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Officials alter train schedule after drones strike historic museum in Russia annexed Crimea
Local authorities said that Ukrainian drones had hit a 'historic museum' in Sevastopol, in Russia-annexed Crimea. They also reduced the number nighttime trains as a result of the intensifying air strikes. The museum commemorates 1853-1856 Crimea War, which was fought between the Russian Empire (including the Ottoman Empire) and a coalition. In that war, Russia lost. Mikhail Razvozhayev - Sevastopol’s Russian-installed Governor – said via Telegram that the roof of the museum was on fire. He didn't provide any further details on the damage, or if there were casualties. "The enemy will be punished for this sacrilege!" Razvozhayev wrote in his early Wednesday morning post. The Crimean peninsula's Russian-installed Governor?Sergei Aksyonov announced on Telegram that the authorities had cut night train schedules after a drone strike this week killed a train assistant and injured a driver. Fuel shortages are a problem in the Black Sea peninsula, Crimea. It was annexed to Russia by Ukraine in 2014. Last week, the Russian president Vladimir Putin rejected a proposal by Ukrainian President Volodymyr Zelenskiy to have face-to-face discussions. The Kremlin claimed that Ukraine undermined efforts to reach a peaceful solution to the conflict after the train incident. The regional governor of Russia's Samara Region said that the city Novokuibyshevsk, which is a major oil hub along the Volga River and hosts several refineries run by state-controlled Rosneft, has been able to repel?drone attack. Local media reported that authorities urged residents in the Samara, a city of 1 million people, to seek shelter because public transportation had been suspended due to air raid alerts. The Ukraine's continued attacks on the Russian energy infrastructure have forced Moscow to reduce its oil production, which is third largest in the world. Telegram reports that two industrial buildings were on fire in central Vladimir and in?the southern Rostov area of Russia, bordering Ukraine. According to local authorities, in a rare move, the remote Russian oil producing regions Khanty Mansiysk Perm and Tyumen as well as the industrial regions Chelyabinsk Sverdlovsk located thousands of kilometers (miles), away from Ukraine, issued air raid alerts. The defense ministry and the mayor of Moscow said in social media posts that Russia had downed 326 Ukrainian UAVs over night, including more than a dozen drones heading to Moscow. Could not independently verify reports. Reporting by Jekaterina Glubkova, Tokyo; editing by Neil Fullick
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Reliance lifts Indian shares after Meta data centre deal
After a flat start, Indian?shares rose on Wednesday, led by Reliance Industries. This was after Meta Platforms announced its first AI-enabled?data centre partnering in India. As of 9:57 a.m. IST, the benchmark?Nifty 50 index rose 0.59% to 23,379.4 while the BSE Sensex increased 0.7% to 74436.6. Reliance rose 2.1% following a Meta announcement that the company would lease a datacenter the Mukesh Ambani?led?company, will build in India. 11 of the 16 largest sectors saw gains. The broader small and mid-caps were flat. The heavyweight financials and the private banks each gained 0.6%. As renewed Middle East hostilities, and expectations of an increase in Federal Reserve rate by the end of the year, fueled concerns about demand ahead of important?U.S. The day's inflation data is due later in the afternoon. Fresh hostilities between Iran and the U.S. have shattered hopes of a lasting ceasefire, and the markets are on edge. The U.S. launched attacks against Iran, after President Donald Trump claimed that Tehran had shot down a U.S. Apache in the Strait of Hormuz. Brent crude rose by 0.5%, to $92 per barrel. This is after it fell to a low of seven weeks on Tuesday. Ajit Mishra is senior vice president and head of research at Religare Broking. He said: "With sentiment still fragile because of the Middle East conflict?and volatility?in crude oil prices, we are cautious about the benchmark index. We focus on specific stock opportunities at this time." Afcons Infrastructure rose 9% following a 53 billion rupees order, while CMR Green Technologies opened with a 39.6% higher price than its initial issue in the debut trade. Jefferies began its coverage with a "buy" on Meesho, the e-commerce platform. (Reporting and editing by Subhranshu Sahu and Mrigank Dhaniwala in Bengaluru.
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Morning Bid Europe-Not panicked but still nervous
Ankur Banerjee gives a look at what the markets will be like tomorrow in Europe and the world. Markets are nervous following the latest escalation of Middle East tensions, but investors have hope that the new 'U.S. The 'attacks on Iran after an Apache helicopter was 'downed near the Strait of Hormuz won't derail a peace deal that will end the war. It may be a wishful thought, as the U.S. army has said that it targeted Iranian air defences, ground control stations, and surveillance radar sites near this key waterway to respond to attacks against U.S. forces and commercial shipping. Stocks fell as a result of the tit-fortat attacks, while oil prices soared. Brent 'futures' remained below $100 per barrel despite the surge in oil prices. Market analysts believe that the incident could?blow out soon. The ceasefire that was agreed in April still hangs by a thin thread, and progress in resolving the conflict of three months has been slow. This keeps sentiment low and the dollar strong. Risk-off sentiment led to a global AI selloff as investors shifted out of technology shares that had surged in value this year. South Korea's KOSPI dropped 4% during a volatile period for the best-performing stock market in the world. Later on Wednesday, the focus will be on U.S. data on inflation to gauge the impact of 'the war. The report may ?bolster expectations of rate hikes from the Federal Reserve, especially after last week's stronger-than-expected jobs report. The traders are pricing in a rate hike of 25 basis points in December, compared to the two rate cuts that were expected before the war in 2026. US May CPI UK may housing survey
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As US-Iran hostilities resume, oil prices rise and gold drops
As the dollar and oil prices rose on Wednesday due to renewed hostilities between Iran and the U.S., gold fell to an 11-week low, fueling concerns over inflation and interest rates hikes. Gold spot was down 1.9% to $4,181.04 an ounce at 0414 GMT after reaching its lowest level since 23 March. U.S. Gold Futures for August Delivery fell 1.9% to $4204.70. Dollars rose, causing greenback-priced gold to be?more costly for holders of currencies other than the dollar. Oil prices rose 1%, fueling inflation fears and expectations that interest rates will remain high for a longer period. The Federal Reserve's policy expectations have changed, as has the increase in yields. Ilya Spivak is the head of global macro for Tastylive. He believes that all three factors are weighing down on gold. On?Tuesday, the United States launched strikes against Iran. President Donald Trump claimed that Tehran had shot down an Apache helicopter from the United States in Strait of Hormuz. This has deepened doubts about a possible peace deal and further strained a fragile ceasefire. Iran's Revolutionary Guards claimed that they carried out attacks on a U.S. Base in Jordan as well as 21 other targets in Gulf on Wednesday in retaliation to the American strikes. According to the CME FedWatch, traders are pricing in more than 70% of an increase in U.S. rates by December. Gold is often seen as a hedge to?inflation. However, higher interest rates tend to put a strain on this non-yielding material. The markets are waiting for key U.S. reports on inflation this week. These include the Consumer Price Index data from May, which will be released later that day, and the Producer Price Index reading, scheduled for Thursday. This is to determine the Fed's policy. Spivak stated that if we could break the $4100 level I believe the path of resistance for gold would fundamentally change. We might start to look at the $3,500 level as the next level by the end the year. Spot silver dropped 2.1% to $64.01 an ounce. Platinum fell 3.4% to 1,667.92 and palladium was down 1.5% at $1,204.24. (Reporting and editing by Subhranshu sahu, Sonia cheema, and Pablo Sinha from Bengaluru)
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Oil prices rise as tensions between the US and Iran flare up again, while stocks are tightened
After?the U.S. The military launched new attacks against Iran, and market data revealed another large drawdown in U.S. oil stocks. Brent futures climbed 66 cents or 0.7% to $92.11 a bar at 0406 GMT. U.S. West Texas intermediate crude crude crude climbed by 60 cents or 0.7% to $88.80. After President Donald Trump promised to act on the downing of an Apache attack helicopter by the U.S., this was a new escalation which threatened to unravel a fragile truce between Washington and Tehran. Priyanka?Nova, a senior analyst at Phillip 'Nova, stated that the latest attacks have shifted traders’ focus to war risks and possible supply disruptions. Sachdeva stated that "while diplomatic efforts are still ongoing, recent military exchanges have brought back a geopolitical premium to oil markets." Tehran has said that it will resume hostilities?if Israel continues to attack Hezbollah in Lebanon. Israel's refusal of ending its campaign against 'Iran-backed Hezbollah' has hindered Trumps attempts to 'extend a fragile ceasefire' in the larger U.S.-Israeli conflict with Iran to a durable resolution. The ING commodity analysts said that if the disruptions continue into the third quarter - a time of higher oil demand - prices could rise. Tehran continues to 'block most shipping through Strait of Hormuz. This normally transports a fifth of crude oil and natural gas around the world. Washington has imposed a blockade on?Iranian port. U.S. Energy Sec. Chris Wright stated on Tuesday that the?oil-exports through 'the Strait of Hormuz? are increasing even though Washington and Tehran struggled to reach an agreement on ending their three-month war. According to data released by the American Petroleum Institute on Tuesday, U.S. crude oil inventories dropped for an eighth straight week. Gasoline stocks also fell. Sources, who spoke on condition of anonymity, said that crude stocks dropped by 9.12 million barrels during the week ending June?5. Gasoline inventories also fell by a total of 1.19 million barrels. During the war, the United States was a marginal crude and product supplier and increased exports to Asia. A drop in U.S. stocks could harm exports and increase prices. Reporting by Arathy S. Somasekhar, Jeslyn Lerh and Shri Navaratnam; Editing by Sonali Paul and Shri Navaratnam
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Officials alter train schedule after drones strike historic museum in Russia annexed Crimea
Local authorities said on Wednesday that Ukrainian drones had hit a historical museum in Sevastopol, in Russia-annexed Crimea. They also reduced the number?nighttime train services in response to intensifying air strikes. The museum is dedicated to the 1853-1856 Crimea War, which was fought between the Russian Empire and a coalition including the Ottoman Empire. In that war, Russia lost. Mikhail Razvozhayev said that the roof of the museum was damaged on Telegram. He didn't provide any details on the damage, or if there were casualties. "The enemy will be held accountable for this sacrilege!" Razvozhayev wrote in his early Wednesday morning post. Sergei Aksyonov, the Crimea's Russian-installed Governor, said on Telegram that authorities had cut night train schedules after a drone strike this week killed a train assistant and injured a driver. Fuel shortages are affecting the Black 'Sea Peninsula of Crimea after recent Ukraine drone strikes, just as the holiday season is about to begin. Last week, Ukrainian President Volodymyr?Zelenskiy proposed face-to?face?talks? with Russian President Vladimir?Putin. He rejected the proposal. The Kremlin claimed that Ukraine undermined efforts to reach a peaceful solution to the conflict after the train accident. A regional governor reported that the city of Novokuibyshevsk, in Russia's Samara Region, which is a major oil hub along the Volga River and hosts several refineries run by state-controlled Rosneft, had successfully repelled drone attacks. Local media reported that authorities urged residents to take shelter in the city's one million inhabitants as public transport was suspended due to air raid alerts. The Ukraine's continued attacks on the Russian energy infrastructure have forced Moscow to?cut its?oil production, which is third largest in the world. The regional governor wrote on Telegram that falling debris from a UAV triggered a fire in a fuel tank located at a site for civilians. On Telegram, the Mayor of Moscow also said that the city is repelling drone attacks. According to local authorities, in a rare move, the remote oil-producing regions of Khanty-Mansiysk and Perm, as well as the industrial regions Chelyabinsk?and Sverdlovsk?in Ural Mountains thousands of kilometers (miles?) from Ukraine issued air raid warnings. Could not independently verify reports. Reporting by Jekaterina Glubkova, Tokyo; editing by Neil Fullick
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Taliban: Pakistani airstrikes in Afghanistan kill at least 13, Taliban claims
Zabihullah Mojahid, the Afghan Taliban's spokesperson, said that at least 13 people, including 11 children, were killed after Pakistani military launched air strikes in three provinces of Afghanistan. This is a resurgence of a conflict which has claimed hundreds of lives this year. Mujahid said that at least '14 other people, all women and children, were injured in the strikes by Islamabad, which violated Afghanistan airspace and targeted civilian homes, in the provinces Kunar, Khost, and Paktika. Security officials told us that Islamabad had carried out airstrikes on what they called the "hideouts of Pakistani militants who were using them against Pakistan." Islamabad accuses Kabul of harbouring militants who, it claims, plot attacks against Pakistan. The Taliban denied the accusations and said that militancy in Pakistan was an internal issue. The renewed violence threatens to 'disturb' a long period of peace between Pakistan and Afghanistan. Former allies, they fought the?worst war in years back in February. In March, the two countries reached a fragile truce. China was tasked with mediating a settlement to the conflict. Reporting?by Mohammad Yunus Yawar and Mushtaq Al in Peshawar; writing by Hritam Mukherjee, editing by Himani Sarkar & Lincoln Feast
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In May, higher gasoline prices are likely to have pushed the US consumer price index up again.
The Middle East conflict has increased the prices of energy products in the United States, and this will give the Federal Reserve more ammunition to maintain interest rates at the same level for the rest of the year. Wednesday's Consumer Price Index readings, which are expected to be the third consecutive month of high year-over-year comparisons, will likely highlight increasing pressure on households as more consumers use their savings to fund their purchases. The inflation rate is expected to exceed wage growth for the second consecutive month in May, which could have a negative impact on economic growth. The rising cost of living poses a serious political problem for Donald Trump and the Republican Party as they seek to maintain control of Congress during the November midterm elections. Trump's promise to reduce inflation was a major reason he won the presidential election of 2024. However, his approval ratings have fallen as frustration grows over his economic management. Joseph?Brusuelas is chief economist at RSM. He said that the top-line inflation increase will surpass wage growth for a second consecutive month. This means that Americans' paychecks are declining in real terms. If this trend continues, it could pose a problem for household consumption in second half of the year. A survey of economists has predicted that the Consumer Price Index will likely increase by 4.2% over the past 12 months, ending in May. This would be the biggest annual increase in the CPI in over a decade, and follow a 3.8% advance in April. In March, the CPI rose 3.3% on an annual basis. The CPI is expected to increase 0.5% monthly in May, after increasing 0.6% in April. In order to achieve its 2% target, the U.S. Central bank monitors the Personal Consumption Spending Price Indexes. All inflation measures are well above the Fed target. According to data from the U.S. Energy Information Administration, the national average gasoline cost increased by 8.8% in may to $4.60 per gallon. Gasoline prices had increased by over 50% at one point since the U.S. and Israel attacked Iran in February. In recent weeks, prices have fallen amid a ceasefire. This has led some economists to be cautiously optimistic that the CPI could peak in May. Although the Strait of Hormuz shipping restrictions have increased fertilizer prices, this hasn't yet led to a significant increase in food prices. Stephen Stanley, Santander U.S. Capital Markets' chief U.S. economics, said that there is a high probability that the headline inflation rate will peak in May. However, the oil price could rise again, depending on what happens in the Middle East. The labor market is resilient. This report follows the news that was released last week, stating the economy had posted a third consecutive month of job growth above expectations in May. The unemployment rate has remained at 4,3% for the third consecutive month. Although financial markets are pricing in an increase, economists continue to believe the central bank has a high bar to raise interest rates. Others argued that, aside from high airfares and other signs of oil price shock affecting the services sector, there was no evidence to support this. Core CPI, excluding volatile components such as food and energy, was projected to have increased by 2.9% in May after increasing by 2.8% in April. Core CPI was forecast to have increased 0.3% on a monthly basis, after increasing 0.4%. James Knightley is the chief international economist at ING. "We are in a situation where the central bank still views monetary policy as restrictive." The monthly CPI is expected to moderate in part due to the diminishing boost that was given by a one-time adjustment of rent measures, after the shutdown of government last year prevented data collection. The artificial intelligence boom has driven up the prices of software and computers, but they have a lower weighting in the core CPI basket. In the core inflation basket, there is a greater weighting. Unexpectedly, a deflation of used cars and trucks has also helped curb the?inflation of goods. Import tariffs divided economists. Some saw the price increase as being largely over, while others believed that the duty was still increasing prices. Diego Anzoategui is an economist with Morgan Stanley. He said that the economy was nearing the end phase of tariff pass-through. Our estimates show that tariffs have raised prices by 63 basis point so far. The total pass-through is closer to 70 basis point. We began to see a slowdown in March, and we expect this trend to continue. Reporting by Lucia Muttikani, Editing by Andrea Ricci
QUOTES-Biden walkings US tariffs on Chinese imports
U.S. President Joe Biden on Tuesday unveiled steep tariff boosts on a range of Chinese imports, including electrical automobile (EV) batteries, computer chips and medical items.
Following are responses to the relocation.
AMERICANS FREE OF CHARGE TRADE, A UNION OF BUSINESS ASSOCIATIONS THAT OPPOSE TARIFFS
Throughout this procedure, USTR received numerous remarks from services big and little that have actually been adversely impacted by the tariffs. It is regrettable that these comments were overlooked. Maintaining the tariffs, and even increasing them in some categories, will cause increased rates and nullify any progress the United States has actually made to combat inflation.
ELISSA PIERCE, RESEARCH ASSOCIATE, WOOD MACKENZIE
U.S. solar producers are still reasonably depending on China for other module components, such as glass and wafers. While these products are also based on the Area 301 tariffs, it does not look like the tariff rate on these will be increased.
However, there is one important change to the tariff that will benefit U.S. solar makers. President Biden has directed Ambassador Tai to establish an exemption process for some solar production equipment. This is something that domestic module manufacturers have actually been advocating for, since it is difficult to source this machinery from outside of China. This ought to reduce the expenses of structure solar factories in the U.S.
MARIUS MORDAL BAKKE, SENIOR ANALYST OF SOLAR SUPPLIER RESEARCH, RYSTAD ENERGY
The doubling on tariffs from 25% to 50% for microchips in 2025 might stimulate inverter producers seeking to broaden in the U.S. to look outside of China for providers of these elements.
A brand-new round of AD/CVD tariffs on the top exporters of solar PV parts to the U.S. is most likely to have a much larger impact on U.S. rates and company margins than any more task boosts to Chinese solar PV cells and modules.
ESWAR PRASAD, CORNELL UNIVERSITY TRADE POLICY PROFESSOR AND FORMER IMF CHINA DEPARTMENT HEAD
In spite of the modest volume of imports directly affected, these tariffs clearly draw the fight lines for sell items that the two countries are pinning their manufacturing sectors' futures on.
It is almost particular that Beijing will counter versus these tariffs with its own procedures, although the question is whether these will be calibrated to seem proportional rather than triggering an escalating trade war. Offered the high stakes involved, this round of tariffs could ratchet up the trade tensions between the 2 countries in such a way that is tough to draw back from.
Some U.S. industries and makers will experience expense increases and supply-chain disturbances as a result of these tariffs but the Biden administration is clearly taking the view that these will be modest and can be managed.
UNITED AUTOMOBILE EMPLOYEES
The UAW applauds today's decisive action from the White House on guaranteeing that the shift to electric automobiles is a. simply transition. We have actually warned for lots of months that, delegated. the forces of business greed, the EV future was threatened by a. race to the bottom, from China to Mexico to right here in the. United States. Ensuring that major corporations have to pay a. cost for pitting employee versus employee, pressing incomes lower and. lower, is a key part of a pro-worker trade policy. America's. autoworkers, our households, and working class communities throughout. this nation want a trade policy that puts employees first. Today's statement is a major action in the right instructions.
TOBIN MARCUS, HEAD OF U.S. POLICY AND POLITICS, WOLFE. RESEARCH
Overall we view this as more protective/symbolic than. presently disruptive. Chinese overcapacity and subsidized. production of products like EVs is rightly viewed as a future. hazard, but existing volumes in the highest-risk sectors are very. modest ... We anticipate there will be some Chinese response, however. that Beijing will go for proportionality, which indicates the U.S. fallout ought to be restricted. The U.S. relocation here may also make it. much easier for Europe to impose new tasks on Chinese EVs, as they. are considering.
JASON OXMAN, PRESIDENT AND CEO OF THE INFORMATION TECHNOLOGY. INDUSTRY COUNCIL
Today's announcement from the Biden Administration. neglects significant stakeholder input and stops working to address. the top concerns raised by affected industries, consisting of tech. Business neighborhood has consistently recorded how Area 301. tariffs disproportionately hurt U.S. services, producers,. workers, and consumers, and have actually failed to inspire China's. leaders to change their unreasonable trade practices. The expansion. and substantial boost of Section 301 tariffs will continue to. pressure Americans' wallets, intensify the effects of global. inflation by raising the cost of items, and harm U.S. worldwide. leadership.
BRIAN BRYANT, INTERNATIONAL PRESIDENT OF THE 600,000-MEMBER. INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE EMPLOYEES
As International President of one of the biggest. making unions in The United States and Canada, I have actually seen first-hand the. negative impacts of the Chinese federal government's anti-competitive. trade practices, such as discarding heavily subsidized imports ... The IAM has actually been a leader over the years in sounding the alarm. on unfair trade practices that cost North American tasks. Tariffs. aren't an objective but a very important tool to end trade. practices that eliminate great American jobs and drive down American. pay.
MIKE CARR, EXECUTIVE DIRECTOR, SOLAR ENERGY MANUFACTURERS. FOR AMERICA COALITION
The Administration made the best decision to strengthen. protections for solar components we seek to integrate in the U.S . While no one action can loosen up the years of a collective effort. to dominate this market, consisting of in making devices. and greatly subsidized production by Chinese-headquartered firms. in Southeast Asia, we are motivated by this indication of the. Biden administration's dedication to use all the tools at their. disposal in a targeted and tactical way.
(source: Reuters)