WSJ : Telegram Founder Was Wooed and Targeted by Governments

Telegram Founder Was Wooed and Targeted by Governments
Pavel Durov had lunch with the French president six years ago. His phone was hacked the previous year by French and U.A.E. spies.

Six years before Pavel Durov landed in a French holding cell, the antiestablishment founder of the messaging app Telegram was in a very different position in France: having lunch with President Emmanuel Macron.

At the lunch in 2018, which hasn’t been previously reported, Macron invited the Russian-born Durov to move Telegram to Paris, people familiar with the discussions said. Durov declined at the time. The French leader even discussed granting French citizenship to him, one of the people said.

On Saturday, French authorities detained Durov in an investigation that poses the most serious threat to the antiauthority ethos of Telegram since the app was founded in 2013. His arrest has brought into sharp focus the fraught relationships the 39-year-old Durov has had with governments around the world, which have attempted to both woo and control him, often failing at both.

In 2017, the year before the meeting with Macron, French spies targeted Durov in a joint operation with the United Arab Emirates that hacked his iPhone, according to people familiar with the matter. The spy operation, which also hasn’t been previously reported, was code-named “Purple Music,” the people said. French security officials were acutely concerned about Islamic State’s use of Telegram to recruit operatives and plan attacks.

Governments have targeted Durov because of the groups that were drawn to his app, which range from pro-democracy demonstrators and dissidents to Islamist militants, drug traffickers and cybercriminals.

For years, the company ignored subpoenas and court orders sent by law-enforcement authorities, which piled up in a rarely checked company email address, according to a person close to Durov.

Telegram says it now complies with the European Union’s Digital Services Act, which requires online companies to cooperate with authorities in countering the spread of illegal content on their platforms.

This week, the Paris prosecutor’s office said Durov was detained as part of an investigation into whether platforms are enabling online criminality, including the exchange of child pornography, drug trafficking and the sale of unauthorized encryption software. Investigators are examining whether online platforms are breaking French law by refusing to cooperate with authorities in countering illegal content.

Prosecutors said they haven’t named Durov or anyone else as a target in their investigation.

While there is no indication that those earlier discussions with Macron or the hacking of Durov’s phone played a role in his detention, the details shed new light on Durov’s long and complicated relationship with France and the U.A.E.

France and the U.A.E. granted Durov citizenship in 2021, and the Gulf country invested more than $75 million into his platform that year.

Durov, by his own account, fought to keep governments from controlling Telegram while cultivating his personal image as an iconoclast. He became a hero to internet libertarians such as Elon Musk and Edward Snowden, who rallied to his defense when he was detained Saturday. Durov has used his own profile on the app to paint a colorful portrait of his life.

In a post last month, he said he was a multinational sperm donor and had fathered more than 100 children for couples in 12 countries. He recently posted a series of photos of himself shirtless on his Instagram account, including a dip into an ice bath.

“Fearless curiosity drives innovation,” he wrote in one post, followed by: “The best way to start a day is a few minutes in 0⁰C water mixed with ice.”

Durov gained early fame in Russia as a tech entrepreneur with a libertarian streak. His political leanings and interest in encrypted-messaging systems made him an irritant to Russian and Western security services alike.

In 2006, he started a Facebook-like media site, VKontakte, which quickly gained traction as a useful channel for members of Russia’s political opposition. The Kremlin demanded information about VKontakte’s users, which Durov resisted. By 2011, the site had become a tool for critics of Vladimir Putin to organize mass protests to challenge his rule. The Kremlin began pressuring Durov to sell VKontakte to a confidant of Putin, Igor Sechin. Durov resisted the sale.

Durov was already working on a new messaging app that would later morph into Telegram. Durov described it as a platform with servers spread around the world that would be essential for anyone trying to evade government surveillance.

Durov eventually left Russia in 2014, saying he faced pressure from the Kremlin to disclose communications of Ukrainian protesters. “Providing personal data of Ukrainians to Russian authorities would not only be a violation of the law, but also a betrayal of all those millions of Ukrainians who trusted us,” he wrote on VKontakte.

Afterward, one of VKontakte’s biggest shareholders said Durov was no dissident but a thief, claiming he embezzled money from the company to develop Telegram. Durov has denied the claims.

He then hopscotched between the Middle East, Europe and the Americas, accumulating passports along the way. In addition to France and the U.A.E., Durov has citizenship in St. Kitts and Nevis, a Caribbean island nation that offers it to those who can pay. He eventually based Telegram in the U.A.E.

The French passport allowed him to move freely in Europe, including on a bike trip last year to Normandy, according to his social-media posts. He traveled to the U.S. several times, the entrepreneur told the former Fox News host Tucker Carlson this year, adding that he is always greeted by Federal Bureau of Investigation agents at the airport and elsewhere, trying to obtain his cooperation.

“My understanding is they wanted to establish a relationship to, in a way, control Telegram better,” Durov said.

The FBI declined to comment.

French authorities took him into custody Saturday night after his private jet landed at Le Bourget Airport, north of Paris. Under French law, authorities have 96 hours, or until Wednesday evening, to question Durov before releasing him or charging him with a crime.

Despite the 2018 visit with Macron, French authorities long viewed Telegram with suspicion. A former French intelligence official from France’s General Directorate for Internal Security said that compromising Telegram had been a long-term effort of the country’s spy services, but didn’t comment on the hacking operation against Durov.

France’s new hard line reflects growing concern, particularly in Europe, about the threat that big digital companies pose to society. Authorities worry that Telegram, X, TikTok and other platforms are spreading misinformation, fueling antisemitism and racism and tolerating illegal commerce on their platforms. A French law signed this year requires online platforms to cooperate with authorities in rooting out such content.

That law is mirrored by the EU’s Digital Services Act, which subjects “very large” online platforms to enhanced monitoring and enforcement. Telegram said this week that it is still below the threshold of 45 million active monthly users in the bloc to be considered very large.

Durov spent years dodging the Kremlin and Western intelligence agencies. The importance of Telegram only grew during that time, particularly since Russia invaded Ukraine in 2022. Russians and Ukrainians rely on the app for news from the front, while authorities on both sides use its channels to broadcast their narratives about the war.

A Kremlin spokesman, Dmitry Peskov, told reporters Tuesday that the case against Durov could be considered to be political and a direct attempt to restrict freedom of communication, if France doesn’t present serious evidence of Durov’s guilt.

“The Kremlin has reconciled itself to Telegram at this point,” said Thomas Graham, a distinguished fellow at the Council on Foreign Relations, adding that it was ironic that the Kremlin had pivoted to voicing outrage about Durov’s arrest after trying to shutter the app a few years ago.

In his current home in the U.A.E., where political freedoms are sharply curtailed, Durov’s antiestablishment bent seems to be an odd fit. Telegram voice calls, like those of most internet calling apps, are blocked in the U.A.E., which sees encrypted calls as a security risk. Durov would occasionally have to apologize to callers when Telegram calls failed, trying out a few rival apps before finding one that might work, according to a person close to him.

U.A.E. officials didn’t immediately respond to requests for comment. In a statement after Durov’s arrest, the U.A.E. said it was closely following the case and submitted a request to France to provide him with consular services.

FT : Chinese EV maker Xpeng unveils $20,000 car with self-driving features

Chinese EV maker Xpeng unveils $20,000 car with self-driving features
Carmaker acquired project from ride-hailing giant Didi as it retrenched during Beijing’s tech crackdown

Chinese carmaker Xpeng has launched a low-priced electric vehicle based on technology sifted from the ashes of ride-hailing group Didi’s thwarted efforts to break into the country’s highly competitive automotive sector.

The Mona M03 saloon, based on an unfinished car project Didi sold to Xpeng for HK$5.84bn ($744mn) last year, features a Tesla-like button-free dashboard and an artificial intelligence-powered self-driving system.

With a starting price of just Rmb119,800 ($16,800), half that of Tesla’s Model 3 standard version, the M03 is competing against the US EV manufacturer and models offered by Chinese domestic market leader BYD.

He Xiaopeng, Xpeng co-founder and chief executive, said at a launch event in Beijing on Tuesday night that it was “the only car with advanced autonomous driving” selling for less than Rmb200,000. The “Max” version with self-driving features starts at Rmb155,000.

Didi has been forced to rein in its ambitions since becoming a prime victim of Beijing’s tech crackdown when it listed on the New York Stock Exchange in 2021.

It subsequently delisted and suffered restrictions on signing up new customers and drivers, as well as an Rmb8bn fine for “vile” breaches of China’s data security laws.

“Didi sold the project to Xpeng due to financial issues,” said Wu Zhefeng, a Mona product manager who moved to Xpeng from Didi after the acquisition. A new car project required heavy investment “that was very challenging for Didi”, he added.

“The more in-depth co-operation with NavInfo and AutoAi will be centred on the area of smart transport, exploring more scenarios of intelligent mobility,” Didi said in a statement.

Didi recently sold its smart driving and “cockpit assets” unit AutoAi to state-backed digital mapping company NavInfo for Rmb450mn, according to a stock exchange filing on Wednesday.

The sale of its car-related businesses contrasts with the initial success of Chinese tech giant Huawei in establishing itself as a leading supplier to EV makers and its rival Xiaomi’s rapid launch of its own electric vehicle.

Xpeng’s He said Didi’s design concept and use of its driver data in the development of self-driving had meant major savings that made it easier to push down the M03’s price.

The new model was not intended for use in the ride-hailing company’s fleet or those of its rivals, he said, adding: “Our vision is instead to [serve] young individual customers who favour autonomous driving technologies.” The Max version can park itself without anyone behind the wheel and drive itself on frequently visited roads.

Analysts said the M03 marked a departure from Xpeng’s established image as a premium EV brand and would take the Volkswagen-backed company into the crowded affordable market segment dominated by BYD.

Xpeng’s move to widen its range is seen as an effort to boost sales volumes even at the expense of profit margins amid a prolonged price war in the world’s largest car market.

“Considering the stiff competition in the Chinese market, car companies only care about how to win as many orders as possible with an attractive price, while neglecting the costs,” said Li Yanwei, a member of the China Automobile Dealers Association’s expert committee.

The Mona M03 passed 10,000 orders within an hour of going on sale, Xpeng said in a social media post on Tuesday. The carmaker delivered 30,200 cars in the second quarter, a fraction of BYD’s 982,700 units in the same quarter.

With the new model set to squeeze Xpeng’s profitability, its chief executive acknowledged it faced a major challenge.

“Only seven major automakers will survive in the Chinese market over the coming decade,” He said at the launch, adding that annual sales of 1mn AI-equipped cars would be “the ticket to the final battle”.

>>> US After Hours Summary: AMBA +18%, JWN +7.2%, SMTC +6.2%, BOX +5.1% higher o

After Hours Summary: AMBA +18%, JWN +7.2%, SMTC +6.2%, BOX +5.1% higher on earnings; NCNO -10.2%, PVH -7.1% lower on earnings; SHAK -1.3% to close 9 stores; ELF +2.8% authorizes new $500 mln share repurchase program

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: WALD +36.2%, AMBA +18%, OOMA +7.5%, JWN +7.2%, SMTC +6.2%, BOX +5.1% (also authorizes new $100 mln share repurchase program), VNET +5%, TWFG +3.5%, S +2.4%

Companies trading higher in after hours in reaction to news: OCS +7.6% (stock offering by selling shareholder), DRS +5.5% (receives $117 mln US Army order for thermal weapon sights), HLX +4% (announces new contracts with PBR), AVPT +3.9% (commences offer to purchase all of its outstanding public warrants), ELF +2.8% (authorizes new $500 mln share repurchase program), SPIR +2.6% (provides update on new contracts), AVAV +2.3% (awarded $990 mln US Army contract), CIFR +2.1% (to acquire a new data center in West Texas), GEOS +1% (sells OBX-750E data acquisition nodes), UFPI +0.5% (CEO to become Exec Chairman; names new CEO; also CFO to add new role), WMT +0.2% (Walmart Marketplace accelerates growth; launches category expansion), NSP +0.1% (CFO to retire, names new CFO)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NCNO -10.2%, PVH -7.1%, SHAK -1.3% (to close nine company-owned stores; reiterates Q3 and FY24 guidance)

Companies trading lower in after hours in reaction to news: LAMR -2% (increases dividend), ICL -0.6% (signs 5-yr agreement of ~$170 mln with AMP Holdings), GM -0.2% (adds another ex-Apple exec to oversee software unit, according to Bloomberg), SVM -0.1% (issues updated technical report)

>>> Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealin



From: laurent@chekroun.com At: 08/27/24 15:51:56 UTC+2:00
To: Laurent Chekroun (MAKOR CAPITAL MARKET )
Subject: Fwd: Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer (Nasdaq:SMCI)




Begin forwarded message:

From: Hindenburg Research <info@hindenburgresearch.com>
Date: 27 August 2024 at 15:16:45 CEST
To: laurent@chekroun.com
Subject: Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer (Nasdaq:SMCI)
Reply-To: Hindenburg Research <info@hindenburgresearch.com>



Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer

(NASDAQ:SMCI)

  • Super Micro Computer Inc. is a $35 billion server maker based in Silicon Valley, California that has ridden the wave of AI enthusiasm.
  • Our 3-month investigation, which included interviews with former senior employees and industry experts as well as a review of litigation records, international corporate and customs records, found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.
  • In 2018, Super Micro was temporarily delisted from Nasdaq for failing to file financial statements. By August 2020, the company was charged by the SEC for “widespread accounting violations,” mainly related to $200+ million in improperly recognized revenue and understated expenses, resulting in artificially elevated sales, earnings and profit margins.
  • Less than 3 months after paying a $17.5 million SEC settlement, Super Micro began re-hiring top executives that were directly involved in the accounting scandal, per litigation records and interviews with former employees.
  • A former salesperson told us: “Almost all of them are back. Almost all of the people that were let go that were the cause of this malfeasance.”
  • According to a lawsuit filed in April 2024, Super Micro waited only 3 months after the SEC settlement before restarting “improper revenue recognition,” “recognizing incomplete sales,” and “circumvention of internal accounting controls”.
  • Even after the SEC settlement, pressure to meet quotas pushed salespeople to stuff the channel with distributors using "partial shipments" or by shipping defective products around quarter-end, per our interviews with former employees and customers.
  • One former salesperson described pushing products to distributors based on made-up demand forecasts, completing a partial shipment, then later coming up with an excuse for why the rest didn’t happen. “And now you have a problem. Accounting problem maybe.”
  • Former employees told us Super Micro’s business culture has not improved. Former senior sales director: "I don’t think the behavior of the company in many ways has changed in the 5 years since I started, and I started shortly after that delisting problem."
  • Three senior employees who left in early 2018 amidst the accounting scandal were rehired, individually serving as (1) a member of the board of directors (2) a consultant serving close to the CEO (3) and a VP of business development.
  • Former CFO Howard Hideshima left the company in January 2018 and was later individually charged by the SEC with accounting violations. In May 2023, he was hired by a key related party owned by Super Micro CEO’s brother.
  • A new CFO, praised by co-workers for his integrity, was hired in January 2018 to help the company recover from the scandal. He helped Super Micro re-list but resigned in January 2021. A former sales director suggested that he was edged out by the company.
  • Beyond fresh questions around its revenue accounting, we found that Super Micro’s relationships with both disclosed and undisclosed related parties serve as fertile ground for dubious accounting.
  • For example, disclosed related party suppliers Ablecom and Compuware, controlled by Super Micro CEO Charles Liang’s brothers, have been paid $983 million in the last 3 years. Ablecom is also partly owned by Super Micro CEO Charles Liang and his wife.
  • The relationships seem oddly circular. Super Micro provides components to the entities which assemble them and sell them back to Super Micro. They also rent warehousing and factory space to Super Micro even though it has its own sprawling factory.
  • The related parties seem to do little other business: ~99.8% of Ablecom’s exports to the U.S. since 2020 were to Super Micro, and ~99.7% of Compuware’s U.S. exports were to Super Micro, per trade records.
  • In addition to the concerns around the disclosed related parties, we found evidence of undisclosed related parties. The youngest brother of Super Micro’s CEO owns two Taiwan-based entities that make server components. Media reports and former employees indicate the entities are Super Micro suppliers.
  • Both entities operate out of the Super Micro Science and Technology Park in Taiwan, but Super Micro has not disclosed related party transactions with them.
  • Another brother of Super Micro’s CEO operates a disclosed related party but is also the director and shareholder of undisclosed Hong Kong and Taiwanese entities, which appear to resell Super Micro products and provide “professional OEM services.” It operates out of the same building as related party Compuware.
  • Collectively, disclosed and undisclosed related parties pose accounting risks relating to revenue recognition and reported margins. A former executive told us: “Basically it's a governance issue and just kind of shows you that Charles doesn't give a shit what you think…you're right to worry, though, that you just never know what's lurking.”
  • In addition to the CEO’s brothers, the company has an odd relationship with a key customer. In February 2024, Super Micro made an undisclosed investment in tech startup Lambda Labs as part of its $320 million funding round, per Bloomberg and per a confirmation we received from Lambda’s COO.
  • In August 2024, Super Micro signed an “unusual” $600 million contract to lease space at a California data center and sub-lease it to Lambda. The CFO glossed over questions about the reason for this arrangement.
  • In October 2023, two related parties run by CEO Liang’s brothers, one of them partially owned by Super Micro’s CEO, reportedly invested in small Taiwanese tech company Leadtek. Leadtek's website advertises products almost identical to Super Micro's, yet Super Micro discloses no relationship with Leadtek in what appears to be a clear undisclosed related party.
  • Super Micro has claimed its liquid cooling technology will “revolutionize the industry” and is its “competitive edge.” But at a recent industry conference, Super Micro featured related party Ablecom’s liquid cooling solutions, per an Ablecom engineer.
  • Ablecom has several patents for its liquid cooling technology. Despite this, Super Micro has never disclosed any related party involvement in its liquid cooling technology.
  • Besides questions around related parties and proprietary product offerings, in 2006, Super Micro pleaded guilty to a felony count of exporting banned components to Iran. The CEO said the company was in its infancy and had learned from its mistakes.
  • When Russia invaded Ukraine in February 2022, the U.S. government imposed stringent restrictions and bans on exports to Russia of high-performance computers and components.
  • Super Micro disclosed that some of its products were subject to export bans and said it was halting all sales and had “not recorded revenue” from Russia since the day before the war started.
  • Exports of Super Micro’s high-tech components to Russia have spiked ~3x since the invasion of Ukraine, apparently violating U.S. export bans, according to our review of more than 45,000 import/export transactions.
  • At least 46 companies that handled Super Micro products to Russia since the invasion are now under OFAC sanctions or on U.S. government watchlists.
  • Almost two-thirds of Super Micro’s exports to Russia since the invasion correspond to “high priority” components that the Russian military may be diverting to the battlefield, per U.S. government warnings.
  • One of the biggest importers of Super Micro products in Russia is a supplier to one of Russia’s largest “supercomputers” at a once-secret, now-sanctioned research center. That importer, Niagara Computers, has received at least $46.3 million worth of Super Micro products since the start of the Russia-Ukraine war, per trade data.
  • The sales were initially made through a distributor in California, but were later made through 3 newly-formed Turkish shell companies, including one that was eventually sanctioned for smuggling restricted items to Russia.
  • Almost $30 million worth of Super Micro components have also been shipped to Russia’s largest importer of dual-use civilian-military chips via a newly created Hong Kong shell entity. That Russian importer is now under OFAC sanctions.
  • Since 2016, Super Micro has had a joint venture with a Chinese state-run company called Fiberhome, which is involved in a campaign of “human rights violations and abuses,” high-tech surveillance, and repression of ethnic communities in western China, per the U.S. government.
  • Super Micro has sold ~$196 million of sophisticated computer components to the joint venture since Fiberhome was watchlisted by the U.S. government in 2020. Super Micro justifies the sales by saying the JV entity itself wasn’t watchlisted, even though its partner was.
  • Besides accounting issues and sanctions evasion, competition and quality concerns have resulted in major companies dropping Super Micro entirely or reducing their share.
  • Nvidia is a key partner and chip supplier to Super Micro. In May 2024, CEO Jensen Huang publicly endorsed Super Micro’s competition: “Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell.”
  • CoreWeave was Super Micro’s largest customer over the last year, per Bloomberg Intelligence. But in December 2023, Dell announced a deal with CoreWeave for “thousands” of GPU servers, potentially worth over $1 billion.
  • Tesla had been sourcing its servers exclusively from Super Micro, per Barclays Research in September 2023. But recent reports in May 2024 and posts by Elon Musk show Dell has now won major deals from Tesla, and Musk’s xAI, eroding Super Micro’s exclusivity.
  • Super Micro has conceded that it is “under-indexed” with the world’s largest technology companies, called “hyperscalers.” Amazon AWS was a customer but cut ties after delivery issues, per a former employee.
  • Digital Ocean, a U.S. cloud service provider, switched from Super Micro to Dell after service issues, according to a Digital Ocean employee, describing the relationship as “a train wreck of sorts” fraught with reliability issues.
  • Genesis Cloud is touted as a “success story” on Super Micro’s website. But current and former employees told us otherwise: “Catastrophic. It is, on the technical side, one of my worst experiences I’ve had…in the industry.”
  • GMI Cloud, a start-up GPU cloud provider in Asia and the U.S., told us they experienced a malfunction rate of 17.5% on its orders of 256 Super Micro servers. GMI is now moving away from Super Micro to HPE less than a year after its first order, per an employee.
  • NexGen Cloud, an Nvidia partner, disclosed in October 2023 that it was investing $1 billion to build an AI super-cloud in Europe with over 20,000 Nvidia GPUs. But a NexGen employee told us that sometimes up to half of the orders received from Super Micro had firmware issues.
  • Multiple former employees and channel partners confirmed that after-sales service is undermining Super Micro’s ability to retain customers. One former salesperson said: “It’s their Achilles heel. It’s just horrible.”
  • All told, we believe Super Micro is a serial recidivist. It benefitted as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competition.
Initial Disclosure: After extensive research, we have taken a short position in shares of Super Micro Computer, Inc. (Nasdaq:SMCI). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.
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FT : Exxon says global oil use to remain robust and warns of supply shock

Exxon says global oil use to remain robust and warns of supply shock
Bullish forecast from US supermajor contrasts with predictions of rapid transition form fossil fuel

ExxonMobil has said global oil demand will remain virtually unchanged by 2050 and warned that any move to curtail investment in fossil fuels would trigger a new energy price shock.

In a forecast released on Monday, the US supermajor said oil demand would stay above 100mn barrels a day over the next 25 years — a forecast that assumes an energy transition will fail to curb the world’s thirst for fossil fuels.

Exxon warned of a new global oil shock if companies failed to keep investing to match that demand, saying crude prices could quadruple as supply fell.

Exxon’s prediction contrasts sharply with UK oil major BP, which expects oil consumption to decline to 75mn b/d in 2050. The International Energy Agency projects oil demand would fall to 54.8mn b/d if governments met their climate pledges on time.

The Texas oil company’s forecast comes amid an increasingly fraught debate between fossil fuel producers trying to defend their market and, policymakers and climate scientists who warn of dangerous global warming unless consumers rapidly curb burning of fossil fuels.

Exxon has long argued the world will need more of its oil to lift billions of people in the developing world out of poverty. But it faces lawsuits from environmentalists and policymakers in California, who argue Exxon deceived the public for decades about how the burning of fossil fuels was warming the planet.

The forecast comes three years after Exxon lost one of Wall Street’s most memorable proxy shareholder battles against activist investor Engine No. 1, which argued the supermajor faced an “existential business risk” by pinning its future on fossil fuels. This year Exxon sued activist investors who filed shareholder proposals demanding it to do more to tackle climate change.   

Despite continuing strong demand for oil and gas, Exxon forecast that carbon emissions would decline by 25 per cent by 2050 due to greater energy efficiency, the rollout of technologies such as carbon capture and renewables.

However, this is significantly below the emissions cuts needed to meet the net zero goals outlined in the 2015 Paris Agreement on climate change.

In June the Paris-based IEA, which represents rich-world consumers, warned the world faced a “staggering” surplus of oil by the end of the decade if producers kept raising output as the world turned away from fossil fuels.

The Opec producer cartel described the IEA’s forecast as “dangerous commentary” and stuck to its own forecasts for oil demand to reach 116mn barrels of oil by 2045.

Exxon’s report said oil and gas would remain essential to the global economy as population growth drove a 15 per cent increase in total energy use by 2050.

While the need for oil to make gasoline for passenger cars would fall by a quarter by 2050, Exxon predicted, demand from industry — the biggest source of consumption — would compensate.  

Exxon uses the forecasts contained in its global outlook to help determine its future production growth plans, which are among the most bullish in the oil industry and include expansions of projects from Texas’s shale to offshore Guyana.

Environmental campaigners said Exxon’s forecast represented a last-ditch effort from a dying industry to appeal to investors to support new production.  

“There is no long-term future and only material risk in oil expansion since governments worldwide and financial institutions have committed to an energy transition,” said Hannah Saggau, senior climate finance campaigner at Stand.earth, an environmental organisation.

FT : Emmanuel Macron hits back at claims Telegram chief’s arrest is political

Emmanuel Macron hits back at claims Telegram chief’s arrest is political
French president says that fate of Pavel Durov will be ‘up to the judges to decide’

Emmanuel Macron has hit back at accusations that the arrest of Telegram chief executive Pavel Durov in France is politically motivated, after the surprise move raised tensions with Moscow and escalated a global debate over free speech.

French prosecutors on Monday said they detained the Russian-born billionaire, who is now a French-Emirati citizen, as part of an investigation opened in July into the messaging app’s moderation of alleged criminal activity on the platform. This includes the spread of child sexual abuse material, drug trafficking, fraud and money laundering.

The French president also intervened on Monday after some Russian lawmakers claimed the arrest was made on political grounds, while the Russian embassy in France has said it had requested consular access to Durov.

“I have read false information here regarding France following the arrest of Pavel Durov,” Macron wrote on X on Monday. “The arrest of the Telegram president on French territory took place as part of an ongoing judicial investigation. This is in no way a political decision. It is up to the judges to decide.”

Dubbed the “Mark Zuckerberg of Russia” after co-founding its most popular social media network, VKontakte, Durov fled the country in 2014 after allegedly refusing to comply with Moscow’s demands for access to the data of Ukrainian users protesting against a pro-Russia administration.

His arrest marks the most drastic national action against a social media chief to date and is the latest battle between officials and regulators concerned with online safety and free speech advocates.

Earlier this month, technology billionaire Elon Musk clashed with UK leader Sir Keir Starmer and EU commissioner Thierry Breton after criticising the UK’s policing of the Southport riots and sharing misinformation and far-right content around the events, in a move that was perceived by critics as further fuelling the violence.

Over the weekend, Musk, a self-declared free speech absolutist, hit out at French authorities, posting the hashtag “#freepavel” on his platform.

The warrant for Durov’s arrest was issued by Ofmin, a French police agency set up in the last year focused on preventing violence against minors.

“At the heart of this issue is the lack of moderation and co-operation by the platform (which has nearly 1 billion users), particularly in the fight against child sex crimes,” Jean-Michel Bernigaud, the secretary-general of Ofmin, wrote on LinkedIn on Monday.

Ofmin is working on the preliminary probe in co-operation with the Paris prosecutors office and customs officials. Prosecutors also said on Monday the allegations included “refusal to hand over, at the request of competent authorities, information or documents”.

Durov was detained on Saturday night at Paris-Le Bourget airport after arriving on his private jet from Azerbaijan. On Sunday, the investigating magistrate extended his detention from 24 to up to 96 hours, during which time a magistrate will need to decide whether to bring charges.

Dubai-based Telegram has said its chief executive has “nothing to hide and travels frequently in Europe”, adding that its moderation was “within industry standards and constantly improving”.

The company also said it was abiding by EU laws including the Digital Services Act, a landmark law which came into force this year and requires platforms to police harmful content and disinformation more closely, or risk penalties or being restricted in the bloc.

“It is absurd to claim that a platform or its owner are responsible for abuse of that platform,” Telegram has said. “We’re awaiting a prompt resolution of this situation. Telegram is with you all.”

Founded in 2013, Telegram has exploded in popularity, nearing 1bn users and becoming one of the main communication tools in conflict zones and humanitarian crises such as the Russia-Ukraine war and the Israel-Hamas conflict.

Durov has taken a hands-off approach to moderation and cast the app as unassailable by governments. However, some researchers have warned that it has become a hub for illicit activity and extremism as a result.

In recent years, Durov has tried to distance himself and the app from Russia, amid claims by critics that the Kremlin might still have links to or leverage over Telegram.

“He thought his biggest problems were in Russia and left . . . he wanted to be a brilliant ‘citizen of the world’, living well without a homeland,” former Russian president Dmitry Medvedev, now a prominent rightwing commentator, wrote on his Telegram channel on Sunday.

“He miscalculated. To our common enemies, he is still Russian — unpredictable and dangerous, of different blood.”