And Austria wins Eurovision.
Happy Monday and welcome to your morning wrap of the latest business and political headlines from around the world.
First up, the Associated Press reports Israel has launched an “extensive” ground operation in Gaza while airstrikes in its new offensive killed at least 103 people and forced the closure of Gaza’s northern hospital.
Israeli forces started the current push, which is the largest since fighting resumed after it ended a ceasefire deal in March, on Saturday to pressure militant group Hamas to agree to a temporary ceasefire that would free hostages but not necessarily end the war.
Hamas said it wants a full withdrawal of Israeli forces and a path to ending the war as part of any deal.
“When the Jews want a truce, Hamas refuses, and when Hamas wants a truce, the Jews refuse it. Both sides agree to exterminate the Palestinian people,” Jabaliya resident Abu Mohammad Yassin told AP. “For God’s sake, have mercy on us. We are tired of displacement.”
Al Jazeera reports that people living in the enclave are trying to flee westwards to escape the Israeli air strikes and artillery shelling.
In Ukraine, the BBC reports that Russia has launched its largest drone attack since the invasion began, targeting several regions including the country’s capital, where one woman died.
The barrage comes a day before a planned call between US President Donald Trump and his Russian counterpart, Vladimir Putin, with the former calling for a ceasefire.
Ukraine said Russia launched 273 drones targeting the central Kyiv region, and Dnipropetrovsk and Donetsk regions. It said 88 were intercepted and another 128 went astray without “negative consequences”.
Moving to the United States, where Treasure Secretary Scott Bessent said that tariff rates will soon return to “reciprocal” levels if countries don’t reach trade agreements during the 90-day pause.
Scott Bessent (Source: Wikimedia Commons.)
“President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level,” Bessent told CNN.
There are 18 trading partners the United States is most focused on doing deal with, he said, but did not name them, nor did he say how quickly “reciprocal” rates would kick in.
He said that there will likely be a lot of regional trade deals.
Retail giant Walmart has warned of price increases because of the tariffs. Bessent, who has recently spoken with the company’s chief executive, said the company will be absorbing “some” of the tariffs and some may get passed onto customers.
Staying with the US, ratings agency Moody’s has cut the country’s sovereign credit rating by a notch on concerns about its growing $36 trillion debt pile.
Reuters notes that Moody’s is the last of the major ratings agencies to downgrade the country, as Republicans, who control the House of Representatives and the Senate, want to approve a package of tax cuts, spending hikes and safety-net reductions known as the “big, beautiful bill”.
"The bond market has been keeping a sharp eye on what transpires in Washington this year in particular," BMO Private Wealth chief market strategist Carol Schleif said.
"As Congress debates the 'big, beautiful bill' the bond vigilantes will be keeping a sharp eye on making them toe a fiscally responsible line," she said, referring to bond investors who punish bad policy by selling out of bonds, making it more expensive for governments to borrow.
To New York, where authorities are investigating how a Mexican Navy training ship on a goodwill tour struck the Brooklyn Bridge over the weekend, killing two crew members who fell from the ship’s mast and injuring about 20 others.
The BBC reports the Cuauhtémoc had 277 people on board when it lost power on Saturday night (local time) forcing it to head for the bridge. Footage shows the ship‘s mast clip the bridge and snap.
According to CNN, the National Transportation Safety Board is sending a team to the crash site to investigate.
The Cuauhtémoc. (Source: Wikimedia Commons.)
Finally, Austria has won its first Eurovision song contest in 11 years on the back of a resounding performance by Austrian-Filipino countertenor JJ.
The 24-year-old dazzled with “Wasted Love”, an operatic ballad about unrequited love that evolves into a thumping club anthem. JJ’s win was Austria’s third in the history of the competition.
He thanked voters for the prize and called for “more love” in the world.
“There’s no wasted love. Love is never wasted. There’s so much love that we can spread around, and we should use love as the strongest force on planet Earth.”
