Leo, who will meet abuse survivors during the four-day trip, is also expected to draw large crowds for an outdoor Mass in central Paris and will address French, UN and European leaders in separate events on his whirlwind, three-city tour

International News via Reuters:

Pope Leo heads to France on Friday for the first formal visit by a pope in nearly 20 years, which Catholic leaders hope will repair the Church’s standing after a crushing 2021 report on child abuse by priests sparked nationwide shock.

Leo, who will meet abuse survivors during the four-day trip, is also expected to draw large crowds for an outdoor Mass in central Paris and will address French, UN and European leaders in separate events on his whirlwind, three-city tour.

“Pope Leo’s visit to France has sparked a real tidal wave” of interest, retired French Bishop Marc Stenger told Reuters. Some 600,000 people have registered to join the outdoor Mass on Saturday, near Paris’ famed Avenue des Champs-Élysées.

“French Catholics are … saying loudly that they need the Church to find their way in these uncertain moments in world history,” said Stenger, citing the registration numbers.

POPE LIKELY TO DISCUSS AI

Leo’s agenda in Paris includes speeches to President Emmanuel Macron and other French leaders at the Élysée Palace and to staff at the headquarters of the United Nations culture and education body, UNESCO, which is facing budget shortfalls after US President Donald Trump withdrew from the agency in 2025.

The first US pope attracted ⁠Trump’s ire earlier this year after criticizing the Iran war.

Leo, who issued a fervent manifesto in May warning about the dangers of AI and urging international regulation of the industry, is expected to address the issue at UNESCO.

The pope was likely to reiterate his call for an AI slowdown and speak “with regard to the meaning of existence, to what makes human beings human and what does not,” said Matteo Bruni, the Vatican spokesperson.

Leo will also lead a prayer service in Paris at the restored Notre-Dame cathedral, in the first visit by a pope since a devastating fire nearly destroyed the Gothic masterpiece in 2019.

Beyond Paris, the pope’s tour includes a stop at the famous Catholic shrine at Lourdes, in southwestern France. It will culminate in Metz, a town near the German border that was home to the late Robert Schuman, one of the founders of the European Union, for a speech on “the roots of Europe for peace and unity”.

Cardinal Jean-Claude Hollerich, a Luxembourg archbishop and a former leader of the Church’s commission for EU bishops, said that Leo would call on European leaders to be “tireless makers and builders of peace”.

Macron has invited leaders from all 27 EU member states to attend the Metz speech, said Charles Personnaz, France’s Vatican ambassador. It was unclear how many would come, he said, given that it coincides with the UN General Assembly meeting in New York.

Ukrainian President Volodymyr Zelenskiy may also attend, according to media reports. Zelenskiy’s office did not immediately respond to a request for comment.

CHURCH ‘DEEPLY WOUNDED’ BY ABUSE SCANDALS

Leo would meet seven survivors of abuse by Catholic clergy on Sunday in Lourdes, several of those involved said in a press release. The Vatican, which usually only issues statements about the pope’s meetings with abuse victims afterwards, has not provided further details.

A 2021 report found that some 330,000 French children had been abused by Catholic clergy and lay leaders over seven decades.

Echoing similar reports in the United States, Spain and Portugal, it said the Church had shown “deep, total and even cruel indifference” to victims.

French bishops have since introduced compensation and safeguarding measures, but survivors have continued to press Church leaders to demonstrate accountability.

Stenger, who led the Diocese of Troyes from 1999 to 2020, said the abuse scandals “have deeply wounded the Church and damaged its credibility”.

LOURDES CONNECTED WITH ACCUSED PRIEST

A senior Vatican official said Leo asked for the meeting in Lourdes to be organised as a dialogue and to include survivors from diverse backgrounds, including those abused as adults, and from different areas of France.

Lourdes, one of the world’s most popular Catholic pilgrimage sites, is connected to a scandal that has dogged the Vatican in recent years. Its sanctuary has a series of mosaics made by Rev. Marko Rupnik, a prominent priest and artist with Vatican ties, who has been accused of sexual abuse.

Rupnik, accused by more than 20 women, is not known to have commented publicly on the accusations. He is currently undergoing a canonical trial at the Vatican.

Lourdes Bishop Jean-Marc Micas said in August that he had ordered the mosaics covered for the pope’s visit.

Reporting by Joshua McElwee and Elizabeth Pineau; additional reporting by Dan Flynn; editing by Alex Richardson

Investor sentiment got a boost from a senior Iranian official telling Reuters on Tuesday that Tehran can reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports

International News via Reuters:

Global shares rallied on Tuesday, driven by a resurgence of optimism over AI, while the oil price hit two-week lows as supply showed signs of improving in the Middle East.  

Investor sentiment got a boost from a senior Iranian official telling Reuters on Tuesday that Tehran can reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports. 

At the same time, three sources briefed on the matter told Reuters Saudi Arabia has restarted operations at its East-West Pipeline and could resume exports from the Red Sea port of Yanbu later on Tuesday. 

Oil fell as much as 3% before recovering modestly to around $97.6 a barrel.

Stocks were already on a firm footing thanks to the viral popularity of Meta Platforms’ Muse AI assistant that launched two weeks ago, which sent the company’s stock soaring on Monday and revived enthusiasm for the tech sector after grim warnings from AI chief executives a week earlier.

Semiconductors were among the top gainers in Europe, where the STOXX 600 was up 0.5%, extending the previous day’s 1% rally. 

Meta shares jumped by more than 11% by the close on Monday in their largest one-day rise since April 2024, helping propel a range of AI-linked stocks, such as AMD, which hit the $1 trillion mark, while Intel and Arm Holdings jumped 12.2% and 17%, respectively.

“This suggests that demand for costly AI tools is robust and worth the hundreds of billions of capex spent by the hyperscalers,” said Kathleen Brooks, research director at XTB. 

“If there is widespread adoption of Muse, it could add to demand for other AI tools, which could lift the AI sector, after a rough few months.” 

Nasdaq futures were up 0.1%, suggesting a small rise at the open for the index, which hit record highs on Monday, while S&P futures were also up 0.1%.  

TRUMP-XI MEETING AWAITED

Attention is turning to a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping later this week, with investors watching for any indications that the leaders of the world’s two largest economies can prevent a further deterioration in relations.

Xi arrives in Washington on Wednesday for the first time in more than a decade, helping fuel optimism that a trade truce deal between the two countries will be extended and there could be potential cooperation over artificial intelligence. 

“For markets, the big question is what’s going to happen when the current one-year trade truce expires in November, and whilst the general tone remains positive, there still isn’t an agreement yet,” Deutsche Bank strategist Jim Reid said. 

RATE HIKES ON THE WAY 

Global bond yields reversed an earlier rise and fell in line with the oil price. That said, investors are pricing in another round of rate hikes from major central banks, which could limit the decline in debt yields.

US 10-year Treasury yields were down 3 basis points on the day to 4.93%, falling further below the 5% threshold, which in turn cut support for the dollar, pushing it below a seven-week high against a basket of currencies struck earlier in the day. 

The dollar tilted lower, most notably against the yen, down 0.15% at 157.14, backing off a three-week high.

The Bank of Japan raised rates last week to a 31-year high but two dissenting votes and lack of explicit hawkish guidance disappointed investors, which has left the yen vulnerable and kept traders on alert for signs of official intervention. 

“FX intervention remains a blunt tool to prop up currencies, and without a forceful monetary policy response it will be difficult for Japanese authorities to rein in the selloff in the yen,” said Matthew Ryan, head of market strategy at Ebury.

The Federal Reserve, by contrast, raised rates last week and warned its fight against inflation was not over, keeping the door open to further tightening.

Additional reporting by Ankur Banerjee in Singapore; Editing by Peter Graff and Andrew Cawthorne

Toronto’s Police Service said it was increasing patrols near synagogues and other places of worship “out of an abundance of caution.”

International News via Reuters:

Canadian Prime Minister Mark Carney on Monday condemned a shooting outside a synagogue in Belleville, Ontario, on Sunday evening that left a police officer wounded as members of the Jewish community gathered for Yom Kippur services.

“Last night, on the holiest night of the Jewish calendar, a shooting took place outside the Sons of Jacob Synagogue in Belleville,” Carney posted on X. “Jewish people must be able to worship safely. To live free, open, proud Jewish.”

Toronto’s Police Service said it was increasing patrols near synagogues and other places of worship “out of an abundance of caution.”

Carney in June announced a new federal advisory council to combat antisemitism, warning that a surge in hate crimes means the country is failing to protect Jewish Canadians.

The shooting in Belleville, Ontario, about 190 km (118 miles) east of Toronto, occurred at about 7:10 p.m. on Sunday near a residential area in the city’s east end, the Belleville Police Service said in a statement on social media. 

Ontario’s Special Investigations Unit said the shooter, a 29-year-old man, was in life-threatening condition and the officer was in critical-stable condition. 

Ontario Premier Doug Ford condemned the shooting in a post on social media, saying Jewish community members had “every right to gather and worship safely and without fear.”

Editing by Caroline Stauffer and Bill Berkrot

The agreement, to be signed at the UN General Assembly in New York at 10:30 a.m. ET (1430 GMT) on Tuesday, has not been made public, though President Donald Trump says it grants the US “permanent control”

International News via Reuters:

Denmark, Greenland and the United States are to sign a deal on Greenland’s security on Tuesday, an agreement Denmark says will put Arctic security under NATO’s watch rather than leaving it solely to Washington and Copenhagen.

The agreement, to be signed at the UN General Assembly in New York at 10:30 a.m. ET (1430 GMT) on Tuesday, has not been made public, though President Donald Trump says it grants the US “permanent control”. Denmark and Greenland have not commented on Trump’s assertion but said the deal will benefit the Arctic island and respect its sovereignty.

A White House official said Trump on Tuesday will meet in New York with Danish Prime Minister Mette Frederiksen and Greenland Prime Minister Jens-Frederik Nielsen for a trilateral signing ceremony. 

“The three leaders will formalize their new agreement that will secure and defend the security of Greenland and the United States,” the official said.

The deal follows months of pressure from Trump, who has said the United States should control Greenland and at times refused to rule out using military or economic force to acquire the semi-autonomous Danish territory. His threats, which peaked in January, triggered a diplomatic crisis within NATO and pushed Denmark and Greenland into negotiations with Washington aimed at defusing the pressure.

“It (the agreement) will be in a form where responsibility for security in the Arctic is not only Danish or American,” Danish Foreign Minister Lars Lokke Rasmussen told national broadcaster TV2 on Sunday. He added that to a large extent “it would be NATO that looks after the Arctic”.

BOOSTING NATO’S ‘COHESION’

It remained unclear whether the deal amends an existing 1951 defence agreement that is the legal basis for the US presence in Greenland. 

“It appears that we are now using this crisis to try to strengthen NATO’s cohesion through Greenland,” said Ulrik Pram Gad, a researcher at the Danish Institute for International Studies (DIIS).

Washington’s strategic interest in Greenland dates back to World War Two. In 1941, the US signed a deal with Danish envoy Henrik Kauffmann, who acted without authority from his country, then under German occupation.  

The United States sought the deal to keep Greenland out of German hands and secure the North Atlantic supply route between North America and Europe. Under the agreement, the US built airfields, naval facilities, and weather stations across the island, reaching around 5,500 military personnel by 1943, according to DIIS.

In 1946, President Harry Truman sought to buy the island as a strategic asset for $100 million in gold, but Copenhagen declined to sell. Instead, a new agreement was signed in 1951 that gave the US military extensive rights in Greenland but was tied to the existence of NATO.

“I don’t think Denmark and Greenland will sign if the same NATO clause isn’t included,” said Gad.

PROMOTING ‘SECURITY, STABILITY AND COOPERATION’

During the Cold War, the US maintained 17 military installations and more than 10,000 personnel in Greenland. Today only Pituffik Space Base remains, with some 150 US military personnel.

A NATO spokesperson said on Saturday that the alliance welcomed the new agreement, which would “help advance security, stability and cooperation in this vital region”. 

Rasmussen, who travelled to New York overnight, declined to discuss the contents of the agreement.

“But we have said from the start that we are open to accommodating the United States’ legitimate security interests,” he told Danish news agency Ritzau on Monday.

Trump said in a post on Truth Social on Friday the agreement gave the United States “permanent control over security, and all other needs, in Greenland,” and that no US adversary could have a base or military presence there without Washington’s written approval. 

Denmark has not responded to Trump’s assertion, though Copenhagen earlier acknowledged it underinvested in Greenland’s defence for decades and has pledged to expand its military presence on the island, including more NATO troops.

Greenland’s government has sought to reassure the public about the deal.

Erik Jensen, an opposition lawmaker in Greenland, wrote on Facebook that he had read the draft agreement. “I feel reassured and am not worried,” he said, adding that the island’s foreign minister was handling the work well.

Reporting by Stine Jacobsen and Jacob Gronholt-Pedersen in Copenhagen; additional reporting by Steve Holland in Washington and Marie Mannes in StockholmEditing by Gareth Jones and Rosalba O’Brien

The central banks are seeking information on the trading firms’ risk appetite, how banks’ exposure to them evolved throughout the trading day, and how risk controls operated

International News via Reuters:

The US and UK central banks have asked global banks about their exposures to large trading firms after turmoil at a hedge fund caused large losses at proprietary trading firm Jane Street in July, the Financial Times reported on Monday.

The AI-focused Situational Awareness fund, run by former OpenAI researcher Leopold Aschenbrenner, was forced to sell most of its public equities portfolio to Citadel Securities after a sharp selloff in AI and chip stocks in July. 

Jane Street lost roughly $15 billion that month, particularly through its investment in the hedge fund and other technology holdings.

The central banks are seeking information on the trading firms’ risk appetite, how banks’ exposure to them evolved throughout the trading day, and how risk controls operated, the FT report said, citing people familiar with the matter. 

Reuters could not immediately verify the report. The Bank of England and the US Federal Reserve declined to comment. Jane Street did not immediately respond to a Reuters request for comment.

Last month, the US Securities and Exchange Commission subpoenaed Wall Street banks, including Goldman Sachs, JPMorgan, Citigroup and Bank of America.

It was examining Situational Awareness’ trading activity and use of leverage following its near-collapse, including the trades that triggered margin calls and the fund’s communications with lenders.

Reporting by Abu Sultan in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair