew last month.

    Germany’s DAX edged 0.1% higher to 15,928.83 and in London the FTSE 100 added 0.2% to 7,788.41. The CAC 40 in Paris shed 0.1% to 7,412.41.

    The future for the S&P 500 was unchanged while that for the Dow industrials fell 0.1%.

    China’s economic recovery after the pandemic faces pressure from sluggish consumer and export demand, a government official said Tuesday, with retail sales and other activity in April weaker than expected.

    Retail sales rose 18.4% over a year earlier, up 7.8 percentage points from March, official data showed. Other indicators were mixed: Factory output rose 5.6% over a year earlier but was off 0.5% from March. Investment in factories, real estate and other fixed assets was up 4.7% in the first four months of 2023, but that was off 0.4 percentage points from the first quarter’s growth rate.

    “Today’s activity data suggest China is mired in an extended soft patch,” said Stephen Innes of SPI Asset Management in a report.

    Julian Evans-Pritchard of Capital Economics said the post-pandemic recovery was likely to “fizzle out” in the second half of the year. “Meanwhile, the challenging global picture will prevent much pick-up in Chinese exports,” he said.

    Tokyo’s Nikkei 225 index surged 0.7% to 29,842.99, continuing a climb toward its highest level since the early 1990s that has been helped by strong corporate earnings and signs that inflationary pressures might be easing.

    The Hang Seng in Hong Kong edged less than 0.1% higher, to 19,978.25, while the Shanghai Composite index lost 0.6% to 3,290.99.

    In Seoul, the Kospi was nearly unchanged at 2,480.24, while Australia’s S&P/ASX 200 slipped 0.5% to 7,234.70.

    On Monday, the S&P 500 rose 0.3% and the Dow Jones Industrial Average edged 0.1% higher. The Nasdaq composite climbed 0.7% to 12,365.21.

    The market was relatively quiet as several concerns dragged on sentiment.

    A chief one is the fear of a recession hitting later this year, mainly because of high interest rates meant to knock down inflation. Cracks in the U.S. banking system and the U.S. government’s inching toward a possible default on its debt as soon as June 1 are added worries.

    So far, a resilient job market has helped U.S. households keep up their spending despite all the pressures. That in turn has offered a powerful pillar to prop up the economy.

    Several big retailers — Home Depot on Tuesday, Target on Wednesday and Walmart on Thursday — will give updates on their earnings in the first quarter of the year.

    The majority of companies in the S&P 500 have topped expectations so far but overall they are on track to report a drop of 2.5% in earnings per share from a year earlier. That would be the second straight quarter they’ve seen profit drop, according to FactSet.

    Looming ahead is the risk of the federal government’s first-ever default if Congress doesn’t raise the credit limit set for federal borrowing.

    Most investors expect Democrats and Republicans to come to a deal, simply because the alternative would be so disastrous for both sides. U.S. Treasurys form the bedrock of the global financial system because they’re seen as the safest possible investment on the planet.

    But one worry is that politicians may not feel much urgency to reach an agreement until financial markets shake sharply to convince them of the importance.

    In other trading Tuesday, U.S. benchmark crude oil picked up 20 cents to $71.31 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.07 on Monday, to $71.11 per barrel.

    Brent crude oil, the international pricing standard, gained 24 cents to $75.47 per barrel.

    The dollar slipped to 135.75 Japanese yen from 136.12 yen. The euro rose to $1.0889 from $1.0875.

    ___

    AP Business Writer Joe McDonald contributed.

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  • Stock market today: Asian shares turn lower after China economic data weaker than expected

    Stock market today: Asian shares turn lower after China economic data weaker than expected

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    Asian shares were mostly higher on Tuesday even though the latest data showed China’s economy is weaker than expected, with domestic demand failing to bounce back as much as hoped for after the pandemic.

    Benchmarks advanced in Tokyo, Hong Kong and Seoul but fell in Shanghai and Sydney.

    China’s economic recovery after the pandemic faces pressure from sluggish consumer and export demand, a government official said Tuesday, with retail sales and other activity in April weaker than expected.

    Retail sales rose 18.4% over a year earlier, up 7.8 percentage points from March, official data showed. Other indicators were mixed: Factory output rose 5.6% over a year ago but was off 0.5% from March. Investment in factories, real estate and other fixed assets was up 4.7% in the first four months of 2023, but that was off 0.4 percentage points from the first quarter’s growth rate.

    “Today’s activity data suggest China is mired in an extended soft patch,” said Stephen Innes of SPI Asset Management in a report.

    Julian Evans-Pritchard of Capital Economics said the post-pandemic recovery was likely to “fizzle out” in the second half of the year. “Meanwhile, the challenging global picture will prevent much pick-up in Chinese exports,” he said.

    Tokyo’s Nikkei 225 index surged 0.7% to 29,842.99, continuing a climb toward its highest level since the early 1990s that has been helped by strong corporate earnings and signs that inflationary pressures might be easing.

    The Hang Seng in Hong Kong fell 0.2% to 19,945.86, while the Shanghai Composite index lost 0.5% to 3,292.99.

    In Seoul, the Kospi edged 0.1% lower, 2,477.14, while Australia’s S&P/ASX 200 slipped 0.4% to 7,240.90.

    On Monday, the S&P 500 rose 0.3% to 4,136.28 and the Dow Jones Industrial Average edged 0.1% higher, to 33,348.60. The Nasdaq composite climbed 0.7% to 12,365.21.

    Some of the sharper moves came from companies announcing takeovers of rivals, including a 9.1% drop for energy company Oneok after it said it’s buying Magellan Midstream Partners. Magellan jumped 13%.

    But market was relatively quiet as several concerns dragged on sentiment.

    A chief one is the fear of a recession hitting later this year, mainly because of high interest rates meant to knock down inflation. Cracks in the U.S. banking system and the U.S. government’s inching toward a possible default on its debt as soon as June 1 are added worries.

    So far, a resilient job market has helped U.S. households keep up their spending despite all the pressures. That in turn has offered a powerful pillar to prop up the economy. On Tuesday, the government will show how much sales at retailers across the country grew last month.

    Several big retailers — Home Depot on Tuesday, Target on Wednesday and Walmart on Thursday — will give updates on their earnings in the first quarter of the year.

    The majority of companies in the S&P 500 have topped expectations so far but overall they are on track to report a drop of 2.5% in earnings per share from a year earlier. That would be the second straight quarter they’ve seen profit drop, according to FactSet.

    Looming ahead is the risk of the federal government’s first-ever default if Congress doesn’t raise the credit limit set for federal borrowing.

    Most investors expect Democrats and Republicans to come to a deal, simply because the alternative would be so disastrous for both sides. U.S. Treasurys form the bedrock of the global financial system because they’re seen as the safest possible investment on the planet.

    But one worry is that politicians may not feel much urgency to reach an agreement until financial markets shake sharply to convince them of the importance.

    In other trading Tuesday, U.S. benchmark crude oil picked up 32 cents to $71.43 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.07 on Monday, to $71.11 per barrel.

    Brent crude oil, the international pricing standard, gained 33 cents to $75.55 per barrel.

    The dollar slipped to 136.01 Japanese yen from 136.12 yen. The euro rose to $1.0881 from $1.0875.

    ___

    AP Business Writer Joe McDonald contributed.

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  • Official: China recovery faces pressure after April activity weaker than expected

    Official: China recovery faces pressure after April activity weaker than expected

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    An official says China’s economic recovery faces pressure from sluggish consumer and export demand

    Commuters walk across an intersection during the morning rush hour in Beijing, Tuesday, May 16, 2023. China’s economic recovery faces pressure from sluggish consumer and export demand, a government official said Tuesday, after retail sales and other activity in April were weaker than expected. (AP Photo/Mark Schiefelbein)

    The Associated Press

    BEIJING — China’s economic recovery faces pressure from sluggish consumer and export demand, a government official said Tuesday, after retail sales and other activity in April were weaker than expected.

    Chinese activity accelerated while U.S. and European economic growth is cooling following interest rate hikes to extinguish inflation. But consumer spending, an important economic engine, is taking longer than expected to recover after most Chinese curbs on business activity and travel ended in December.

    “The recovery of demand is still insufficient,” said Fu Linghui, spokesperson for the National Bureau of Statistics, at a news conference. “External demand has weakened” and exporters face a “complex and severe” environment.

    Growth in retail sales accelerated to 18.4% over a year earlier in April, official data showed, but that was below private sector expectations of up to 35%.

    Factory output rose 5.6% but was off 0.5 percentage points from March. Investment in factories, real estate and other fixed assets rose 4.7% in the first four months of 2023 but slowed from the first quarter’s 5.4% growth rate.

    Economic growth accelerated to 4.5% over a year earlier in the three months ending in March from the previous quarter’s 2.9%. The economy will have to grow faster in coming quarters if it is to hit the ruling Communist Party’s annual target of “around 5%.”

    “The bulk of China‘s rebound is now behind us,” Capital Economics said in a report. “The challenging global picture will prevent much pick-up in Chinese exports.”

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  • Dozens rally against Fukushima plant water release plan

    Dozens rally against Fukushima plant water release plan

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    TOKYO — Dozens of anti-nuclear activists protested Tuesday to demand Japan scrap its plan to release treated but still radioactive water from a tsunami-damaged nuclear power plant into the sea, which may begin this summer.

    ”Don’t dump contaminated water into sea!” protesters chanted outside the Tokyo Electric Power Company Holding’s headquarters in Tokyo, holding banners with their demands such as “Don’t nuke the Pacific,” and “Stop contaminated water.”

    The utility that operates the plant wrecked in the 2011 disaster has almost finished building the needed facilities to release the massive amounts of water, which has been speculated to begin sometime after June.

    “Even after treatment, some radiation stays in the water,” said Harumichi Saito, an activist from Iwaki, a city south of the wrecked plant. “It’s a decades-long, multi-generational project that must get public consensus.”

    The tsunami and earthquake on March 11, 2011, damaged the Fukushima Daiichi plant’s cooling systems, damaging three nuclear reactors, causing their cooling water to become highly radioactive and leak into the basements of the buildings. The water is collected, treated and stored in tanks that cover much of the plant.

    The government and TEPCO say the tanks must be removed to make room for the plant’s decommissioning and to minimize the risk of leaks in case of another disaster.

    The plan has faced fierce protests from local fishing communities concerned about safety and reputational damage. Neighboring countries, including South Korea, China and the Pacific Island nations, have protested.

    Japanese officials say the water will be filtered to far below international releasable levels and further diluted by large amounts of seawater before release, making it harmless. However, some scientists say the impact of long-term, low-dose exposure to tritium and other radionuclides on the environment and people is still unknown and the release should be delayed.

    Several activists from South Korea joined Tuesday’s rally.

    “The Pacific Ocean does not belong to Japan. It belongs to all living things in the ocean and everyone who depends on it for their livelihoods,” said Kyoungsook Choi, a Korea Radiation Watch coordinator. “We are here today to send the message that Japan does not have the right to dump the radioactive water.”

    Tokyo and Seoul agreed recently for a South Korean delegation to visit the plant in late May to observe preparations for the release, as the two sides worked to improve ties strained by historical disputes.

    ___

    Associated Press journalist Chisato Tanaka contributed to this report.

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  • Cannes Film Festival kicks off Tuesday with Johnny Depp and ‘Jeanne du Barry’

    Cannes Film Festival kicks off Tuesday with Johnny Depp and ‘Jeanne du Barry’

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    CANNES, France — The Cannes red carpet springs to life again Tuesday as the 76th Cannes Film Festival gets underway with the premiere of the Louis XV period drama “Jeanne du Barry,” with Johnny Depp.

    This year’s festival promises a Cote d’Azur buffet of spectacle, scandal and cinema set to be served over the next 12 days. It’s unspooling against the backdrop of labor unrest. Protests that have roiled France in recent months over changes to its pension system are planned to run during the festival, albeit at a distance from the festival’s main hub.

    Meanwhile, an ongoing strike by screenwriters in Hollywood could have unpredictable effects on the French Riviera festival.

    But with a festival lined with some much-anticipated big-budget films, including James Mangold’s “Indiana Jones and the Dial of the Destiny” and Martin Scorsese’s “Killers of the Flower Moon,” the party is sure to go on, regardless. Stars set to hit Cannes’ red carpet in the next week and a half include Natalie Portman, Leonardo DiCaprio, Cate Blanchett, Sean Penn, Alicia Vikander, the Weeknd and Scarlett Johansson.

    The festivities Tuesday will include an opening ceremony where Michael Douglas is to receive an honorary Palme d’Or. (Later, one will also be dished out to “Indiana Jones” star Harrison Ford). The jury that will decide the festival’s top prize, the Palme d’Or, will also be introduced.

    This year, the jury is led by Swedish filmmaker Ruben Östlund, a two-time Palme winner who last year won for the social satire “The Triangle of Sadness.” The rest of the jury includes Brie Larson, Paul Dano, French director Julia Ducournau, Argentine filmmaker Damián Szifron, Afghan director Atiq Rahimi, French actor Denis Ménochet, Moroccan filmmaker Maryam Tourzani and a Zambian-Welsh director Rungano Nyoni.

    The opening night selection has attracted some controversy. “Jeanne du Barry,” directed by and co-starring the French actor-director Maïwenn, co-stars Depp as Louis XV. It’s Depp’s first new film since his trial last year with Amber Heard, his ex-wife. After both Depp and Heard accused each other of physical and verbal abuse, a civil jury awarded Depp $10 million in damages and $2 million to Heard.

    In remarks to the press Monday, Cannes director Thierry Fremaux defended the choice, saying Depp is extraordinary in the film and he paid no attention to the trial.

    “To tell you the truth, in my life, I only have one rule, it’s the freedom of thinking, the freedom of speech and the freedom to act within a legal framework,” said Fremaux. “If Johnny Depp had been banned from acting in a film, or the film was banned we wouldn’t be here talking about it.”

    ___

    For more coverage of this year’s Cannes Film Festival, visit: https://apnews.com/hub/cannes-film-festival

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  • US Virgin Islands seeks to subpoena Elon Musk in Jeffrey Epstein lawsuit

    US Virgin Islands seeks to subpoena Elon Musk in Jeffrey Epstein lawsuit

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    NEW YORK — The government of the U.S. Virgin Islands is trying to subpoena billionaire Elon Musk for documents in its lawsuit seeking to hold JPMorgan Chase liable for sex trafficking acts committed by businessman Jeffrey Epstein.

    Musk has never been publicly accused of any wrongdoing related to Epstein, who killed himself in 2019 as he awaited sex trafficking charges in a federal jail in Manhattan.

    But over the years, there had been unconfirmed speculation — encouraged by Epstein himself — that Epstein had advised Musk on certain business matters.

    Spokespeople for Musk have denied those reports, but the government of the U.S. Virgin Islands said in a court filing that it believes Epstein may have referred or tried to refer Musk to JPMorgan as a potential client.

    The Virgin Islands, where Epstein had an estate, sued JPMorgan last year, saying its investigation has revealed that the financial services giant enabled Epstein’s recruiters to pay victims and was “indispensable to the operation and concealment of the Epstein trafficking enterprise.”

    Lawyers for JPMorgan did not immediately return messages seeking comment Monday.

    In the past, they have said victims are entitled to justice but litigation attempting to blame the financial institution for Epstein’s actions were legally meritless, directed at the wrong party and should be dismissed.

    Authorities alleged that Epstein recruited and sexually abused dozens of underage girls at his mansions in New York and Palm Beach, Florida, in the early 2000s. He had pleaded not guilty.

    Lawyers for the Virgin Islands told a federal judge Monday that they haven’t been able to locate Musk to serve him with the subpoena.

    They asked the court to serve Tesla, his electric vehicle company, instead.

    They said they hired an investigative firm to search public records databases for possible addresses for Musk and reached out to one of his lawyers by email, but received no response.

    A message sent to a lawyer for Musk seeking comment Monday was not immediately returned.

    The subpoena — one of several sent to prominent business figures — sought documents from Jan. 1, 2002, to the present reflecting communications between Musk and JPMorgan or Musk and Epstein regarding Epstein or Epstein’s role in Musk’s accounts, transactions or financial management.

    It also sought all documents reflecting or regarding Epstein’s involvement in human trafficking and his procurement of girls or women for commercial sex.

    And it sought information about fees Musk might have paid to Epstein or JPMorgan and any documents concerning communications between Musk, Epstein and JPMorgan regarding accounts, transactions or the relationship at JPMorgan.

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  • US Virgin Islands seeks to subpoena Elon Musk in Jeffrey Epstein lawsuit

    US Virgin Islands seeks to subpoena Elon Musk in Jeffrey Epstein lawsuit

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    NEW YORK — The government of the U.S. Virgin Islands is trying to subpoena billionaire Elon Musk for documents in its lawsuit seeking to hold JPMorgan Chase liable for sex trafficking acts committed by businessman Jeffrey Epstein.

    Musk has never been publicly accused of any wrongdoing related to Epstein, who killed himself in 2019 as he awaited sex trafficking charges in a federal jail in Manhattan.

    But over the years, there had been unconfirmed speculation — encouraged by Epstein himself — that Epstein had advised Musk on certain business matters.

    Spokespeople for Musk have denied those reports, but the government of the U.S. Virgin Islands said in a court filing that it believes Epstein may have referred or tried to refer Musk to JPMorgan as a potential client.

    The Virgin Islands, where Epstein had an estate, sued JPMorgan last year, saying its investigation has revealed that the financial services giant enabled Epstein’s recruiters to pay victims and was “indispensable to the operation and concealment of the Epstein trafficking enterprise.”

    Lawyers for JPMorgan did not immediately return messages seeking comment Monday.

    In the past, they have said victims are entitled to justice but litigation attempting to blame the financial institution for Epstein’s actions were legally meritless, directed at the wrong party and should be dismissed.

    Authorities alleged that Epstein recruited and sexually abused dozens of underage girls at his mansions in New York and Palm Beach, Florida, in the early 2000s. He had pleaded not guilty.

    Lawyers for the Virgin Islands told a federal judge Monday that they haven’t been able to locate Musk to serve him with the subpoena.

    They asked the court to serve Tesla, his electric vehicle company, instead.

    They said they hired an investigative firm to search public records databases for possible addresses for Musk and reached out to one of his lawyers by email, but received no response.

    A message sent to a lawyer for Musk seeking comment Monday was not immediately returned.

    The subpoena — one of several sent to prominent business figures — sought documents from Jan. 1, 2002, to the present reflecting communications between Musk and JPMorgan or Musk and Epstein regarding Epstein or Epstein’s role in Musk’s accounts, transactions or financial management.

    It also sought all documents reflecting or regarding Epstein’s involvement in human trafficking and his procurement of girls or women for commercial sex.

    And it sought information about fees Musk might have paid to Epstein or JPMorgan and any documents concerning communications between Musk, Epstein and JPMorgan regarding accounts, transactions or the relationship at JPMorgan.

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  • What lies ahead for Thailand after dramatic opposition election win?

    What lies ahead for Thailand after dramatic opposition election win?

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    BANGKOK — Thailand’s opposition racked up a stunning majority of the 500 seats at stake in the race for the House of Representatives, dealing a major blow to the establishment parties and the former general who has led the Southeast Asian country since seizing power in a 2014 coup.

    The results of Sunday’s general election are a strong repudiation of the country’s conservatives and reflect the disenchantment in particular of young voters who want to limit the influence of the military in politics and reform the monarchy.

    But the exact shape of the new government is less clear as post-election coalition talks and behind-the-scene negotiations take center stage.

    THE RESULTS

    With almost all votes counted Monday, the Move Forward Party emerged as the big winner. It captured a projected 151 seats in the lower House by winning over 24% of the popular vote for 400 constituency seats, and more than 36% of the 100 seats allocated by proportional representation.

    Tailing a close second is the main opposition Pheu Thai Party, whose combined seat total is projected at 141.

    The party of incumbent Prime Minister Prayuth Chan-ocha, a former army general who came to power in the 2014 coup, held the fifth spot in the constituency vote and third in the party-preference tally, for a projected total of 36 seats.

    Voter turnout was about 75% of the 52 million registered voters.

    WHAT NEXT?

    Who becomes the next prime minister will depend on a vote set for July that includes all the House lawmakers plus the 250-seat military-appointed Senate, whose members share the establishment’s conservative policies. The winner must attain at least 376 of their combined 750 seats.

    Opposition parties have criticized the process as undemocratic. It’s a legacy of the 2014 coup and a new constitution drafted in its aftermath that was meant to ensure that the military and the state bureaucracy, the main upholders of the royal order, continue to hold sway.

    Analysts have pointed out that a lot can still happen before the Election Commission even declares the results valid, a process that can take up to 75 days and will almost certainly include legal challenges.

    In the past, the commission and the courts have used their authority to disqualify opposition parties.

    WHAT THE OPPOSITION WANTS?

    Move Forward leader Pita Limjaroenrat tweeted that he is ready to bring about change as the country’s 30th prime minister.

    “Whether you agree or disagree with me, I will be your prime minister. Whether you have voted for me or not, I will serve you,” he wrote.

    Although he energized younger voters with his progressive agenda, the 42-year-old businessman has alarmed conservatives with calls for reform of the monarchy, the institution that has been traditionally treated as sacrosanct.

    In 2019, the Constitutional Court ousted his colleague from Parliament on charges of violating the election law and dissolved the Future Forward party, which then changed its name and leadership to become Move Forward.

    It had been supporting amending the draconian law that punishes defaming the monarchy, which according to critics has been used to as a tool to quash political dissent and imprison pro-democracy student activists.

    Student-led protests beginning in 2020 openly criticized the monarchy, previously a taboo subject, leading to vigorous prosecutions under the law. They were also dismayed by the dissolution of the Future Forward party, which they believed was an unfair use of state power.

    THAKSIN’S SHADOW

    Pheu Thai is led by Paetongtarn Shinawatra, the 36-year-old daughter of billionaire former Prime Minister Thaksin Shinawatra who was toppled in a 2006 coup.

    The power struggle between Thaksin’s supporters, many of them rural poor who benefited from his populist policies, and his conservative opponents has been fought — sometimes in the street, sometimes at the ballot box — for almost two decades.

    In the 2014 coup, Prayuth unseated the government of Yingluck Shinawatra — Paetongtarn’s aunt, Thaksin’s sister — as prime minister. And Pheu Thai topped the field in the 2019 vote, only to be denied power when the army-backed Palang Pracharath Party found partners to assemble a coalition government.

    Thaksin, 73, said before Sunday’s vote that he wants to return to Thailand from self-exile, even if it means facing justice, including several convictions on charges including abuse of power and corruption.

    ___

    Hranjski reported from Zagreb, Croatia.

    ___

    Find more of AP’s Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

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  • UN chief in Jamaica urges international response to Haiti’s spiraling crisis

    UN chief in Jamaica urges international response to Haiti’s spiraling crisis

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    SAN JUAN, Puerto Rico — U.N. Secretary General António Guterres warned Monday that Haiti’s “tragic situation” is threatening the security of the Caribbean region and beyond as he pressed the international community for a response.

    Guterres spoke after meeting behind closed doors with Jamaican Prime Minister Andrew Holness in his first visit to the island, which comes more than three months after Holness announced that his government was willing to send soldiers and police officers to Haiti as part of a proposed international armed forces deployment.

    Guterres noted that no other country has stepped forward despite the plea from Haiti’s prime minister and other top officials last October for the immediate deployment of an international force to fight a surge in gang violence.

    “We are kind of in a stalemate right now,” he said, adding that it’s been difficult to mobilize the will of countries who could best lead such an operation.

    Holness, who visited Haiti in February as part of a regional push to help mediate the country’s crisis, said countries that would support such a deployment want to first see political consensus in Haiti and a timeframe for ending the proposed deployment.

    “It is not that our pleas have fallen on deaf ears,” he said. “It is being heard to and listened to. The question is the pace of action.”

    Haiti’s capital and surrounding areas have largely succumbed to warring gangs that have invaded neighborhoods and killed people in a fight to control more territory, with the U.N. estimating that they now control up to 80% of Port-au-Prince.

    The violence has worsened since the July 2021 assassination of President Jovenel Moïse. More than 840 people were killed in the first three months of this year, in addition to more than 600 people slain in the month of April alone, according to the U.N. More than 400 people also have been kidnapped so far this year.

    “You have dramatic humanitarian needs. You have a political system that is paralyzed, and you have levels of violence by gangs that are absolutely appalling,” Guterres said.

    He previously said that insecurity in Haiti had reached “levels comparable to countries in armed conflict.”

    The deaths have prompted a growing number of angry and frustrated Haitians to unleash gruesome vigilante justice, lynching at least 164 alleged gang members last month, according to the U.N.

    Frantz Elbé, director of Haiti’s National Police, said in a video posted on social media Saturday that officers are fighting gangs, seizing weapons and releasing hostages, but he did not provide any figures.

    The U.N. has noted that just over 13,000 officers are on active duty in a country of more than 11 million people, with at least 21 police officers reported killed in the first three months of this year.

    “I want to once again ask the international community to understand that an effective solidarity with Haiti is not only a matter of generosity,” Guterres said. “It’s essentially a matter of enlightened self-interest because the present situation in Haiti reflects a threat, a threat to the security of the whole region and further afield.”

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  • Fire at New Zealand hostel kills at least 6 people, prime minister says

    Fire at New Zealand hostel kills at least 6 people, prime minister says

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    WELLINGTON, New Zealand — A fire ripped through a hostel in New Zealand’s capital overnight, killing at least six people and forcing others to flee the four-story building in their pajamas in what a fire chief on Tuesday called his “worst nightmare.”

    Fifty-two people in the Loafers Lodge hostel in Wellington had been accounted for, but firefighters were still looking for others, said Wellington Fire and Emergency District Manager Nick Pyatt. He said they were called to the hostel at about 12:30 a.m.

    Prime Minister Chris Hipkins told the AM morning news program that he understood that six people were confirmed dead and the number of fatalities would likely rise. Police said they did not have an exact count of the number of dead, although they believe the total number of fatalities was less than 10.

    Hipkins said he was planning to visit the site Tuesday morning. He said the building was not currently safe for police to enter and it could take authorities some time to confirm the number of dead.

    “It is an absolute tragedy. It is a horrific situation,” Hipkins told reporters. “In the fullness of time, of course, there will be a number of investigations about what has happened and why it happened. But for now, the focus clearly has to be on dealing with the situation.”

    Responding to comments from emergency officials that the building had no fire sprinklers, Hipkins said it was not currently a requirement of New Zealand’s building code for older buildings to be retrofitted with sprinkler systems.

    Pyatt, the fire chief, said his thoughts were with the families of those who had perished and with the crews who had rescued those they could and tried to rescue those they couldn’t.

    “This is our worst nightmare,” Pyatt said. “It doesn’t get worse than this.”

    Police said the cause of the fire was not immediately known,

    Wellington City Council spokesman Richard MacLean said city officials were helping about 50 people who escaped the fire and were at an emergency center the council set up at a local running track facility that had showers and other facilities.

    He said a number of elderly people had escaped the building with only the pajamas they were wearing.

    “A lot are clearly shaken and bewildered about what happened,” he said.

    The hostel provided a combination of short-term and long-term rentals, MacLean said. He didn’t have all the details, he said, but he believed it was used by various government agencies to provide clients with needed accommodation.

    Loafers Lodge advertises itself as an affordable place for people to stay while they are in the capital, whether on business or needing to visit the nearby Wellington Hospital. It has 92 rooms and promotes them as being available long term.

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  • Nigerian chef cooks nonstop for 100 hours to set new global record

    Nigerian chef cooks nonstop for 100 hours to set new global record

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    ABUJA, Nigeria — A Nigerian chef on Monday set a new global record for the longest hours nonstop cooking as she cooked for 100 hours, surpassing the current record.

    Hilda Baci had been cooking since last week Thursday when she set out to beat the Guinness World Record of 87 hours and 45 minutes set in 2019 by Lata Tondon, an Indian chef.

    At around 19:45 GMT on Monday, Baci cooked for the 100th hour in the Lekki area of Lagos, Nigeria’s commercial hub, to become a national sensation in the West African nation. Thousands who gathered at the scene jubilated and sang her praises as she stopped cooking a few minutes after.

    The Guinness World Records tweeted it was aware of the chef’s attempt to break the cooking record. “We need to review all the evidence first before officially confirming a record,” the global brand said.

    By attempting to beat the record, the Nigerian chef said Thursday she wanted to show how hardworking and determined Nigerian youths are and also as a campaign for young African women who are sidelined in society.

    “Even when it comes to the brands you want to work with, it is like you have to go an extra mile to be taken seriously,” said Baci, adding that she hoped too that the world would learn more about Nigerian cuisines.

    At 15:00 GMT on Thursday, she started to cook dozens of Nigerian delicacies under supervision, ranging from soups to stew and various proteins. Jollof rice, one of the most iconic West African dishes, also featured on the menu.

    She has had only five-minute breaks every hour or an accumulated one hour after a stretch of 12 hours for everything else, from bathing to medical checkups and resting.

    As thousands of locals and celebrities cheered her on at the scene through day and night, many more monitored online via several streaming platforms.

    After she surpassed the current cooking record, President Muhammadu Buhari tweeted that Monday was a great day for Nigeria. “Hilda’s drive, ambition and resilience have brought great interest and insight into the uniqueness of Nigerian food,” said Buhari.

    As Baci neared the 100-hour mark, Kingsley Ofoma at the scene said he never doubted her to surpass the global record. “The energy here is very high and positive; everybody is having fun,” he said. “So eating her food free of charge is not even the best of it.”

    ___

    Dan Ikpoyi in Lagos, Nigeria contributed.

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  • Cannes director defends festival after Adèle Haenel slams French film industry’s #MeToo response

    Cannes director defends festival after Adèle Haenel slams French film industry’s #MeToo response

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    CANNES, France — After one of France’s top actors, Adèle Haenel, announced she was quitting a French film industry that she denounced for “complacency toward sexual aggressors,” Cannes Film Festival chief Thierry Fremaux rejected her criticisms while addressing members of the media Monday.

    Haenel, star of the 2019 Cannes entry “Portrait of a Lady on Fire,” last week published an open letter in the Telerama magazine in which the 34-year-old said Cannes and other pillars of the French film industry are “ready to do anything to defend their rapist chiefs.”

    Fremaux strongly disagreed while speaking to journalists before the festival kicks off Tuesday with the premiere of Maïwenn’s historical drama “Jeanne du Barry,” starring Johnny Depp.

    “No doubt for somewhat radical reasons, she had to make this comment about Cannes, which was obviously false,” said Fremaux.

    In 2019, Haenel accused French director Christophe Ruggia of sexually harassing her for years beginning from the age of 12. Ruggia has denied it. Since then, Haenel has often vocally protested what she’s called an insufficient response sexual abuse in French filmmaking. At the César Awards in 2020, she walked out of the ceremony after Roman Polanski won best director.

    In his remarks, Fremaux only specifically addressed Haenel’s criticism of Cannes. When she came to the festival with Celine Sciamma’s “Portrait of a Lady on Fire,” he said: “She didn’t think that when she came to Cannes unless she suffered from a crazy dissonance.

    “The proof is that if you believed it, you would not be here, listening to me now, taking your accreditations and complaining about the press screenings for a festival of rapists,” Fremaux said the gathered reporters.

    How the #MeToo movement has reverberated in Cannes, one of the world’s oldest and most glamorous film festivals, has been a subject of debate. Harvey Weinstein was for years a prominent presence in Cannes, and some of the incidents of sexual abuse alleged against the producer took place during the festival.

    Cannes also has traditionally had a low rate of female filmmakers in its prestigious competition lineup, where only two female directors have won the Palme d’Or: Jane Campion in 1993 with “The Piano” and Julia Ducournau in 2021 with “Titane.” In 2018, 82 women led a protest on the Cannes red carpet. The following year, Fremaux bowing to pressure, signed a pledge promising to strive toward greater gender parity.

    Fremaux acknowledged that the festival once had a problem in gender inclusivity. “Maybe I was clumsy,” he said. This year, there are a record seven films directed by women out of the 21 movies in competition, which he said reflects the growing prominence of female filmmakers around the world.

    Now, he added, “when we hesitate between a film made by a man or a film made by a women, we’ll select the film made by the woman. But only when we hesitate.

    “This all denotes progress,” said Fremaux.

    At the same time, Cannes has sometimes been accused of being too welcoming to some of the men who have been accused of misconduct. Polanski returned to the festival in 2017. This year, some had been expecting Woody Allen’s latest film to premiere in Cannes but it didn’t make the lineup. Asked about it, Fremaux said he would only address films in the selection.

    Fremaux was, though, questioned about the selection of “Jeanne du Barry” as the opening night film. The film, which co-stars Maïwenn, is Depp’s first since his high-profile trial with Amber Heard, his ex-wife. After both Depp and Heard accused each other of physical and verbal abuse, a civil jury awarded Depp $10 million in damages and $2 million to Heard. In December, they reached a settlement.

    “To tell you the truth, in my life, I only have one rule, it’s the freedom of thinking, the freedom of speech and the freedom to act within a legal framework,” said Fremaux. “If Johnny Depp had been banned from acting in a film, or the film was banned we wouldn’t be here talking about it.”

    ___

    For more coverage of this year’s Cannes Film Festival, visit: https://apnews.com/hub/cannes-film-festival

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  • Cannes director defends festival after Adèle Haenel slams French film industry’s #MeToo response

    Cannes director defends festival after Adèle Haenel slams French film industry’s #MeToo response

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    CANNES, France — After one of France’s top actors, Adèle Haenel, announced she was quitting a French film industry that she denounced for “complacency toward sexual aggressors,” Cannes Film Festival chief Thierry Fremaux rejected her criticisms while addressing members of the media Monday.

    Haenel, star of the 2019 Cannes entry “Portrait of a Lady on Fire,” last week published an open letter in the Telerama magazine in which the 34-year-old said Cannes and other pillars of the French film industry are “ready to do anything to defend their rapist chiefs.”

    Fremaux strongly disagreed while speaking to journalists before the festival kicks off Tuesday with the premiere of Maïwenn’s historical drama “Jeanne du Barry,” starring Johnny Depp.

    “No doubt for somewhat radical reasons, she had to make this comment about Cannes, which was obviously false,” said Fremaux.

    In 2019, Haenel accused French director Christophe Ruggia of sexually harassing her for years beginning from the age of 12. Ruggia has denied it. Since then, Haenel has often vocally protested what she’s called an insufficient response sexual abuse in French filmmaking. At the César Awards in 2020, she walked out of the ceremony after Roman Polanski won best director.

    In his remarks, Fremaux only specifically addressed Haenel’s criticism of Cannes. When she came to the festival with Celine Sciamma’s “Portrait of a Lady on Fire,” he said: “She didn’t think that when she came to Cannes unless she suffered from a crazy dissonance.

    “The proof is that if you believed it, you would not be here, listening to me now, taking your accreditations and complaining about the press screenings for a festival of rapists,” Fremaux said the gathered reporters.

    How the #MeToo movement has reverberated in Cannes, one of the world’s oldest and most glamorous film festivals, has been a subject of debate. Harvey Weinstein was for years a prominent presence in Cannes, and some of the incidents of sexual abuse alleged against the producer took place during the festival.

    Cannes also has traditionally had a low rate of female filmmakers in its prestigious competition lineup, where only two female directors have won the Palme d’Or: Jane Campion in 1993 with “The Piano” and Julia Ducournau in 2021 with “Titane.” In 2018, 82 women led a protest on the Cannes red carpet. The following year, Fremaux bowing to pressure, signed a pledge promising to strive toward greater gender parity.

    Fremaux acknowledged that the festival once had a problem in gender inclusivity. “Maybe I was clumsy,” he said. This year, there are a record seven films directed by women out of the 21 movies in competition, which he said reflects the growing prominence of female filmmakers around the world.

    Now, he added, “when we hesitate between a film made by a man or a film made by a women, we’ll select the film made by the woman. But only when we hesitate.

    “This all denotes progress,” said Fremaux.

    At the same time, Cannes has sometimes been accused of being too welcoming to some of the men who have been accused of misconduct. Polanski returned to the festival in 2017. This year, some had been expecting Woody Allen’s latest film to premiere in Cannes but it didn’t make the lineup. Asked about it, Fremaux said he would only address films in the selection.

    Fremaux was, though, questioned about the selection of “Jeanne du Barry” as the opening night film. The film, which co-stars Maïwenn, is Depp’s first since his high-profile trial with Amber Heard, his ex-wife. After both Depp and Heard accused each other of physical and verbal abuse, a civil jury awarded Depp $10 million in damages and $2 million to Heard. In December, they reached a settlement.

    “To tell you the truth, in my life, I only have one rule, it’s the freedom of thinking, the freedom of speech and the freedom to act within a legal framework,” said Fremaux. “If Johnny Depp had been banned from acting in a film, or the film was banned we wouldn’t be here talking about it.”

    ___

    For more coverage of this year’s Cannes Film Festival, visit: https://apnews.com/hub/cannes-film-festival

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  • Microsoft’s bid to buy Activision Blizzard clears a key hurdle. But the $69B deal is still at risk

    Microsoft’s bid to buy Activision Blizzard clears a key hurdle. But the $69B deal is still at risk

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    LONDON — The European Union on Monday approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the U.S. tech company’s remedies to boost competition in cloud gaming.

    But the blockbuster deal is still in jeopardy because British regulators have rejected it and U.S. authorities are trying to thwart it.

    The acquisition, sweetened by Microsoft’s promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.

    The commission’s approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the U.K.’s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia.

    The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.

    Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.

    Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.

    Following its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.

    The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.

    The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.

    The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement.

    Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.

    Activision games aren’t available on cloud services, but the commission noted that the licensing commitments could expand the cloud gaming market “by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before.”

    The EU decision might help Microsoft’s chances as it faces down regulators in the U.S., where the Federal Trade Commission is taking the company to court to block the deal. A trial before the FTC’s in-house judge set to begin Aug. 2.

    But Brussels’ approval is at odds with the stance taken by British antitrust regulators, who last month upended the biggest tech deal in history over concerns it would hurt competition in the small but rapidly growing cloud gaming market.

    Britain’s Competition and Markets Authority said in a statement Monday that it “stands by its decision,” an unusual move that highlights the more muscular approach London has taken.

    “Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years,” authority chief executive Sarah Cardell said. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”

    The companies are appealing the U.K. decision to a tribunal, but history doesn’t bode well.

    The watchdog previously denied Facebook parent Meta’s purchase of Giphy over concerns it would limit innovation and competition. The social media giant was ultimately forced to sell off the GIF-sharing platform after it lost an appeal.

    If Microsoft’s appeal fails, the company would be forced to either scrap the deal or carve out the U.K. as a separate market, which appeared to be an unfeasible option, said Deane, the game analyst.

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  • EU backs Microsoft buying Call of Duty maker Activision Blizzard. But the $69B deal is still at risk

    EU backs Microsoft buying Call of Duty maker Activision Blizzard. But the $69B deal is still at risk

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    LONDON — The European Union on Monday approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the U.S. tech company’s remedies to boost competition in cloud gaming.

    But the blockbuster deal is still in jeopardy because British regulators have rejected it and U.S. authorities are trying to thwart it.

    The acquisition, sweetened by Microsoft’s promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.

    The commission’s approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the U.K.’s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia.

    The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.

    Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.

    Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.

    Following its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.

    The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.

    The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.

    The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement.

    Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.

    Activision games aren’t available on cloud services, but the commission noted that the licensing commitments could expand the cloud gaming market “by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before.”

    The EU decision might help Microsoft’s chances as it faces down regulators in the U.S., where the Federal Trade Commission is taking the company to court to block the deal. A trial before the FTC’s in-house judge set to begin Aug. 2.

    But Brussels’ approval is at odds with the stance taken by British antitrust regulators, who last month upended the biggest tech deal in history over concerns it would hurt competition in the small but rapidly growing cloud gaming market.

    Britain’s Competition and Markets Authority said in a statement Monday that it “stands by its decision,” an unusual move that highlights the more muscular approach London has taken.

    “Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years,” authority chief executive Sarah Cardell said. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”

    The companies are appealing the U.K. decision to a tribunal, but history doesn’t bode well.

    The watchdog previously denied Facebook parent Meta’s purchase of Giphy over concerns it would limit innovation and competition. The social media giant was ultimately forced to sell off the GIF-sharing platform after it lost an appeal.

    If Microsoft’s appeal fails, the company would be forced to either scrap the deal or carve out the U.K. as a separate market, which appeared to be an unfeasible option, said Deane, the game analyst.

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  • Stock market today: Wall Street is mixed ahead of updates on U.S. shoppers

    Stock market today: Wall Street is mixed ahead of updates on U.S. shoppers

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    NEW YORK — Wall Street is drifting Monday ahead of reports that will show how much a slowing economy is hurting what’s prevented a recession so far: solid spending by U.S. households.

    The S&P 500 was virtually unchanged in its first trading after closing out a second straight down week. The Dow Jones Industrial Average was edging down 19 points, or 0.1%, to 33,280, as of 11 a.m. Eastern time, while the Nasdaq composite was 0.1% higher.

    Some of the sharper moves came from companies announcing takeovers of rivals, including a 6.3% drop for energy company Oneok after it said it’s buying Magellan Midstream Partners. Magellan jumped 15.5%. But the larger market was relatively quiet as several concerns continue to drag on Wall Street.

    Chief among them is the fear of a recession hitting later this year, in large part because of high interest rates meant to knock down inflation. But concerns are also rising about cracks in the U.S. banking system and the U.S. government’s inching toward a possible default on its debt as soon as June 1, which economists warn could be catastrophic.

    So far, a resilient job market has helped U.S. households keep up their spending despite all the pressures. That in turn has offered a powerful pillar to prop up the economy. On Tuesday, the government will show how much sales at retailers across the country grew last month.

    Several big retailers will also show how much profit they made individually during the first three months of the year, including Home Depot on Tuesday, Target on Wednesday and Walmart on Thursday.

    They’re among the few companies left who have yet to report their results for the start of the year. The majority of companies in the S&P 500 have topped expectations so far, though the bar was set particularly low for them coming in.

    S&P 500 companies are still on track to report a drop of 2.5% in earnings per share from a year earlier. That would be the second straight quarter they’ve seen profit drop, according to FactSet.

    As earnings reports slide out of the spotlight, the U.S. government’s debt-ceiling negotiations are shoving in. The federal government is risking its first-ever default if Congress doesn’t raise the credit limit set for federal borrowing.

    Democrats and Republicans are arguing about whether an increase should be tied to cuts in government spending, and talks are continuing.

    Most of Wall Street expects the two sides to come to a deal after loudly complaining about it, simply because the alternative would be so disastrous for both sides. U.S. Treasurys form the bedrock of the global financial system because they’re seen as the safest possible investment on the planet.

    But one worry is that politicians may not feel much urgency to come to an agreement until financial markets shake sharply to convince them of the importance.

    “A debt default may not be the most likely scenario, but any prolonged debate or unexpected development has the potential to trigger higher volatility,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

    In the bond market, Treasury yields rose after taking a brief dip following another discouraging report on the U.S. manufacturing industry. A survey of manufacturers in New York state plunged by much more than economists expected.

    The yield on the 10-year Treasury climbed back to 3.50%, up from 3.46% late Friday. It helps set rates for mortgages and other loans.

    The two-year Treasury yield, which more closely tracks expectations for the Fed, ticked up to 4.00% from 3.99%.

    High interest rates have meant particular pain for some smaller- and mid-sized banks. Customers are leaving to park their deposits in money-market funds and other options that are paying higher yields. High rates are meanwhile knocking down the value of investments that banks made when rates were lower.

    The pressures have already caused three high-profile bank failures since March, and Wall Street has been on the hunt for other potential weak links.

    Several were holding a bit steadier Monday after dropping sharply last week. PacWest Bancorp. rose 7.5% after losing 21% last week, for example.

    In markets abroad, Japan’s Nikkei 225 gained 0.8% and is near its highest level since the early 1990s. It’s climbed on strong corporate earnings reports and signs that inflationary pressures might be easing.

    Over the weekend, finance ministers of the Group of Seven advanced economies wrapped up a meeting in Japan with a call for vigilance given many uncertainties for the global economy.

    However, they also said financial systems have shown resilience despite recent failures of several banks in the U.S. and Europe. No mention was made of the urgency of resolving the debt ceiling standoff between President Joe Biden and Republicans.

    ___

    AP Business Writers Elaine Kurtenbach and Matt Ott contributed.

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  • Stock market today: Wall Street is mixed ahead of updates on U.S. shoppers

    Stock market today: Wall Street is mixed ahead of updates on U.S. shoppers

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    NEW YORK — Wall Street is drifting Monday ahead of reports that will show how much a slowing economy is hurting what’s prevented a recession so far: solid spending by U.S. households.

    The S&P 500 was virtually unchanged in its first trading after closing out a second straight down week. The Dow Jones Industrial Average was edging down 19 points, or 0.1%, to 33,280, as of 11 a.m. Eastern time, while the Nasdaq composite was 0.1% higher.

    Some of the sharper moves came from companies announcing takeovers of rivals, including a 6.3% drop for energy company Oneok after it said it’s buying Magellan Midstream Partners. Magellan jumped 15.5%. But the larger market was relatively quiet as several concerns continue to drag on Wall Street.

    Chief among them is the fear of a recession hitting later this year, in large part because of high interest rates meant to knock down inflation. But concerns are also rising about cracks in the U.S. banking system and the U.S. government’s inching toward a possible default on its debt as soon as June 1, which economists warn could be catastrophic.

    So far, a resilient job market has helped U.S. households keep up their spending despite all the pressures. That in turn has offered a powerful pillar to prop up the economy. On Tuesday, the government will show how much sales at retailers across the country grew last month.

    Several big retailers will also show how much profit they made individually during the first three months of the year, including Home Depot on Tuesday, Target on Wednesday and Walmart on Thursday.

    They’re among the few companies left who have yet to report their results for the start of the year. The majority of companies in the S&P 500 have topped expectations so far, though the bar was set particularly low for them coming in.

    S&P 500 companies are still on track to report a drop of 2.5% in earnings per share from a year earlier. That would be the second straight quarter they’ve seen profit drop, according to FactSet.

    As earnings reports slide out of the spotlight, the U.S. government’s debt-ceiling negotiations are shoving in. The federal government is risking its first-ever default if Congress doesn’t raise the credit limit set for federal borrowing.

    Democrats and Republicans are arguing about whether an increase should be tied to cuts in government spending, and talks are continuing.

    Most of Wall Street expects the two sides to come to a deal after loudly complaining about it, simply because the alternative would be so disastrous for both sides. U.S. Treasurys form the bedrock of the global financial system because they’re seen as the safest possible investment on the planet.

    But one worry is that politicians may not feel much urgency to come to an agreement until financial markets shake sharply to convince them of the importance.

    “A debt default may not be the most likely scenario, but any prolonged debate or unexpected development has the potential to trigger higher volatility,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

    In the bond market, Treasury yields rose after taking a brief dip following another discouraging report on the U.S. manufacturing industry. A survey of manufacturers in New York state plunged by much more than economists expected.

    The yield on the 10-year Treasury climbed back to 3.50%, up from 3.46% late Friday. It helps set rates for mortgages and other loans.

    The two-year Treasury yield, which more closely tracks expectations for the Fed, ticked up to 4.00% from 3.99%.

    High interest rates have meant particular pain for some smaller- and mid-sized banks. Customers are leaving to park their deposits in money-market funds and other options that are paying higher yields. High rates are meanwhile knocking down the value of investments that banks made when rates were lower.

    The pressures have already caused three high-profile bank failures since March, and Wall Street has been on the hunt for other potential weak links.

    Several were holding a bit steadier Monday after dropping sharply last week. PacWest Bancorp. rose 7.5% after losing 21% last week, for example.

    In markets abroad, Japan’s Nikkei 225 gained 0.8% and is near its highest level since the early 1990s. It’s climbed on strong corporate earnings reports and signs that inflationary pressures might be easing.

    Over the weekend, finance ministers of the Group of Seven advanced economies wrapped up a meeting in Japan with a call for vigilance given many uncertainties for the global economy.

    However, they also said financial systems have shown resilience despite recent failures of several banks in the U.S. and Europe. No mention was made of the urgency of resolving the debt ceiling standoff between President Joe Biden and Republicans.

    ___

    AP Business Writers Elaine Kurtenbach and Matt Ott contributed.

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