Individual Economists

Incompatible With Western Society...?

Zero Hedge -

Incompatible With Western Society...?

Authored by Steve Watson via Modernity News,

The comment section under Al Jazeera's Facebook coverage of the Berlin Pride attack has laid bare a reality Western elites still refuse to face.

Hundreds of users with Arab and Muslim names flooded the post with open celebration of the Islamist vehicle-ramming that killed one woman and injured 29 others.

Laughing emojis made up roughly a third of the reactions. Comments praising the attacker with "Alhamdulillah," "Jihad," and "Thank God" stacked up without shame.

The Al Jazeera English Facebook post in question is this one:

There is also an earlier "BREAKING" post about the parade being called off that drew similar reactions:

Laughing emojis made up a conspicuous portion of the reaction totals. These were not isolated trolls. They formed a consistent chorus of approval for the deliberate targeting of people at a Pride event.

The responses also include:

  • "Alhamdu lillah"
  • "Jihad"
  • "Thank God"
  • "Good news indeed"
  • "god is great"
  • "that's good news"
  • "why only one?"
  • "14 idiots injured"
  • "I hope the driver is ok"
  • "please make a gofundme for that driver's future"
  • "The driver deserves a medal ?"
  • "Not all heroes wear capes"
  • "9ice work" / "nice work"
  • "Salute"

These comments sat in plain view under an official Al Jazeera English post, making the ideological incompatibility impossible for anyone still paying attention to ignore.

This is the predictable product of importing large numbers of people whose core religious and cultural worldview treats homosexuality as an abomination worthy of death.

The same ideology that drove 21-year-old Abdul Ballout - German-born of Lebanese origin - to plow a white van into a crowd near Berlin's Christopher Street Day celebrations on Saturday night, then continue the assault with a blade.

Ballout's history is insane. He had already tried to join Islamic State in 2025, traveling to Lebanon to make contact with the group. He was arrested there, served a short sentence, and was flown back to Germany.

In May 2026 a Berlin juvenile court convicted him of preparing a serious act of violence endangering the state and of publishing Islamic State propaganda. He received a suspended sentence, was ordered into deradicalization counseling he barely attended, and walked free. By the weekend he was driving a rental van into Pride revelers in Tiergarten park.

Police tracked him down the following evening in a Spandau garden allotment. When he charged officers with a sharp instrument they shot him dead. The manhunt was over. The policy failure was not.

Ballout's record was no secret. He had prior convictions for assault and robbery. Prosecutors had sought a longer non-suspended sentence. The justice system released him anyway under the soft logic of juvenile law and "deradicalization."

Germany's police officers' association head Dirk Peglow later called the approach too lax: "With people who pose such a threat, the end of their time in detention must not be the end of state supervision."

While the blood was still fresh, Berlin Pride organizers issued a statement warning against using the attack "for political ends."

"People are trying to divide our society and set some people against others. As the CSD in Berlin, we will not allow this," they said. A speaker at a related vigil went further, admitting the first thought after hearing of the car attack was "Hopefully it's not a Kanake... hopefully it's a Christian white person." When it turned out otherwise, the response was more intersectionality.

An Islamist with a documented terrorism history is released, attacks a Pride event, and the institutional left pivots immediately to protect the ideology and the migration system that enabled him.

The same voices that lecture endlessly about "queer safety" suddenly discover that naming the ideology is the real danger. "Queers for Palestine" marched in solidarity with the very ideology that produces these attackers, only for leftists to blame conservatives, GB News, or "whiteness" once the van hit the crowd.

The Al Jazeera comment section simply removed the filter. When the attacker is one of their own, celebration replaces condemnation.

Western societies have spent decades pretending that mass migration from cultures that explicitly reject core liberal freedoms - especially sexual freedom - can be managed with counseling sessions and rainbow flags. The body count and the Facebook reactions say otherwise.

Chancellor Friedrich Merz called the attack "abhorrent" and an assault on openness and freedom. Berlin Mayor Kai Wegner described it as "an attack on our way of life and coexistence." Fine words. They do not change the fact that Ballout was known, convicted, released, and free to act. Nor do they erase the public cheering that followed.

Europe continues to import populations whose stated beliefs and demonstrated behavior are incompatible with the societies that host them.

The results are written in blood on the streets of Berlin and in the laughing emojis under an Al Jazeera post. The refusal to confront that incompatibility is no longer a policy disagreement. It is a death wish.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Tue, 07/28/2026 - 08:05

Korea Barbeque'd: Kospi Crashes As Chip Stocks Tank, AI Token Index Spirals Lower

Zero Hedge -

Korea Barbeque'd: Kospi Crashes As Chip Stocks Tank, AI Token Index Spirals Lower

South Korean stocks plunged on Tuesday as concerns over circular AI financing and China's expanding DUV lithography capabilities (read here) were top of mind among investors. Adding to the pressure, chipmakers may not have found a floor just yet because Silicon Data's LLM Token Expenditure Index continues to slide, suggesting that companies are shifting toward cheaper models, particularly open-source alternatives from China.

The Kospi tumbled nearly 11%, with Samsung Electronics and SK Hynix dropping more than 13% each, prompting the Korea Exchange to temporarily halt both cash and program trading for 20 minutes.

South Korea's main equity index has now lost nearly 34% from its peak one month ago, reversing a rally into a vicious bear market. Concerns over AI profitability, Chinese semiconductor competition, forced deleveraging and evaporating liquidity have accelerated the selloff.

Notably, eight of the Kospi's 14 circuit-breaker halts since the Dot-Com era have occurred this year.

Beyond circular AI financing and China potentially catching up in the chip race, weakening AI demand indicators via Silicon Data's LLM Token Expenditure Index only suggest a bottom for chip stocks has yet to materialize.

London-based UBS analyst Joe Dickinson commented on the chip stock selloff, saying it "drives sharp risk-off moves across global markets."

Dickinson added more color:

The KOSPI is down 11% following a weak US handover, dragging the MSCI APAC down 3%, led largely by semiconductors and supply chain proxies. The move was catalyzed by weakness in ASML following reports that China has begun domestic DUV tool production.

Ha SeokKeun, chief investment officer at Eugene Asset Management, said, "Sentiment toward Korean semiconductor stocks is extremely weak. Broad risk-off sentiment, forced deleveraging, widening hyperscaler CDS spreads, and deteriorating retail investor sentiment are all adding to the selling pressure."

The selloff is also driven by doubts about whether hyperscalers can justify their massive Capex plans, and the token index continuing to slump lower may only suggest a sustained migration toward lower-cost models (read here) could undermine forecasted demand for computing and threaten the investment boom cycle that fueled gains in Samsung, SK Hynix, TSMC and other chipmakers.

Tyler Durden Tue, 07/28/2026 - 07:45

"Good Things Could Happen"

Zero Hedge -

"Good Things Could Happen"

By Molly Schwartz, cross-asset strategist at Rabobank

President Trump spoke with reporters yesterday aboard Air Force One, saying that the US is “meeting with Iran” and that “good things could happen”—with the “could” doing some heavy lifting. What the “good things” are, or when they “could happen,” is still TBD. The other alternative is that “if they don’t work out, [the US] will go back to very strong military action.” That, of course, is dependent on whether or not these talks are actually happening (or at least happening with the people who matter) which Iran currently denies.

We heard announcements over the weekend that Trump was “pausing” strikes on Iran. But that doesn’t mean that Iran has paused strikes against its neighbors. Indeed, Jordanian and Israeli military forces both claimed to have intercepted drones in Jordanian airspace early yesterday morning, while sources from Saudi Arabia said that they intercepted drones launched by Iran-backed militias operating in Iraqi territory.

Markets, however, were seemingly unmoved. Brent crude oil futures traded sideways around $90/bbl after gapping lower on the open, while US rates were similarly sluggish. However, the US yield curve continues to flatten, now at 22bp down from recent heights of 73bp, seemingly poised to flatten further as short-term inflation and Fed hike expectations rise. Re-escalated tensions last week led to a sharp spike in 2-year breakeven yields, up more than 21bp from July 23, back to 2.16%. Meanwhile, the US OIS curve signals investor expectations of a hike by the September FOMC meeting, and more than two full Fed hikes by March of next year.

Trump is not taking a note from Warsh with regard to his philosophy on limiting communication on monetary policy, also making his stance on interest rates and the Fed very clear yesterday. Predictably, Trump re-emphasized that he thinks “rates should be lowered,” but qualified that “you need a consensus from people,” highlighting that “Warsh is great, but he has a board.” The tone came across as softer than that he used when speaking of Warsh’s predecessor (perhaps giving Warsh some wiggle room to hold rates (or hike?)), but the bar for softer rhetoric in this instance is on the floor.

In his recently published FOMC preview, Talking about hikes, Rabobank’s Philip Marey writes that hikes are not part of his own Fed forecasts. Still, he expects plenty of chatter around them, both in markets and within the FOMC itself. He points to Kevin Warsh’s desire for a “good family fight” and the possibility of dissents in favor of hikes at the upcoming decision.

While Kevin Warsh does technically need a consensus to come to an interest rate decision, the current composition of the FOMC still appears to favor the doves. A look at where members generally sit on Bloomberg’s Hawk-Dove spectrum suggests an even five-to-five split, with the remaining Board members clustered closer to the middle. However, that headline balance overstates the hawks’ practical position. Warsh sits firmly on the dovish side and, as Fed Chair, has additional influence in shaping the policy discussion and building consensus. More importantly, the voting arithmetic is tilted in the same direction: five of the dovish members are voters, while only two of the more hawkish members currently have a vote, with the others either non-voters or alternates. So, unless the hawks can bring centrists with them, the balance of votes is likely to remain firmly with the doves, raising the bar for hikes even further.

That said, hikes are not entirely off the table. While energy prices have fallen by around $10/bbl from last week, a full-scale re-escalation and persistent disruptions to the Strait of Hormuz, and the Bab el-Mandeb Strait, could fuel inflationary pressures in the US. Marey writes that “if inflation expectations become unanchored…we may have to pencil in a hike later this year and push the rate cuts further into the future.”

On the other side of the Atlantic, Brussels is still grappling with the prospect that “cold shoulders” and civil discourse are not always the most effective strategies, not only when dealing with an adversary like Russia, but also when trying to wrangle EU members to make any decision. The EU’s proposed sanctions package against Russia failed to pass last week after Greece refused to sign off unless a carve-out was made to allow Greece to continue to transport Russian LNG.

EU officials were furious. According to the Financial Times, one EU official said that “this approach does not work any more” while another lamented that they “don’t want to hear anyone talk about ‘solidarity’ any more.” Still, as Trump put it, “good things could happen.”

Perhaps that means Greece eventually signs off on the sanctions package; perhaps it means a more durable de-escalation further down the line.

For now, though, markets are left trading the gap between what could happen and what has actually happened.

Tyler Durden Tue, 07/28/2026 - 07:28

Futures Slide As Tech Rout Continues, Kospi Halted As It Crashes 10%

Zero Hedge -

Futures Slide As Tech Rout Continues, Kospi Halted As It Crashes 10%

Futures extend Monday's losses as the Tech tape continues to unravel; global Semis were hit yesterday and again overnight (despite the best attempts of Goldman and JPM to force retail to buy the falling knives) with Asian stocks and especially Korea (-10%) bearing the brunt with fears of Chinese competition accelerating the sell-off and then spilling back over into the US. As of 7:00am ET, S&P futures are down 0.2% with tech slammed pushing the Nasdaq 0.9% lower and leaving the index set for a five-day run of losses for only the second time this year. Semis are again lower pre-market led by weakness in Nvidia, Intel and Micron, while Mag7 names are mostly bid and outperforming. While Defensives are leading Cyclicals, there are bids to Discretionary and Financials as both sectors look to outperform. As JPM writes in its Market Intel post this morning (available to pro subs), the market is swept in a risk-off tone (where all the news continues to be sold) that is continuing both the broadening in the US and a rotation ex-US where EU may continue to outperform as investors tilt towards Value; the $64 trillion question remains when do Semis / AI find a bottom. There is some good news as expectations (because they certainly are not taking place) of US, Iran negotiations are reducing commodity prices. As such yields are down 3bps, the USD is flat, and commodities are weaker led by Energy and Precious with Base and Softs the outperformers. Today’s macro data focus is on the weekly ADP print, Housing price indices, Consumer Confidence, Import / Export data, Inventories, and regional Fed activity indicators. 

In premarket trading, chip producers and other AI-related firms are extending their selloff as worries about China’s progress in advanced chipmaking weighs down sentiment. This is also exasperating concerns over the sustainability of the AI spending boom that has propelled the sector in recent years.

  • Tesla and Nvidia are underperforming Magnificent 7 stocks during the selloff in chipmakers and AI-linked firms:
  • Microsoft +1.1%, Apple +0.6%, Meta Platforms +0.4%, Alphabet +0.1%, Amazon +0.1%, Nvidia -1%, Tesla (TSLA) -1.4%.
  • Applied Digital (APLD) gains 2.9% after the digital infrastructure designer reported fourth-quarter revenue to $258.7 million, a 407% increase from a year ago.
  • Cadence Design Systems Inc. (CDNS) is up 2.5% after the electronic design automation software company reported second-quarter results that beat expectations and raised its full-year forecast.
  • Carrier Global (CARR) jumps 5.1% after the HVAC company boosted its sales forecast for the full year.
  • United Parcel Service Inc. (UPS) is up 2.7% after boosting guidance for the year, suggesting the courier is benefiting from strong pricing as it works to shift volume from low-margin e-commerce shipments to more-profitable packages.

In other corporate news Johnson & Johnson agreed to a $5.5 billion commitment to resolve litigation related to claims that its talc products caused ovarian cancer. KKR is said to be exploring options for LS Automotive India including a sale. In deals, Curium is said to be in advanced talks to acquire radiopharma company Lantheus Holdings in a transaction that could value Lantheus at up to $8 billion, including contingent value rights. Stellantis agreed to sell its car-sharing business Free2move to a German private equity firm, part of a plan by the maker of Fiat and Peugeot cars to exit unprofitable businesses and refocus investments on core brands and regions.

While the weeks-long volatility in chipmakers is rumbling on amid fresh concerns over massive debt issuance, debt-funded AI capex spending and rising competition from China, traders are rotating into consumer stocks and other sectors that tend to generate relatively stable revenues regardless of the economic cycle. Lower crude prices also eased inflationary angst, with Brent dropping 3% to below $86 a barrel. The global benchmark is falling for a third straight day as the US and Iran extended their pause in hostilities. Focus will now turn to talks between Tehran and Oman over restarting traffic in the Strait of Hormuz.

“It’s perfectly legitimate for investors to dilute their positions in semiconductors. It’s a good time indeed to take some profits and diversify,” said Vincent Juvyns at ING Groep NV. “That being said, I advise clients to stay invested as visibility is pretty good for the sector.”

There’s more than earnings to consider over the coming days, of course. Citadel Securities’ Frank Flight, the firm’s head of macro strategy, expects the Fed to raise interest rates this week. “The market may once again be underestimating the extent of the hawkish shift at the Fed,” Flight wrote in a note. A hike “would emphatically end the forward guidance era” while underscoring the Fed’s independence, he said.

Meanwhile, the increasingly interconnected web of dependencies between technology manufacturers and AI startups continues to stir unease. The risk of these “circular” deals was highlighted last year here, and although markets forgot all about it, they are now once again freaking out. For JonesTrading chief strategist Mike O’Rourke, investors can “talk about the compute storage all they want and the fundamental demand, but it is clear that a significant portion of Nvidia’s sales come from an ecosystem that Nvidia is artificially creating.” The result is that the “only certainty one can have is the high degree of uncertainty in the AI environment,” he said. 

Credit-market signals are a more relevant short term gauge than EPS valuations for hyperscalers, notes Manish Kabra at Societe Generale. When there is a peak in CDS spreads, it should signal the market begining to price in an improvement in hyperscalers’ free cash flow and an end to a derating. But an inflection in FCF is not expected until the second half of 2027, Kabra adds. 

The gap between single-stock and index volatility is off its highs, but remains close to historical extremes, consistent with very low implied correlation. The combined effect of dispersion and sector rotation beneath the surface have caused individual stock moves to cancel each other out at the index level within the S&P 500.

Elsewhere in markets, corn futures in Chicago rose as government data pointed to the sharpest drop in US crop conditions in three years, potentially reducing supply. The biggest US power grid, PJM Interconnection, is warning that data centers may face involuntary outages under a plan to avert widespread blackouts and protect residential ratepayers from electricity price spikes.

Asia bore the brunt of Tuesday’s selling. The regional benchmark headed for a correction after SK Hynix and Samsung Electronics Co. tumbled more than 13% in Seoul.  The KOSPI tumbled 10%, closing at session lows following another 20 minute marketwide halt, on concern about circular AI financing and new DUV capability from China which may increase memory supply. The macro spillover is continuing. As KOSPI is down over 30% from the peak, Goldman estimates the retail wealth effect to reduce by ~15bp of GDP. Drop in equities also eases financing pressure from leveraged ETF, especially as govt continues to step up control on the product. 

Tech stocks are also slipping in Europe, but that’s being offset by strength in consumer goods and autos stocks, with the Stoxx 600 up 0.4%. European chip giant ASML extended losses for the week to 10% following the emergence of a possible Chinese state-backed rival. Still, advancing stocks in the Stoxx 600 outnumbered decliners by more than two to one even as earnings from Barclays Plc, LVMH and Unilever Plc drew a mixed reaction. The Stoxx 600 benchmark rose 0.4%. 

In FX, the Bloomberg Dollar Spot Index rises 0.1% as investors await the Fed’s decision due later this week.    Interest-rate futures imply roughly a 38% chance of a quarter-point increase on Wednesday. The Fed is likely to leave rates unchanged but renewed tensions in the Middle East and Fed Chairman Kevin Warsh’s decision to hold a press conference “have made it a closer call than anyone would have thought a couple of weeks ago,” wrote Erik Weisman, chief economist and portfolio manager at MFS Investment Management

  • JPY retreats slightly against the USD given the recent modest strength in the DXY; USD/JPY remains under the 23rd July peak at 162.42.
  • EUR is modestly softer against the USD amid the lack of fresh catalysts. EUR/USD reside towards the bottom end of a 1.1354-1.1380 range at the time of writing.
  • GBP has dipped under 1.33 (vs high 1.3305) amid the aforementioned DXY upside with limited UK-specific drivers in the session.

In rates, 10Y TSY yields are down 3bps to 4.62%, down 10bps since July 23 when Brent traded up to $100, with UK gilts slightly outperforming as investors trim their Bank of England rate-hike bets ahead of this week’s meeting. 

In commodities, oil prices slide for a second day, with Brent sitting around $86 having touched $100 last week. That’s buoying bond markets, with yields falling across the US, Europe and the UK.  Gold prices are down, though holding above $4,000/oz, and Bitcoin slipped below $64,000.

Looking the day ahead now, economic data includes US June advance goods trade balance, wholesale inventories, July Conference Board consumer confidence index, Richmond Fed manufacturing index, business conditions, Dallas Fed Services activity, May FHFA house price Index, and France July consumer confidence. We’ll also be getting a large batch of earnings including Visa, Coca-Cola, Boeing, NXP Semiconductors, Teradyne and Ford.

Market Snapshot

Top Overnight News

  • The Kospi index follows a weak US session lower, falling as much as 10.7%. Asia’s semiconductor related stocks come under intense selling pressure dragging the MSCI AC Asia Pacific index down over 3%
  • The Kospi slumped as much as 10.7%, heading for the worst session since early March as both Samsung Electronics and SK Hynix slid more than 12%. Korea Exchange triggered a circuit breaker for the benchmark, marking its eighth such halt this year
  • German officials are working behind the scenes to identify Chinese economic vulnerabilities that they could exploit if the European Union finds itself in a trade war with the world’s second-largest economy
  • Australia’s central bank chief said there are signs the economy is cooling as anticipated, though it’s still unclear if this year’s interest-rate hikes are enough to return inflation to target or whether additional tightening will be needed
  • China set a ceiling on new US tariffs and warned Washington against sanctioning Chinese artificial intelligence companies, drawing boundaries weeks before the next meeting between President Donald Trump and Chinese leader Xi Jinping
  • A selloff in semiconductor stocks deepened Tuesday, as signs of China’s progress in advanced chipmaking weighed on global rivals and concern mounted over the sustainability of the artificial intelligence spending boom
  • President Donald Trump said the US and Iran were engaged in diplomatic talks to end the Middle East conflict, but warned the two sides would return to fighting if negotiations didn’t yield a deal
  • A nearly $600 billion rout in just a little over a month has flipped SK Hynix Inc. from one of the world’s hottest AI trades to one of the biggest portfolio question marks
  • Oil extended a steep decline after President Donald Trump said that the US and Iran were engaged in talks to try to end the Middle East conflict, with the two sides continuing to hold off on attacks
  • US Pacific Tsunami Warning Center said the tsunami threat from the Japan earthquake has now passed, with no tsunami threat remaining for Japan's coast.
  • Shots fired at US consulate in Toronto for the second time this year, according to the New York Post. 
  • US Senate votes to advance Trump nominee Clayton for Director of National Intelligence role.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly negative amid a tech bloodbath and competition concerns following reports that China had started mass production of domestically developed DUV lithography equipment, which had pressured ASML shares and the Nasdaq yesterday. ASX 200 bucked the trend as strength in telecoms and the consumer sectors offset the weakness in miners, materials and resources. Nikkei 225 briefly fell beneath the 62,000 level amid the tech-related losses, with Kioxia heavily pressured. KOSPI triggered a circuit breaker with double-digit declines seen in Samsung Electronics and SK Hynix. Hang Seng and Shanghai Comp were lower but with downside limited in Hong Kong amid the mixed performance among the local tech bluechips, while the mainland was subdued as trade frictions lingered with the US reportedly probing Chinese factories in Vietnam.

Top Asian News

  • Japan's Finance Minister Katayama said must communicate with JGB market in run-up to budget compilation, and we hadn't done that. said:. Believes the government's relationship with the BoJ has been smooth. Very good that final version of the Economic Blueprint has won market understanding. Not currently considering JGB buybacks. Global bond markets have been affected by various factors such as US monetary policy, Ukraine and Middle East situations. Weak yen can have both merits and demerits. Won't comment on specific FX levels and won't comment on potential intervention. No change in stance that we're ready to respond on Forex as needed.
  • Japanese Finance Minister Katayama said taking price relief measures one after another, also noted that foreign banks' participation in projects under Japan's US investment scheme wipes out concerns about dollar funding.
  • 5.0 magnitude earthquake in Qinghai, China, CENC reported. 
  • Japan's Nuclear Regulation authority said there are no irregularities at nearby nuclear power plants after earthquake. Includes Ikata, Genkai, Sendai plants.
  • Earthquake of prelim 7.1 magnitude hits Japan's Kyushu, NIED reported; issues tsunami warning of 1 metre, NHK reported.

European bourses began the session firmer despite sharp losses in APAC, particularly the KOSPI (-10%). At the time of writing, the Euro Stoxx 50 sees gains capped as ASML continued to weigh following reports China started DUV tool production, with the stock extending losses after Monday’s -8.5% decline. Sectors are mostly in the green, with Optimised Personal Care leading and Energy lagging, the former weighed on by LVMH post earnings. Broader sentiment is supported by optimism around US–Iran talks (see commodities for further details), which weighs on crude and underpins equities. Movers: ASML extends losses (-1.5%) on China DUV concerns. In earnings, LVMH (-1%) reported a revenue beat but softer Fashion & Leather Goods sales, Unilever (+6%) beat and raised guidance, while Mercedes-Benz (+3%) cut revenue guidance but maintained margins. In APAC, SK Hynix and Samsung fell ~12% amid memory concerns linked to CXMT’s listing.

Top European News

  • US diplomats walked out of a UN Security Council meeting after France publicly criticised the Trump administration's human rights record.

FX

  • DXY was directionless for most of the European morning before picking up in recent trade despite a lack of US-specific catalysts, with markets increasingly viewing the upcoming Fed meeting as potentially “live”. Tightening bets remained around a 30% probability of a 25bps hike, though softer crude limited further upside in the Buck. DXY has been edging higher in recent trade after topping the 1st July peak (101.60) and aims for the 25th June high at 101.75.
  • JPY retreats slightly against the USD given the recent modest strength in the DXY; USD/JPY remains under the 23rd July peak at 162.42.
  • EUR is modestly softer against the USD amid the lack of fresh catalysts. EUR/USD reside towards the bottom end of a 1.1354-1.1380 range at the time of writing.
  • GBP has dipped under 1.33 (vs high 1.3305) amid the aforementioned DXY upside with limited UK-specific drivers in the session.
  • Antipodeans underperform, led by AUD, which drifted lower to a 0.6963 base following remarks from RBA Governor Bullock that were viewed as lacking strong forward guidance. NOK also lagged as oil prices declined, with the cross nearing parity (1.001).
  • PBoC set USD/CNY mid-point at 6.7928 vs exp. 6.7730 (prev. 6.7911).

Fixed Income

  • UST are firmer, gaining around five ticks at best to a 108-24+ peak, just above Monday’s 108-22 high but still shy of last week’s 109-00 and 109-08+ peaks. The move was driven by the pullback in energy amid US–Iran diplomacy, with focus turning to incoming data and a 7yr auction.
  • Bunds trade in line with USTs but with slightly greater magnitude, holding around 10 ticks below the 125.21 peak while still posting gains of a similar amount. The upside is supported by softer energy prices, with some caution ahead of the Fed given the ~30% implied probability of a July hike.
  • Gilts opened on the front foot and outperform, gapping higher by around 10 ticks before extending to a 87.48 peak, taking out last week’s high. The benchmark then looks towards prior resistance levels at 87.60, 87.72 and 87.82.
  • Italy sell EUR 2.5bln vs exp. EUR 2-2.5bln 2.20% 2028 and 0.50% 2028 BTP and EUR 3bln vs exp. EUR 2.5-3bln 2.00% 2037 BTPei. 2.20% 2028: b/c 1.79x (prev. 1.51x) & average yield 2.89% (prev. 2.74%). 0.50% 2028: b/c 1.90x & average yield 2.92%.2.00% 2037 BTPei: b/c 1.4x & real yield 2.04%.
  • UK DMO sold GBP 750mln of 0.125% Jan 2028 Gilts via tender: average yield 4.090% (prev. 3.989%); b/c 5.35x (prev. 4.97x).
  • Netherlands sold EUR 2.99bln (exp. 2.0-3.0bln) 2.75% 2036 DSL: average yield 3.206% (prev. 3.209%).
  • Japan sold JPY 649bln in 10yr, 20yr and 30yr JGBs in enhanced liquidity auction; b/c 2.68 vs. Prev. 2.92. Highest accepted spread +0.004% vs. Prev. +0.020%. Allotment of bids at highest spread 87.6152% vs. Prev. 98.6666%. Australia sold AUD 800mln 4.25% October 2036 bonds, avg. yield 5.0345%, b/c 4.70.

Commodities

  • Crude futures are lower as US–Iran diplomacy (at face value) continue to improve sentiment, with Oman’s Hormuz proposal and reports of Iranian “flexibility” weighing on prices. Brent Oct’26 trades towards the bottom of a USD 83.58–85.60/bbl range, while WTI Sep’26 sits near the lower end of USD 80.36–82.43/bbl. Dutch TTF was also softer by almost 2%, finding support around EUR 56/MWh.
  • Precious metals are subdued despite lower oil, as geopolitical risk premium unwinds and caution emerges ahead of the FOMC.
  • Spot gold trades within a narrow USD 4,034–4,081/oz range, inside Friday’s USD 4,022–4,082/oz band.
  • Base metals are on a softer footing, though losses were contained by constructive geopolitics. The complex is weighed on by weak APAC tech sentiment, with 3M LME copper trading within a USD 13,620.00–13,739.83/t range.
  • Libya's NOC said it halted production at the El Feel oil field (80-90k BPD) and a partial halt to the Wafa field (20-30k BPD), according to Sky News Arabia & Al Hadath; due to protest action.
  • Saudi Aramco is mulling new oil pricing to reflect higher freight costs for cargoes loading from Egypt's Sidi Kerir to Asia.
  • QatarEnergy has extended LNG force majeure for European customers.

Trade/Tariffs

  • Germany said to be working on mapping China's weaknesses in preparation for potential future trade war, Bloomberg
  • reported.
  • China said it never deliberately pursues a trade surplus and vows to strengthen industry through global coordination, according to Xinhua.
  • US probes Chinese factories in Vietnam, stoking new levy fears.
  • US Trade Representative Greer said in Fox News interview new Section 301 tariffs shouldn't cause economic effects we're not already facing, adds tariff rates are comparable to previous tariffs and talks with Mexico are focused on ensuring balanced trade

Central Banks

  • Citadel Securities said Fed chair Kevin Warsh could surprise with a rate hike this week, which would bolster his credibility in the inflation fight.
  • RBA Governor Bullock said board is ready to hike cash rate further if needed, while key question is if tightening already delivered is enough to slow inflation. said:. Policy works with a lag, meaning the full impact of this year's rate increases has yet to emerge. The strongest contribution monetary policy can make is to preserve low and stable inflation. Further slowing in demand growth will likely be needed to bring inflation lower. Some additional easing in labour market conditions will probably be required. The economy has adjusted gradually and broadly in line with expectations. Monetary policy cannot solve Australia's weak productivity growth. Underlying inflation has developed as expected but remains too high. Businesses continue to report increasing non-labour cost pressures. The housing market has softened more than anticipated. Demand growth is moderating broadly in line with the May baseline forecasts. It remains too early to judge the full economic impact of the recent oil shock. Don't know what the board will decide at next meeting, will depend on whether board thinks policy is restrictive. Will have some difficult decisions to make if board thinks inflation is not coming down.
  • Philippine Central Bank Governor said large inflation impact seen in 2027 and 2028, adds peso decline could also cause increase in inflation, also sees small chance for aggressive tightening. said:When the dollar is strong, we limit intervention to maintain order.

Russia-Ukraine

  • Russia's Tyumen oil refinery halted operations on July 25 after a drone attack, sources say.
  • Finland temporarily closes airspace near Russia amid potential stray drone.
  • EU hesitates to target an Irish alumina plant accused of supplying Russia's war industry, amid fear of cutting off supplies critical for European industry, according to FT.
  • US President Trump will meet with Ukrainian President Zelensky at 09:30EDT/14:30BST and will meet with Israeli PM
  • Netanyahu at 11:30EDT/16:30BST on Tuesday.
  • US Senate is expected to start voting on Russia sanctions bill as soon as Tuesday during Ukrainian President Zelensky's visit.

Middle East

  • A military source from Sanaa, Yemen reportedly stated that the recent Yemeni operation showed that Saudi Arabia's oil facilities are now on the list of legitimate targets available to Yemen, Tasnim reported.
  • Iran has lost c. 230mln/CM of gas production capacity during the US-Iran conflict, JRTV reported.
  • Iran demonstrating 'flexibility' over Hormuz Strait operations, sources tell Al Jazeera.
  • Oman is said to have presented to Iran a proposal for a joint regional mechanism to manage the Strait of Hormuz with
  • "voluntary fees", according to Reuters sources. The source said Iran would not exercise sole control of the Strait.
  • Iran's Foreign Minister is said to have held phone called on Strait of Hormuz security with Saudi and Oman officials.
  • US-led talks between Israel and Lebanon will take place in Rome on August 4-6, according to a State Department official.
  • US official noted significant momentum in Israel-Lebanon peace track. Talks are to focus on redeployment and border issues in Lebanon.
  • US officials say that sanctions may damage Iran more than bombing and Trump administration said to focus on economic pressure to force Iran deal, according to Axios.
  • Oman's Foreign Minister held called with counterparts from Iran, Saudi Arabia, Qatar, Kuwait and Egypt to discuss efforts to reduce tensions, according to Iran International. Talks focused on pursuing practical, fair and sustainable understandings through political and diplomatic channels, ensuring safe navigation through the Strait of Hormuz, and restoring the uninterrupted flow of trade and global supply chains.
  • Iran will maintain special regime for passage of Russian vessels through the Strait of Hormuz, according to TASS.
  • Israel conducts artillery attack on eastern Gaza City, according to SNN.
  • Hamas delegations is carrying positive positions on the roadmap presented by Gaza representative Mladenov and the
  • mediators, provided Israel agrees, Al Jazeera reported citing sources
  • Israeli PM Netanyahu reportedly struggled to get on US President Trump's schedule for today, Axios reported, suggesting the Israeli PM's influence is waning.
  • Satellite images show that recent Iranian strikes hit Amazon (AMZN) data centres.
  • Reports of an Israeli drone airstrike in southern Lebanon, Al Jazeera reported.
  • Iranian, Omani, and Saudi Foreign Ministers held a phone call yesterday; notable details light.
  • Occurrences of explosions in Saudi Arabia and Jordan, ISNA reported citing sources; six explosions occurred near oil and gas facilities in the Al-Sharqiyah region of Saudi Arabia.
  • Reports of widespread drone attacks on eastern Jordan’s desert, Press TV reported.
  • Jordanian army said that they shot down a drone that violated Jordanian airspace in the eastern desert.
  • Iraqi sources report attack on separatist group's weapons depot in Sulaymaniya, Iraq.
  • Report noted that drone and rocket attack in Erbil was near the US consulate.
  • More than seven explosions heard in Erbil, northern Iraq with the headquarters of separatists rocked, while US Consulate in Erbil was also reportedly targeted, according to IRIB.
  • Explosions reported in Erbil, northern Iraq, with the Khor Mor Gas Field attacked, according to Tasnim and SNN.

US Event Calendar

To the day ahead now, economic data includes US June advance goods trade balance, wholesale inventories, July Conference Board consumer confidence index, Richmond Fed manufacturing index, business conditions, Dallas Fed Services activity, and May FHFA house price Index. We’ll also be getting a large batch of earnings including Visa, Coca-Cola, Boeing, NXP Semiconductors, Teradyne and Ford.

DB's Jim Reid concludes the overnight wrap

Tech concerns have been the dominant driver in Asia this morning as renewed worries over AI investment spending, and competition from cheaper Chinese companies, have triggered another selloff in global semiconductor stocks. The KOSPI (-10.11%) is the worst-performing index, heading for its steepest decline since early March during the onset of the US-Iran conflict with the sharp drop also prompting circuit-breaker measures earlier in the session. The benchmark is being weighed down by major chipmakers, with SK Hynix falling as much as -13% and Samsung Electronics declining around -12%. Additionally, the Nikkei (-4.10%) is also seeing sharp losses, falling to its weakest level since May 22 with Kioxia Holdings down another -18% and now roughly -60% lower from its peak in late June, around the time we discussed its remarkable story in the WOW! pack given it had gone from nowhere to become the largest company in Japan in a few months. A really remarkable story.

This sums up the past 24 hours as markets have been caught between a new sell-off in chipmakers and the positive news that the US-Iran pause from over the weekend would continue as both sides negotiate in talks. This meant that the S&P 500 (+0.02%) and Nasdaq (-0.16%) were little changed yesterday after an initial rally, whilst the Philly Semi Stock Exchange Index (-2.23%) fell further. The equity performance also wasn’t helped by new highs in real yields, though nominal 10yr Treasury yields (-2.8bps) came down as Brent crude fell -8.70% yesterday, in its largest decline since April. It is an additional -2.0% lower this morning, trading at $86.59/bbl, after being at $101 on Friday morning. S&P 500 (-0.22%) and Nasdaq (-0.74%) futures are lower this morning. 

Elsewhere overnight, the CSI 300 (-2.12%) and Shanghai Composite (-0.90%) are also lower but we have seen CXMT Corp.’s blockbuster debut in Shanghai over the last 24 hours. Their shares surged a stunning +466% after the IPO yesterday. The listing has reinforced investor confidence in Beijing’s drive for semiconductor self-sufficiency and has propelled the company to become China’s most valuable firm. It has also helped send shockwaves around the semis world. 

Turning to the Middle East, Trump said in an interview with Axios yesterday that he had paused strikes on Iran whilst negotiations are taking place, although if the talks fail, the US would “go back to very strong military action.” He also suggested in comments to reporters that “there’s a good chance” of a deal, saying repeatedly that talks were progressing. And while Iran’s Foreign Ministry suggested that no formal negotiations were taking place with the US, we saw continued reporting of talks between Iran and Oman on re-opening the Strait of Hormuz. There was also some more concerning news, not least with Houthi attacks on Saudi oil facilities over the weekend. But overall, the focus on talks sent front-month Brent crude -8.70% lower, while 6-month Brent futures were down -3.29% to $79.67/bbl.

The fall in oil prices meant that near-term inflation expectations also declined, with the US 1yr inflation swap down -10.5bps to 1.93%, while the Euro 1yr inflation swap (-18.0bps to 2.42%) fell even more. The decline in breakevens was partially offset by a rise in real yields, with the 2yr real Treasury yield up +7.7bps, while the 10yr real yield rose +1.5bps to 2.45%, its highest since October 2023. Put together, this left nominal yields a few basis points lower on the day, including for 10yr Treasuries (-2.8bps), bunds (-3.8bps), OATs (-4.5bps), and gilts (-2.6bps). 

The Treasury rally was more marginal at the front-end, with pricing of a Fed rate hike as soon as tomorrow stable at 38% yesterday. Staying with the Fed, in a separate interview onboard Air Force One Trump reiterated that interest rates in the US should be lower and that “Warsh’ll do the right thing,” saying “I know what he wants.” Meanwhile for the ECB, we did see a bit more of a pullback in hike expectations, with pricing of further hikes by the December meeting down -1.6bps to 42bps.

After rallying at the open on the retreat in oil prices, US equities whipsawed lower after chip stocks sold off. The catalyst was chip-equipment manufacturer ASML (-8.41%), whose shares fell after the Information reported that a Chinese company had successfully started mass production of deep ultraviolet lithography machines needed to create advanced semiconductors. The news led to a decline across other chip-equipment peers, with the Philly Semi Stock Exchange Index down -2.23% yesterday.  Nvidia (-4.99%) shares also fell after it was revealed that the company was working on AI deals worth more than $750bn, renewing investor worries on circular AI financing.

The broader equity mood music was better, however, with nearly two-thirds of the S&P 500 higher on the day and the small cap Russell 2000 up +0.62%. And in Europe, indices including the DAX (+1.04%), CAC 40 (+0.40%) and FTSE 100 (+0.42%) saw decent gains, although the Stoxx 600 (+0.02%) was dragged down by ASML and other semi companies.

Economic data was light yesterday but we did get Germany’s July IFO business climate release (86.6 vs 86.0) surprise to the upside, driven by the expectations component (86.7 vs 84.8 est), which may reflect the federal government’s recently adopted reform measures.

Finally, the Swiss Franc weakened after Bloomberg reported that the SNB expects to keep its interest rates at 0% until the end of 2027. The Swiss franc fell by about a quarter of a percent against the euro following the story, though its daily decline was a more modest -0.09%. 

To the day ahead now, economic data includes US June advance goods trade balance, wholesale inventories, July Conference Board consumer confidence index, Richmond Fed manufacturing index, business conditions, Dallas Fed Services activity, May FHFA house price Index, and France July consumer confidence. We’ll also be getting a large batch of earnings including Visa, Coca-Cola, Boeing, NXP Semiconductors, Teradyne and Ford.

Tyler Durden Tue, 07/28/2026 - 07:25

Tether's XAUt Gold Token Receives Shariah Certification To Expand Islamic Finance Access

Zero Hedge -

Tether's XAUt Gold Token Receives Shariah Certification To Expand Islamic Finance Access

Authored by Nate Kostar via CoinTelegraph.com,

Tether’s gold-backed token XAUt has received Shariah certification from Amanah Advisors, a move that could expand access to the token among Islamic financial institutions and investors seeking Shariah-compliant exposure to physical gold.

The certification found XAUt’s structure complies with key Islamic finance principles, including full backing by physical gold, the absence of interest and leverage, and transparent reserves.

Each XAUt token represents one troy ounce of physical gold stored in Swiss vaults, according to Tether.

The designation gives Tether a clearer pathway to market XAUt to Islamic financial institutions and investors that require Shariah-compliant investment products.

Tether said it expects the certification to support adoption across markets where Islamic finance is widely used, including the Gulf Cooperation Council, South Asia and parts of Africa.

XAUt is one of the largest tokenized gold products in the crypto market. Tether’s latest reserves report showed the token was backed by more than 707,000 troy ounces of physical gold worth over $3.3 billion as of March 31.

According to RWA.xyz data, the token’s onchain asset value has climbed from about $700 million in July 2025 to roughly $2.5 billion.

Tether tokenized gold. Source: RWA.xyz

Shariah-compliant crypto products gain traction

Cryptocurrencies have long divided Islamic scholars, with debates centering on whether digital assets comply with Shariah principles that prohibit excessive uncertainty, speculation and interest. As companies seek to address those concerns, Shariah-compliant digital assets have begun to emerge.

One early example came in 2025, when Bahrain-based AlAbraaj Restaurants Group adopted a Bitcoin (BTC) treasury strategy and said it planned to develop Shariah-compliant financial instruments to broaden access to Bitcoin across the Islamic world.

More recently, in April, Palm Azgar Finance expanded its Shariah-compliant PUSD stablecoin to ADI Chain, targeting the more than $3 trillion Islamic finance market. PUSD became the second stablecoin available on the network, allowing institutions to settle transactions using either a dollar-linked asset or a dirham-denominated token on the same infrastructure.

Meanwhile, Dubai has emerged as a leading crypto hub in the Middle East, continuing to expand its regulated digital asset market. Earlier this month, the emirate’s Virtual Assets Regulatory Authority (VARA) issued its 50th virtual asset service provider license, surpassing the number of licensed crypto firms in Hong Kong and Singapore.

Tyler Durden Tue, 07/28/2026 - 07:20

Powerful Quake Rocks Southern Japan

Zero Hedge -

Powerful Quake Rocks Southern Japan

A powerful 6.8-magnitude earthquake rocked southern Japan on Tuesday afternoon, injuring dozens, sparking fires, and damaging buildings.

The Japan Meteorological Agency has since called off a tsunami alert for the coasts of the Ariake Sea and the Yatsushiro Sea. The quake struck Kyushu Island, in Kumamoto Prefecture, shortly before 4:30 p.m. local time.

NHK footage showed severe damage to the Kyushu Expressway, smoke rising from homes, and a partially collapsed wall at Kumamoto Castle.

There were no reported abnormalities at the nearby Sendai Nuclear Power Plant, Cabinet Secretary Minoru Kihara told reporters.

Tyler Durden Tue, 07/28/2026 - 06:55

New British Defense Secretary Says Europe "Shaken Out Of Complacency" By Trump

Zero Hedge -

New British Defense Secretary Says Europe "Shaken Out Of Complacency" By Trump

Authored by Guy Birchall via The Epoch Times,

Newly appointed British Defence Secretary Wes Streeting said on July 26 that Europe will one day thank U.S. President Donald Trump for “shaking us out of our complacency” on defense spending.

Speaking to British broadcaster Sky News, Streeting said that he genuinely believes “when this period of history is written, Europe will thank President Trump for shaking us out of our complacency and forcing us to stand on our own two feet and end the period of overreliance on the United States for defense.”

Former Health Secretary Streeting was appointed to the defense role on July 20 by the new British Prime Minister Andy Burnham after he reshuffled the Cabinet following the resignation of his predecessor Keir Starmer.

“What he’s said about Europe isn’t unique to President Trump, the MAGA movement or the Republican Party. This has been a long-standing grain of U.S. frustration with Europe under Democratic and Republican presidents,” Streeting said, adding that “in the world we live in, it is right that we can act to secure ourselves.”

Trump has repeatedly called on the UK and other European countries to spend more on ​defense and become less reliant on the United States for the continent’s security.

The push for NATO allies to do more to secure their own defenses came as the United States reoriented its defense and security priorities.

Asked if he trusts Trump, Streeting said, “I don’t know him, but I do trust the United States,” adding that in his first week in the role he has had “a unique insight into just how close and integral that relationship [between the UK and the United States] is when it comes to defense and security.”

Discussing his conversation with U.S. Secretary of War Pete Hegseth, Streeting said he was “clear that we’ve not supported offensive action in Iran and we won’t support offensive action [in] Iran,” but added that there are “plenty of things that we can and should do together when it comes to securing the Strait of Hormuz.”

Streeting’s predecessor but one, John Healey, who now has the role of chancellor of the exchequer, the UK’s equivalent to treasury secretary, resigned his post last month in protest over the previous government’s reluctance to adequately fund defense spending, in a move that contributed to Starmer’s eventual downfall.

Healey announced his resignation in a highly critical public letter posted on X, in which he accused Starmer and the Treasury of being “unable” and “unwilling” to “commit the resources that the nation needs to defend the country at this time of rising threats.”

Burnham, in one of his first interviews since becoming prime minister, told the BBC he was “absolutely committed” to what was promised to NATO partners.

The UK has pledged to spend 3.5 percent of GDP on defense by 2035, in line with a new NATO target.

Burnham said that when he appointed Healey to be chancellor he was “very aware of what he had said about the critical importance of defense spending and the position that he had taken about that.”

“The first challenge facing us both is to ensure that the defense investment plan is fully funded and that’s the thing that’s right in front of us and we need to work that through as we go towards the budget later this year.”

Burnham also stated that he would be prepared to publicly disagree with Trump if British and American interests didn’t align but added that he had had a good first exchange with the president, finding him to be “really warm.”

Trump, discussing his phone call with Burnham in a July 20 post on Truth Social, said he had a “very good conversation” with the new British prime minister.

“We discussed many subjects, including the outstanding relationship we have had with the UK. We will be meeting in the not too distant future for topics of mutual interest,” Trump said, adding that Burnham “has got a big job ahead of him, but he will be able to do it and, of course, the U.S.A. will be there to help!”

He added that they discussed “North Sea Oil, Trade, the Military Alliance, Demining of the Hormuz Strait, and many other topics,” and said the call “went very well.”

Tyler Durden Tue, 07/28/2026 - 06:30

Russia Says Fuel Crisis Is Easing As Refineries Restart

Zero Hedge -

Russia Says Fuel Crisis Is Easing As Refineries Restart

By Charles Kennedy of OilPrice.com

The fuel crisis in Russia has started to ease in recent days as some refineries have restarted operations, Russia’s Deputy Prime Minister Alexander Novak said on Sunday.

“The situation is gradually stabilizing, a number of oil refineries became operational again. The balance is better now, and the situation at fuel filling stations has considerably improved, including when it comes to supplying agricultural producers,” Russian news agency Interfax quoted the official as saying.

“The situation remains quite tense in some regions, especially in some regions in Siberia. We are effectively resolving issues of fuel supply manually at the federal headquarters with regions and companies,” said Novak, who added that the crisis “situation is temporary.”

Amid peak demand season, Russia has been suffering from gasoline and diesel shortages for more than two months now, as Ukraine’s drone campaign to strike Russian refineries forced many large processing sites offline in the spring and early summer.

Early this month, Russia banned diesel exports to protect its domestic supply, creating a ripple effect on the already tight global diesel market.

Since the spring, Ukraine has been expanding its offensive to cripple supply in Russia by targeting fuel supply routes and vessels, alongside a persistent campaign to hit Russian refineries and force them out of operation.

In recent weeks, Ukrainian attacks turned their focus on targeting Russia-linked vessels in the Sea of Azov and the Black Sea, with more than a hundred vessels hit by drones, per the Ukrainian military.

The Russian oil export terminals on the Black Sea have also gone offline in recent days, following Ukrainian attacks.

Russia's largest Black Sea oil export terminal, Sheskharis terminal at Novorossiysk, effectively went offline last week, just days after drone attacks shut down the neighboring Caspian Pipeline Consortium terminal, tightening another artery that moves crude onto the global market.

The suspension of the CPC terminal loadings led to Kazakhstan cutting oil production, with output at Chevron’s giant Tengiz field reportedly falling by more than half as storage filled and producers were forced to reduce pipeline flows.

Tyler Durden Tue, 07/28/2026 - 05:00

Guess Who? First Foreign Leader Visits Burnham, UK's New Prime Minister

Zero Hedge -

Guess Who? First Foreign Leader Visits Burnham, UK's New Prime Minister

Guess who?... None other than Ukrainian President Volodymyr Zelensky has touched down in the UK for his meeting with new UK Prime Minister Andy Burnham.

"Volodymyr, you are the first head of state or government I have congratulated since taking office as Prime Minister. And that is no coincidence. It is intended to send a very clear message: We stand 100% with Ukraine," said Burnham.

The PM only took office last week, and Zelensky marks Burnham's very first international visitor. For Zelensky, Burnham is the fifth British prime minister since the Ukraine war started.

Naturally the first thing Burnham did on the foreign policy front was to pledge his "unwavering support" to Ukraine, "both through the war and beyond."

This is yet more affirmation of Burnham's intent to carry on with and expand on Britain's hawkish policies related to Russia and the Ukraine war which have persisted going back to Boris Johnson at the opening of the February 2022 conflict.

The UK was the earliest out the gate among Western powers to ship heavy weaponry to Kiev, and its support has only grown since.

Burnham while hosting Zelensky announced the UK is sharing the intellectual property of its "Stone Cloak" electronic jammers, which aim to interfere with Russian air defense systems, allowing drones and missiles to better penetrate Russian positions.

"Stone Cloak is the best of homegrown British innovation and proven on the frontline, and it will be vital to protecting our security in both our countries," Burnham said. According to more from the visit:

Burnham said the visit of the Ukrainian president was designed to "send a very clear message" about the UK's continued support.

"To put it simply, Volodymyr, I want you to know that we've got your back, you can count on me and you can count on us. You can count on the UK for as long as it takes," he said at a naval base in Portsmouth on Monday.

Zelensky, meanwhile, said Ukraine's relationship with the UK was "stronger than ever".

Addressing Zelensky, Burnham said: "I am personally with you 100%, Mr President, and I will honour every commitment this country has made to Ukraine in full."

Burnham added that he intended to visit Ukraine "soon" following the "very warm meeting" between the pair.

The prime minister also warned Moscow "should be in no doubt of our resolve" and that the UK would "not backdown until we achieve long lasting and just peace for Ukraine."

Zelensky was hosted for the meeting aboard the aircraft carrier HMS Queen Elizabeth docked at Portsmouth on England's south coast. After the Monday events in the UK, Zelensky is headed to Washington to meet with President Trump.

Burnham said the leaders had "talked at length" about Ukraine's need for more interceptors to shoot down inbound Russian missiles, "particularly in terms of Ukraine protecting critical national infrastructure during the winters."

Tyler Durden Tue, 07/28/2026 - 04:15

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