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Government debt hit as traders weigh prospect of further Russia sanctions

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US and eurozone authorities debt offered off on Tuesday as merchants weighed the prospect of stronger sanctions in opposition to Russia and feedback from a prime policymaker on the Federal Reserve that signalled that the central financial institution would transfer extra aggressively to curb inflation.

The yield on the 10-year US Treasury be aware, which strikes inversely to its value and is a benchmark for borrowing prices worldwide, climbed 0.16 proportion factors to 2.56 per cent, its highest since Could 2019. The yield on the policy-sensitive two-year be aware jumped 0.09 proportion factors to 2.52 per cent.

The sell-off within the US was exacerbated by feedback from Lael Brainard, Federal Reserve governor, who on Tuesday mentioned she anticipated the central financial institution to start a “fast” discount of its stability sheet to tighten coverage.

Germany’s 10-year Bund added 0.09 proportion factors to 0.61 per cent, and Italy’s equal bond yield rose 0.19 proportion factors to 2.27 per cent. The UK’s 10-year gilt yield added 0.11 proportion factors to 1.66 per cent.

Brussels mentioned it was able to launch a fifth bundle of sanctions on Russia that would come with a ban on coal imports from the nation. Restrictions on oil imports are being thought of, though not anticipated to be included on this week’s bundle.

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On Monday, the US and France had referred to as for a major escalation of punitive measures in opposition to Russia, following experiences of atrocities by its forces in Ukraine. Joe Biden, US president, mentioned he would “proceed so as to add extra sanctions” on Russia and proposed a trial to evaluate for attainable battle crimes.

Coal futures for April had been up greater than 12 per cent by late afternoon in London on Tuesday at $295 a tonne. Oil costs dipped, with Brent crude, the worldwide benchmark, 0.1 per cent decrease at $107.38 a barrel.

Altaf Kassam, Emea head of funding technique and analysis at State Avenue World Advisors, attributed the sell-off in authorities debt on Tuesday to a mix of the Fed’s rising hawkishness, elevated inflation and the rising chance of a drawn-out battle in Ukraine.

Marine Le Pen’s emergence as a critical contender in opposition to Emmanuel Macron in France’s presidential elections had additionally unsettled traders, he mentioned. “There’s a sense that the race there’s a lot tighter now . . . French political threat is coming to the fore.”

“None of those components are good for fairness markets,” Kassam added, “however they’re worse for bonds.”

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Provide-chain disruptions sparked by Russia’s invasion of Ukraine have added to considerations about persistently excessive ranges of world inflation.

Information launched on Tuesday confirmed that rising costs for vitality and meals pushed inflation to a 30-year excessive in February throughout the OECD group of wealthy nations. The annual price of client costs throughout the 38 member nations superior 7.7 per cent, up from 1.7 per cent a 12 months earlier than.

In fairness markets, the US’s benchmark S&P 500 fell 0.7 per cent, whereas the technology-heavy Nasdaq Composite dropped 2 per cent, greater than reversing positive aspects within the earlier session. Europe’s Stoxx 600 index closed 0.2 per cent increased, whereas Germany’s Dax slid 0.6 per cent.

Tancredi Cordero, founding father of Kuros Associates, mentioned the German financial system “particularly will see its common enter prices, in the case of vitality and commodities, rising significantly, which is able to dent working margins of most home corporations”.

“I don’t assume there can be a recession [in Germany], it’s too sturdy an financial system,” he added. “However within the brief time period, Germany can be diminished when it comes to publicity by institutional traders.”

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Elsewhere, Japan’s Nikkei 225 inventory index closed 0.2 per cent increased. Markets in China and Hong Kong had been closed on Tuesday for a public vacation.

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Judge pauses deadlines in Trump classified documents case over immunity questions

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Judge pauses deadlines in Trump classified documents case over immunity questions

Former U.S. President Donald Trump speaks during a rally at Greenbrier Farms on June 28 in Chesapeake, Va. The judge in the classified documents case against him has paused some deadlines.

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The federal judge overseeing the classified documents case against former President Donald Trump has paused a few deadlines after Trump’s legal team requested a review of the U.S. Supreme Court’s ruling on presidential immunity.

On Friday, Trump’s legal team presented a filing to the court that said this week’s ruling from the nation’s high court means he has blanket immunity from prosecution for his “official acts.” As part of an effort to have the case dismissed, attorneys for the former president asked Judge Aileen Cannon to rule whether or not the conduct involved was official.

Trump’s legal team had also asked to argue the immunity issue before Cannon between now and early September, which would have effectively delayed all aspects of the case for at least two months.

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Cannon’s order issued Saturday does not give a date for any discussion of the immunity issue to be held, but does allow for a short pause related to two deadlines for Trump’s lawyers and one deadline for prosecutors. The order gives federal prosecutors until July 18 to respond to Trump’s request for an extended delay. Trump’s legal team will then be due to reply to the prosecution on July 21.

Trump has argued that his removal of classified documents from the White House and then relocating them to his Florida resort home at Mar-a-Lago constituted an official act — and that the Supreme Court’s ruling should translate to charges brought by Special Counsel Jack Smith being dropped.

In Friday’s court filing, attorneys for Trump also pointed to Justice Clarence Thomas’ concurring opinion in the immunity decision, which questioned Smith’s appointment and authority in the classified documents case. Trump’s team also has sought to have the case dismissed on those grounds, arguing that Smith’s appointment is unconstitutional.

Smith has said the Supreme Court’s decision does not apply to the classified documents case because the documents were taken as Trump was leaving office — and that the former president obstructed FBI investigators from recovering them from Mar-a-Lago once he was no longer president.

Cannon has yet to set a date for a trial in the case. The Trump appointee has been criticized for indefinitely suspending the start date for the trial after announcing she needed more time to examine pretrial motions from the former president’s legal team requesting that the case be dismissed.

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Marine Le Pen’s party in talks to join Viktor Orbán’s group in European parliament

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Marine Le Pen’s party in talks to join Viktor Orbán’s group in European parliament

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France’s Rassemblement National is in talks to join a new group with Hungary’s Viktor Orbán in the European parliament as far-right parties are jostling to convert their votes into power.

The RN, which is forecast to win the most seats in Sunday’s French legislative elections, will decide whether to ally with the Patriots for Europe group on Monday, three people familiar with the situation told the Financial Times.

Orbán’s Patriots group on Saturday gained its seventh member party, meeting the threshold to form an official faction under the EU parliament’s rules.

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If the RN joins with its 30 MEPs, the Patriots are likely to overtake the right-wing European Conservatives and Reformists (ECR) to become the third-largest group in parliament.

Vox, the Spanish hard-right party that counts six MEPs, quit ECR for the Patriots on Friday. The Freedom party of Geert Wilders in the Netherlands and the Danish People’s party, which have seven MEPs between them, also said they would join the Patriots.

The ECR, dominated by Italian PM Giorgia Meloni’s Brothers of Italy party, relegated the Renew group built around Emmanuel Macron’s centrists into fourth position last month, but has now dropped to 78 members. Renew has 76 members.

But the proliferation of right-wing groups also means their dreams of a super-merger that would wield significant power in the EU assembly appear to be over.

“Anything that furthers the interests of Patriots in the EU parliament is good for us. Orbán is a fine politician who has the skills to operate at the EU level,” said one RN official.

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Zoltán Kóvacs, Orbán’s spokesman, told journalists to “stay alert in the next few days”.

Alternative for Germany leader Alice Weidel, whose MEPs were expelled from the outgoing Identity and Democracy group dominated by the RN, told the FT last week she was also seeking to form a group — potentially based on the remains of ID.

But it remains unclear whether the AfD will manage to secure MEPs from enough countries, given that four parties have now left ID for the Patriots.

Russia is the main dividing line between the Patriots and AfD on the one hand, and the ECR on the other. Meloni is a strong defender of Ukraine, while Orbán, Le Pen and Weidel have traditionally held more pro-Moscow views.

The Hungarian leader met Russian President Vladimir Putin in Moscow on Friday, causing outcry among EU leaders who said he did not represent them, just after he made a surprise visit to Kyiv on Monday.

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On Wednesday the Russian foreign ministry posted on social media what appeared to be a congratulatory message for the RN, featuring a photo of Le Pen celebrating her first-round victory.

“The people of France are seeking a sovereign foreign policy that serves their national interests and a break from the dictate of Washington and Brussels,” said the post. 

Le Pen, who has long tried to counter criticism that she is too pro-Russia, criticised the post on TF1 news on Thursday. “I absolutely do not feel responsible for Russian provocations towards France,” she said, adding it was “a form of interference”.  

However, Orbán said earlier this week he was confident the Patriots group would grow “faster than anyone thinks now” after the second round of the French elections.

“You will see . . . those who promised to join and create a pan-European faction, the third largest, then the second largest. Later we will attempt to be the largest but that won’t be this year.”

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He will combine his group’s power in parliament with his country having just taken the six-month rotating presidency of the bloc, which allows his ministers to set the agenda of meetings.

The centre-right European People’s party is the largest in the 720-strong parliament with 188 members, followed by the centre-left Socialists and Democrats, with 136. Party size dictates how many coveted positions such as committee chairs and vice-presidents they get. 

However, MEPs still vote on the positions, and the pro-European majority, including Renew, the Greens and other parties, operates a “cordon sanitaire” to reject any far-right candidates. They also voted to divvy up committee chairmanships based on group size on July 4, before the Patriots are constituted.  

The ECR secured one committee chair and one vice-president during the last term because they came from its more moderate parties.

“No one beyond the cordon sanitaire can chair a committee,” senior Socialist MEP Alex Agius Saliba told the FT. 

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But János Bóka, Hungary’s Europe minister, told journalists that there would be “an institutionally and politically strengthened right in the European parliament and in an ideal world, this should be reflected in the distribution of positions”.

Video: Why the far right is surging in Europe | FT Film
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Judge Aileen Cannon grants Trump's request to pause some deadlines in classified documents case amid immunity questions

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Judge Aileen Cannon grants Trump's request to pause some deadlines in classified documents case amid immunity questions

U.S. District Judge Aileen Cannon on Saturday granted former President Donald Trump’s request for further briefing on the issue of presidential immunity in the Mar-a-Lago classified documents case and delayed certain deadlines.

Cannon’s order marks the latest fallout from the Supreme Court’s presidential immunity decision on Monday, which ruled that Trump has immunity from prosecution for some conduct as president in the federal election interference case.

In the order, Cannon afforded special counsel Jack Smith the right, but not the obligation, to file a submission on the use of classified information at trial. At the same time, she paused two upcoming deadlines for Trump and his co-defendants.

Smith’s brief is now due on July 18, and a reply from Trump’s team is due on July 21.

Neither Trump’s lawyers nor the Department of Justice immediately responded to a request for comment Saturday afternoon.

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There is no trial date in sight in the classified documents case. Trump has pleaded not guilty to all charges.

The latest development comes after Trump’s attorneys on Friday asked Cannon to pause court proceedings and consider how the Supreme Court’s ruling affects the case. Trump’s team in February had also filed a motion to dismiss the indictment on immunity grounds.

Saturday’s order also makes Trump’s team busier — at least in the short term — as it attempts to minimize or outright dismiss two of the three other criminal cases pending against him.

Through an order earlier this week, Judge Juan Merchan, who presided over Trump’s criminal hush money trial earlier this year, stayed Trump’s July 11 sentencing hearing to allow for briefing on Trump’s motion to set aside the verdict in that trial.

Trump’s brief, which is expected to focus on evidence involving his official acts admitted during the trial to prove his knowledge and intent, is due on July 11. Manhattan District Attorney Alvin Bragg’s response is due on July 24.

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