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strikeAug 21, 2026

Futures Rise On Opex Day As Yields Stabilize; Bitcoin Almost Tags $80,000

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Futures Rise On Opex Day As Yields Stabilize; Bitcoin Almost Tags $80,000 US futures rebound from Thursday's slump, and trade at session highs on.  As of 8:15am ET, S&P 500 futures were 0.4% higher with Nasdaq 100 contracts up 0.6%, while Bitcoin headed for its best week in more than three years, rising just shy of $80,000 before reversing. S&P 500 futures jerked higher and yields extended declines as oil edged lower shortly after 7am ET on this headline: *IRAN’S PRESIDENT SAYS BETTER TO END WAR TODAY WITH DIGNITY:ISNA, and while the market erroneously viewed this as a sign of de-escalation, he has made many similar comments in the past. Among Iranian officials, Pezeshkian has long been one of the most vocal proponents of ending the war with the US through diplomacy. In any case, tech is again making headlines, with Broadcom in talks with lenders to raise as much as $100 billion in an off balance sheet SPV financing deal that would benefit Anthropic and other companies. Pre-market, Mag 7 are all higher led by META (+0.9%) and TSLA (+1.1%). Today is the monthly option expiration day so expect low volume volatility around key pin levels. TSY yields are down 1-2bps across the curve although the 10Y remains just around 4.70%. The slide in the greenback is continuing, with the Bloomberg Dollar Spot Index down 0.3% and at a three-month low. Commodities are mixed: base metals ad ags are all lower, while gold is 1.6% higher this morning; oil is unchanged. Overall, the overnight news flow was mostly quite as investors are waiting for today’s Global PMI release. Today's US economic data calendar includes Bloomberg US economic survey for August, and S&P Global US manufacturing, services and composite PMIs. No Fed speakers are scheduled for the session In premarket trading, Mag 7 stocks are all higher (Tesla +1.3%, Meta +0.7%, Alphabet +0.7%, Amazon +0.6%, Nvidia +0.5%, Apple +0.1%, Microsoft +0.1%) Cryptocurrency-linked stocks are rallying as Bitcoin rises, putting it on track for its best weekly gain in more than two years. Strategy (MSTR) climbs 8%, Coinbase (COIN) rises 5%. Mining stocks are rising as gold is on track for a third weekly gain after the US Treasury’s unexpected ramp-up in buybacks of long-dated government debt underscored concerns about its burden. Newmont (NEM) rises 3%. Flowers Foods (FLO) falls 4% after the maker of Wonder Bread cut its adjusted earnings-per-share forecast for the full year. O-I Glass (OI) rises 5% after Citi upgraded the packaging products company to buy, saying shares appear to be “meaningfully oversold.” OSI Systems (OSIS) falls 13% after the medical device maker’s forecast for fiscal 2027 revenue fell short of the average analyst estimate. Parsons Corp. (PSN) rises 2% after Baird upgraded the IT services company to outperform, saying guidance looks conservatively set. NetEase ADRs (NTES) rise 6% after the company’s core gaming business was seen as resilient and forecast to keep growing steadily. Ross Stores (ROST) climbs 8% after the off-price retailer boosted its earnings per share forecast for the full year. In other corporate news, Samsung Electronics said it expects to return as much as 110 trillion won ($79 billion) to shareholders this year, joining rival SK Hynix in handing investors a chunk of the windfall generated by the AI rush. Anthropic PBC expects to match or beat the size of SpaceX’s record-setting initial public offering, according to Bloomberg. SpaceX and AST SpaceMobile are among companies expressing interest in acquiring a swath of 800 MHz-band spectrum held by Grain Management that’s valuable for providing wireless phone services directly from space. Virtu Financial is said to be considering a potential sale of its agency brokerage and technology division to free up capital to invest in its core market making operation.  Nvidia is in early discussions with the Korean AI chip designer Rebellions about possible collaborations. Banca Monte dei Paschi di Siena SpA is seeking to buy two separate banks for a combined price of €34 billion ($40 billion) as it wants to prevent being taken over by rival Intesa Sanpaolo SpA. Broadcom is in talks with a group of lenders to raise as much as $100 billion in debt for an AI chip financing deal that will benefit Anthropic PBC and other companies, according to people with knowledge of the matter. After days of swings that saw long-dated yields hit their highest levels in decades, Treasuries were little changed on Friday. Brent crude struggled for direction, while gold hit the highest level since May. Investors are now assessing the fallout from a week that saw bond yields spike on worries about inflation and spendthrift governments, a surge that prompted the Treasury to intervene to curb long-dated borrowing costs. They are now awaiting a promised new initiative from Treasury Secretary Scott Bessent aimed at fiscal consolidation. “Equity markets are vacillating between concerns about the tech sector and rising bond yields, though today, both seem to have declined,” said Joachim Klement, a strategist at Panmure Liberum. “Fact is that the US Treasury can do little if anything to turn the trend in long-term bond yields for good.” The surprise decision by the Treasury Department to increase its repurchase program this week “sent the clear message to investors that rising yields matter now,” notes JonesTrading chief strategist Mike O’Rourke. “While the Treasury market has been soft since the election, we do not view it as dire. The Treasury drawing attention to it may turn it into a problem,” O’Rourke adds. Bitcoin rallied as much as 9.4% and headed for its best weekly advance since 2023. A short squeeze triggered by Bessent’s midweek announcement of bigger buybacks of long-dated bonds remains a major driver of the gains. In hedge funds, Hamza Lemssouguer’s Arini Capital Management is said to have lost roughly 8% in July on soured credit bets. The drawn out Evergrande saga underscores the inherent perils of short selling, said Andrew Left. Nearly $29 billion flowed into US equity funds in the week through Aug. 19, the largest inflow in three weeks, according to BofA's Michael Hartnett who said if US intervention in the bond market fails to “drag 30-year yield below 5%,” that would fuel a slump in the dollar and cause asset allocation to shift to short risk, short leverage and short cyclicals into midterms. Stronger-than-expected manufacturing data helped pushed the the Stoxx 600 up 0.1% and snapped a seven-day losing streak for European equities, the longest in a decade. Still, the Stoxx 600 is less than 2% below its record high, and Goldman Sachs and JPMorgan remain among the most optimistic about the region’s prospects, a Bloomberg survey showed. “Europe has done much better than almost everybody would have expected at the outset of this year,” said Sharon Bell, senior European equity  strategist at Goldman Sachs. “There’s been so much attention on a handful of companies in the US and Asia that I just don’t feel Europe has had its proper due.” Here are the biggest movers Friday: Nibe shares gained as much as 10%, the most since May, after the Swedish heating and climate solutions group posted strong earnings, that SB1 Markets predicted could trigger single-digit upgrades to consensus estimates Siegfried shares rose as much as 9.3%, briefly hitting their highest level since February, after the maker of active pharmaceutical ingredients delivered results ahead of expectations in the first half Bavarian Nordic shares rose as much as 9.1%, the most since July 2025, after the Danish vaccine maker boosted its Ebitda margin forecast for the full year and announced a new share buyback program Domino’s Pizza Group shares rose as much as 4% after Shore Capital upgraded its recommendation on the UK franchise of the world’s biggest pizza company to buy from hold. Hunting Plc shares fell as much as 20%, the most in four years, after the energy services provider cut its full-year profit guidance by 7% Straumann shares fell 3.5% after being downgraded to hold from buy at Deutsche Bank, which says increasing risks and the CEO transition “cloud the outlook” for the Swiss dental implant maker CTS Eventim shares slid as much as 9.5% after reporting results for the second quarter Asian stocks advanced as heavyweight Samsung Electronics’ plan to return some of its windfall AI profits to shareholders lifted the technology sector. The MSCI Asia Pacific Index rose as much as 1%, with chipmakers among the biggest contributors. Samsung plans to return up to 110 trillion won ($79 billion), in what would be one of the company’s most significant capital-return initiatives. Benchmarks advanced in South Korea, Hong Kong, mainland China and Taiwan. Samsung’s payout plan follows SK Hynix’s announcement of a $29 billion buyback. Hopes for more AI-fueled shareholder returns have been a bright spot amid mounting concerns over rising bond yields and fading prospects for a US-Iran peace deal. The MSCI Asia index is down 0.3% for the week, poised to snap four-straight weeks of gains. In FX, the dollar headed for its worst week this month before US manufacturing PMI data that may give investors more insight into the health of the world’s biggest economy.  A Bloomberg gauge tracking the dollar against peers fell 0.3% to its lowest level since May 12 as it continued to face a backlash from investors after Wednesday’s announcement that the US Treasury would boost purchases of longer-dated government bonds.  USD/JPY drops 0.4% to 158.36; Japan’s consumer price index excluding fresh food rose 1.8% in July from a year earlier, accelerating for a second month. EUR/USD on course for a third daily advance and a fourth weekly gain, for the first time since April 2025. GBP/USD rises as much as 0.3% to 1.3676; Britain’s private sector expanded at the fastest pace in four months, as sunny weather and a strong service sector prompted households and businesses to turn on the spending taps. Japan’s benchmark Topix pared an earlier loss to flip to gains, finding support from bank stocks and the marine transportation sector. “If you look at the sectors, money is still flowing into areas such as resources and domestically-oriented stocks,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.  In rates, treasuries opened higher in a belly-led move; 30-year USTs underperformed with yields about 1bp lower at 5.24%. Wings of the curve are lagging ahead of US services and manufacturing reports. Choppy trading session overnight with oil prices lower and UK gilts and European front-ends outperform Treasuries. US yields higher by less than 0.5bps across belly, with the 2-year yield slightly lower and 30-year unchanged. 2/10’s and 2/30s are flatter by around 0.5bps vs. Thursday close. US 10-year yields trade around 4.70%, richer by 1bp on the day with bunds slightly and gilts up 1 bp in the sector. Market pricing for Federal Reserve rate hikes was steady ahead of US PMI data, September OIS around 9bps of a rate hike priced.  IG dollar issuance slate is quiet. On Thursday three companies raised a combined $3.25 billion in the US investment-grade bond market. Next week is expected to be light for issuance, before the seasonal rush begins after Labor Day  “As the buyback announcement effect fades, we expect yields to resume their upward drift and the curve to maintain a steepening bias,” fixed-income strategists at Societe Generale SA wrote in a Thursday note In commodities, WTI futures lower by around 1.1%, and have been trading below Thursday’s close during the overnight session. Brent crude futures are down 0.5% but on track for a roughly 5% rise this week as the ongoing Middle East conflict drives prices higher. The dollar’s loss is supporting gold, up 1.5% and briefly trading on a $4,600/oz handle for the first time since mid-May. The rally in Bitcoin has garnered further momentum, up over 7% and closing in on the $80k mark.  Today's US economic data calendar includes Bloomberg US economic survey for August, and S&P Global US manufacturing, services and composite PMIs. No Fed speakers are scheduled for the session. Next week’s key events include Nvidia earnings and the Jackson Hole symposium. Investors will also be focusing on a heavy slate of results in Asia, including the first report from newly public chipmaker CXMT. Market Snapshot Top Overnight News Treasury secretary Scott Bessent’s bid to prop up the US bond market has been dismissed by investors as a “band-aid on a bullet hole”, as concerns mount over Washington’s $40tn debt burden and smoldering inflation. FT The market is treating the Treasury’s buyback announcement as a pure dollar negative, and Fed Chairman Kevin Warsh’s speech next week at Jackson Hole could be the catalyst for another round of greenback weakness: BBG Broadcom Inc. is in talks with a group of lenders to raise as much as $100 billion in SPV debt for an AI chip financing deal that will benefit Anthropic PBC and other companies. BBG Surging healthcare costs are walloping U.S. workers, and they will only worsen next year. For 2027, employers may be facing the biggest health-insurance increase in at least two decades. WSJ China will roll out additional fiscal policy measures in response to economic developments, Vice Finance Minister Liao Min said on Friday, as growth slows in the world's second-biggest economy. China will maintain the continuity ‌and stability of macroeconomic policies and plan and allocate fiscal resources over a longer time horizon, Liao told a press conference. RTRS Ever since President Trump’s return to office, America’s allies have been fretting about Washington’s intentions. Now, after the inconclusive war against Iran has eroded U.S. weapons stockpiles and laid bare the limits of American hard power, they also worry about American capabilities. WSJ Japan’s consumer inflation picked up last month as the energy shock caused by the Middle East conflict rippled out across goods, firming expectations that the next interest-rate hike is around the corner. WSJ Samsung Electronics expects to return as much as $80 billion to shareholders this year, joining rival SK Hynix in sharing the AI windfall and fueling optimism across the tech sector. Nasdaq futures led gains. BBG Unprecedented shareholder-return plans by South Korea’s two chipmaking giants are emerging as a key swing factor for the won, potentially extending its recent rally if the firms tap local currency markets to fund the payouts: BBG Eurozone flash PMIs were solid in Aug, with manufacturing coming in at 52.8 (vs. the Street 51.8) and services at 51.7 (vs. the Street 51.5), as the economy demonstrated healthy growth and easing inflation pressure. S&P Britain posted a surprise budget deficit in July, underscoring the fragile state of the public finances as Chancellor of the Exchequer John Healey begins to draw up his crucial autumn budget: BBG Bitcoin topped $78,000, on track for its best week in more than three years. BBG September and October in midterm election years is when volatility picks up and S&P returns fade ... and that’s usually followed by a post-event bounce: Goldman A more detailed look at global markets courtesy of Newsquawk APAC stocks were mixed as the region attempted to shrug off the broadly negative handover from Wall Street, where risk sentiment was dampened amid a rebound in yields and Walmart's weak sales growth. ASX 200 traded with mild losses amid another deluge of earnings and mostly softer flash PMI data. Nikkei 225 retreated at the open but is well off today's worst levels, with participants digesting the latest inflation data from Japan, which mostly matched estimates and remained below the 2% price target, but accelerated from the previous and could support the case for further BoJ rate hikes. KOSPI clawed back early losses with price action driven by the tech heavyweights, with SK Hynix considering building a memory chip plant in Japan's Miyagi prefecture and with Samsung Electronics expected to announce a KRW 100tln shareholder return plan today. In addition, the comments from BoK's newly appointed Senior Deputy Governor Kwon were less hawkish than his predecessor, in which he stated that cautious and flexible policy decisions are needed. Hang Seng and Shanghai Comp were somewhat mixed, with the Hong Kong benchmark in the green and its biggest movers driven by recent earnings releases, while the mainland struggled for direction despite China's Vice Finance Minister flagging incremental policies and the PBoC resuming 7-day reverse repo operations for the first time in more than a week. Top Asian News China's Vice Finance Minister Liao said they will roll out additional fiscal policy measures in response to economic developments. Liao added that a greater share of fiscal spending will be directed towards households and consumption. PBoC reportedly to "survey" some mutual funds regarding long-dated bonds, sources suggested. Japan's Finance Ministry is considering setting an assumed interest rate at 3.8% for calculating debt servicing costs in the FY27/28 budget request, Nikkei reported. Japanese PM Takaichi said an economy that is growing will experience a certain level of inflation. Japan has the lowest inflation among G7 nations due in part to the effect of government steps. Japan's LDP cabinet reshuffle is likely to occur in the latter half of September, Kyodo reported citing sources. Chief Cabinet Secretary Kihara is expected to retain their position European bourses begin the final trading session of the week with broad gains, with the blue chip EuroStoxx 50 set to break its 5-day losing streak. Volumes remain light as the Summer season. On the data front, despite mixed French and German PMIs, the EZ figure printed stronger-than-expected across the board, with clear strength in the manufacturing sector. Commentary by S&P highlighted the effect of the heatwave on the services sector. For the ECB, S&P stated that the hawkish bias should remain giving the solid Q3 GDP growth, renewed hiring and elevated inflation. Sectors highlight the positive bias. Basic Resources is the clear outperformer, given the resurgence of precious metals (spot gold +1.5%). Construction and Autos round out the outperformers. To the downside is Health Care, with Media and Financial Services completing the sector laggards. Top European News ECB Consumer Expectations Survey (Jul): 1-year inflation expectation: 2.9% (prev. 3%), 3-year inflation expectation: 2.7% (prev. 2.8%), 5-year inflation expectation: 2.4% (prev. 2.4%). European Negotiated Wage Growth (Q2) 2.44% (Q/Q Rev. 2.56%, Prev. 2.48%). Germany's VDMA said German Machinery exports fell 0.8% Y/Y in H1'26. Geopolitical crises, tariffs, and weak demand in certain countries are collectively weighing on foreign trade in the machinery sector. UK Chancellor Healey has been warned by investors and analysts to limit budget borrowing and not to relent in efforts to reduce the UK's fiscal deficit amid bond sell-off, according to FT. FX G10s are entirely firmer against the Buck with Antipodeans the clear outperformers after China signalled further fiscal measures; CAD and NOK helped by oil prices which eke gains. DXY sits at the lower end of its 98.56-98.84 range, with the recent move lower coinciding with the gradual downside seen in global bond yields. In the prior session, Buck saw some modest weakness after Bessent hinted at further measures to temper yields, action which was reversed through the US afternoon, but an area which DXY has returned to this morning. As expected, July's UK Retail metrics were weak, echoing the BRC monitor for the same period. And despite the 3M commentary around the weather, the ongoing heatwave and end of the World Cup appear to have hit activity. For the BoE, the print does not change the narrative, and instead we look to Flash PMIs later today. Cable saw around 8 pips of downside after the data, action which was swiftly pared in choppy trade. Flash PMIs failed to spur a reaction, despite broadly printing further into expansionary territory. With GBP/USD breaching the resistance at 1.3654, chartists will be focused on the next resistance high at 1.3712. EZ flash PMIs supported the bullish EUR bias today as figures indicating solid third quarter GDP growth, a return to hiring by companies for the first time this year, and inflation remaining elevated by historical standards. EUR/USD looks to Thursday's 1.1710 high, thereafter, resistance around 1.1750. Antipodeans outperform after China’s Vice Finance Minister pledged to roll out additional fiscal policy measures, remarks which follow similar rhetoric from July’s Politburo meeting. Attention will be on further measures to be released in the coming days, which could continue to help the Antipodes. AUD and NZD each firmer by 0.6% against the Buck, with Aussie looking to 0.72, Kiwi eyeing 0.5980, thereafter 0.60. Fixed Income Global fixed benchmarks are mixed this morning, but with price action tentative and trading on either side of the unchanged mark. Earlier action was muted, though US30yr has been gradually falling as the morning progressed. The US 30yr resides at 5.23% vs yesterday’s peak at 5.26% and off near-term highs at 5.33%. USTs (+3 ticks) hold within a very narrow 108-14 to 108-17+ range. The lack of news flow and the ongoing summer lull have led to thin ranges, but later markets will have US PMI metrics to digest, as well as an appearance from President Trump. Elsewhere, the US10yr (4.68%) also moves lower this morning, lacking a clear catalyst. A factor which has led to a decline in the USD, whilst spot gold and Bitcoin have moved to highs. Bunds (+2 ticks) are also trading steady this session. The European benchmark has had regional and EZ-wide PMI metrics to digest this morning, whereby the French and German releases were subject to poor Services components, whilst Manufacturing topped expectations. Elsewhere in Europe, the EZ Negotiated Wage Growth (Q2) figure fell from the prior, which will be welcomed by policymakers at the ECB – but unlikely to push away calls for a September hike. On the inflation front, the latest ECB SCE saw 1- and 3-year expectations fall from the prior. Gilt (-4 ticks) price action essentially echoes the above. UK Retail Sales were weak, whilst the PMIs mildly topped expectations. The accompanying report, “the data suggest the Bank of England looks likely to keep a hawkish bias but will stay cautious, holding off any rate hikes until the growth and inflation trajectories become clearer”. The release saw downticks of c. 7 ticks, but this proved fleeting. Commodities WTI and Brent futures trade on a softer footing amid a pullback from yesterday’s surge, and as geopolitical headlines quieten down, for now, heading into the weekend. Major updates have been light this morning. Reports via the Jerusalem Post suggested security officials see a lower near-term risk of an expanded war with Iran, with Trump’s new economic sanctions intended to buy time until after the US midterms. Meanwhile, the report added that Israel is increasing military preparedness in case strikes resume. Near-term catalysts remain dependent on US-Iran developments, with the next inflection points likely coming from any surprise weekend military action, Iran’s response to US economic pressure, or any updates on diplomacy. WTI Oct currently resides around session lows in a USD 85.95-86.94/bbl range, after printing USD 85.23-87.69/bbl range yesterday. Brent Oct sits in a USD 92.97-94.00/bbl range after printing a USD 91.47-94.71/bbl range yesterday. Dutch TTF, conversely, keeps rising, with European storage replenishment also on traders’ minds. Dutch TTF has risen to a current high above EUR 66.50/MWh from levels under EUR 65/MWh earlier this morning. Metals are higher across the board and are cheering continued weakness in the USD, with woes for the Buck this week compounded by the mid-week US Treasury buyback announcement. Spot gold found support at its 200 DMA (USD 4,514/oz) and currently trades towards the top of a USD 4,509-4,602/oz range, with the next upside level the psychological USD 4,600/oz. Spot silver topped its 100 DMA (USD 68.50/oz) and eyes USD 70/oz to the upside in a USD 67.91-69.92/oz range. Base metals are similarly firmer across the board, with 3M LME copper towards the upper end of a USD 14,050.90-14,194.08/t. Offers of Iranian crude to Chinese buyers have reportedly declined, Reuters reported. Central Banks ECB's Kazaks said he sees wage growth gradually slowing and that the ECB is well placed to act, if needed. BoK's new senior deputy governor Kwon said growth is improving more than expected, inflation is exceeding target and financial stability risks remain, while he added that cautious and flexible policy decisions are needed due to FX volatility and geopolitical risks. Kwon stated he doesn't want to define himself as a hawk or dove, and will make decisions based on circumstances and data. Geopolitics: Iran Security officials reportedly see a lower near-term risk of an expanded war with Iran, with Trump’s new economic sanctions intended to buy time until after the US midterms, Jerusalem Post reported. The report added that Israel is increasing military preparedness in case strikes resume. US President Trump said on Michael Cohen's podcast that the US is essentially and soon controlling the strait, while he said Iran has some missiles and drones, but low capacity to build. US VP Vance responded that their main focus is not really on that, when asked how long Iran could withstand economic pressure, while he added that Iran is under a lot of pressure, which helps achieve our goal of making sure that Iran does not get a nuclear weapon. Iranian Parliament speaker Ghalibaf said Iran must draw up plans to overcome unjust sanctions in order to defeat them. Yemen's Houthis said they targeted a Saudi airport and an Aramco facility. Yemeni Armed Forces announce the targeting Houthi heavy equipment and fortifications, according to Al Arabiya. Geopolitics: Ukraine/Other Ukrainian President Zelensky said Ukrainian forces struck an oil refinery in Russia's Perm and a military base in Marinovka. North Korea reportedly fired about 10 short-range ballistic missiles in its third missile launch this month, hours after rejecting US President Trump's overtures. Japan, US and South Korea held a phone call regarding North Korea missile launch. China and Indonesia will expand joint-military exercises and will work together to accelerate the modernisation of their respective armed forces, according to Indonesia’s Defence Minister. US Event Calendar 9:45 am: Aug P S&P Global US Manufacturing PMI, est. 53.9, prior 53.9 9:45 am: Aug P S&P Global US Services PMI, est. 54, prior 54.6 9:45 am: Aug P S&P Global US Composite PMI, est. 53.95, prior 54.5 DB's Jim Reid concludes the overnight wrap The past 24 hours saw renewed pressure in bond markets as the rally following the US Treasury's announcement on Wednesday that it would expand its buyback operations faded. That meant 10yr Treasury yields rose by +5.8bps to 4.71%. The sell-off in rates was reinforced by the continued rise in energy prices, with Brent crude (+2.36%) advancing for a fifth consecutive session to $93.78/bbl, amid continuing concerns over US-Iran tensions. The backdrop of higher yields and oil prices led the S&P 500 (-0.87%) to post its biggest decline of August so far. Market sentiment has stabilised somewhat overnight, though yields are mostly drifting higher in Asia while the US dollar is trading near three-month lows. Yesterday’s rise in yields came despite US Treasury Secretary Bessent’s attempts to ameliorate the market situation in an interview on CNBC. Bessent said that the buybacks previously announced could be bigger than the $4bn per issue, and that Treasury had a “big toolkit” for the treasuries market. Intriguingly, he also said that the administration would be announcing an increased focus on fiscal consolidation, “probably at the end of this week, beginning of next week”, although he provided little other detail. Long-end yields did stabilise as the session went on, but 10yr yields still fully reversed Wednesday’s rally (+5.8bps after -5.7bps Wednesday), while 30yr yields (+5.7bps and -9.2bps) reversed most of theirs. So for now investors are viewing the Treasury’s steps more as a band-aid than a structural solution to rising yields. Indeed, as we argued in our note dedicated to the 250-year anniversary of the US (see here on the DB Research Institute), while financial repression could play some role in managing the US debt burden, it needs to be combined with genuine fiscal consolidation to have a sustained impact. Meanwhile, the stagnant situation in the Middle East also added pressure on rates yesterday, as markets digested Trump’s threat from Wednesday night that Iran would face the “most crushing economic operation ever”. In his CNBC interview yesterday, Bessent also said that oil markets were “misinterpreting” what this economic pressure means, and that he would hold a press conference on Monday to discuss the next steps. With lingering questions of whether the US could target countries economically supporting Iran, China’s Foreign Ministry spokesman said “sanctions and pressure will not help resolve the issue”. As prospects of resolution remained distant, Brent crude crossed $93/bbl to its highest level since late July. Brent is a marginal -0.32% lower this morning. With oil prices moving higher against the uncertainty, that put renewed pressure on inflation expectations, with the US 1yr inflation swap rising +16.0bps, its largest daily move since March. 5yr inflation swaps (+6.4bps) also posted a decent gain to its highest level since June at 2.51%. In turn, expectations of Fed hikes edged higher with pricing of a September hike up from 32% to 36% and 23bps of hikes being priced by year-end (+1.6bps on the day). Staying on the Fed, St. Louis Fed President Musalem reiterated his view that inflation remained too high due to shocks and persistent demand. Musalem had supported a hike in July, although he is a non-voter this year. Yesterday’s US data also did nothing to push back against the move higher in yields, with the Philadelphia Fed Business Outlook for August rising to its highest level since April 2021 (47.4 vs 41.4 prev., 24.8 exp.). Even more impressively, the capex expectations reading within the survey saw its highest reading since the 1970s. Meanwhile, initial jobless claims for the period ending in August 15 were a little lower than expected (206K vs 210k exp.), signalling that the labour market remains stable. The bond sell off has spread to Asia overnight, with yields on 10yr Japan (+3.3bps) and Australia (+5.1bps) bonds moving higher, while 10yr Treasuries are stable. For JGBs, the move comes as Japan’s flash August composite PMI rose to a 6-month high of 53.4 (from 52.7) with both manufacturing and services activity accelerating. Meanwhile, Japan’s July national CPI rose from 1.6% to 1.9%, in line with expectations, with core-core (ex. fresh food and energy) inflation rising from 1.7% to 1.9%. The data has underlined market expectations of a September BoJ hike, with its pricing rising from 79% to 82% this morning. We’ll also get flash PMIs across the Eurozone, UK and US today, which will give us a further sense of whether the economic resilience seen so far this summer has continued. In a sign of positive momentum continuing, the UK’s GfK consumer confidence reading (-14 vs -18 expected) released overnight unexpectedly rose to its highest level in two years. Equities struggled yesterday in response to the unwinding of fixed income gains, with the S&P 500 (-0.87%) posting its biggest decline of August so far. The Nasdaq (-1.00%) and the Mag-7 (-1.11%) saw larger losses, even as the Philly Semiconductor index (+0.53%) reversed some of its losses from earlier this week. Sentiment also wasn’t helped by earnings from Walmart (-9.15%), whose shares slumped after the company saw its slowest US sales growth since 2020 at +2.6% yoy. So that renewed questions about the health of the US consumer amid the backdrop of high energy prices, rising interest rates and a low saving rate. The equity mood has improved a bit overnight, with both the S&P 500 (+0.06%) and NASDAQ (+0.20%) edging higher, while Asian markets are mixed. The Nikkei (-0.30%) is underperforming, but the Hang Seng (+0.72%) and CSI 300 (+0.52%) are advancing. Korea’s KOSPI is also up +0.89% following on a +5.89% surge yesterday. That’s been helped by a +2.10% gain for Samsung Electronics as Bloomberg reported that the company plans to announce a new package of dividends and buyback of up to 110trn won ($79bn). Over in Europe, sovereign bonds also mostly lost ground yesterday. While 10yr bunds (-0.2bps) were little changed, the 10yr OAT yield (+1.5bps) reached a new post-2008 high of 4.12%, with BTP (+1.4bps) yields also higher. Meanwhile, 10yr gilts (+2.3bps) underperformed, in part following a better-than-expected August CBI Trends survey. That said, the relatively modest bond moves came despite European gas prices (+3.36%) rising to their highest level since January 2023 at €65.50/MWh, as worries of an energy shock continued to permeate markets. Indeed, the Euro 1yr inflation swap rate also rose +3.4bps to its highest level since late July. In the equity space, Europe’s Stoxx 600 (-0.12%), DAX (-0.42%) and CAC 40 (-0.57%) declined, whilst the FTSE 100 (+0.04%) inched up. Turning to FX, with yields rebounding, the dollar index (+0.06%) stabilised yesterday after Wednesday's decline but is -0.14% lower overnight. Gold (+0.02%) was also little changed at $4,517/oz after having its best day since February on Wednesday. Conversely, Bitcoin (+5.25%) rose for a 4th consecutive session to its highest level since late May. It is another +2.64% higher, nearing the $75k level this morning, though that still leaves the cryptocurrency down about -15% this year. Finally, Sweden’s Riksbank left its policy rate unchanged at 1.75% as expected. In the comments, the bank said that the probability of a rate hike later this year still holds. Money markets are now pricing 23bps of Riksbank hikes by December, down from 28bps the day before. Turning to the day ahead, the data highlight will be the flash August PMIs across France, Germany, Eurozone, UK and US. Other data include July retail sales in the UK, France August business confidence, the ECB’s July consumer expectations survey, Eurozone August consumer confidence and Canada June retail sales. Tyler Durden Fri, 08/21/2026 - 08:34

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  • Tyler DurdenBy Tyler Durden

    Futures Rise On Opex Day As Yields Stabilize; Bitcoin Almost Tags $80,000 US futures rebound from Thursday's slump, and trade at session highs on.  As of 8:15am ET, S&P 500 futures were 0.4% higher with Nasdaq 100 contracts up 0.6%, while Bitcoin headed for its best …

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Mass Casualties As Russian Drones Slam Into Mall In Zelensky's Hometown

At least 14 have been killed and 121 injured after a Friday afternoon Russian drone strikes on a busy shopping call in the central Ukrainian city of Kryvyi Rih, regional officials say. Casualty numbers could grow amid ongoing search and rescue efforts at the scene. Some of the injured are in serious condition.

President Zelensky quickly issued a statement on the attack which was carried out on his own hometown, calling it "cynical and despicable" and underscoring that it was "an ordinary shopping center". Dnipropetrovsk Regional Military Administration via AFP

Zelensky described that the strikes came in two waves, with the second drone hitting "half an hour after the first hit and the ensuing fire, there was a second strike on the emergency services. He urged for the "the world" to respond "accordingly - with real pressure on the aggressor."

"Attacks like these are nothing less than terrorist acts," Zelensky wrote further, and pledged a strong response to the aggression.

According to The Associated Press, the same city has suffered immensely from prior attack waves stretching throughout the war:

Local administration head Oleksandr Vilkul put the death toll at 14, adding that 121 people were injured, including 22 children. He said the rescue operation was ongoing as "the rubble is being cleared."

Kryvyi Rih has been hit multiple times during the more than 4-year-old war, with one of the deadliest occurring in April 2025, when 20 people, including nine children, were killed.

Multiple videos have emerged from the scene, showing what appear to be a Geran-4 (jet-powered) drone attack...

Kryvyi Rih right now ‼️ This is the largest shopping mall in the city, Russia keeps attacking it on busy Friday afternoon. At least 2 people reported killed, at least 12 injured. Continues strikes prevent resquers from helping the victims! pic.twitter.com/s4VJwtrktF — Kate from Kharkiv (@BohuslavskaKate) August 21, 2026 The Ukrainians have all the while pressured Western backers to give more anti-air missiles, especially Patriot batteries, which have been in short supply worldwide, also amid the Iran war in the Middle East.

Ukraine's own deadly long-range attacks deep inside Russian territory have continued, meanwhile.

"A Ukrainian drone attack killed one person and wounded four others when a car was struck Friday in Russia’s Belgorod region near the village of Razumnoye, local officials said, adding that two of the injured were in serious condition," AP also notes.

The death toll in Kryvyi Rih has climbed since initial reports began circulating:

🇷🇺⚡️🇺🇦 ⚠️ Russian Geran-4 jet-powered drones struck the Sun Gallery Mall in Kryvyi Rih, Ukraine's Dnipropetrovsk region, killing at least 5 civilians and injuring more than 90 others. pic.twitter.com/ayIWIt5meT — #Inside_News (@insider_der) August 21, 2026 "Earlier, Zelenskyy said a separate Ukrainian drone attack hit an oil refinery in Perm, more than 1,600 kilometers (about 995 miles) from his country’s border. Also struck was the Marinovka military airfield in Russia’s Volgograd region, he said," the report adds.

Washington is lately calling for renewed efforts to get the warring sides to the negotiating table to finally end the war. The Kremlin on Friday said it is open to 'new ideas' - though any final settlement must be in line with Putin's demands as well as "realities on the ground".

Tyler Durden Fri, 08/21/2026 - 15:05

Location: Iran
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Is Israel trying to start a proxy war in Syria? Israeli airstrikes on Syria’s Abu al-Duhur airbase on August 18 unexpectedly turned what might otherwise have looked like another familiar episode of Israeli military activity inside a neighboring country into something far more dangerous.

This time, the real recipient of Israel’s warning was neither Iran nor Hezbollah, but Türkiye, which has emerged as one of the principal political and military partners of Syria’s new leadership since the fall of Bashar Assad. Eight strikes hit the airbase, located roughly 70 kilometers from the Turkish border, damaging runways and military infrastructure.

Israel said the operation was intended to prevent Syria from allowing Turkish forces to establish a presence there, while US and Israeli officials indicated that one of the objectives was also to disrupt the delivery of advanced Turkish weapons systems to the facility.

Shortly before the attack, Mossad chief Roman Gofman had reportedly discussed with Syrian Foreign Minister Asaad Shaibani the expansion of Türkiye’s military footprint, arms sales to Damascus and the possible transfer of drones to the Syrian armed forces.

Turkish-Syrian military cooperation itself is hardly a secret. As early as August 2025, Ankara formally agreed to assist the reconstruction of Syria’s armed forces through weapons, military equipment, logistics, training and advisory support, and over the past year, the two governments have steadily deepened that relationship.

What remains unconfirmed, however, is whether a new shipment of Turkish weaponry was physically delivered to Syria on August 20. Yet the issue goes beyond that particular shipment. Israel increasingly views the transformation of Turkish assistance from a reconstruction program into a permanent military infrastructure as a strategic shift in the regional balance.

It is especially concerned about drones, electronic warfare systems, radar networks and, above all, the eventual deployment of modern air-defense systems that could restrict Israel’s long-standing freedom of action in Syrian airspace. The escalation between Türkiye and Israel is advancing at a remarkable speed.

For the moment, the confrontation remains largely rhetorical, diplomatic and indirect, but Syria has created the very real possibility of a proxy conflict between two states that both possess modern armed forces, sophisticated defense industries and competing visions of the regional order.

Syria could become the arena in which those visions collide via the arming of allies, the destruction of military infrastructure and attempts to enforce rival red lines. Such a scenario could become the point of no return. Syria is no longer just a buffer zone The most important change is that post-Assad Syria is no longer merely a battleground for Israel’s campaign against Iranian influence.

For years, Israel operated within a relatively predictable framework. Airstrikes targeted assets linked to the Islamic Revolutionary Guard Corps, weapons depots and supply routes serving Hezbollah, Syrian air-defense systems and other infrastructure capable of restricting Israeli operational freedom.

TĂźrkiye was not directly a part of that equation. Now, Ankara has acquired the opportunity to rely not only on its long-standing military presence in northern Syria and on armed groups historically aligned with it, but increasingly on the central government in Damascus itself.

Syria’s new authorities need investment, reconstruction, military training, infrastructure and international political backing, all of which Türkiye is well placed to provide. For Ankara, this represents an unusually favorable strategic opening, allowing it to convert years of costly involvement in the Syrian conflict into lasting influence over the political and military architecture of the neighboring state.

Israel sees the Turkish presence as a threat. If the Syrian army remains weak, fragmented and technologically backward, Israel can preserve near-unrestricted operational freedom across large parts of Syrian territory. But if TĂźrkiye helps Damascus rebuild a centralized army, restore airfields and radar networks, acquire drones and eventually field modern defensive systems, Israel could face a fundamentally different Syria within several years.

More importantly, that Syria would no longer be backed by a sanctions-battered Iran, but by a NATO member with a rapidly expanding defense-industrial base. The attack on Abu al-Duhur is an attempt to establish a preventive red line. Netanyahu said after the strike that Israel would not tolerate a Turkish military presence in Syria that threatened Israeli security, adding that an earlier message had apparently not been understood clearly enough.

Türkiye replied by accusing the Israeli prime minister of pursuing an “expansionist and destabilizing policy,” while Israeli Defense Minister Israel Katz warned Turkish President Recep Tayyip Erdoğan against testing Israel’s determination. Even Israel’s allies in Washington are concerned.

US envoy Tom Barrack described the strike as an unnecessary escalation, while the US has accelerated efforts to create a deconfliction mechanism between Israel, TĂźrkiye and Syria. The very fact that such a mechanism is now considered necessary shows that Washington is increasingly treating an accidental or deliberate confrontation between two of its most important regional partners as a scenario that requires technical safeguards rather than as an abstract possibility.

Netanyahu needs an enemy before October Yet it would be a mistake to think that Israel is solely pursuing military goals. Parliamentary elections are scheduled for October 27, and the campaign has already transformed Israel’s foreign policy into one of the central arenas of domestic political competition.

For Benjamin Netanyahu, this may be one of the most difficult election campaigns of his career. For decades, he built his political brand around two propositions – that he alone could guarantee Israel’s security and that he possessed a unique ability to manage relations with Washington and other world powers.

Both claims are now under scrutiny. The October 7 attack shattered much of Netanyahu’s long-cultivated image as Israel’s ultimate guarantor of security. Years of war and mobilization have not produced an uncontested political outcome; relations with allies have grown more complicated, and domestic tensions have been intensified by disputes over ultra-Orthodox military service, the confrontation over the judiciary and Netanyahu’s continuing criminal trial on charges of bribery, fraud and breach of trust, all of which he denies.

His problem is compounded by shifts within the electorate itself. Netanyahu must simultaneously recover more moderate right-wing voters and prevent the radical wing of the nationalist camp from drifting toward politicians such as Itamar Ben-Gvir and other parties positioned to the right of Netanyahu’s Likud party.

That creates almost ideal conditions for a return to one of Netanyahu’s most effective political instruments – the politics of the besieged fortress. The more threatening the external danger appears, the easier it becomes to move the election away from questions about Netanyahu’s personal responsibility, his court cases, the social cost of prolonged mobilization and economic pressures, and instead turn it into a referendum on who can be trusted to lead Israel against a growing circle of enemies.

That strategy has become explicit in Likud’s campaign messaging. Billboards have placed Erdoğan alongside Iran’s supreme leader, Hezbollah Secretary-General Naim Qassem and New York Mayor Zohran Mamdani, beneath the slogan that they all want Netanyahu to lose.

Erdoğan is no longer a difficult foreign leader or an unreliable partner, he now stands among Israel’s traditional adversaries and is being used as part of domestic electoral mobilization. Netanyahu’s critics are attacking him from opposite directions.

Naftali Bennett, himself hardly a dove, argues that Israel’s international position has deteriorated dramatically under Netanyahu and has proposed the creation of a special public-diplomacy body to fight for Israel’s image abroad. Bennett’s criticism carries weight: There is no fundamental disagreement between him and much of the Israeli right over the need to confront hostile regional forces.

The disagreement is over method and results. According to Bennett, Israel possesses enormous military power but has failed to efficiently convert it into diplomatic clout. Ehud Barak, by contrast, has attacked Netanyahu for moving too far in the opposite direction.

He described the strike on Abu al-Duhur as “reckless and foolish” and argued that it carried a strong political flavor of manufacturing security fears before the election. Barak’s position is that Türkiye is not Iran and not Assad’s Syria, and that the tensions with Ankara can still be managed through discreet channels coordinated with Washington.

Netanyahu now finds himself squeezed between those that demand he prove that Israel can still impose its will on the region, and those accusing him of turning foreign policy into an extension of his election campaign. In this tight spot, backing down before Ankara may carry almost as much domestic political risk as escalating further.

Erdoğan has reasons of his own The situation in Türkiye’s domestic politics is similar in some aspects, but different in others. The next scheduled presidential and parliamentary elections are formally due in 2028, yet the possibility of an early vote remains a recurring subject in Turkish politics.

The issue is especially relevant for Erdoğan because constitutional limits complicate another presidential run unless the legal and electoral framework changes or early elections are triggered under specific conditions. At the same time, the government continues to promote the idea of a new constitution, a project that the opposition views partly through the lens of Erdoğan’s political future.

TĂźrkiye is also approaching the next electoral cycle from a position of persistent economic and political strain. Inflation remains high, purchasing power has been severely eroded, and the cost of housing and food continues to shape everyday voter sentiment.

Even as Ankara has adopted more orthodox economic policies and rebuilt parts of its financial credibility, the social consequences of years of inflation remain politically toxic. The political environment is also tense. Istanbul Mayor Ekrem İmamoğlu, Erdoğan’s most formidable long-term rival, has been imprisoned, while the main opposition party CHP has endured a severe internal crisis and leadership struggle.

Turkish authorities reject accusations that legal proceedings against opposition figures are politically motivated, but the struggle over the country’s post-Erdoğan future, or perhaps Erdoğan’s continued political dominance, has already begun well before the formal campaign.

Confrontation with Israel offers Erdoğan several political advantages. It appeals simultaneously to religious-conservative and nationalist constituencies, allows Türkiye to present itself as a state capable of shaping the Middle East, and turns foreign policy activism into proof that Ankara remains an autonomous center of power despite its economic problems.

By backing the government in Damascus, Türkiye can embed itself in Syria’s future security and political architecture, weaken Kurdish armed formations, expand markets for its defense industry and deepen its political presence all the way to the Mediterranean.

Erdoğan has already argued that Israeli military activity in Syria and Lebanon has reached a stage where it threatens Türkiye’s own security. This creates a problem similar to Netanyahu’s. Once Ankara publicly presents itself as a state capable of protecting its partners and influencing the regional balance, retreating after a direct Israeli strike on an object associated with Turkish-Syrian cooperation becomes politically costly.

The more Türkiye’s regional strategy depends on the perception that it can defend its interests, the harder it becomes to ignore Israeli attempts to define the limits of Turkish involvement by force. The Mecca pact and the fear of a new Sunni axis On August 7, Türkiye, Saudi Arabia and Pakistan signed a defense agreement in Mecca.

The pact reportedly includes principles of mutual protection, political and military coordination, joint exercises and cooperation in defense production, including drone manufacturing, electronic warfare and emerging technologies. Riyadh has emphasized that the arrangement should not be understood as a sectarian bloc or as an alliance directed against any particular state.

The agreement brings together Türkiye, which possesses one of NATO’s largest militaries and a rapidly growing defense industry, Saudi Arabia, which features enormous financial resources and ambitions to shape the Arab political order, and Pakistan, a nuclear-armed state with one of the largest militaries in the Muslim world.

From an Israeli perspective, this is the kind of development that feeds concern over the emergence of a new Sunni axis. What matters is not whether the three countries have formally created an anti-Israel alliance. They have not. Their interests differ, their relationships with Washington are distinct, and Saudi Arabia in particular has reasons to avoid being locked into an overtly anti-Israeli structure.

But Israeli strategists are increasingly focused on the possibility that Turkish military power, Saudi financial weight and Pakistani strategic capabilities could gradually become parts of a broader political-security architecture capable of limiting Israel’s freedom of maneuver.

This concern is not limited to Netanyahu’s camp, either. Bennett has previously warned of the danger of Türkiye becoming a kind of “new Iran” and of a hostile Sunni strategic framework emerging with the involvement of nuclear-armed Pakistan. Once Saudi Arabia is added to that picture, the implications become even more uncomfortable for Israel, especially because normalization with Riyadh was for years regarded as one of the top strategic objectives of Israeli diplomacy.

After decades of confronting what Israeli strategists described as an Iranian-led “Shiite crescent,” Israel may now be facing the early outlines of a very different regional center of gravity – one that conflicts with the idea of Israel as the uncontested dominant power of the region, and potentially with the nationalist expansionist vision of ‘Greater Israel’ itself.

For Ankara, on the other hand, the Mecca pact is another opportunity to evolve from an autonomous regional player into one of the architects of a new Middle Eastern security order. It allows Erdoğan to deepen strategic ties with the largest Arab economy, reinforce relations with a nuclear power, consolidate influence in Syria and demonstrate to Turkish voters that, despite domestic economic difficulties and political tensions, Türkiye is capable of shaping events far beyond its borders.

The current Turkish-Israeli confrontation is about more than Erdoğan and Netanyahu, or even about Syria itself. It is the product of two processes occurring simultaneously. At home, both leaders have powerful incentives to demonstrate strength amid electoral pressure, economic problems and social polarization.

Abroad, competition for regional leadership and military-political influence is intensifying rapidly in a Middle East where the old post-Assad balance has already begun to disappear. Neither Ankara nor West Jerusalem appears to want a direct war – yet if Türkiye continues to arm and train the Syrian military while Israel systematically destroys the infrastructure created with Turkish assistance, a de facto proxy conflict will already exist.

But if Turkish servicemen are killed in a future strike, or if Israel deliberately destroys a major Turkish military asset inside Syria, the domestic political cost of restraint for Erdoğan would rise dramatically. Conversely, if Syrian forces using Turkish-supplied systems were to shoot down an Israeli aircraft, Netanyahu would face exactly the same political dilemma, particularly only weeks before the October election.

When foreign confrontation starts to define a leader’s domestic political legitimacy, the space for compromise contracts much faster than the space for military action.

Location: Israel
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D-Day for Iran, Meta on trial, Russia takes on the UK: RT stories that shaped the week Escalation was the name of the game this week, as the full extent of British involvement in Ukraine’s long-range strikes on Russia was revealed, and as US President Donald Trump laid claim to the Strait of Hormuz and shifted to a policy of subjecting Iran to long-term economic strangulation.

Trump declares ‘D-Day’ for Iran The 60-day window for the US and Iran to negotiate a lasting ceasefire and peace deal expired on Monday, with Trump telling reporters that he had no interest in extending a truce when he felt Tehran was “not going to make the kind of a deal that I feel is necessary.

” Instead, the US president took to social media to declare the Strait of Hormuz “new US territory,” before promising to inflict “Economic Warfare and Isolation on an unprecedented scale” on Iran by punishing any country doing business with the Islamic Republic.

However, despite Trump’s declaration of “ECONOMIC D-DAY,” the balance of power in the Persian Gulf has not changed. Iran retains its veto on shipping in the vital waterway; a mere six ships transited the strait on Tuesday, despite the Pentagon leaking information about a ‘secret shipping corridor’ via the Israeli military’s favorite reporter, Barak Ravid.

Iran also maintains a formidable arsenal of missiles and drones, and has threatened to “escalate tensions in the Strait of Hormuz and wider region” if diplomacy fails and Trump refuses to lift his blockade on Iranian ports. August 19, 2026 Iran and Oman are the only players in the region making diplomatic progress right now, with the two reaching an “understanding” on a future shipping regime in the strait, Iranian Foreign Ministry Spokesman Esmaeil Baghaei said on Monday.

Trump’s response? If Oman strikes a deal that doesn’t satisfy Washington, “we’ll bomb the sh*t out of them.” Russia warns Britain of ‘consequences’ As the 35th anniversary of Ukraine’s independence approaches on Monday, the country is in the most perilous position it’s been in since the fall of the USSR.

Vladimir Zelensky spent the week continuing to beg for non-existent air defense missiles from his Western backers; this was to no avail as Russia continued to pound military, industrial, and energy targets across Ukraine with impunity. We need missiles for Patriots, and only our partners can provide them.

We ain’t talking about gifts. Ukraine is ready to buy the weapons we need. What matters is that decisions be made, first and foremost in the U.S. I am grateful to everyone who is helping Ukraine save lives. pic.twitter.com/OImT18CGwM— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) August 20, 2026 For as long as Kiev keeps up its campaign of terror-bombing Russian cities, Russian Foreign Ministry spokeswoman Maria Zakharova warned on Thursday, “the Russian Armed Forces will respond proportionately.

” For Ukraine, this means more ballistic missiles, more blackouts, and more burning weapons factories in Kiev and beyond. Zelensky wasn’t the only participant in the conflict to receive a stark warning from Moscow. After the Sunday Times revealed that Ukrainian forces have used British-made drones for long-range attacks inside Russia for the past six months, Moscow’s embassy in London stated that “London’s actions will inevitably carry consequences for which it will have to answer.

” Russian Foreign Minister Sergey Lavrov made the point even more directly: [Russian President Vladimir Putin] has warned that we have the right to act in any part of the world’s oceans if anyone encroaches on our interests or our property. Likewise, we have every right to regard the proudly proclaimed direct involvement of British missile forces in strikes against Russia as participation in the war, with all the consequences that entails Coming after Russia dismantled Ukraine’s port infrastructure with missiles, and began its winter campaign against Ukrainian energy infrastructure a month early, it’s a warning that London would be wise to heed.

Zelensky feels the squeeze Zelensky’s friends in London have vowed to stick with the Ukrainian leader “100%” of the way, but at home in Kiev, opposition is rising. Fired by Zelensky last month, former Defense Minister Mikhail Fedorov made a bid for power on Tuesday, releasing a campaign-style video blasting the corruption and “systemic crisis of governance” in Kiev, and upping the ante by calling for a wartime election.

Fedorov’s drone-centric model of warfare won him support from a public hungry for the illusion of victory, and his glad-handing with the new military-industrial elite in Silicon Valley made him powerful friends abroad – even if, as RT explored in our ‘Wired for War’ series, he turned the Defense Ministry into a glorified sales office for Palantir.

Zelensky, on the other hand, had to fire another senior aide this week as the Timur Mindich corruption scandal keeps thinning out his ranks. Storm clouds are gathering for the former actor. The challenge from Fedorov combined with another embarrassing corruption revelation has drawn the attention of the Western media, with the usual cheerleaders in the Wall Street Journal calling the ex-minister’s video the “biggest challenge” to Zelensky’s “hold on the presidency” since 2022.

To mark the 35th anniversary of Ukraine’s independence, RT is launching a dedicated series that provides a snapshot of Ukraine’s present, and warnings about its future. Watch for banners on Sunday on rt.com. Meta’s trillion-dollar trial begins Zelensky is a once-untouchable titan facing his most serious challenge to date.

If there’s anyone who knows the feeling, it’s Meta CEO Mark Zuckerberg. Meta went on trial on Tuesday, accused by four US states of designing its platforms to keep children and teenagers scrolling for as long as possible, with all of the ensuing mental health consequences.

Meta has faced – and lost – ‘addiction’ lawsuits before, but this trial is the first to be heard in a federal courtroom, and also involves federal-level accusations that the company harvested data from under-13s without parental consent. Should the four states win, Meta could, at least in theory, be forced to pay $1.

4 trillion in damages. Appeals may go all the way to the US Supreme Court, where a judgment against the company could force Meta, TikTok, and other social media giants to permanently alter how they build their platforms. Whatever the result, 25 other US states have signed on to the lawsuit, meaning Zuckerberg’s legal problems will only compound from here on.

However, as the old military adage goes, “shoot the archer, not the arrow.” Facebook, Instagram, and TikTok are merely tools in the hands of an elite hellbent on building a decadent society, French-Russian analyst Matthieu Buge wrote for RT this week.

Defanging Meta won’t stop people craving the dopamine hit that tech offers, he argued, concluding that “whoever wins the Meta trial, the masses will remain willing slaves.” Another crisis threatens the EU Every EU headline these days seems to involve a crisis of some sort: the energy crisis, economic crisis, political crisis, and the migrant crisis, the latter of which degenerated this week with multiple rapes in the Spanish exclave of Ceuta.

The latest emergency looming over the bloc is a potentially existential one – a food crisis. It’s the perfect storm. The War in the Persian Gulf has driven fertilizer costs sky-high, and successive heatwaves across Europe have decimated yields. Groundwater reserves are depleted in France, harvests of certain vegetables are down almost 100% in Belgium, while cattle go hungry in Spain and Polish poultry farmers grapple with mass die-offs.

This was one of our top stories this week, and we’ll be keeping an eye on the crisis throughout the fall. Meanwhile, here’s what we’ll be monitoring next week: What to watch out for The on-again, off-again talks between the US and Iran are seemingly dead in the water, and with all parties escalating, we’ll be watching who signs on to Trump’s sanctions regime.

China is already out, and the Europeans are staying quiet. If the sanctions plan crumbles and Trump refuses to walk away, a return to open war may be in the cards. Expect more punishing Russian strikes on Ukraine’s energy grid, and more long-range attacks on Russian civilian infrastructure from an increasingly desperate Zelensky.

The embattled Ukrainian leader hasn’t publicly responded to Fedorov’s challenge yet, and he’ll likely use his Independence Day speech on Monday to project an image of control and stability. The true test for Zelensky will come on his next foreign trip, when Western reporters may question him on Fedorov’s political ambitions and – less likely – the endemic corruption in Kiev.

Zelensky has a famously short fuse, and his reaction will speak volumes about how seriously he takes the threat to his power. We’ll also stay tuned to the Meta trial and keep you posted on just how hard Zuckerberg and his colleagues worked to hide the insidious design of their platforms.

Stick with rt.com for all these stories, and watch our banners for our special deep-dive into Ukraine’s tragic, fascinating three decades of independence.

Location: Arak
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Iran's president urged an end to the war with the US, in his latest pushback against hardliners who want to continue the conflict. “It would be better to end the war today, when we have power and dignity, and with the whole world acknowledging our victory,” Masoud Pezeshkian said, according to the semi-official Iranian Students' News Agency.

Pezeshkian is Iran's top elected leader, but his responsibilities are mostly limited to domestic economic policy. Oil prices dipped from session highs on Friday after Pezeshkian's comments, before quickly recovering gains. Brent crude is trading around $94 a barrel.

Pezeshkian, Foreign Minister Abbas Araghchi and lead negotiator Mohammad Bagher Ghalibaf have been vocal advocates of ending the war through diplomacy and prioritizing economic recovery since the signing of a now-collapsed ceasefire. His comments come as the conflict shows no sign of a quick resolution and US Treasury Secretary Scott Bessent is expected to unveil plans to economically isolate Iran and its trading partners.

The standoff has exacerbated inflation in Iran and sent the country's currency to record lows against the dollar. ALSO READ: US Blockade Bites: Iranian Crude Discounts To China Slips As Shipments Get Curtailed Other Iranian officials, including some in the nation's powerful military leadership, have argued that Iran is winning and should continue the fight that began in late February when the US and Israel began their bombing campaign.

Iran's Islamic Revolutionary Guard Corps has shifted to an “offensive doctrine,” with several military appointments intended to support fighting in “enemy territory,” a senior official said last week. (This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.

) Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.

Location: Tehran