Ata mārie and welcome to your Monday recap of global business and political news from around the world this past weekend.
First up, European Commission President Ursula von der Leyen defended the bloc’s trade deal with the US, suggesting a trade war between the European Union and the US would have been “celebrated” by Russia and China, Bloomberg reported.
Writing a guest commentary in a German newspaper, she said it was a “strong, if not perfect, deal”.
Retaliatory tariffs risked a costly trade conflict with “negative consequences for our workers, consumers, and our industry”. She also said the “all inclusive” 15% tariff gave European goods access to the US market under more favourable conditions and EU companies had a “significant advantage”.
To Wall Street, where the Dow Jones closed at its first record high of the year, after Federal Reserve chair Jerome Powell signalled interest rate cuts could be on the way, CNN reported.
The Dow rose 846 points, or 1.89%, to close at an all-time high of 45,631.74 on Friday local time. The S&P500 and tech-heavy Nasdaq Composite also surged.
Powell’s speech at an annual central banking forum in Jackson Hole was closely watched. He suggested lower interest rates might be needed. “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.
“Downside risks to employment are rising. And if those risks materialise, they can do so quickly in the form of sharply higher layoffs and rising unemployment.”
Federal Reserve chair Jerome Powell.
In the Middle East, Israel attacked parts of Gaza City over the weekend, destroying buildings and homes, while Israeli leaders promised to move forward with a planned offensive on the city, Reuters reported.
Israel approved a plan this month to seize control of Gaza City, describing it as the last bastion of Hamas militants.
Meanwhile, the Israeli military also bombed Yemen’s capital Sanaa, as tensions in the region escalated, Al Jazeera reported.
At least two people were killed, and 35 others were injured in the attacks, according to media reports.
“The attacks were carried out in response to repeated attacks by the Houthi terrorist regime against the state of Israel and its citizens, including the launch of surface-to-surface missiles and unmanned aerial vehicles towards the country’s territory,” the Israeli military said.
Meanwhile, Dutch Foreign Minister Caspar Veldkamp resigned late Friday evening local time, after he failed to secure new sanctions against Israel, the Associated Press reported.
Veldkamp had informed the country’s parliament he intended to bring in new measures in response to Israel’s planned offensive in Gaza City. He was unable to secure the support of his coalition partners.
Elsewhere, Ukraine launched a drone attack on Russia on Sunday local time, with Russia's Defence Ministry suggesting at least 95 Ukrainian drones had been intercepted across more than a dozen regions, Reuters reported.
The Kursk nuclear power plant said a drone that detonated near the plant damaged a transformer and forced a reduction in operating capacity. Radiation levels were normal and there were no injuries.
Ukrainian President Volodymyr Zelensky said his country would continue to fight for its freedom "while its calls for peace are not heard," the BBC reported of his comments made during Independence Day.
"We need a just peace, a peace where our future will be decided only by us. [Ukraine is] not a victim, it is a fighter. Ukraine has not yet won, but it has certainly not lost."
Meanwhile, both Russia and Ukraine confirmed a prisoner swap, with 146 soldiers on each side being exchanged. Zelensky said those returned by Russia included soldiers, border guards, and civilians, the BBC said.
Ukrainian President Volodymyr Zelensky.
In Italy, Deputy Prime Minister Antonio Tajani said he opposed windfall taxes on the country’s banks for excessive or large profits. “Banks should pay taxes and contribute, but they should not be surprised or scolded,” he said.
The politician also said the government shouldn’t interfere with deals and mergers among banks, Bloomberg reported. His comments come after Finance Minister Giancarlo Giorgetti suggested that banks should support families given the level of profits they made during high interest rates.
In 2023, a one-off windfall tax on banks was announced but then softened and ultimately not paid by the largest banks, Bloomberg noted.
Staying in Europe, Spain’s economy is outpacing its European neighbours because of strong tourism, foreign investment, and immigration, CNBC reported.
Annual gross domestic product (GDP) was forecast to rise 2.5% this year, well above France, Germany, and Italy. Spain’s GDP beat expectations in the June quarter.
