Good Morning & a great weekend

 

• Israel attacked military targets in Iran on Saturday night. The attacks were described as retaliation for an Iranian missile attack on Israel earlier this month. After several explosions in Tehran and neighboring military bases, Iran reported “limited damage” and promised a “proportional response”. The Israeli army declared that the attacks had been successfully completed and warned Iran against further escalation. The USA was informed in advance but did not take part. US President Biden called on Israel not to escalate further, but assured support in case of defense.
  
• Kamala Harris and Donald Trump made a stop in Texas on Friday, where Harris campaigned on the issue of abortion rights while Trump was interviewed on a podcast. Texas, a conservative state with a strict ban on abortion, is expected to serve as a powerful backdrop for Democrats. In Houston, Harris spoke about the threat to abortion rights posed by Trump and the Republicans and was welcomed on stage by singer Beyoncé. In Austin, Trump spoke with Joe Rogan about his ideas, such as replacing the income tax with tariffs. He criticized Harris' event as a “party” while Israel is in conflict with Iran. Harris' campaign is highlighting personal stories about the impact of abortion bans.
  
  
• Former Abercrombie & Fitch CEO Mike Jeffries pleaded not guilty on Friday to charges of international sex trafficking and prostitution. According to the indictment, from 2008 to 2015, Jeffries ran a scheme in which his associate James Jacobson recruited and paid men to travel to sexually service Jeffries and his partner in exchange for modeling jobs. Some of the victims had to consume alcohol, Viagra and other substances and signed non-disclosure agreements. If convicted, Jeffries faces up to life imprisonment.
  
  
• The number of people infected with E. coli linked to McDonald's Quarter Pounder burgers has risen to 75, the FDA has announced. Of the known cases, 22 people required hospitalization, and two developed the dangerous hemolytic uremic syndrome. The source of the outbreak appears to be from sliced onions supplied by Taylor Farms to about 900 McDonald's outlets in several U.S. states. McDonald's has recalled the affected onions and stopped sourcing from this location.
  
  
• Concerned about China's hypersonic weapons, the US Navy is planning to equip some of its ships with Patriot interceptor missiles. Lockheed Martin's PAC-3 MSE missiles could bolster the ships' defensive layers, as they are capable of countering maneuverable hypersonic weapons such as those China is developing. Testing and further development is needed to integrate the PAC-3 with the Navy's Aegis system. The PAC-3's recent successful deployments in Ukraine make it an attractive addition to defenses against China's advanced missiles such as the DF-27.
  
  
• A Russian drone attack on a multi-storey residential building in the Solomjanskyj district of Kyiv led to a fire on the upper floors on Friday evening, killing one person and injuring five others. Over 100 residents were evacuated while firefighters brought the blaze, which raged between the 17th and 21st floors, under control. Kyiv Mayor Vitali Klitschko reported that one teenager was among the victims, and one injured person is in hospital.
  
• Corona numbers are rising: This is the threat of infection with the XEC variant. More and more people are becoming infected with XEC. The corona variant multiplies primarily in the upper respiratory tract and can therefore spread more quickly.
  
• A decisive parliamentary election is about to take place in Georgia, dividing the country between the pro-European course and Russia. The liberal opposition hopes to replace the ruling party “Georgian Dream” and stop the rapprochement with Russia, while the latter presents itself as the guarantor of peace and warns against Western interference. The population is highly insecure, particularly due to economic problems, stagnating EU rapprochement and frequent protests. The outcome of the election is open, but both sides are preparing for possible unrest. Russia has already indicated that it will not allow a pro-Western “revolution”, making for tense days after the election.
  
• The Netherlands is planning stricter asylum rules and border controls from the end of November in order to turn away illegal migrants and tighten up asylum procedures. Residence permits are to be limited to three years, family reunification restricted and migrants housed in simpler accommodation. Border communities and transport companies criticize the measures as ineffective and a hindrance to traffic. A state of emergency, which would have allowed for extra-parliamentary measures, was rejected following legal concerns.
  
  
  
• Economy and stock market: The Ifo business climate index for Germany rose from 85.4 to 86.5 points, indicating a brightening mood in the economy. The DAX benefited and temporarily rose by 0.3 %. In the USA, the major indices also recorded gains.
  
• Collective bargaining: In several sectors, particularly in the service sector and in the metal and electrical industry, collective bargaining is pending, which could result in high wage demands.
  
• Corporate news: Daimler Truck, Siemens Energy and Porsche record price gains, while Mercedes shares fall due to weak quarterly figures. HelloFresh rises by 16%, while Barrick Gold falls by almost 3% due to problems in Mali.
  
• Market developments: Nervousness among investors is growing in view of the upcoming US elections. German government bonds and corporate bonds are showing weak trends.