Global

Political uncertainty in France and an EU trade dispute with China are casting a shadow over European corporate earnings, investors say, despite forecasts pointing to better corporate results. According to LSEG I/B/E/S equity research, second-quarter earnings for companies in the pan-European STOXX 600 index are expected to rise by 2%, with revenues up 1.7%. This would be the first quarter of growth since early 2023. Investors had been optimistic about Europe's stock markets as the European Central Bank adopted a looser policy and the economic outlook improved. However, French President Emmanuel Macron's unexpected decision to call a general election has raised doubts.

Commerce and trade ministers from the United States, Japan and South Korea pledged on Wednesday (27 June) to work together on strategic issues such as artificial intelligence (AI) security, export controls, clean energy and semiconductor supply chains. "We are redoubling our efforts to work together," said US Commerce Secretary Gina Raimondo at the start of the meeting in Washington. "As leaders in manufacturing, services, technology and innovation, we must work together not only for the benefit of our countries, but for the security of the world," she added. Raimondo was joined by Japan's Minister of Economy, Trade and Industry, Ken Saito, and South Korea's Minister of Trade, Industry and Energy, Ahn Duk-geun, for this inaugural trilateral meeting, which was agreed by their leaders at a summit in Camp David in August.

Hundreds of pilgrims who died of extreme heat during this year's Hajj were not officially registered with the Saudi authorities (the Hajj is an annual Islamic pilgrimage to Mecca, Saudi Arabia, the holiest city for Muslims). As a result, many pilgrims were unable to access basic services such as air-conditioned buses and cooling tents. This situation highlights a growing challenge for Hajj organisers in the face of climate change: the requirement for official permits to access these services raises concerns that unregistered pilgrims may increasingly face life-threatening heat exposure. In addition, the high cost of official Hajj packages is leading some Muslims to seek cheaper, unofficial alternatives that do not include the necessary permits, taking advantage of relaxed restrictions on other types of Saudi visas. The lack of permits for unregistered pilgrims is hampering the provision of services and care, according to Colonel Talal bin Shalhoub, the security spokesman for the Saudi Ministry of Interior, in an interview on Saudi al-Arabiya television. Critics argue that all pilgrims should be protected from extreme heat, regardless of their registration status, and claim that authorities have cracked down on unauthorised participants this year.

The defence ministers of Russia and the United States have spoken by telephone about the war in Ukraine. The last such conversation was more than a year ago. The call came a few days after an attack in Crimea, possibly by US missiles, which has strained relations.

The 32 NATO countries have officially elected outgoing Dutch Prime Minister Mark Rutte as the next Secretary General of the transatlantic military alliance. NATO made the announcement on Wednesday (26 June). Rutte will take over when current NATO chief Jens Stoltenberg completes his final term on 1 October 2024.

The International Criminal Court (ICC) issued an arrest warrant on Tuesday (25 June) for former Russian Defence Minister Sergei Shoigu. He is suspected of being responsible for attacks on civilian targets in Ukraine between October 2022 and March 2023. An arrest warrant has also been issued for Valery Gerasimov, commander-in-chief of the Russian army.

A Chinese capsule from the Chang'e 6 mission has returned to Earth with rocks from the far side of the Moon. The capsule landed this morning in northern China, in the Inner Mongolia region.

Proposed European Union tariffs on Chinese goods are not a "punishment", German Federal Minister for Economic Affairs and Climate Action Robert Habeck assured Chinese officials in Beijing on Saturday (22 June). The visit is the first by a senior European official since Brussels proposed significant tariffs on imports of Chinese-made electric vehicles (EVs) in response to what the EU sees as excessive subsidies. Ahead of Habeck's arrival, China warned that rising tensions over EVs could spark a trade war. "It is important to understand that these are not punitive tariffs," Habeck told the opening session of a dialogue on climate and transformation. He stressed that unlike the US, Brazil and Turkey, which have used punitive tariffs, the EU is taking a different approach.

The United States is moving Ukraine to the top of the list to receive air defence interceptors to protect its cities from the onslaught of Russian missile attacks. The policy decision applies to interceptors used by the Patriot and other air defence systems to shoot down incoming missiles and drones. As a result, the US will give priority to Ukraine for Patriot surface-to-air missiles. Deliveries to other countries will be delayed to allow Ukraine to build up a sufficient stockpile.