Gunmen kill Russian policemen, priest and civilians in Dagestan

Good morning. Here's what happened overnight and what you need to know today.

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1.

Holy tragedy: Gunmen opened fire on churches and synagogues in two cities of Russia’s southernmost Dagestan province, killing at least 19 people, including 15 police officers, an Orthodox priest and three other civilians. The assaults occurred in Derbent and Makhachkala on Sunday, with heavy gunfire and violence lasting into the night. In Derbent, the attackers set fire to a synagogue and killed a 66-year-old priest identified as Nikolai Kotelnikov. In Makhachkala, gunmen shot at a traffic police post and gun battles erupted around the Russian Orthodox Assumption Cathedral in the city. Five attackers were also reported dead. No group has claimed responsibility, but the attack on Christian and Jewish places of worship stoked fears of renewed Islamist threats in Russia after an ISIS affiliate group, ISIS-K, claimed responsibility for a deadly attack in Moscow three months earlier. President Vladimir Putin is yet to comment. (CNN)(Reuters)

2.

Nvidia nosedive: Nvidia shares entered correction territory with a 6.5% plunge on Monday to as little as USD118.29 ($177.61) per share, marking a three-day selloff that erased over USD400 billion from its market capitalisation. The decline, driven by potential investor fatigue with AI-related stocks, pushed Nvidia's value back below USD3 trillion and behind both Microsoft and Apple in size. Despite the recent slump, Nvidia's stock remains up 140% this year due to high demand for its AI chips, making it the second-best performer among S&P 500 components, only behind Super Micro Computer Inc, another favourite AI play. The Philadelphia Stock Exchange Semiconductor Index also fell 2.6% on Monday, with Broadcom, Taiwan Semiconductor Manufacturing Co., and Qualcomm all down. Nvidia's stock trades at nearly 23 times estimated sales over the next 12 months, the highest in the S&P 500, yet it remains an investor favourite. Nearly 90% of analysts recommend buying it, and portfolio managers caution against contrarian investing in the stock due to its super strong momentum. (Bloomberg)

3.

Shein’s IPO: Online fast-fashion retailer Shein has confidentially filed papers with the UK's Financial Conduct Authority (FCA) for a potential London listing later this year, Bloomberg reported, citing unnamed sources. The potential IPO, which could be London’s biggest in more than a decade and value the company at £50 billion ($95 billion), follows a previous plan to list in New York, which faced opposition from US lawmakers. While plans were for a listing in the second half of the year, there is no guarantee it will proceed and its timing is uncertain as Shein is still awaiting approval from the Chinese securities regulator, the publication said. The FCA and Shein, which was founded in China and is now headquartered in Singapore, declined to comment. During a pre-election debate on Monday, the UK’s Business Secretary Kemi Badenoch raised concerns about Shein’s tax practices and working conditions in China, while Labour’s Jonathan Reynolds, the Shadow Business Secretary, supported a UK listing as that would ensure compliance with British standards, he said. (Bloomberg)

4.

Big Tech reg: The EU informed Apple that its App Store is violating the bloc’s Digital Markets Act (DMA), making the tech giant the first company to run afoul of the new sweeping digital competition law. In a statement, the European Commission said its preliminary view is that Apple’s App Store rules breach the DMA by preventing developers from directing consumers to alternative payment methods and by charging excessive fees for in-app purchases made within seven days of signing up via external links. The Commission may fine Apple up to 10% of its global revenue, which was USD383 billion ($575 billion) last year, potentially rising to 20% for repeated violations. A final decision is expected by 25 March 2025. The action follows a €1.8 billion antitrust fine the EU imposed on Apple in March for restricting streaming app developers. The Commission also launched an investigation into Apple's multi-step process for downloading alternative app stores on iPhones, and its new Core Technology Fee, which charges developers based on app downloads. Apple said it has made changes in the past few months to ensure compliance with the DMA. It plans to delay the launch of new AI features on the continent. (European Commission statement) (Capital Brief)

5.

Netanyahu’s vision: In his first Hebrew-language interview since October 7, Israeli Prime Minister Benjamin Netanyahu outlined his vision for the ongoing conflict in Gaza, rejecting a permanent ceasefire to secure hostages and signalling potential escalation with Hezbollah in Lebanon. Netanyahu’s comments on Channel 14 underscored his commitment to a prolonged military engagement with broader regional implications, potentially undercutting months of diplomatic efforts by the US, Qatar, and Egypt to broker a ceasefire-for-hostage deal between Israel and Hamas. He expressed openness to a “partial deal” to return some hostages but was unwilling to stop the war with Hamas. “We are committed to continuing the war after a pause in order to complete the objective of destroying Hamas,” he stated. “On this I’m not willing to relent.” Families of the 120 remaining hostages immediately condemned his remarks. Netanyahu also said Israeli forces would redeploy to the northern border with Lebanon after the current intense fighting phase in Gaza ends, which could potentially escalate violent exchanges with Iranian-backed Hezbollah, raising fears of a broader regional conflict. (Financial Times)(Associated Press)(Reuters)(Bloomberg)

6.

Indonesia infiltrated: A cyber attacker infiltrated Indonesia's national data centre, disrupting immigration checks at airports and demanding a USD8 million ($12 million) ransom that the government does not plan to pay, the Associated Press reported, citing the country's communications minister. The attack, using a new variant of Lockbit 3.0 ransomware, caused significant delays at immigration desks last week, though automated passport machines are now operational, the communications ministry said. The attackers have held data hostage and offered a key for access in return for the ransom, according to PT Telkom Indonesia’s director of network & IT solutions, Herlan Wijanarko. “We have tried our best to carry out recovery while the (National Cyber and Crypto Agency) is currently carrying out forensics,” Communication Minister Budi Arie Setiadi told journalists, adding that the government would not pay the ransom. (Associated Press)

7.

Flying low: US prosecutors are recommending criminal charges against Boeing for violating a settlement related to two fatal 737 MAX crashes, Reuters reported citing unnamed sources. The Justice Department must decide by July 7 whether to prosecute. The recommendation follows a determination in May that Boeing breached a 2021 agreement that had shielded Boeing from charges of conspiracy to commit fraud, provided it overhauled compliance practices and submitted regular reports. Boeing maintains it honoured the settlement terms. A criminal prosecution could jeopardise Boeing's US government contracts. Discussions are ongoing, and no final decisions have been made, according to the sources. Other potential resolutions include extending the settlement or imposing stricter terms, possibly involving a third-party compliance monitor, Reuters reported. (Reuters)

8.

Battery blaze: A fire caused by multiple lithium battery explosions at a factory in Hwaseong, South Korea, killed 22 workers, including 18 Chinese nationals, on Monday. The blaze erupted in a warehouse of the manufacturing company Aricell, which contained 35,000 battery cells, and was extinguished in about six hours. Victims likely succumbed to toxic gases within seconds, fire officials told Reuters. Most of the foreign victims were temporary hires unfamiliar with the building layout, the officers said. Established in 2020, Aricell manufactures lithium batteries for sensors and communication devices. Shares in the company's owner, S-Connect, dropped by 22.5% following the incident. South Korea, a key player in lithium-ion battery production for electric vehicles, introduced legislation two years ago to punish executives of companies involved in fatal industrial accidents with potentially jail sentences. (Reuters)