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DW Economy

Russia shadow fleet sanctions: Can the EU act without US?

The US is reportedly considering ways to convert "dark tankers" into legitimate vessels, allowing them to transport crude oil that is not subject to sanctions. To curb Russia's oil export revenues, the US and Europe have stepped up efforts to intercept tankers accused of violating sanctionsImage: Thibaud Moritz/AFPAdvertisementSince Russia's full-scale invasion of Ukraine, Moscow has increasingly relied on a so-called shadow fleet to bypass Western sanctions and transport its oil around the world. Other heavily sanctioned countries, including Iran and Venezuela, have also been accused of using such vessels to export petroleum products. These tankers often rely on deceptive practices like turning off their location transponders to evade detection and conceal the cargo's true origins or destinations. The fleet, which consists largely of aging, uninsured and poorly maintained tankers, has raised widespread concern across the shipping industry. Yet it has expanded rapidly in recent years and now accounts for nearly 19% of global oil tanker capacity, according to estimates by financial intelligence firm S&P Global. "The shadow fleet is a scourge," Elisabeth Braw, senior fellow at the think tank Atlantic Council, said, adding that "it is in nobody's interest" to have these ships sailing around in the world's oceans. She pointed out that these tankers undermine the maritime order and increase the risk of accidents and environmental damage. "Every country should use its leverage with Russia to ask it not to use the fleet," she told DW, noting that ultimately all countries suffer the consequences. To clamp down on the fleet and curb Russia's oil export revenues, the United States and European countries have stepped up efforts to intercept tankers accused of violating sanctions. The Trump administration, however, is reportedly considering lifting sanctions on some shadow fleet vessels and allowing them to transport oil that is not subject to sanctions. A US official told Reuters earlier this month that the move was intended to ease record-high global freight rates. Lifting sanctions on the shadow fleet "would decrease the effectiveness of the sanctions regime overall," said Michael Carpenter, senior fellow for Transatlantic Affairs at the International Institute for Strategic Studies (IISS). Such a move "rewards the aggressor and helps Moscow gain revenues to continue attacking Ukraine," he told DW.

Russia shadow fleet sanctions: Can the EU act without US?
North America
CNBC Economy

Bessent says 'not necessarily' a mistake if the Fed hikes again

Treasury Secretary Scott Bessent said Wednesday that further Federal Reserve rate hikes wouldn't necessarily be a mistake. After CNBC's Brian Sullivan asked if rate increases in the future would constitute a monetary policy error, Bessent responded: "That's not necessarily so." Bessent's comments came hours after the Fed announced it would keep interest rates unchanged at its October gathering, as the market widely expected. Bessent is a key confidant of President Donald Trump, who has repeatedly called for lower interest rates. Trump pressured Fed Chairman Kevin Warsh's predeccesor, Jerome Powell, over the issue during Powell's final months at the helm of the central bank. But Bessent said Wednesday that both he and Trump believe Warsh is doing well and can strike a balance between ensuring full employment and stable prices. "I think Chair Warsh is off to a great start," Bessent said. "As I often say, I have great confidence in him." The Fed's decision to hold rates steady came a month after it lifted borrowing costs for the first time in three years. Fed funds futures traders widely expected the central bank to return to rate hiking when it meets again in December. Bessent said he would like to see the Fed have an "open mind" about the supply shock from energy prices having a "transitory nature." The U.S. war with Iran has led to a sharp drop in global crude production volumes, in turn leading annual inflation readings to move further from the Fed's target of 2%. Bessent also said the U.S. efforts to isolate the Iran economy, dubbed Operation Economic Outcast, have been "very successful." He said internal estimates show that Iran's economy could contract by as much as 25% in the span of a year. When asked about bond yields on artificial-intelligence related debt, the Wall Street veteran said "we monitor" it, but that it didn't need to cause concern. Bessent specifically referenced neoclouds, a type of company providing specific cloud infrastructure supporting AI that has recently struggled in the market. Tesla CEO Elon Musk warned on Sunday that more than 200 neocloud firms "are going to see guppy-level death and consolidation." "I don't think it's problematic at all," Bessent said. "The neoclouds are a small component of the overall ecosystem, and we're still seeing the financing getting done. We're still seeing the deals get done."

Bessent says 'not necessarily' a mistake if the Fed hikes again
North America
Fortune

Air Force One passengers reveal Trump’s inner circle and who is ‘whispering in his ear and talking softly in private quarters’

President Donald Trump has clocked about 70 hours aboard Air Force One so far this month, racing from rally to rally across the United States to try to bolster his Republican Party in the midterm elections. Also along for the ride: an entourage ranging from aging boxing champions to Cabinet members to relatively unknown aides who help craft Trump’s words and ideas. The passenger list for Trump’s marathon through the sky signals who has the ear of the president. “It can say what his priorities are,” said David Cohen, a professor of political science at the University of Akron. “Who he surrounds himself with are the people he is going to be listening to. They’re the ones who are going to be whispering in his ear and talking softly in private quarters to the president of the United States.” Here’s a look at who has had access to power in the confines of Trump’s plane this month. White House chief of staff Susie Wiles, who recently finished treatment for breast cancer, is a frequent flyer. Trump has called Wiles, who co-managed his 2024 campaign, the “most powerful woman in the world.” As Air Force One ascended from Greenville, North Carolina, after Trump’s 15th rally in 20 days, Wiles gave reporters her take on how it went as she walked up the aisle. Other insiders who’ve made the manifest: special envoy Steve Witkoff,who has been trying to negotiate an end to the Iran war that has weighed on Republicans’ midterm fortunes; deputy chief of staff Stephen Miller,the architect of Trump’s immigration crackdown; Housing and Urban Development Secretary Scott Turner; Treasury Secretary Scott Bessentand Agriculture Secretary Brooke Rollins. The most frequent Cabinet member aboard has been Commerce Secretary Howard Lutnick, a billionaire who previously ran the financial services firm Cantor Fitzgerald. A Trump buddy going back to the 1990s, Lutnick can often be heard laughing at the president’s jokes. His role at Trump’s rallies has been to highlight new factory investments that Trump uses to try to convince his supporters that the economy is doing well. Bill Pulte has joined Trump for at least five legs of the midterm marathon so far, a sign that his status inside the administration is far higher than his title — director of the Federal Housing Finance Agency — would suggest. The scion of a homebuilding company, Pulte is a Trump pal who was for a brief period also the acting director of national intelligence and oversaw layoffs in that office. He has led pressure campaigns on Federal Reserve officials such as Jerome Powell and Lisa Cook. Pulte has also passed along policy ideas such as changing the 30-year mortgage to 50 years, an idea that has since been abandoned. Federal Communications Commission Chairman Brendan Carr has also flown with the president, notably on Oct. 13 and Oct. 14 on a lengthy West Coast swing. Carr has sought to use his regulatory powers over broadcast networks to chastise them over their coverage of the president. Chief among the retinue of assistants around the president is Natalie Harp, an executive assistant who is on most of Trump’s trips. Walt Nauta,the director of Oval Office Operations, is not far behind her in air miles. Chamberlain Harris, Nauta’s deputy, is another frequent traveler. She also serves as a member of the Commission of Fine Arts, one of the government bodies with a role in reviewing the White House ballroom and other Trump construction projects. Although Trump likes to ad-lib, the speechwriting director, Ross Worthington, has joined him repeatedly on the plane this month. The president’s stump speech features a promise of $5,000 checks if Republicans keep their House and Senate majorities after the Nov. 3 election. He also tends to highlight new factory projects and investments in the communities he visits.

Air Force One passengers reveal Trump’s inner circle and who is ‘whispering in his ear and talking softly in private quarters’
North America
CNBC Finance

Restaurant Brands reports mixed results as Burger King's U.S. turnaround shows signs of success

Restaurant Brands International on Thursday reported mixed quarterly results as Popeyes' struggles offset Burger King's successful U.S. turnaround. Restaurant Brands reported fiscal third-quarter net income attributable to common shareholders of $542 million, or $1.54 per share, up from $315 million, or 96 cents per share, a year earlier. Net revenue rose 3.1% to $2.53 billion. Across all of its restaurants, the company reported same-store sales growth of 3.8%. Burger King was the top performer, with U.S. same-store sales growth of 8.4%. The burger chain's home market is in the middle of multiyear turnaround, with a focus on improving its food and restaurants. Tim Hortons reported same-store sales growth of 1.8% in Canada, its home market. Popeyes was once again the laggard of Restaurant Brands' portfolio. The fried chicken chain's U.S. same-store sales fell 2.2%. In recent quarters, Popeyes has struggled as other chicken rivals have lured its customers away with discounts. Restaurant Brands is trying to stage a comeback with improved restaurant operations and a focus on its core menu. The company's international business saw same-store sales growth of 3.9%, fueled by its Burger King locations. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Restaurant Brands reports mixed results as Burger King's U.S. turnaround shows signs of success
North America
Fortune

Microsoft’s cloud growth accelerates, and so too does the spending

Microsoft’s cloud business is humming even as spending to build out its AI business remains high. The software giant’s first-quarter earnings report Wednesday showed ample demand for its AI services, as Microsoft races to put more computing capacity online and as other parts of its business, such as legacy software and gaming, lag. The Redmond, Wash.-based company said first-quarter revenue totaled $92.3 billion, up 19% year-over-year and above what Wall Street analysts expected. Its profit was $36.6 billion, also edging out analyst predictions. Its Azure cloud business grew by 48%, ahead of analyst estimates and a welcome sign for investors. The company’s shares were trading up around 2.5% in after-hours trading. Microsoft investors have been eager to see Azure continue to grow at a high clip and for the company to prove that its AI bets, such as its Copilot assistant, are generating solid revenue. Both are important metrics because they show whether Microsoft, and the AI industry in general, is sustaining demand, especially as tech giants spend gobs of cash on building data centers. On Wednesday, Microsoft Chief Financial Officer Amy Hood said in a call with analysts that 2026 calendar-year spending on capital expenditures would reach about $170 billion, with the company expecting CapEx to exceed $50 billion during the current quarter. Microsoft said that its first-quarter CapEx reached $45.2 billion, higher than the previous quarter but less than what analysts predicted. Hood said the figure reflected some delays the company had seen in expected third-party capacity deliveries. Hood also said total revenue is expected to be between $96.0 billion and $97.1 billion during the current quarter, above what analysts expected. Operating margins are expected to be down slightly year-over-year. Microsoft is one of several so-called hyperscalers spending big to meet AI compute demands, with Amazon, Microsoft, Google parent Alphabet, and Meta Platforms collectively expected to devote more than $700 billion to capital expenditures in 2026, mostly for data centers. Microsoft’s Wednesday earnings comes in the middle of a run of major tech earnings reports. Meta said last week that its capital expenditures this year would surge to as much as $145 billion, and that its quarterly free cash flow, or the cash it has after expenses, had turned negative, sending its shares down. Alphabet on Wednesday reported gains in its cloud division but a weaker performance in advertising, and Amazon is scheduled to post on Thursday. Hood said that she expects Microsoft to remain free cash flow positive during its 2027 fiscal year. Microsoft didn’t provide an update on Copilot sales specifically, but Chief Executive Satya Nadella said the number of Copilot customers actively consuming credits through usage-based billing grew more than 75% during the quarter. In its previous quarterly report, Microsoft said Copilot had 30 million paid seats, up from 20 million the quarter before. Investors have been anxious about the Copilot business after it had a slow start. Microsoft, for its part, has reimagined Copilot, recently turning the service into a “super app” that will span coding, chat, and autonomous functions. It also this month unveiled new features for its Windows operating system that let users work with AI agents, along with a plan to integrate seamlessly with Copilot.

Microsoft’s cloud growth accelerates, and so too does the spending
North America
Fortune

For the first time since 1992, a Fed governor and president dissented together, as Kevin Warsh says the ‘monetary medicine’ is starting to work

The Federal Reserve held interest rates steady on Wednesday, six days before the midterm elections. Only two officials wanted to raise them, and one was Lisa Cook, the Fed governor President Donald Trump has tried to fire. The Federal Open Market Committee voted 10-2 to keep its benchmark rate at 3.75% to 4%. Cook was joined by Cleveland Fed President Beth Hammack, both “who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting,” the Fed said in its statement. The vote came with two firsts: It was Cook’s first dissent since she joined the board in 2022. And it was also the first time a Fed governor and a regional bank president dissented on the same side since October 1992. Then, Governor Lawrence Lindsey and Cleveland Fed President Jerry Jordan both wanted the Fed to cut rates right away, while Governor John LaWare and St. Louis Fed President Thomas Melzer dissented together on the other side. Fed records show how rare the pairing has become since then. In 1993, governors Wayne Angell and Lindsey twice dissented together in favor of higher rates, but no president joined them. When Philadelphia Fed President Edward Boehne dissented alongside Angell that May, he objected from the opposite direction. LaWare dissented alone in December 1994, when he wanted an immediate hike. But after that stretch, governors largely stopped dissenting. Mark Olson broke ranks alone in 2005, and Michelle Bowman did the same in 2024. Since then, governors and presidents have dissented at the same meeting, but on opposite sides. In October 2025, Governor Stephen Miran pushed for a bigger cut as Kansas City Fed President Jeff Schmid opposed cutting at all. In April, Miran wanted a cut while Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan objected to the statement’s signal that cuts were coming. “It’s not that common to have one governor and one president that dissent,” said Laura Ullrich, director of economic research for North America at the Indeed Hiring Lab, who worked at the Richmond Fed for years. Hammack’s vote didn’t surprise her, since she had heard Hammack lay out her views at a conference in Cleveland two weeks earlier. “The Lisa Cook dissent was more surprising,” Ullrich told Fortune. At a press conference after the decision, Fed Chair Kevin Warsh said the committee chose to wait and see. “What we decided to do was to call these questions, take stock of where we are, evaluate what we’re seeing out the window, ask ourselves whether the period right in front of us is likely to provide more clarity.” He added, “The overwhelming consensus is that what we’ve done in this monetary medicine is starting to work some, but there is no firm conclusions.” “It’s a waiting game,” said Ullrich, who believes a hike is likely soon. “Since the last meeting, none of the inflation data has gotten better. It’s gotten worse,” she said. “I think the probability of a hike in December is very, very high. It was already high in the market, so it’ll probably go even higher after today’s decision.” Consumer prices rose 3.7% from a year earlier in September. Before Wednesday’s decision, traders put the odds of a December hike at 78%, according to CME Group’s FedWatch tool. That inflation has gone up and the rate has not is difficult to square. “Ultimately, the FOMC’s vote to keep its target federal funds rate unchanged today (while widely expected) is a bit hard to square with its unconditional pledge to restore price stability that has repeatedly been made over the past five months,” said Aubrey Woessner, associate economist in the Indeed Hiring Lab. “Whether the public believes the Fed will bring inflation down in a timely manner matters for everyone.”

For the first time since 1992, a Fed governor and president dissented together, as Kevin Warsh says the ‘monetary medicine’ is starting to work
North America
CNBC Economy

The UK cuts energy bills, taxes banks and boosts defense in high-stakes budget

The U.K.'s finance minister John Healey delivered his first fiscal budget on Wednesday, announcing funding for defense, AI initiatives and measures designed to ease cost-of-living pressures. The Autumn Budget included dozens of measures aimed largely at easing rising costs for Britain's population, but Healey was careful not to risk the ire of markets, which responded broadly positively to his plans. Inflation has risen sharply this year, with surging fuel costs driving the annual inflation rate to 3.5% in September. Markets expect the Bank of England to hike interest rates next month, while government borrowing costs have risen sharply this year. The U.K. government, led by Prime Minister Andy Burnham, had promised to alleviate economic pressures ahead of the budget. On Wednesday, Healey said he would deliver "breathing space" for families, saying the country needs "radical change on energy," and citing the inflationary impact of the U.S.-Iran war — a conflict he said "we did not want." His measures included the removal of standing charges on household gas heating bills, the extension of a tax break on electricity for millions of households through July 2027, and £100 ($133) checks for those living in the four lowest local housing tax bands. This will cost £2.6 billion. Healey said tariffs would be removed on over 100 grocery products, a policy announced before the budget was officially unveiled. Small business relief from business rates — a tax on commercial premises — would be extended to include more companies in the hospitality, retail and leisure sectors. Other measures included £15 million to provide books for children, funding aimed at reducing homelessness and support for people to purchase their first home. The U.K.'s minimum wage will rise by 3.9%, while a planned cut to tax-free savings thresholds was canceled. But Healey also pledged to bring down the welfare bill, pointing to reforms to pensions and sickness benefits. But he said he would not "write off a million young people [or] see disabled people suffer the indignities of a system that has been found 'not fit for purpose.'" The U.K.'s welfare bill, which reached 10.7% of UK GDP in 2024/25, has been a contentious issue in recent years. Previous finance minister Rachel Reeves watered down her own plans to cut welfare spending after a rebellion from lawmakers within her party. Healey also announced investments in developing — and regulating — the U.K.'s artificial intelligence industry.

The UK cuts energy bills, taxes banks and boosts defense in high-stakes budget
North America
CNBC Finance

Coca-Cola hikes earnings outlook, even as it sees lackluster demand in North America

Coca-Cola on Tuesday raised its full-year outlook for the third straight quarter, despite lackluster demand in its home market. For the full year, Coke now expects comparable earnings per share to grow at least 11%, up from its prior forecast of an increase in the range of 9% to 10%. The beverage giant also anticipates that its organic revenue will climb at least 5%, a slight increase from its previous outlook of approximately 5% growth. Coke reported third-quarter net income attributable to shareholders of $4.01 billion, or 93 cents per share, up from $3.7 billion, or 86 cents per share, a year earlier. Net sales rose 7% to $13.4 billion. Coke's organic revenue, which strips out acquisitions, divestitures and foreign currency, also rose 7% in the quarter. The company's unit case volume increased 5%, helped by higher demand outside of North America. Coke's home market reported flat volume. In recent quarters, Coke executives have said North American shoppers are under pressure, stretched thin by inflation and economic uncertainty. But the beverage giant has also said consumers are still buying its drinks, from premium brands like Fairlife to its namesake soda. Globally, Coke's sparkling soft drinks business saw volume increase 5% during the quarter, lifted by growth of Coke, Coke Zero Sugar and Diet Coke. Coke's water, sports, coffee and tea division also saw volume climb by 5%. Increased demand for its water, which includes its premium Smartwater brand, fueled the growth. Demand for its tea and coffee was flat, while sports drinks declined. The company's juice, value-added dairy and plant-based beverages business reported flat volume, despite growth in brands like Fairlife and Minute Maid. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Coca-Cola hikes earnings outlook, even as it sees lackluster demand in North America
Europe
BBC Business

Crypto giant Binance attempting to recover $6.3bn stolen in hack linked to North Korea

Image source, Getty ImagesByJaroslav Lukiv and Joe Tidy, Cyber correspondent, BBC World ServicePublished30 October 2026Binance, the world's largest cryptocurrency exchange, says it has frozen around half of the funds stolen in a "complex" hack, after $6.3bn (£4.7bn) was accessed in what is believed to be a record heist. The firm said $3bn of its stolen digital assets had been secured - but many were still in the hands of unidentified hackers. It initially thought an engineer's laptop had been compromised, allowing unauthorised withdrawals, but later said the attack was wider. Several analytics firms have linked the hack, which eclipses a $1.5bn (£1.12bn) heist on the Bybit exchange in 2025, to a North Korean hacking unit. The US Secret Service said it was "working around the clock" "to identify, freeze, trace, and recover" stolen funds. America's lead federal agency for investigating financial crimes added that it would "identify the cyber criminals responsible and bring them to justice", while Binance also said it was working with the FBI. While Binance said its US-facing exchange was unaffected, the US would still have jurisdiction to investigate the hack and help track down stolen funds - an effort which generally involves a global law enforcement effort. The hack also involved some US-linked assets, such as stablecoins Tether and Circle – cryptocurrencies pegged to the dollar. It had initially suspended all deposits and withdrawals - but then said in an update that "deposits remain unaffected". Binance's co-CEO Richard Teng said: "This was not carried out by one person. Our initial investigation suggested that the security incident may have involved a compromised laptop, however our subsequent investigation has uncovered additional points of breach." Teng also describes how the hackers used "a self-destruct mechanism that destroyed tooling and traces as they went, making it more difficult for us to trace and investigate". Initially, the company had indicated the breach "may have started with a compromised DevOps engineer's laptop" but later statements have pointed to a broader breach. In a later update, the firm said it had "set aside" more than $6.34B in company funds to cover the stolen assets and was "actively buying" a range of crypto tokens.

Crypto giant Binance attempting to recover $6.3bn stolen in hack linked to North Korea