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Govt gestures leave roots of Indonesia protests intact

Government gestures to calm deadly protests in Indonesia have done little to address the economic inequality and hardship fuelling the unrest, leaving deep resentment to linger and flare up again, experts say.The country’s worst violence in decades left at least six people dead and 20 missing, with rallies over lavish perks for lawmakers descending into angry riots against police after officers were filmed running over a young delivery driver.Southeast Asia’s biggest economy recorded a surge in growth in the second quarter of the year on the back of manufacturing and export demand, which President Prabowo Subianto hailed, but everyday Indonesians are not seeing the data reflected in their wallets.Instead they view a corrupt political class enriching itself and failing to listen to the public, while inequality grows between the rich and the poor, experts said.”This is caused by economic issues. Some economic policies left the public quite annoyed or even angry,” said Nailul Huda, economist at the Center of Economics and Law Studies (CELIOS).”If economic growth is true, it will be felt by the lower-class society. Terminations are everywhere, and layoffs have increased up to 30 percent, which is quite high,” he added.Lavish benefits for lawmakers including a $3,000 housing allowance, which is nearly 10 times the minimum wage in the capital Jakarta, stirred the initial anger in protests last week before the driver’s death.The protests made Prabowo and parliament leaders U-turn and offer to revoke some perks, including issuing a moratorium on overseas visits.But their moves have likely not gone far enough to address the underlying grievances of the wider public.”The government appears insensitive to these concerns,” said Nailul. “This has become the root of the administration’s problems over the past four days.”Rising anger against the elite has manifested itself in looting, including the homes of several politicians.It has not been confined to capital Jakarta either, with local and provincial council buildings set on fire or attacked with rocks and Molotov cocktails in cities across the country. – ‘Govt fails to deliver’ -Prabowo had already faced smaller protests in February over widespread budget cuts to fund populist policies, including a billion-dollar free meal programme and new sovereign wealth fund Danantara.”The budgets that were supposed to be utilised by other sectors are being diverted to popular programmes which most likely still have many problems,” said Jahen Fachrul Rezki, an economic researcher at the University of Indonesia.Around 42,000 people were also laid off between January and June, a 32 percent rise on last year, according to the Ministry of Manpower. “It might be true that our economy is expanding, but who’s benefiting from the growth? Probably just capital owners,” Jahen said.A cost-of-living crisis is being felt by many as the country struggles with a shrinking middle class and slower income growth compared to rising prices because of inflation, according to Jahen.”The government claimed that we have an increase of rice supply, but it is not reflected in the price,” he said.According to Statistics Indonesia on Monday, the price of the staple good increased by more than six percent on last year.The number of people living below the poverty line in metropolitan Jakarta — a megalopolis of around 11 million people — was up from 362,000 in 2019 to 449,000 as of September 2024, government data says.”The government initially promised during the campaign that there would be job opportunities, education, and no more layoffs,” said Nailul. “But the government fails to deliver.”- ‘A matter of time’ -One of Prabowo’s early moves was to announce Indonesia would hike its value-added tax to 12 percent, before reversing after a backlash and saying it would only apply to luxury goods.”It is neither feasible nor wise for the government to raise VAT rates when people’s purchasing power is declining,” said Nailul.The death of the delivery driver, Affan Kurniawan, also stoked anger because workers like him have faced bigger pay deductions and longer working hours due to the economic situation.Such conditions mean many Indonesians will still feel the economic pain in the coming months, leaving the door open for fresh protests.”The protests on the streets probably will come down in the next few days, but it’s just a matter of time until public anger resurfaces again,” said Ray Rangkuti, political analyst at think tank Lingkar Madani.”Because we’re not addressing the issues, we’re just covering them up,” Rangkuti added.

Gold rushes to new high as Asia stocks mixed

Gold hit a record high Tuesday as a weaker dollar and expectations of a US interest rate cut made the safe haven an attractive investment.Stocks, meanwhile, were mixed as investors awaited fresh direction from Wall Street after it was closed on Monday for Labor Day.Gold reached $3,501.59 an ounce during early trading in Asia, soaring past its previous record of $3,500.10 in April.”The rally reflects a softer dollar but also strong central-bank and institutional demand as investors rotate out of US Treasuries,” said Ipek Ozkardeskaya at Swissquote Bank.”The share of US Treasuries held by foreign central banks has been declining for over a decade, but that shift into gold accelerated this year amid US debt concerns, ratings downgrades, trade tensions and geopolitical risks,” she said.On equity markets, Tokyo, Seoul and Jakarta were all up, while Hong Kong and Shanghai turned negative after early gains.On the Hang Seng, Alibaba was down slightly a day after rocketing almost 20 percent following bumper results and a surge in AI revenue.”While US giants face mounting questions around AI monetization and stretched valuations, Chinese firms are showing tangible earnings lift from AI and cloud,” Charu Chanana at Saxo Markets told AFP.The Japanese corporate world was, meanwhile, rocked by the shock resignation of the CEO of drinks giant Suntory over an illegal drugs probe.Oil prices moved higher ahead of a weekend OPEC+ meeting to decide on output for October. The cartel is expected to keep supplies unchanged.- Key figures at around 0700 GMT -Tokyo – Nikkei 225: UP 0.3 percent at 42,310.49 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 25,535.03Shanghai – Composite: UP 0.7 percent at 3,849.79New York – Dow: Closed Monday for a public holidayEuro/dollar: UP at 1.1704 from $1.1705 on MondayPound/dollar: DOWN at 1.3526 at from $1.3547Dollar/yen: UP at 148.00 from 147.27 yen Euro/pound: DOWN at 86.53 pence from 86.57 penceBrent North Sea Crude: UP 0.6 percent at $68.55 per barrelWest Texas Intermediate: UP 1.6 percent at $65.04 per barrel

UK, Japan, South Korea endure hottest summer on record

The UK, Japan and South Korea sweltered this year through the hottest summers since each country began keeping records, their weather agencies said Monday.Temperatures the world over have soared in recent years as human-induced climate change creates ever more erratic weather patterns.The UK’s provisional mean June-August temperature was 16.1C, which was 1.51C above the long-term average and surpassed all years since 1884, including the previous record, set in 2018, the Met Office said.The British summer saw four heatwaves, below-average rainfall and sustained sunshine, and followed the nation’s warmest spring in more than a century.Japan’s average temperature spike was even starker over the same three summer months, at 2.36C above “the standard value”, making it the hottest since records began in 1898, the Japan Meteorological Agency (JMA) said.It was the third consecutive summer of record high temperatures, the agency noted.This year’s scorching heat left some 84,521 people hospitalised nationwide from May 1 to August 24, according to Japan’s Fire and Disaster Management Agency.In South Korea, the average June-August temperature was 25.7C, “the highest since data collection began in 1973”, the Korea Meteorological Administration said in a press release.The previous record over the same period was 25.6C, set just last year.- ‘Very hot’ -Britain — known for its damp and grey climate — struggled through the record hot summer, which poses a host of challenges for a country ill-equipped for such conditions.Homes in the UK are designed to keep the heat in during the winter, and air conditioners are rare in homes and public places, such as much of London’s sprawling underground “Tube” metro system.”It’s hard to spend a hot day (here),” Ruidi Luan, a 26-year-old student from China, told AFP in London during the August heatwave.”There’s no air conditioner in our dorm. It is sometimes very hot, and especially in public transport.”Drought was declared in five out of 14 regions in England, while the Environment Agency classed the water shortfall as “nationally significant”, as farmers struggle with stunted harvests.In Tokyo, Miyu Fujita, a 22-year-old businesswoman, said she had mostly socialised indoors this summer to escape the oppressive temperatures.”When I was a child, summer was the time to go outside and play,” she told AFP. “Can kids play outside now? I think it’s impossible.”Japan’s beloved cherry trees are blooming earlier due to the warmer climate, or sometimes not fully blossoming because autumns and winters are not cold enough to trigger flowering, experts say.The famous snow cap of Mount Fuji was absent for the longest recorded period last year, not appearing until early November, compared with the average of early October.- National disaster -South Korea is meanwhile grappling with a prolonged drought that has hit the eastern coastal city of Gangneung.A state of national disaster has been declared in the city of 200,000 people, with water levels at the Obong reservoir, the city’s main source of piped water, falling below 15 percent.The dry spell has forced authorities to implement water restrictions, including shutting off 75 percent of household meters.Kim Hae-dong, professor of meteorological studies at Keimyung University, told AFP the hot weather streak was linked to “the weakening of Arctic cold air due to global warming”.”Because it is expected to continue weakening with global warming in place, we forecast similar weather patterns to repeat next year,” he said.Heatwaves are becoming more intense and frequent worldwide because of human-caused climate change, scientists say.The UK’s provisional record this year means all of its five warmest summers have taken place this century.The Met Office noted “a summer as hot or hotter than 2025 is now 70 times more likely than it would be in a ‘natural’ climate with no human caused greenhouse gas emissions”.But the speed of temperature increases across the world is not uniform.Of the continents, Europe has seen the fastest warming per decade since 1990, followed closely by Asia, according to global data from the US National Oceanic and Atmospheric Administration.The United Nations warned last month that rising global temperatures are having an ever-worsening impact on the health of workers, and also hitting productivity, which they say dropped by two to three percent for every degree above 20C.burs-jj/jkb/jhb

European stocks steady after robust gains for Chinese equities

Europe’s main stock markets held broadly steady on Monday after strong gains for Chinese indices, as trading entered a traditionally weak month for Wall Street.Hong Kong’s Hang Seng Index closed with a gain of 2.2 percent, fuelled by the share price of Chinese ecommerce giant Alibaba soaring almost 20 percent on bumper results which included a surge in AI revenue. Chinese equities won support also from official data showing that China’s factory output ticked up in August, analysts said.The Purchasing Managers’ Index — a key measure of industrial output — was 49.4, up slightly from 49.3 in July.However, it was also a fifth straight month of contraction, as only a figure above 50 indicates growth.In Europe, the London edged higher Frankfurt stock markets gained 0.6 percent. Paris flattened amid political turmoil in France over contested budget proposals. Wall Street was shut Monday for Labor Day, while the dollar traded mixed against main rivals.”Stocks tend to underperform this month on both sides of the Atlantic,” noted Kathleen Brooks, research director at XTB trading group.The tide already began to turn at the end of last week, with “an underwhelming set of results for (AI chip giant) Nvidia, along with a sharp selloff in stock markets in Europe and the US”, Brooks added.Wall Street retreated from record highs Friday as a key US inflation reading accelerated, lowering the odds of sustained cuts to interest rates by the Federal Reserve in the coming months.However, Trade Nation analyst David Morrison said investors interpreted last week’s dip “as simply some mild profit-taking ahead of the long holiday weekend”.Also Friday, a US appeals court ruled that many of President Donald Trump’s tariffs, which have upended global trade, were illegal — but allowed them to remain in place for now, giving him time to take the fight to the Supreme Court.- Key figures at around 1530 GMT -London – FTSE 100: UP 0.1 percent at 9,196.34 points (close)Paris – CAC 40: UP less than 0.1 percent at 7,707.90 (close)Frankfurt – DAX: UP 0.6 percent at 23,037.33 (close)Tokyo – Nikkei 225: DOWN 1.2 percent at 42,188.79 (close) Hong Kong – Hang Seng Index: UP 2.2 percent at 25,671.78 (close)Shanghai – Composite: UP 0.5 percent at 3,875.53 (close)New York – Dow: Closed for a public holidayEuro/dollar: UP at $1.1705 from $1.1693 on FridayPound/dollar: UP at $1.3547 from $1.3507Dollar/yen: UP at 147.27 from 147.01 yen Euro/pound: UP at 86.57 pence from 86.56 pence Brent North Sea Crude: UP 1.0 percent at $68.16 per barrelWest Texas Intermediate: UP 1.0 percent at $64.67 per barrelburs-rl/yad

European stocks climb after robust gains for Chinese equities

Europe’s main stock markets mostly climbed Monday after strong gains for Chinese indices, as trading entered a traditionally weak month for Wall Street.Hong Kong’s Hang Seng Index closed with a gain of 2.2 percent, fuelled by the share price of Chinese ecommerce giant Alibaba soaring almost 20 percent on bumper results which included a surge in AI revenue. Chinese equities won support also from official data showing that China’s factory output ticked up in August, analysts said.The Purchasing Managers’ Index — a key measure of industrial output — was 49.4, up slightly from 49.3 in July.However, it was also a fifth straight month of contraction, as only a figure above 50 indicates growth.In Europe, the London and Frankfurt stock markets gained approaching the half-way stage. Paris flattened amid political turmoil in France over contested budget proposals. Wall Street is shut Monday for Labor Day, while the dollar traded mixed against main rivals.”Stocks tend to underperform this month on both sides of the Atlantic,” noted Kathleen Brooks, research director at XTB trading group.The tide already began to turn at the end of last week, with “an underwhelming set of results for (AI chip giant) Nvidia, along with a sharp selloff in stock markets in Europe and the US”, Brooks added.Wall Street retreated from record highs Friday as a key US inflation reading accelerated, lowering the odds of sustained cuts to interest rates by the Federal Reserve in the coming months.Also Friday, a US appeals court ruled that many of President Donald Trump’s tariffs, which have upended global trade, were illegal — but allowed them to remain in place for now, giving him time to take the fight to the Supreme Court.- Key figures at around 1045 GMT -London – FTSE 100: UP 0.1 percent at 9,198.91 pointsParis – CAC 40: FLAT at 7,705.31 Frankfurt – DAX: UP 0.3 percent at 23,975.42Tokyo – Nikkei 225: DOWN 1.2 percent at 42,188.79 (close) Hong Kong – Hang Seng Index: UP 2.2 percent at 25,671.78 (close)Shanghai – Composite: UP 0.5 percent at 3,875.53 (close)New York – Dow: DOWN 0.2 percent at 45,544.88 (close)Euro/dollar: UP at $1.1722 from $1.1693 on FridayPound/dollar: UP at $1.3525 from $1.3507Dollar/yen: UP at 147.11 from 147.01 yen Euro/pound: UP at 86.68 pence from 86.56 pence Brent North Sea Crude: UP 0.8 percent at $68.04 per barrelWest Texas Intermediate: UP 0.9 percent at $64.60 per barrelburs-bcp/ajb/lth

Japan, South Korea endure hottest summer on record

Japan and South Korea sweltered this year through the hottest summers since records began, their weather agencies said Monday.Temperatures the world over have soared in recent years as climate change creates ever more erratic weather patterns.Japan’s average temperature between June and August “was 2.36C above the standard value, which marked the hottest summer since records began in 1898”, according to the Japan Meteorological Agency (JMA).The agency did not disclose what the new mark was, but said it was the third consecutive summer of record high temperatures.During that same period in South Korea, the average temperature was 25.7C, “the highest since data collection began in 1973”, the Korea Meteorological Administration said in a press release.The previous record over the same period was 25.6C, set just last year.In Japan the scorching heat left some 84,521 people hospitalised nationwide from May 1 to August 24 this year, up slightly from 83,414 during the same period last year, according to the Fire and Disaster Management Agency.- ‘All man-made’ -In Tokyo, avid runner Masao Nakano, 80, told AFP he pines for the old days when he could just “step outside, sprinkle water in the street and feel the cool air”. Nakano says he survived the sizzling summer by working out at a gym and jogging to prepare for a marathon.”This is crazy. It’s all man-made, right? All the air-cons and power generation”, he said.Miyu Fujita, a 22-year-old businesswoman in the city, said she had mostly socialised indoors this summer to escape the oppressive temperatures and was also worried about children forced inside.”When I was a child, summer was the time to go outside and play,” she added. “Can kids play outside now? I think it’s impossible.” Japan’s beloved cherry trees are blooming earlier due to the warmer climate, or sometimes not fully blossoming because autumns and winters are not cold enough to trigger flowering, experts say.The famous snowcap of Mount Fuji was absent for the longest recorded period last year, not appearing until early November, compared with the average of early October.In South Korea, the country is grappling with a prolonged drought that has hit the eastern coastal city of Gangneung.- National disaster -A state of national disaster has been declared in the city of 200,000 after weeks without rain — with water levels at the Obong reservoir, the city’s main source of piped water, falling below 15 percent.The dry spell has forced authorities to implement water restrictions, including shutting off 75 percent of household meters. Kim Hae-dong, professor of meteorological studies at Keimyung University, told AFP that the hot weather streak was linked to “the weakening of Arctic cold air due to global warming”. “Because it is expected to continue weakening with global warming in place, we forecast similar weather patterns to repeat next year,” he said.Heatwaves are becoming more intense and frequent worldwide because of human-caused climate change, scientists say.But the speed of temperature increases across the world is not uniform.Of the continents, Europe has seen the fastest warming per decade since 1990, followed closely by Asia, according to global data from the US National Oceanic and Atmospheric Administration.The United Nations warned last month that rising global temperatures are having an ever-worsening impact on the health of workers, and was also hitting productivity, which they say dropped by two to three percent for every degree above 20C.burs-aph-kjk/fox

Missiles, drones, lasers: New weapons expected at Beijing military parade

China will showcase a range of new weapons during a vast military parade on Wednesday, in a show of strength that is being seen as a challenge to US military dominance.Military experts have been analysing social media photos and footage from several recent rehearsals, which have shown anti-ship missiles, cutting-edge underwater drones, anti-missile systems, and more tech that could pass by Beijing’s Tiananmen Square on September 3.While officials have kept secret the list of hardware to be displayed in front of Chinese President Xi Jinping, Russia’s Vladimir Putin and other world leaders, many military enthusiasts have already spotted significant new systems, including what is rumoured to be a gigantic laser weapon.The military has said all the equipment presented is domestically produced and “in active duty”. – ‘Eagles’ to counter US ships -Four new anti-ship missiles several metres long have been seen: the YJ-15, YJ-17, YJ-19, and YJ-20. “YJ” is short for “Ying Ji”, which means “eagle attack” in Chinese.These missiles can be launched from ships or aircraft and are designed to inflict critical damage on large vessels. The YJ-17, YJ-19, and YJ-20 models could be hypersonic, meaning they can fly at least five times the speed of sound.”China must develop powerful anti-ship and anti-aircraft carrier capabilities to prevent the United States from posing a serious threat to China’s national security,” Song Zhongping, a military commentator and former Chinese army instructor, told AFP, referring to tensions in the Taiwan Strait and the South China Sea.- Underwater drones -Two new, extra-large torpedo-shaped unmanned underwater vehicles have been spotted during the rehearsals.The first, labelled “AJX002”, is 18 to 20 metres (59-66 feet) long, according to the website Naval News. The second was hidden under a tarpaulin.While China still lags behind the United States in surface naval power, according to Naval News, it has the world’s largest programme of “extra large uncrewed underwater vehicles” (XLUUVs) — with at least five types already in the water.- Anti-missile shield -Still shrouded in mystery, the HQ-29 is described by some Chinese analysts as a “satellite hunter” capable of intercepting missiles at an altitude of 500 kilometres (310 miles), outside the Earth’s atmosphere, as well as satellites in low orbit.Mounted on a wheeled vehicle, the system features two missile containers, each approximately 1.5 metres in diameter.Its capabilities could make it China’s most advanced interception system to date and one of the most powerful in the world.- World’s ‘most powerful’ laser? -A huge rectangular vehicle in camouflage colours covered with a tarpaulin could be a defence system capable of shooting down missiles and drones using a powerful laser, according to the South China Morning Post daily.The X account “Zhao DaShuai”, which is linked to the Chinese military, claims it is the “most powerful laser air defence system in the world”.- New nuclear weapons? -Intercontinental ballistic missiles, capable of carrying nuclear warheads, the ultimate symbols of power, are expected to feature prominently in the parade.”China will showcase a new generation of nuclear weapons,” analyst Song Zhongping told AFP. Nuclear weapons, like the other hardware which will be displayed during the parade, “will help equalise the military power balance between China and the US”, he said.- New armoured vehicles –Next-generation vehicles have been spotted in recent days, notably a new tank — slightly smaller than the Type 99A main battle tank, reportedly in service since 2011.If this and the other equipment displayed on September 3 is indeed produced domestically and in service, as China claims, then the armed forces “have undergone a significant upgrade vis-a-vis other major advanced militaries around the world”, said James Char, a professor specialising in the Chinese military at Nanyang Technological University in Singapore.”However, we won’t be able to assess the actual capabilities of all the weapons and equipment under this ceremonial (and non-operational) setting,” he added.

Alibaba soars but Europe, Asia stocks mixed

Chinese ecommerce giant Alibaba soared on Monday but Asian and European markets were mixed after Wall Street retreated from record highs.Alibaba rocketed almost 20 percent following bumper results on Friday, including a surge in AI revenue. Its US-listed shares added 13 percent on Friday too.Alibaba lifted the Hang Seng by two percent and Shanghai rose half a percent. Other Asian indexes were in the red, however, with Japan’s Nikkei off more than one percent as chip shares came under pressure.Seoul’s Kospi was also off even after South Korean data showed record monthly semiconductor exports in August despite growing pressure from US tariffs.In Europe, London and Paris were higher in early trade but Frankfurt fell back. Oil prices edged up.On Friday US stocks fell, with the Dow and S&P 500 retreating from record highs ahead of the long Labor Day weekend.An acceleration of a key US inflation reading lowered prospects for sustained interest rate cuts by the Federal Reserve in the coming months.Although a September cut of 25 points is probably still on the cards, “it may be hard for them to move as quickly or aggressively as they’d like, with inflation moving higher,” said eToro analyst Bret Kenwell.German inflation rose in August for the first time this year, data showed Friday, which could lessen the chances for further European Central Bank rate cuts too.On tariffs, a US appeals court ruled Friday that President Donald Trump exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.The tariffs remained in place for now though, and hitting out at the ruling Trump said that “the United States of America will win in the end”.Japan’s tariffs envoy cancelled a trip to Washington last week over plans for a presidential order including stepped-up Japanese purchases of US rice, the Nikkei reported.- Key figures at around 0700 GMT -Tokyo – Nikkei 225: DOWN 1.2 percent at 42,188.79Hong Kong – Hang Seng Index: UP 2.0 percent at 25,671.78Shanghai – Composite: UP 0.5 percent at 3,875.53London – FTSE 100: UP 0.4 percent at 9,223.67New York – Dow: DOWN 0.2 percent at 45,544.88 (close)Euro/dollar: UP at $1.1722 from $1.1693 on FridayPound/dollar: UP at $1.3524 from $1.3507Dollar/yen: UP at 147.05 from 147.01 yen Euro/pound: UP at 86.67 pence from 86.56 pence West Texas Intermediate: UP 0.4 percent at $64.24 per barrelBrent North Sea Crude: UP 0.3 percent at $67.67 per barrelburs-stu/fox

Chinese cluster now world’s top innovation hotspot: UN

Shenzhen-Hong Kong-Guangzhou has overtaken Tokyo-Yokohama to become the world’s top cluster for innovation, the United Nations said Monday.The UN’s World Intellectual Property Organization (WIPO) said the Chinese cluster had leapfrogged its Japanese rival in its 2025 Global Innovation Index.The change at the top of the world’s 100 leading innovation clusters was down to WIPO broadening the criteria to include venture capital investments to formulate the annual rankings.The UN agency dealing with patenting and innovation previously only used patent filing and scientific publishing data to identify local concentrations of world-leading innovation activity.”Venture capital investment activity helps capture how scientific and technological knowledge translates into start-up creation and, ultimately, new goods and services in the marketplace,” WIPO said.The agency said Shenzhen-Hong Kong-Guangzhou and Tokyo-Yokohama “make a massive contribution to global scientific publications and patenting outputs”, together accounting for nearly one in five patent applications filed globally.- Indian cities surge -The new ranking showed that San Jose-San Francisco has now overtaken Beijing, Seoul and Shanghai-Suzhou to grab the third place.London has shot up from 21st to eighth place, while Bengaluru has likewise jumped from 56th place to 21st on the back of venture capital deals.”Innovation clusters form the backbone of strong national innovation ecosystems, helping to anchor and strengthen the journey from ideas to market,” said WIPO chief Daren Tang.The recalibrated rankings “highlight which clusters are turning scientific research into economic results”.Overall, the change in methodology has seen East Asian clusters drop while US clusters have made gains.The change boosted Indian clusters, while those in the European Union — where the venture capital markets are sometimes less vigorous than in the United States — have tended to see a decline.- Most innovation clusters in China -The top 100 innovation clusters are spread across 33 economies, uniting “top universities, researchers, inventors, venture capitalists and research and development firms in driving forward breakthrough ideas”, WIPO said.By country, China for the third consecutive year led the ranking with the most clusters in the top 100, at 24, followed by the United States with 22 clusters.WIPO said the clusters with the most innovation-intensive activity in proportion to population size were San Jose-San Francisco in the United States, followed by Britain’s Cambridge.- Top 15 -The top 15 innovation clusters in 2025:1: Shenzhen-Hong Kong-Guangzhou (China)2: Tokyo-Yokohama (Japan)3: San Jose-San Francisco (United States)4: Beijing (China)5: Seoul (South Korea)6: Shanghai-Suzhou (China)7: New York City (United States)8: London (Britain)9: Boston-Cambridge (United States)10: Los Angeles (United States)11: Osaka-Kobe-Kyoto (Japan)12: Paris (France)13: Hangzhou (China)14: San Diego (United States)15: Nanjing (China)

Bollywood reels as AI reshapes Indian films

Bollywood, famed for its lavish song-and-dance numbers and vast production crews, now finds itself confronting a new kind of spectacle: artificial intelligence.From altering iconic endings to generating entire films, AI is shaking up India’s multibillion-dollar film industry, raising alarm for some, excitement for others.The debate first erupted when producers re-released the 2013 hit “Raanjhanaa” with an AI-modified finale, when the Hindi film was dubbed into India’s southern language of Tamil.The new ending changed the tragic death finale into a hopeful one — with the protagonist’s eyes seen to flicker open — triggering outrage from director Aanand L. Rai and star Dhanush.They decried the change as a violation of creative rights.”This alternate ending has stripped the film of its very soul,” Dhanush posted on social media, after the new version was released in August.”The concerned parties went ahead with it despite my clear objection,” Dhanush said, calling the use of AI to alter films “a deeply concerning precedent for both art and artists”.”It threatens the integrity of storytelling and the legacy of cinema”, he added.Director Rai said that while AI is “definitely the future… it is not there to change the past”.Then, days later, entertainment firm Collective Artists’ Network announced India’s first fully AI-generated feature film, “Chiranjeevi Hanuman -– The Eternal”.The mythological epic, set for a 2026 release, aims to merge ancient legend with cutting-edge technology for a global audience, telling the story of the Hindu monkey god Hanuman.Not all filmmakers were impressed.”And so, it begins,” wrote filmmaker Vikramaditya Motwane on social media. “Who needs writers and directors when it’s ‘Made in AI’?”- ‘Flesh and blood’ -The industry is bracing for a fight.On one side are those who see AI as a cost-saving disruptor capable of replacing armies of extras and technicians in Bollywood’s famously labour-intensive productions.On the other are defenders of artistry, unpredictability, and human expression.Some see opportunity in using AI to boost traditional films.”I don’t think AI means there can’t be flesh and blood,” said director Shakun Batra, who has created a five-part short film series using AI. “The best future would be when two skill sets merge.”But he insists that technology must complement, not override, human creativity.”I don’t encourage AI as a replacement to human endeavour of expression,” said Batra, known for emotional Bollywood dramas such as “Ek Main Aur Ekk Tu”, “Kapoor & Sons” and “Gehraiyaan”.Veteran filmmaker Shekhar Kapur, director of classics such as “Masoom”, “Mr. India”, and the 1998 movie “Elizabeth” that was nominated for seven Academy Awards, shrugged off the threat.He said AI could not replace good storytelling.”The best stories are unpredictable and AI cannot handle unpredictability,” he told AFP. “AI can’t, at this moment, create great performances on screen — because if you look at any big stars of this world, it is their eyes that act, not their face.”Kapur said AI would be destructive only for filmmakers who rely on formulaic tropes.”If your movies are predictable… then of course, AI will destroy you,” he added. “Perhaps some kid somewhere will be able to do what you are doing.”Instead, he said AI, at its best, would open the industry to new ideas.”AI is a hugely democratic technology because it gives opportunities to those who would never get it,” he said. “How many people in India can afford to go to film schools?”- ‘Level the playing field’ – The emergence of AI would initially hit high-budget films such as superhero movies where you are “relying on action”, Kapur said.Kapur is actively integrating AI into his own work, and even plans to establish an AI-focused film school in Mumbai’s Dharavi slum.”AI will empower creators, level the playing field for independent filmmakers, and even lead to the creation of entirely new, AI-generated movie stars and characters,” he said.But filmmakers also point out that the future of movies lies in the hands of the audience.”Raanjhanaa” director Rai says he was comforted by the support of his fans backing the unchanged version, even 12 years after its original release.”The way they reacted to AI is much bigger than the way I reacted,” he said. “It is more of their film than mine.”