Ukrainian President Volodymyr Zelenskiy finds himself in an impossible bind as he arrived today in Washington. He risks US President Donald Trump’s wrath if he doesn’t accept a quick deal to end Russia’s war in Ukraine by paying the disastrous price of ceding territory for vague security guarantees. This outcome could see Moscow come back stronger in a few years’ time.
Zelenskiy and his European entourage will seek clarity from Trump on exactly what security guarantees the US is willing to provide as it attempts to orchestrate a meeting with the Ukrainian president and Putin. Among the group accompanying Zelenskiy are people Trump has struck a strong personal rapport with, including NATO Secretary General Mark Rutte and Finnish President Alexander Stubb. — Jennifer Duggan
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Extremely dangerous conditions blanket nearly all of Spain, sparking 42 fires in northwestern, central and southern parts of the country. Thousands of people have been evacuated. High-speed train service between Madrid and Galicia was suspended and about 15 roads and highways have been shut down. The Iberian Peninsula this weekend became the hardest hit by wildfires that have broken out across Europe following four major heat waves this summer, with blazes breaking out from the UK and France through Greece, Italy and Turkey.
People run to escape the flames from a wildfire near the village of Melon, northwestern Spain, on August 17. Photographer: MIGUEL RIOPA/AFP
Switzerland is seeing a more than fivefold surge in mergers and acquisitions that’s outpaced most of its European peers, giving bankers hopes for a lucrative payout this year. The volume of takeovers targeting Swiss companies has jumped 465% to $16.7 billion so far this year, according to data compiled by Bloomberg. Private equity firms are particularly active, with Advent announcing yesterday it has agreed to acquire Zurich-listed chipmaker U-blox Holding in a deal valued at 1.05 billion Swiss francs ($1.3 billion). The wave of dealmaking comes against a backdrop of macroeconomic challenges with Swiss companies facing a potential hit to revenues after the US unexpectedly imposed a 39% tariff.
Money markets are adding to bets the Bank of England will keep interest rates on hold at 4% for the rest of this year as signs of faster inflation and a more resilient economy reduce the case for more easing. Traders today decreased wagers on another quarter-point rate cut this year, with swaps at one stage implying a less than 50% chance of such a move. A reduction was fully-priced earlier this month. The move comes before inflation data due Wednesday is forecast to show the headline rate increased to 3.7% in July.
The once-yawning gap between Italian and French benchmark borrowing costs shrunk to below 10 basis points, reflecting a shift in how investors rank European government debt. Less than three years ago, Italian 10-year bond yields were nearly 200 basis points more than the equivalent French rate. That difference has since plunged to the narrowest since 2005. Yields on shorter-dated Italian bonds have already fallen below those on French peers. Strategists at Commerzbank AG last month forecast that the 10-year gap will close completely.
Novo Nordisk is slashing the cost of Ozempic for cash-paying patients after the diabetes shot became the poster child for high US drug prices. Patients can now get Ozempic for $499 a month — about half of its US list price — through Novo’s cash-pay pharmacy NovoCare, the company said today. It’s also partnering with GoodRx Holdings to offer Ozempic and its sister weight-loss drug Wegovy for the same price at pharmacies across the US. President Donald Trump has been putting pressure on pharmaceutical companies to lower prices, including sending letters to drugmakers like Novo demanding action.
Deutsche Pfandbriefbank is said to be working on a debut significant risk transfer tied to about $2 billion of US commercial real estate loans, as the German lender seeks to exit the US market. It is understood the Garching-based bank is being advised by Deutsche Bank and Alvarez & Marsal, and is sounding out investors about the potential transaction. In June, PBB said it would discontinue its US business completely and planned to wind down, securitize or sell a portfolio of about €4.1 billion ($4.8 billion) of US commercial real estate loans.
Kenya wants to ease tight public finances by borrowing from citizens living abroad. It is planning a so-called diaspora bond of between $250 million and $500 million. The East African nation is in talks with a unit of the World Bank on how to structure the security, said Prime Cabinet Secretary Musalia Mudavadi. It aims to grow the program to $3.8 billion over time. Kenyahas been in a fiscal bind since having to backtrack on planned tax hikes after deadly protests in 2024.
