Trump and Biden lock in two debates
Plus: US inflation eases to 3.4%; Slovak leader in critical condition after assignation attempt; Israel’s UN ambassador calls body a ‘terror organisation.’
Good morning. Here's what happened overnight and what you need to know today.
1.
Date set: President Joe Biden and Donald Trump have agreed to two presidential debates ahead of the US federal election in November. The first debate will be aired by CNN on 27 June, with the second to be broadcast by ABC on 10 September. A two-and-fro spat had been escalating between the two candidates over the debates, with Biden’s campaign calling on Trump to commit to debates hosted by news organisations. Biden only recently said he’d be happy to debate Trump, but upped his challenges to the former President on Wednesday, stating: “Donald Trump lost two debates to me in 2020. Since then he hasn’t shown up for a debate. Now he’s acting like he wants to debate me again.” Trump accepted the invitations via a post on Truth Social, saying: “I am Ready and Willing to Debate Crooked Joe at the two proposed times in June and September.” (CNN)
2.
Rates watch: US inflation fell to 3.4% in April, in line with economists’ expectations and reversing a rise in consumer prices the month prior. Data from the US Bureau of Labor Statistics saw overall CPI climb 0.3% from the month prior and 3.4% from a year ago, with housing and fuel accounting for 70% of the increase. The core consumer price index, which excludes food and energy costs, increased 0.3% from March, advancing 3.6% from one year ago, the lowest increase since April 2021. Cooling inflation data suggests the Federal Reserve’s efforts to keep interest rates higher are working to help inflation resume a downward trend. However, it is likely that Fed officials will want to see further evidence that inflation is inching toward the central bank’s 2% target before making any cuts. On the back of the inflation data, investors increased their bets on the Fed cutting rates this year, sending Wall Street equities indices to record highs during trading on Wednesday. (US Bureau of Labor Statistics)(Bloomberg)
3.
Assassination attempt: Slovakia’s Prime Minister, Robert Fico, has been hospitalised after being shot in the town of Handlova following a government meeting. According to his official Facebook account, Fico’s condition is life-threatening and he is currently receiving emergency treatment. Local media is providing conflicting reports about the nature of the PM’s injuries. The shooting occurred in the Slovak town as Fico was greeting people after a government meeting. Witnesses and broadcaster TA3 reported that four shots were fired, with one hitting Fico in the abdomen. A man was detained by police at the scene. As head of a populist-nationalist coalition, Fico won a general election in the country last September, and has since faced criticism for his use of pro-Russian comments and pushing to extend state control over the media. (Reuters)(BBC)
4.
Israel-Hamas war: Israel’s ambassador to the UN has accused the body of being a “terror organisation.” In an interview with Israel’s Army Radio on Wednesday, ambassador Gilad Erdan said that the UN has “turned into a collaborator with Hamas […] maybe even more than that — a terror organisation unto itself.” He furthered that the UN co-operates and provides cover for Hamas, and that the Secretary General, António Guterres, is quick to criticise Israel. Tensions between Israel and the UN are rapidly deteriorating, with the Guterres condemning attacks on aid workers and calling for immediate ceasefires in Gaza as it becomes a “graveyard” for children. The East Jerusalem headquarters of UNRWA, a Palestinian refugee agency has been hit by two arson attacks in the past week. Yesterday, the IDF released footage it claims shows gunmen operating at a UN facility in the city of Rafah. (Financial Times)
5.
Roaring Kitty: Shares in GameStop and AMC slumped on Wednesday, after a two-day rally driven by the return of Keith Gill (‘Roaring Kitty’) had pumped the meme stocks over the previous sessions. By around midday in New York, AMC had fallen 25% after having jumped 135% over the past two sessions, while GameStop plummeted almost 30%, losing almost half of its gains since Monday. CEO of retail trading platform Robinhood, Vlad Tenev, said the app hit USD5 billion ($7.48 billion) in equities trading volume on Tuesday, among the highest in the past year. AMC and GameStop were among the top 10 securities bought by retail investors on Tuesday, and trading in GameStop was halted for volatility three times in the first 20 minutes of the session. (Reuters)
6.
Licence to drill: PT Vale Indonesia has been granted an extension of its special mining business permit by the Government of Indonesia, allowing the company to continue operations until December 28, 2035. The extension is related to a deal under which the state-owned holding company, Mining Industry Indonesia, will buy an additional 14% stake in Vale Indonesia from Vale SA and Sumitomo Metal Mining Co. The deal will increase the Indonesian government’s stake in the company to 34%, making it the nickel-miner's largest shareholder. The news comes as talks progress between Stellantis, Huayou Cobalt, and Vale to invest in a nickel smelter in Indonesia. According to sources cited by the Financial Times, the owner of Peugeot, Fiat and Jeep brand, Stellantis, is in talks with Vale to invest in a high-press acid leaching plant which would convert low-grade nickel ore to battery-grade metal. Huayou, which is a leading producer of nickel at cobalt, is set to hold a stake in the project. (PT Vale Indonesia press release)(Financial Times)
7.
Property crisis: China is weighing up plans for local governments to purchase millions of unsold homes in efforts to save the country’s struggling property market. China’s home sales, which are currently the biggest drag on the Chinese economy, dropped around 47% in the first quarter of 2024, and unsold property inventory is sitting at an eight-year high. According to sources cited by Bloomberg, the State Council is seeking feedback from several provinces and government entities on the plan, which would significantly outsize previous pilot programs to clear excess housing with state funding. Sources explain that local state-owned companies would be asked to buy unsold homes from struggling developers at large discounts, before many of the homes are then converted into affordable housing. (Bloomberg)
8.
Sign on delivery: Owner of the UK’s Royal Mail, International Distributions Services, is set to accept an upped offer of £3.5 billion from Czech billionaire Daniel Kretinsky to take over the struggling postal service. IDS’ board has indicated that it is likely to accept the 370 pence per share offer, after rebuffing Kretinsky’s previous bid of 320 per share. The service is fighting to survive a decline in letter writing and the e-commerce-driven increase of parcel delivery services. The billionaire has been building his stake in the mail service over the past few years, and now owns over 27%. While Kretinsky’s EP Group has agreed undertaking to “protect key public interest factors” and recognise Royal Mail as a part of “national infrastructure,” the bid could face opposition from lawmakers who have voiced concerns about the billionaire’s already large stake. The deadline to make the bid official - imposed by UK takeover rules - has been extended to May 29. (Wall Street Journal)