AFP

FBI raid on Trump's home sparks political firestorm

The dramatic FBI raid on Donald Trump’s palatial Florida residence has supercharged the polarizing political debate around the slew of judicial investigations facing the former president as he considers another White House run.

Monday’s shock action marked a stunning escalation of legal probes into the 45th US president, drawing cheers from his political foes and condemnation from his allies.

“Nothing like this has ever happened to a President of the United States before,” the 76-year-old Trump said of the day-long FBI search of his Mar-a-Lago resort.

He denounced the FBI raid as “weaponization of the Justice System” by “Radical Left Democrats who desperately don’t want me to run for President in 2024.”

The FBI declined to provide a reason for the unprecedented move against a former chief executive.

But multiple US media outlets said agents were conducting a court-authorized search related to the potential mishandling of classified documents that had been sent to Mar-a-Lago after Trump left the White House in January 2021.

Trump has also been facing intense legal scrutiny for his efforts to overturn the results of the 2020 election and the January 6 attack on the US Capitol by his supporters.

Since leaving office, Trump has remained the country’s most divisive figure, continuing to sow falsehoods that he actually won the 2020 vote.

– ‘Deep concern’ –

Leading Republicans rallied around the former president, who was not present at Mar-a-Lago when the raid took place.

Trump’s former vice president Mike Pence, a potential 2024 rival, expressed “deep concern” over the search of Trump’s home and said it smacks of “partisanship” by the Justice Department.

Kevin McCarthy, who is seeking to become speaker of the House of Representatives if Republicans win November’s midterm elections, accused the Justice Department of “weaponized politicization.”

Republican Party chairwoman Ronna McDaniel called the raid “outrageous.”

Republican Senator Lindsey Graham, a close Trump ally, said “launching an investigation of a former President this close to an election is beyond problematic.”

Dan Scavino, Trump’s former social media manager, urged him to accelerate an announcement that he would run again.

“DO IT — 45! #TRUMP2024,” Scavino tweeted.

– ‘No one is above the law’ –

Democrats reacted cautiously or withheld comment.

“No person is above the law,” Nancy Pelosi, the Democratic speaker of the House, told NBC. “Not even a former president of the United States.”

Senator Chris Murphy, a Democrat from Connecticut, said “once we decide that the rich and powerful are above the law, we stop being America.”

In his statement, Trump did not give any indication about why the FBI raided his home but said: “They even broke into my safe!”

Andrew McCabe, a former FBI deputy director, said he believed agents may have been looking for “something specific” related to its probe into the handling of classified information.

The National Archives said in February that it had recovered 15 boxes of documents from Mar-a-Lago and asked the Justice Department to look into Trump’s handling of classified material.

The recovery of the boxes raised questions about Trump’s adherence to presidential records laws enacted after the 1970s Watergate scandal that require Oval Office occupants to preserve records.

Speaking on CNN, McCabe said “there had to be a suspicion, a concern and indeed specific information that led (the FBI) to believe that there were additional materials that were not turned over.”

– ‘Some sort of massive overreach’ –

Trump’s former communications director Alyssa Farah Griffin told CNN the raid could fire up his supporters, a small number of whom rallied outside Mar-a-Lago on Tuesday.

“If it’s seen as some sort of massive overreach and not something incredibly serious, this is a very good day for Donald Trump,” Farah Griffin said.

For weeks, Washington has been riveted by hearings in Congress about the January 6 storming of the Capitol and Trump’s attempts to overturn the election won by Democrat Joe Biden.

Attorney General Merrick Garland has been careful not to tip his hand when asked whether the Justice Department is building a legal case against Trump over the Capitol riot.

“No one is above the law,” Garland has said, while adding that he intends to “hold accountable every person who is criminally responsible for trying to overturn a legitimate election.”

An administration official said the White House “did not have notice of the reported action” and referred further questions to the Justice Department.

Trump is also being investigated for his efforts to alter the 2020 voting results in the state of Georgia, while his business practices are being probed in New York in separate cases, one civil and the other criminal.

Russia launches Iranian satellite amid Ukraine war concerns

An Iranian satellite launched by Russia blasted off from Kazakhstan Tuesday and reached orbit amid controversy that Moscow might use it to boost its surveillance of military targets in Ukraine.

As Russia’s international isolation grows following Western sanctions over its invasion of Ukraine, the Kremlin is seeking to pivot Russia towards the Middle East, Asia and Africa and find new clients for the country’s embattled space programme.

Speaking at the Moscow-controlled Baikonur cosmodrome in the Kazakh steppe, Russian space chief Yury Borisov hailed “an important milestone in Russian-Iranian bilateral cooperation, opening the way to the implementation of new and even larger projects”.

Iran’s Telecommunications Minister Issa Zarepour, who also attended the launch of the Khayyam satellite, called the event “historic” and “a turning point for the start of a new interaction in the field of space between our two countries”.

Nasser Kanani, the Iranian foreign ministry spokesman, said on Twitter that “the brilliant path of scientific and technological progress of the Islamic republic of Iran continues despite sanctions and the enemies’ maximum pressure”.

Iran, which has maintained ties with Moscow and refrained from criticism of the Ukraine invasion, has sought to deflect suspicions that Moscow could use Khayyam to spy on Ukraine.

Last week, The Washington Post quoted anonymous Western intelligence officials as saying that Russia “plans to use the satellite for several months or longer” to assist its war efforts before allowing Iran to take control.

Less than two hours after the satellite was launched on a Soyuz-2.1b rocket, the Iran Space Agency (ISA) said “ground stations of the Iran Space Agency” had already received “first telemetric data”. 

The space agency stressed on Sunday that the Islamic republic would control the satellite “from day one” in an apparent reaction to the Post’s report.

“No third country is able to access the information” sent by the satellite due to its “encrypted algorithm”, it said.

The purpose of Khayyam is to “monitor the country’s borders”, enhance agricultural productivity and monitor water resources and natural disasters, according to the space agency.

– ‘Long-term cooperation’ –

Khayyam, apparently named after the 11th-century Persian polymath Omar Khayyam, will not be the first Iranian satellite that Russia has put into space. 

In 2005, Iran’s Sina-1 satellite was deployed from Russia’s Plesetsk cosmodrome.

Iran is currently negotiating with world powers, including Moscow, to salvage a 2015 deal aimed at reining in Tehran’s nuclear ambitions.

The United States — which quit the landmark Joint Comprehensive Plan of Action or JCPOA in 2018 under then-president Donald Trump — has accused Iran of effectively supporting Russia’s war against Ukraine while adopting a “veil of neutrality”.

Russian President Vladimir Putin met Iranian counterpart Ebrahim Raisi and Supreme Leader Ayatollah Ali Khamenei in Tehran last month — one of his few trips abroad since Moscow’s February 24 invasion. 

Iran’s Khamenei called for “long-term cooperation” with Russia during their meeting, and Tehran has refused to join international condemnation of Moscow’s invasion of its pro-Western neighbour.

Iran insists its space programme is for civilian and defence purposes only, and does not breach the 2015 nuclear deal, or any other international agreement. 

Western governments worry that satellite launch systems incorporate technologies interchangeable with those used in ballistic missiles capable of delivering a nuclear warhead, something Iran has always denied wanting to build.

Iran successfully put its first military satellite into orbit in April 2020, drawing a sharp rebuke from the United States.

On the eve of the Khayyam launch, ISA praised “the high reliability factor of the Soyuz launcher”.

Borisov, who last month replaced bombastic nationalist Dmitry Rogozin as head of the Russian space agency, had acknowledged that the national space industry is in a “difficult situation” amid tensions with the West.

Russia will continue its space programme but end activities at the International Space Station — an outlier of cooperation between Moscow and the West — after 2024, he said.

Russia says ammunition detonated at Crimea base, one dead

Russia Tuesday attributed loud blasts at a key military airbase on the Moscow-annexed Crimean peninsula to exploding ammunitions, downplaying the possibility that the site was hit by Ukrainian fire.

Dramatic amateur footage shared on social media appeared to show panicked holidaymakers fleeing a Crimean beach with young children, as ballooning clouds of grey smoke rose over the horizon.

The blasts rocked the Saki airfield on the 167th day of Moscow’s invasion.

Russia annexed the Crimean peninsula in 2014 and has used the region as a staging ground for its attacks on Ukraine, but it has rarely been a target for Ukrainian forces.

The Russian defence ministry said “several aviation munitions detonated” at the base in an incident the head of the region said had left one person dead. 

Local health officials earlier said five people, including one child, had been injured.

The defence ministry said it was looking to establish the reason for the explosions but indicated the airfield was not targeted in an attack.

There was no immediate reaction from Kyiv.

Ukraine’s army, which for months pleaded for long-range artillery from Western allies, has been hitting targets deeper in Russian-held territory since some started arriving in recent weeks. 

Kyiv has also taken credit for several acts of sabotage inside Russian-held territory.

Moscow seized Crimea from Ukraine in the wake of massive nationwide street demonstrations that led to the ouster of a Kremlin-friendly president.

Those protests precipitated fighting between the army and Moscow-backed separatists in eastern Ukraine, which would lay the groundwork for Moscow’s full-scale assault on February 24 this year.

The invasion has left thousands dead, forced millions in Ukraine from their homes, and led to a deep rupture in economic ties between Russia and the West.

– Mandatory evacuations –

In response to economic sanctions against Moscow for the invasion, Russia has squeezed gas deliveries to Europe.

It announced on Tuesday that its oil deliveries through Ukraine had been halted.

Transneft, the Russian pipeline operator, said the Ukrainian side had stopped flows because it was “not receiving funds for these services”.

The Ukrainian side did not comment.

One of the impacted countries, Slovakia, confirmed flows had been halted for several days, and a spokesman for Bratislava refinery Slovnaft cited “technical problems at the bank level in connection with the payment of transit fees from the Russian side”.

The Kremlin lashed out after Ukrainian President Volodymyr Zelensky said in an interview that Europe should close their borders to Russians in response to the war. 

The Ukrainian leader told The Washington Post that current Western sanctions against Moscow were too weak, in a call that has been echoed by Russia’s neighbours Estonia and Finland.

“The irrationality of thinking in this case is off the charts,” Kremlin spokesman Dmitry Peskov told reporters.

On the frontlines, Ukraine said Russia was pursuing a campaign of bombardment of the east of the country that has left much of the industrial Donbas region in ruins.

Kyiv said Tuesday it had transported at least 3,000 people out of the battle-scarred eastern region of Donetsk since it ordered evacuations ahead of winter. 

The Ukrainian authorities are asking people to leave the area, as they do not expect to be able to provide it with heat during the cold winter months.

The presidency earlier said that three people had been killed and 19 more wounded in Russian shelling across the Donetsk region on Monday.

The head of the central region of Dnipro, meanwhile, said that 11 medical facilities had relocated there from the battle-torn Kharkiv and Lugansk regions further east.

“Those facilities transferred over 100 pieces of equipment and 10 ambulances,” Dnipro regional governor Valentyn Reznichenko said.

“The hospitals are restarting work. They are mostly receiving displaced people.”

Biden signs major semiconductors investment bill to compete against China

President Joe Biden signed into law Tuesday a multibillion dollar bill boosting domestic semiconductor and other high-tech manufacturing sectors that US leaders fear risk being dominated by rival China.

The Chips and Science Act includes around $52 billion to promote production of microchips, the tiny but powerful and relatively hard-to-make components at the heart of almost every modern piece of machinery.

Tens of billions of dollars more are allocated for scientific research and development.

The White House says the government commitment to bolstering high-tech industries is already drawing in large-scale private investors, with some $50 billion in new semiconductor investment alone. The lion’s share of that is a plan announced by US firm Micron to put $40 billion into domestic expansion by 2030.

Biden said at a White House speech that the cash injection from the Chips Act will help “win the economic competition in the 21st century.”

Entrepreneurs are “the reason why I’m so optimistic about the future of our country,” he said, and “the Chips and Science Act supercharges our efforts to make semiconductors here in America.”

One of the Democrat’s key themes since taking office has been the need to revamp US leadership in cutting-edge innovation and rebuild the homegrown industrial base in the face of China’s mammoth state-backed investments.

Semiconductors are of particular concern because they are vital to everything from washing machines to sophisticated weapons and nearly all are made abroad.

Although the semiconductor was invented in the United States, the country only produces around 10 percent of global supply, according to the White House, with some 75 percent of US supplies coming from east Asia.

“Today’s signing of the bipartisan Chips Act is a historic investment in America’s future. It will boost microchip production at home, strengthen our supply chains, increase domestic research and development, and bolster our national security,” said US Chamber of Commerce vice president Neil Bradley.

– Wider economic, political appeal –

Biden is also counting on the Chips Act to generate enthusiasm among voters, as his Democratic party tries to defend a thin congressional majority from a Republican takeover in this November’s midterm elections.

He told Americans that studies show the expansion of factories will create around a million construction jobs over the next six years — and these will be “union jobs” that pay “the prevailing wage.”

On Wednesday, Biden will sign another bill increasing funding for military veterans exposed to toxins. Like the Chips bill, this won bipartisan support in the usually bitterly divided Congress.

Shortly, Biden is also expected to be signing an enormous domestic investment bill — backed only by Democrats — aimed at fighting climate change and reducing health care costs.

Reflecting on the string of successes in Congress and the sudden momentum for his long stalled agenda, Biden predicted that “people will look back at this week and all we passed, and all we moved on, that we met the moment at this inflection point in history.”

“We bet on ourselves, believed in ourselves and recaptured the story, the spirit and the soul of this nation,” he said.

Biden signs major semiconductors investment bill to compete against China

President Joe Biden signed into law Tuesday a multibillion dollar bill boosting domestic semiconductor and other high-tech manufacturing sectors that US leaders fear risk being dominated by rival China.

The Chips and Science Act includes around $52 billion to promote production of microchips, the tiny but powerful and relatively hard-to-make components at the heart of almost every modern piece of machinery.

Tens of billions of dollars more are allocated for scientific research and development.

The White House says the government commitment to bolstering high-tech industries is already drawing in large-scale private investors, with some $50 billion in new semiconductor investment alone. The lion’s share of that is a plan announced by US firm Micron to put $40 billion into domestic expansion by 2030.

Biden said at a White House speech that the cash injection from the Chips Act will help “win the economic competition in the 21st century.”

Entrepreneurs are “the reason why I’m so optimistic about the future of our country,” he said, and “the Chips and Science Act supercharges our efforts to make semiconductors here in America.”

One of the Democrat’s key themes since taking office has been the need to revamp US leadership in cutting-edge innovation and rebuild the homegrown industrial base in the face of China’s mammoth state-backed investments.

Semiconductors are of particular concern because they are vital to everything from washing machines to sophisticated weapons and nearly all are made abroad.

Although the semiconductor was invented in the United States, the country only produces around 10 percent of global supply, according to the White House, with some 75 percent of US supplies coming from east Asia.

“Today’s signing of the bipartisan Chips Act is a historic investment in America’s future. It will boost microchip production at home, strengthen our supply chains, increase domestic research and development, and bolster our national security,” said US Chamber of Commerce vice president Neil Bradley.

– Wider economic, political appeal –

Biden is also counting on the Chips Act to generate enthusiasm among voters, as his Democratic party tries to defend a thin congressional majority from a Republican takeover in this November’s midterm elections.

He told Americans that studies show the expansion of factories will create around a million construction jobs over the next six years — and these will be “union jobs” that pay “the prevailing wage.”

On Wednesday, Biden will sign another bill increasing funding for military veterans exposed to toxins. Like the Chips bill, this won bipartisan support in the usually bitterly divided Congress.

Shortly, Biden is also expected to be signing an enormous domestic investment bill — backed only by Democrats — aimed at fighting climate change and reducing health care costs.

Reflecting on the string of successes in Congress and the sudden momentum for his long stalled agenda, Biden predicted that “people will look back at this week and all we passed, and all we moved on, that we met the moment at this inflection point in history.”

“We bet on ourselves, believed in ourselves and recaptured the story, the spirit and the soul of this nation,” he said.

Biden signs major semiconductors investment bill to compete against China

President Joe Biden signed into law Tuesday a multibillion dollar bill boosting domestic semiconductor and other high-tech manufacturing sectors that US leaders fear risk being dominated by rival China.

The Chips and Science Act includes around $52 billion to promote production of microchips, the tiny but powerful and relatively hard-to-make components at the heart of almost every modern piece of machinery.

Tens of billions of dollars more are allocated for scientific research and development.

The White House says the government commitment to bolstering high-tech industries is already drawing in large-scale private investors, with some $50 billion in new semiconductor investment alone. The lion’s share of that is a plan announced by US firm Micron to put $40 billion into domestic expansion by 2030.

Biden said at a White House speech that the cash injection from the Chips Act will help “win the economic competition in the 21st century.”

Entrepreneurs are “the reason why I’m so optimistic about the future of our country,” he said, and “the Chips and Science Act supercharges our efforts to make semiconductors here in America.”

One of the Democrat’s key themes since taking office has been the need to revamp US leadership in cutting-edge innovation and rebuild the homegrown industrial base in the face of China’s mammoth state-backed investments.

Semiconductors are of particular concern because they are vital to everything from washing machines to sophisticated weapons and nearly all are made abroad.

Although the semiconductor was invented in the United States, the country only produces around 10 percent of global supply, according to the White House, with some 75 percent of US supplies coming from east Asia.

“Today’s signing of the bipartisan Chips Act is a historic investment in America’s future. It will boost microchip production at home, strengthen our supply chains, increase domestic research and development, and bolster our national security,” said US Chamber of Commerce vice president Neil Bradley.

– Wider economic, political appeal –

Biden is also counting on the Chips Act to generate enthusiasm among voters, as his Democratic party tries to defend a thin congressional majority from a Republican takeover in this November’s midterm elections.

He told Americans that studies show the expansion of factories will create around a million construction jobs over the next six years — and these will be “union jobs” that pay “the prevailing wage.”

On Wednesday, Biden will sign another bill increasing funding for military veterans exposed to toxins. Like the Chips bill, this won bipartisan support in the usually bitterly divided Congress.

Shortly, Biden is also expected to be signing an enormous domestic investment bill — backed only by Democrats — aimed at fighting climate change and reducing health care costs.

Reflecting on the string of successes in Congress and the sudden momentum for his long stalled agenda, Biden predicted that “people will look back at this week and all we passed, and all we moved on, that we met the moment at this inflection point in history.”

“We bet on ourselves, believed in ourselves and recaptured the story, the spirit and the soul of this nation,” he said.

France readies rescue of beluga astray in Seine

French marine experts will attempt Tuesday to rescue a beluga whale that swam up the Seine river and return it to the sea, officials said, a complex and risky operation for an animal already sick and malnourished.

The four-metre (13-foot) cetacean, a protected species usually found in cold Arctic waters, was spotted a week ago heading towards Paris, and is now some 130 kilometres (81 miles) inland.

“An operation to transport the beluga astray in the Seine will be attempted this evening,” said government officials in the Eure department, who are orchestrating the effort.

The animal’s progress inland has been blocked by a lock at Saint-Pierre-La-Garenne in Normandy, and its health has deteriorated after it refused to eat.

But its condition is currently “satisfactory”, Isabelle Brasseur of the Marineland sea animal park in southern France, Europe’s biggest, told AFP.

She is part of a Marineland team sent to assist with the rescue, alongside the Sea Shepherd France NGO.

“What’s exceptional is that here the banks of the Seine are not accessible for vehicles… everything is going to have to be done by hand,” Brasseur said.

So far the beluga has not turned around, and experts have dismissed any attempt to “nudge” it back toward the English Channel with boats, saying it would stress the weakened animal and probably be futile in any case.

Starting at around 8:00 pm (1800 GMT), the team will try to get the animal weighing 800 kilogrammes (nearly 1,800 pounds) onto a refrigerated truck and drive it to an undisclosed seawater basin where it can be treated for several days before being released into the open sea, the Eure authorities said.

“There it will, we hope, have a better chance of survival,” said NGO Sea Shepherd France, which is assisting the operation, Tuesday.

It added that tranquilisation is not an option, since belugas are so-called “voluntary breathers” that need to be awake to inhale air.

– ‘Have to get it out’ –

“In any case, we have to get it out of there… and try to figure out what is wrong,” Brasseur said.

Veterinarians will keep constant watch during the move.

“There may be internal problems that we can’t see,” she said, despite the fact that belugas are “extremely hardy” as a species.

Interest in the beluga’s fate has spread far beyond France, generating a large influx of financial donations and other aid from conservation groups as well as individuals, officials said.

Sea Shepherd on Monday issued an appeal in particular for heavy-duty ropes, nets, mattresses and other equipment. 

Belugas are normally found only in cold Arctic waters, and while they migrate south in the autumn to feed as ice forms, they rarely venture so far.

According to France’s Pelagis Observatory, specialised in sea mammals, the nearest beluga population is off the Svalbard archipelago, north of Norway, 3,000 kilometres from the Seine.

The trapped whale is only the second beluga ever sighted in France. The first was pulled out of the Loire estuary in a fisherman’s net in 1948.

burs-jh/kjm

UK meteorologists, water firms issue warnings as extreme heatwave looms

The UK’s meteorological agency on Tuesday issued an “amber” warning for extreme heat while the country’s biggest water provider said restrictions loom, as Britain braces for another punishing heatwave later this week. 

The warning by the Met Office, covering much of southern England and parts of eastern Wales from Thursday through Sunday, predicts possible impacts to health, transport and infrastructure from the heat.  

Temperatures are set to soar to the mid-30s Celsius for several days, it noted.

The sweltering conditions come just weeks after the last heatwave pushed the mercury over 40 degrees Celsius (104 degrees Fahrenheit) for the first time in Britain.

Climate scientists overwhelmingly agree that carbon emissions from humans burning fossil fuels are heating the planet, raising the risk and severity of droughts, heatwaves, and other extreme weather events.

“Thanks to persistent high pressure over the UK, temperatures will be rising day-on-day through this week and an extreme heat warning has been issued,” Met Office deputy chief meteorologist Dan Rudman said in a statement.  

Months of exceptionally dry weather across England are taking their toll, with Thames Water — which supplies London and its surroundings — the latest water provider to warn of imminent restrictions.

The firm said it is planning to issue a so-called hosepipe ban in the coming weeks “given the long-term forecast” of hot and dry weather for the southeast.

Several other UK water suppliers have already announced similar moves ahead of this week’s heatwave, but Thames Water’s 15 million customers would make it the most impactful so far.

The Met Office has confirmed it was the driest July in England since 1935, and little or no rain is forecast for most of the parched areas in the short term.

“Water companies are already managing the unprecedented effects of the driest winter and spring since the 1970s,” said Peter Jenkins, of Water UK, which represents the industry.

“With more hot, dry weather forecast, it’s crucial we be even more mindful of our water use to minimise spikes in demand and ensure there’s enough to go around.”

The parched conditions have seen wildfires break out near houses, including on the outskirts of London, a relatively rare occurrence in Britain.

In neighbouring France, a “historic” drought currently exacerbated by a third extreme heatwave this summer has seen a spate of wildfires nationwide as well as water restrictions ordered in nearly all its 96 mainland departments.

More than 47,000 hectares have already burnt in France this year, including a record amount in July alone, according to the European Union’s satellite monitoring service EFFIS.

On Tuesday, more than 3,000 people in southern France’s Aveyron region, including holidaymakers, were evacuated as a fire swept through at least 700 hectares of vegetation without causing any injuries.

Stock markets lower on eve of US inflation data

Stock markets were mostly lower and the dollar fell on Tuesday as investors nervously await the release of key US inflation data later this week, traders said.

If the data, scheduled for publication on Wednesday, come in above analysts’ forecasts, the markets could see a sharp sell-off, analysts warned.

With inflation already at the highest level in 40 years, concern is growing that further monetary tightening by the world’s major central banks could go too far and tip the global economy into recession.

The inflation data “could effectively set the mood for the rest of the summer,” said OANDA analyst, Craig Erlam.

“That seems quite dramatic, but if we fail to see a drop in the headline rate… it could really take the wind out of the sails of stock markets as it would be very difficult for the (US Federal Reserve) to then hike by anything less than 75 basis points in September,” the expert said.

The US central bank has already raised borrowing costs by three-quarters of a percentage point twice in recent months in a bid to tame runaway prices.

Swissquote Bank analyst Ipek Ozkardeskaya said the recent drop in energy and commodity prices “should have a cooling effect… but higher labour costs could keep inflation sticky at undesirably high levels”.

Oil prices rose, but remain around six-month lows as recession fears mount and investors fret over the impact on demand. 

The markets are also keeping an eye on Iran nuclear talks after the European Union submitted a “final text” at negotiations to salvage a 2015 deal.

An agreement could open the way for Tehran to resume sales of crude on international markets, partly filling the gap left by the ban on Russian exports following the invasion of Ukraine. 

Edward Moya, analyst at OANDA trading group, said “it seems unlikely a breakthrough will happen anytime soon. 

“Tehran seems like they are willing to negotiate, but an imminent decision to agree to the EU’s proposal seems unlikely,” he said. 

– Key figures at around 1545 GMT –

New York – Dow: FLAT at 32,822.27 points

London – FTSE 100: UP 0.1 percent at 7,488.15 (close)

Frankfurt – DAX: DOWN 1.1 percent at 13,534.97 (close)

Paris – CAC 40: DOWN 0.5 percent at 6,490.00 (close)

EURO STOXX 50: DOWN 1.1 percent at 3,715.37

Tokyo – Nikkei 225: DOWN 0.9 percent at 27,999.96 (close)

Hong Kong – Hang Seng Index: DOWN 0.2 percent at 20,003.44 (close)

Shanghai – Composite: UP 0.3 percent at 3,247.43 (close)

Euro/dollar: UP at $1.0227 from $1.0194 Monday

Pound/dollar: UP at $1.2091 from $1.2079

Euro/pound: UP at 84.60 pence from 84.35 pence

Dollar/yen: UP at 135.00 yen from 134.98 yen

Brent North Sea crude: UP 0.2 percent at $96.81 per barrel

West Texas Intermediate: DOWN 0.1 percent at $90.66 per barrel

Stock markets lower on eve of US inflation data

Stock markets were mostly lower and the dollar fell on Tuesday as investors nervously await the release of key US inflation data later this week, traders said.

If the data, scheduled for publication on Wednesday, come in above analysts’ forecasts, the markets could see a sharp sell-off, analysts warned.

With inflation already at the highest level in 40 years, concern is growing that further monetary tightening by the world’s major central banks could go too far and tip the global economy into recession.

The inflation data “could effectively set the mood for the rest of the summer,” said OANDA analyst, Craig Erlam.

“That seems quite dramatic, but if we fail to see a drop in the headline rate… it could really take the wind out of the sails of stock markets as it would be very difficult for the (US Federal Reserve) to then hike by anything less than 75 basis points in September,” the expert said.

The US central bank has already raised borrowing costs by three-quarters of a percentage point twice in recent months in a bid to tame runaway prices.

Swissquote Bank analyst Ipek Ozkardeskaya said the recent drop in energy and commodity prices “should have a cooling effect… but higher labour costs could keep inflation sticky at undesirably high levels”.

Oil prices rose, but remain around six-month lows as recession fears mount and investors fret over the impact on demand. 

The markets are also keeping an eye on Iran nuclear talks after the European Union submitted a “final text” at negotiations to salvage a 2015 deal.

An agreement could open the way for Tehran to resume sales of crude on international markets, partly filling the gap left by the ban on Russian exports following the invasion of Ukraine. 

Edward Moya, analyst at OANDA trading group, said “it seems unlikely a breakthrough will happen anytime soon. 

“Tehran seems like they are willing to negotiate, but an imminent decision to agree to the EU’s proposal seems unlikely,” he said. 

– Key figures at around 1545 GMT –

New York – Dow: FLAT at 32,822.27 points

London – FTSE 100: UP 0.1 percent at 7,488.15 (close)

Frankfurt – DAX: DOWN 1.1 percent at 13,534.97 (close)

Paris – CAC 40: DOWN 0.5 percent at 6,490.00 (close)

EURO STOXX 50: DOWN 1.1 percent at 3,715.37

Tokyo – Nikkei 225: DOWN 0.9 percent at 27,999.96 (close)

Hong Kong – Hang Seng Index: DOWN 0.2 percent at 20,003.44 (close)

Shanghai – Composite: UP 0.3 percent at 3,247.43 (close)

Euro/dollar: UP at $1.0227 from $1.0194 Monday

Pound/dollar: UP at $1.2091 from $1.2079

Euro/pound: UP at 84.60 pence from 84.35 pence

Dollar/yen: UP at 135.00 yen from 134.98 yen

Brent North Sea crude: UP 0.2 percent at $96.81 per barrel

West Texas Intermediate: DOWN 0.1 percent at $90.66 per barrel

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