Global markets face shaky week ahead as US pressure mounts on Ukraine
Investors are watching for signs that the U.S. may move closer to Russia in a bid to exploit vast, untapped Arctic energy resources, in a major geopolitical shift that piles pressure on Europe to rapidly boost defence spending.
Trump and Russian President Vladimir Putin ended their weekend summit in Alaska without securing a Ukraine ceasefire agreement, with the U.S. President then saying he now wanted a rapid peace deal that Kyiv should accept.
Ukrainian President Volodymyr Zelenskiy is travelling to Washington on Monday for talks that leaders of nations including Germany, the UK and France will now join.
"Trump seems inclined to reduce or even end US support for Ukraine. Putin got him interested in business deals," Berenberg Chief Economist Holger Schmieding said in a note to clients.
"As a result, the US may lift its sanctions on Russia and invest in Russia instead," he added.
"Europe will have to spend a lot more for its own defence."
DEFENCE STOCK RALLY Investors have bet on that outcome since February 2022, driving a supercharged rally in European aerospace and defence stocks with gains of over 600% for Leonardo and 1,500% for Germany's Rheinmetall.
The euro has rallied 13% against the dollar this year and traded at about $1.17 on Friday.
Bank of America strategist Michael Hartnett highlighted the potential for U.S.-Russia Arctic drilling projects to exploit 15% of the world's undiscovered oil and 30% of the world's undiscovered natural gas, resulting in a deep energy bear market. Brent crude, which dropped more than 1% to near $66 a barrel, on Friday, was still priced for a Ukraine peace deal, Hartnett cautioned, while Trump wanted lower energy prices for U.S. consumers. Ukraine's government bonds - key mood indicators - rallied when news of the summit emerged earlier this month but have stalled at a still-distressed 55 cents per dollar. "I would think they will be a bit weaker following the recent strength as the mood seems to favour Russia following Friday's summit," Aegon Asset Management head of emerging market debt Jeff Grills said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
36 minutes ago
- Middle East Eye
Vast majority of US refugee admissions will go to white South Africans: Report
US President Donald Trump's administration is considering allocating three-quarters of a significantly reduced refugee admission cap to white South Africans, Reuters reported on Monday. According to meeting notes reviewed by Reuters, the acting director of the Office of Refugee Resettlement at the Department of Health and Human Services, Angie Salazar, told people working in the refugee resettlement space that she expected the refugee admissions cap to be set at 40,000 for the coming fiscal year. Two other sources, who wished to remain anonymous, told Reuters that 30,000 of these spaces are expected to be allocated to Afrikaners, white South Africans who are descendants of largely Dutch people who colonised South Africa. The cap is much lower than the one the Biden administration set at 125,000 from fiscal years 2022 to 2025. Over those fiscal years, the number of refugees admitted was 25,465 (2022), 60,014 (2023), 100,034 (2024) and 27,308 (2025), respectively, according to data from the Migration Policy Institute. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters The resettlement priorities also mark a different strategy for the US government. Previous administrations focused on resettling people with humanitarian concerns, such as those impacted by war, or who were facing persecution. It also welcomed people from around the world regardless of their ethnic background, religion or sexuality. In comparison, the Trump administration is focusing largely on a group from one part of the world who Trump claims are facing a "white genocide", something that South African President Cyril Ramaphosa and a delegation of white South Africans, who visited Trump in the Oval Office, have denied as baseless. Other groups that could be prioritised would be Afghans who helped US forces, and possibly Ukrainians, who have previously been resettled in the US. White House Deputy Press Secretary Anna Kelly told Reuters that "no decisions were final" until a decision is made in October, praising President Trump for his "humanitarian heart". The news overlaps with a suspension of all visitor visas for Palestinians in Gaza, who are currently facing what is widely considered a genocide. The suspension will impact people in urgent need of medical evacuation. 'Selective' resettlement In May, almost 60 white South Africans were granted refugee status in the US and were resettled later the same month. This was in spite of Trump suspending the country's refugee resettlement programme after returning to office, leaving 12,000 vulnerable people in limbo who had been conditionally approved for resettlement and had flights booked before 20 January, as well as almost 90,000 others who had been approved for resettlement. US grants dozens of white South Africans refugee status Read More » While US vetting processes for refugees normally take 18 to 24 months, according to the State Department's website, the Afrikaners' cases were expedited. Currently, multiple legal cases have been filed against the Trump administration to enable those who were approved for resettlement to be allowed into the US, including a class action lawsuit filed by the International Refugee Assistance Project (IRAP). IRAP's Senior Policy Director Rricha deCant told Middle East Eye in a statement that, from his first day in office, Trump suspended resettlement for thousands of approved refugees who were vetted and scheduled for travel. "Despite multiple court orders, the government has fought tooth and nail to keep these refugees out of the United States, while selectively welcoming white South Africans. "We will continue to fight in court for the right of all refugees to safely resettle in the US, and we hope to see a Presidential Determination that recognises many groups of humanitarian concern that should be urgently resettled - including refugees from Afghanistan, Sudan, Venezuela and unaccompanied children of all nationalities."
The National
an hour ago
- The National
Trump administration has revoked more than 6,000 student visas
President Donald Trump 's administration has revoked more than 6,000 student visas since January 20, the State Department confirmed to The National on Monday. The State Department, which is responsible for issuing and overseeing visas, said that it had revoked the visas for a host of reasons including ' overstays and law violations". Fox News, which first reported the story, quoted a department official as saying the majority of infractions were for 'assault, DUI [driving under the influence], burglary and support for terrorism". The State Department said that about 200 to 300 of the visas were revoked under INA 3B, a section of the Immigration and Nationality Act that allows for the revocation or refusal of visas on terrorism grounds. The Trump administration has accused universities of failing to clamp down on anti-Semitism and has taken particular aim at foreign students who protested in support of Palestine during a wave of campus demonstrations last year. In pursuit of this aim, immigration officers have made several controversial arrests, including former Columbia University graduate Mahmoud Khalil. Mr Khalil, a legal US resident who played a prominent role in pro-Palestine campus protests, was arrested in March by plainclothes immigration officers who said his green card had been revoked. He was released on bail in June and has filed a $20 million lawsuit against the Trump administration. visitor visas for Gazans, even those seeking medical treatment after being injured in Israel's war on the enclave.
Arabian Business
an hour ago
- Arabian Business
Jazeera Airways offers 'buy 1 get 1 free' flights across its network
Jazeera Airways has announced a new 'Buy 1 Get 1 Free' promotion, making travel more affordable across its entire network. From August 18–24, 2025, customers who book a one-way or round-trip ticket on the airline's website or mobile app will receive a second ticket free of charge. The offer applies to journeys taken between September 1 and December 15, 2025, with no limit on the number of tickets that can be booked. Jazeera Airways flight sale The promotion opens up the chance to explore destinations across Europe, the Middle East, and Asia. Travelers can stroll the streets of Budapest and Prague, experience the souks of Istanbul, visit Tashkent's historic landmarks, or relax on the beaches of Sharm El Sheikh and Colombo. Other destinations include Salalah's waterfalls and the mountains of Abha. Paul Carroll, Chief Commercial Officer at Jazeera Airways, said: 'At Jazeera Airways, we believe that incredible travel experiences should be accessible to everyone. Our Buy 1 Get 1 Free offer isn't just a deal—it's a way to unlock new destinations and make travel more affordable. 'Now, you can explore a new city or revisit a favourite place with a friend or family member, all while getting double the value for your money.' The promotion applies to Jazeera Airways' popular Light fare, offering travellers value with the option to add extras such as checked baggage, in-flight meals, preferred seating, and packages at 60 per cent off. To redeem the deal, customers must enter the promo code J9B1G1 when booking on the Jazeera Airways website or mobile app.
