Ukraine cities, children's hospital hit in Russian missile blitz

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

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1.

Russia strikes: Russia launched multiple deadly missile strikes across Ukrainian cities in broad daylight on Monday morning, killing at least 36 civilians and damaging critical infrastructure, including Kyiv's main children's hospital. The daylight attack left parents holding babies, dazed and sobbing outside the hospital, Reuters reported. Ukrainian air defences intercepted 30 of the 38 missiles, yet significant damage occurred in several cities, the news agency said. Kyiv's emergency services reported 21 fatalities and 65 injuries from the main missile volley and another strike two hours later. In Kryvyi Rih emergency services confirmed 11 deaths and 47 injuries, while in Pokrovsk, the regional governor reported three fatalities after missiles struck an industrial site. One person also died in Dnipro, officials said. President Volodymyr Zelenskiy vowed retaliation and urged Western allies to give a strong response as he requested an emergency meeting of the United Nations Security Council. "We will retaliate against these people, we will deliver a powerful response from our side to Russia, for sure. The question to our partners is: can they respond?" Zelenskiy said. (Reuters)

2.

CO2 catchers: Sydney startup Fugu, co-founded by ex-Sun Cable duo Mac Thompson and Luke Marshall, secured $1 million in seed funding to develop their carbon capture technology. Backed by Investible, Jelix Ventures, Electrifi Ventures, and London-based Counteract, the five-person team is building "CO2-sucking machines" that extract carbon dioxide from the air using rudimentary yet scalable designs, Marshall told Capital Brief. The funding will help refine their prototypes ahead of a Series A round within the next 12 to 18 months, he added. Fugu wants to deploy the machines globally, with plans to produce 2000 units annually by 2032, removing up to one billion metric tonnes of CO2 per year. Their first customer is a Sydney-based brewery and are exploring manufacturing opportunities in the US and Canada. (Capital Brief)

3.

Defiant Joe: US President Joe Biden issued a defiant challenge to high-ranking Democrats urging him to step aside, daring them to run against him if they believe he shouldn’t continue his campaign. Speaking on MSNBC’s Morning Joe, Biden dismissed calls for him to drop out, saying “If any of these guys don’t think I should run, run against me. Go ahead, announce for president. Challenge me at the convention.” A previously released letter from Biden to congressional Democrats stated he was “firmly committed to staying in the race.” Meanwhile, visitor logs reviewed by the New York Post showed a Parkinson’s disease expert visited the White House to meet with Biden’s personal doctor earlier this year, though the White House denies the 81-year-old president shows signs of the disease. Biden is set to host the 75th NATO summit in Washington and will hold a rare solo news conference, his first since November 2022, which will be closely watched. (New York Times)

4.

Beryl blow: Oil prices dropped about 1% to a one-week low, as traders monitored hurricane Beryl, which struck Texas early Monday, killing at least two people and disrupting US refineries and ports along the Gulf of Mexico. Brent crude fell to USD85.79 ($127.31) a barrel, while US West Texas Intermediate dropped to USD82.32. The now category 1 storm brought severe winds and heavy rain, causing over two million power outages and over 1,200 flight cancellations, according to The Wall Street Journal, which was celebrating its 135 birthday. Texas, a major oil producer, saw significant disruptions. Before reaching Texas, Beryl, the earliest recorded Category 5 hurricane on record, tore through the Caribbean, hitting Jamaica and Mexico’s Yucatan peninsula and resulting in at least 11 deaths. The storm is expected to weaken as it moves inland. (The Wall Street Journal)(Bloomberg)

5.

Gut bet: Eli Lilly & Co agreed to purchase US gut-drug maker Morphic Holding for approximately USD3.2 billion ($4.7 billion). The acquisition, funded by proceeds from Lilly’s pricey obesity drug Zepbound, involves a cash payment of USD57 per share, representing a 79% premium over Morphic’s last closing price. The deal is in line with Lilly CEO Dave Ricks' strategy to secure early-stage deals in immunology, a core focus area for the company. Morphic’s shares surged 75% after the announcement while Eli’s were slightly higher. The biotech firm is developing a selective oral small molecule inhibitor for treating inflammatory bowel disease, with its lead compound currently in three mid-stage clinical trials, two in ulcerative colitis and one in Crohn’s disease. (Bloomberg)

6.

EV deception: A group of Hyundai Motor dealers filed a lawsuit in a Chicago federal court accusing the company of inflating its electric vehicle sales data and penalising franchises that didn’t participate. Filed by Napleton Aurora Imports in Illinois and affiliated franchises, the lawsuit alleges Hyundai pressured them to misuse inventory codes to exaggerate sales figures, according to court documents cited by Reuters. Dealers who complied allegedly received incentives, while those who didn't faced penalties. The filing, citing fraud and violations of federal antitrust laws, claims the scheme deprived customers of choice and misled the public about demand for Hyundai's electric vehicles. In a statement, Hyundai denied condoning such practices and said it had launched an internal investigation. The dealers are seeking damages for lost sales, revenue, and profit. (Reuters)

7.

Diagnosis dollars: Private insurers pocketed USD50 billion ($74.23 billion) from the US-government funded Medicare Advantage program from potentially misdiagnosed diseases and many that no doctor treated, according to a Wall Street Journal analysis. The insurers have been making highly questionable diagnoses to secure higher payments from the government, including many that contradicted their doctors’ views and patients' actual medical records, the paper said. Gloria Lee, a Boston retiree, was misdiagnosed with diabetic cataracts by a nurse from her insurer, UnitedHealth, despite having no history of diabetes, potentially earning the insurer an extra USD2,700 annually. The Journal's investigation found that between 2018 and 2021, insurers added many dubious diagnoses, including severe illnesses like AIDS, for which patients received no subsequent care, and often without patients' or doctors' knowledge. In total, Medicare paid insurers about USD50 billion for diagnoses added just by insurers over the 3-year period. (Wall Street Journal)

8.

Macron puzzle: French President Emmanuel Macron rejected Prime Minister Gabriel Attal's resignation, urging him to stay on after chaotic election results left the country in political limbo. Voters divided the legislature among the left, centre, and far right, with no faction even close to the majority need to form government. Macron's strategy to clarify France's political landscape backfired just weeks before the Paris Olympics leaving Europe’s second largest economy at risk of paralysis. The French stock market had a volatile session, with the CAC 40 index opening lower, before rising by almost 1%, only to end the day down 0.63%. Bank stocks suffered losses and LVMH Moët Hennessy Louis Vuitton and Kering were among the worst performers. Macron appointed Attal seven months ago and wants to maintain some stability amid ongoing negotiations in the National Assembly. On the line are Europe’s economic stability and support for the war in Ukraine. The leftist coalition, which won the most seats, demands a chance to form a government, but Macron warned their proposed public spending could be disastrous. (Associated Press)(Bloomberg)