US Business

Markets fluctuate, oil falls again as recession warnings build

Asian markets mostly rose Thursday on bargain buying after the previous day’s battering, though oil extended losses after US Federal Reserve boss Jerome Powell admitted the economy could tip into recession as the bank hikes interest rates to fight runaway inflation.

Soaring prices and the battle by central banks to rein them in have sent a chill through global trading floors this year, while investors are also having to deal with the uncertainty brought by the Ukraine war and patchy pandemic recovery.

Commentators have warned for some time that the world economy could be heading for another contraction owing to the sharp increase in borrowing costs and rampant inflation, which is at decades highs in several countries.

And on Wednesday, the head of the most powerful central bank in the world told lawmakers it was “certainly a possibility”.

While saying the economy was strong enough for rates to rise, he added that “frankly, the events of the last few months around the world have made it more difficult for us to achieve what we want, which is two percent inflation and still a strong labour market.”

He also warned: “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store.”

The Fed this month hiked rates by 75 basis points and is expected to do the same in July, with some observers predicting two more such moves after that.

After a day of swings, Wall Street ended in negative territory, though off big early lows.

Asia fluctuated in the morning but enjoyed a more positive afternoon, though optimism remains at a premium among investors, and analysts warned it was unlikely to improve anytime soon.

Hong Kong and Shanghai led gains thanks to a pick-up in tech firms after Chinese President Xi Jinping chaired a meeting Wednesday that pushed for “healthy” development of the fintech sector, adding to optimism that a crackdown on the industry may be coming to an end.

Xi also reaffirmed the country’s 5.5 percent growth target for this year despite months of lockdown-induced pain for the economy.

The comments suggest the government will unveil market-friendly measures to boost growth.

Tokyo, Sydney, Singapore, Mumbai, Bangkok and Wellington were higher, but Seoul, Taipei, Manila and Jakarta fell.

London, Paris and Frankfurt sank, with data showing the eurozone economy slowed sharply in June. There were also concerns about Germany after it raised its gas alert level owing to Russia’s war in Ukraine, with the country moving a step closer to rationing.

“Having listened to Powell’s lengthy Senate testimony… it is clear that inflation is the domestic issue at the top of the political agenda,” said SPI Asset Management’s Stephen Innes. 

“Powell consistently bobbed and weaved his way through commenting on anything of fiscal nature but was focused on deploying the tools within the Fed’s power to address their dual mandate” of reining in inflation and keeping unemployment in check. 

“So we should still position for more rate hike fallout to occur.”

Powell’s comments came as other top economists added to the recession talk, with former New York Fed President Bill Dudley saying it was “inevitable within the next 12 to 18 months”.

And Deutsche Bank CEO Christian Sewing said there was a 50 percent chance of a contraction next year.

Elon Musk, JP Morgan boss Jamie Dimon and economist Nouriel Roubini are among several others to have made similar forecasts.

“We are still in an era where uncertainty is elevated and is expected to remain so for quite a while,” said JoAnne Feeney, of Advisors Capital Management, on Bloomberg Television.

“It’s risky right now in terms of the forward outlook for the global economy. Recession risk has clearly risen.”

The prospect of a retreat in the global economy continued to drag oil prices down as traders fret over demand, with both main contracts down around one percent, having tumbled on Wednesday. However, they were well off morning lows.

Brent and WTI have dropped around 15 percent over the past week, even with sanctions on Russian crude exports and China’s gradual reopening from lockdowns.

Adding to the selling was data Wednesday indicating a jump in US stockpiles.

“A slowdown in global growth is a risk to oil demand, which could help ease some of the tightness in the market,” Warren Patterson, at ING Groep, said. 

“Already, we have seen demand estimates revised lower.”

– Key figures at around 0810 GMT –

Tokyo – Nikkei 225: UP 0.1 percent at 26,171.25 (close)

Hong Kong – Hang Seng Index: UP 1.3 percent at 21,273.87 (close)

Shanghai – Composite: UP 1.6 percent at 3,320.15 (close)

London – FTSE 100: DOWN 0.8 percent at 7,029.19

West Texas Intermediate: DOWN 1.9 percent at $104.23 per barrel

Brent North Sea crude: DOWN 1.6 percent at $109.94 per barrel

Dollar/yen: DOWN at 135.43 yen from 136.22 yen late Wednesday

Pound/dollar: DOWN at $1.2181 from $1.2263

Euro/dollar: DOWN at $1.0508 from $1.0570

Euro/pound: UP at 86.27 pence from 86.17 pence

New York – Dow: DOWN 0.2 percent at 30,483.13 (close)

Monkeypox vaccine maker Bavarian Nordic ready to meet demand

As the lone laboratory manufacturing a licensed vaccine against monkeypox, Danish company Bavarian Nordic has seen its order book fill up as the usually rare disease spreads around the world. 

“The approval we got in 2019, when we only sold maybe a few hundred doses, all of a sudden became very, very relevant for international health,” the company’s vice president Rolf Sass Sorensen says with a smile at the biotech company’s headquarters in Copenhagen’s harbour.

Bavarian Nordic was caught by surprise by the disease’s sudden spread earlier this year to dozens of countries outside West and Central Africa where it had previously been generally confined.

But Sorensen says he is confident the company can meet global demand even though it only has one production facility.

“With the current demand we can easily supply the global market. We have a couple of million doses in bulk that we can put into vials and make sure that the current outbreak is handled,” he told AFP in an interview.

Bavarian Nordic has an annual production capacity of 30 million vaccine doses.

The Danish company’s smallpox vaccine, marketed as Imvanex in Europe, Jynneos in the US and Imvamune in Canada, is a third-generation serum (a live vaccine that does not replicate in the human body).

It has been licensed in Europe since 2013.

It was designed against smallpox in adults, a disease considered eradicated some 40 years ago, and requires two doses for inoculation.

– World clamouring for vaccine –

According to Sorensen, the vaccine is in stock “in many countries” and can also be used against monkeypox, both before and after exposure to the virus.

“If you are vaccinated a few days after you are exposed, you can also be protected”, he explained.

After getting the green light from the US Food and Drug Administration (FDA) three years ago to use its smallpox vaccine against monkeypox, Bavarian Nordic is now applying to do the same in Europe.

The European Health Emergency Preparedness and Response Authority (HERA), created by the European Commission during the Covid-19 pandemic, has already bought more than 100,000 doses for the 27 EU countries as well as Norway and Iceland.

The first deliveries are due at the end of June for those countries deemed a priority.

The United States has also filled up their stocks with an order for 500,000 doses, in addition to 100 million doses of an older smallpox vaccine previously made by France’s Sanofi but which is known to have some side effects. 

Canada and Denmark have also placed orders with Bavarian Nordic.

Other than these announcements made by the countries themselves, Bavarian Nordic — which also makes vaccines against tick-borne encephalitis, rabies, Ebola, Covid-19 and the RS respiratory virus — does not disclose which countries have placed orders.

“But I can say we have procurement requests from all over the world. We have procurement requests from the US, European countries, Middle Eastern countries, Asian countries”, Sorensen said.

The value of the contracts hasn’t been disclosed either, but for Bavarian Nordic it has clearly been a windfall: it raised its 2022 full-year outlook four times in three weeks.

– Rarely fatal –

Despite the rise in monkeypox cases worldwide, the World Health Organization has not recommended that countries mass vaccinate their populations at this stage.

The United States has so far recommended the vaccination of people who have been in close contact with an infected person, while France has recommended a single dose for contact cases in risk groups who were vaccinated for smallpox before 1980.

The European Medicines Agency approved a smallpox medication, Tecovirimat, for treatment of monkeypox earlier this year, but it is not yet widely available.

Most people recover from monkeypox within several weeks and the disease has only been fatal in rare cases.

Symptoms include lesions, eruptions on the face, palms or soles, scabs, fever, muscle ache and chills.

From January 1 to June 15, the WHO registered more than 2,103 cases and one death in 42 countries. 

Europe has been the epicentre of the outbreak, with 1,773 confirmed cases, or 84 percent of the global total.

Global food crisis 'will kill millions' by disease, health executive warns

The global food crisis sparked by the war in Ukraine will kill millions by leaving the hungriest more vulnerable to infectious diseases, potentially triggering the world’s next health catastrophe, the head of a major aid organisation has warned.

A Russian naval blockade of Ukraine’s Black Sea ports has stopped grain shipments from the world’s fourth-largest exporter of wheat and corn, raising the spectre of shortages and hunger in low-income countries.

The knock-on effects of the food shortages mean many will die not only of starvation but from having weaker defences against infectious diseases due to bad nutrition, Peter Sands, executive director of the Global Fund to Fight Aids, Tuberculosis and Malaria told AFP this week.

“I think we’ve probably already begun our next health crisis. It’s not a new pathogen but it means people who are poorly nourished will be more vulnerable to the existing diseases,” he said in an interview on the sidelines of a G20 health minister meeting in the Indonesian city of Yogyakarta.

“I think the combined impact of infectious diseases and the food shortages and the energy crisis… we can be talking about millions of extra deaths because of this,” he said.

World governments should minimise the impact of the food crisis by providing frontline healthcare to their poorest communities, who will be the most vulnerable, said the British former banker who now heads the $4 billion fund.

“That means focusing on primary healthcare so the healthcare that is delivered in the villages, in the communities. Hospitals are important but when you are faced with this kind of challenge, the most important thing is primary healthcare.”

– ‘Disaster’ –

The battle to contain the spread of coronavirus has taken resources away from the fight against tuberculosis, which killed 1.5 million people in 2020, according to World Health Organization data.

“It’s been a disaster for TB,” said Sands.

“In 2020 you saw globally 1.5 million people less getting treated for TB and tragically that means several hundreds of thousands of people will die but also that those people will infect other people.”

The health expert said solving the food crisis was now paramount in aiding the treatment of the world’s second-deadliest infectious disease.  

The West and Ukraine accuse Russia of trying to pressure them into concessions by blockading vital grain exports to increase fears of global famine.

Moscow has countered by saying that it is Western sanctions that are to blame for shortfalls in the Middle East and Africa.

Germany will host a meeting on the crisis on Friday under the title “Uniting for Global Food Security”, with US Secretary of State Antony Blinken among those attending.

“It is the poor person pandemic and because of that, it hasn’t attracted the same amount of investment in research and development,” Sands said, referring to tuberculosis. 

“This is a tragedy because this is a disease we know how to prevent, how to cure, we know how to get rid of.”

China's Xi calls for stronger fintech oversight, security

A high-level Chinese government meeting led by President Xi Jinping has called for stronger oversight and better security in financial tech, state media reported, with the sector hit hard by a regulatory crackdown.

The government action has pummelled some of China’s biggest tech firms, wiping out hundreds of billions of dollars in market value since last year.

But with the Chinese economy hammered by Covid lockdowns, the government has rolled out a series of support measures, including a call for “predictable” tech regulation.

“Regarding large payment and fintech platform enterprises, Xi called for efforts to improve regulations, strengthen institutional weak links, ensure the security of payment and financial infrastructure, and guard against and defuse potential systemic financial risks,” according to a readout of the Wednesday meeting by the official Xinhua news agency.

The Chinese leader also “called for these enterprises to be better supported in serving the real economy”, Xinhua said.

The officials at the meeting discussed  promoting the “healthy development” of fintech companies, it added, and said “China will tighten oversight” of financial holding firms and internet financial services.

Investors have been heartened in recent weeks by similar statements by the Chinese government, with some perceiving them as signals that the tech crackdown is finally easing.

Hopes also soared this month when dozens of new video games were approved, and tech stocks rose on reports that authorities were wrapping up a cybersecurity probe into ride-hailing giant Didi.

But regulators this month denied reports that they were discussing the potential revival of Ant Group’s scuppered IPO, which would have been the world’s largest public offering at the time.

Ant Group — the payments affiliate of e-commerce giant Alibaba — had its share offering cancelled at the last minute in 2020.

Alibaba was later hit with a $2.75 billion fine over alleged unfair practices.

Ant Group is set to apply for a financial licence as soon as this month, Bloomberg News reported Wednesday, citing unnamed people familiar with the matter.

Workers in Chile strike at world's largest copper producer

Workers at Chile’s state mining company Codelco, the largest producer of copper in the world, launched an open- ended strike Wednesday to protest the closure of a foundry in one of the country’s most polluted regions.

Police said they arrested 18 people as striking workers, waving Chilean flags and setting tires on fire, blocked entry to six mining facilities around the country. They did this mainly at the Ventanas foundry, which the government announced last week that it would shut down.

Union leaders said the strike had paralyzed Codelco altogether but Finance Minister Mario Marcel said it had “altered” production but not shut it down.

The Copper Workers Federation said the strike will cost Codelco — which produces around eight percent of the world’s copper amounting to 10-15 percent of Chile’s GDP — $20 million a day. Marcel contested that figure.

The FTC represents around 14,000 Codelco workers and another 40,000 external contractors, according to Pantoja.

Unions described the closure of the Ventanas foundry, located around 140 kilometers west of the capital Santiago, as “arbitrary,” and are demanding the government invests $54 million to bring the plant up to the highest environmental standards.

– ‘Standards very low’ –

Government spokeswoman Camila Vallejo said the government remains open to dialogue but that it was focused on “a more sustainable model of development.”

“Our standards are very low and if we truly want to meet our environmental commitments we have to be guided by” World Health Organization standards, she added.

Codelco’s decision comes after an incident on June 9 when 115 people, mostly school children, suffered sulphur dioxide poisoning released by heavy industry, provoking the closure of schools in the area.

It was the second such incident in a matter of just three days.

Sulphur dioxide is a classic air pollutant usually linked to the burning of fossil fuels.

Greenpeace described the area around the Ventanas plant as “Chile’s Chernobyl” following a serious incident in 2018 when around 600 people in Quintero and Puchuncavi received medical treatment for symptoms such as vomiting blood, headaches, dizziness, paralysis of their extremities and strange red marks on children’s skin.

Last week, President Gabriel Boric hit out at Chile’s record on polluting the environment.

“We don’t want any more areas of (environmental) sacrifice,” he said.

“There are now hundreds of thousands of people who live in our country exposed to severe degradation of the environment that we have provoked or allowed and, as a Chilean, that makes me feel ashamed.”

Pollution accumulated in the area of Quintero and Puchuncavi, home to around 50,000 people, after the government decided in 1958 to convert it into an industrial center that now hosts four coal-fired power stations and oil and copper refineries.

Markets fluctuate, oil falls again as recession warnings build

Asian markets struggled Thursday to recover from the previous day’s battering, while oil extended losses, after Federal Reserve boss Jerome Powell admitted the economy could tip into recession as the bank hikes interest rates to fight runaway inflation.

Soaring prices and central banks’ battle to rein them in have sent a chill through global trading floors this year, while investors are also having to deal with the uncertainty wrought by the Ukraine war and patchy pandemic recovery.

Commentators have warned for some time that the world economy could be heading for another contraction owing to the sharp increase in borrowing costs and rampant inflation, which is at decades highs in several countries.

And on Wednesday the head of the most powerful central bank in the world told lawmakers that it was “certainly a possibility”.

While saying the economy was strong enough for rates to rise, he added that “frankly, the events of the last few months around the world have made it more difficult for us to achieve what we want, which is two percent inflation and still a strong labour market.”

He also warned: “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store”.

The Fed this month hiked rates by 75 basis points and is expected to do the same in July, with some observers predicting two more such moves after that.

After a day of swings, Wall Street ended in negative territory, though off big early lows.

Asia fluctuated after a big sell-off Wednesday, with optimism at a premium among investors and analysts saying it is unlikely to improve anytime soon.

Hong Kong, Sydney, Singapore and Wellington were slightly higher but Tokyo, Shanghai, Seoul, Taipei, Manila and Jakarta fell.

“Having listened to Powell’s lengthy Senate testimony… it is clear that inflation is the domestic issue at the top of the political agenda,” said SPI Asset Management’s Stephen Innes. 

“Powell consistently bobbed and weaved his way through commenting on anything of fiscal nature but was focused on deploying the tools within the Fed’s power to address their dual mandate” of reining in inflation and keeping unemployment in check. 

“So we should still position for more rate hike fallout to occur.”

Powell’s comments came as other top economists added to the recession talk, with former New York Fed President Bill Dudley saying it was “inevitable within the next 12 to 18 months”.

And Deutsche Bank CEO Christian Sewing said there was a 50 percent chance of a contraction next year.

Elon Musk, JP Morgan boss Jamie Dimon and Nouriel Roubini are among several others to have made similar forecasts.

“We are still in an era where uncertainty is elevated and is expected to remain so for quite a while,” said JoAnne Feeney, of Advisors Capital Management, on Bloomberg Television.

“It’s risky right now in terms of the forward outlook for the global economy. Recession risk has clearly risen.”

The prospect of a retreat in the global economy continued to drag oil prices down as traders fret over demand, with both main contracts down more than three percent, having tumbled on Wednesday.

Brent and WTI have dropped around 15 percent over the past week, even with sanctions on Russian crude exports and China’s gradual reopening from lockdowns.

Adding to the selling was data Wednesday indicating a jump in US stockpiles.

“A slowdown in global growth is a risk to oil demand, which could help ease some of the tightness in the market,” Warren Patterson, at ING Groep, said. 

“Already, we have seen demand estimates revised lower.”

– Key figures at around 0230 GMT –

Tokyo – Nikkei 225: FLAT at 26,146.71 (break)

Hong Kong – Hang Seng Index: UP 0.2 percent at 21,039.28

Shanghai – Composite: DOWN 0.1 percent at 3,263.02

West Texas Intermediate: DOWN 3.5 percent at $102.51 per barrel

Brent North Sea crude: DOWN 3.2 percent at $108.14 per barrel

Dollar/yen: DOWN at 135.74 yen from 136.22 yen late Wednesday

Pound/dollar: DOWN at $1.2241 from $1.2263

Euro/dollar: DOWN at $1.0561 from $1.0570

Euro/pound: UP at 86.27 pence from 86.17 pence

New York – Dow: DOWN 0.2 percent at 30,483.13 (close)

London – FTSE 100: DOWN 0.9 percent at 7,089.22 (close)

Biden, fragile at home, faces historic leadership task in Europe

Leader of the free world sounds like a superhero character, but the Joe Biden heading this week to twin European summits is in reality a politically fragile president tasked, somehow, with resolving an unenviable string of diplomatic problems.

Biden arrives Saturday in Germany for the G7 summit of major Western powers, followed next week by the NATO military alliance summit in Madrid.

Both sessions will take place in the shadow of Russia’s Ukraine invasion, but also a global surge in inflation, fears of recession, and the ever-growing challenge of containing China while avoiding open conflict.

For sure, Biden will tout the success of a monumental effort to rally the West and breathe new life into NATO — a “high water mark in transatlantic solidarity in the post-Cold War period,” according to a senior US official.

But the less flattering picture is one of a 79-year-old politician whose approval rating at home has plummeted below 40 percent and whose Democratic party seems likely to lose control of Congress this November, giving way to vengeful Republican opponents.

As Donald Trump — who spent four years in the White House shredding American alliances — prepares his own possible revenge match in the 2024 presidential election, Biden is the first to admit that not all view the United States with confidence.

“I travel the world trying to put things back together,” Biden told an audience of trade union members this month, and “no matter where I go… they look at me and I say — I say, ‘America is back,’  and they look and me and they say: ‘For how long?'”

– Democratic alliances –

Biden refers to his presidency as an inflection point in a battle for the survival of Western democracy against the likes of Russian President Vladimir Putin, as well as against internal attacks, like Trump’s attempt to overturn the 2020 election.

A big part of that campaign is rebuilding alliances and restoring the traditional US role as a first among equals — in contrast to Trump’s policy of treating all countries as bitter rivals.

Both in Germany and Spain, Biden will be able to showcase considerable success, especially concerning the response to Russia’s onslaught in Ukraine.

“He came into office with the express purpose of revitalizing and reinforcing our allies, our alliances and our partnerships around the world and that’s exactly what he’s done,” John Kirby, a White House spokesman, said.

“He has been unafraid to use the convening power of the United States which is still ample, still relevant, still viable. The free world has demonstrated incredible unity.”

– Stress test –

But for all the self-congratulations likely to emanate from Bavaria and Madrid, the Western partners face increasingly tricky blowback from their own sanctions on Russia.

Their coordinated attempt to shut down Russia’s economy and cripple the ruble has clearly not worked so far, while spiraling energy costs are instead exacting a political price on leaders like Biden at home.

A US official said the G7 will “roll out” yet more measures to “increase pressure” on Moscow. But there will also be a parallel question for leaders to ponder.

“How do we maximize pain on Putin’s regime? How do we minimize spill-backs back to the rest of the world? And I think that’s exactly how the discussion around energy markets and energy market challenges will get framed,” the official said.

Amid warnings of Ukraine fatigue setting in across Western capitals, Biden says the transatlantic coalition has to tough it out.

“At some point, this is going to be a bit of a waiting game: what the Russians can sustain and what Europe is going to be prepared to sustain. That’s one of the things we’re going to be speaking in Spain about,” he said.

If that’s going to happen — and if the West is going to stick together through the growing threat of global recession — then much may depend on Biden.

“Leadership matters a lot here,” Kirby said.

“Multilateral leadership matters a lot — because this isn’t just affecting the United States, it’s affecting the whole world.”

US Supreme Court divided over church-state separation

The wall separating church and state is one of the foundational principles of the United States.

Sonia Sotomayor, one of three liberal justices on the Supreme Court, is accusing her conservative majority colleagues of tearing it down.

Sotomayor did not mince words in a dissent to a ruling by the nine-member court this week that the state of Maine cannot deny public funds to religious schools.

“There is nothing neutral about Maine’s program,” Chief Justice John Roberts wrote in an opinion joined by the other five conservative justices.

“The State pays tuition for certain students at private schools — so long as the schools are not religious,” Roberts said. “That is discrimination against religion.”

In a blistering dissent, Sotomayor, who was named to the court by Democratic president Barack Obama, wrote, “what a difference five years makes.”

“In 2017, I feared that the Court was ‘leading us … to a place where separation of church and state is a constitutional slogan, not a constitutional commitment,'” she said.

“Today, the Court leads us to a place where separation of church and state becomes a constitutional violation.”

Sotomayor ended her contribution with a pointed signoff.

“With growing concern for where this Court will lead us next, I respectfully dissent,” she said.

Zachary Heiden, chief counsel at the American Civil Liberties Union of Maine, said the court’s ruling, which comes just days before a highly anticipated abortion rights decision, upended two decades of jurisprudence.

“For over 20 years, every court that has heard a challenge to Maine’s law that prohibits public funding of religious education has upheld its constitutionality,” Heiden said.

“But this Supreme Court has rendered a decision completely contrary to the founding principle of separation of church and state.”

– Trump nominees –

Lia Epperson, a law professor at American University who joined an amicus brief in the case in support of Maine, said the ruling was significant.

“This is the first time the court has explicitly required taxpayers to support something that is a specific religious activity — that is religious instruction,” Epperson said.

Steven Schwinn, a law professor at the University of Illinois Chicago, said the decision was the latest by the Roberts court “on a long trajectory of expanding the roles of religion in public life.”

“The court has not changed the underlying law,” Schwinn said. “It hasn’t gone so far as to overrule prior cases.

“And yet it nevertheless has moved inexorably in the direction of not only inviting religion more into public life but really mandating religion more into public life.”

“It’s done that incrementally,” he added. “You can agree or disagree with the direction the court is taking, it seems to me, but that the court is taking a direction is undeniable.”

During his four years in the White House, president Donald Trump nominated three conservative justices, cementing a 6-3 right-wing majority on the nation’s highest court.   

“If there was any question before there’s quite clearly a majority in favor of religion now,” Schwinn said.

Epperson agreed.

“We do have an increasingly religious and conservative court,” she said. “You will see that reflected in the decisions.

“This is the most Catholic the Supreme Court has ever been in its history in terms of the justices,” she noted.

– ‘Legitimate church’ –

Six of the nine justices are Catholic — Roberts, Clarence Thomas, Samuel Alito, Sotomayor, Brett Kavanaugh and Amy Coney Barrett.

Justices Elena Kagan and Stephen Breyer are Jewish while Justice Neil Gorsuch is Episcopalian.

Ketanji Brown Jackson, who will be replacing the retiring Breyer next term, is Protestant.

According to a Gallup survey, 22 percent of the American adult population identifies as Catholic and 45 percent as non-Catholic Christians.

Two percent identify as Jewish and 21 percent say they have no formal religious identity.

Kevin Welner, a professor specializing in educational policy and law at the University of Colorado Boulder, said the Maine ruling could have some potential pitfalls.

“The example here is ‘Do we really want our government deciding which asserted religious beliefs are geniune?'” he said.

“‘This is a legitimate church. This is an illegitimate church.'”

“You could end up with a situation where eventually the state is going to have to come in and say ‘That’s a religious belief that we’re going to honor and that’s not.'”

Officer in charge of Texas shooting police response suspended

The head of the Uvalde school district police force — who oversaw the response to the school shooting in which 19 children were killed last month in Texas — has been suspended, the superintendent said Wednesday.

The announcement came a day after the head of Texas’ public safety department called the police response to the massacre an “abject failure.”

“From the beginning of this horrible event, I shared that the district would wait until the investigation was complete before making personnel decisions,” Uvalde Consolidated Independent School District Superintendent Hal Harrell said in a statement. 

“Because of the lack of clarity that remains and the unknown timing of when I will receive the results of the investigations, I have made the decision to place Chief (Pete) Arredondo on administrative leave effective on this date,” Harrell said. 

Nineteen young children and two teachers were killed when a teenage gunman went on a rampage at Robb Elementary School on May 24 in America’s worst school shooting in a decade. Police eventually shot and killed the gunman.

Local police have been under intense scrutiny since it emerged that more than a dozen officers waited for an hour outside a pair of adjoining classrooms where the shooting was taking place and did nothing as children lay dead or dying inside.

On Tuesday, Steve McCraw, Texas’ public safety chief, told state senators during a hearing that Arredondo “decided to place the lives of officers before the lives of children.”

“There’s compelling evidence that the law enforcement response to the attack at Robb Elementary was an abject failure and antithetical to everything we’ve learned over the last two decades since the Columbine massacre,” McCraw said, referring to the 1999 Colorado high school shooting that left 13 people dead. It was America’s first major school massacre.

“The officers had weapons, the children had none. The officers had body armor, the children had none. The officers had training, the subject had none,” he testified.

The mayor of Uvalde said Tuesday that Robb Elementary School would be demolished.

“You can never ask a child to go back, or a teacher to go back in that school ever,” Don McLoughlin said at a city council meeting. 

Key Ukrainian city under 'massive' Russian bombardment

Heavy Russian bombardment of Ukraine’s battleground eastern Lugansk region and key city Severodonetsk has been “hell” for soldiers there, Kyiv said Wednesday, while insisting that defenders would hold on “as long as necessary”.

Moscow’s troops have been pummelling eastern Ukraine for weeks and are slowly advancing, despite fierce resistance from the outgunned Ukrainian military.

With President Vladimir Putin’s forces tightening their grip on the strategically important city of Severodonetsk in the Donbas, its twin city of Lysychansk is now coming under heavier bombardment.

“The Russian army is… just destroying everything” in Lysychansk, Sergiy Gaiday, governor of the Lugansk region, which includes both cities, wrote on Telegram.

“It’s just hell out there,” after four months of shelling in Severodonetsk, across the Donets river, he wrote later.

“Our boys are holding their positions and will continue to hold on as long as necessary,” he added.

Pro-Russian separatists claimed they were close to surrounding both Lysychansk and Severodonetsk.

“Over the past several days enormous work has been accomplished,” Andrei Marochko, an officer in the separatist army of Lugansk, told Russian state television.

– ‘Only grannies left’ –

Taking the two cities would give Moscow control of the whole of Lugansk, allowing Russia to press further into the Donbas.

After being pushed back from Kyiv and other parts of Ukraine following their February invasion, Moscow is seeking to seize a vast eastern swathe of the country.

But daily bombardment also continues in other parts of the country.

The northeastern city of Kharkiv near the Russian border was near empty on Wednesday, AFP reporters said, a day after Russian shelling killed five people there.

Leyla Shoydhry, a young woman in a park near the opera house, said the situation was “very bad”.

“Last night the building next to mine collapsed from the bombardment while I was sleeping,” she said.

Roman Pohuliay, a 19-year-old in a pink sweatshirt, said most residents had fled the city.

“Only the grannies are left,” he said.

In his daily address Tuesday, Ukrainian President Volodymyr Zelensky accused the Russian army of “brutal and cynical” shelling in the eastern Kharkiv region, where the governor said 15 people had been killed over the course of the day.

In a briefing Wednesday, the Russian defence ministry claimed responsibility for a missile strike it said killed a number of Ukrainian troops in the southern city of Mykolaiv.

Mayor Oleksandr Senkevych told Ukrainian television that the strike hit two firms and a school, sparking a blaze that authorities could not put out.

In the central city of Zaporizhzhia, women were training to use Kalashnikov assault rifles in urban combat as Russian forces edged nearer.

“When you can do something, it’s not so scary to take a machine gun in your hands,” said Ulyana Kiyashko, 29, after moving through an improvised combat zone in a basement.

Aid group Doctors Without Borders said it had gathered accounts of an “outrageous lack of care to distinguish and protect civilians” during the war in Ukraine.

Most patients it had evacuated by train blamed Russian or Russian-backed forces for a spectrum of gruesome injuries, it added.

In the southern city of Mykolaiv, two grain storage facilities were hit by Russian missile attacks, their operators Bunge and Viterra said.

– Ship leaves Mariupol –

On the Russian side, officials said Wednesday two drones had hit an oil refinery in the Rostov region bordering Ukraine, causing an explosion and a fire but no casualties.

Away from the battlefield, a senior US official in Washington said President Joe Biden and other Group of Seven leaders holding a summit this weekend in Germany will announce new measures to punish Russia for the invasion.

Moscow summoned Brussels’ ambassador in a dispute with EU member Lithuania over the country’s restrictions on rail traffic to the Russian outpost of Kaliningrad.

The territory is around 1,000 miles (1,600 kilometres) from Moscow, bordering Lithuania and Poland.

By blocking goods arriving from Russia, Lithuania says it is simply adhering to European Union-wide sanctions on Moscow.

The United States made clear its commitment to Lithuania as an ally in NATO, which considers an attack against one member an attack on all.

And Germany urged Russia not to “violate international law” by retaliating against Lithuania.

Also on Wednesday, a Turkish cargo ship left the Russian-occupied city of Mariupol on Ukraine’s Sea of Azov coast.

Moscow and Ankara have negotiated for weeks towards getting millions of tonnes of desperately needed grain out of the war zone and on to Africa and the Middle East.

But it was not immediately clear whether the Azov Concord was carrying wheat.

Turkey’s defence ministry said four-way talks would be held “in the coming weeks” between Russia, Turkey, Ukraine and the United Nations, with media reporting the meeting could happen next week.

Reporters Without Borders (RSF) said in an investigation published Wednesday that a Ukrainian photojournalist, Maks Levin, had been killed and possibly tortured by Russian troops after his capture on March 13.

burs-sr/ah/dw/bfm

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