REUTERS
"U.S. Capitol riot panel faces questions over Trump fracas in SUV"
By Richard Cowan
June 29, 2022
WASHINGTON, June 29 (Reuters) - A congressional probe into the Jan. 6 assault on the U.S. Capitol by Donald Trump supporters faced questions on Wednesday about what steps it had taken to corroborate a White House aide's account of the then-president having struggled with Secret Service agents in his armored SUV that day.
U.S. media outlets, citing Secret Service sources, said the head of Trump's security detail, Robert Engel, and the driver of the car were prepared to challenge the aide's testimony that Trump grabbed the steering wheel of the modified Chevrolet Suburban when he learned that the Secret Service would not drive him to the Capitol, where thousands of his supporters rioted.
Neither Engel nor the driver made public statements on Wednesday.
Trump on Tuesday denied having grabbed the wheel.
An aide to the U.S. House of Representatives committee on Jan. 6 said it would welcome testimony from any witness who wished to provide new information under oath following Tuesday's testimony by Cassidy Hutchinson, an aide to Trump's White House Chief of Staff Mark Meadows.
The House aide on Wednesday declined to answer questions about whether the committee already had interviewed Secret Service agents or other officials with first-hand knowledge of the incident Hutchinson described.
Secret Service spokesman Anthony Guglielmi said on Wednesday the committee had not sought to confirm details of Hutchinson's testimony in the 10 days before the hearing, which was scheduled unusually quickly.
In a separate statement it said it was cooperating with the committee.
Guglielmi did not immediately respond to questions about the significance of the 10 days or whether the committee contacted the agency previously to discuss Trump's Jan. 6 behavior.
Hutchinson testified that Tony Ornato, a senior Secret Service official, told her that Trump had struggled with agents after giving a fiery speech to his supporters outside the White House that morning in which he repeatedly falsely blamed widespread fraud for his election loss to Joe Biden.
The riot was an attempt to stop Congress, with Vice President Pence presiding, from certifying Biden's election.
'THE OTHER SIDE OF THE STORY'
"If it is true the Secret Service denies the allegations against President Trump of lunging and assaulting officers, then the story is really passing along gossip that did not bear fruit," Republican U.S. Senator Lindsey Graham said on Wednesday.
"The committee, with a little bit of effort, could have told the other side of the story but they chose NOT to because they wanted sensational headlines."
Supporters of the Republican Trump have not challenged other revelations in Hutchinson's testimony.
These included Trump's knowledge - even approval - of his supporters walking around Washington heavily armed on Jan. 6 and that he had no qualms about rioters urging that Pence be hanged.
Hutchinson also testified that Trump was known for angry outbursts in the White House that left food being splayed onto walls and dishes upended.
"Cassidy Hutchinson's testimony before the Jan. 6 Committee has been praised as 'courageous' and dismissed as 'unbelievable,'" said Democratic Senator Dick Durbin on Twitter on Wednesday.
"It's time for those present for some of the darkest moments for our democracy to come forward under oath and, like her, tell their stories."
Durbin chairs the Senate Judiciary Committee.
Also on Wednesday, a lawyer for Virginia "Ginni" Thomas, the wife of U.S. Supreme Court Justice Clarence Thomas, demanded the committee provide a better "justification" for seeking testimony from her.
Earlier this month, Ginni Thomas told the Daily Caller that she was eager to "clear up misconceptions" about her activism in conservative political circles and her attendance at the Trump rally on Jan. 6.
As Meadows' former deputy, Hutchinson, now 26, was a constant presence among White House staff in the last several months of 2020, frequently flying aboard Air Force One, friendly with staff and with Trump’s Secret Service detail.
Her office was a 10-second walk from the president's Oval Office.
Aides who worked at the White House were surprised at the outsized influence for a then-24-year-old and surprised at her tale of drama on the SUV the day of the riot.
Sources familiar with the matter said she had planned to join the small contingent of staffers who moved to Florida with Trump after he handed over power to Joe Biden in January 2021, but Trump ultimately opted not to hire her.
Reporting by Richard Cowan; Additional reporting by Steve Holland, Doina Chiacu and Rose Horowitch; Editing by Scott Malone and Howard Goller
https://www.reuters.com/world/us/us-cap ... 022-06-29/
AMERICA'S FIGHTING BULLDOG JOE BIDEN
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
REUTERS
"U.S. economy contracts in Q1; outlook murky as unsold goods accumulate"
By Lucia Mutikani
June 29, 2022
Summary
* First-quarter GDP declines at 1.6% rate
* Consumer spending growth lowered; inventories raised
* Business spending on equipment revised higher
WASHINGTON, June 29 (Reuters) - The U.S. economy contracted slightly more than previously estimated in the first quarter as the trade deficit widened to a record high and a resurgence in COVID-19 infections curbed spending on services like recreation.
The Commerce Department's third estimate of gross domestic product on Wednesday also showed some underlying softness in the economy, with consumer spending revised lower and inventories higher than reported last month.
This is a potential red flag for domestic demand and the economic outlook amid recession jitters as the Federal Reserve aggressively tightens monetary policy to tame inflation.
Fed Chair Jerome Powell told a European Central Bank conference on Wednesday that "there is a risk" the U.S. central bank could slow the economy more than needed to control inflation.
"The biggest effect from this report is that it leaves inventories in a more overbuilt position than previously thought, putting second-quarter GDP into negative territory pending what tomorrow's data reveal about May consumption and consumer inflation and April revisions to the same," said Chris Low, chief economist at FHN Financial in New York.
Gross domestic product fell at a 1.6% annualized rate last quarter, revised down from the 1.5% pace of decline reported last month.
That was the first drop in GDP since the short and sharp pandemic recession nearly two years ago.
Trade subtracted an unrevised 3.23 percentage points from GDP.
Economists polled by Reuters had forecast the pace of contraction would be unrevised at a 1.5% rate.
The economy was initially estimated to have contracted at a 1.4% rate.
It grew at a robust 6.9% pace in the fourth quarter.
GDP was 2.7% above its level in the fourth quarter of 2019.
Consumer spending, which accounts for more than two-thirds of the economy, grew at a 1.8% rate instead of the 3.1% pace reported last month.
The downgrade reflected revisions to services, now estimated to have increased at a 3.0% rate instead of the previously reported 4.8% pace.
Spending on recreation, financial services and insurance as well as healthcare was downgraded.
Outlays on goods meant to last three years or more increased at a 5.9% pace, slashed from the previously reported 6.8% rate.
That reflected downgrades to motor vehicles and recreational goods spending.
Stocks on Wall Street were mostly lower.
The dollar rose against a basket of currencies.
U.S. Treasury yields fell.
INVENTORIES PILING UP
The moderate pace of spending left inventories significantly higher than estimated in May.
Business inventories increased at a $188.5 billion rate, rather than the $149.6 billon pace reported last month.
The accumulation was in the retail sector, mostly in general merchandise stores.
Major retailers like Walmart and Target have reported they are carrying too much merchandise.
Slower consumer spending was partially offset by stronger business investment in equipment, whose growth pace was raised to 14.1% from 13.2%.
As a result, growth in final sales to private domestic purchasers, which excludes trade, inventories and government spending, was cut to a 3.0% rate last quarter.
This measure of domestic demand was previously reported to have risen at a 3.9% rate.
Revisions to corporate profits were minor.
The saving rate was unrevised at 5.6%.
The increase in personal income was little changed from May's estimate.
But interest on assets was trimmed.
That led to the rise in gross domestic income (GDI), an alternative measure of economic growth, being pared to a 1.8% rate from the 2.1% pace estimated last month.
GDI advanced at a 6.3% rate in the fourth quarter.
The economy appears to have rebounded from the first-quarter slump, with consumer spending accelerating in April.
Business spending on equipment remained solid through May, while the goods trade deficit narrowed significantly as exports hit a record high.
But the bounce is losing momentum because of the Fed's aggressive posture.
The U.S. central bank this month raised its policy rate by three-quarters of a percentage point, its biggest hike since 1994.
The Fed has increased its benchmark overnight interest rate by 150 basis points since March.
Retail sales fell in May, while housing starts and building permits declined.
Consumer confidence hit a 16-month low in June.
May's consumer spending report on Thursday could shed more light on second-quarter growth prospects, which range from as low as a 0.3% rate to as high as a 2.9% pace.
"It is extremely unlikely the economy is in recession now, however, despite the decline in first-quarter GDP and apparent weakness in output growth in the current quarter," said Scott Hoyt, a senior economist at Moody's Analytics in West Chester, Pennsylvania.
"Job growth remains strong, investment is growing, both households and business have strong balance sheets."
Reporting by Lucia Mutikani; Editing by Nick Zieminski and Paul Simao
https://www.reuters.com/markets/us/reco ... 022-06-29/
"U.S. economy contracts in Q1; outlook murky as unsold goods accumulate"
By Lucia Mutikani
June 29, 2022
Summary
* First-quarter GDP declines at 1.6% rate
* Consumer spending growth lowered; inventories raised
* Business spending on equipment revised higher
WASHINGTON, June 29 (Reuters) - The U.S. economy contracted slightly more than previously estimated in the first quarter as the trade deficit widened to a record high and a resurgence in COVID-19 infections curbed spending on services like recreation.
The Commerce Department's third estimate of gross domestic product on Wednesday also showed some underlying softness in the economy, with consumer spending revised lower and inventories higher than reported last month.
This is a potential red flag for domestic demand and the economic outlook amid recession jitters as the Federal Reserve aggressively tightens monetary policy to tame inflation.
Fed Chair Jerome Powell told a European Central Bank conference on Wednesday that "there is a risk" the U.S. central bank could slow the economy more than needed to control inflation.
"The biggest effect from this report is that it leaves inventories in a more overbuilt position than previously thought, putting second-quarter GDP into negative territory pending what tomorrow's data reveal about May consumption and consumer inflation and April revisions to the same," said Chris Low, chief economist at FHN Financial in New York.
Gross domestic product fell at a 1.6% annualized rate last quarter, revised down from the 1.5% pace of decline reported last month.
That was the first drop in GDP since the short and sharp pandemic recession nearly two years ago.
Trade subtracted an unrevised 3.23 percentage points from GDP.
Economists polled by Reuters had forecast the pace of contraction would be unrevised at a 1.5% rate.
The economy was initially estimated to have contracted at a 1.4% rate.
It grew at a robust 6.9% pace in the fourth quarter.
GDP was 2.7% above its level in the fourth quarter of 2019.
Consumer spending, which accounts for more than two-thirds of the economy, grew at a 1.8% rate instead of the 3.1% pace reported last month.
The downgrade reflected revisions to services, now estimated to have increased at a 3.0% rate instead of the previously reported 4.8% pace.
Spending on recreation, financial services and insurance as well as healthcare was downgraded.
Outlays on goods meant to last three years or more increased at a 5.9% pace, slashed from the previously reported 6.8% rate.
That reflected downgrades to motor vehicles and recreational goods spending.
Stocks on Wall Street were mostly lower.
The dollar rose against a basket of currencies.
U.S. Treasury yields fell.
INVENTORIES PILING UP
The moderate pace of spending left inventories significantly higher than estimated in May.
Business inventories increased at a $188.5 billion rate, rather than the $149.6 billon pace reported last month.
The accumulation was in the retail sector, mostly in general merchandise stores.
Major retailers like Walmart and Target have reported they are carrying too much merchandise.
Slower consumer spending was partially offset by stronger business investment in equipment, whose growth pace was raised to 14.1% from 13.2%.
As a result, growth in final sales to private domestic purchasers, which excludes trade, inventories and government spending, was cut to a 3.0% rate last quarter.
This measure of domestic demand was previously reported to have risen at a 3.9% rate.
Revisions to corporate profits were minor.
The saving rate was unrevised at 5.6%.
The increase in personal income was little changed from May's estimate.
But interest on assets was trimmed.
That led to the rise in gross domestic income (GDI), an alternative measure of economic growth, being pared to a 1.8% rate from the 2.1% pace estimated last month.
GDI advanced at a 6.3% rate in the fourth quarter.
The economy appears to have rebounded from the first-quarter slump, with consumer spending accelerating in April.
Business spending on equipment remained solid through May, while the goods trade deficit narrowed significantly as exports hit a record high.
But the bounce is losing momentum because of the Fed's aggressive posture.
The U.S. central bank this month raised its policy rate by three-quarters of a percentage point, its biggest hike since 1994.
The Fed has increased its benchmark overnight interest rate by 150 basis points since March.
Retail sales fell in May, while housing starts and building permits declined.
Consumer confidence hit a 16-month low in June.
May's consumer spending report on Thursday could shed more light on second-quarter growth prospects, which range from as low as a 0.3% rate to as high as a 2.9% pace.
"It is extremely unlikely the economy is in recession now, however, despite the decline in first-quarter GDP and apparent weakness in output growth in the current quarter," said Scott Hoyt, a senior economist at Moody's Analytics in West Chester, Pennsylvania.
"Job growth remains strong, investment is growing, both households and business have strong balance sheets."
Reporting by Lucia Mutikani; Editing by Nick Zieminski and Paul Simao
https://www.reuters.com/markets/us/reco ... 022-06-29/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
REUTERS
"U.S. to boost military presence in Europe as NATO bolsters its eastern flank"
By Aislinn Laing, Andrea Shalal and Robin Emmott
June 29, 2022
Summary
* Finland, Sweden to join NATO after ratification
* Biden promises more troops, weapons to Europe
* NATO agreed new force structure to deter Russia
* Madrid protesters call for more arms to Ukraine
MADRID, June 29 (Reuters) - U.S. President Joe Biden pledged more American troops, warplanes and warships for Europe on Wednesday as NATO agreed the biggest strengthening of its deterrents since the Cold War in response to Russia's invasion of Ukraine.
Biden's commitment at the Madrid summit "to defend every inch of allied territory" came as the U.S.-led military alliance also set in motion a new plan to reinforce the Baltic states and Poland against any future Russian attack.
With more German, British and other allied troops to be on alert to deploy eastward, the United States is also adding to the 100,000 personnel already in Europe by sending more warships to Spain, planes to Britain, pre-positioned weapons to the Baltics and more soldiers to Romania.
"We mean it when we say an attack against one is an attack against all," Biden said.
However, Italian Prime Minister Mario Draghi played down a threat of a near-term armed confrontation between NATO and Russia.
"There is no risk of a military escalation."
"We must be ready, but there is no risk," he said.
The Baltics originally sought permanent NATO bases and as much as a tenfold increase to NATO's troop presence from around 5,000 multinational soldiers prior to the Ukraine invasion, as well as adding air and maritime defences.
What NATO agreed on Wednesday falls short of that, but it means more allied troops in Estonia, Latvia and Lithuania, more equipment, weapons and ammunition sent to the region, and setting up a system of rapid reinforcements.
NATO leaders agreed to move towards putting more than 300,000 troops at higher readiness.
In the past, the alliance relied on far fewer troops - some 40,000 - to be first in line to respond to any Russian attack or other crises.
"President (Vladimir) Putin's war against Ukraine has shattered peace in Europe and has created the biggest security crisis in Europe since the Second World War," NATO Secretary-General Jens Stoltenberg told a news conference.
"NATO has responded with strength and unity."
The United States will also create a new permanent army headquarters in Poland, which was immediately welcomed by Polish president Andrzej Duda, as Warsaw long sought a permanent U.S. military base on its soil.
"It is a fact that strengthens our safety a lot ... in the difficult situation which we are in," Duda said.
As NATO also agreed a long-term military and financial aid package for Ukraine, Ukrainian refugees gathered in central Madrid to call for more arms for their nation, which is now facing a war of attrition against superior Russian artillery in the east of the country.
Ukrainian student Kateryna Darchyk, 20, told Reuters: "We ask for NATO to give us weapons because we have soldiers, we have people ready to fight for Ukraine, men and women who are ready to protect their country."
END OF NORDIC NEUTRALITY
In addition, NATO's 30 leaders invited Finland and Sweden into the alliance, a decision that once ratified would end decades of Nordic neutrality by putting the two countries under the United States' nuclear umbrella.
"The significance of this really can't be overstated," Britain's Prime Minister Boris Johnson told reporters.
"We're seeing the expansion of the alliance, which is exactly the opposite of what Putin wanted."
"He wanted less NATO, he's getting more."
That was made possible after Turkey dropped its veto against the two countries' progress to membership following four hours of talks on Tuesday evening in Madrid, ending weeks of drama that threatened allied unity.
As part of the deal, Sweden and Finland agreed not to support Kurdish militant groups.
Turkish President Tayyip Erdogan had threatened to block their bids over Ankara's accusations the two countries supported a Kurdish militia in northern Syria.
Turkey views the militia as an extension of the outlawed Kurdistan Workers Party (PKK) which is also deemed a terrorist group by the United States and the European Union.
Both Finland, which has a 1,300 km (810 mile) border with Russia, and Sweden, home of the founder of the Nobel Peace Prize, are now set to bring well-trained militaries into the alliance, possibly giving NATO Baltic Sea superiority.
"We are not yet covered by NATO's Article 5," Finland's Foreign Minister Pekka Haavisto told Reuters, referring to NATO's collective defence clause.
"Our aim is that period should be as short as possible," he said.
Additional reporting by Sabine Siebold, Belen Carreno, Humeyra Pamuk and Guillermo Martinez and Kylie MacLellan in London and Giulia Segreti in Rome, writing by Robin Emmott; Editing by Tomasz Janowski
https://www.reuters.com/world/europe/us ... 022-06-29/
"U.S. to boost military presence in Europe as NATO bolsters its eastern flank"
By Aislinn Laing, Andrea Shalal and Robin Emmott
June 29, 2022
Summary
* Finland, Sweden to join NATO after ratification
* Biden promises more troops, weapons to Europe
* NATO agreed new force structure to deter Russia
* Madrid protesters call for more arms to Ukraine
MADRID, June 29 (Reuters) - U.S. President Joe Biden pledged more American troops, warplanes and warships for Europe on Wednesday as NATO agreed the biggest strengthening of its deterrents since the Cold War in response to Russia's invasion of Ukraine.
Biden's commitment at the Madrid summit "to defend every inch of allied territory" came as the U.S.-led military alliance also set in motion a new plan to reinforce the Baltic states and Poland against any future Russian attack.
With more German, British and other allied troops to be on alert to deploy eastward, the United States is also adding to the 100,000 personnel already in Europe by sending more warships to Spain, planes to Britain, pre-positioned weapons to the Baltics and more soldiers to Romania.
"We mean it when we say an attack against one is an attack against all," Biden said.
However, Italian Prime Minister Mario Draghi played down a threat of a near-term armed confrontation between NATO and Russia.
"There is no risk of a military escalation."
"We must be ready, but there is no risk," he said.
The Baltics originally sought permanent NATO bases and as much as a tenfold increase to NATO's troop presence from around 5,000 multinational soldiers prior to the Ukraine invasion, as well as adding air and maritime defences.
What NATO agreed on Wednesday falls short of that, but it means more allied troops in Estonia, Latvia and Lithuania, more equipment, weapons and ammunition sent to the region, and setting up a system of rapid reinforcements.
NATO leaders agreed to move towards putting more than 300,000 troops at higher readiness.
In the past, the alliance relied on far fewer troops - some 40,000 - to be first in line to respond to any Russian attack or other crises.
"President (Vladimir) Putin's war against Ukraine has shattered peace in Europe and has created the biggest security crisis in Europe since the Second World War," NATO Secretary-General Jens Stoltenberg told a news conference.
"NATO has responded with strength and unity."
The United States will also create a new permanent army headquarters in Poland, which was immediately welcomed by Polish president Andrzej Duda, as Warsaw long sought a permanent U.S. military base on its soil.
"It is a fact that strengthens our safety a lot ... in the difficult situation which we are in," Duda said.
As NATO also agreed a long-term military and financial aid package for Ukraine, Ukrainian refugees gathered in central Madrid to call for more arms for their nation, which is now facing a war of attrition against superior Russian artillery in the east of the country.
Ukrainian student Kateryna Darchyk, 20, told Reuters: "We ask for NATO to give us weapons because we have soldiers, we have people ready to fight for Ukraine, men and women who are ready to protect their country."
END OF NORDIC NEUTRALITY
In addition, NATO's 30 leaders invited Finland and Sweden into the alliance, a decision that once ratified would end decades of Nordic neutrality by putting the two countries under the United States' nuclear umbrella.
"The significance of this really can't be overstated," Britain's Prime Minister Boris Johnson told reporters.
"We're seeing the expansion of the alliance, which is exactly the opposite of what Putin wanted."
"He wanted less NATO, he's getting more."
That was made possible after Turkey dropped its veto against the two countries' progress to membership following four hours of talks on Tuesday evening in Madrid, ending weeks of drama that threatened allied unity.
As part of the deal, Sweden and Finland agreed not to support Kurdish militant groups.
Turkish President Tayyip Erdogan had threatened to block their bids over Ankara's accusations the two countries supported a Kurdish militia in northern Syria.
Turkey views the militia as an extension of the outlawed Kurdistan Workers Party (PKK) which is also deemed a terrorist group by the United States and the European Union.
Both Finland, which has a 1,300 km (810 mile) border with Russia, and Sweden, home of the founder of the Nobel Peace Prize, are now set to bring well-trained militaries into the alliance, possibly giving NATO Baltic Sea superiority.
"We are not yet covered by NATO's Article 5," Finland's Foreign Minister Pekka Haavisto told Reuters, referring to NATO's collective defence clause.
"Our aim is that period should be as short as possible," he said.
Additional reporting by Sabine Siebold, Belen Carreno, Humeyra Pamuk and Guillermo Martinez and Kylie MacLellan in London and Giulia Segreti in Rome, writing by Robin Emmott; Editing by Tomasz Janowski
https://www.reuters.com/world/europe/us ... 022-06-29/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
THIS TWERP ZELENSKY DIDN'T EVEN KNOW RUSSIA WAS GOING TO INVADE HIS COUNTRY, SO WHAT ON EARTH DOES HE KNOW ABOUT RUSSIA'S INTENTIONS ABOUT ANYTHING, AND WHY IS ANYONE IN NATO OR ELSEWHERE STUPID ENOUGH TO LISTEN TO HIM?
BECAUSE NATO IS MORE IGNORANT ABOUT REALITY THAN EVEN ZELENSKY, A TV COMEDIAN, IS?
REUTERS
"Ukraine tells NATO Russia wants to dictate future world order"
By Pavel Polityuk
June 29, 2022
KYIV, June 29 (Reuters) - Ukrainian President Volodymyr Zelenskiy told NATO leaders on Wednesday his country needed more advanced weapons and money to defend itself against Russia, warning that Moscow's ambitions did not stop at Ukraine.
He put the monthly cost of defending Ukraine against Russia's invasion at about $5 billion.
"This is not a war being waged by Russia against only Ukraine."
"This is a war for the right to dictate conditions in Europe - for what the future world order will be like," he said in a virtual address to a summit of the Western defence alliance in Madrid.
"That is why it is absolutely necessary to support Ukraine, even now, with weapons, finances and political sanctions against Russia, which will stop its ability to pay for the war."
Zelenskiy said Ukraine needed modern missile and air defence systems to counter Russia's artillery.
"By providing them to us, you can completely break Russia's tactics to destroy cities and terrorise civilians," he said.
Moscow calls its actions a "special military operation" to disarm Ukraine and rid it of what it calls anti-Russian nationalism fomented by the West.
Ukraine and the West say Russia launched an unprovoked war of aggression.
Zelenskiy said Russia did not want to stop at taking areas of southern Ukraine or the Donbas region of eastern Ukraine, where the heaviest battles of the war are being fought.
"It wants to absorb city after city in Europe, which the Russian leadership considers its property and not independent states."
"This is Russia's real goal," he said.
"The question is - who is next for Russia?"
"Moldova?"
"The Baltic States?"
"Poland?"
"The answer is all of them."
He said NATO was adapting a new 10-year strategy that was "first and foremost a strategy for the security of your societies, your states" while Ukraine suffered "cruise missiles, torture, murder of children, rape of women."
"Financial support for Ukraine is now no less important than aid with weapons," he said.
"We need about $ 5 billion a month - and that's a fundamental thing."
"This is exactly what is needed for defence, for security."
Reporting by Pavel Polityuk, Editing by Timothy Heritage
https://www.reuters.com/world/europe/uk ... 022-06-29/
BECAUSE NATO IS MORE IGNORANT ABOUT REALITY THAN EVEN ZELENSKY, A TV COMEDIAN, IS?
REUTERS
"Ukraine tells NATO Russia wants to dictate future world order"
By Pavel Polityuk
June 29, 2022
KYIV, June 29 (Reuters) - Ukrainian President Volodymyr Zelenskiy told NATO leaders on Wednesday his country needed more advanced weapons and money to defend itself against Russia, warning that Moscow's ambitions did not stop at Ukraine.
He put the monthly cost of defending Ukraine against Russia's invasion at about $5 billion.
"This is not a war being waged by Russia against only Ukraine."
"This is a war for the right to dictate conditions in Europe - for what the future world order will be like," he said in a virtual address to a summit of the Western defence alliance in Madrid.
"That is why it is absolutely necessary to support Ukraine, even now, with weapons, finances and political sanctions against Russia, which will stop its ability to pay for the war."
Zelenskiy said Ukraine needed modern missile and air defence systems to counter Russia's artillery.
"By providing them to us, you can completely break Russia's tactics to destroy cities and terrorise civilians," he said.
Moscow calls its actions a "special military operation" to disarm Ukraine and rid it of what it calls anti-Russian nationalism fomented by the West.
Ukraine and the West say Russia launched an unprovoked war of aggression.
Zelenskiy said Russia did not want to stop at taking areas of southern Ukraine or the Donbas region of eastern Ukraine, where the heaviest battles of the war are being fought.
"It wants to absorb city after city in Europe, which the Russian leadership considers its property and not independent states."
"This is Russia's real goal," he said.
"The question is - who is next for Russia?"
"Moldova?"
"The Baltic States?"
"Poland?"
"The answer is all of them."
He said NATO was adapting a new 10-year strategy that was "first and foremost a strategy for the security of your societies, your states" while Ukraine suffered "cruise missiles, torture, murder of children, rape of women."
"Financial support for Ukraine is now no less important than aid with weapons," he said.
"We need about $ 5 billion a month - and that's a fundamental thing."
"This is exactly what is needed for defence, for security."
Reporting by Pavel Polityuk, Editing by Timothy Heritage
https://www.reuters.com/world/europe/uk ... 022-06-29/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
REUTERS
"Column: Oil market confronts U.S. and EU policymakers with unpalatable choices"
By John Kemp
June 29, 2022
LONDON, June 29 (Reuters) - With global inventories steadily falling and spare capacity eroding, the oil market resembles a geological fault line in which stress is quietly accumulating and will eventually be relieved by an earthquake of as yet unknown magnitude.
The most likely stress relief will come from a deceleration in oil consumption as a result of a recession or mid-cycle manufacturing slowdown in the major oil consuming economies of North America, Europe and Asia.
Economic growth is already slowing in the United States and faltering in Europe and China under the combined impact of accelerating inflation, rising interest rates and coronavirus controls.
Financial conditions are tightening rapidly as central banks raise interest rates and commercial banks enforce tougher lending standards.
Unlike previous cyclical slowdowns, central banks are likely to continue tightening financial conditions as the economy slows to snuff out inflation.
The alternative is for a sharp acceleration of production ― meaning more output from OPEC members, U.S. shale producers, other non-OPEC suppliers, or currently sanctioned countries.
Most OPEC members are already producing at full capacity, with the exception of Saudi Arabia and the United Arab Emirates.
The precise amount of spare capacity available in Saudi Arabia and the United Arab Emirates is disputed given the secrecy which surrounds their production systems.
But it is unlikely to be much more than around 1 million barrels per day (bpd) based on historic production rates (“Can Saudi Aramco Meet Its Oil Production Promises?”, Bloomberg, June 29).
U.S. shale producers are already increasing drilling rates, which will translate into higher production over the next 6-12 months, once the wells have been drilled, fractured and linked up to pipeline systems.
The largest shale producers remain committed to restraining output growth to avoid flooding the market and return capital to shareholders, which is likely to limit growth from this source.
Non-OPEC non-shale producers (NONS) are expected to increase production by under 1 million bpd in both 2022 and 2023 (“EIA forecasts growing liquid fuels production in Brazil, Canada and China”, EIA, June 17).
The only other source of increased production would come from easing sanctions on Venezuela, Iran or Russia, which could add several million barrels daily to the market depending on which sanctions were relaxed.
ACCUMULATING STRESS
Brent’s spot price and calendar spreads are sending contrasting signals about the tightness of oil supplies, implying the market is storing up volatility which is likely to be unleashed over the next few months.
Front-month futures prices are high, but not extremely so once adjusted for inflation, lying in the 78th percentile for all months since 1990 and the 85th percentile for all months since 2000.
The implication is the market is short of petroleum but the shortfall is not (yet) critical and expected to be resolved relatively easily by an increase in production, a reduction in consumption, or both.
But Brent’s six-month calendar spread, usually seen as a clearer signal about the balance between production, consumption, inventories and spare capacity, is trading near record levels.
Brent spreads are signalling the market is already exceptionally tight, with shortages becoming critical and difficult to relieve without a massive increase in output, a recession-driven fall in consumption, or both.
Other calendar spreads, including the very short-term dated Brent spreads for cargoes scheduled to load in the next few weeks, and Murban crude futures, the benchmark in Asia, are already at record levels.
The tightness in some of these short-term spreads is likely exaggerated by squeezes, so the price structures should be interpreted with care, but squeezes would not be possible if the market was not under-supplied.
Critical calendar spreads are signalling an extreme shortage of crude - even though the U.S. Strategic Petroleum Reserve (SPR) is discharging 1 million barrels per day until the end of October.
Spreads signal the production-consumption balance is expected to be far tighter than in either 2012-2014 or 2007-2008, the last time that real oil prices were this high.
The contradiction between spot prices and spreads must eventually be resolved, which will likely induce significant volatility.
Either spot prices must rise to align with tightness implied by the calendar spreads, or the spreads must soften to match the more evenly balanced market implied by spot prices.
TIME TO CHOOSE
The oil market is confronting policymakers with a menu of options.
But each of them carries a high cost in terms of diplomacy, domestic politics, the economy, or all three, making them unpalatable for decision-makers.
This explains why clever technical solutions that appear to avoid these hard choices are so popular at the moment in the United States and the European Union.
The proposed price cap on Russia’s petroleum exports is designed to reduce Russia’s revenues without reducing oil supply, raising prices, increasing the need for a recession, or relaxing sanctions on Iran or Venezuela.
But the feasibility of these technical solutions falls as their complexity increases.
It is like going into a restaurant, ordering all the items on the menu, and then being surprised the eventual bill is so high.
In the recent past, stringent U.S.-led sanctions on Iran between 2012 and 2015 contributed to the period of very high real prices between 2012 and 2014.
Sanctions have invariably driven up energy prices for consumers unless there are alternative supplies readily available to make up the deficit (“Energy sanctions and the impact on prices for consumers”, Kemp, June 2022).
In the current market, there is very limited spare capacity, unless and until a recessionary slowdown in the global economy and oil consumption creates some more slack.
U.S. and EU policymakers must therefore choose - tougher sanctions on Russia; easier sanctions on Venezuela and Iran; faster production growth from Saudi Arabia and the UAE; faster growth from U.S. shale; or a deeper recession.
John Kemp is a Reuters market analyst. The views expressed are his own
Editing by Marguerita Choy
https://www.reuters.com/business/energy ... 022-06-29/
"Column: Oil market confronts U.S. and EU policymakers with unpalatable choices"
By John Kemp
June 29, 2022
LONDON, June 29 (Reuters) - With global inventories steadily falling and spare capacity eroding, the oil market resembles a geological fault line in which stress is quietly accumulating and will eventually be relieved by an earthquake of as yet unknown magnitude.
The most likely stress relief will come from a deceleration in oil consumption as a result of a recession or mid-cycle manufacturing slowdown in the major oil consuming economies of North America, Europe and Asia.
Economic growth is already slowing in the United States and faltering in Europe and China under the combined impact of accelerating inflation, rising interest rates and coronavirus controls.
Financial conditions are tightening rapidly as central banks raise interest rates and commercial banks enforce tougher lending standards.
Unlike previous cyclical slowdowns, central banks are likely to continue tightening financial conditions as the economy slows to snuff out inflation.
The alternative is for a sharp acceleration of production ― meaning more output from OPEC members, U.S. shale producers, other non-OPEC suppliers, or currently sanctioned countries.
Most OPEC members are already producing at full capacity, with the exception of Saudi Arabia and the United Arab Emirates.
The precise amount of spare capacity available in Saudi Arabia and the United Arab Emirates is disputed given the secrecy which surrounds their production systems.
But it is unlikely to be much more than around 1 million barrels per day (bpd) based on historic production rates (“Can Saudi Aramco Meet Its Oil Production Promises?”, Bloomberg, June 29).
U.S. shale producers are already increasing drilling rates, which will translate into higher production over the next 6-12 months, once the wells have been drilled, fractured and linked up to pipeline systems.
The largest shale producers remain committed to restraining output growth to avoid flooding the market and return capital to shareholders, which is likely to limit growth from this source.
Non-OPEC non-shale producers (NONS) are expected to increase production by under 1 million bpd in both 2022 and 2023 (“EIA forecasts growing liquid fuels production in Brazil, Canada and China”, EIA, June 17).
The only other source of increased production would come from easing sanctions on Venezuela, Iran or Russia, which could add several million barrels daily to the market depending on which sanctions were relaxed.
ACCUMULATING STRESS
Brent’s spot price and calendar spreads are sending contrasting signals about the tightness of oil supplies, implying the market is storing up volatility which is likely to be unleashed over the next few months.
Front-month futures prices are high, but not extremely so once adjusted for inflation, lying in the 78th percentile for all months since 1990 and the 85th percentile for all months since 2000.
The implication is the market is short of petroleum but the shortfall is not (yet) critical and expected to be resolved relatively easily by an increase in production, a reduction in consumption, or both.
But Brent’s six-month calendar spread, usually seen as a clearer signal about the balance between production, consumption, inventories and spare capacity, is trading near record levels.
Brent spreads are signalling the market is already exceptionally tight, with shortages becoming critical and difficult to relieve without a massive increase in output, a recession-driven fall in consumption, or both.
Other calendar spreads, including the very short-term dated Brent spreads for cargoes scheduled to load in the next few weeks, and Murban crude futures, the benchmark in Asia, are already at record levels.
The tightness in some of these short-term spreads is likely exaggerated by squeezes, so the price structures should be interpreted with care, but squeezes would not be possible if the market was not under-supplied.
Critical calendar spreads are signalling an extreme shortage of crude - even though the U.S. Strategic Petroleum Reserve (SPR) is discharging 1 million barrels per day until the end of October.
Spreads signal the production-consumption balance is expected to be far tighter than in either 2012-2014 or 2007-2008, the last time that real oil prices were this high.
The contradiction between spot prices and spreads must eventually be resolved, which will likely induce significant volatility.
Either spot prices must rise to align with tightness implied by the calendar spreads, or the spreads must soften to match the more evenly balanced market implied by spot prices.
TIME TO CHOOSE
The oil market is confronting policymakers with a menu of options.
But each of them carries a high cost in terms of diplomacy, domestic politics, the economy, or all three, making them unpalatable for decision-makers.
This explains why clever technical solutions that appear to avoid these hard choices are so popular at the moment in the United States and the European Union.
The proposed price cap on Russia’s petroleum exports is designed to reduce Russia’s revenues without reducing oil supply, raising prices, increasing the need for a recession, or relaxing sanctions on Iran or Venezuela.
But the feasibility of these technical solutions falls as their complexity increases.
It is like going into a restaurant, ordering all the items on the menu, and then being surprised the eventual bill is so high.
In the recent past, stringent U.S.-led sanctions on Iran between 2012 and 2015 contributed to the period of very high real prices between 2012 and 2014.
Sanctions have invariably driven up energy prices for consumers unless there are alternative supplies readily available to make up the deficit (“Energy sanctions and the impact on prices for consumers”, Kemp, June 2022).
In the current market, there is very limited spare capacity, unless and until a recessionary slowdown in the global economy and oil consumption creates some more slack.
U.S. and EU policymakers must therefore choose - tougher sanctions on Russia; easier sanctions on Venezuela and Iran; faster production growth from Saudi Arabia and the UAE; faster growth from U.S. shale; or a deeper recession.
John Kemp is a Reuters market analyst. The views expressed are his own
Editing by Marguerita Choy
https://www.reuters.com/business/energy ... 022-06-29/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
THE DAILY CALLER
"New Fed Surveys Spell More Bad News For Biden’s Cratering Economy"
Sarah Weaver
28 JUNE 2022
A Tuesday survey from the Federal Reserve Bank of Richmond and a Monday survey from the Federal Reserve Bank of Dallas show more bleak signs for Biden’s economy.
“Fifth District manufacturing firms reported another decline in activity in June,” according to the Federal Reserve Bank of Richmond index.
Firms also reported being less optimistic about their economic future, as the “expectations index,” dropped from -13 to -19 over the last month.
Local business conditions worsened, too, with the “local business conditions index” decreasing to -32.
Factory activity in Texas decreased significantly in the last month, according to the survey from the Federal Reserve Bank of Dallas.
The production index fell from 18.8 in May to 2.3 this month.
The number is the lowest the index has reached since May of 2020.
The “new orders index,” which signals demand, decreased in June for the first time in two years, going from 3.2 to -7.3.
The “future production index” which is a measure of expectations regarding future manufacturing decreased strongly in the last month, going from 19.9 to just 4.0.
Treasury Secretary Janet Yellen said, “I expect the economy to slow,” in an interview with ABC’s George Stephanopoulos on June 19.
“Clearly inflation is unacceptably high, it’s President Biden’s top priority to bring it down,” Yellen, who had previously dismissed concerns about inflation, said.
But Yellen added that she didn’t think a recession was “at all inevitable.”
https://www.msn.com/en-us/money/markets ... 311fcf4f14
"New Fed Surveys Spell More Bad News For Biden’s Cratering Economy"
Sarah Weaver
28 JUNE 2022
A Tuesday survey from the Federal Reserve Bank of Richmond and a Monday survey from the Federal Reserve Bank of Dallas show more bleak signs for Biden’s economy.
“Fifth District manufacturing firms reported another decline in activity in June,” according to the Federal Reserve Bank of Richmond index.
Firms also reported being less optimistic about their economic future, as the “expectations index,” dropped from -13 to -19 over the last month.
Local business conditions worsened, too, with the “local business conditions index” decreasing to -32.
Factory activity in Texas decreased significantly in the last month, according to the survey from the Federal Reserve Bank of Dallas.
The production index fell from 18.8 in May to 2.3 this month.
The number is the lowest the index has reached since May of 2020.
The “new orders index,” which signals demand, decreased in June for the first time in two years, going from 3.2 to -7.3.
The “future production index” which is a measure of expectations regarding future manufacturing decreased strongly in the last month, going from 19.9 to just 4.0.
Treasury Secretary Janet Yellen said, “I expect the economy to slow,” in an interview with ABC’s George Stephanopoulos on June 19.
“Clearly inflation is unacceptably high, it’s President Biden’s top priority to bring it down,” Yellen, who had previously dismissed concerns about inflation, said.
But Yellen added that she didn’t think a recession was “at all inevitable.”
https://www.msn.com/en-us/money/markets ... 311fcf4f14
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
BLOOMBERG
"‘They Do Not Want Us,’ Ukraine Says of NATO as Leaders Meet"
Marc Champion and Daryna Krasnolutska
28 JUNE 2022
(Bloomberg) -- With one foot in the door on European Union membership, Ukraine’s leadership is feeling if anything even more bitter about NATO as the military alliance gathers in Spain for its annual summit.
Ukraine is told “you are not a member because we do not want you,” President Volodymyr Zelenskiy’s Deputy Chief of Staff Ihor Zhovkva, who is responsible for foreign policy, said in an interview in Kyiv.
“NATO is telling us we are not giving you anything.”
The alliance’s members including the US, UK and nations across Europe have of course sent large arrays of weaponry into Ukraine to help it fight Russia’s invading forces.
Those weapons have steadily grown in intensity to include more offensive arms and, this week, a pledge from the US to ship an advanced surface-to-air missile defense system.
NATO states have also provided financial aid to keep the Ukrainian government operating.
But the alliance as a whole, according to Zhovkva, has fallen short, and Ukraine’s expectations for Madrid are low.
“Obviously what we want to achieve,” he said, speaking at his office along the darkened, sandbagged corridors of the presidential building, “is unanimous, vocal support for Ukraine.”
With Ukraine under intensified missile attacks, including on a shopping mall Monday with at least 18 people killed, Zelenskiy will address the alliance’s 30 leaders by video.
Zhovkva will be there in person to press his country’s case.
Ukraine has written its aspiration to join the transatlantic military alliance into its constitution, and has been seeking a so-called membership action plan to make that happen, so far without success and against strong opposition from Moscow.
Zelenskiy has said he is ready to consider committing to some form of “neutrality,” as demanded by Moscow, but only in exchange for firm security guarantees from Ukraine’s partners.
NATO’s political support is important, Zhovkva said, just as it is from the Group of Seven, whose leaders just met for three days in Germany, or any other international body.
He acknowledged, too, that much of the vital bilateral military Ukraine is getting comes from NATO members, including Poland, the UK and the US.
Yet Ukraine expected more practical support from NATO, arguably the only body equipped to offer effective security guarantees against a nuclear armed Russia.
The government in Kyiv asked NATO for weapons before the war, for a no fly zone after it began, and for a membership perspective throughout, Zhovkva said, adding “we received zero answer.”
Many NATO members, including the US, fear that enforcing a no-fly zone would lead quickly to a direct confrontation between nuclear powers.
Offering membership now, meanwhile, could give credence to President Vladimir Putin’s justification for the war as a response to NATO expansion, and could again lead to a rapid escalation.
The broader stance of the alliance might smart less if NATO members individually had been faster to provide the heavy weapons Ukraine believes it needs to survive, if not win the war.
“Now in Ukraine we are living a little bit quicker,” he said.
“People are dying.”
A new draft security concept for the alliance needs to acknowledge clearly that its primary threat is Russia and that the best defense it has against that threat is Ukraine, Zhovkva said.
With a military that has proved its ability and direct experience in fighting Russian armed forces, he said his country would benefit -- rather than jeopardize -- the security of other NATO members.
Adding Sweden and Finland to the alliance or expanding its rapid 15-day response force would all improve Europe’s security, according to Zhovkva.
But imagine what would have happened, he said, if Ukraine had taken 15 days to deploy its forces once Russia invaded on Feb. 24.
https://www.msn.com/en-us/news/world/th ... 311fcf4f14
"‘They Do Not Want Us,’ Ukraine Says of NATO as Leaders Meet"
Marc Champion and Daryna Krasnolutska
28 JUNE 2022
(Bloomberg) -- With one foot in the door on European Union membership, Ukraine’s leadership is feeling if anything even more bitter about NATO as the military alliance gathers in Spain for its annual summit.
Ukraine is told “you are not a member because we do not want you,” President Volodymyr Zelenskiy’s Deputy Chief of Staff Ihor Zhovkva, who is responsible for foreign policy, said in an interview in Kyiv.
“NATO is telling us we are not giving you anything.”
The alliance’s members including the US, UK and nations across Europe have of course sent large arrays of weaponry into Ukraine to help it fight Russia’s invading forces.
Those weapons have steadily grown in intensity to include more offensive arms and, this week, a pledge from the US to ship an advanced surface-to-air missile defense system.
NATO states have also provided financial aid to keep the Ukrainian government operating.
But the alliance as a whole, according to Zhovkva, has fallen short, and Ukraine’s expectations for Madrid are low.
“Obviously what we want to achieve,” he said, speaking at his office along the darkened, sandbagged corridors of the presidential building, “is unanimous, vocal support for Ukraine.”
With Ukraine under intensified missile attacks, including on a shopping mall Monday with at least 18 people killed, Zelenskiy will address the alliance’s 30 leaders by video.
Zhovkva will be there in person to press his country’s case.
Ukraine has written its aspiration to join the transatlantic military alliance into its constitution, and has been seeking a so-called membership action plan to make that happen, so far without success and against strong opposition from Moscow.
Zelenskiy has said he is ready to consider committing to some form of “neutrality,” as demanded by Moscow, but only in exchange for firm security guarantees from Ukraine’s partners.
NATO’s political support is important, Zhovkva said, just as it is from the Group of Seven, whose leaders just met for three days in Germany, or any other international body.
He acknowledged, too, that much of the vital bilateral military Ukraine is getting comes from NATO members, including Poland, the UK and the US.
Yet Ukraine expected more practical support from NATO, arguably the only body equipped to offer effective security guarantees against a nuclear armed Russia.
The government in Kyiv asked NATO for weapons before the war, for a no fly zone after it began, and for a membership perspective throughout, Zhovkva said, adding “we received zero answer.”
Many NATO members, including the US, fear that enforcing a no-fly zone would lead quickly to a direct confrontation between nuclear powers.
Offering membership now, meanwhile, could give credence to President Vladimir Putin’s justification for the war as a response to NATO expansion, and could again lead to a rapid escalation.
The broader stance of the alliance might smart less if NATO members individually had been faster to provide the heavy weapons Ukraine believes it needs to survive, if not win the war.
“Now in Ukraine we are living a little bit quicker,” he said.
“People are dying.”
A new draft security concept for the alliance needs to acknowledge clearly that its primary threat is Russia and that the best defense it has against that threat is Ukraine, Zhovkva said.
With a military that has proved its ability and direct experience in fighting Russian armed forces, he said his country would benefit -- rather than jeopardize -- the security of other NATO members.
Adding Sweden and Finland to the alliance or expanding its rapid 15-day response force would all improve Europe’s security, according to Zhovkva.
But imagine what would have happened, he said, if Ukraine had taken 15 days to deploy its forces once Russia invaded on Feb. 24.
https://www.msn.com/en-us/news/world/th ... 311fcf4f14
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
ASSOCIATED PRESS
"NATO chief: Alliance faces biggest challenge since WWII"
By JILL LAWLESS, JOSEPH WILSON and SYLVIE CORBET, Associated Press
29 JUNE 2022
MADRID (AP) — NATO leaders were sitting down Wednesday to try to turn an urgent sense of purpose triggered by Russia’s invasion of Ukraine into action — and to patch up any cracks in their unity over money and mission.
Secretary-General Jens Stoltenberg said the alliance was meeting in Madrid “in the midst of the most serious security crisis we have faced since the Second World War.”
Russia’s invasion of its neighbor has shattered Europe’s peace and driven NATO to pour troops and weapons into eastern Europe on a scale not seen since the Cold War.
Members of the alliance have also sent billions in military and civilian aid to Ukraine.
The 30 NATO leaders will hear directly from Ukrainian President Volodymyr Zelenskyy, who is likely to ask them to do even more when he addresses the gathering by video link.
U.S. President Joe Biden, whose country provides the bulk of NATO's military power, said the summit was sending “an unmistakable message .. that NATO is strong and united.”
“We’re stepping up."
"We’re proving that NATO is more needed now than it ever has been,” said Biden.
He announced a hefty boost in America's military presence in Europe, including a permanent U.S. base in Poland, two more Navy destroyers based in Rota, Spain, and two more F35 squadrons to the U.K.
But NATO allies are showing signs of strain as the cost of energy and other essential goods has skyrocketed amid the war and tough Western sanctions on Russia.
There also are tensions over how the war will end and what, if any, concessions Ukraine should make to stop the fighting.
Money could also be a sensitive issue — just nine of NATO’s 30 members currently meet the organization’s target of spending 2% of gross domestic product on defense.
British Prime Minister Boris Johnson, whose country does hit the target, urged NATO allies “to dig deep to restore deterrence and ensure defense in the decade ahead.”
The war has already triggered a big increase in NATO’s forces in eastern Europe, and allies are expected to agree at the summit to increase the strength of the alliance’s rapid reaction force nearly eightfold, from 40,000 to 300,000 troops by next year.
The troops will be based in their home nations, but dedicated to specific countries on NATO’s eastern flank, where the alliance plans to build up stocks of equipment and ammunition.
Stoltenberg said NATO was undertaking “the biggest overhaul of our collective defense since the end of the Cold War.”
The leaders are also set to publish NATO’s new Strategic Concept, its once-a-decade set of priorities and goals.
The last such document, in 2010, called Russia a “strategic partner” for NATO.
Now Russia is set to be declared the alliance’s number one threat.
The document will also set out NATO’s approach on issues from cybersecurity to climate change — and the growing economic and military reach of China.
For the first time, the leaders of Japan, Australia, South Korea and New Zealand are attending the summit as guests, a reflection of the growing importance of the Indo-Pacific region.
Stoltenberg said China was not NATO’s adversary, but posed “challenges to our values, to our interest and to our security.”
Biden was due to hold a rare joint meeting with Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol on the sidelines of the summit, focused on North Korea’s nuclear program.
The summit opened with one problem solved, after Turkey agreed Tuesday to lift its opposition to Sweden and Finland joining NATO.
In response to the invasion, the two Nordic nations abandoned their long-held nonaligned status and applied to join NATO as protection against an increasingly aggressive and unpredictable Russia — which shares a long border with Finland.
NATO operates by consensus, and Turkish President Recep Tayyip Erdogan had threatened to block the Nordic pair, insisting they change their stance on Kurdish rebel groups that Turkey considers terrorists.
After urgent top-level talks with leaders of the three countries, alliance Secretary Stoltenberg said the impasse had been cleared.
Turkey hailed Tuesday’s agreement as a triumph, saying the Nordic nations had agreed to crack down on groups that Ankara deems national security threats, including the Kurdistan Workers’ Party, or PKK, which is also considered a terrorist group by the U.S. and the EU, and its Syrian extension.
It said they also agreed “not to impose embargo restrictions in the field of defense industry” on Turkey and to take “concrete steps on the extradition of terrorist criminals.”
Stoltenberg said leaders of the 30-nation alliance will issue a formal invitation Wednesday to the two countries to join.
The decision has to be ratified by all individual nations, but he said he was “absolutely confident” Finland and Sweden would become members.
Stoltenberg said he expected the process to be finished “rather quickly,” but did not set a time on it.
___
Associated Press writer Zeke Miller in Madrid contributed.
___
Follow the AP’s coverage of the war at https://apnews.com/hub/russia-ukraine
https://www.msn.com/en-us/news/world/na ... 311fcf4f14
"NATO chief: Alliance faces biggest challenge since WWII"
By JILL LAWLESS, JOSEPH WILSON and SYLVIE CORBET, Associated Press
29 JUNE 2022
MADRID (AP) — NATO leaders were sitting down Wednesday to try to turn an urgent sense of purpose triggered by Russia’s invasion of Ukraine into action — and to patch up any cracks in their unity over money and mission.
Secretary-General Jens Stoltenberg said the alliance was meeting in Madrid “in the midst of the most serious security crisis we have faced since the Second World War.”
Russia’s invasion of its neighbor has shattered Europe’s peace and driven NATO to pour troops and weapons into eastern Europe on a scale not seen since the Cold War.
Members of the alliance have also sent billions in military and civilian aid to Ukraine.
The 30 NATO leaders will hear directly from Ukrainian President Volodymyr Zelenskyy, who is likely to ask them to do even more when he addresses the gathering by video link.
U.S. President Joe Biden, whose country provides the bulk of NATO's military power, said the summit was sending “an unmistakable message .. that NATO is strong and united.”
“We’re stepping up."
"We’re proving that NATO is more needed now than it ever has been,” said Biden.
He announced a hefty boost in America's military presence in Europe, including a permanent U.S. base in Poland, two more Navy destroyers based in Rota, Spain, and two more F35 squadrons to the U.K.
But NATO allies are showing signs of strain as the cost of energy and other essential goods has skyrocketed amid the war and tough Western sanctions on Russia.
There also are tensions over how the war will end and what, if any, concessions Ukraine should make to stop the fighting.
Money could also be a sensitive issue — just nine of NATO’s 30 members currently meet the organization’s target of spending 2% of gross domestic product on defense.
British Prime Minister Boris Johnson, whose country does hit the target, urged NATO allies “to dig deep to restore deterrence and ensure defense in the decade ahead.”
The war has already triggered a big increase in NATO’s forces in eastern Europe, and allies are expected to agree at the summit to increase the strength of the alliance’s rapid reaction force nearly eightfold, from 40,000 to 300,000 troops by next year.
The troops will be based in their home nations, but dedicated to specific countries on NATO’s eastern flank, where the alliance plans to build up stocks of equipment and ammunition.
Stoltenberg said NATO was undertaking “the biggest overhaul of our collective defense since the end of the Cold War.”
The leaders are also set to publish NATO’s new Strategic Concept, its once-a-decade set of priorities and goals.
The last such document, in 2010, called Russia a “strategic partner” for NATO.
Now Russia is set to be declared the alliance’s number one threat.
The document will also set out NATO’s approach on issues from cybersecurity to climate change — and the growing economic and military reach of China.
For the first time, the leaders of Japan, Australia, South Korea and New Zealand are attending the summit as guests, a reflection of the growing importance of the Indo-Pacific region.
Stoltenberg said China was not NATO’s adversary, but posed “challenges to our values, to our interest and to our security.”
Biden was due to hold a rare joint meeting with Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol on the sidelines of the summit, focused on North Korea’s nuclear program.
The summit opened with one problem solved, after Turkey agreed Tuesday to lift its opposition to Sweden and Finland joining NATO.
In response to the invasion, the two Nordic nations abandoned their long-held nonaligned status and applied to join NATO as protection against an increasingly aggressive and unpredictable Russia — which shares a long border with Finland.
NATO operates by consensus, and Turkish President Recep Tayyip Erdogan had threatened to block the Nordic pair, insisting they change their stance on Kurdish rebel groups that Turkey considers terrorists.
After urgent top-level talks with leaders of the three countries, alliance Secretary Stoltenberg said the impasse had been cleared.
Turkey hailed Tuesday’s agreement as a triumph, saying the Nordic nations had agreed to crack down on groups that Ankara deems national security threats, including the Kurdistan Workers’ Party, or PKK, which is also considered a terrorist group by the U.S. and the EU, and its Syrian extension.
It said they also agreed “not to impose embargo restrictions in the field of defense industry” on Turkey and to take “concrete steps on the extradition of terrorist criminals.”
Stoltenberg said leaders of the 30-nation alliance will issue a formal invitation Wednesday to the two countries to join.
The decision has to be ratified by all individual nations, but he said he was “absolutely confident” Finland and Sweden would become members.
Stoltenberg said he expected the process to be finished “rather quickly,” but did not set a time on it.
___
Associated Press writer Zeke Miller in Madrid contributed.
___
Follow the AP’s coverage of the war at https://apnews.com/hub/russia-ukraine
https://www.msn.com/en-us/news/world/na ... 311fcf4f14
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
RIGZONE
"Oil Hits First Monthly Decline This Year"
by Bloomberg | Julia Fanzeres
Thursday, June 30, 2022
Oil marked its first monthly decline since November as OPEC+ completed the return of output it halted during the pandemic and signs emerged that the US economy was on weaker footing than expected.
West Texas Intermediate dropped below $106 a barrel on Thursday, posting a monthly decline of 7.8%.
OPEC+ rubber-stamped an increase in supply for August, but focus is turning to how much those members with spare production capacity will pump once the current agreement ends.
President Joe Biden said he’ll request more output at the Gulf Cooperation Council forum next month rather than ask Saudi Arabia directly.
Prices were also pressured Thursday after a report showed US consumer spending fell in May for the first time this year and prior months were revised lower.
“A raft of US data all drove home the point that recession risks continue to grow” said Ed Moya, senior market analyst at Oanda.
“The demand outlook might be deteriorating as gasoline usage has disappointed” with retail prices hovering near record highs.
US gasoline demand is showing signs of softening just three weeks into the peak driving season.
This comes after retail gasoline prices hit national record highs earlier in the month.
The data were published a day after a report showed fewer Americans are planning road trips this summer as gas prices soar.
Demand has stalled since the beginning of the year, when we were having a higher rate of demand growth, Ed Morse, Citigroup’s global head of commodity research, said in a Bloomberg TV interview.
“And it’s stalling out in the rest of the world because of high prices.”
Soaring gasoline prices have become a political problem for Biden, who has lobbied OPEC+ to increase output while also tapping into the strategic reserve to supplement the tight physical market.
In his upcoming visit to Saudi Arabia, Biden said, he will ask American allies in the Persian Gulf region to increase production instead of asking Crown Prince Mohammed Bin Salman directly to boost energy output directly at the July 16 meeting.
Even as futures have come off in recent days leading to the first monthly decline this year, premiums for more promptly available physical barrels are fetching enormous premiums amid outages from Libya to Ecuador.
Prices:
WTI for August delivery fell by $4.02 to settle at $105.76 in New York.
Brent for August settlement, which expires Thursday, fell $1.45 to settle at $114.81 a barrel.
Oil is still about 45% higher this year as the global economic recovery coincided with upended trade flows from Russia after its invasion of Ukraine in late February.
US crude inventories at the key storage hub at Cushing, Oklahoma, have reached critically low levels as refineries produce as much fuel as possible, while the pull for barrels from overseas remains strong.
The world is heading for a “turbulent period” as tightening supplies of oil and liquefied natural gas exacerbate a global energy crunch, Shell Plc Chief Executive Officer Ben van Beurden said in Singapore on Wednesday.
“Spare capacity is very low, demand is still recovering,” he said.
https://www.rigzone.com/news/wire/oil_h ... 3-article/
"Oil Hits First Monthly Decline This Year"
by Bloomberg | Julia Fanzeres
Thursday, June 30, 2022
Oil marked its first monthly decline since November as OPEC+ completed the return of output it halted during the pandemic and signs emerged that the US economy was on weaker footing than expected.
West Texas Intermediate dropped below $106 a barrel on Thursday, posting a monthly decline of 7.8%.
OPEC+ rubber-stamped an increase in supply for August, but focus is turning to how much those members with spare production capacity will pump once the current agreement ends.
President Joe Biden said he’ll request more output at the Gulf Cooperation Council forum next month rather than ask Saudi Arabia directly.
Prices were also pressured Thursday after a report showed US consumer spending fell in May for the first time this year and prior months were revised lower.
“A raft of US data all drove home the point that recession risks continue to grow” said Ed Moya, senior market analyst at Oanda.
“The demand outlook might be deteriorating as gasoline usage has disappointed” with retail prices hovering near record highs.
US gasoline demand is showing signs of softening just three weeks into the peak driving season.
This comes after retail gasoline prices hit national record highs earlier in the month.
The data were published a day after a report showed fewer Americans are planning road trips this summer as gas prices soar.
Demand has stalled since the beginning of the year, when we were having a higher rate of demand growth, Ed Morse, Citigroup’s global head of commodity research, said in a Bloomberg TV interview.
“And it’s stalling out in the rest of the world because of high prices.”
Soaring gasoline prices have become a political problem for Biden, who has lobbied OPEC+ to increase output while also tapping into the strategic reserve to supplement the tight physical market.
In his upcoming visit to Saudi Arabia, Biden said, he will ask American allies in the Persian Gulf region to increase production instead of asking Crown Prince Mohammed Bin Salman directly to boost energy output directly at the July 16 meeting.
Even as futures have come off in recent days leading to the first monthly decline this year, premiums for more promptly available physical barrels are fetching enormous premiums amid outages from Libya to Ecuador.
Prices:
WTI for August delivery fell by $4.02 to settle at $105.76 in New York.
Brent for August settlement, which expires Thursday, fell $1.45 to settle at $114.81 a barrel.
Oil is still about 45% higher this year as the global economic recovery coincided with upended trade flows from Russia after its invasion of Ukraine in late February.
US crude inventories at the key storage hub at Cushing, Oklahoma, have reached critically low levels as refineries produce as much fuel as possible, while the pull for barrels from overseas remains strong.
The world is heading for a “turbulent period” as tightening supplies of oil and liquefied natural gas exacerbate a global energy crunch, Shell Plc Chief Executive Officer Ben van Beurden said in Singapore on Wednesday.
“Spare capacity is very low, demand is still recovering,” he said.
https://www.rigzone.com/news/wire/oil_h ... 3-article/
Re: AMERICA'S FIGHTING BULLDOG JOE BIDEN
CNBC
"Fed’s preferred inflation measure rose 4.7% in May, around multi-decade highs"
Jeff Cox @JEFF.COX.7528 @JEFFCOXCNBCCOM
PUBLISHED THU, JUN 30 2022
KEY POINTS
* Core personal consumption expenditures prices, excluding food and energy, rose 4.7% from a year ago, slightly less than expected.
* Headline inflation remained strong, rising 0.6% on the month and holding near the highest level since 1982.
* Disposable income and inflation-adjusted spending both declined on the month.
* Weekly jobless claims totaled 231,000, a slight decline from the previous period.
Inflation held at stubbornly high levels in May, though the monthly increased was slightly less than expected, according to a Commerce Department gauge closely watched by the Federal Reserve.
Core personal consumption expenditures prices rose 4.7% from a year ago, 0.2 percentage point less than the previous month but still around levels last seen in the 1980s.
Wall Street had been looking for a reading around 4.8%.
On monthly basis, the measure, which excludes volatile food and energy prices, increased 0.3%, slightly less than the 0.4% Dow Jones estimate.
Headline inflation, however, shot higher, rising 0.6% for the month, much faster than the 0.2% gain in April.
That kept year-over-year inflation at 6.3%, the same as in April and down slightly from March’s 6.6%, which was the highest reading since January 1982.
In addition, the report reflected pressures on consumer spending, which accounts for nearly 70% of all economic activity in the U.S.
While personal income rose 0.5% in May, ahead of the 0.4% estimate, income after taxes and other charges, or disposable personal income, declined 0.1% on the month and 3.3% from a year ago.
Spending adjusted for inflation fell 0.4%, a sharp drop from the 0.3% gain in April, though it was up 2.1% on a year-over-year basis.
“The rising cost of living absorbed all of the increased spending power from added jobs and higher wages in May,” said Bill Adams, chief economist for Comerica Bank.
“Americans are running faster just to stay even."
"No wonder consumer confidence is in the pits.”
Goods inflation rose 9.6% while services prices were up 4.7%, both up 0.1 percentage point from April.
The personal saving rate edged higher, rising to 5.4%, up 0.2 percentage point from the previous month.
Fed officials are watching the data closely as they seek to control runaway inflation.
Central bank policymakers generally watch core inflation more closely because they believe monetary policy is less effective at controlling the ups and downs of gas and grocery prices.
However, Fed Chairman Jerome Powell has said in recent days that he also is watching headline numbers closely as well as gas prices average about $4.86 a gallon.
The consumer price index, which measures a broad range of goods and services and is more closely watched by the public, rose 8.6% in May, its highest level since late 1981.
In other economic news Thursday, the Labor Department reported that jobless claims edged lower to 231,000 for the week ended June 25.
That was a decline of 2,000 from the previous period though 1,000 higher than the estimate.
Continuing claims, which run a week behind the headline number, totaled 1.33 million, a slight decline from the previous week.
https://www.cnbc.com/2022/06/30/feds-pr ... -high.html
"Fed’s preferred inflation measure rose 4.7% in May, around multi-decade highs"
Jeff Cox @JEFF.COX.7528 @JEFFCOXCNBCCOM
PUBLISHED THU, JUN 30 2022
KEY POINTS
* Core personal consumption expenditures prices, excluding food and energy, rose 4.7% from a year ago, slightly less than expected.
* Headline inflation remained strong, rising 0.6% on the month and holding near the highest level since 1982.
* Disposable income and inflation-adjusted spending both declined on the month.
* Weekly jobless claims totaled 231,000, a slight decline from the previous period.
Inflation held at stubbornly high levels in May, though the monthly increased was slightly less than expected, according to a Commerce Department gauge closely watched by the Federal Reserve.
Core personal consumption expenditures prices rose 4.7% from a year ago, 0.2 percentage point less than the previous month but still around levels last seen in the 1980s.
Wall Street had been looking for a reading around 4.8%.
On monthly basis, the measure, which excludes volatile food and energy prices, increased 0.3%, slightly less than the 0.4% Dow Jones estimate.
Headline inflation, however, shot higher, rising 0.6% for the month, much faster than the 0.2% gain in April.
That kept year-over-year inflation at 6.3%, the same as in April and down slightly from March’s 6.6%, which was the highest reading since January 1982.
In addition, the report reflected pressures on consumer spending, which accounts for nearly 70% of all economic activity in the U.S.
While personal income rose 0.5% in May, ahead of the 0.4% estimate, income after taxes and other charges, or disposable personal income, declined 0.1% on the month and 3.3% from a year ago.
Spending adjusted for inflation fell 0.4%, a sharp drop from the 0.3% gain in April, though it was up 2.1% on a year-over-year basis.
“The rising cost of living absorbed all of the increased spending power from added jobs and higher wages in May,” said Bill Adams, chief economist for Comerica Bank.
“Americans are running faster just to stay even."
"No wonder consumer confidence is in the pits.”
Goods inflation rose 9.6% while services prices were up 4.7%, both up 0.1 percentage point from April.
The personal saving rate edged higher, rising to 5.4%, up 0.2 percentage point from the previous month.
Fed officials are watching the data closely as they seek to control runaway inflation.
Central bank policymakers generally watch core inflation more closely because they believe monetary policy is less effective at controlling the ups and downs of gas and grocery prices.
However, Fed Chairman Jerome Powell has said in recent days that he also is watching headline numbers closely as well as gas prices average about $4.86 a gallon.
The consumer price index, which measures a broad range of goods and services and is more closely watched by the public, rose 8.6% in May, its highest level since late 1981.
In other economic news Thursday, the Labor Department reported that jobless claims edged lower to 231,000 for the week ended June 25.
That was a decline of 2,000 from the previous period though 1,000 higher than the estimate.
Continuing claims, which run a week behind the headline number, totaled 1.33 million, a slight decline from the previous week.
https://www.cnbc.com/2022/06/30/feds-pr ... -high.html