Rapid Support Forces Announce Ceasefire
The Rapid Support Forces, a militia group fighting against Sudan’s ruling military junta, has announced a 72-hour ceasefire for the Muslim holiday of Eid al-Fitr, with the purpose of opening up humanitarian corridors to evacuate citizens. The army has not responded to the announcement. Previous attempts at a ceasefire since fighting began on April 15th have failed. Prior to the announcement of the ceasefire, the capital city of Khartoum was bombed and shelled overnight.
Dominic Raab Resigns Amid Bullying Probe
Dominic Raab has resigned as Britain’s deputy prime minister and justice secretary after a bullying probe was released. The inquiry was ordered by Prime Minister Rishi Sunak in November, following complaints from civil servants regarding Raab’s intimidating behaviour towards subordinates. Raab has stated that the report sets a “low” bar for bullying and that its release creates a “dangerous precedent”.
Russian Warplane Accidentally Bombs City
A Russian Su-34 warplane accidentally bombed the Russian city of Belgorod, near the Ukrainian border, injuring two people and damaging several buildings. The country’s ministry of defence has stated that it will investigate the “emergency release of an air ordnance.”
Eurozone Activity Rises
The HCOB flash eurozone composite purchasing managers’ index, a measure of activity in manufacturing and services, has risen for the sixth consecutive month in April to an 11-month high of 54.4, up from 53.7 last month. Buoyant demand, easing price pressures and rapid employment growth have contributed to the expansion. Economists predict that this growth will lead to the European Central Bank raising interest rates next month. The result was above the flat reading forecast by economists polled by Reuters.
UK Economic Activity Accelerates
Economic activity has accelerated at the fastest pace in a year in the UK, according to a survey of British businesses. The S&P/Cips global flash UK composite purchasing managers’ index has risen to 53.9 in April, up from 52.2 in March, beating analysts’ consensus forecast of 52.5. The index has remained above 50 for the third successive month, indicating a majority of businesses reporting a month-on-month expansion. Input cost inflation has slowed due to falling fuel and energy prices.
UK Retail Sales Contract in March
UK retail sales have contracted by a higher amount than expected in March due to consumers tightening their belts amid high inflation and rising borrowing costs. Official data from the Office for National Statistics has revealed that the volume of retail sales fell 0.9% between February and March, ending two successive months of rising sales volume. The figure is lower than the consensus analyst forecast of a 0.5% decrease. Bad weather also kept shoppers away from the high street.
Bank of England Likely to Increase Interest Rates
The Bank of England’s decision to pivot to pausing its rapid interest-rate rises was previously seen as on a knife-edge. However, markets and economists are now in little doubt that another rate increase will occur at the May 11 meeting. Resilient data this week, including inflation, wage growth, consumer confidence and the purchasing managers’ index, has signaled that a resilient economy will keep inflationary pressures on the boil.
Japan’s Inflation Outpaces Expectations
Japan’s inflation continues to outpace expectations, which has added intense scrutiny to the Bank of Japan’s policy meeting next week. Consumer prices, excluding fresh food, have risen by 3.1% in March from a year ago, matching the pace of the previous month. A separate gauge of price growth that excludes both energy and fresh food also proved stronger than expected, climbing to 3.8% for its highest reading since 1981. The figure indicates unexpected stickiness in underlying price trends.
US Willing to Accept Costs to Protect National Security
Janet Yellen, the Treasury Secretary, stated that the US was willing to accept economic costs to protect national security interests against China while calling for cooperation from Beijing. She emphasized that national security is a top priority, and the US would not compromise on such concerns, even if it creates trade-offs with economic interests.Eurozone Activity Rises, UK Retail Sales Contract in March, Japan’s Inflation Outpaces Expectations