sector

Thirty-two African nations now spend more servicing external debt than funding healthcare

More than 30 leading economists, former finance ministers and a central banker have called for immediate debt relief for low- and middle-income countries, warning that loan repayments are preventing governments from funding basic services.

In a letter released on Sunday, in advance of next month’s World Bank and IMF annual meetings, the group says countries are “defaulting on development” even when they keep up with debt payments.

“Countries around the world are paying exorbitant debt servicing costs instead of paying for schools, hospitals, climate action or other essential services,” the letter said.

Among the signatories are Nobel Prize-winning economist Joseph Stiglitz, former Central Bank of Colombia Governor Jose Antonio Ocampo, and former South African Finance Minister Trevor Manuel.

The economists say African governments now spend an average of 17 percent of state revenue on debt servicing. Thirty-two African nations spend more servicing external debt than funding healthcare, while 25 allocate more to debt than to education.

The letter says capping the average ratio of state revenue used on debt servicing at 10 percent could provide clean water to about 10 million people across 21 countries, and prevent approximately 23,000 deaths of children below five years of age each year.

The call comes as healthcare systems across Africa show signs of severe strain.

According to an ActionAid report published earlier this year, 97 percent of health workers in six African countries said their wages were insufficient to cover basic costs. Almost nine in 10 reported shortages of medicines and equipment due to budget cuts.

The public sector funding crisis is exacerbated by shrinking aid budgets. The United States, previously the world’s largest donor, has cut funding this year as the administration of President Donald Trump has shifted priorities away from aid.

The International Rescue Committee said 10 of the 13 countries hit hardest by the US aid cuts are African.

Economists warn that current debt relief efforts have failed. A framework under the auspices of the Group of 20 has so far relieved just 7 percent of the total external debt owed by at-risk countries.

They are calling on leaders to urgently reduce debt burdens, reform how the World Bank and IMF assess debt sustainability, and support a “Borrowers’ Club” so countries can negotiate from a position of strength.

“Bold action on debt means more children in classrooms, more nurses in hospitals, more action on climate change,” the letter concludes.

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The steel sector raised the alarm on Wednesday over the fate of Europe’s steel jobs due to the dual impact of Chinese surplus entering the EU market and punitive US tariffs targeting European steel production.

“Europeans have to do something. They have to find strong answers against these overcapacities because if they don’t we will lose all our jobs and all our confidence,” Manuel Bloemers, from the powerful German union IG Metall, told Euronews.

“In Germany, the steel industry is heavily impacted from these imports. Thyssenkrupp has a lot of layoffs planned,” he added.

European Commission Vice-President Stéphane Séjourné convened an emergency summit in Brussels with both steel industry leaders and unions to explore urgent solutions.

The European steel industry currently supports around 2.5 million direct and indirect jobs across the EU, with Germany, Italy and France being the main producers in 2024, according to data by EUROFER, a lobby that represents Europe’s leading steel producers.

Thyssenkrupp Steel alone has announced plans to cut up to 11,000 jobs — around 40% of its German workforce — by 2030. Across Europe, thousands of jobs are also under threat at ArcelorMittal, the world’s second-largest steel producer.

The past year was a challenging one for the sector, which saw a loss of 18,000 jobs in the EU, according to IndustriAll, the European steel union.

The situation may worsen with the new trade policy implemented by US President Donald Trump, industry representatives believe.

Since June, the US has imposed 50% tariffs on steel imports and an influx of heavily subsidised Chinese steel is diverted from the US to the EU market, lowering prices and revenues of the EU industry.

EUROFER has called for measures to slash foreign steel imports by half.

“The big risks we have as Europeans is that not only our exports into the US are being limited, but also the imports which are directed to the US usually are landing in an unprotected Europe,” Henrik Adam, president of EUROFER said.

After weeks of transatlantic trade tensions, the EU and the US reached a trade deal in July, which includes a 15% US tariff on all EU imports, while maintaining 50% tariffs on steel and aluminium — a bitter setback for the sector.

The Commission has told Euronews it will unveil new measures of protection for the market at next week’s European Parliament plenary session in Strasbourg.

‘Time is running out’

“Time is running out,” warned German MEP Jens Geier (S&D), describing the outlook as “anxious” for workers across the continent.

“This is a worthwhile timely initiative by the commission to propose this defence instruments since we all are eager to see action from the Commission,” the MEP said.

To respond to the crisis, the steel industry is proposing a tariff rate quota system: imports above a certain threshold would be subject to a 50% tariff. The threshold remains to be determined.

The quota aligns with a proposal launched in July by France, backed by 10 other EU member states, which notes that the new system “must apply to all third countries without exception.”

Since 2019, the European Commission has implemented safeguard measures to limit imports of foreign steel. However, those are set to expire in 2026, and EUROFER argues the current rules have already proven insufficient, with foreign steel imports doubling over that period.

The OECD published data in April showing that global steel overcapacities stood at 600 million tonnes in 2023 and are expected to rise to 720 million tonnes next year.

To stand its ground, the EU hopes the US will agree to lower its tariffs.

Negotiations between Brussels and Washington are expected to resume once the Commission has finalised its approach to protecting the sector.

The White House will then assess what it is willing to grant the Europeans. But talks are expected to be difficult, as Trump is pushing to bring production capacity back to US soil.

“Our steel and aluminum industries are coming back like never before. This will be yet another big jolt of great news for our wonderful steel and aluminum workers. Make America great again,” Trump wrote on his Truth Social platform in May.

The U.S. market is huge, with a combined market cap of around $63 trillion. There are all sorts of different ways you can slice and dice the U.S. stock market, with the top ETFs offering plenty of variety. But if you are a dividend lover, you are only interested in about half of the total universe, which cuts your investable universe down to “just” $30 trillion or so.

If that’s still a little daunting (it should be), then you need to get to know Schwab US Dividend Equity ETF (SCHD -0.39%). Here’s why it could be the top dividend exchange-traded fund (ETF) for you to buy.

Image source: Getty Images.

What does Schwab US Dividend Equity ETF do?

Schwab US Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index. Although the exchange-traded fund technically doesn’t do anything other than mimic the index, the index and the ETF are, in practice, doing the same things and can be discussed interchangeably. From here on out, the ETF will be discussed and not the index.

The first step in creating Schwab US Dividend Equity ETF’s portfolio is to winnow down the $30 trillion worth of dividend stocks to a more manageable number. To do this, only stocks that have increased their dividends for at least 10 years are examined for further consideration. Also eliminated are real estate investment trusts (REITs), because of their unique corporate structure that emphasizes dividends and avoids corporate-level taxation.

Once a core investable universe is created, Schwab US Dividend Equity ETF builds a composite score for each of the remaining companies. The score includes cash flow to total debt, return on equity, dividend yield, and a company’s five-year dividend growth rate. Essentially, the ETF is trying to find financially strong companies that are well run and that return material value to shareholders via regular, and growing, dividend payments. The 100 companies with the best composite scores are included in the ETF.

The ETF uses a market cap weighting approach, so the largest companies have the biggest impact on performance. And the list of holdings is updated annually. That’s a lot of work, but the expense ratio is a very modest 0.06%. At the end of the day, Schwab US Dividend Equity ETF is doing what most dividend investors would do if they bought stocks on their own at a cost that is very close to free by Wall Street standards.

Why you should buy Schwab US Dividend Equity ETF

Some caveats are important here. You can easily find higher-yielding ETFs. You can easily find ETFs that have had better price appreciation. Simply put, Schwab US Dividend Equity ETF isn’t a perfect investment choice for every investor. But it provides a very good balance between yield, price appreciation, and dividend growth over time.

SCHD data by YCharts

As the chart above highlights, the dividend and the ETF’s market price have both trended generally higher since its inception in October 2011. Now add in the well-above-market dividend yield of around 3.7% today, and the story gets even better. For reference, that’s just over three times greater than what you’d collect from an S&P 500 index (^GSPC 0.26%) tracking ETF like Vanguard S&P 500 ETF (NYSEMKT: VOO).

And since Schwab US Dividend Equity ETF’s portfolio is regularly updated, you don’t need to think about what’s in the portfolio. How it invests is more important than what it owns at any given moment. Its holdings will naturally shift along with the market over time. In other words, you just have to make one buy decision and let the ETF do the rest of the work for you.

A simple “one and done” ETF for dividend investors

There are a lot of public companies in the United States. And around half of those public companies pay dividends. Schwab US Dividend Equity ETF lets you cut through the $30 trillion worth of dividend noise to focus on just 100 of the best dividend stocks. And it basically picks dividend stocks the way a dividend investor would do it, looking for quality companies with growing businesses, attractive yields, and growing dividends. If you love dividends, Schwab US Dividend Equity ETF could easily be the top ETF for you.

The cryptocurrency market has had an extraordinary year, with top cryptos like Bitcoin (BTC -4.23%) and Ethereum (ETH -8.20%) setting new all-time highs. That upward trend has stalled recently. As I write this (September 25), Bitcoin has fallen 5% in the last week, Ethereum is down 13% and XRP (XRP -6.93%) has shed over 9% over the same time period.

What’s behind this lackluster performance? And will so-called Uptober — a term based on data that shows prices often go up in October — turn the crypto tides? Let’s dive in to learn more about three headwinds facing cryptocurrencies right now.

1. Money is flowing out of crypto ETFs

Crypto often suffers from a ‘buy the rumor, sell the news’ syndrome. Speculation drives prices up in anticipation of a big event, and then they fall because investors sell once it actually happens. In the run-up to the Fed rate cut on September 17, crypto prices rallied, and spot Bitcoin ETFs saw solid inflows.

But as investors digested Federal Reserve Chair Jerome Powell’s words, they became more cautious. Particularly after a speech this week where Powell spoke of a “challenging situation” in trying to manage employment risks against inflation pressures. Lower rates often make riskier assets more attractive, but not if the benefits are offset by other economic concerns.

Sentiment is important in crypto, and right now, the fear and greed index is firmly in fear territory. That’s reflected in steep outflows from spot crypto ETFs. Per the Block data, there were over $360 million in outflows from spot Bitcoin ETFs on September 22. Fidelity Wise Origin Bitcoin Fund (FBTC -4.10%) alone reported $277 million in outflows. That’s one of the biggest single-day outflows we’ve seen this year.

2. Over $1.6 billion liquidated in one day

CoinGlass data shows over $1.6 billion was liquidated on September 21 — the largest amount so far in 2025. Over $500 million in Ethereum positions and around $300 million in Bitcoin positions were wiped out. The liquidation highlights how leveraged positions can quickly cascade as falling prices trigger liquidations and push prices even lower.

The use of margin and leverage in cryptocurrencies can amplify price volatility. And leverage levels in crypto are increasing. Investors can use their crypto as collateral and essentially borrow money to take a bigger position. If the market moves in their favor, it can translate into higher returns. However, if prices go the other way and there isn’t enough collateral to back up the loan, the broker may liquidate and forcibly close the position.

3. Crypto treasury companies are faltering

This year has seen a surge in companies adding cryptocurrencies — predominantly Bitcoin and Ethereum — to their balance sheets. Public companies now own about 5% of the total Bitcoin in circulation, per data from BitcoinTreasuries. Their steady accumulation is one of the drivers behind Bitcoin’s incredible price rally.

Pioneered by Strategy (MSTR -8.78%), around 200 companies now hold crypto. Many of them have raised money with the sole purpose of buying more. It can act as a hedge against inflation, and any gains from price appreciation will help their bottom line. However, if Bitcoin’s price falls, so will the value of those holdings. There’s a risk that companies may have to sell their crypto to cover their debt.

Currently, the corporate treasury model is under scrutiny. Companies are buying fewer Bitcoins. And a quarter of Bitcoin treasury companies now have a market cap that’s lower than their crypto holdings, per K33. Some are borrowing money to finance share buybacks, raising questions about the model’s long-term viability.

Image source: Getty Images.

Further volatility ahead

There’s been a lot of talk in the cryptocurrency news about the potential for sentiment to shift in Uptober. That’s because data shows that Bitcoin prices often fall in September and rise in October.

But the factors that are dragging crypto prices down won’t change just because we’re in a different month. Pay attention to jobs and inflation data. Not only will those figures influence Fed decisions about further rate cuts, but they also give us a better idea of whether the economy is slowing.

For all the headwinds, Bitcoin is holding its head above $111,000, and we may see some positive drivers before the end of the year. More rate cuts are likely, as well as SEC approval of a flurry of crypto ETFs. Plus, the government may make further progress with crypto legislation.

Whether or not the bulls can regain momentum, the recent price swings are a reminder of Bitcoin’s volatility. This remains a risky and unpredictable asset, making it important to limit your crypto exposure to only a small percentage of your wider portfolio.

The S&P 500 closed Sept. 12 up 12% year to date, 62% over the last three years, and 97% over the last five years. Mega-cap growth-focused companies are largely responsible for driving the index to new heights.

The “Ten Titans,” which includes Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, Broadcom, Tesla, Oracle, and Netflix, now makes up over 39% of the S&P 500. And the technology sector alone makes up 34% of the index.

Here’s how the S&P 500 being dependent on the performance of a single sector impacts the broader market and your financial portfolio — and is a low-cost and straightforward way to bet on the continued dominance of tech stocks.

Image source: Getty Images.

Tech is even more dominant than it appears

The S&P 500 has a high concentration in the tech sector, namely because of just a handful of stocks. Nvidia, Microsoft, and Apple collectively account for approximately 20% of the S&P 500. Throw in Broadcom and Oracle, and that number jumps to close to 24%. So, nearly a quarter of the index is in just five tech stocks.

However, there are many leading tech-focused companies that aren’t in the tech sector. Amazon, which owns the largest cloud computing company by market share — Amazon Web Services — is in the consumer discretionary sector, along with Tesla, which is being valued more for its activities outside of electric vehicles, such as robotics, automation, and artificial intelligence (AI).

Alphabet and Meta Platforms are often thought of as big tech companies, but they are in the communications sector, along with Netflix.

The tech sector, plus these five companies, makes up 48.7% of the S&P 500. So, as big as the tech sector is, purely based on the companies that are classified as tech stocks, the real reach of tech-focused companies is far larger.

Let the S&P 500 work for you

The S&P 500’s concentration in the tech sector has expanded its valuation and made it more of a growth-focused index. This can pay off with outsized gains if tech keeps outperforming, but it can also lead to more volatility.

During the worst of the tariff-induced stock market sell-off in April, the Nasdaq Composite fell 24.3% and the S&P 500 also got crushed, falling as much as 18.9%. So while the S&P 500 used to be led by consumer staples, industrial, and energy companies, it has now become like a lighter version of the Nasdaq.

Any investor with exposure to index funds or market-cap-based exchange-traded funds (ETFs) will be impacted by this change. An S&P 500 index fund may seem diversified at first glance, with over 500 industry-leading companies. But the reality is that the S&P 500 is really betting big on just a handful of companies. This presents a dilemma for risk-averse investors, but an opportunity for risk-tolerant investors.

Risk-averse investors can reduce their dependence on mega-cap tech companies by mixing in value and dividend stocks or value-focused ETFs. Many low-cost ETFs have virtually the same expense ratio as an S&P 500 index fund, meaning there’s next to no added cost for picking an ETF that better suits your investment objectives.

However, some investors may feel that it’s best not to fight the market’s momentum, and if anything, lean into it. The Ten Titans are massive, but they are also extremely well-run companies with high-margin businesses and multi-decade runways for future growth. So some folks may cheer the fact that these companies have gotten so large and are dominating the S&P 500.

In that case, buying an S&P 500 index fund may be more interesting. Or even a sector-based fund like the Vanguard Information Technology ETF, which has a staggering 53.2% invested in Nvidia, Microsoft, Apple, Broadcom, and Oracle.

Navigating a tech-driven market

As an individual investor, you don’t have to measure your own performance against an index like the S&P 500. Rather, it’s best to invest in a way that suits your risk tolerance and puts you on a path to achieving your investment goals.

Regardless of your investment time horizon, I think it’s important for all investors to be aware of the current state of the S&P 500 and what’s moving the index. Knowing that so much of the index is invested in tech-focused companies explains why the S&P 500 has such a low dividend yield and a higher-than-historical valuation.

Put another way, the U.S. stock market is being increasingly valued for where its top companies could be years from now rather than where they are today. And that puts a lot of pressure on leading growth stocks to deliver on earnings and capitalize on trends like artificial intelligence and cloud computing.

Published on
29/08/2025 – 12:28 GMT+2

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Leading banks in the UK saw their share prices hit hard as news of a proposed new bank tax emerged.

NatWest share prices lost more than 4.7% nearing midday in Europe, Lloyds saw a dip of 4.5%, and Barclays lost 3.7%. This dragged down the benchmark stock index in London; the FTSE 100 was down by nearly 0.4% at time of reporting.

“NatWest, Lloyds and Barclays were the FTSE 100’s biggest fallers on Friday morning as investors wondered if the era of bumper profits, dividends and buybacks is now under threat,” Russ Mould, investment director at AJ Bell, said.

The idea for the new tax came in a proposal from think-tank IPPR to the UK government on Friday. They suggest charging commercial banks to compensate for the losses of the Bank of England’s massive government bond buying—‘quantitative easing’ (QE)—programme. This “will cost the taxpayers £22 billion (€25.4bn) a year in every year of this parliament,” said the IPPR in their report.

The so-called quantitative easing is a monetary policy tool which provided a boost to the UK economy and yielded significant profits for a while. However, since December 2021, the Bank of England has increased its interest rate from close to zero to a peak of 5.25% and that took a toll on the programme and led to interest rate losses.

The think tank said in its report that the government could compensate for the loss partially by implementing a ‘QE reserves income levy’ on commercial banks.

It is unclear where the government stands on this issue at the time of writing the article, but analysts say that it could choke growth in the UK.

“The issue is whether taxing the banks more will end up stifling the very growth the government is keen to foster, by crimping lending to businesses and households alike,” said Mould.

However, the public opinion could be supportive, given that “HSBC, Barclays, NatWest and Lloyds are expected to earn some £44 billion (€50.7bn) between them worldwide in 2025, their third-best year ever, after 2023 and 2024,” he adds.

The investment director noted: “These companies have enjoyed a strong run on the stock market in recent years, and they’ve also played an important role in lending money to small and large businesses, which helps to create jobs and support the UK economy.”

 Tariffs imposed by the Trump Administration on Southeast Asian nations—effective August 7, 2025—are likely to have a significant impact on the economies of the region. The second-quarter growth figures of Malaysia, Indonesia, and Vietnam would have brought some relief for all these countries. For long, ASEAN countries have benefited immensely from globalization and reasonable global geopolitical stability—especially stable ties between China and the US—and in recent years even from the China+1 policy of several companies—especially western ones—which sought to reduce their dependence upon China.

In the current economic and geopolitical situation, however, the ASEAN region faces multiple challenges due to the global turbulence, and countries in the region are devising tools to deal with the economic uncertainty.

Apart from diversifying economic relations, countries like Malaysia, Indonesia, and Vietnam are all focusing heavily on domestic spending. While Vietnam is focusing on infrastructure, Indonesia, under the leadership of Prabowo Subianto, is focusing heavily on welfare schemes, which include an ambitious free nutritious meal program, setting up of rural cooperatives, free health check-ups, and the construction of three million homes. During his first state of the nation address, the Indonesian president said:

‘Our goal of independence is to be free from poverty, free from hunger, and free from suffering.’

For 2026, Indonesia is likely to raise public spending to $233.92 billion. The free meal program will receive $20.7 billion. Prabowo’s ambitious plan to develop 80,000 rural cooperatives is also likely to incur massive public expenditures.

Focus on welfare and the impact of infrastructure projects in Indonesia.

In the case of Indonesia, the spending on welfare schemes has also resulted in lesser allocation towards Nusantara—the new administrative capital proposed by Prabowo’s predecessor, Joko Widodo, referred to as Jokowi. The reason for setting up a new capital was infrastructural and logistical problems in the current Indonesian capital—Jakarta. Nusantara, located in the East Kalimantan region of Indonesia, was chosen due to its geographical location and the fact that it may help in addressing disparities between the eastern and western parts of the country. While Jokowi had committed over $5 billion for the development of Nusantara, between 2022 and 2024, his successor has committed a little more than half the amount for the period between 2025 and 2029.

Unlike Jokowi, who focused heavily on the infrastructure sector, Prabowo Subianto is focused more on welfare. This is a major departure in terms of economic policy. Lesser focus on Nusantara could have several implications. First, according to many observers, it could send the wrong message to investors. Second, it may have domestic political ramifications. The Nusantara project was a brainchild of Jokowi, and it remains to be seen how the former president views the slowing down of the project.

In conclusion, ASEAN countries are being forced to explore new economic approaches and focus more on spending. As mentioned earlier, some ASEAN countries like Vietnam are focusing heavily on infrastructure, while Indonesia is expanding welfare programs. While focusing on the same is important, it remains to be seen what approach the current dispensation adopts vis-à-vis the Nusantara project, which is very important in terms of messaging to investors. It also remains to be seen whether the slowing down of the project will have any impact on Indonesia’s domestic politics.

The world’s top-selling carmaker joins a growing list of companies reporting profit hits because of tariffs

Toyota expects a $9.5bn hit from United States President Donald Trump’s tariffs on cars imported to the US, the largest of any company to date, underscoring growing margin pressures.

The world’s top-selling carmaker announced the forecast impact alongside its updated annual guidance on Thursday.

Toyota also cut its forecast for full-year operating profit by 16 percent, reflecting challenges for global manufacturers grappling with rising costs from US levies on cars, parts, steel and aluminium.

“It’s honestly very difficult for us to predict what will happen regarding the market environment,” Takanori Azuma, Toyota’s head of finance, told a briefing, vowing to keep making cars for US customers, regardless of tariff impact.

Azuma said the 1.4-trillion yen ($9.50bn) estimate also includes fallout that suppliers are facing, particularly those in the US importing parts from Japan, though he declined to say how much of the total was attributable to that.

Toyota’s North American business swung to an operating loss of 63.6 billion yen ($431.3m) in the first quarter, from a profit of 100.7 billion yen ($682.9m) a year earlier, as it took a hit of 450 billion yen ($3bn) from the tariffs.

Its broad production operations, which include US, Canadian, Mexican and Japanese plants, expose it to tariffs not only on direct exports but also on vehicles and parts shipped across borders within North America.

Last week, the automaker said it turned out some 1.1 million Toyota and Lexus brand vehicles in North America in the first six months of 2025, including more than 700,000 in the US.

Forecasts tumble

Toyota cut its operating profit forecast for the financial year to the end of March 2026 to 3.2 trillion yen ($21.7bn) down from a previous outlook of 3.8 trillion yen ($25.7bn).

It had previously estimated a tariff hit of 180 billion yen ($1.2bn) for April and May, but that was solely for the impact from tariffs on Toyota’s vehicles. It had not issued a full-year projection until now.

Rivals have reported smaller tariff hits so far: Jeep maker Stellantis said tariffs were expected to add $1.7bn in expenses for the year. General Motors (GM) has projected one of $4bn to $5bn for the year, while Ford expects a $3bn gross hit to pretax adjusted profit.

On Wednesday, Ford reported that second-quarter results took an $800m hit from tariffs.

Trade deals

The first-quarter results highlight the pressure US import tariffs are putting on Japanese automakers, even as a trade pact between Tokyo and Washington offers potential relief.

Under the deal agreed last month, Japanese auto exports into the US would face a 15 percent tariff, down from levies totalling 27.5 percent previously. But a timeframe for the change has yet to be unveiled.

Last week, Toyota reported record global output and sales for the year’s first half, driven by strong demand in North America, Japan and China, including that for petrol-electric hybrid vehicles.

The carmaker also announced on Thursday a plan to build a new vehicle factory in Japan, where car sales have been falling due to a shrinking population and declining ownership.

Toyota said it planned to start operations early next decade at the new plant, but has yet to decide production models.

On Wall Street, Toyota’s stock is on the decline amid its downward revised forecast. As of 11:30am in New York City (15:30 GMT), it is down by 1.6 percent. Competitors’ stocks are mixed. Ford is down 0.5 percent, Stellantis is up 2.4 percent and GM is up by about 0.7 percent.

Anticorruption agencies arrest four suspects after government forced to backtrack on push to strip them of autonomy.

Ukrainian authorities have detained several officials over a “large-scale corruption scheme” in the defence sector, just days after lawmakers restored the independence of the country’s two main investigative bodies.

The National Anti-Corruption Agency (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAP) said in a joint statement on Saturday that they made four arrests in connection with the scheme, which involved the procurement of military drones and signal jamming systems.

“The essence of the scheme was to conclude state contracts with supplier companies at deliberately inflated prices,” they said, adding that the suspects had received kickbacks of up to 30 percent of the contract amounts.

NABU and SAPO said they had caught a sitting lawmaker, two local officials and an unspecified number of National Guard personnel taking bribes. The suspects were not identified in Saturday’s statement.

The Ministry of Internal Affairs also said it had suspended the suspected National Guard members.

The announcement comes after Ukrainian President Volodymyr Zelenskyy came under criticism last month for trying to take away the anticorruption agencies’ independence and place them under the control of his prosecutor-general.

The agencies regained their autonomy after Zelenskyy’s move sparked the first antigovernment demonstrations in Ukraine since Russia invaded in 2022.

Zelenskyy, who enjoys far-reaching wartime powers, initially said he needed to bring the agencies under his control because they were inefficient and under “Russian influence”.

But he then said he had heard people’s anger and submitted a bill restoring the agencies’ independence, which was passed by lawmakers on Thursday.

“It is important that anticorruption institutions operate independently, and the law passed on Thursday guarantees them all the tools necessary for a real fight against corruption,” Zelenskyy said.

Ukraine’s European allies praised the about-face, having voiced concerns about the original defanging of the agencies.

Top officials had told Zelenskyy that Ukraine was jeopardising its bid for European Union membership by curbing the powers of its antigraft authorities.

In a statement about Saturday’s arrests, Zelenskyy said he was “grateful to the anti-corruption agencies for their work”.

Published on
20/06/2025 – 8:00 GMT+2

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The German Aerospace Industries Association (BDLI) wants only completed products aircraft and helicopters to be targeted by the EU for retaliatory tariffs – leaving the market for the supply of parts unscathed – if trade negotiations between the EU and the US founder, the group has told Euronews. It’s position aligns it with the French sector’s stance.

“If the EU must respond, counter-tariffs should focus strictly on fully finished aerospace end products – such as complete aircraft and helicopters – and explicitly exclude spare parts or critical products,” BDLI said in an email to Euronews. “This is essential to avoid unintended harm to European and global production networks.”

US aircraft are included in the European Commission’s draft listof €95 billion worth of US products that could face duties if ongoing negotiations fail. The list was open for industry consultation until 10 June and now awaits approval by EU member states.

Trade tensions between the EU and the US risk reignitingthe long-standing rivalry between aerospace giants Boeing and Airbus. However, the two economies’ production systems are tightly intertwined. For instance, the LEAP engine, used in both Airbus and Boeing jets, is co-produced by US-based General Electric and France’s Safran.

If passed, the bill will establish for the first time a regulatory regime for stablecoins, a fast rising financial product.

The United States Senate has passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry.

The bill, dubbed the GENIUS Act, received bipartisan support on Tuesday, with several Democrats joining most Republicans to back the proposed federal rules. It passed 68-30. The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Donald Trump’s desk for approval.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say that they could be used to send payments instantly.

If signed into law, the stablecoin bill would require tokens to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose the composition of their reserves on a monthly basis.

“It is a major milestone,” said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump’s first term.

“It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.”

The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used. The sector spent more than $119m backing pro-crypto congressional candidates in last year’s elections and had tried to paint the issue as bipartisan.

The House passed a stablecoin bill last year but it died after the Senate, in which Democrats held the majority at the time, did not take it up.

Conflict of interest

Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign.

Bo Hines, who leads Trump’s Council of Advisers on Digital Assets, has said the White House wants a stablecoin bill passed before August.

Tensions on Capitol Hill over Trump’s various crypto ventures at one point threatened to derail the digital asset sector’s hope of legislation this year as Democrats have grown increasingly frustrated with Trump and his family members promoting their personal crypto projects.

“In advancing these bills, lawmakers forfeited their opportunity to confront Trump’s crypto grift – the largest, most flagrant corruption in presidential history,” said Bartlett Naylor, financial policy advocate for Public Citizen, a consumer rights advocacy group.

Trump’s crypto ventures include a meme coin called $TRUMP, launched in January, and a crypto company he partly owns, called World Liberty Financial.

The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children.

Other Democrats have expressed concern that the bill would not prevent Big Tech companies from issuing their own private stablecoins, and argued that legislation needed stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers.

“A bill that turbocharges the stablecoin market, while facilitating the president’s corruption and undermining national security, financial stability and consumer protection is worse than no bill at all,” said Senator Elizabeth Warren, a Democrat, in remarks on the Senate floor in May.

The bill could face further changes in the House.

In a statement, the Conference of State Bank Supervisors called for “critical changes” to mitigate financial stability risks.

“CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors,” said president and CEO Brandon Milhorn in a statement.

Khan Younis, Gaza – In the ruins of his home in Khan Younis, 75-year-old Shaker Safi gently thumbs through fading photographs of his son Mohammed’s sporting career.

Medals, trophies, team huddles, and group photos of young athletes coached by Mohammed now serve as a haunting memorial to a dream destroyed by war.

On November 15, 2023, Mohammed Safi – a football coach and physical education teacher – was killed in an Israeli air strike.

He had spent years building a legacy of hope through sport, training at schools and community clubs, and transforming underdog teams into local champions.

A graduate in physical education from Al-Aqsa University, Mohammed was the head coach of Al-Amal Football Club in southern Gaza and was widely admired for his work nurturing young talent aged between six and 16.

“My son dreamt of representing Palestine internationally,” Shaker says, surrounded by remnants of his son’s accolades. “He believed sport could lift youth from despair. But war reached him before he could reach the world.”

Now displaced, Mohammed’s wife Nermeen and their four children – 16-year-old Shaker Jr, Amir, 14, Alma, 11, and Taif, 7 – live with the painful void created by his death.

The children cling to their father’s last football and coaching notes as keepsakes.

Nermeen, an art teacher, gently wipes away Taif’s tears when she asks, “Why did they take Daddy from us?”

“He was a man of dreams, not politics,” Nermeen says. “He wanted to become an international referee. He wanted his master’s degree. Instead, he was killed for being a symbol of life and youth.”

Mohammed Safi is one of hundreds of athletes and sports professionals who have been killed or displaced since the war began.

According to the Palestinian Olympic Committee, 582 athletes have been killed since October 7, 2023, many of them national team players, coaches, and administrators.

Sports replaced by survival

For those who remain alive in Gaza, survival has replaced sporting ambition.

Yousef Abu Shawarib is a 20-year-old goalkeeper for Rafah’s premier league football club.

In May 2024, he and his family fled their home and took shelter at Khan Younis Stadium – the same field where he once played official matches.

Today, the stadium is a shelter for displaced families, its synthetic turf now lined with tents instead of players.

“This is where my coach used to brief me before games,” Yousef says, standing near what used to be the bench area, now a water distribution point. “Now I wait here for water, not for kickoff.”

His routine today involves light, irregular training inside his tent, hoping to preserve a fraction of his fitness. But his dreams of studying sports sciences in Germany and playing professionally are gone.

“Now, I only hope we have something to eat tomorrow,” he tells Al Jazeera. “The war didn’t just destroy fields – it destroyed our futures.”

When he looks at the charred stadium, he doesn’t see a temporary displacement.

“This was not collateral damage. It was systematic. It’s like they want to erase everything about us – even our games.”

Hope beneath the rubble

Still, like the patches of grass that survived the blasts, some hope remains.

Shadi Abu Armanah, head coach of Palestine’s amputee football team, had devised a six-month plan to resume training.

His 25 players and five coaching staff had been building momentum before the war on Gaza. The team had competed internationally, including in a 2019 tournament in France. Before hostilities began, they were preparing for another event in November 2023 and an event in West Asia set for October 2025.

“Now, we can’t even gather,” Shadi says. “Every facility we used has been destroyed. The players have lost their homes. Most have lost loved ones. There’s nowhere safe to train – no gear, no field, nothing.”

Supported by the International Committee of the Red Cross, the team had once symbolised resilience. Training sessions were more than drills – they were lifelines. “For amputees, sport was a second chance,” Shadi says. “Now they are just trying to survive.”

Shadi himself is displaced. His home, too, was bombed. “The clubs I worked for are gone. The players are either dead or scattered. If the war ends today, we’ll still need years to bring back even a fraction of what was lost.”

He adds, “I coached across many clubs and divisions. Almost all their facilities have been reduced to rubble. It’s not just a pause – it’s erasure.”

A systematic erasure

The scope of devastation extends beyond personal loss.

According to Asaad al-Majdalawi, vice president of the Palestinian Olympic Committee, Gaza’s entire sporting infrastructure is on the brink of collapse. At least 270 sports facilities have been damaged or destroyed: 189 completely flattened and 81 partially damaged, with initial estimates of material losses in the hundreds of millions of dollars.

“Every major component of Gaza’s sports system has been hit,” al-Majdalawi told Al Jazeera. “The Olympic Committee offices, sports federations, clubs, school and university sports programmes – even private sports facilities have been targeted. It’s a comprehensive assault.”

Among the fallen are high-profile athletes like Nagham Abu Samra, Palestine’s international karate champion; Majed Abu Maraheel, the first Palestinian to carry the Olympic flag at the 1996 Atlanta Games; Olympic football coach Hani al-Masdar; and national athletics coach Bilal Abu Sam’an. Hundreds of others remain injured or missing, complicating accurate assessments.

“This is not just loss – it’s extermination,” al-Majdalawi says. “Each athlete was a community pillar. They weren’t numbers. They were symbols of hope, unity, and perseverance. Losing them has deeply wounded the Palestinian society.”

He warns that beyond the immediate human toll, the interruption of sports activities for a year and a half will result in physical, psychological, and professional regression for remaining athletes. “You lose more than muscle and skill – you lose purpose.”

A global silence

Al-Majdalawi believes the international response has been alarmingly inadequate. When Gaza’s sports community reaches out to global federations, Olympic bodies, and ministers of youth and sport, they’re met with silence.

“In private, many international officials sympathise,” he says. “But at the decision-making level, Israel seems to operate above the law. There’s no accountability. It’s like sport doesn’t matter when it’s Palestinian. The global and international sports institutions appear complicit through their silence, ignoring all international laws, human rights, and the governing rules of the international sports system,” he says.

He believes that if the war ended today, it would still take five to 10 years to rebuild what has been lost. Even that gloomy timeline is based on the assumption that the blockade ends and international funding becomes available.

“We have been building this sports sector since 1994,” al-Majdalawi says. “It took us decades to accumulate knowledge, experience, and professionalism. Now, it’s all been levelled in months.”

As the war continues, the fate of Gaza’s sports sector hangs by a thread. Yet amid the ruins, fathers like Shaker Safi, athletes like Yousef, and coaches like Shadi hold on to one unyielding belief: that sport will once again be a source of hope, identity, and life for Palestinians.

This piece was published in collaboration with Egab.