Exclusive: As war began, Putin rejected a Ukraine peace deal recommended by aide

Wednesday, September 14, 2022

by Linda Noakes

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Russian forces push back against Ukraine's counter-offensive, the U.S. weighs China sanctions to deter Taiwan action, and the EU plans windfall levies on energy firms

Today's biggest stories

Ukraine's President Volodymyr Zelenskiy poses for a pictures with Ukrainian servicemen as he visits the town of Izium in Kharkiv region, September 14, 2022

WORLD

Ukraine said it was trying to extend its lightning counteroffensive in the east, but pro-Russian officials said they were holding the line for now and U.S. President Joe Biden said the war still looked like a long haul. Vladimir Putin's chief envoy on Ukraine told the Russian leader as the war began that he had struck a provisional deal with Kyiv that would satisfy Russia's demand that Ukraine stay out of NATO, but Putin rejected it and pressed ahead with his military campaign, according to people close to the Russian leadership.

Fresh clashes erupted between Azerbaijan and Armenia as international efforts intensified to end violence that killed nearly 100 soldiers in the deadliest fighting between the ex-Soviet republics since 2020. Meanwhile, Kyrgyz and Tajik border guards exchanged fire in three separate incidents after a dispute over the border between the two Central Asian nations.

King Charles, his sons Princes William and Harry and other senior royals will join a solemn procession as Queen Elizabeth's coffin is taken from Buckingham Palace to lie in state in parliament. Just over 5 million people viewed the queen's final flight, as the journey carrying the late monarch's body from Edinburgh to London became the most tracked flight in history.

The United States is considering options for a sanctions package against China to deter it from invading Taiwan, with the European Union coming under diplomatic pressure from Taipei to do the same, according to sources familiar with the discussions. Taiwan's de facto ambassador in Washington, Hsiao Bi-khim, hosted dozens of international lawmakers who back sanctions on China for aggression toward the island.

China raised its highest tropical cyclone alert as Typhoon Muifa approached the densely populated Yangtze River Delta, with Shanghai and other cities canceling flights and trains and suspending work at busy ports.

Migrants who are believed to have crossed the border from Mexico into the United States are seen inside wooden boxes in Texas, in this undated police photo

U.S.

U.S. authorities unveiled indictments of a lucrative human smuggling operation that allegedly included moving migrants in suitcases and water tanks from the U.S.-Mexico border, as Biden's administration cracks down on groups fueling a record number of border crossings.

Moderate members of the House of Representatives are leaving office at twice the rate of their more partisan peers this year, a Reuters analysis found, likely deepening Washington gridlock during Biden's next two years in office.

Senator Lindsey Graham proposed new national restrictions on abortion, saying he wanted to help define Republicans on an issue seen as a potential albatross for his party. West Virginia lawmakers passed a sweeping abortion ban that prohibits the procedure even in the earliest days of pregnancy with limited exceptions in cases of rape, incest and when the health of the mother is at risk.

A far-right candidate and a longtime state legislator were locked in a tight battle in New Hampshire in the Republican primary contest to face incumbent Democratic Senator Maggie Hassan as the midterm primary season came to a close. A new Reuters/Ipsos poll shows Democratic voters just as enthusiastic as their Republican counterparts, pointing to a potentially close contest in November's elections.

Pennsylvania Democratic gubernatorial candidate Josh Shapiro plans to debut a new online ad aimed at Black voters that features his Republican rival posing in a Confederate military uniform, the campaign told Reuters.

A screen on the trading floor displays the Dow Jones Industrial Average at the New York Stock Exchange, September 13, 2022

BUSINESS

World stocks were stuck in a sea of red as markets braced for an even more aggressive U.S. Federal Reserve as inflation roars, and the yen jumped as Japan gave its strongest signal yet that it could act to shore up the battered currency. Star stock picker Cathie Wood of Ark Invest cautioned that the Federal Reserve is making a mistake with its widely-expected interest rate hikes to bring down high inflation and said she is more concerned about deflation.

The EU executive plans to raise more than $140 billion to soften the blow to consumers from soaring energy prices by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits. We look at Europe's plan to tackle a winter energy crisis.

Lower fuel prices caused an unexpected fall in British inflation in August, official figures showed, offering some respite to households and the Bank of England after inflation hit a 40-year high the month before.

Biden's administration made contingency plans aiming to ensure deliveries of critical goods in the event of a shutdown of the U.S. rail system while pressing railroads and unions to reach a deal to avoid a work stoppage affecting freight and passenger service. Some railroads will start halting crop shipments tomorrow, an agricultural association and sources at two grain cooperatives said.

Google suffered one of its biggest setbacks when a top European court fined it $4.13 billion for using its Android mobile operating system to thwart rivals, offering a precedent for other regulators to ratchet up pressure. Meanwhile, South Korea levied tens of millions of dollars in fines on Google and Meta Platforms for privacy law violations.

Fashion brand Zara's owner Inditex said it plans to hike prices again this autumn, as one of the world's top clothes retailers tries to offset soaring costs despite worries demand will wane due to the cost of living crisis.

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