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Ukraine prepares for harsh winter after Russian attacks on economy
Officials in Ukraine warned that the country is bracing itself for a harsh winter, as Russian attacks on its infrastructure and export industries compound a growing budget crisis. The Economy Minister Oleksandr Kravchenko stated that the damage to Russian infrastructure and fixed assets was estimated to be close to $10 Billion this year. In addition, the wider economic costs and de facto blocking of its ports are seen as about 1.5 percentage points on the gross domestic product. Kravchenko stated that "we anticipate a difficult winter, both in terms critical infrastructure which is destroyed by Russian attacks every day, as well as the overall economic situation in the country." He told diplomats, investors and officials at a YES Conference in Kyiv that "this all happens when the budget is very tight and fiscal?space is extremely constrained." Russia and Ukraine are increasingly targeting each other's economic assets and logistics networks to try and undermine the other's war efforts. Since more than two weeks, Russia has been launching near-constant attacks on Kyiv, using jet-powered drones that are faster. This has disrupted life, business, and government operations. Both Russia and Ukraine deny that they deliberately target civilians during air strikes. Moscow has also blocked Ukraine's Black Sea port by intensifying air strikes on the southern regions of the country. Kravchenko stated that the blockade could result in a loss of about $40 billion dollars in export revenues. Ukraine's major exports, agricultural products and steel and iron, are shipped through its Black Sea port. Budget Revenue Falls Behind The domestic budget has been under pressure as Russian attacks have damaged infrastructure and industry. Roksolana Piedlasa is the head of the budget committee of the parliament. She said that domestic revenue was $1.35 billion below expectations in the first eight month of the year. A quarter of these losses were recorded just in August. She said that the war is becoming more expensive and Ukraine cannot fully fund its defense needs with domestic resources as it did in previous years. In the first eight-month period of this year, Ukraine spent about $42 billion for its defence. This does not include in-kind support. Pidlasa stated that domestic revenue generation and borrowing from local sources only yielded $39 billion during this period. She said, "Unfortunately this year the war is so expensive that we cannot even cover our own share of the costs." She said that the daily cost of war increased to $190 million in this year, compared to $140 million by 2024, due to inflation, an increase in troop numbers, increasing social payments to families of fallen soldiers, and a higher consumption of ammunition. Ukraine will face a?funding gap for its defense through the end this year. The government is trying to find ways to reduce or delay non-military spending, and is in negotiations with its Western allies on financial support. But so far there hasn't been a clear solution.
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Moscow claims that it has hit ships and plants in Ukraine. Six people have been killed.
Officials said that Russian air strikes on Saturday in various Ukrainian regions killed six people and injured dozens. They also damaged infrastructure, residential buildings, and residential areas. In the last two months, civilian deaths in Ukraine have risen dramatically as Russia intensifies its attacks on infrastructure and 'power plants. Ukraine has attacked energy facilities and storage warehouses in remote parts of Russia, and both sides have targeted shipping. Vitaliy Bunechko is the governor of Ukraine’s Zhytomyr Region west of Kyiv. He said that a Russian attack on a grocery shop in Zvyahel killed two people. He said that two petrol stations, as well as a "foreign-invested enterprise" unidentified by him were also attacked. Volodymyr Zelenskiy, the president of Ukraine, reported earlier that attacks had been carried out in Kryvyi Rih and Zaporizhzhia?in the south-east. Ivan Fedorov is the governor of Zaporizhzhia Region. He said that two people have been killed and eleven injured in attacks on Zaporizhzhia, and other areas. Oleksandr Vilkul is the head of Kryvyi Rih’s military administration. He said that two people were killed overnight in attacks on?the city. The Russian military claimed that its forces had attacked Ukrainian steelmaker Zaporizhstal in the city of Zaporizhzhia. They also said they hit the Interpipe Steel Complex in Dnipro, several plants in Kryvyi Rih including the Northern Iron Ore Benefitation Works complex. It was impossible to independently verify the accounts of either side. Oleh Kiper said that in Odesa Region 37 people including an infant were injured overnight. Two people are missing. The Russian Defence Ministry stated that Moscow's forces have continued their strikes against Ukrainian ports. It claimed to have hit a cargo vessel in Odesa, which was carrying military goods. The ministry announced earlier in the day that its forces had hit two cargo ships overnight in the Black Sea port of Chornomorsk. Ukraine's military claimed it had caused a fire at one of Russia's biggest synthetic?rubber manufacturers in Togliatti?in the Samara area. It said that the Togliattikauchuk factory specialised in producing synthetic rubbers and fuel additives used in fuel for Russian missiles. Interfax reported that Russian regional governor Vyacheslav Federishchev claimed that Ukrainian drones had attacked industrial facilities in the?Samara Region, but did not specify which ones or whether they were damaged. Ilya Sukhikh, the mayor of Togliatti, in Samara Region, reported that several residential buildings had been?damaged, and one person injured. Svetlana Kambulova, the local mayor, told TASS that four commercial properties in Taganrog, in the Rostov Region, were also set ablaze.
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Iceland could ban whaling, leaving Norway and Japan in isolation
Iceland's Government will present a bill?on whaling in February that could ban it. This move?would leave Norway and Japan the only countries in the World to continue commercial whaling. Animal welfare activists and Hollywood celebrities have been protesting against Icelandic whaling for years. The government, which holds a majority in parliament, announced on its website that it is examining possible options for updating its whaling laws, paying particular attention to the option of an outright ban. According to Humane World for Animals (an animal welfare group which tracks the catches), 80 fin whales have been caught in this year's hunt season. This runs from June until the end of the month of September. The quota allows for 150 fin whales to die this year. Wendy Higgins is a spokesperson for Humane World for Animals. She said that there was a lot of public and political support for the bill. There are also compelling ethical, legal, veterinary and conservation reasons for hoping it passes. The International Union for Conservation of Nature has classified fin whales as vulnerable. Iceland's interim Government issued a license for five years to its sole remaining whaling firm in 2024. According to the International Whaling Commission, only Japan, Norway, and Iceland have engaged in 'commercial whaling' over the past few years. Iceland and Norway both resumed commercial whale hunting in 2006 despite an international moratorium in place since 1986. Japan withdrew in 2019 from the International Whaling Commission and resumed commercial whale hunting in its territorial waters and exclusive economic zones. The moratorium allows indigenous peoples to hunt whales in certain parts of the world such as Greenland or Alaska because whale products are vital for their cultural and nutritional lives.
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Trump claims that Iran is likely responsible for the attack on Saudi pipeline
U.S. President Donald 'Trump' said on Saturday that Iran is probably responsible for the aerial attack that shut down Saudi Arabia's East-West Pipeline, which was one of the Kingdom's main routes for exporting oil while bypassing the Strait of Hormuz. When asked by reporters in Dublin if Iran is?responsible? for the attack on a?vital oil pipeline, Trump replied: "I think that they are. They probably?are." The President of the United States, Donald Trump, also said that he had spoken with Saudi Crown Prince Mohammed bin Salman. He described him as a "good friend." The?U.S. Trump said that the Iran-aligned Yemeni?Houthis called his administration and expressed their desire to not have the United States directly involved in this conflict. "They'd much rather not have us involved and are letting the majority of?ships through." Trump added that there's "just one" country with which they aren't too pleased.
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US court rejects Trump administration's bid to keep Michigan coal plants open
On?Friday, a federal appeals court threw out a President Donald Trump administration order that had?forced a Michigan coal-fired plant to stay open past its planned retirement date. According to court documents, a unanimous?ruling?by a three-judge panel of the U.S. Court of Appeals 'for 'the District of Columbia Circuit determined that the Department of Energy had exceeded its authority in a rarely invoked emergency provision of federal legislation. Michigan challenged the DOE order after DOE instructed J.H. Campbell plant to stay online in 2025, shortly before the planned closure. The decision is a blow to the administration's efforts to maintain coal-fired power at a moment when the demand for electricity in the United States has increased due to the expansion of data centers. The coal-fired electricity is one of the biggest sources of carbon dioxide that contributes to climate change. "By forcing its continued operation, DOE attempted a tactic never before used to illegally support the aging J.H. Campbell coal plant, which nobody wanted to keep. Ratepayers are now stuck with the bill for an aging facility that should have retired over a year ago. "I'm relieved that the Court saw right through this façade and overturned DOE's order, which had no basis in reality," said Michigan Attorney?General Dana Nessel. The Trump administration has been using emergency powers under the Federal Power Act since 2025 to continue operating coal plants that were scheduled for retirement in Michigan, Indiana and Washington State, as well as those in Colorado, Washington State, Washington, and Michigan. DOE did not immediately respond to an inquiry for comment. This decision comes one month after DOE extended an emergency order to keep J.H. Campbell Generating Plant will remain open until November 14. Consumers Energy's plant was scheduled to close by 2025, because it "wasn't economically viable." According to the Michigan Attorney General's Office, the utility spent $295 million between May 2025 and June 2026 on its continued operation. Brian Wheeler, spokesperson for Consumers Energy, said that the company is reviewing this ruling. He said that "while that happens, we will continue to comply with the 90-day Department of Energy Order that keeps the Campbell Plant operating." Environmental groups have welcomed the ruling. Michael Lenoff of Earthjustice said that the 'DOE should stay within its lane and only use emergency powers in actual emergencies. "An emergency power should not be used to prevent the retirement of coal plants due to market forces in order for a coal-friendly agenda to gain traction."
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USDA cuts corn harvest forecast after hot summer weather
The U.S. Department of Agriculture announced on Friday that U.S. farmers will harvest less corn this fall than they had previously anticipated, following hot weather during the summer. Prices recently reached a 'three-year high' due to uncertainty over the size of the crop. Farm diesel fuel is used to run harvesting equipment by farmers. Diesel prices are also at record highs, above $6 per gallon, as they prepare for the harvest of crops in Midwestern fields. Jim McCormick is the chief operating officer of AgMarket.net. He said that "the cost to get this crop out has gotten really expensive." In a report published monthly, the USDA said that farmers will harvest 15,8 billion bushels (or 178.5 bushels) of corn and 4,535 billion bushels (52.8 bushels) of soybeans. USDA estimated corn production in?August at 16.013 billion bushels with an average of 180.7 bushels/acre and soybean production was 4.519 billion with an average yield?of 52.7 bushels. Analysts said USDA could lower its crop estimates further in future reports. Corn futures prices briefly rose on the Chicago Board of Trade. Jim Gerlach of A/C Trading said, "It is not a bad harvest?but by a wide margin it's less than last year's." Farmers have enjoyed the highest prices for about three years, due to uncertainty over U.S. grain yields and disruptions in Russian and Ukrainian grain exports out of the Black Sea area. Prices for soybeans reached a three-year peak on Friday, thanks to optimism over Chinese?demand ahead of a'summit' between Donald Trump and Xi Jinping. USDA increased its estimates of average U.S. corn prices by 60 cents per bushel and 30 cents per bushel. Farmers who face fuel and fertilizer prices that have skyrocketed since the U.S. began its war against Iran, causing trade disruptions in the Strait of Hormuz, are not guaranteed to make a profit. Many farmers order fuel and supplies for spring planting. Randy Place, an analyst with?the Hightower Report, says that "this is not the time for a large rally" of these prices. It is unclear whether crop prices can remain high for a long time to offset the steep input costs, and reverse the downturn of the agricultural economy in the last four years. Both growers and economists agree that the current business climate is one of the worst since 1980s, when a wave foreclosures and bankruptcy crippled U.S. Farmers. STOCKS ENDING TIGHTEN A lower estimate of corn production could help support prices. According to a poll, analysts had expected a corn harvest of 15,785 billion bushels with a yield average of 178.2 bushels/acre and a soya bean crop of 4,501 billion bushels with a yield average of 52.5 bushels/acre. USDA estimates that U.S. ending corn stocks will reach 1.567 billion bushels by August 31, 2027, after crops are exported to feed livestock in the U.S. and make biofuels. Stocks of soybeans were estimated to be 310 million bushels. Analysts expect 2026-27 corn stocks to be 1.528 billion bushels and soybean stocks to be 298 million bushels. The USDA estimated?corn stock at 1.653 billion?bushels and soybean stocks at 318 million?bushels in August. USDA estimates that the 2026-27 wheat ending stocks will be 717 million bushels. This is unchanged from August, and slightly lower than analysts' expectations (719 million bushels). USDA has lowered its estimate of wheat exports to Ukraine and Russia by 1 million tons metric tons each, as compared with a month earlier.
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White House official: Russian official will attend G20 Energy meeting in Houston next Week, White House official claims
An official from the White House said that a Russian official would attend a G20 Energy meeting in Houston next Friday. The U.S. invited 'Russian Finance minister Anton Siluanov' to a G20 meeting in North Carolina last month. This was the first time that Russia had sent a finance minister to the forum since the Russian invasion of Ukraine in 2022. The G20 Ministerial Meeting on Energy Abundance is scheduled to take place between Monday and Wednesday. U.S. officials attending include Interior Secretary Doug Burgum; Energy Secretary Chris Wright; and Jarrod Agen, a White House official. The White House has not yet announced who will be attending the next-week's meeting in Russia. Attendees will include energy officials from Europe and Asia. Auditors said that the European Union's efforts to become independent of Russian oil and gas have faltered, as it enters winter with "unusually low" gas stocks. The wars in Ukraine and Iran, despite the meeting's name, have caused energy security to be a concern for many countries. The price of U.S. Diesel has reached a record of $6 per gallon, and the Strait of Hormuz is largely closed for oil and gas shipments. Donald Trump, the U.S. president, said on Wednesday that he and Russian President Vladimir Putin had a 'great' conversation earlier in the week. He also stated that Putin wanted to make a pact with the U.S. in order to end the conflict in Ukraine. Intelligence officials in the U.S. and Europe, as well as in Ukraine, doubt that Putin is serious about ending "the war" despite recent visits by U.S. ambassadors to Moscow and Kyiv. It is likely that the U.S. House of Representatives, during the G20 summit, will vote 'on new Russian sanctions. But it is not clear if this bill will be passed by the chamber - as it was in the u.s. Senate. The Trump administration imposed sanctions on Russia for its war in Ukraine, first blocking transactions and freezing assets at its two largest oil companies, Rosneft, and Lukoil, in October 2025.
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US court rejects Trump administration's bid to keep Michigan coal plants open
On Friday, a federal appeals court overturned an order of the Trump administration that would have forced a Michigan coal plant to stay open past its scheduled retirement date. According to court documents, a unanimous decision?by a panel of three judges?of the U.S. Court of Appeals for?the District of Columbia Circuit?found that the Department of Energy had exceeded its authority in a rarely-used emergency provision of federal legislation. Michigan challenged the DOE order after DOE instructed that the plant remain online in 2025, shortly before its planned closure. The decision is a blow to the efforts of the administration to maintain coal-fired power in the face of?soaring U.S. electricity demand tied to the expansion data centers. The coal-fired power industry is one of the largest contributors to climate change, with carbon dioxide emissions. The Trump administration has been using emergency powers under the Federal Power Act since 2025 to keep a number of aging power plants that were slated for retirement running, including coal plants in Michigan and Indiana. DOE did not respond immediately to a comment request. The DOE made the decision a month after extending the emergency order for the J.H. Campbell Generating Plant will remain open until November 14. Consumers Energy's plant was scheduled to close by 2025, as it was no long economically viable. According to the Michigan Attorney General's Office, the utility spent $295 million between May 2025 and June?2026 on its continued operation. Consumers Energy will review the ruling, said spokesperson Brian Wheeler. He said that "while that happens, we will continue to comply with the 90-day Department of Energy Order that keeps the Campbell Plant operating." A spokesperson for Michigan’s Attorney General did not respond immediately to a comment request. Michael Lenoff said, "The DOE must stay within its boundaries?and only use its emergency powers?in real emergencies" in a recent statement. Michael Lenoff is an attorney for the environmental group Earthjustice. "Preventing market-driven retirements to advance a coal friendly agenda is not an appropriate use of emergency power."
US consumer inflation is stable before the Iran conflict increases oil prices
U.S. consumer price rose modestly in February, as rents continued to increase at a steady pace. However, households had to pay more for gas and groceries. And higher costs will be in store due to the escalating Middle East war.
The Labor Department's Consumer Price Index Report on Wednesday also showed that inflation was muted in the month prior to the U.S.-Israeli strikes against Iran. Tehran retaliated against the attacks that took place at the end of February and has subsequently pushed up oil prices.
AAA data showed that gasoline prices had risen by 20% since the start of the war, to $3.58 a gallon. Gasoline prices had been increasing in anticipation of hostilities in Middle East.
The Federal Reserve is expected to hold interest rates at the same level next week, according to economists.
Ellen Zentner is the chief economist at Morgan Stanley Wealth Management. She said that a steady inflation rate would be welcome on any day. But, with geopolitical unrest and soaring oil prices, this data may not have the same weight, either in the markets or among the Fed.
Bureau of Labor Statistics of the Labor Department reported that Consumer Price Index increased 0.3% in February after increasing 0.2% in January. CPI increased by 2.4% in the 12-month period ending February. This is the same as the increase of January, and reflects the removal of high readings from last year. The CPI increase was in line with expectations.
In order to achieve its inflation target of 2%, the U.S. Central Bank tracks Personal Consumption Spending price indexes.
After a similar increase in January, the rise in CPI was reflected in a 0.2% rise in owners' equivalent rental of primary residence. The primary rents rose by 0.1%. This is the lowest gain since January 20,21. Economists argued, however, that the October inflation data was not collected due to last year's shutdown of government, which caused rents to be distorted.
In normal times, this would not be a problem, said Gregory Daco, chief economics at EY-Parthenon. "These are not normal times. The data should be interpreted in light of the distortions caused by the government shutdown, the unprecedented volatility in trade policy, and the record swings in oil prices linked to the Middle East conflict."
Daco estimates that the 43-day record shutdown last year caused CPI inflation to understate by approximately 0.3-0.4 percent points. After two consecutive months of declining gasoline prices, the price increased by 0.8%. The price of oil soared to well over $100 per barrel in the first part of this week before falling back. On Wednesday, oil prices recovered as traders questioned whether the International Energy Agency proposal to release record amounts of reserves would be able to offset any potential supply shocks caused by the Iran War.
Economists expected gasoline prices to reach $4 per gallon in the near future. Electricity prices, though they eased monthly, jumped by 4.8% compared to a year earlier due to the strong demand for artificial intelligence from data centers. Last month, prices for household gas soared by 3.1%. Prices for gas piped to households rose 10.9% on an annual basis.
Last month, food prices increased by 0.4%. This was largely due to a 3.7% increase in the price of chewing gum and candy. Fruit and vegetable costs increased by 1.4% while non-alcoholic beverages went up 0.8%. Prices for dairy products and other related items dropped by 0.6%, while cereals and baked goods fell by 0.2%. Prices of food are 3.1% more expensive than they were a year earlier.
RISE IN FOOD AND GASOLINE PRICE IS IMPACTING CONSUMERS
The Trump administration highlighted the moderate increases in CPI as an indication of a cooling of overall inflation. A White House spokesperson posted on social media that "the nation will see even greater economic progress" once the disruptions caused by war are over.
The rising food and gasoline prices pose a risk to Trump's Republican Party as they prepare for the November midterm elections.
The Wall Street stock market was mixed. Dollar rose against a basket currency. The yields on U.S. Treasury bonds were higher. The CPI increased as well, despite the staggered, but continued pass-through of Trump's sweeping Tariffs. Trump imposed them under a law intended for national emergencies, that has since been ruled unconstitutional by the U.S. Supreme Court.
The Institute for Supply Management's surveys show that input costs have been steadily rising. Trump responded to the Supreme Court ruling by imposing an initial 10% global tariff. He said that this would increase to 15%.
The CPI rose 0.3% in January, but gained only 0.2% when the volatile energy and food components are excluded. Core CPI inflation was slowed by the third consecutive monthly decrease in motor vehicle prices as well as a smaller increase in rental rates.
The cost of furniture and household operations increased by 0.3%, while apparel prices rose 1.3%. This is due to the import duty pass-through.
Healthcare costs rose 0.5%. Hospital services increased by 0.6%, while prices for physician's services rose 0.3%. ?Prescription prices, however, fell 0.2%. Hotel and motel room prices rose by 1.1%. The cost of airline tickets increased by 1.4%, and it is possible that they will rise even more as jet fuel prices are likely to increase due to the war.
The core CPI rose 2.5% in the 12 months to February after increasing by the same margin of 2.5% in January. This also reflects favorable base effects. The tame core CPI readings are unlikely to translate into modest core PCE inflation gains for February, according to economists. This is because different weightings and unexpectedly strong service prices in January's Producer Price Index report may have contributed.
The delayed January?PCE data, due this Friday, is expected to show an increase in core inflation. The PCE data for February will be released on 9 April. The core PCE is expected to increase by 0.5% in January and 0.4% in February, according to economists.
James McCann is a senior economist at Edward Jones, who specializes in investment strategy. He said that another setback in inflation will likely make the central banks more cautious about further interest rate reductions. The Fed could still cut rates this year but the story is increasingly looking like it will be in late 2026 based on inflation expectations.
(source: Reuters)