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Dollar gains as gold falls due to raging Iran conflict and strong US job data
As markets awaited the U.S. President's remarks, gold prices fell on Monday. A stronger U.S. Dollar, boosted by a "strong" U.S. employment report, dampened bets for rate cuts. Donald Trump is facing an escalating conflict between Iran and the United States. Gold spot fell 0.4% at $4,658.90 an ounce as of 0706 GMT. U.S. gold for April delivery rose by 0.1% to $4684.30. Kelvin Wong is a senior analyst at OANDA. He said that markets are looking for a second so-called headline threat to be revealed later. Trump also threatened to "rain hell" on Tehran, if the Strait of Hormuz is not reopened by Tuesday. However, recent U.S. Intelligence assessments indicate that Iran will be unlikely to reopen this 'crucial waterway for oil shipping any time soon. Investors also considered an Axios article that stated that the U.S. and Iran, along with a group mediators, are discussing the possibility of a 45-day truce that could pave a way for the permanent end of the war. Brent oil prices rose as the war disrupted global energy supplies and fuelled inflation fears. Gold is often viewed as a hedge to inflation. However, high interest rates can dampen the demand for this non-yielding investment. The yield on the 10-year U.S. Treasury and the dollar index both rose, boosted by Friday's data showing that U.S. payrolls for non-farm workers in March increased to the highest level since December 2024. Meanwhile, the unemployment rate dropped to 4.3%. Tim Waterer is the chief market analyst at KCM Trade. He said that "the latest robust NFP has reinforced hawkish Central Bank nerves while persistent oil-driven fears of inflation continue to crowd out Gold's traditional "safe-haven" sparkle." The odds of a U.S. Federal Reserve rate reduction this year are almost non-existent, as compared to the two cuts that were expected before the Iran War began. Palladium rose 0.7%, while spot silver dropped 0.9%. (Reporting from Bengaluru by Pablo Sinha; Additional reporting by Swati verma; Editing and production by Sumana Nandy, Mrigank Dhaniwala).
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Trump's threats to strike Iranian infrastructure has put the markets on edge
Oil prices rose on Monday, while stocks were mixed after U.S. president Donald Trump warned of 'hell' for Iran if it did not reopen?the Strait of Hormuz within his self-imposed date. Trump's repeated threat to destroy civil infrastructure, including power plants and a bridge, if the crucial waterway isn't open by Tuesday has put traders on alert for retaliatory attacks from Iran against targets in the Gulf States. S&P 500 e-minis futures were volatile, fluctuating between gains and losses as countries in the region celebrated Easter Monday and Tomb Sweeping Day. MSCI's broadest Asia-Pacific share index outside Japan rose 0.4%. The Nikkei rose by 0.6% while South Korea's Kospi grew 1.4%. Investors gained confidence when Axios reported the U.S. and Iran are negotiating the terms of a possible 45-day truce that could lead to an end permanent to the war. The report cited four U.S. sources, Israelis and regional sources who were privy to the talks. Brent crude futures rose 1.2%, to $110.29 per barrel on the back of a potential disruption in supply. Sim Moh Siong is a currency strategist with OCBC Singapore. He said that the markets were "clearly nervous". He added, "We have seen deadlines being extended, and it is difficult to know to what extent the current deadline will be adhered to or pushed back." The weekend saw a resurgence of the threat to blow up Iranian bridges and power plants. The markets were interested in the agreement reached on Sunday between members of OPEC+ to increase their output quotas for May by 206,000 barrels a day. This is because several major oil producing countries behind the Strait of Hormuz suffered damage to oil production and transport infrastructure after the war began. Mark Matthews is the head of Asia research at Bank Julius Baer, Singapore. He said: "It's puzzling that Asian equity markets have been performing so well despite the imminent threat of escalation of the war." He said that there are two plausible explanations. The first is that despite the bad news the market believes that the war is going to end soon. The second explanation is that, even if war continues, the negative effects will be offset by fiscal stimulus. The U.S. Jobs Report released on Friday showed that employment growth in March was higher than expected, with 178,000 more nonfarm payrolls, which is the largest increase in over a year. As people left the workforce, the unemployment rate dropped to 4.3%. The data will complicate the Federal Reserve's decision-making process at its next two-day meeting, ending on April 29, which is when it will decide the monetary policy. According to CME Group's Fedwatch, the swaps prices indicate that the market does not expect any moves from the U.S. Central Bank until September 2027. The U.S. Dollar Index, which measures greenback strength in relation to a basket six currencies, fell by 0.1% at 100.13. The yield on a 10-year Treasury bond in the United States?was up by 1.2 basis points to 4.3565%. Tokyo's yield on the Japanese government bond has set a new record for the 21st Century due to rising inflation fears. The yield on these notes increased by 4.5 basis points to 2.425%. This is the highest level since February 1999. The U.S. Dollar was unchanged at 159.615 Japanese yen. Gold fell 0.5% to $4653.82. Bitcoin was up 1.9% to $68,886.31, and ether rose 2.6% to 2,122.32. (Reporting and editing by Gregor Stuart Hunter, Lincoln Feast, and Shri Navaratnam.
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Saudi Arabia raises Arab Light crude oil prices for Asia at record-high premium
Saudi Arabia set its official selling price for May Arab 'Light' crude oil to Asia a record $19.50 per barrel above the Oman/Dubai benchmark, a $17 increase from the previous months, according to a document on pricing reviewed by on Monday. The price of Middle 'East oil is now the most expensive in the world, as the U.S./Israel war against Iran has limited shipping through Strait of Hormuz. This chokepoint accounts for about a fifth the world's supply. The exact date of a ceasefire or the resumption of oil exports through the Strait from Saudi Arabia and the United Arab Emirates is still unknown. Middle East high-sulphur oil benchmark Dubai rose last month to almost $170 a barrel in trading on the S&P Global Platts Market On Close process. OPEC+ 'agreed to increase its 'oil production quotas by 206,000 barrels a day in May. This modest increase will largely be on paper, as OPEC+ key members cannot raise production because of the war. Below are Saudi prices for?Asia-Pacific in $/bbl compared to the Oman/Dubai average: April May Change Arabian Super -0.60 +16.40+17.00 Arab Heavy +0.60 +16.40+17.00
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Seoul: North Korea's distancing from Iran will leave the door open for US-North Korea talks
North Korea appears to be separating itself from its long-time partner Iran and carefully managing their public messages to preserve the chance of a 'new relationship with the United States. South Korean lawmakers claimed on Monday that the spy agency had told them that the 'war with Iran' was over. Seoul's National Intelligence Service said that North Korea has not sent any weapons or supplies to Iran since February 28. They also did not express public condolences for the death of the Supreme Leader,?Ayatollah Ali Khamenei who was killed by air strikes. This was according to Park Sun-won, a lawmaker who attended the NIS's?closed-door meeting. Park, citing NIS, said that Pyongyang did not send a message of congratulations when Khamenei’s son Mojtaba Khamenei was chosen as the new Supreme Leader. The?NIS reported that while China and Russia have frequently released?statements about the conflict, North Korea has only made two toned down?statements. This is consistent with North Korea’s recent tendency to avoid criticism of U.S. president Donald Trump. This lawmaker stated that the NIS viewed this as a preparation for securing new diplomatic space following a May summit between Chinese president Xi Jinping, and Trump. The NIS told lawmakers that North Korea also faced significant economic strains related to the Middle East Crisis, including disruptions in the procurement of industrial supply, rising prices and an escalating exchange rate. The?NIS reported that North Korea also tried to secure Russian oil supply. Kim said that the U.S. could "get along well" with North Korea if it recognized its status as a nuke state and retracted its hostile policy. Park stated that the NIS believed Kim had made the remarks "in his own voice" as a deliberate message, to keep relations with Trump good and position Pyongyang in preparation for a new chapter in diplomatic relations once the Middle East conflict subsides. (Reporting and editing by Jack Kim, Joyce Lee)
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Gold falls as Iran war, robust US jobs data dim Fed rate-cut hopes
?Gold prices fell on ?Monday, pressured by a stronger ?dollar ?as elevated oil prices on the back of a protracted Iran war and stronger-than-expected U.S. jobs data dampened hopes for interest rate cuts by the Federal Reserve. Spot gold fell 0.5% per ounce to $4,652.89 by 0452 GMT. U.S. Gold futures for delivery in April held steady at $4,678.70. Many markets in Asia and Europe were closed on a holiday. The data released on Friday revealed that the U.S. payrolls increased by 178,000 in March, which is the highest since December 2024. Meanwhile, the unemployment rate dropped to 4.3%. The dollar index and 10-year U.S. Treasury Yield both rose, which pushed up the price of greenbacks. Brent oil prices rose as the U.S. - Israel war against Iran continued to disrupt global energy supply. Tim Waterer is the chief market analyst at KCM Trade. He said: "The latest robust NFP print reinforced hawkish nerves of central banks, while persistent inflation fears fueled by oil continue to crowd gold's traditional safety-haven shine." U.S. president Donald Trump has threatened to "rain hell" on Tehran, if the country does not reach a deal by Tuesday and reopen?the Strait of Hormuz. Recent U.S. Intelligence assessments indicate that Iran is unlikely reopen this passage anytime soon. The rise in crude oil prices has stoked inflationary fears. Gold is traditionally seen as a hedge against rising inflation. However, high interest rates have a tendency to reduce demand for this non-yielding investment. The traders have priced out any chance of a Fed interest rate cut in this year. Before the Iran War began, two rate cuts were expected this year. COMEX gold traders increased their net long positions by 1,098 contracts, to 93872 contracts, in the week ending March 31. Spot silver dropped 0.9% to $72.34 an ounce. Spot platinum fell 0.6% to 1,977.29 while palladium rose 0.3% to $1.500.25.
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Trump's threats to strike Iranian infrastructure has put the markets on edge
Oil prices rose on Monday, while stocks were mixed after U.S. president Donald Trump warned of "hell" if Iran did not reopen?the Strait of Hormuz within his self-imposed date. However, a report of a possible ceasefire seemed to calm some nerves. Trump's repeated threat to destroy civil infrastructure, including power plants and a bridge, if this vital waterway was not opened by Tuesday has put traders on alert for retaliatory attacks from Iran against targets in Gulf states. S&P 500 futures, which are e-minis, fluctuated between gains or losses as many countries in the region celebrated Easter Monday holidays. MSCI's broadest index of Asia-Pacific stocks outside Japan rose 0.3%. The Nikkei rose by 1.3% while South Korea's Kospi gained 0.9%. Axios reported that four U.S. sources, Israelis and regional mediators with knowledge of these talks, were discussing terms for a possible 45-day truce that could result in a permanent ending to the?war. Brent crude futures rose 0.5%, to $109.55 per barrel, before reversing their gains. This was due to the possibility of a supply disruption. Sim Moh Siong is a currency strategist with OCBC, based in Singapore. He added, "We've already seen deadlines pushed back, so it's hard to know to what extent this one will stick or be pushed too." The weekend saw a escalation of the threat to blow up Iranian bridges and power plants. The markets were interested in the agreement reached on Sunday between members of the OPEC+ to increase their output quotas for May by 206,000 barrels a day. This is because several major oil producing countries behind the Strait of Hormuz suffered damage to oil production and transport infrastructure. The U.S. Jobs Report released on Friday showed that employment growth in March was higher than expected, with 178,000 more nonfarm payrolls, which is the largest increase in over a year. The unemployment rate dropped to 4.3%, from 4.4%. This was due to people leaving the workforce. The data is a challenge for the Federal Reserve. They will decide monetary policy in a two-day session ending on April 29, 2019. According to CME Group's Fedwatch, the swaps prices indicate that the market does not expect any moves from the U.S. Central Bank until September 2027. The U.S. dollar index, which measures greenback strength in relation to a basket six currencies, fell by 0.1%, closing at 100.15. The yield on the 10-year Treasury bond in the United States was up by 0.8 basis points at 4.352%. Tokyo's yield on the "Japanese Government Bond" set a new record for the 21st century due to rising inflation fears. The yield on notes rose 3.0 basis points to 2.41%. This is the highest level since February 1999. The U.S. Dollar was unchanged at 159.555 Japanese yen against the yen. Gold fell 0.6% to $4646.27. Bitcoin was up by 2.2% to $69,120.37 while ether was up 3.0% at $2,130.78. (Reporting and editing by Gregor Stuart Hunter, Lincoln Feast, and Shri Navaratnam.
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Trump says that a deal with Iran is possible if the Strait remains closed.
Donald Trump, while praising the U.S. military for their rescue of an airman in a high-risk mission deep inside Iran, threatened to "rain hell" on Tehran?if it didn't make a deal by Tuesday and reopen Strait of Hormuz. Special forces rescued an American airman from Iran in a mission that was high-risk. Israel and the U.S. have been pounding Iran with airstrikes and missiles for more than five weeks in order to eliminate what they claim is an imminent threat posed by Iran's ballistic missile arsenal, nuclear weapons development program and support for regional proxy militias. Tehran has closed down the waterway of Hormuz, which is a conduit that supplies around a fifth the oil and gas in the world, and also attacked U.S. bases and other targets throughout the Gulf. An official in Iranian state media reported that explosions rocked Tehran early Monday morning, and that a U.S./Israeli attack on a building south of the capital killed at least thirteen people. The report was not verified. Trump threatened to strike Iran's energy and transport infrastructure again in a post on his Truth Social platform that was laced with expletives. Critics say this would be a war crime. He said that Tuesday will be Power Plant Day and Bridge Day in Iran. There will be nothing else like it! You crazy bastards need to open the Fuckin' Strait or you'll end up in Hell – just watch! Praise to Allah. President DONALD J.TRUMP" In a mixed message that baffles supporters, enemies and financial markets, Trump said on Fox News that Iran is negotiating with a possible deal by Monday. Axios published a report on Sunday that?the U.S. and Iran are negotiating terms for a possible 45-day truce, which could lead to an end to the conflict permanently.' Citing four U.S. sources, Israelis and regional sources who were privy to the talks. Could not verify the report immediately. The White House and U.S. State Department have not responded to requests for comment. Reports said that the mediators were working on a deal in two phases. The first phase was a 45-day "ceasefire"; the second, an agreement to end 'the war. IRAN ATTACKS THE GULF AFTER CONDEMNING US AS 'RECKLESS" Tehran demands an end to hostilities, and Mohammad Baqer Qalibaf, its speaker of parliament, condemned Trump's threat. He said that Trump was misled by Israeli Premier Benjamin Netanyahu. He posted on X Sunday: "Your reckless actions are dragging the United States in a living HELL, and our entire region will burn because you insist upon following Netanyahu's orders." Iran showed it was still fighting despite the U.S. and Israeli pounding by launching missile and drone strikes on petrochemical plants in Kuwait, Bahrain, and the United Arab Emirates. On Sunday, the Revolutionary Guards said they also hit a vessel with Israeli connections at Dubai's Jebel Al port. The company reported that drones in Kuwait caused fires at petrochemical facilities operated by Kuwait Petroleum Corporation affiliates, and "severe damage to material" as well. The strikes highlighted Iran's capability to carry out cross-border attacks, disrupt infrastructure in multiple Gulf States and expose vulnerabilities within energy and maritime hubs. Media in Israel also showed teams of search and rescue combing debris on Sunday, after an Iranian missile struck a residential building. Israeli paramedics reported that nine people were receiving treatment, and Israeli media reported later that rescuers recovered two bodies?from rubble. COMMANDO OPERATION Trump announced that the?rescue mission of the airman was carried out in the early morning hours of Sunday. He described the operation as one of the "most daring" missions of this kind in U.S. History. Trump stated in a tweet that the airman was injured but will be fine. The pilot of the jet was rescued earlier. U.S. commandos sneaked deep into Iran undetected under cover of darkness. They scaled a 2,100-metre ridge at 7,000 feet and rescued the stranded American weapon specialist before dawn Sunday. A U.S. official said that two MC-130s, which had transported some of the 100-strong special operations forces to rugged terrain south-west of Tehran, suffered a mechanical breakdown and were unable to take off. The commanders took a risky decision by ordering more aircraft to fly into Iran in order to remove the group in waves. The rescue force was withdrawn?in phases, and U.S. soldiers destroyed the disabled MC-130s as well as four additional helicopters within Iran rather than leave sensitive equipment behind. Iran claimed that several U.S. planes were destroyed in the operation. The war that began with U.S.-Israeli airstrikes across Iran on 28 February has resulted in the deaths of thousands, mostly in Iran and Lebanon. According to Lebanon's Health Ministry, Israeli airstrikes in Lebanon killed 11 more people on Sunday.
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Gold falls as Iran war, robust US jobs data dim Fed rate-cut hopes
?Gold prices fell on ?Monday, pressured by a stronger ?dollar ?as elevated oil prices on the back of a protracted Iran war and stronger-than-expected U.S. jobs data dampened hopes for interest rate cuts by the Federal Reserve. Spot gold fell 0.9% per ounce to $4631.69 by 0306 GMT. U.S. Gold Futures for April Delivery?lost 0.5 percent to $4657.50. Many markets in Asia, Europe and North America were closed on holiday. Tim Waterer is the chief market analyst at KCM Trade. He said that "the latest robust NFP has reinforced hawkish Central Bank nerves while persistent oil-driven inflation concerns continue to crowd out Gold's traditional safe haven sparkle." Data released on Friday showed that non-farm payrolls in the United States increased by 178,000 positions in March, the highest since December 2024. The unemployment rate also fell to 4.3%. Dollar index and yields on 10-year U.S. Treasury bonds increased, putting pressure on greenback bullion prices. Brent oil prices rose as the U.S./Israeli war against Iran disrupted global energy supplies. U.S. Intelligence assessments indicate that Iran will not be able to reopen this passage anytime soon. Concerns about inflation have been sparked by the surge in crude oil prices. While gold has traditionally been seen as a hedge to inflation, high interest rates have tended to dampen the demand for this non-yielding investment. The traders have "almost priced in" any chance of a Fed rate cut this year. Two rate cuts were expected this year before the Iran War. COMEX gold speculators increased their net long positions by 1,098 contracts, to 93872 for the week ended March 31. Spot platinum fell 0.9% to 1,970.38 dollars per ounce while palladium remained at $1,503.50.
Analysis-Russian expulsion of Ukrainian troops from Kursk removes obstacle to peace
The ejection by Russia of Ukrainian troops in the Kursk area ends the largest incursion on Russian soil since World War Two. It also removes an obstacle to a peaceful settlement that Moscow had been reluctant to reach with so many hostile troops on its territory. Vladimir Putin, the President of Russia, declared a unilateral ceasefire of three days the day after Moscow announced that the Kursk operation was complete. This was to commemorate the 80th anniversary since the Soviet Union's victory in World War Two.
On condition of anonymity, two Russian sources said that the Kremlin would not accept a settlement to the war as long as Ukrainian troops are in Kursk.
Ukraine launched its most daring attack on August 6, just over two years after Russia invaded the Kursk area in 2022. Supported by drones and heavy Western weapons, the country rammed through the Russian border.
The attack was costly to Kyiv, as the Ukrainian forces claimed almost 1,400 square kilometers of Kursk at its peak.
According to Ukrainian open-source maps, Russia now controls an area of Ukraine that is roughly equal in size to the U.S. State of Pennsylvania.
Analysts say that the diverting of Kyiv forces to Kursk helped Russia accelerate its advance in eastern Ukraine.
"Essentially, Ukraine exchanged territory that it valued the most, its own, for territory it did not value and could not hold forever," said Christopher McCallion. McCallion is a fellow with Defense Priorities in Washington DC, an organization advocating a strong U.S. army with a conservative foreign policy. Ukraine, who has been retreating from Kursk for weeks, but claims to still have some active troops there, believes that the incursion distracted Russia, forcing it to deploy troops elsewhere. Kyiv said that its objectives included securing its border with Sumy and gaining territory for future peace negotiations.
Washington's shuttle diplomacy has now pushed these talks forward, but without Ukraine's bargaining chip. There are still major differences that could undermine the peace efforts of President Donald Trump. One source said that if the talks fail, Russian forces would continue to fight.
Requests for comment from the Kremlin or Ukraine's general staff were not immediately responded to.
Local officials claim that Russia has intensified its attacks on Sumy in recent weeks. This is across the border from Kursk. A Russian missile attack in the capital of Sumy killed 35 people on April 14. Russia claimed it targeted a group of Ukrainian soldiers. Volodymyr Zelenskiy, the president of Ukraine, acknowledged that Kyiv forces are now active in Russia’s Belgorod Region, also near the border. He described it as a move to protect Ukrainian towns. Russia has a few slivers across the border in Kharkiv from Belgorod. According to U.S. proposals for a peace agreement, Ukraine would regain control of all of its territory at Kharkiv while Russia would keep control of just over a fifth.
THE BATTLE FOR KURSK
The Kremlin was embarrassed by the invasion of Kursk in 1943. This was the scene of the biggest tank battle ever fought in history, between Soviet and Nazi forces.
The announcement of victory against Ukrainian troops coincides with the 80th anniversary celebration of the Soviet Union’s victory over Nazism on May 9. This gives Putin a victory to show off in front of dignitaries such as Luiz Inacio Lula Da Silva from Brazil and China's Xi Jinping.
According to Russian sources, despite warnings of an imminent attack, the Russian forces were caught off guard by the Ukrainian assault.
Russian officials spoke at the time of chaos, as Russians fled to the east and the Russian border guards and army attempted to combat small, highly mobile Ukrainian unit speeding along country roads in Kursk with Western weapons and vehicles.
A minimum of 120,000 people had to be evacuated. Putin, visibly incensed, was seen publicly scolding Alexei Smirnov who, at the time, was the governor of Kursk. He was arrested on April charges of embezzling money intended for border defense. He denies these charges. The size of the Russian military operations was impressive when I visited Kursk, Russia, in March: tanks, missiles systems, and thousands of soldiers on the move, while civilians warned of the danger of drones and missile attacks amid the air attack sirens. North Korean troops and shells helped Russia to fight back against the Russians in Kursk. Putin expressed his gratitude personally to Kim Jong Un, the leader of North Korea.
According to the Russian defence ministry, Ukrainian forces lost over 412 tanks and several thousand military vehicles in Kursk. Ukraine says that Russia has suffered over 62,000 deaths and injuries during the operation. Both sides have not released their own numbers of casualties. Both sides dispute these numbers, which are not independent.
OFFENSIVE
In August, as Ukrainian forces raced to expand their territory at Kursk in Russia, the country sent units into the area to slow down the advance and stop Ukrainian forces from reaching Kurchatov Nuclear Power Station which provides a large portion of the electricity for southern Russia.
In less than a month the front was stabilised, and Russia could counterattack.
David J. Betz is a professor at King's College London who specializes in war and the modern world. He said that there were likely some Russian generals who were embarrassed by the Ukrainian incursion.
He said that Russia has a long history of successfully defending its borders. However, unlike other countries who are able defend themselves using geography, Russia is forced to use human bodies and distance to do so.
Russian and Western sources reported that Russian forces gradually began to grind down the Ukrainian defences while Moscow deployed thousands of fibre-optic, or "fibre-optic" drones. These drones are harder to jam than any other drones.
According to Ukrainian maps, within three months Russia had reduced the area controlled by Ukraine by more than half. By February 6, this area had been reduced to just 428 square kilometers. Putin, who had been in military fatigues during the Russian invasion of Ukraine on the third anniversary, made a surprise trip to Kursk to order the top brass to continue their advance. He also suggested that Russia create a buffer along the Ukrainian border.
In March, Ukraine lost over 300 square kilometers of territory that it held in Kursk.
Valery Gerasimov is the top Russian general in charge of the war. He told Putin that Russia cleared Kursk after the last Ukrainian troops were forced out of Gornal, a village near the border.
He claimed that Ukraine had deployed 60,000 troops to Kursk during the height of the operations, which undermined its other forces. He also praised the North Korean troops who fought "shoulder-to-shoulder" with their Russian counterparts.
Gerasimov said that Russian forces "continued" to carve a buffer zone in accordance with Putin's orders, and had taken over 90 square kilometers of Ukraine's Sumy Region.
Ukrainian officials had previously claimed that Russian assault groups were in Sumy. (Reporting and editing by Guy Faulconbridge)
(source: Reuters)