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The Guardian view on a significant week for European politics: progressives have some reasons to be cheerful | Editorial

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In the lead-up to Denmark’s snap election on Tuesday, it was revealed that blood supplies were flown into Greenland in January in order to treat Danish military casualties in the event of a US invasion. Against that surreal backdrop, the country’s Social Democrat prime minister, Mette Frederiksen, did not need to work too hard to justify a “stick to what you know” message in uncertain times.

Ms Frederiksen’s surprise gamble in calling an early poll duly paid off, but only just. Donald Trump’s threats to annex territory belonging to a Nato ally handed her party a patriotic lifeline, after it had endured a historic humiliation in local contests last November. But in a campaign dominated by domestic issues, the hoped-for Trump bump was modest, meaning that any Frederiksen-led coalition will depend on centrist support. The Social Democratic party remains comfortably the biggest political force, but its vote share dropped markedly compared to the last general election, while rivals to the left and on the far right made notable gains.

Those sizeable caveats aside, the Danish vote – and a significant week in European politics more generally – offers the continent’s progressives some reasons to be cautiously cheerful. The forward march of the populist right has not been halted, as recent state election results in Germany also attest. But there are signs that Mr Trump’s deepening unpopularity, and his illegal and economically reckless war on Iran, may be contributing to a subtle change in the political weather.

In Italy, which goes to the polls next year, Giorgia Meloni is enduring by far the rockiest period of her premiership. After badly losing a referendum on proposals to change the country’s judicial system, the western leader closest to the White House is unlikely to succeed in pushing through other controversial constitutional changes. But the referendum vote was also used as an opportunity to pass a more general verdict on a government that has failed to improve living standards. It has been followed by resignations, and a new sense of Ms Meloni’s political vulnerability.

In French local elections last weekend, Marine Le Pen’s Rassemblement National failed to make the symbolic breakthrough it craved in major cities, while centre-left parties performed well enough to offer renewed hope for the post-Macron era. In Slovenia, amid allegations of foreign interference in favour of a Trumpian opposition candidate, the centre-left prime minister, Robert Golob, won the tightest election in the country’s history.

It might not quite add up to a socialist spring. But if they are bold, progressive parties can turn this moment to their advantage. European angst over the transatlantic relationship has led to more collectively assertive stances on the economy, Ukraine and security. As another energy shock – this time made in Washington rather than Moscow – deepens voters’ concerns over the cost of living and rising inequality, the populist-right formula of militant nationalism, attacks on welfare and tax cuts for the rich may further lose its shine.

Ms Frederiksen has indicated that she will seek to form a left-leaning coalition government, backed by the centre-right Moderates party. That will be a far from easy deal to achieve. But she was right to point out that “The world is not waiting for us out there, and it has only become even more restless than when the election was called.” For Europe’s centre left, that restlessness is a political opportunity.

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Man who suffered 'racially-motivated' attack says he regrets moving to NI

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The man said his home has been targeted three times in the last five months.



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European stock markets hit record high and oil price falls to three-month low after US-Iran peace deal – business live | Business

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European stock markets hit record high

European stock markets have hit a record high at the start of trading, as relief over the US-Iran peace deal ripples across global markets.

The pan-European Stoxx 600 index has jumped by 0.9% to 639 points, over the previous record high set just before the Iran war started, with shares rising in London, Frankfurt, Paris, Madrid and Milan.

Mining and travel companies are driving the rally, while oil company shares are sliding.

That follows sharp gains in Asia-Pacific markets overnight, where Japan’s Nikkei surged by 5% on hopes that the strait of Hormuz will reopen within days.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, says global equity markets are starting the week firmly on the front foot after President Trump announced that a deal with Iran had been reached, adding:

double quotation markThe move has given investors a clear reason to dial back some of the geopolitical risk premium that has hung over markets, especially as the Strait of Hormuz is expected to reopen and oil prices move sharply lower.

Energy prices have been one of the clearest transmission channels from Middle East tensions into inflation, bond yields and equity sentiment, and there is likely to be a concerted effort to get prices down even further once this deal is finalised.

There are still details to be ironed out before markets can fully trust the agreement, but for now the direction of travel is clear: lower oil, calmer nerves and a renewed appetite for risk.

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Peace deal should keep mortgage rates down

Mortgage borrowers can breathe a sigh of relief at the news of a peace deal in Iran, says Adam French, head of consumer finance at Moneyfactscompare.co.uk.

double quotation markWhile we are far from being out of the woods yet, a lasting peace deal should dramatically reduce the risk of the Bank of England’s worst-case scenario for inflation and interest rates becoming a reality.

“Under that scenario, Base Rate could have risen to 5.25%, potentially pushing typical rates on new mortgages towards 6.75%. Instead, today’s news means mortgages rates, which have already been slowly falling for several weeks, have likely already passed their peak – at least until the next unwelcome crisis.

“Borrowers can be optimistic but with a word of caution, as inflation and economic data will continue to influence the outlook. However, a lasting peace should remove one of the biggest risks to mortgage costs and may help restore a more stable environment for hard-pressed remortgage borrowers and prospective buyers.”

Even before this morning’s drop in UK bond yields (see earlier post), average mortgage rates have dipped slightly.

Moneyfacts reports:

  • The average 2-year fixed residential mortgage rate today is 5.61%. This is down from 5.62% the previous working day.

  • The average 5-year fixed residential mortgage rate today is 5.58%. This is down from 5.59% the previous working day.

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Roy Hattersley, former Labour deputy leader, dies aged 93

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Paying tribute, Sir Keir Starmer said Lord Hattersley “was a giant of the Labour movement”.



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