Ukraine Trades Accusations With Russia of Shelling. Ukraine
and Russia traded accusations of cross-border shelling as tensions
between the ex-Soviet neighbors intensified. “Ukraine’s
border checkpoint at Marynivka in the Donetsk region was attacked from
Russian territory by mortars, Grad missile systems and artillery,” at 6
p.m. and 11 p.m. local time yesterday, damaging infrastructure and
equipment, a Ukrainian Defense Ministry spokesman, Andriy Lysenko, said
in Kiev today. Rossiya 24 state television said about 40 artillery
shells landed in the Rostov region of southern Russia from across the
border and one woman may have been injured. It showed pictures of
unexploded shells near a border post. While both countries have
swapped such accusations before, the latest allegations come as the
pro-Russian rebel stronghold of Donetsk, less than 100 kilometers (60
miles) from the border, awaits a possible onslaught by Ukrainian
EU Vows Russia Action as Merkel Said to See Sanctions Next Week. The European Union said it’ll work
“swiftly” to hit Russian industries with sanctions as support
grows for the package of trade restrictions outlined this week. German Chancellor Angela Merkel is pushing her colleagues to sign off on the measures by the end of next week and is
prepared to accept curbs on her country’s technology exports to
win support, according to two German government officials, who
asked not to be named because the discussions are private.
Australia Risks Tension With Ukraine Rebels Sending Armed Police.
Australian Prime Minister Tony Abbott’s plan to deploy armed police
officers to the site of the Malaysian Air crash risks increasing tension
in the Ukrainian
territory held by Russian-backed rebels, according to political
analysts based in Berlin and Brussels.
Russia Unexpectedly Raises Key Rate Third Time on Ukraine.
Russia’s central bank unexpectedly increased borrowing costs for a
third time this year as the intensifying conflict over Ukraine and the
threat of wider sanctions squeeze the economy and undercut the ruble. The central bank in Moscow increased its one-week auction rate to 8 percent from 7.5 percent, according to a statement on its website today.
Norway on High Alert Amid Warnings of Attack Next Week. Police
in Norway are on high alert after receiving intelligence that nationals
returning from Syria may be plotting a terrorist attack within days
Scandinavian country. Information obtained by Norway’s security service, PST,
suggests an attack could be imminent, the unit’s chief,
Benedicte Bjoernland, said yesterday. Authorities have
strengthened their presence at Norway’s borders, airports and
train stations, and police in all districts are at a heightened
state of preparedness.
China Credit Trust Delays Payment on $210 Million Product. China
Credit Trust Co. delayed payments on a 1.3 billion-yuan ($210 million)
high-yield trust product backed by coal-mining assets after the borrower
failed to raise funds to repay investors. The Beijing-based company
will extend the maturity of Credit Equals Gold No. 2, which was
scheduled to expire today, according to a statement distributed to
investors in the product and seen by Bloomberg News. China Credit Trust
aims to sell
assets held by the product within 15 months to repay investors,
the July 24 statement showed.
Bond ETFs Swelling in Europe as Trading Debt Gets Tougher. Bond
buyers are pouring record
amounts of money into exchange-traded funds in Europe that buy debt as
central bank largess boosts demand and makes investors less willing to
part with their fixed-income assets. Investors deposited more than $16
billion into ETFs that purchase debt from high-yielding corporate notes
to sovereign bonds, almost quadruple the amount in the same period
last year, according to data compiled by Bloomberg. BlackRock Inc.
(BLK), the world’s biggest provider of ETFs, estimates bond-fund inflows
will climb to about $20 billion by year-end.
European Stocks Fall as LVMH Leads Luxury Retailers Lower. European stocks fell the most in a week, extending losses in the
final half hour of trading, as companies including LVMH Moet Hennessy
Louis Vuitton SA and Statoil (STL) ASA posted earnings that missed forecasts.
LVMH fell the most since August 2011 after the world’s largest
luxury-goods company also said demand weakened in Asia. Air France-KLM
Group climbed 2.6 percent after reporting second-quarter profit that
beat estimates. Sky Deutschland AG added 1.4 percent after
British Sky Broadcasting Group Plc offered to buy the German
broadcaster. Royal Bank of Scotland Group Plc rallied the most in more
than four years after saying first-half profit almost doubled. The Stoxx Europe 600 Index slid 0.7 percent to 341.95 at the close of trading.