Sabtu, 23 Juli 2022

Russian missiles hit Odesa after Moscow agrees grain export deal with Kyiv - Financial Times

Ukraine accused Russia of firing missiles at its key grain exporting port of Odesa on Saturday, a day after Moscow signed a deal allowing Kyiv to resume grain exports in a bid to alleviate the growing global food crisis.

Two Kalibr cruise missiles hit Odesa’s port and two others were shot down by Ukrainian air defences, according to Serhiy Bratchuk, a spokesman for Ukraine’s southern military command.

Videos posted on social media showed a large plume of smoke billowing from the port. Oleksiy Honcharenko, a Ukrainian member of parliament, wrote on messaging app Telegram that at least six explosions were heard and an unspecified number of people were wounded.

On Friday Russia’s defence minister signed a deal brokered by the UN and Turkey agreeing to let Kyiv export millions of tonnes of grain from its Black Sea ports.

Russia’s navy has blockaded Ukraine’s commercial sea routes, launched missile strikes on its ports and grain storage infrastructure and attacked civilian grain transport ships since president Vladimir Putin ordered the full-scale invasion of Ukraine in late February.

Ukraine said Saturday’s strikes violated Russia’s promise not to attack its grain export infrastructure and called the viability of Friday’s deal into question.

Oleg Nikolenko, Ukraine’s foreign ministry spokesman, said Russia would “bear full responsibility for the deepening of the global food crisis” if it did not uphold its promises not to attack the port. He accused Putin of “spit[ting] in the face” of UN secretary-general António Guterres and Turkish president Recep Tayyip Erdoğan, who brokered the talks.

“Yesterday grain export by sea was agreed, and today the Russians are hitting Odesa port. That’s the Russian diplomatic dichotomy,” Andriy Yermak, head of president Volodymyr Zelenskyy’s administration, wrote on Twitter.

The deal, which Guterres hailed as a “beacon of hope”, was the first major agreement struck between the two sides in the five-month conflict.

The blockade has choked off a crucial economic lifeline for Ukraine and left an estimated 22mn tonnes of wheat, corn and other grains stranded in silos, with devastating effects on global food prices and poverty levels.

As many as 47mn people, particularly in sub-Saharan Africa, are at risk of acute hunger because of the conflict, according to the World Food Programme.

Guterres’ office issued a statement saying he “unequivocally condemns” the strikes, without directly blaming Russia.

“Yesterday, all parties made clear commitments on the global stage to ensure the safe movement of Ukrainian grain and related products to global markets,” the statement said.

“These products are desperately needed to address the global food crisis and ease the suffering of millions of people in need around the globe. Full implementation by the Russian Federation, Ukraine and Turkey is imperative.”

Billionaire oligarch Roman Abramovich, who sold Chelsea Football Club in May after the UK and EU sanctioned him, attended the signing ceremony and played a key role in the deal, according to three people familiar with the matter.

Abramovich helped facilitate peace talks between Russia and Ukraine with Putin’s blessing before they collapsed in April.

He visited Kyiv several times, where he met Ukrainian president Volodymyr Zelenskyy, and has since played a role brokering prisoner exchanges and opening evacuation routes for civilians, according to people familiar with the matter.

“He was key to it all. He’s one of the only people close to Putin to whom the Ukrainians talk,” one of the people said. A Ukrainian official said Abramovich’s role had become more prominent since the peace talks stalled in the spring.

“Somehow he is part of the circle dealing with sensitive issues between Ukraine and Russia,” the official said. “He is on the list of trusted people who can be in any talks.”

Dmitry Peskov, Putin’s spokesman, denied that Abramovich had played a crucial role in the talks.

Elsewhere in Ukraine, officials in the port city of Mykolayiv reported being hit by six Russian projectiles on Saturday. None of them hit port infrastructure and its facilities are not part of the agreement that was brokered in Turkey.

The Kremlin, Turkey’s foreign ministry, and a spokesperson for Abramovich did not immediately respond to requests for comment.

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmZ0LmNvbS9jb250ZW50LzNhZDRmYmEzLTc5YzgtNGNkMC1iZWNlLTkwMDE0MDFlNjg1MNIBAA?oc=5

2022-07-23 12:51:20Z
1511288394

Ukraine war: Explosions rock Ukrainian port hours after grain deal - BBC

OdessaGetty Images

Explosions have rocked a key Ukrainian port just a day after Kyiv and Moscow reached a landmark deal to allow the resumption of grain exports.

Two missiles hit the port city of Odesa in the early hours of Saturday morning, Ukraine's military said.

Blaming Russia, Ukraine's air force chief said grain stores at the port were deliberately targeted.

Under the terms of Friday's deal, Russia agreed not to target ports while grain shipments are in transit.

In a post to social media, the Ukrainian military's southern command centre said two Kalibr missiles hit the port, while two more were shot down by air defence systems.

Oleksiy Honcharenko, a local MP, wrote on Telegram that the city's port had caught fire after the strike.

"These scumbags sign contracts with one hand and direct missiles with the other," Mr Honcharenko wrote.

It is unclear whether there were casualties or substantial damage.

On Friday, officials from Kyiv and Moscow signed a deal to allow millions of tonnes of grain trapped in Ukraine to be exported.

The agreement was hailed as a "beacon of hope" by the UN after months of fighting.

The deal - which took two months to reach - is set to last for 120 days, with a co-ordination and monitoring centre to be established in Istanbul, staffed by UN, Turkish, Russian and Ukrainian officials. It can be renewed if both parties agree.

In the latest fighting on the ground, British defence officials said Russian troops in the Kherson region risk being cut off from their supply lines by Ukrainian forces.

A large counteroffensive has been launched by Kyiv in the south of the country and its forces have used new long-range US supplied missile system to target the Antonovsky Bridge in Kherson.

If the bridge were to be destroyed, Russian supply lines would be severely stretched.

2px presentational grey line

Is Russia trying to wreck the deal?

By Paul Adams, BBC News, Kyiv

This attack on Odesa raises a number of questions. If, as most people assume, it was launched by Russia, what were the targets and what was the message?

Coming so soon after Russia and Ukraine signed documents agreeing to abide by the terms of an agreement to facilitate the export of grain from Odesa and its satellite ports, it's tempting to see it as an attempt by Moscow to wreck it, or at least set the terms.

But that seems to run counter to yesterday's statement by Moscow's Defence Minister, Sergei Shoigu, that Russia's responsibilities were clearly set out.

The text of the document signed by Russia in Istanbul has yet to be made public. UN officials say it's identical to the one signed by Ukraine.

It says the parties "will not undertake any attacks against merchant vessels….and port facilities engaged in this initiative."

Asked by the BBC what the UN would do if Russia didn't keep its word, the Secretary General Antonio Guterres said "the UN has no instruments for that, but I think that would be an absolutely unacceptable scandal".

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMiMGh0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3dvcmxkLWV1cm9wZS02MjI3NjM5MtIBNGh0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3dvcmxkLWV1cm9wZS02MjI3NjM5Mi5hbXA?oc=5

2022-07-23 11:16:07Z
1511288394

Jumat, 22 Juli 2022

Ukraine war: Moscow and Kyiv poised for deal to reopen Black Sea ports for grain exports, says Turkey - Sky News

Moscow and Kyiv are set to sign a deal to reopen Ukraine's Black Sea ports for grain exports, Turkey has said - raising hopes an international food crisis caused by Russia's invasion could be eased.

Full details of the reported agreement between Russia and Ukraine have not yet been released.

However, it is due to be signed at 1:30pm GMT (2:30pm UK time) on Friday, Turkish president Tayyip Erdogan's office said.

Ukraine latest: Russia facing 'critical shortages'

The blockade by Russia's Black Sea fleet has reduced supplies to markets around the world and sent grain prices soaring.

Moscow has denied responsibility for worsening the food crisis, blaming instead Western sanctions for slowing its own food and fertiliser exports and Ukraine for mining its Black Sea ports.

Ukraine and Russia, both among the world's biggest exports of food, did not immediately confirm Thursday's announcement by the office of the Turkish presidency.

More from World

However, Ukrainian President Volodymyr Zelenskyy hinted his country's Black Sea ports could soon be unblocked in a late night video address.

Mr Zelenskyy, whose address mainly focused on the potential of the Ukrainian forces to make gains on the battlefield, said: "And tomorrow we also expect news for our state from Turkey - regarding the unblocking of our ports."

UN Secretary-General Antonio Guterres said the UN and Turkey have been working for two months to broker a "package" to resume Ukraine's Black Sea grain exports and facilitate Russian grain and fertiliser shipments.

Russian Foreign Ministry spokeswoman Maria Zakharova said in a statement that the 27-nation bloc proposed to ease some earlier sanctions in a bid to safeguard global food security, and Moscow hoped this would create conditions for the unhindered export of grain and fertilisers.

Please use Chrome browser for a more accessible video player

Why Ukraine's grain matters so much

A UK Foreign Office spokesperson said: "This agreement must not only be agreed but also implemented.

"We have worked closely with the UN, Turkey, Ukraine and our G7 and G20 partners to unblock the grain that Putin has deliberately used to weaponise food."

US State Department spokesperson Ned Price said Washington DC would focus on holding Moscow accountable for carrying out the agreement.

Read more:
The disappearing ships - Russia's great grain plunder

Russia blames the West for grain exports being blocked
UK to supply grain DNA testing technology to combat 'Russian thefts of wheat'

It comes as Mr Zelenskyy met senior commanders on Thursday to discuss weapons supplies and intensifying attacks on
Russian forces.

"(We) agreed that our forces have the strong potential to advance on the battlefield and inflict significant new losses on
the occupiers," the Ukrainian president said in his video address.

Ukraine has accused Russia of stepping up missile strikes on cities in recent weeks to terrorise its population.

Moscow denies attacking civilians and says all its targets are military.

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMihwFodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS91a3JhaW5lLXdhci1tb3Njb3ctYW5kLWt5aXYtcG9pc2VkLWZvci1kZWFsLXRvLXJlb3Blbi1ibGFjay1zZWEtcG9ydHMtZm9yLWdyYWluLWV4cG9ydHMtc2F5cy10dXJrZXktMTI2NTY2OTLSAYsBaHR0cHM6Ly9uZXdzLnNreS5jb20vc3RvcnkvYW1wL3VrcmFpbmUtd2FyLW1vc2Nvdy1hbmQta3lpdi1wb2lzZWQtZm9yLWRlYWwtdG8tcmVvcGVuLWJsYWNrLXNlYS1wb3J0cy1mb3ItZ3JhaW4tZXhwb3J0cy1zYXlzLXR1cmtleS0xMjY1NjY5Mg?oc=5

2022-07-22 09:02:01Z
1508652381

Protesters injured as Sri Lankan forces raid anti-government camp outside president's office - Sky News

Several protesters have been injured after Sri Lankan forces raided an anti-government camp at the president's office.

Media footage showed soldiers in riot gear and armed with assault rifles tearing down the camp, which was set up by demonstrators in April.

Activists stormed the president's home and office as well as the prime minister's residence in Colombo over their outrage at the country's economic situation.

Corruption and mismanagement have left the island nation laden in debt, causing severe shortages of fuel, food and medicines.

"A joint operation involving the military, police and police special forces was launched in the early hours to recover the presidential secretariat from the protesters as they have no legal right to hold it," police spokesperson Nalin Thalduwa said.

"Nine people, including two injured, have been arrested."

During the protests, people flocked to the president's residence, swimming in the pool, playing games in the corridors and having picnics in the garden.

More on Sri Lanka

In recent days, they have feared a crackdown was imminent after a new president was sworn in.

Ranil Wickremesinghe, who was seen as an ally of his ousted predecessor Gotabaya Rajapaksa, came to power on Thursday - just a day after lawmakers chose him to finish the term of the former president.

Mr Rajapaksa fled the country with his wife and bodyguards just days after activists took over.

Organisers of the demonstrations said hundreds of security personnel surrounded the protest camp after midnight and then took apart a section of it.

Army soldiers stand guard after removing the protesters and their tents from the site of a protest camp outside the Presidential Secretariat in Colombo, Sri Lanka, Friday, July 22, 2022. (AP Photo/Rafiq Maqbool)

At least 50 activists injured, organisers claim

In the early hours of Friday morning, dozens of troops marched through the area and rows of protesters' tents were cleared out.

At least 50 activists were injured, with some beaten by security forces, the organisers added.

"They beat us really cruelly," said Buddhika Abeyrathne, a protester who witnessed the raid but did not appear injured himself.

"Mr Wickremesinghe doesn't know what democracy is."

Read more:
'I can't feed the child in her womb'

Extraordinary scenes are product of a man-made disaster
Six-mile walk for food in Sri Lanka as demand for free meals soars

Protesters had vowed to occupy the official buildings until the top leaders had stepped down.

Sri Lanka has been under a state of emergency since Monday and a nationwide curfew had been in place until Thursday morning.

The president is expected to appoint Rajapaksa ally Dinesh Gunewardena as prime minister along with a new cabinet later on Friday.

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMif2h0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L3Byb3Rlc3RlcnMtaW5qdXJlZC1hcy1zcmktbGFua2FuLWZvcmNlcy1yYWlkLWFudGktZ292ZXJubWVudC1jYW1wLW91dHNpZGUtcHJlc2lkZW50cy1vZmZpY2UtMTI2NTY2NjDSAYMBaHR0cHM6Ly9uZXdzLnNreS5jb20vc3RvcnkvYW1wL3Byb3Rlc3RlcnMtaW5qdXJlZC1hcy1zcmktbGFua2FuLWZvcmNlcy1yYWlkLWFudGktZ292ZXJubWVudC1jYW1wLW91dHNpZGUtcHJlc2lkZW50cy1vZmZpY2UtMTI2NTY2NjA?oc=5

2022-07-22 04:37:56Z
1500718237

Capitol riot: Trump ignored pleas to condemn attack, hearing told - BBC

This video can not be played

To play this video you need to enable JavaScript in your browser.

Ex-US President Donald Trump watched last year's Capitol riot on TV at the White House, ignoring his children and aides who "begged him" to rebuke the mob, a congressional inquiry has heard.

"He chose not to act," said Adam Kinzinger, one of two Republicans on the Democratic-led committee.

The prime-time hearing was told Mr Trump did not make a single call to law enforcement or national security staff.

He was motivated by "his selfish desire to stay in power", the inquiry alleged.

On Thursday night, the House of Representatives select committee used its eighth hearing of the summer to draw a timeline of Mr Trump's activities over 187 minutes on 6 January 2021 as a mob of his supporters raided Congress.

The panel is seeking to build a case that Mr Trump, a Republican, acted illegally in a bid to overturn his defeat by Joe Biden, a Democrat, in the November 2020 presidential election.

Members of the committee have suggested there might be enough evidence to charge Mr Trump with such counts as obstructing an official proceeding of Congress, conspiracy to defraud the American people or witness tampering.

Any potential prosecution of Mr Trump would be led by the Department of Justice. But some commentators have suggested that advice issued by Attorney General Merrick Garland requiring prosecutors to obtain approval before embarking on politically sensitive investigations means it is unlikely Mr Trump will ever face trial.

Mr Trump, who has been hinting he may run again for president in 2024, has dismissed the inquiry as a "kangaroo court" designed to distract Americans from the "disaster" of Democratic governance.

The hearing was told that former President Trump had watched coverage of the riot on Fox News in the private dining room at the White House for more than two-and-a-half hours.

Elaine Luria, a Virginia Democrat on the committee, said: "President Trump sat at his dining table and watched the attack on television while his senior-most staff, closest advisers and family members begged him to do what is expected of any American president."

The lawmaker also said the chief White House photographer had wanted to take pictures during the historic event, but was told not to.

Demonstrators at the US Capitol
Getty Images

A former White House national security staffer, whose voice was obscured to conceal his identity, said officials in the executive mansion were "in a state of shock" over what was unfolding at the Capitol.

The committee also played parts of a videotaped testimony by former Trump White House counsel Pat Cipollone, who said he had pushed for a strong statement from the president condemning the onslaught.

"I said that people need to be told, there needs to be a public announcement, fast, that people need to leave the Capitol," said Mr Cipollone.

The president's children, Ivanka Trump and Don Jr, had also wanted him to call off the rioters, the committee heard.

But former press aide Sarah Matthews testified that an unnamed White House colleague had argued that if Mr Trump were to disavow the violence. it would be "handing a win to the media".

At 14:24 that day, Mr Trump sent a tweet attacking his Vice-President, Mike Pence, saying he "didn't have the courage to" spurn his constitutional duty of certifying Mr Biden's election win at Congress.

Ms Matthews said the post amounted to "pouring gasoline on the fire". She and Matthew Pottinger, who was deputy national security adviser to the president, testified that that tweet had prompted them both to resign.

Three hours and seven minutes after the assault began, Mr Trump released a video at 16:17, recorded from the White House Rose Garden, in which he praised the rioters as "very special", but asked them to disperse.

Bennie Thompson, chairman of the committee and a Mississippi Democrat, said in his opening remarks: "For 187 minutes on Jan 6, this man of unbridled destructive energy could not be moved.

"Not by his aides, not by his allies, not by the violent chants of rioters, or the desperate pleas of those facing down the mob. He could not be moved."

The committee also aired a previously unseen video outtake of Mr Trump on 7 January repudiating the violence at the Capitol of the day before.

"I don't want to say the election is over," Mr Trump said during the recording as he apparently read from a script.

Polling in the US has suggested that the hearings are having little impact on Mr Trump's personal popularity among Republican voters.

A recent survey by the PBS broadcaster found that just one in five party members think the 76-year-old should face prosecution for his actions on 6 January, while more than half would like to see him as the Republican candidate for president in 2024.

Meanwhile, President Joe Biden's personal approval has fallen to just 37% among voters, lower than Mr Trump's ratings were at any point during his term in office.

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMiIWh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy82MjI2MTE2NNIBJWh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy82MjI2MTE2NC5hbXA?oc=5

2022-07-22 07:14:22Z
1507067621

Kamis, 21 Juli 2022

Sri Lanka: Forces raid anti-government protest camp - BBC

This video can not be played

To play this video you need to enable JavaScript in your browser.

Security forces in Sri Lanka have raided the main anti-government protest camp in the capital Colombo and have begun pulling down tents.

Hundreds of troops and police commandos moved on the protesters outside the presidential offices, hours before they were due to leave the area.

A BBC video journalist was beaten by the army and one soldier snatched his phone and deleted videos.

It comes after Ranil Wickremesinghe was sworn in as president.

Sri Lanka's ex-president Gotabaya Rajapaksa fled the country last week.

Mr Wickremesinghe - the former prime minister - is seen as deeply unpopular with the public, and has vowed tough action against demonstrators. But some protesters have said they will give him a chance.

Sri Lanka has seen months of mass unrest over an economic crisis.

Many blame the Rajapaksa administration for mishandling the nation's finances, and see Mr Wickremesinghe as part of the problem. But there were few demonstrations on the streets the day after he won the parliament vote.

Soon after Mr Wickremesinghe was sworn in, he made clear that any attempt to topple the government or occupy government buildings was not democracy and warned that those who indulge in such activities will be dealt with firmly according to the law.

There had been concerns among demonstrators that the government might gradually crack down on the protest movement sooner or later.

line
Members of Sri Lankan security forces walk beside people at the site of protest camp
Getty Images

BBC journalists attacked

By Anbarasan Ethirajan, BBC News, Colombo

When we heard that troops might be raiding the anti-government protest site in Colombo after midnight, we went to the spot just in front of the Sri Lankan president's office.

Soon, hundreds of heavily armed soldiers and police commandos with riot gear descended from two directions, their faces covered.

When activists raised objections to their presence, the security personnel marched on and became aggressive. The protesters were pushed back.

Within seconds, we saw soldiers shouting, dismantling and destroying make-shift tents and other items on the pavement. Troops also moved into the president's office which was stormed by huge crowds last week.

Activists had earlier said they would hand over the building on Friday afternoon. As we followed the soldiers, we could see they were clearing everything in their way.

The protesters were pushed up to the designated protest site less than 100m away and steel barricades were set up to stop the activists.

When we were returning from the area, a man in civilian clothes, surrounded by troops, shouted at my colleague and said he wanted to delete the videos from his phone. Within seconds the man punched my colleague and snatched his phone.

Though I explained to them we were journalists and simply doing our job, they wouldn't listen. My colleague was attacked further and we raised strong objections. The mic of another BBC colleague was taken and thrown away.

The phone was returned after the videos were deleted from the device. Another army officer intervened and let us go.

My colleague was shaken but was able to walk back to the hotel, a few hundred metres away.

The BBC tried to get a response from the military and police on the attack, but no-one answered our calls. A state of emergency declared last week is still in place.

line

Mr Wickremesinghe is aiming to restore political stability so the country can resume negotiations with the International Monetary Fund for a bailout package, estimated to be about $3bn.

Sri Lanka has been wracked with protests for months because the country is effectively bankrupt and facing acute shortages of food, fuel and other basic supplies.

Tens of thousands of protesters had last week marched in the streets of Colombo calling for Mr Rajapaksa and Mr Wickremesinghe to resign.

Mr Rajapaksa fled the country in the early hours of 13 July after the protesters stormed and occupied his political residence. He flew to the Maldives and then Singapore, from where he issued his official resignation.

Ranil Wickremesinghe sworn in as the new president of Sri Lanka by the Chief Justice Jayantha Jayasuriya at the parliament, amid the country"s economic crisis, in Colombo, Sri Lanka July 21, 2022.
Reuters

However Mr Wickremesinghe did not resign - though he had initially offered to - and instead accepted the position of acting president when Mr Rajapaksa fled.

When he assumed the job of acting president last week, he ordered the military to do whatever was necessary to restore public order, following protesters storming and occupying government buildings.

He also extended a national state of emergency order this week to stamp out any flare-ups.

A former six-time prime minister, Mr Wickremesinghe failed in his previous two runs for the presidency. His victory on Wednesday means he will serve out the rest of the presidential term until November 2024.

line

Sri Lanka: The basics

  • Sri Lanka is an island nation off southern India: It won independence from British rule in 1948. Three ethnic groups - Sinhalese, Tamil and Muslim - make up 99% of the country's 22 million population.
  • One family of brothers has dominated for years: Mahinda Rajapaksa became a hero among the majority Sinhalese in 2009 when his government defeated Tamil separatist rebels after years of bitter and bloody civil war. His brother Gotabaya, who was defence secretary at the time and later became president, fled the country after mass unrest.
  • Presidential powers: The president is the head of state, government and the military in Sri Lanka, but does share a lot of executive responsibilities with the prime minister, who heads up the ruling party in parliament.
  • Now an economic crisis has led to fury on the streets: Soaring inflation has meant some foods, medication and fuel are in short supply, there are rolling blackouts and ordinary people have taken to the streets in anger, with many blaming the Rajapaksa family and their government for the situation.
line

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMiLmh0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3dvcmxkLWFzaWEtNjIyNjA2NzjSATJodHRwczovL3d3dy5iYmMuY28udWsvbmV3cy93b3JsZC1hc2lhLTYyMjYwNjc4LmFtcA?oc=5

2022-07-21 23:04:54Z
1500718237

Italian bonds sell off after Draghi resigns and ECB boosts rates - Financial Times

Italy’s debt sold off on Thursday after prime minister Mario Draghi resigned and the European Central Bank sharply raised interest rates in its effort to tame blistering inflation.

The yield on Italy’s 10-year government bond rose as much as 0.27 percentage points to almost 3.7 per cent as Draghi’s national unity coalition unravelled and the ECB lifted its deposit rate by a larger-than-expected 0.5 percentage points to zero. Thursday’s rate rise was the first by the ECB since 2011 and ended an eight-year stretch of negative interest rates.

The decline in Italian bond prices took the gap between Italian and German benchmark 10-year yields — a closely watched gauge of market stress — to 2.38 percentage points, reflecting a widening of more than 0.3 percentage points in just two days. The pressure on Italian debt eased slightly later in the session, with yields adding 0.15 percentage points to 3.5 per cent — taking the spread to 2.32 percentage points.

The ECB had previously signalled it would raise borrowing costs by 0.25 percentage points this month as it moved to tackle rapid consumer price growth, which hit a record high of 8.6 per cent in the year to June.

But on Thursday the central bank said it had deemed it “appropriate to take a larger first step on its policy rate normalisation path” because of inflation risks and the “reinforced support” provided by a new bond-buying programme aimed at limiting divergence in borrowing costs between the bloc’s strongest and weakest countries.

James Athey, a senior portfolio manager at Abrdn, suggested the move would provide investors with more certainty and confidence. “The central banks that have been more willing to grasp the nettle and get rates up more quickly have seen more stability in rates markets.”

Line chart of Gap in yield between Italian and Germany 10-year debt (basis points) showing Investors demand higher borrowing costs to hold Italian debt

The ECB’s decision came after Draghi handed his resignation to Sergio Mattarella, Italy’s president, on Thursday morning. Draghi had won a confidence vote on Wednesday night but lost the support of members of his coalition. Mattarella subsequently called snap elections.

“The shocking collapse of Draghi’s administration raises important questions ahead of new elections,” said analysts at JPMorgan. “The populist coup against Draghi raises our sensitivity to risks from erratic policymaking.”

In equity markets, a FTSE gauge of Italian stocks lost 0.7 per cent, trimming earlier losses. The country’s largest banks, which are big holders of Italian debt, led the declines.

Europe’s regional Stoxx Europe 600 index finished up 0.4 per cent after a volatile session.

The euro was slightly stronger, up 0.3 per cent to $1.021 against the dollar after initially popping on the ECB’s rate decision. It had last week tumbled to parity with the greenback on concerns over the bloc’s economic outlook. Uncertainties over the eurozone economy and energy supply will continue to weigh on the common currency, according to Deutsche Bank’s chief international strategist Alan Ruskin.

US Treasury yields were lower on Thursday, with the biggest moves coming in shorter-dated securities, which are the most sensitive to interest-rate policy. The two-year yield fell 0.13 percentage points to 3.1 per cent.

While there were some weak data released that may have prompted the risk-off move, including weekly jobless claims, some analysts cautioned that the big swings in the price of Treasuries were likely because of weak liquidity.

“The data this morning was unexpectedly bad, but it wasn’t first or even second tier data,” said Gennadiy Goldberg, an analyst at TD Securities.

“There were a couple of large block trades that went through. I think a lot of this is liquidity related,” said Goldberg.

Wall Street’s S&P 500 index ended the day up 1 per cent. The technology-heavy Nasdaq Composite equity gauge closed 1.4 per cent higher.

Adblock test (Why?)


https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmZ0LmNvbS9jb250ZW50Lzc4YTBhNmViLWYzMjUtNDUyNy05NjUyLTMyMDNkYjRiZmUxNtIBAA?oc=5

2022-07-21 20:17:05Z
1496760007