Putin cuts Kursk update of 28 towns taken by Ukraine

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

1.

Ukraine counterattack: Russian President Vladimir Putin said Ukraine's incursion into the Kursk region was a strategic move to undermine Moscow’s eastern offensive and gain leverage for future peace talks. In a televised meeting with top security and defence officials, Putin said the Defence Ministry’s main task was to “drive out the enemy from our territories and, together with the Border Service, ensure reliable protection of the state border.” At the same meeting, Putin abruptly cut off acting regional governor Alexey Smirnov when he reported Ukrainian forces had seized control of 28 towns and villages in the Kursk border region. More than 120,000 had fled their homes and another 60,000 were waiting to be evacuated, Smirnov said. Russia is rushing reinforcements, including tanks, men and artillery to try to hold off Ukraine’s surprise cross-border incursion, the first time since World War II that a foreign military has taken control of part of its territory, Bloomberg reported. (Capital Brief) (Bloomberg)(Associated Press)

2.

Trump’s spotlight: Elon Musk will interview Republican presidential candidate Donald Trump on his social media platform X, previously Twitter, on Monday at 8pm Eastern Time (10:00 am Tuesday). Trump is looking for a chance to take back the political spotlight he’s lost since US President Joe Biden ended his re-election campaign. In the three weeks since Biden endorsed Vice President Kamala Harris, the Democratic campaign has won momentum and polls are showing Harris has leaped Trump in opinion polls in key states like Michigan, Pennsylvania and Wisconsin. The interview will be hosted live using Trump's restored X account, and comes as Trump returned to the platform after a year-long hiatus. There is some scepticism about the platform’s ability to handle the live broadcast, given similar events, including Ron DeSanti’s presidential campaign launch last year, have been plagued by technical issues. Trump appeared to be paying X to promote the interview, with the hashtag #TrumpOnX promoted at the top of the platform’s Trending section with a promotion disclaimer, The New York Times reported. (Reuters)(The New York Times)

3.

Meta (U)Music: The world’s largest music company, Universal Music Group (UMG), signed a new global licensing deal with Meta Platforms, allowing its music to be used on WhatsApp. The expanded multiyear agreement also covers Meta's other platforms, including Facebook, Instagram, Messenger, Horizon and Threads, the companies said in a joint statement.The deal, whose value was not disclosed, builds on a 2017 agreement that facilitated the use of UMG's music on Facebook’s platforms. It provides additional ways for UMG artists including Taylor Swift, Adele and Elton John, to earn revenue from their music, according to the statement.“The new agreement reflects the two companies’ shared commitment to protecting human creators and artistry, including ensuring that artists and songwriters are compensated fairly,” the statement says. The companies will work to address unauthorised AI-generated content “that could affect artists and songwriters.”The deal follows UMG’s recent settlement with TikTok, which restored its artists' music on the platform after disputes over royalties, The Wall Street Journal reported. (Joint statement)(Capital Brief)

4.

Power talks: Senior US and Chinese economic officials are set to meet in Shanghai this week in the first sit-down since China’s economic priorities were outlined at a recent Communist Party conference. The Financial Working Group talks on 15-16 August will cover macroeconomic stability, IMF governance and capital markets, Bloomberg reported citing a US Treasury spokesperson. The discussions will also include the PBOC’s swap arrangements and the yuan. The US delegation includes officials from the Treasury Department, the Federal Reserve and the SEC. Despite trade tensions and no plans for any new US-China arrangements, the talks are part of an effort by the Biden administration to maintain communication channels open with its key geopolitical rival. They follow ongoing high-level interactions between US Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng.(Bloomberg)

5.

Synopsys scrutiny: The UK’s competition watchdog is investigating whether chip design software marker Synopsys’ planed USD35 billion ($53 billion) acquisition of American software maker Ansys could harm competition in Britain. The Competition and Markets Authority (CMA) is yet to initiate a formal investigation, it said in statement. In January, Synopsys said it planned to acquire Ansys in a USD35 billion cash-and-stock deal. The deal would broaden Synopsys' presence in simulation software used by designers of microchips, automobiles, and aircraft. Synopsys is currently one of two major companies providing software for chip makers to design and test circuitry before production. Analysts have raised concerns about potential regulatory issues due to the consolidation in the business software sector, Reuters reported. In May, Chinese regulators also said they were looking into the Synopsys/Ansys deal. The CMA will decide whether to conduct a phase 1 investigation or clear the deal based on its findings at a later date. (Reuters)(CMA statement)

6.

Athens burns: Greece's worst wildfire of the year engulfed Athens' suburbs on Monday, forcing hundreds to evacuate and severely impacting infrastructure, Reuters reported. The blaze, which began near the village of Varnavas, 35 kilometres north of the Greek capital, has scorched trees, homes and vehicles, with smoke disrupting major roads. Over 700 firefighters backed by volunteers, 199 fire engines and 35 waterbombing aircraft are being deployed, Reuters reported. Aid was expected from European Union neighbours, including France, Italy and the Czech Republic. The fire, driven by strong winds, has reached within 14 km of central Athens, prompting evacuations in 30 areas and power outages. Greece is enduring its hottest summer on record and will remain on high fire alert through Thursday, with temperatures forecast to reach up to 40°C and continued strong winds. No fatalities have been reported, but several individuals have been treated for smoke inhalation and burns.(Capital Brief)(Reuters)

7.

Gaza conflict: Israeli forces pressed on with strikes near the southern Gaza city of Khan Younis on Monday, killing at least 18 people and wounding several more, Reuters reported citing Palestinian medics. The strikes, which Israel says are targeting Hamas militants, also struck Gaza City and Rafah, resulting in additional casualties. A new round of talks to reach a cease-fire deal between Israel and Hamas is scheduled for Thursday with help of mediators from the US, Egypt and Qatar. But Hamas has expressed scepticism, accusing Israel of using the negotiations as a cover for continuing military aggression. Two Hamas sources told Reuters the group was convinced the main purpose of a new round of talks is to deter retaliation from Iran and Hezbollah for the assassination of the groups’ leaders. Instead, Hamas wants a ceasefire plan based on the deal the group agreed to in early July. Meanwhile, the US shored up naval and air forces in the Middle East to help fend off any major attack from Iran or Lebanon’s Hezbollah. (Associated Press)(Reuters)(Bloomberg)

8.

Riley woes: Shares in US financial services company B Riley Financial plummeted 58% after it disclosed new write-downs amid a widening US investigation into its affairs. The SEC is probing whether the Los Angeles-based company misrepresented the risks associated with its assets and is examining interactions between founder Bryant Riley and Brian Kahn, former CEO of Franchise Group, which is one of B Riley larger investment holdings, according to Bloomberg. The investigation also includes potential improper trading and the movement between companies of receivables that might be doubtful, Bloomberg said. New Jersey prosecutors are conducting a separate federal criminal inquiry into the 2020 collapse of Prophecy Asset Management, whee Khan handled most of its assets. On Monday, B Riley suspended its dividend and flagged a non-cash write-down of USD330 million ($500 million) to USD370 million related to its stake in Franchise Group. Shares fell to as little as USD7.08 each, down from USD16.95 a day earlier. (Bloomberg)