
Merz Signals Strained U.S.-German Ties as Defense and Trade Risks Rise
Merz says unconditional transatlantic friendship may be over, highlighting defense spending, trade risks and Germany’s 2026 growth outlook.

Merz says unconditional transatlantic friendship may be over, highlighting defense spending, trade risks and Germany’s 2026 growth outlook.

Russia opened three days of State Duma voting, including in occupied Ukrainian territories, as markets watch sanctions and governance risk.

The Slavneft Yaroslavl refinery has halted processing and fuel shipments after drone strikes damaged key units, adding pressure to Russia’s fuel market.

The Fed raised rates by 25 basis points to 3.75%-4%, its first hike in three years, citing inflation and drawing criticism from Donald Trump.

Trump warned the EU of steep tariffs or a trade halt if its proposed Canada partnership is deemed hostile, widening a fast-moving trade dispute.

Russian strikes injured civilians in Kyiv and Odesa and killed one person in Sumy, keeping geopolitical risk in market focus.

U.S. prosecutors charged alleged Russia-linked RIS Network figures with terrorism financing and murder-for-hire conspiracy tied to Ukraine’s allies.

The House cleared debate on a Graham sanctions bill that could authorize 100% tariffs on major buyers of Russian oil and gas.

Ukraine’s parliament will consider seven difficult bills tied to billions in Western aid as Kyiv seeks to close a defense-driven budget gap.

Overnight attacks hit a Russian refinery and sites in Taganrog, raising market focus on energy infrastructure, logistics and defense-linked assets.

Russian drone strikes hit Kyiv fuel stations, warehouses and Odesa port-linked infrastructure, raising fresh logistics and Black Sea risk concerns.

China urged the U.S. to stop preparing for space war after Washington confirmed orbital weapons systems for defense and offense.

Trump said the U.S. will remove a 10% tariff on Irish whiskey imports, a trade-policy signal watched by beverage markets.

Saudi Arabia’s East-West pipeline shutdown could threaten 4% of global oil supply as traders await repair timelines and export updates.

Canada is negotiating to join the EU’s €90 billion Ukraine loan program, with a contribution target expected before an October summit.

Mass protests across Germany followed AfD’s Saxony-Anhalt win, adding a political-risk signal for investors watching Europe’s largest economy.

Zaporizhstal remains halted after a third Russian missile strike in a month caused preliminary critical damage to key plant infrastructure.

Russian attacks damaged logistics, warehouse, residential and power infrastructure in Odesa, Kyiv region and Mykolaiv, injuring two people.

Russia is expected to attend next week’s G20 energy meeting in Houston as geopolitical risks keep energy security in market focus.

Georgia detained former defense minister Giorgi Baramidze on a treason-related accusation tied to comments about the Abkhazia war.

Lukashenko said Belarus will inspect all armed forces, including mobilization readiness, adding a fresh geopolitical signal for markets.

Houthi forces captured Yemen’s port city of Mocha, increasing market concern over Bab el-Mandeb shipping risks and potential oil price pressure.

Zelensky expects late-September U.S. talks on grain exports and energy security as markets track Black Sea disruption and infrastructure risks.

France warned CNews it could face criminal proceedings if expelled ex-RT France chief Ksenia Fedorova returns to air by video link.

A drone attack sparked a fire at an industrial site in Russia’s Yamal gas region, raising new market focus on infrastructure risk.

Norway says a drone threat delayed Zelenskyy’s flight from Moldova to Oslo, as reports pointed to Russian drone activity near the border.

Russian strikes killed civilians in Sumy and Mykolaiv and damaged port, warehouse, postal, residential and civilian infrastructure, officials said.

A drone attack on Novorossiysk sparked fires at a fuel oil terminal and residential building, putting Russia’s key Black Sea export hub back in focus.

CENTCOM said U.S. forces destroyed five Iranian oil tankers after two ballistic missile attacks on a U.S. Navy ship.

Germany’s foreign minister says German defense firms should benefit from Berlin’s support for Ukraine and take part in procurement.

Finland has completed a 200-kilometer fence on its Russian border, reinforcing Europe’s security infrastructure trend.

Macron is asking Brussels for an EU-wide social media ban for under-15s after France’s Constitutional Council blocked a national law.

Kyiv reported drone and ballistic missile strikes across residential, educational, industrial and logistics sites, with six people injured preliminarily.

AfD’s projected 44% win in Saxony-Anhalt triggered warnings from Poland and France, adding a fresh political risk signal for European markets.

AfD won 43.8% in Saxony-Anhalt, but the seat math leaves coalition talks highly uncertain and BSW potentially decisive.

The EU cancelled a planned defense expert group after German and Italian objections, delaying a policy signal watched by defense-sector investors.

Putin backed using volunteers deemed fully unfit for service in rear-area drone defense, adding to signs of manpower pressure in Russia’s war economy.

Germany is preparing counter-drone and cyber defenses after blaming Russia for a Leipzig airport sabotage attempt involving drones.

U.S. envoys move from Moscow to Kyiv after discussing concrete Ukraine war plans with Putin, adding a fresh geopolitical catalyst for markets.

Ukraine’s NABU and SAP searched the prosecutor general’s office in a fraud call-center probe involving alleged protection and asset laundering.

Latvia says a suspect in the Leipzig airport sabotage case had been living in Russia, as Germany expands measures affecting transport security and sanctions enforcement.

Volkswagen approved a historic restructuring plan with about 50,000 job cuts, a smaller model range and new profit and investment targets.

Putin said chances for peace in Ukraine exist, while Zelensky said U.S. delegates will visit Kyiv and Moscow to discuss a possible settlement.

Norway has detained the Russian research vessel Professor Molchanov at Svalbard after a court-backed claim by Naftogaz to recover debt from Russia.

Russia said it will close Goethe-Institut branches after Germany moved to terminate an agreement covering the Russian House in Berlin.

ICAO urged stronger safeguards for civilian aircraft after Ukraine warned that rising military activity is making Russian airspace unsafe.

Uzbekistan’s decade of business reforms has reshaped registration, licensing, taxation and investor-facing legal protections.

Putin told Pashinyan that Armenia’s move toward EU membership would effectively mean leaving the EAEU, sharpening a dispute over the country’s economic alignment.

Reports say Army Secretary Daniel Driscoll is leaving after clashes with Defense Secretary Pete Hegseth, adding to Pentagon leadership turnover.

Foreign investment into Germany rose to 86 billion euros in 2025, with UK inflows surging and the US share dropping sharply, according to IW data.