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💥 India Strikes Pakistan

India launched targeted strikes against alleged "terrorist infrastructure" in Pakistan and Pakistan-administered Kashmir following a deadly April 22 attack that killed 26 people in Indian-administered Kashmir. Pakistan denies involvement and claims 26 civilians were killed in the strikes, while threatening retaliation against what Prime Minister Sharif called a "heinous act of aggression." UN chief Guterres has called for "maximum restraint" as tensions escalate between the nuclear-armed neighbors. More - BBC

🇾🇪 US-Houthi Ceasefire: Red Sea Attacks to End

The US and Yemen's Houthis agreed to an Oman-mediated ceasefire deal halting mutual attacks, with Trump announcing the Houthis have "capitulated" on targeting Red Sea vessels. Houthi negotiator Mohammed Abdulsalam clarified the agreement excludes operations against Israel "in any way, shape or form," as the group vowed to continue targeting Israel amid recent Israeli strikes on Sanaa airport. The truce follows months of US airstrikes responding to Houthi shipping attacks conducted in solidarity with Palestinians. More - Al Jazeera

🚢 Asia’s Hardline Response to US Tariffs

Three recent stories paint an interesting picture of how difficult some of the tariff deals the US plans to make could be and how other nations are realigning their trade relationships, but not in the way President Trump had hoped.

• US-China Talks Start this Week - Despite statements from the White House that talks with China were ongoing, US-China trade talks are not due to start until this week. China has been in no rush to begin these talks and it is unclear just how long it will take for any kind of a deal to emerge. More - Bloomberg (Bloomberg also just reported that President Xi has announced a series of measures to strengthen the Chinese economy before talks, further signalling that Beijing is taking a hard stance to these talks and feels it is in the stronger position- Bloomberg)

• Signs of Dollar Exodus in Asia - Asian countries may unload $2.5 trillion in dollar assets as Trump's trade policies trigger currency rebalancing. Stephen Jen of Eurizon SLJ Capital warns of "naked long-dollar positions" becoming vulnerable amid Asian currency strengthening, with the Bloomberg dollar gauge already down 8% from February highs. More - Bloomberg

• ASEAN+ Alliances Strengthen - Japan, China, South Korea and ASEAN agreed to create a new rapid financing facility under their Chiang Mai Initiative Multilateralization, enabling swift access to emergency funds without conditions during crises. This enhancement to the $240 billion currency swap arrangement establishes a stronger regional financial safety net — originally designed for pandemic and natural disaster response, but now be utilized in response to US tariffs — reflects increased coordination among Asian economies amid global uncertainty. More - Reuters and Morningstar

Europe Stability Ratings and News Summary

More Unstable

🇦🇱 Albania, 🇧🇾 Belarus, 🇧🇪 Belgium, 🇧🇦 Bosnia And Herzegovina, 🇧🇬 Bulgaria, 🇨🇾 Cyprus, 🇫🇷 France, 🇩🇪 Germany, 🇬🇷 Greece, 🇭🇺 Hungary, 🇮🇹 Italy, 🇱🇻 Latvia, 🇲🇰 Macedonia, 🇲🇹 Malta, 🇲🇩 Moldova, 🇲🇪 Montenegro, 🇵🇹 Portugal, 🇷🇴 Romania, 🇷🇺 Russia, 🇷🇸 Serbia, 🇪🇸 Spain, 🇸🇪 Sweden, 🇹🇷 Turkey, 🇺🇦 Ukraine

More Stable

No countries were more stable over this period

Unchanged

🇦🇩 Andorra, 🇦🇹 Austria, 🇭🇷 Croatia, 🇨🇿 Czech Republic, 🇩🇰 Denmark, 🇪🇪 Estonia, 🇫🇮 Finland, 🇮🇸 Iceland, 🇮🇪 Ireland, 🇱🇮 Liechtenstein, 🇱🇹 Lithuania, 🇱🇺 Luxembourg, 🇲🇨 Monaco, 🇳🇱 Netherlands, 🇳🇴 Norway, 🇵🇱 Poland, 🇸🇲 San Marino, 🇸🇰 Slovakia, 🇸🇮 Slovenia, 🇨🇭 Switzerland, 🇬🇧 United Kingdom

Europe News Summary

Switzerland has recently authorized an increase in egg imports to satisfy a surge in consumer demand, reflecting the country's adaptability to market needs. This decision by the Federal Council underscores the importance of food security and supply chain management in the current economic climate [SOURCE - Swissinfo].

France has witnessed significant labor unrest, with a massive rally on May 1, organized by unions advocating for improved working conditions and higher wages. This demonstration is part of a broader movement that has prompted French rail unions to call for a nationwide strike, potentially disrupting the country's transportation system [SOURCE - IB Times].

In response to escalating geopolitical tensions, Europe is preparing to impose new sanctions on Russia, as announced by French officials. This move comes amid a backdrop of rising security concerns following a coordinated prison attack in France, which has led to the charging of 21 suspects [SOURCE - NDTV].

Switzerland has taken a firm stance by committing to enforce a ban on Hamas, effective May 15, a move that has been praised by Israel. This decision highlights Switzerland's evolving role in international diplomacy and its efforts to align with global security measures [SOURCE - Algemeiner].

In a related diplomatic effort, Russian Foreign Minister Lavrov has engaged with Indian External Affairs Minister Jaishankar amid rising tensions between India and Pakistan, indicating Russia's interest in mediating regional conflicts [SOURCE - Times of India].

In France, a 70-year-old Jewish man was brutally attacked in an antisemitic assault, raising alarms about rising hate crimes in the country. Additionally, kidnappers have been targeting cryptocurrency entrepreneurs for ransom, highlighting the intersection of crime and the burgeoning digital economy [SOURCE - Algemeiner].

Spain and Portugal recently experienced a massive blackout that left millions without power for hours, raising concerns about the reliability of their energy grids. The incident has sparked debates about the role of renewable energy in the blackout, with experts suggesting that the rapid transition to renewables may have contributed to the crisis [SOURCE - ABC].

In a positive development, Switzerland has increased its hydropower electricity output, demonstrating a commitment to sustainable energy practices [SOURCE - Swissinfo].

MENA Stability Ratings and News Summary

More Unstable

🇧🇭 Bahrain, 🇪🇬 Egypt, 🇮🇷 Iran, 🇮🇶 Iraq, 🇮🇱 Israel, 🇯🇴 Jordan, 🇱🇧 Lebanon, 🇱🇾 Libya, 🇸🇦 Saudi Arabia, 🇸🇾 Syria, 🇹🇳 Tunisia, 🇾🇪 Yemen

More Stable

No countries were more stable over this period

Unchanged

🇰🇼 Kuwait, 🇴🇲 Oman, 🇶🇦 Qatar, 🇦🇪 United Arab Emirates

MENA News Summary

Syria remains at the forefront of international concern, with the government asserting that sanctions hinder its reconstruction efforts. In a bid to bolster cooperation, talks between Syria and the UAE are underway, while Turkey has reiterated its opposition to any decentralization efforts that could threaten Syria's stability [SOURCE - Syrian Arab News Agency].

Sectarian violence has escalated near Damascus, particularly affecting the Druze minority, with recent clashes resulting in multiple fatalities. The United Nations has condemned this violence as "unacceptable" [SOURCE - France24]. In response to these tensions, Israel has conducted airstrikes in Syria, claiming to protect the Druze community from escalating attacks [SOURCE - Israel National News].

The international community has reacted strongly to Israel's military actions in Gaza, with the UN envoy urging an immediate halt to the airstrikes [SOURCE - Winnipeg Free Press]. Meanwhile, Turkey and Iran have condemned these military operations, emphasizing the need for regional stability [SOURCE - Abna24].

In Egypt, the government is navigating a delicate balance of regional relations and domestic security. Egypt has signed a logistics deal with the UAE, signaling a strengthening of ties [SOURCE - TimesLIVE]. However, the country faces significant challenges, including a humanitarian crisis in Gaza, where Egypt's attempts to mediate a ceasefire have reportedly faltered [SOURCE - Ynetnews].

Security concerns are also mounting in Egypt, highlighted by the sentencing of two Israelis for assaulting hotel workers [SOURCE - TimesLIVE]. Additionally, reports indicate that former President Trump sought military support from Egypt against Houthi rebels, further complicating the regional security dynamics [SOURCE - Middle East Eye].

In Yemen, the situation remains dire as the US and UK have intensified airstrikes against Houthi targets, with reports of over 1,000 strikes conducted by the US alone [SOURCE - Middle East Eye]. The Houthis have retaliated with missile attacks on Israel, raising alarms about the potential for wider conflict in the region [SOURCE - Israel National News].

Meanwhile, Israel has threatened retaliation against Iran and Yemen's Houthis following a missile strike on Ben Gurion Airport, further complicating the already volatile situation in the region [SOURCE - NDTV].

Amidst these tensions, Saudi Arabia is actively engaging in diplomatic efforts, urging India and Pakistan to resolve their issues through dialogue [SOURCE - Pakistan Today]. The kingdom is also facing economic pressures, as OPEC+ plans to accelerate oil output hikes despite declining prices [SOURCE - New York Post].

In Tunisia, political unrest is palpable as rival rallies reflect deepening divisions within the country. The government faces accusations of authoritarianism amid a backdrop of human rights concerns [SOURCE - BBC].Carpe tomorrow!