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Senegal President sacks Prime Minister Sonko and dissolves the government after months' friction
Senegal's President Bassirou Diomaye Faye dismissed Ousmane sonko on Friday and dissolved his government. This move could deepen uncertainty in the country, which is already dealing with a debt crises and long-drawn out talks with the International Monetary Fund. According to Oumar Sambo Ba, the secretary-general of presidency, a statement read by state media stated that all ministers had been dismissed. The outgoing government was tasked with managing day-today affairs. The decision follows months of growing tensions between the two allies-turned-rivals. Sonko is a charismatic leader with a large youth following. He backed Faye for the 2024 elections after being banned from running due to a conviction for defamation. Sonko posted on social media after the announcement: "Tonight, I will sleep in Keur Gorgui with a light-hearted heart," referring his residence. Senegal is under increasing economic pressure. After discovering that Senegal had misreported its debt, the International Monetary Fund frozen its $1.8 billion loan program. This pushed the country's debt to end-2024 at 132% of its economic output. Faye’s decision increases the risk of further delay in reaching an agreement with the IMF. This is seen as crucial to revitalizing the economy. Before Sonko was dismissed, Finance Minister Cheikh Dibi told the Senegal parliament that the country expects to resume discussions with the IMF during the week of the 8th and hopes to reach an agreement on the key points before June 30. Diba warned that the country's fuel subsidies bill could surpass its budget allocation for 2026 by up to 1.15 trillion CFA Francs ($2billion) if oil price rises to $115 a barrel. He added that Sonko rejected his request to increase fuel prices. Sonko was against any restructuring of debt estimated at $13 billion that he claimed the IMF advocated, whereas Faye had been more vocal. SONKO'S FUTURE POLITICAL PROSPECTION Sonko, who was popular as an opposition leader during the administration of former President Macky Sall whose decision to postpone the 2024 elections caused unrest, became a prominent figure in the country. Faye, as well as Sonko, are both former tax officials that were imprisoned in anticipation of the elections scheduled for 2024. The two were released ten days before the rescheduled election, which Faye won with 54%. Faye appointed Sonko Prime Minister. It is not clear what Sonko's next move will be now that he is no longer in a government position. He said in March that he was willing to remove his Pastef Party from the government if Faye left the party's agenda, which fueled speculation about the men's unresolvable power struggle. Pastef is the majority in the National Assembly. This could complicate the process of securing IMF assistance and the passage necessary reforms. Last month, lawmakers approved changes to the electoral code that could allow Sonko run for president by?2029. One of the signature initiatives of Senegal’s anti-establishment pan-Africanist Prime Minister was an audit on Senegal’s resource deals. This included those that govern its?emerging?oil and gas sector. Sonko revoked 71 mining licences in March after declaring a BP Gas contract for the Greater Tortue Ahmeyim Project unfair. He argued that renegotiating the oil and gas contracts could lower energy prices in Senegal and help to rebuild its battered finances. Reporting by Anait Miridzhanian and Diadie B; Editing and production by Bate Felix and Jessica Donati; Robbie Corey Boulet, Portia Crowe, and Sanjeev Mglani
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Six Lebanese doctors killed by Israeli attacks in 24 hours: Health Ministry
Lebanon's Health Ministry said that six Lebanese Paramedics died in two Israeli attacks on southern Lebanon within 24 hours. The ministry condemned the attacks, calling them a 'violation of international law. The ministry reported that an Israeli strike in the southern Lebanese city of Hanaway overnight on Thursday and Friday killed four paramedics with the Islamic Health Association. The ministry reported that two medics of the Al-Rissala Scouts Association from Deir Qanoun-en-Nahr were killed by an Israeli strike on Friday morning. The Israeli military claimed that it struck Hezbollah sites in Hanaway where "militants from the group" were present. The Israeli military claimed that soldiers in Deir Qanoun En-Nahr identified and killed two Hezbollah motorcycle militants. In both incidents, it said that the military was investigating claims that "several individuals who were not targets of the strikes were injured". The military said that it had taken steps to minimize potential civilian harm, including ordering the residents of both areas to leave. The Lebanese Health Ministry?distributed video footage that they said was taken in Deir Qanoun En-Nahr. It showed two men wearing yellow vests standing by the side of a road, tending to someone. A flash and loud boom are heard when an ambulance approaches these two men. These same men then lie on the ground. The buildings, trees, and road layout matched the archive images of the area. According to the health ministry, six people died in Deir Qanoun en-Nahr including two medics and one Syrian child. Airstrikes in the town killed 14 people earlier this week, making it the deadliest strike since last month's tenuous ceasefire. Since March 2, when the?armed group Hezbollah? fired at Israel as part of a new conflict, more than 3,100 people in Lebanon have died. According to the statistics released by the Health Ministry on Friday, 123 doctors, 210 children, and almost 300 women are among those who have died. The international humanitarian law protects frontline responders and civil infrastructure including hospitals. According to the World Health Organization, Israeli airstrikes have damaged or completely shut down several hospitals in southern Lebanon. According to the Health Ministry, on Thursday, a strike by Israel near the Tebnine Hospital, in southern Lebanon, damaged the entire?three-floor building. This included the emergency room and intensive care unit as well as the surgical ward, ambulances, and the outside parking lot. Reporting by Maya Gebeily, Catherine Cartier and Tansy Liu in Beirut; Eleanor Whalley and Rami Ayyub from Jerusalem; Editing and Chiara Rodriquez by Cynthia Osterman and Cynthia Osterman
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Investors focus on progress in US-Iran negotiations as stocks climb and yields fall
Investors weighed the chances of a deal to end the U.S. and Israeli war against Iran in the near future. Oil prices have risen, but the Iran negotiations remain uncertain. U.S. Secretary of State Marco Rubio stated that the United States had seen some progress towards a deal with Iran but still needed more work. Iran's Foreign Ministry spokesperson stated that the differences between both sides were significant and deep. The Pakistani military chief arrived at Tehran on Friday in order to continue his mediation efforts for a peaceful resolution of the conflict. Wall Street saw the Dow post a record-breaking closing high and the S&P 500 register an eighth consecutive week of gains. The booming demand for AI stocks has pushed the stock market higher, despite concerns over economic fallout. European shares closed at their highest level in more than a week and posted their largest weekly gain since seven. "You are starting to see an increasing negative correlation between stock prices and bond yields," said Anthony Saglimbene. Chief market strategist at Ameriprise. Now that earnings season is over, macro-conditions may play a larger role. The yield on the benchmark 10-year U.S. notes dropped 2.6 basis points, to?4.558% from 4,584% at late Thursday. The sell-off that began the week led to yields reaching months-or-years-long highs. On Tuesday, the yield for the 10-year note reached its highest level since January 2025. Investors worry that the ongoing disruptions in energy supply due to the conflict could affect core consumer prices and force a tightening of monetary policy. The Dow Jones Industrial Average gained 294.04 points or 0.58% to 50,579.70. The S&P 500 rose 27.75 points or 0.37% to 7,473.47. And the Nasdaq Composite gained 50.87 points or 0.19% to 26,343.97. MSCI's global index of stocks rose by 5.66 points or 0.51% to 1,112.55. The pan-European STOXX 600 rose by 0.73% thanks to technology stocks. Turkey's financial market?rebounded this week after being roiled by political moves made against the country’s main opposition. The BIST 100 index, the benchmark in Istanbul, rose by 4.9% after it fell 6% on Thursday. This was triggered by a court order to remove main opposition leader Ozgur Ozel. Oil up, U.S. Consumer Sentiment Down Investors also digested an?survey that showed U.S. Consumer sentiment plummeted?to a new record low in may as surging gas prices fuelled anxieties over worsening affordability. Oil prices finished higher. U.S. crude oil rose 25 cents, settling at $96.60 per barrel. Brent gained 96 cents, settling at $103.54. As traders watched the talks about the war, they also assessed whether the U.S. Federal Reserve will raise interest rates in the event of inflation continuing to rise. Kevin Warsh became the Fed's chair on Friday. The dollar index (which measures the greenback against a basket including the yen,?the euro and other currencies) rose by 0.04% on Friday to 99.24. Meanwhile, the euro fell?0.06%, at $1.1611. The dollar gained 0.11% against the Japanese yen to reach 159.13. Data released on Friday revealed that Japan's core rate of inflation fell to its lowest level in four years in April. This complicates the outlook for Bank of Japan policies. Spot gold dropped 0.78%, to $4,606.47 an ounce.
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IAEA reports fire in electrical substation caused by military activity
U.N. nuclear watchdog stated on Friday that Ukrainian authorities had informed them that an electrical substation fire was caused by military activity. This led to a partial disconnect of a nuclear power plant from off-site electricity. Firefighters were fighting the fire at Dniprovska's 750-kilovolt substation, according to the International Atomic Energy Agency. The IAEA announced on its social media platform X that "as a consequence, a nuclear power plant operating in South Ukraine was partially disconnected from the off-site power supply at the request by the grid operator." "Firefighters have been deployed to the substation in order to put out the fire." The statement did not give any details about the military activity. In the statement, IAEA Director general Rafael Grossi expressed "deep concern" and added that "such critical substations for nuclear safety should never be targeted." The Dniprovska Substation supplies?external?power for the South Ukraine plant, as well as Zaporizhzhia Nuclear Power Plant. Both were seized by Russia after its February 2022 invasion. Both sides accuse each other of taking military actions to undermine the nuclear safety in Zaporizhzhia. This week, the head of Russia's nuclear state corporation Rosatom said that the situation at the Zaporizhzhia facility was approaching a "point of non-return" because of increased Ukrainian attacks. The Zaporizhzhia Plant, Europe's biggest with six reactors and no electricity generated, needs power to keep the nuclear fuel cool. Since March 24, one of the external lines at the Zaporizhzhia Plant, also known as Dniprovska has been down. The IAEA is trying to negotiate a ceasefire so that repairs can be carried out. According to a source in the industry, Ukraine has three nuclear power plants that are currently operational. Since the Russian invasion, Ukraine's reliance on nuclear power has increased to as much as 80%. (Reporting and editing by Alison Williams in Bengaluru, Ron Popeski, Nick Zieminski).
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Brazil cancels planned pre-salt sale this year
Bruno Moretti, Minister of Planning in Brazil, said that the government had decided to not hold an auction for offshore pre-salt oil areas this year. At a press conference he said that the government had removed an estimated 31 billion reals ($6.18 billion), in revenue, from its new budget projections for this year. Moretti stated, "We will revisit the issue and structure the auction. It will be relevant to help us meet our primary balance targets in the future fiscal year." The auction covered oil fields that were already producing but not yet contracted. This effectively gave companies the right of profiting from increased output. A similar auction last year raised 7,8 billion reais, but fell short of the initial expectations. Moretti stated that the decision to postpone auction was a result of feedback from the market participants who view the model as "relatively novel and still evolving". Minister said that the government found it difficult to proceed in this environment of increased uncertainty and volatility in oil prices, linked to the U.S./Israel conflict with Iran. FUEL SUBSIDY Moretti said that President Luiz inacio Lula da So Paulo is expected to?clear on Monday an already announced gasoline subsidy intended to cushion consumers from the Middle East conflict, after CEO of state-run petroleum giant Petrobras indicated a future fuel price increase. The subsidy is 0.44 reais for each litre, with an estimated cost to the federal budget of 1.2 billion?reais per month, Moretti stated. He added that the measure also depends on a future Finance Ministry decree. The plan will see the subsidies initially?paid to producers of gasoline and?importers via the oil regulator ANP. Moretti responded that the company is responsible for the size of any adjustment. ($1 = 5,0191 reais). (Reporting and editing by Nia William; Marcela Ayres)
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Investors focus on US-Iran discussions as stocks rise and yields fall
Investors weighed the likelihood of a short-term agreement to end the U.S./Israeli war against Iran as they viewed the major stock indexes. As uncertainty about the Iran talks continued, oil prices rose. U.S. Secretary?Marco Rubio stated that although the United States have made some?progress? towards a deal with Iran, more work needs to be done. Diplomatic efforts have intensified in an effort to put an end to the conflict that started late February. Iranian media reported that Iran's Foreign Minister met Pakistan's Interior Minister on Friday to discuss ideas to end the U.S. - Israel war. Wall Street saw the Dow reach a new record high, for the first since the Iran War began. The S&P 500 also was on course for its eighth consecutive weekly gain. The demand for AI stocks has pushed the stock market higher, despite concerns over economic fallout. The European share market finished the week at its highest level since more than a fortnight and posted their largest weekly gain in seven weeks. Although the gap between Iran and the United States has narrowed, there are still some sticking points regarding Iran's enriched Uranium and the Strait of Hormuz. Investors worry that energy disruptions could lead to higher consumer prices and a tighter response from the monetary policy. Geopolitical issues are causing a lot to be waited on. Some people are waiting, but the market believes that it will all be resolved at some point, said Tim Ghriskey senior portfolio strategist of Ingalls & Snyder, New York. He said that "you might see some pressure to sell" towards the end of?the day, ahead of the long U.S. holiday weekend. The U.S. bond and stock markets will be closed on Monday to observe Memorial Day. The Dow Jones Industrial Average increased 365.00 points or 0.73% to 50,653.60. The S&P 500 gained 35.06 points or 0.47% to 7,480.98. And the Nasdaq Composite advanced 76.05 or 0.29 to 26,369.15. The MSCI index of global stocks rose by 6.60 points or 0.60% to 1,113.49. Technology stocks helped the pan-European STOXX 600 Index rise 0.73%. The yield on the benchmark U.S. 10 year notes dropped 2.6 basis points from 4.584% to 4.558% late Thursday. Early in the week, a sell-off led to yields reaching months-or-years-long highs. The 10-year yield reached its highest level on Tuesday since January 2025. Turkey's financial market rebounded following a week of political turmoil against the main opposition party. The BIST 100 index, the benchmark in Istanbul, rose by 4.5% after a 6% drop on Thursday. This had led to a suspension of trades?after an order from a high court was made?to remove main opposition leader Ozgur Ozel. Oil prices are up, but US consumer sentiment is down. Investors have also taken into account a survey that showed U.S. consumers' attitudes plunged to an all-time low in May due to the escalating gasoline price. This has fueled fears about affordability. Oil prices finished higher. U.S. crude oil rose 25 cents, settling at $96.50 per barrel. Brent gained 96cents to settle at $103.54. As traders watched the talks about the war, they also assessed if the Federal Reserve would increase interest rates in the event of an acceleration in inflation. Kevin Warsh, the new Fed chairman was sworn-in on Friday. The dollar index measures the greenback in relation to a basket of currencies including the yen, the euro and others. The euro fell 0.09% to $1.1608, while the dollar rose 0.07%. The dollar gained 0.11% against the Japanese yen to reach 159.13. Data released on Friday revealed that Japan's core rate of inflation fell to its lowest level in four years in April. This complicates the outlook for Bank of Japan policies. Spot gold dropped 0.73%, to $4,508.00 an ounce.
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Investors focus on US-Iran negotiations as stocks climb and yields fall
Investors weighed the chances of a short-term agreement to end the U.S./Israeli war against Iran. As uncertainty remained surrounding the Iran talks, oil prices rose. U.S. Secretary Marco?Rubio stated that although the United States have made some progress towards a deal with Iran, more work needs to be done. Diplomatic efforts were intensified in order to put an end to the conflict that started late February. Iranian media reported that Iran's Foreign Minister met Pakistan's Interior Minister on Friday to discuss plans to end the U.S. - Israel war. Wall Street saw the Dow reach a new record high, for the first since the Iran War began. The S&P 500 also was on course for its eighth consecutive weekly gain. The booming demand for AI-related stock has pushed stocks higher, despite concerns over the economic impact of the war. There are still some'sticking points' between Iran and the United States over Iran’s enriched Uranium and its control of the Strait of Hormuz. Investors worry that energy disruptions could lead to higher consumer prices and force a tighter response from monetary policy. Geopolitical issues are a big wait. This is keeping many people away, but the market overall believes that it will all be resolved at some point," said Tim Ghriskey. He said that "by the end of today, you may see some pressure on sales" in anticipation of the long weekend ahead. He said. The U.S. bond and stock markets will be closed on Monday to observe Memorial Day. The Dow Jones Industrial Average rose by 369.12 or 0.73% to 50,654.78, while the S&P 500 gained 43.59 or 0.58% to 7,489.09, and the Nasdaq Composite increased by 164.55 or 0.63% to 26,457.65. The MSCI index of global stocks rose by 7.21 points (0.65%) to 1,114.10. The pan-European STOXX 600 Index rose 0.8%. The yield of the benchmark 10-year Treasury bill was down 3.4 basis point (bps) to 4.552%. The 10-year Treasury yield reached its highest level on Tuesday since January 2025, after a sell-off in the early part of the week. Turkey's financial market rebounded following a week of political turmoil against the main opposition party. The BIST 100 index, the benchmark in Istanbul, rose by 4.5% after it fell 6% on Thursday. This had led to a suspension of trades following a decision by a high court to remove main opposition leader Ozgur Ozel. US CONSUMER SENTIMENT DOWN, OIL UP Investors digested also a survey that showed U.S. Consumer Sentiment plunged to record lows in May, as rising gasoline prices fuelled anxieties about affordability. The oil price was higher but still on track to lose money for the week. U.S. crude oil rose by 1.34%, to $97.64 per barrel. Brent was up to $104.08 a barrel. As traders watched the talks about the war, they also assessed whether or not the Federal Reserve will raise interest rates in the event that inflation continues to increase. The dollar index, which measures greenbacks against a basket?currencies including the yen, the euro and others, increased by 0.12%, reaching 99.32. At $1.16, the euro fell by 0.15%. The dollar gained 0.1% against the Japanese yen to reach 159.12. The Bank of Japan is likely to be more cautious in its policy decisions after Friday's data showed that Japan's core rate of inflation fell to a record low of four years. Spot gold dropped 0.6% to $4,414.00 an ounce.
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Fear of rising costs of living drives US consumer sentiment down to record low
U.S. consumer confidence fell to a new record low in may as rising gasoline prices tied to the "Iran War" intensified affordability worries, underscoring broader dissatisfaction over President Donald Trump's economic management. University of Michigan Surveys of Consumers, conducted on Friday, showed that?sentiment between Republicans and Independents had dropped to its lowest level since Trump's second tenure. Trump's promise to lower inflation was a major reason he won reelection in 2024. However, Americans are now paying more for his tariffs as well as the U.S. and Israeli war against Iran. The conflict, which has lasted for almost three months, has caused disruptions in shipping along the Strait of Hormuz. It also increased energy prices and strained global supply chains, leading to shortages of many goods including consumer products, fertilizers and aluminum. AAA data shows that the national average retail price of gasoline has increased by more than 50% in just three months, to $4.552 per gallon. Heather Long, Chief economist at Navy Federal Credit Union, said that "American consumers are angry over the economy." "They dislike high prices for basic necessities." Surveys of Consumers at the University of Michigan reported that its Consumer Sentiment Index fell to 44.8 in the final reading, a new low. It was 48.2 this time last month. In April, the index stood at 49.8. The economists polled had predicted the index to remain unchanged at 48.2. The Republican mood has deteriorated to its lowest level since November 20,24. This is a trend that was mirrored by other independent surveys. A recent /Ipsos poll showed that Trump's approval rating as president fell to its lowest level since his return to the White House. This was due to a decline in Republican support. Growing discontent among Republicans is a warning for Trump and the Republican Party, as they try to maintain their majority in November's midterm elections. University of Michigan Surveys of Consumers revealed that Democrats' moods remained unchanged. The mood of lower-income consumers and those with no college degree has declined markedly. These groups are the ones who are most affected by rising gasoline prices and other essentials. The cost of living is still a major concern for consumers. 57% of them spontaneously mention that high prices are affecting their finances. This is up from 50% the previous month, according to Joanne Hsu. Investors shrugged the slump in sentiment. The Dow Jones Industrial Average, the blue-chip stock on Wall Street, reached a new record high. The dollar was stable against a basket currency. Treasury yields in the United States increased. NO CHEER FROM STOCK MARKET RALLY The stock market's rising share prices haven't been a source of joy for consumers. Economists note that the majority of wealth is in retirement accounts. Concerns are raised that inflation is outpacing wage increases and could reduce spending. The consumer spending has remained resilient, thanks in part to tax refunds that are hefty and the fact that households have been able to draw down their savings. The tax filing season has ended and economists don't believe consumers will continue to use their savings as the economic climate becomes more uncertain. "Consumers 'are still spending but the cost -of-living crisis means that they are using every dollar of their wallets to pay for the necessities of life, leaving no money for holidays or entertainment," said Christopher Rupkey. "The money that was spent on higher prices in the economy or the income tax refunds, must have already been gone." In April, consumer inflation reached its highest level in three years. Consumers were worried about inflation spreading to other goods and service as the Middle East conflict continued to rage. Consumer expectations of inflation in the coming year increased to 4.8% from 4.7% last month. Consumers' expectations of inflation in the next five years jumped to 3.9%, up from 3.5% last week. This is due to "significant jumps among independents and Republicans." The increase in inflation expectations strengthened the financial market's view that the Federal Reserve will keep its benchmark overnight rate at 3.50% to 3.75% until next year. John Ryding is the chief economist at Brean Capital. He said that the Fed could only ignore the rise in inflation during the oil shock if inflation expectations remained anchored. "Fed officials claim that this is true, but this report tests this claim." Reporting by Lucia Mutikani, Editing by Chizu nomiyama and William Maclean
Fire at Russian oil terminal caused by falling drone debris
Officials said that falling?debris? from drones caused a fire to start at an oil terminal in Russia's Black Sea port of Novorossiysk. Two people were injured. In a Telegram post, the General Headquarters of southern Krasnodar region said that several administrative and technical buildings were on fire. It said that debris had fallen onto the oil storage terminal of the facility.
Emergency services were on the scene, according to the headquarters. The injured men were in the street at the time the drones struck the port. They are now being treated in hospital.
Unofficial Russian and Ukrainian Telegram channels have posted video footage of what they describe as a fire near the port.
According to the General Headquarters, drones also caused damage to private homes in Anapa, a port city located further north.
In recent months, Ukraine has intensified its medium- and long range?drone strikes. They have targeted oil facilities in an effort to disrupt the industry's revenue which helps Moscow fund the war. Some of the attacks were carried out in central Russia and the Ural Mountains, at least 1,500 kilometers (900 miles), from Ukraine's borders.
On?Friday, Ukrainian forces also attacked a Russian refinery in Yaroslavl. This is about 700 km away from the border.
On Friday, the Ukrainian Defence Ministry announced that Ukraine had hit 11 Russian oil facilities in May. This included Kirishi, which is one of Russia's biggest refineries. (Reporting and Editing by Nia William and Tom Hogue).
(source: Reuters)