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Officials say that 12 people were killed in an attack on a holiday camp in the Russian-held part Ukraine
Five children were among the 12 people killed in an overnight drone attack on a holiday camp located in a Russian-held area of Ukraine's Zaporizhzhia Region, local authorities in Russia said. They accused Ukraine of attacking civilians on purpose. Kyiv didn't immediately respond to our request for a comment. Both Russia and Ukraine deny that they are targeting civilians during the war which was launched by Russia's full scale invasion in February 2022. Yevgeny Baltsky, the Russian appointed governor, said that 19 people were injured in the attack at Kyrylivka resort, which is located near Melitopol on the coast of Sea of Azov. Russian Foreign Ministry spokesperson, Maria?Zakharova, said that Ukrainian drones were responsible for the attack against "sleeping" people at the camp. She condemned "inhuman crimes" and also mentioned an attack that took place on a factory on Thursday in Russia's Kirov Region, which resulted in the death of six people. The video of the holiday camp posted online showed shattered building, burnt-out cars and a heap of rubble near a swimming pool. Balitsky reported that crews of the Emergencies Ministry in Russia retrieved two survivors including a child and another body from rubble. He said that the rescue operation was complete. He said that the enemy knew who they were targeting. Balitsky claimed that authorities in Kyiv "ignore any morality" and were "deliberately destroying civilians -- both adults and children". The Russian state news agency RIA reported that the Investigative 'Committee' of Russia opened a terrorism?case in response to the attack. Reporting by Alessandra Prentice; Writing by Ron Popeski, Paul Simao and Kevin Liffey; Editing by Kevin Liffey.
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Tens of thousands of people fleeing French wildfires are filled with disappointment and fear
Mohammed Laabar and his family fled their home in southwest France when wildfires raged on Friday. They grabbed their son, aged three, and a survival kit that they had prepared beforehand. The winds changed within hours and carried smoke and fumes originating from the fires to Bordeaux. Laabar is a 35-year old truck driver from the town of Salaunes. The apocalyptic images that have come to define France’s scorching summer 2026 gave him a sobering look at the future. He said at a temporary evacuation centre in Bordeaux where hundreds of people spent the night Friday. The authorities have evacuated over 197,000 people in southwestern France after fires destroyed the Atlantic Coast peninsula of Cap Ferret. This is a popular tourist destination during the peak of summer. French President Emmanuel Macron has enlisted military support to help exhausted firefighters battle a tapestry of?fires throughout the country. This follows a record-breaking summer heatwave which resulted in almost 6,000 extra deaths. As people waited in the Bordeaux evacuation centre on Friday, they were filled with disbelief and disappointment, while also feeling fearful for the future. Bernadette, 71, was sitting with her husband and her two grandchildren when she worried about her home in Lege-Cap-Ferret. She evacuated it in the middle night of Wednesday, with "very little notice". She said, "I didn't take anything with me, just my two children". "I forgot a lot of things. My eye medication, everything." Her house is located in an area that firefighters have battled to save buildings and houses from flames. Bernadette - who declined to reveal her name - said that she had moved twice more as the fires grew and barely slept. "I was in Lege, then Andernos and finally Bordeaux. "And now, there's a fire here as well," she said referring to the smoke that could be seen and refelted in Bordeaux. "I'm gonna scream." "ASHES FALLING EVERYWHERE!" The Cap Ferret Fire moved inland Saturday, reaching a region about 30 km (19miles) from Bordeaux. The French Interior Minister Laurent Nunez stated that the situation had calmed down on Saturday, although the winds are expected to increase again in the afternoon. Henri Sauter, 37, from Germany was forced to leave Cap Ferret after his extended family consisting of nine adults and five children as well as a dog. He said, "There were ashes floating in our drinks while we were eating dinner. It was a strange feeling." He said that the 'family' hit heavy traffic on Friday after they abandoned their rental when they received a message telling them to leave. He said that they could see flames as they exited the peninsula along 'the only road into and out of it. Fires are becoming bigger and more frequent. Three consecutive heatwaves in Europe this season have helped to scorch more ground than they did last year. Many people who were sheltering in the evacuation centre feared that the wildfire danger was worsening. Jean-Pierre, retired computer engineer, aged 68, of Andernos, said that he had lived in the area for the majority of his life. However, this was the first evacuation he has ever experienced. He said that he had experienced fires when he was a child, but they were rare. In the last eight to nine years, fires have become more frequent. Multiple blazes are often burning at once. "It is catastrophic," he declared. (Reporting and editing by Gabriel Stargardter, Louise Heavens, and Manuel Ausloos)
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Wildfires in Bordeaux force evacuation of suburbs
Wildfires in the area around Bordeaux, southwest France, showed no sign of stopping. Sophie Brocas, the head of the local administration for La Nouvelle-Aquitaine et de la Gironde which includes the Bordeaux region, has said that the areas of Le Haillan and?Eysines are being cleared. Bordeaux is known for its vineyards, and the city of Bordeaux is a major 'transport hub' for tourists who are visiting the nearby resorts along the Atlantic coast. Sebastien Lecornu, Prime Minister of France, said that more than 141,000 people have been evacuated so far from the Gironde and Landes region near Bordeaux where wildfires erupted this week. The region was advised not to be driven in. Lecornu posted on X Saturday that "the fires that have hit our country are at a level never before seen." To?help, the army has been called in. Smoke from wildfires was seen and felt in the Haute-Vienne area north of Bordeaux. Local authorities asked people to close their doors and windows. Climate Monitor data shows that temperatures in the Aquitaine region have averaged 32 degrees Celsius (90 degrees Fahrenheit) so far this month. This is 7.3C (13.1F), compared to the norm for July 1961-1990. Reporting by Camille Raynaud and Stephane Mahe; editing by Susan Fenton, Kevin Liffey and Elizabeth Howcroft
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Wildfires in Bordeaux force evacuation of suburbs
The French authorities evacuated a large number of people from the suburbs around 'Bordeaux' on Saturday, as wildfires remained active in those areas. Sophie Brocas, the head of the local administration for La Nouvelle-Aquitaine et de la Gironde, which includes the Bordeaux region, stated on X, that the areas of Le Haillan, Eysines, and Merignac are being cleared out. Sebastien Lecornu, the French Prime Minister, said that so far more than 141,000 residents have been?evacuated? from the Gironde?and Landes?regions?which are?close to Bordeaux and where the fires first broke out?this week. Lecornu, writing on X Saturday, said: "The fires that are ravaging our country have reached a?level never before seen." French troops have also been called in to assist. Climate Monitor data shows that temperatures in the Aquitaine region have been on average 32.2 degrees Celsius this month. This is 13.1 degrees Fahrenheit (7.3 degrees Celsius) higher than normal for July between 1961 and 1990. Reporting by Camille Raynaud and Stephane Mahe; editing by Susan Fenton
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Trump refuses to proceed with nuclear agreement unless Saudis sign Abraham Accords
On Friday, President Donald 'Trump said he wouldn't go ahead with a civil nuclear agreement with Saudi Arabia unless?Saudi Arabia agreed?to a re-normalization of relations with Israel in accordance with the Abraham Accords. The U.S. Department of Energy announced on Wednesday that Energy Sec. Chris Wright and Prince Abdulaziz bin Salman, his Saudi counterpart, had signed an accord on the development of commercial nuclear reactors in oil rich Saudi Arabia. It said that Congress would review it. Since his first term, Trump has worked on a deal to build a nuclear power plant in Saudi Arabia. Joe Biden, the former president of the United States, also wanted a deal to be tied to accords that would normalize Saudi Arabia-Israel relations. Saudi Arabia, however, has not signed the accords because it is seeking an irreversible route to a Palestinian State before recognizing Israel. Trump added a condition to the agreement on Thursday. He said in a social media post that Saudi Arabia had to sign the accords. Trump made this point Friday at the Oval Office. Trump told reporters that they must be Abraham Accords members to get the deal. Trump claimed he did not discuss the Abraham Accords with Wright prior to the Cabinet member signing the deal. Trump stated that "but it was always understood and Chris knew and Saudi Arabia knew." Saudi Arabia hasn't responded to any requests for comment on the additional conditions to?the deal. Trump was confident it would all come together eventually. Trump stated that at some point, they would join together and "do their civil nuclear, to repeat it," they will do. Westinghouse, owned by Canadian companies Cameco & Brookfield Asset Management, is a beneficiary of a deal between the U.S. & Saudi Arabia. (Reporting and editing by David Ljunggren, Alistair Bell and Timothy Gardner)
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Gold edged up as Brent eased, Mideast developments on the agenda ahead of Fed meeting
Brent crude oil fell from over $100 per barrel on Friday, while investors assessed the Middle East conflict to determine its impact on inflation in advance of next week's U.S. rate decision. Gold spot was up by 0.1% to $4,052.78 an ounce at 4:10 pm EDT (2010 GMT) after a 2% drop in the previous session. Prices are up 0.9% this week, thanks to dip-buying early in the week. U.S. Gold Futures for August Delivery settled 0.5% higher at $4,070.80. "Gold and Silver are carving out bases around $3,950 each and $55, separately, despite the relentlessly rising yields. Gold feels ready to move higher. While a stop-loss below $3,950 can't be excluded, a sharp war escalated, a?Fed on hold next weekend would help, said Tai Wong. Brent crude oil?fell more than 4% after rising by over 7% in the previous session to reach above $100 for the first since May. This was after Iran-aligned Houthis claimed they had struck two Saudi oil tanks in the Red Sea. Bullion is down about 23% in the last few months since the U.S. war against Iran began late February. This has been a result of expectations that inflation due to war could keep interest rates high for longer. Gold is often seen as an inflation hedge, but higher interest rates can be detrimental to the metal. Investors are now awaiting the outcome of a U.S. Federal Reserve policy meeting next week. It is widely?expected that it will?keep rates unchanged. According to the CME?FedWatch Tool, traders are pricing in an approximately 82% chance that a U.S. interest rate increase will occur in September. The recent strength in bullion seems to be largely driven by dip-buying, and short covering. The sharp decline in gold prices from the record highs of earlier this year has been followed by a recovery. Silver spot rose by 0.8% per ounce to $58.11, platinum dropped 0.8% at $1,587.17 and palladium fell by 1.4% to $1.239.20.
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Report: Guardiola rejects Soccer-Pirlo for Italy's job
The Italian Football Federation (FIGC), reported La Repubblica on Friday, has reached an agreement with Andrea Pirlo, a former Italy midfielder. Pirlo will become the coach of the national team on a four year deal. Pirlo is widely regarded as the greatest Italian midfielder in history. He won the 2006 World Cup and had a distinguished career at Inter Milan, AC Milan, and Juventus. The 47-year-old currently manages Dubai United in the UAE First Division League. Pirlo managed Juventus in the 2020-21 season. He led the Turin club's Coppa italia and Italian Super Cup victories. ? The FIGC has been contacted for comment. GUARDIOLA TURNS DOWN JOB A source familiar with the?discussions on?Friday said that the reported agreement was reached hours after former Manchester City manager?Pep guardiola rejected a proposal to become Italy's head coach. The 55-year old Spaniard had talks about becoming Italy's coach. FIGC President Giovanni Malago suggested that financial flexibility could have been shown to a candidate with his stature. Italy has been looking for a new manager since Gennaro Gattiso quit in April, after failing to qualify for the third consecutive World Cup finals. The FIGC has also spoken to Brazil coach Carlo Ancelotti. Guardiola, who left City last season, had a successful decade as manager. He won six Premier League titles including four consecutively, three FA Cups, five League Cups, and the Champions League. Guardiola won three LaLiga titles, two Champions League titles, and two Champions League titles at Barcelona before he arrived at City. He also added three Bundesliga titles during his time at Bayern Munich. The Italian football system is in crisis. A new national team coach has been appointed to help rebuild the youth development and talent pipeline systems that have deteriorated in this country, where football is still a national obsession. Reporting by Pearl Josephine Nazare from Bengaluru, and Elvira pollina from Milan. Editing by Toby Davis & Ed Osmond.
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Investors watch MidEast developments before Fed meeting as Brent falls over 4%.
Brent crude fell on Friday as it retreated from above $100 per barrel. Meanwhile, investors analyzed the Middle East conflict to determine its implications for inflation in advance of next week's U.S. rate decision. By 11:50 am EDT (1550 GMT), spot gold had risen 0.6% to $4,073.23 an ounce after falling 2% the previous session. Prices are up 1.4% so far this week, thanks to dip-buying early in the week. U.S. Gold Futures for August Delivery gained 0.6% to $4,075.90. "Gold and Silver are carving out bases around $3,950 each and $55 respectively, despite the relentlessly rising yields. Gold feels ready to move higher. While a stop-loss below $3,950 can't be excluded, a sharp war escalated, a?Fed on hold next weekend would help, said Tai Wong. Brent crude oil fell by?over 4 percent after it rose over 7 percent to reach $100 for the first session since May. This was after Iran-aligned Houthis claimed they had hit two Saudi oil tanks in the Red Sea. Bullion is down about 23% in the last few months since the U.S. war against Iran began late February. This has been a result of expectations that inflation due to war could keep interest rates high for longer. Gold is often seen as an inflation hedge, but higher interest rates can be detrimental to the metal. Investors are now awaiting the U.S. Federal Reserve policy meeting result next week. It is?largely anticipated that it will?keep rates unchanged. According to the CME FedWatch Tool, traders are pricing in an 80% probability of a U.S. interest rate hike in September. Recent strength in bullion seems to be driven by dip-buying and short covering. The sharp decline from the record highs of earlier this year has been followed by a recovery. Silver spot rose by 1.9%, to 58.77 dollars per ounce. Platinum fell by 0.5%, to 1,592.89 dollars, while palladium gained 0.2%, to $1259.42.
ROI-Inflation-spooked rates markets have overshot: McGeever
The markets overshoot and the recent dramatic increase in bets placed on higher interest rates due to the Middle East energy crisis is the latest example: although the move was logical, its magnitude remains questionable.
The Iran War shows no signs of stopping and the?markets are still in flux. Rates traders may need to take a break and re-evaluate.
The abrupt change in global 'rate outlook' reflects concerns about the short-term impact on inflation of the soaring prices for oil and gas. Federal Reserve now has a higher probability of raising U.S. interest rates in this year rather than cutting them. The European Central Bank and Bank of England will also likely increase their rates multiple times starting next month.
Zoom in on the shifts in Europe.
On February 27, a day before the joint U.S. - Israeli strike on Iran, UK rate futures indicated 50 basis points of ease by the end of the year, or two quarter point rate cuts. This has now changed to almost 75 basis point?of tightening or three rate hikes.
It is remarkable to see a 125-basis-point swing in just a few weeks.
Euro zone futures are now pricing in two rate increases, from implying the ECB would keep its key rate at 2% throughout the remainder of the year.
This hawkish course could be realized. The policymakers have not recovered from the mistake they made in 2021-22 when they misread "transitory inflation". The last two times that they increased?rates when oil was well above $100 per barrel, in 2008 and 2011, they were widely blamed for policy mistakes.
Limits of 2022 Comparative Analysis
Many analysts draw parallels between the current energy crisis and that caused by Russia's invasion in Ukraine in February of 2022, which helped to fuel "the worst bout of inflation on developed markets in decades."
There are some key differences.
Interest rates in February 2022 were significantly lower than those at the beginning of this crisis. The G4 central banks' policy rates were close to zero at that time, and the ECB, Bank of Japan, and Bank of Japan were in negative territory.
In addition, trillions of dollars in stimulus money for pandemic fighting and the explosion of economic activity following lockdowns also contributed to inflation in 2022. Early 2022, real interest rates were negative.
The combination of super-easy fiscal policy and monetary policies meant that inflation was far from temporary. The U.S. inflation rate has not returned to its target despite the biggest hike cycle in over 40 years.
Today, fiscal stimulus is on the agenda. Governments from Washington to Tokyo and Berlin are all set to cut taxes while spending heavily on energy and defense. These volumes are not as large as the pandemic-fighting package that was worth at least 10% GDP.
GOLDMAN AND CITI STICK WITH US RATE CUT VIEW
Goldman Sachs economists and Citi analysts are part of a shrinking group that is fighting the tide of forecast revisions. They also want the Fed to act quickly and raise interest rates in order to curb price pressures.
Jan Hatzius, Andrew Hollenhorst, and their team at Citi are sticking to their three-cut call.
They claim that any inflation will be temporary, lasting perhaps a few weeks, but the risks for growth and employment are much greater. They expect a temporary shock to the supply that will raise prices, but also deal a greater blow to demand.
It's not impossible. The Purchasing Managers' Index data released on Tuesday revealed that the U.S. Private Sector output in March was at its lowest level in 11 months. Activity in the Euro Zone also fell to a 10 month low. In Britain, activity expanded at its slowest rate in six months.
The rate markets should be nervous given the magnitude and speed of the energy shock. It will be difficult to justify a rate increase if the economy is slowing down and unemployment is on the rise, even if inflation is higher than target in both Britain and America.
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(source: Reuters)