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New Georgian president sworn in; predecessor says he is not legitimate leader

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By Gleb Stolyarov and Felix Light

TBILISI (Reuters) -Mikheil Kavelashvili, a hardline critic of the West, was sworn in as president of Georgia on Sunday amid a political crisis after the government froze European Union application talks in a move that sparked major protests.

Outgoing President Salome Zourabichvili, a pro-EU opponent of the ruling party, said in a defiant speech to supporters outside the presidential palace that she was leaving the residence, but that Kavelashvili had no legitimacy as president, which is a mostly ceremonial position.

She said: “I will come out of here and be with you.”

“I am taking legitimacy with me, I am taking the flag with me, I am taking your trust with me,” she added, before walking out of the palace to mingle with her supporters.

Zourabichvili says that Kavelashvili was not duly picked, as the lawmakers who chose him were elected in an October parliamentary election that she says was marked by fraud. Georgia’s opposition parties support her.

The Georgian Dream ruling party and the country’s election commission say that the October election was free and fair. The ruling party says Kavelashvili is the duly elected president.

The presidential standoff is seen as a watershed moment in Georgia, a mountainous country of 3.7 million that had until recently been regarded as among the most democratic and pro-Western of the former Soviet states.

Kavelashvili is a loyalist of Bidzina Ivanishvili, a reclusive billionaire ex-prime minister who is widely seen as Georgia’s de facto leader.

On Friday, the U.S. imposed sanctions on Ivanishvili, saying he was spearheading Georgia’s current anti-Western and pro-Russian turn.

PROTESTERS HOLD UP RED CARDS

Kavelashvili, a former professional soccer player who briefly played as a striker for Manchester City, has repeatedly accused Western intelligence agencies of plotting to drive Georgia into war with neighbouring Russia.

“The Georgian people have always understood that peace is the main prerequisite for survival and development,” he said after being sworn in on Sunday.

Protesters outside parliament held up red cards in a mocking reference to Kavelashvili’s athletic career. Local media reported that six people were briefly detained amid scuffles with the police.

“Right now, this so-called government is telling us that they inaugurated the new president, but there is no new president for us, for Georgian people who are standing here day and night,” protester Mariam Japaridze told Reuters.

“We have only one legitimate president, and this is Salome Zourabichvili,” she said.

Georgian Dream got almost 54% of the vote in October’s election, according to official results.

Local and international election monitors have said the vote was marked by violations that could have affected the results. Western countries have called for an investigation.

Zourabichvili is backed by the country’s four main pro-EU opposition parties, which have boycotted parliament since the election. They say she will remain the legitimate president until fresh elections are held.

The confrontation comes amid a month of protests sparked by Georgian Dream’s suspension of EU accession talks until 2028, abruptly halting a longstanding national goal of joining the bloc that is written into the country’s constitution.

The move touched off widespread anger among Georgians, who polls show are firmly pro-EU, and prompted a police crackdown, with over 400 people, including senior opposition leaders, detained.

Zourabichvili has accused Georgian Dream of deliberately sinking Georgia’s EU hopes and instead moving towards Russia, from which Georgia gained independence in 1991.

© Reuters. Mikheil Kavelashvili, elected by lawmakers as Georgia's new President, takes the oath during his swearing-in ceremony at the parliament in Tbilisi, Georgia December 29, 2024. REUTERS/Irakli Gedenidze/Pool

Opposition supporters say that under Zourabichvili, who was elected with Georgian Dream’s support in 2018 before breaking with the party in recent years, the presidency was the only institution in the country not ultimately under the control of ruling party founder Ivanishvili.

They say that with the installation of Kavelashvili, Ivanishvili will have total control over Georgia.

Stock Markets

Oil heads for weekly gains on colder weather, Chinese policy support

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By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices edged higher on Friday and were on track for weekly gains as cold weather in Europe and the U.S. as well as additional economic stimulus flagged by China helped push prices in the previous session to their highest in more than two months.

futures were up 69 cents, or 0.9%, at $76.62 a barrel by 12:49 p.m. ET (1749 GMT) after settling on Thursday at the highest level since Oct. 25. U.S. West Texas Intermediate crude gained $1.11, or 1.5%, to $74.24.

Brent was on track for a 3.3% weekly gain, while WTI was set for a 5% increase.

Signs of Chinese economic fragility heightened expectations of policy measures to boost growth in the world’s top oil importer.

“China just is unceasing at this point in terms of their announcements about trying to stoke economic activity, and the market’s taking note of that,” said John Kilduff, partner at Again Capital in New York.

Worries about Chinese demand were a factor in bearish demand assumptions last year, he added.

China announced a couple of new measures to boost growth this week with a surprise move to raise wages for government workers and the announcement of a sharp increase in funding from ultra-long treasury bonds.

The additional funding is to be used to spur business investment and consumer-boosting initiatives.

Oil is likely to have gained some price support from expected increased demand for after forecasts for colder weather in some regions.

“Oil demand is likely benefiting from cold temperatures across Europe and the U.S.,” said UBS analyst Giovanni Staunovo.

Also supporting prices, stockpiles dropped by 1.2 million barrels to 415.6 million barrels last week, EIA data showed.

Meanwhile U.S. gasoline and distillate inventories jumped as refineries ramped up output, though fuel demand hit a two-year low.

© Reuters. FILE PHOTO: A view of an oil pumpjack in a farmer’s field near Kindersley, Saskatchewan, Canada September 5, 2024.  REUTERS/Todd Korol/File photo

Holding back prices however, the dollar was on track for its best week in about two months, even as it dipped on Friday, on expectations that the U.S. economy will continue to outperform its peers globally this year and that U.S. interest rates will stay relatively higher.

Higher rates increase borrowing costs, which can cut economic growth and demand for oil.

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QNB Corp director Kenneth Brown buys shares for $3,968

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Following this purchase, Brown holds a total of 150,714 shares in QNB Corp. The company trades at a P/E ratio of 12.6 and has maintained dividend payments for 28 consecutive years. InvestingPro subscribers can access 6 additional key insights about QNBC’s valuation and growth prospects. The company trades at a P/E ratio of 12.6 and has maintained dividend payments for 28 consecutive years. InvestingPro subscribers can access 6 additional key insights about QNBC’s valuation and growth prospects. Following this purchase, Brown holds a total of 150,714 shares in QNB Corp.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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US data center electricity and water use to increase significantly by 2028: report

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Investing.com — U.S. data centers are expected to significantly increase their electricity and water usage by 2028, driven by the rising adoption of AI technology, according to a U.S. Department of Energy report.

The report forecasts data center electricity demand to rise by 13-27% annually, reaching 325-580 terawatt-hours (TWh), or 6.7-12% of total U.S. demand, by 2028.

This marks a sharp increase from 176 TWh in 2023, with AI servers accounting for much of the growth. demand from AI servers alone is expected to grow 4-8 times, surpassing conventional servers by 2028.

Water usage, primarily for cooling, is projected to increase even faster, by 17-33% annually, reaching 145-275 billion liters by 2028. The study highlights a shift towards water-cooled chillers to accommodate the higher energy density of AI-driven data centers.

The DOE study, conducted by the Lawrence Berkeley National Laboratory, underscores the rapid transformation in data center infrastructure, with substantial implications for energy and resource planning in the U.S.

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