Tag Archives: EU

Ukraine pledges sweeping personnel changes as allies jostle over tanks

  • Zelenskiy promises changes amid corruption scandal
  • Poland says it is planning to send Leopard tanks to Ukraine
  • Germany hints at tank export approval as allies apply pressure

KYIV, Jan 24 (Reuters) – Ukrainian President Volodymyr Zelenskiy said personnel changes were being carried out at senior and lower levels, following the most high-profile graft allegations since Russia’s invasion that threaten to dampen Western enthusiasm for the Kyiv government.

Reports of a fresh scandal in Ukraine, which has a long history of shaky governance, come as European countries bicker over giving Kyiv German-made Leopard 2 tanks – the workhorse of armies across Europe that Ukraine says it needs to break through Russian lines and recapture territory.

“There are already personnel decisions – some today, some tomorrow – regarding officials at various levels in ministries and other central government structures, as well as in the regions and in law enforcement,” Zelenskiy said in his nightly video address on Monday.

Zelenskiy, who did not identify the officials to be replaced, said his plans included toughening oversight on travelling abroad for official assignments.

Several Ukrainian media outlets have reported that cabinet ministers and senior officials could be sacked imminently.

On Sunday, anti-corruption police said they had detained the deputy infrastructure minister on suspicion of receiving a $400,000 kickback over the import of generators last September, an allegation the minister denies.

A newspaper investigation accused the Defence Ministry of overpaying suppliers for soldiers’ food. The supplier has said it made a technical mistake and no money had changed hands.

David Arakhamia, head of Zelenskiy’s Servant of the People party, said officials should “focus on the war, help victims, cut bureaucracy and stop dubious business”.

“We’re definitely going to be jailing actively this spring. If the humane approach doesn’t work, we’ll do it in line with martial law,” he said.

‘SPRING WILL BE DECISIVE’

On the battlefront, front lines have been largely frozen in place for two months despite heavy losses on both sides.

Ukraine says Western tanks would give its ground troops the firepower to break Russian defensive lines and resume their advance. But Western allies have been unable to reach an agreement on arming Kyiv with tanks, wary of moves that could cause Moscow to escalate.

Berlin, which must approve Leopard re-exports, has said it is willing to act quickly if there is a consensus among allies.

Polish Prime Minister Mateusz Morawiecki, whose country borders Ukraine, said Warsaw would seek permission to send Leopard tanks to Kyiv and was trying to get others on board.

Germany is not blocking the re-export of Leopard tanks to Ukraine, the European Union’s top diplomat said on Monday.

American lawmakers have pressed their government to export M1 Abrams battle tanks to Ukraine, saying even a symbolic number would help push European allies to do the same.

Britain has said it will supply 14 Challenger 2 tanks. French President Emmanuel Macron said he did not rule out the possibility of sending Leclerc tanks.

Moscow sought to apply its own pressure.

“All countries which take part, directly or indirectly, in pumping weapons into Ukraine and in raising its technological level bear responsibility” for continuing the conflict, Kremlin spokesperson Dmitry Peskov said.

Ukraine and Russia are both believed to be planning spring offensives to break the deadlock in what has become a war of attrition in eastern and southern Ukraine.

“If the major Russian offensive planned for this time fails, it will be the ruin of Russia and Putin,” Vadym Skibitsky, deputy head of Ukraine’s military intelligence, said in an interview with news site Delfi.

One person was killed and two injured in Russian shelling of a residential district of the town of Chasiv Yar on Monday that damaged at least nine high-rise buildings, Pavlo Kyrylenko, governor of Donetsk region, said on Telegram.

“The Russians are deliberately terrorizing and killing the civilian population. And they will pay dearly for this,” he said.

Reuters could not independently verify battlefield reports.

‘ACTING AGAINST THE WEST’

In the 11 months since invading Ukraine, Russia has shifted its rhetoric on the war from an operation to “denazify” and “demilitarise” its neighbour to casting it as defence against an aggressive West. Kyiv and its Western allies call it an unprovoked act of aggression.

On Monday, the new general in charge of Russia’s military operations in Ukraine warned that modern Russia had never seen such “intensity of military hostilities”, forcing it to carry out offensive operations.

“Our country and its armed forces are today acting against the entire collective West,” Chief of the General Staff Valery Gerasimov told the news website Argumenty i Fakty.

Military reforms, announced mid-January, could be adjusted to respond to threats to Russia’s security, which include Sweden and Finland’s aspirations to join NATO and “the use of Ukraine as a tool for waging a hybrid war against our country,” he said.

Ukraine imposed sanctions on 22 Russians associated with the Russian Orthodox Church for what President Zelenskiy said was their support of genocide under the cloak of religion.

Reporting by Reuters bureaus; writing by Costas Pitas and Himani Sarkar; Editing by Stephen Coates

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Oil settles mixed after hitting 7-week high on strong China outlook

  • Brent, U.S. crude hit highest since early December
  • G7 seeks two price caps for Russian oil products
  • India’s crude imports hit 5-month high in December

NEW YORK, Jan 23 (Reuters) – Oil prices settled mixed on Monday, retreating as investors cashed in on a jump to a seven-week high on optimism about a possible recovery in demand of top oil importer China as the economy recovers this year from pandemic lockdowns.

Brent crude settled 56 cents higher at $88.19 a barrel. The session high was $89.09 a barrel, the highest since Dec. 1. U.S. West Texas Intermediate (WTI) crude settled 2 cents lower at $81.62 a barrel, off the session high $82.64 a barrel, the highest since Dec. 5.

Prices pulled back at the end of the session as investors took profits, said Phil Flynn, analyst at Price Futures Group.

Still, the market wants to preserve long positions in case Chinese growth resumes, said Sukrit Vijayakar, director of Mumbai-based energy consultancy Trifecta.

Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing out that road traffic congestion in the country’s 15 key cities so far this month is up 22% from a year ago.

Crude oil prices in much of the world’s physical markets have started the year with a rally as China has shown signs of more buying and traders have worried that sanctions on Russia could tighten supply.

“While the (China) reopening itself will no doubt prove to be complicated, particularly over the holiday season, early indications suggest there has been a rise in activity, meaning the economy could perform better,” said OANDA analyst Craig Erlam.

Brent is expected to move back into a range between $90 and $100 as the oil market tightens, Erlam said.

Demand for products has lifted the oil market and refining margins, Flynn said. The 3-2-1 crack spread , a proxy for refining margins, rose to $42.18 per barrel on Monday, the highest since October.

The European Union and Group of Seven (G7) coalition will cap prices of Russian refined products from Feb. 5, in addition to the price cap on Russian crude in place since December and an EU embargo on imports of Russian crude by sea.

The G7 has agreed to delay a review of the level of the price cap on Russian oil to March, a month later than originally planned, to provide time to assess the impact of the oil products price cap.

In India, crude oil imports rose to a five-month high in December, government data showed on Monday, as refiners stocked up discounted Russian fuel amid a steady increase in consumption in the country.

Reporting by Stephanie Kelly in New York; additional reporting by Ron Bousso in London, Mohi Narayan in New Delhi and Sonali Paul in Melbourne
Editing by David Goodman, David Gregorio and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Stephanie Kelly

Thomson Reuters

A New-York-based correspondent covering the U.S. crude market and member of the energy team since 2018 covering the oil and fuel markets as well as federal policy around renewable fuels.

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Erdogan to Sweden: Don’t expect Turkish support for NATO bid after Stockholm protest

ANKARA, Jan 23 (Reuters) – Sweden should not expect Turkey’s support for its NATO membership after a protest near the Turkish embassy in Stockholm at the weekend including the burning of a copy of the Koran, President Tayyip Erdogan said on Monday.

Protests in Stockholm on Saturday against Turkey and against Sweden’s bid to join the North Atlantic Treaty Organization (NATO) have heightened tensions with Turkey, whose backing Sweden needs to gain entry to the military alliance.

“Those who allow such blasphemy in front of our embassy can no longer expect our support for their NATO membership,” Erdogan said in a speech after a Cabinet meeting.

“If you love members of terrorist organisations and enemies of Islam so much and protect them, then we advise you to seek their support for your countries’ security,” he said.

Swedish Foreign Minister Tobias Billstrom declined to immediately comment on Erdogan’s remarks, telling Reuters in a written statement he wanted to understand exactly what had been said.

“But Sweden will respect the agreement that exists between Sweden, Finland and Turkey regarding our NATO membership,” he added.

Sweden and Finland applied last year to join NATO following Russia’s invasion of Ukraine but all 30 member states must approve their bids. Ankara has previously said Sweden in particular must first take a clearer stance against what it sees as terrorists, mainly Kurdish militants and a group it blames for a 2016 coup attempt in Turkey.

U.S. State Department spokesperson Ned Price said Finland and Sweden are ready to join the alliance, but declined to comment on whether Washington thought Erdogan’s comments meant a definitive shutting of the door to them.

“Ultimately, this is a decision and consensus that Finland and Sweden are going to have to reach with Turkey,” Price said.

Price told reporters that burning books that are holy to many is a deeply disrespectful act, adding that the United States is cognizant that those who may be behind what took place in Sweden may be intentionally trying to weaken unity across the Atlantic and among Washington’s European allies.

“We have a saying in this country – something can be lawful but awful. I think in this case, what we’ve seen in the context of Sweden falls into that category,” Price said.

The Koran-burning was carried out by Rasmus Paludan, leader of Danish far-right political party Hard Line. Paludan, who also has Swedish citizenship, has staged a number of demonstrations in the past where he burned the Koran.

Several Arab countries including Saudi Arabia, Jordan and Kuwait denounced the event. Turkey had already summoned Sweden’s ambassador and cancelled a planned visit by the Swedish defence minister to Ankara.

Reporting by Ece Toksabay and Huseyin Hayatsever; Additional reporting by Niklas Pollard in Stockholm and Humeyra Pamuk in Washington; Editing by Hugh Lawson and Grant McCool

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EU imposes new Iran sanctions, won’t brand Guards ‘terrorists’ for now

BRUSSELS, Jan 23 (Reuters) – The European Union on Monday imposed sanctions on more than 30 Iranian officials and organisations, including units of the powerful Revolutionary Guards, blaming them for a “brutal” crackdown on protesters and other human rights abuses.

The United States and Britain have also issued new sanctions against Iran, reflecting a deterioration in the West’s already dire relations with Tehran in recent months.

Foreign ministers from the EU’s 27 member countries agreed the measures at a meeting in Brussels.

The sanctions targeted units and senior officials of the Islamic Revolutionary Guard Corps (IRGC) across Iran, including in Sunni-populated areas where the state crackdown has been intense, a list published in the EU’s Official Journal showed.

Some EU governments and the European Parliament have made clear they want the IRGC as a whole added to the bloc’s list of terrorist organisations. But the EU’s foreign policy chief, Josep Borrell, noted that could only happen if a court in an EU country determined the IRGC was guilty of terrorism.

“You cannot say ‘I consider you a terrorist because I don’t like you’,” he told reporters ahead of the Brussels talks.

The new sanctions were imposed on 18 people and 19 entities. Those targeted cannot travel to the EU and any assets they hold inside the EU can be frozen.

Relations between the EU and Tehran have spiralled downwards during stalled efforts to revive talks on its nuclear programme and as Iran has moved to detain several European nationals.

The bloc has also become increasingly critical of the continuing violent treatment of protesters in Iran, including executions, and the transfer of Iranian drones to Russia.

Sweden, which currently holds the EU’s rotating presidency, said the new sanctions targeted “those driving the repression.”

“The EU strongly condemns the brutal and disproportionate use of force by the Iranian authorities against peaceful protesters,” Sweden’s Foreign Minister Tobias Billstrom said in a Twitter post by the country’s EU diplomatic mission.

The IRGC was set up shortly after the 1979 Islamic Revolution to protect the Shi’ite clerical ruling system. It has an estimated 125,000-strong military with army, navy and air units, and commands the Basij religious militia often used in crackdowns.

“The Iranian regime, the Revolutionary Guards terrorise their own population day after day,” German Foreign Minister Annalena Baerbock told Monday’s meeting.

The day before the Brussels meeting, over a thousand people took to the streets of the city to protest against the detention in Iran of Belgian aid worker Olivier Vandecasteele.

Iran earlier warned the EU against designating the IRGC as a terrorist entity.

Reporting by Andrew Gray, Bart Meijer Philip Blenkinsop and Parisa Hafezi, Writing by Ingrid Melander and Gabriela Baczynska, Editing by Peter Graff, Timothy Heritage and John Stonestreet

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Wagner chief writes to White House over new sanctions

Jan 21 (Reuters) – The head of the Russian private military contractor Wagner published on Saturday a short letter to the White House asking what crime his company was accused of, after Washington announced new sanctions on the group.

White House national security spokesperson John Kirby said on Friday that Wagner, which has been supporting Russian forces in their invasion of Ukraine and claiming credit for battlefield advances, would be designated a significant Transnational Criminal Organization.

A letter in English addressed to Kirby and posted on the Telegram channel of Wagner founder Yevgeny Prigozhin’s press service read: “Dear Mr Kirby, Could you please clarify what crime was committed by PMC Wagner?”

Kirby called Wagner “a criminal organization that is committing widespread atrocities and human rights abuses”.

Last month, the White House said Wagner had taken delivery of an arms shipment from North Korea to help bolster Russian forces in Ukraine.

An interior view shows PMC Wagner Centre, which is a project implemented by the businessman and founder of the Wagner private military group Yevgeny Prigozhin, during the official opening of the office block in Saint Petersburg, Russia, November 4, 2022. REUTERS/Igor Russak/File Photo

North Korea’s Foreign Ministry called the report groundless and Prigozhin at the time denied taking such a delivery, calling the report “gossip and speculation”.

Washington had already imposed curbs on trade with Wagner in 2017 and again in December in an attempt to restrict its access to weaponry.

The European Union imposed its own sanctions in December 2021 on Wagner, which has been active in Syria, Libya, the Central African Republic, Sudan, Mozambique and Mali, as well as Ukraine.

Prigozhin has described Wagner as a fully independent force with its own aircraft, tanks, rockets and artillery.

He is wanted in the United States for interference in U.S. elections, something that he said in November he had done and would continue to do.

Writing by Kevin Liffey;
Editing by Helen Popper

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Russia’s Lavrov compares West’s approach to Russia with Hitler’s ‘Final Solution’

MOSCOW, Jan 18 (Reuters) – Russian Foreign Minister Sergei Lavrov drew a sharp rebuke from the White House on Wednesday for saying the United States had assembled a coalition of European countries to solve “the Russian question” in the same way that Adolf Hitler had sought a “final solution” to eradicate Europe’s Jews.

“How dare he compare anything to the Holocaust, anything. Let alone a war that they started,” White House national security spokesman John Kirby said.

Lavrov, who caused an international furore last year with remarks about Hitler, said Washington was using the same tactic as Napoleon and the Nazis in trying to subjugate Europe in order to destroy Russia.

Using Ukraine as a proxy, he said, “they are waging war against our country with the same task: the ‘final solution’ of the Russian question.”

“Just as Hitler wanted a ‘final solution’ to the Jewish question, now, if you read Western politicians … they clearly say Russia must suffer a strategic defeat.”

The ‘Final Solution’ was Hitler’s blueprint for the Holocaust, which led to the systematic murder of 6 million Jews, as well as members of other minorities.

Lavrov has caused outrage before with remarks about Hitler. Last May he said the Nazi leader had “Jewish blood”, drawing angry protests from Israel.

“It’s almost so absurd that it’s not worth responding to, other than the truly offensive manner in which he tried to cast us in terms of Hitler and the Holocaust,” Kirby told reporters at a briefing.

Reporting by Reuters, Katharine Jackson in Washington; Writing by Mark Trevelyan; Editing by Kevin Liffey and Nick Zieminski

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Exclusive: ECB union says staff losing faith in leadership over inflation, pay

  • 40% of ECB staff has low or no trust
  • Two-thirds say confidence is damaged
  • 63% worried about ECB’s ability to protect purchasing power

FRANKFURT, Jan 18 (Reuters) – (This Jan. 17 story has been corrected to restore the dropped words in paragraph 11)

European Central Bank staff are losing confidence in the institution’s leadership following the ECB’s failure to control inflation and a pay award that lagged the leap in prices, according to a survey by trade union IPSO.

The responses underline that even central banks, whose primary responsibility is fighting inflation, are not immune to staff dissatisfaction with the sharply rising cost of living.

The survey was organised in the context of a dispute between IPSO, which holds six out of nine seats on the ECB’s staff committee, and the central bank’s board over pay and remote-working arrangements.

An ECB spokesperson did not comment directly on IPSO’s findings when asked but pointed to a separate staff survey, run by the ECB itself last year, showing that 83% of nearly 3,000 respondents were proud to work for the ECB and 72% would recommend it.

Results of IPSO’s survey, which largely focused on pay and remote-working arrangements but also included questions about trust in the board, were sent to ECB staff on Tuesday in an email, seen by Reuters.

They showed two-thirds of roughly 1,600 respondents said their trust in Lagarde and the rest of the six-member ECB board had been damaged by recent developments such as high inflation and a pay increase that did not match the rise in prices.

Asked how much trust they had in Lagarde and the board when it comes to leading and managing the ECB, the central bank for the 20 countries that use the euro, just under half of respondents said “moderate” (34.3%) or “high” (14.6%).

But over 40% of respondents said they had “low” (28.6%) or “no” (12%) trust, while 10.5% could not say.

“This is a serious concern for our institution, as no one can correctly lead an organisation without the trust of its workforce,” the union said in its email.

INFLATION SURGE, PAY BATTLES

The survey was the first by IPSO to ask about trust in top management since Christine Lagarde took over as ECB President in late 2019.

A similar IPSO survey of ECB staff, taken just before her predecessor Mario Draghi stepped down, showed 54.5% of 735 respondents rated his presidency “very good” or “outstanding”, with support for his policy measures even higher.

Then, however, inflation in the euro zone had been low for a decade. Its recent surge to multi-decade highs in countries around the world has seen a revival in battles over pay between workers and the companies and institutions that employ them.

And a majority of respondents in the October 2019 survey also complained about a lack of transparency in recruitment and perceived favouritism under Draghi.

The most recent Bank of England staff survey, also conducted in 2019, showed 64% of respondents had “trust and confidence in the Bank’s leadership”.

A 2022 U.S. government survey of employees at departments and federal agencies found that 61% of respondents had “a high level of respect” for their organisation’s senior leaders – roughly stable compared to the previous two years.

The ECB spokesperson also pointed to internal surveys in 2020-21 that found roughly 80% of respondents were satisfied with health-and-safety measures taken by the ECB in response to the coronavirus pandemic.

The latest IPSO survey showed 63% of staff who responded were worried about the ECB’s ability to protect their purchasing power after being handed a pay increase of just 4% last year – or roughly half the rise in consumer prices.

The ECB has been criticised by politicians, bankers and academics for initially underestimating a surge in the cost of living and then making up for it with large and painful increases in borrowing costs.

Lagarde, who is not an economist and had not been a central banker before joining the ECB, colourfully defended her board at an event with staff last month.

“If it wasn’t for them I’d be a sad, lonely cowgirl lost somewhere in the Pampa of monetary policy,” Lagarde said, according to a recording of the Dec. 19 town hall seen by Reuters.

She and fellow board members have long worried about the risk of a potential “wage-price spiral”, where higher salaries feed into prices, which they argue would make it harder for the ECB to bring inflation back down to its 2% target.

But IPSO said that concern is misplaced and workers should not be made to bear the brunt of the current bout in inflation.

“The ECB might be preaching lower real wages, but this is not our stance as your staff union,” it wrote in its message to ECB employees.

Editing by Catherine Evans

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Vietnam president quits as Communist Party intensifies graft crackdown

  • President highest-profile casualty of graft crackdown
  • Phuc blamed for conduct of officials under him
  • Hundreds of officials hit by ‘blazing furnace’ campaign
  • Phuc’s downfall widely expected

HANOI, Jan 17 (Reuters) – Vietnam President Nguyen Xuan Phuc has resigned after the ruling Communist Party blamed him for “violations and wrongdoing” by officials under his control, the government said on Tuesday, in a major escalation of the country’s anti-graft campaign.

Phuc, a former prime minister widely credited with accelerating pro-business reforms, held the largely ceremonial post of president since 2021 and is the highest-ranking official targeted by the party’s sweeping corruption crackdown.

Vietnam has no paramount ruler and is officially led by four “pillars”: the party’s secretary, the president, prime minister and speaker of the house.

Phuc, 68, was ultimately responsible for offences committed by many officials, including two deputy prime ministers and three ministers, the government said.

“Fully being aware of his responsibilities before the party and people, he submitted an application to resign from his assigned positions, quit his job and retire,” it said in statement.

Phuc’s office could not immediately be reached for comment and it was not clear if a replacement has been chosen.

Vietnam has been rife with speculation he would be removed following January’s dismissal of two deputy prime ministers who served under him, as the party doubles down on a “blazing furnace” anti-corruption drive led by its powerful long-serving chief, Nguyen Phu Trong.

Last year, 539 party members were prosecuted or “disciplined” for corruption and “deliberate wrongdoings”, including ministers, top officials and diplomats, according to the party, while police investigated 453 corruption cases, up 50% from 2021.

Trong earlier this month said the party was “more determined” and “more effective and methodical” in its approach, and vowed to deliver results.

IMPACT UNCERTAIN

Opinions vary on the impact of the anti-graft drive on investment and policy.

Le Hong Hiep of the Vietnam Studies Programme at the Singapore’s ISEAS-Yusof Ishak Institute said the purge could pave the way for cleaner more capable leaders to rise.

“As long as the leadership reshuffles do not lead to radical policy changes, their impact on the economy will also be limited,” Hiep posted on his Facebook account.

However, Ha Hoang Hop, a senior visiting fellow at the same institute, said Phuc’s demise and uncertainty over the impact of the crackdown could unnerve investors.

“This could lead Vietnam to a time of instability that would worry foreign friends and investors,” he said.

Phuc’s resignation requires approval from the legislature, which sources on Monday said would hold a rare extraordinary meeting this week, adding to expectation that Phuc’s fate had been sealed.

Phuc, who was known in Vietnam for his friendly approach and love for the national soccer team, was once tipped as a future party General Secretary, the state’s most prestigious job.

As prime minister from 2016 to 2021, he oversaw an average 6% annual economic growth for Asia’s burgeoning manufacturing powerhouse and helped further a liberalisation drive that included trade deals with the European Union and Pacific powers.

Despite his downfall, the government on Tuesday praised his achievements, particularly his pandemic response.

“He has made great efforts in leading, directing and administering the COVID-19 epidemic prevention and control, achieving important results,” it said.

Editing by Kanupriya Kapoor and Martin Petty

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Shares slip as China data stokes economic slowdown fears

  • Euro STOXX 600 down 0.2%
  • China reports weak Q4 data
  • Asia shares slip 0.4%
  • Yen close to 7-month highs

LONDON/HONG KONG, Jan 17 (Reuters) – European shares paused their new year rally and Asian equities slipped after China reported weak fourth-quarter economic data on Tuesday, keeping investors on edge over the prospects of a global recession.

The Euro STOXX 600 (.STOXX) lost 0.2%, slipping from its nine-month high hit on Monday. Global equities have enjoyed a rally so far in 2022, spurred by hopes of a rebound in China’s economy and an easing of prices pressures in the United States and Europe.

But the Chinese data showed that the world’s second-biggest economy grew 2.9% in the fourth quarter of last year, beating expectations but underscoring the toll exacted by Beijing’s stringent “zero-COVID” policy.

China’s growth for 2022 of 3% was far below the official target of about 5.5%. Excluding a 2.2% expansion after COVID-19 first hit in 2020, it was the worst showing in nearly half a century.

Asia Pacific shares outside Japan (.MIAPJ0000PUS) widened losses in response, and were last down 0.4%. Shares in Hong Kong’s (.HSI) dropped 0.8% and China’s benchmark CSI300 Index (.CSI300) clawed back losses to close flat.

In Europe, China-exposed financials HSBC (HSBA.L) and Prudential (PRU.L) fell 1% and 0.4% respectively. Economy-sensitive consumer staples such as Unilever and Danone (DANO.PA) also fell more than 1% each.

Market players said investors were taking stock of how economies would expand as inflation peaks and central bank tightening of monetary policy slows, with the China data underscoring doubts over whether it could act as a spur.

“What will be the thing that reinvigorates growth?” said Gaël Combes, head of fundamental research at Unigestion. “China is probably unlikely to provide the lift is has provided in the past, like during the global financial crisis.”

Wall Street was set to open slightly lower after a public holiday on Monday, with E-mini futures for the S&P 500 down 0.3%.

BOJ UNDER PRESSURE

The dollar index bounced from a seven-month low of 101.77 made a day ago, holding at 102.30, while the Japanese yen stayed close to seven-month highs as investors held their breath for a potential policy shift at the Bank of Japan (BOJ).

The yen steadied around 128.51 on Tuesday after hitting a top of 127.22 per dollar on Monday, with traders braced for sharp moves when the Bank of Japan (BOJ) concludes a two-day meeting on Wednesday.

The BOJ is under pressure to change its interest rate policy as soon as Wednesday, after its attempt to buy itself breathing room backfired, emboldening bond investors to test its resolve.

Euro zone bond yields inched up from month lows hit late last week, but trading in bonds globally was cautious ahead of the result of the BOJ meeting.

Across the world, the R-word continues to loom large.

Two-thirds of private and public sector chief economists surveyed by the World Economic Forum in Davos expected a global recession this year, with some 18% considering it “extremely likely” – more than twice as many as in the previous survey conducted in September 2022.

As equities rallied this year, other riskier assets also gained. The No.1 cryptocurrency bitcoin has clocked a gain of about a quarter in January, leaping over 20% in the past week alone, putting in on course for its best month since October 2021. It was last trading flat at $21,208.

Spot gold was down 0.5% at $1909.23 per ounce.

Reporting by Tom Wilson in London and Kane Wu in Hong Kong; Editing by Gerry Doyle, Neil Fullick and Alex Richardson

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Microsoft faces EU antitrust warning over Activision deal – sources

BRUSSELS, Jan 16 (Reuters) – Microsoft (MSFT.O) is likely to receive an EU antitrust warning about its $69 billion bid for “Call of Duty” maker Activision Blizzard (ATVI.O), people familiar with the matter said, that could pose another challenge to completing the deal.

The European Commission is readying a charge sheet known as a statement of objections setting out its concerns about the deal which will be sent to Microsoft in the coming weeks, the people said.

The EU antitrust watchdog, which has set an April 11 deadline for its decision on the deal, declined to comment.

Microsoft said: “We’re continuing to work with the European Commission to address any marketplace concerns. Our goal is to bring more games to more people, and this deal will further that goal.”

The U.S. software giant and Xbox maker announced the acquisition in January last year to help it compete better with leaders Tencent (0700.HK) and Sony (6758.T).

U.S. and UK regulators, however, have voiced concerns, with the U.S. Federal Trade Commission going to court to block the deal.

Microsoft was expected to offer remedies to EU regulators in an attempt to avert a statement of charge and shorten the regulatory process, other sources familiar with the matter told Reuters in November.

The EU competition enforcer, however, is not expected to be open to remedies without first sending out its charge sheet, although there are ongoing informal discussions on concessions, the people said.

Microsoft last month reached a 10-year deal with Nintendo (7974.T) to make “Call of Duty” available on Nintendo consoles, saying it was open to a similar agreement with Sony, which is critical of the acquisition.

The deal has received the green light without conditions in Brazil, Saudi Arabia and Serbia.

Reporting by Foo Yun Chee
Editing by Mark Potter

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