UNITED NATIONS — Russian Foreign Minister Sergei Lavrov told the West on Saturday that any aggression against Moscow would face a “decisive response,” warning against attempts to down aircraft in Russian airspace and accusing Germany of militaristic rhetoric.

As Russia’s war rages in Ukraine, tensions have mounted along NATO’s eastern flank in recent weeks as Estonia said Moscow sent three fighter jets into its airspace and the North Atlantic Treaty Organization (NATO) warplanes shot down Russian drones over Poland.

“Any aggression against my country will be met with a decisive response. There should be no doubt about this among those in NATO and the EU (European Union) who… are telling their voters that war with Russia is inevitable,” he told the United Nations General Assembly.

The spate of airspace incursions linked to Russia has unnerved countries in eastern Europe where Russia is seen as the biggest threat since the end of the Cold War. Hopes have dimmed of any imminent end to Moscow’s war in Ukraine.

US President Donald J. Trump said this week that he endorsed the idea of shooting down Russian jets that violate NATO airspace, part of a rhetorical shift that saw him mock Russia’s military performance in Ukraine and call it a paper tiger.

Mr. Lavrov brushed off Mr. Trump’s most recent remarks during a press conference that followed his General Assembly speech, but issued a warning about any moves against aircraft inside Russia.

“If there are attempts to down any flying object, any object… in our airspace, then I think people will very much regret undertaking such an egregious violation of our territorial integrity and sovereignty,” he said.

He told the UN General Assembly that Russia had never targeted EU or NATO countries with drones or missiles, and that it had no plans to do so in the future.

He said that only the “politically blind” would expect Ukraine to one day return to the borders it had before Russia invaded in February 2022, an indirect response to Mr. Trump’s assertion that Kyiv could retake all its occupied land from Russia.

Mr. Lavrov also singled out German Chancellor Friedrich Merz, referring to what he said was “militaristic rhetoric” and said Moscow was alarmed by remarks by politicians in EU and NATO capitals of a looming World War III as a “likely scenario.”

RUSSIA HOPES FOR ‘FRANK DIALOGUE’
Despite taking aim at NATO and the European Union, Lavrov made clear Moscow remained hopeful of “frank dialogue” with the US under Mr. Trump despite the US president’s recent shifting stance.

The US and Russia, he said, will hold a third round of talks in the coming months aimed at improving each other’s embassy operations, which have been severely curtailed by a decade of tit-for-tat diplomatic expulsions and other curbs.

Mr. Lavrov met US Secretary of State Marco Rubio on Wednesday on the sidelines of the annual gathering of world leaders at the UN General Assembly.

Mr. Lavrov said he did not see economic relations between Russia and India as under threat, as Mr. Trump has placed tariffs on products from India, calling on it – and China – to stop purchasing Russian oil.

RUSSIA CONCERNED OVER US BUILDUP NEAR VENEZUELA
Despite his cautious tone on Mr. Trump, Mr. Lavrov voiced alarm over a US naval build-up and military action in international waters around Venezuela to combat drug cartels, describing the situation as “very serious.”

Without naming the US, Mr. Lavrov questioned whether “certain creative actors” could try to use a proposed draft UN Security Council resolution to create a larger international force to fight gangs in Haiti to justify an attack within Venezuela.

The draft text being considered by the 15-member body has been put forward by the US and Panama. It needs at least nine votes and no vetoes by Russia, China, the US, France or Britain to pass.

“I cannot rule out that certain creative actors could think of getting a mandate at the Security Council and later say that there are gangs from Haiti harbored in Venezuela. I cannot rule that out,” said Lavrov. — Reuters

WASHINGTON — US consumer spending increased slightly more than expected in August as households went on vacation and dined out, keeping the economy on solid ground as the third quarter progressed, while inflation continued to steadily pick up.

The report from the Commerce Department on Friday suggested the economy has so far retained most of its momentum from the April-June quarter. Signs of the economy’s resilience evident in other data this week showing low layoffs and strong demand by businesses for equipment would argue against the Federal Reserve cutting interest rates again this year after the US central bank resumed policy easing last week.

But the hiring side of the labor market is struggling, with job growth almost stalling in the last three months amid a lingering drag from trade policy uncertainty as well as an immigration crackdown that has reduced the supply of workers.

“There is no support in this report for (Fed Governor) Stephen Miran’s suggestions that policy interest rates have to be cut right away, and by a lot,” said Carl Weinberg, chief economist at High Frequency Economics. “Indeed, there is no recommendation in these numbers for any easing of monetary conditions at all.”

Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.6% last month after an unrevised 0.5% advance in July, the Commerce Department’s Bureau of Economic Analysis said. Economists polled by Reuters had forecast consumer spending increasing 0.5%.

Spending was boosted by outlays on services like transportation, which includes airline travel. Consumers frequented restaurants and bars, and also stayed at hotels and motels. They raised spending on recreation services.

Outlays on financial services and insurance rose as did those on healthcare, housing and utilities. Spending on services advanced 0.5%, matching July’s gain.

Households also bought recreational goods and vehicles, clothing and footwear, and spent more on gasoline and other energy goods as well as food and beverages. Goods outlays shot up 0.8% after rising 0.6% in July.

Spending has marched ahead despite the significant slowdown in the labor market. Consumption is being driven by high-income households as a robust stock market and still-elevated home prices boost their wealth. Fed data this month showed household wealth jumped to a record $176.3 trillion in the second quarter.

Benchmark revisions to the national accounts data showed stronger income growth in 2024 and in some months this year than previously estimated, which economists said was tied to equities and house prices, and accrued by higher-income households.

Consumers also saved more than had been previously reported, with the saving rate hitting 5.7% in April.

But lower-income households are struggling, and bearing a large share of the burden from higher prices on goods from President Donald Trump’s import tariffs. More pain lies ahead when cuts to the federal government’s Supplemental Nutrition Assistance Program, commonly known as food stamps, take effect.

“America’s ‘haves’ have done much better than previously understood in recent years,” said Bill Adams, chief economist at Comerica Bank. “Revisions to categories of incomes that go to the ‘have nots’ were much smaller.”

The Fed last week cut its benchmark overnight interest rate by 25 basis points to the 4.00%-4.25% range. Financial markets continued to expect two more rate reductions this year. Stocks on Wall Street were trading higher. The dollar slipped against a basket of currencies. US Treasury yields were mostly flat.

ECONOMISTS EXPECT SPENDING WILL SLOW
Personal income rose 0.4% in August after a similar gain in July. A 0.6% increase in government transfers, mostly Social Security benefits, accounted for much of the rise in income. Wages gained only 0.3%, in line with a softening labor market, resulting in consumers tapping their saving to fund spending.

The saving rate fell to an eight-month low of 4.6% from 4.8% in July. Strong consumer spending contributed to gross domestic product growing at a 3.8% annualized rate in the second quarter.

The Atlanta Fed upgraded its third-quarter GDP growth estimate to a 3.9% rate from a 3.3% pace earlier.

Economists expected spending to slow by the end of the year, undercut by higher prices, and anticipated that labor market sluggishness would encourage precautionary saving.

Though there has not been a broad rise in inflation, there has been a surge in prices of some goods exposed to tariffs. Businesses have been selling inventory accumulated before the tariffs kicked in, preventing inflation from spiraling.

Producers have also been absorbing some of the duties. Economists, however, do not expect this trend to continue indefinitely and expect businesses will at some point pass on the tariffs to consumers on a wider scale. Inventories were drawn down in the second quarter.

Trump on Friday announced new tariffs, including a 100% duty on branded medication and 25% levy on heavy-duty trucks.

The Personal Consumption Expenditures (PCE) Price Index increased 0.3% in August after gaining 0.2% in July, the BEA said. PCE inflation was lifted by a 0.3% rise in services, reflecting airline fares, hotel and motel rooms as well as financial services and insurance, housing and utilities.

Goods prices edged up 0.1% as a 1.7% decline in the cost of recreational goods and vehicles offset more expensive other long-lasting manufactured goods and gasoline.

In the 12 months through August, the PCE Price Index advanced 2.7%. That was the biggest year-on-year increase since February and followed a 2.6% rise in July.

Excluding the volatile food and energy components, the PCE Price Index rose 0.2% last month after increasing 0.2% in July.

In the 12 months through August, the so-called core inflation index increased 2.9% after rising 2.9% in July. The Fed tracks the PCE price measures for its 2% inflation target.

“The delayed implementation of tariffs and behavioral shifts that led businesses to stock up inventory suggest the consumer inflation impact has not yet been fully realized,” said Shannon Grein, an economist at Wells Fargo.

“Still-high uncertainty, rising prices and sour jobs market sentiment are a worrying mix for spending.” — Reuters

WASHINGTON — The Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each one, according to three people familiar with the matter, as it seeks to drive companies to shift manufacturing to the United States.

According to the plan, which has not previously been reported and could change, the Commerce Department would impose a tariff equal to a percentage of the estimated value of the product’s chip content.

The Commerce Department did not immediately respond to requests for comment.

“America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” White House spokesperson Kush Desai responded when asked about the details.

“The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance.”

If implemented, the plan would show the Trump administration is seeking to hit a wide range of consumer products, from toothbrushes to laptops, potentially driving up inflation as it seeks to ramp up US manufacturing.

The plan could push up the cost of consumer goods “at a time when the US has an inflationary problem, with inflation clearly above the Fed’s target and accelerating,” said Michael Strain, an economist with the conservative American Enterprise Institute. The Federal Reserve’s target inflation rate is 2%.

Even domestically produced items would likely become more expensive, thanks to new tariffs on key inputs needed to make those goods, Strain added. 

US President Donald Trump has deployed an array of tariffs aimed at bolstering American manufacturing, announcing on Thursday sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, triggering fresh trade uncertainty after a period of relative calm.

In April, the Trump administration announced probes into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on them, arguing that extensive reliance on their foreign production poses a national security threat. 

But questions have swirled about the universe of products containing chips that would be hit by the tariffs, the tariff rates, and whether any countries, products, or companies would be exempt.

Trump said in August the United States would impose a tariff of about 100% on imports of semiconductors but exempted companies that are manufacturing in the US or have committed to do so.

The biggest chipmakers outside the US include Taiwan Semiconductor Manufacturing Co and South Korea’s Samsung Electronics.

One of the sources consulted by Reuters said the Commerce Department was considering a 25% tariff rate for chip-related content in imported devices, with 15% rates for electronics from Japan and the European Union, stressing the figures were preliminary.

The sources added that the Commerce Department has also eyed a dollar-for-dollar exemption based on investment in US-based manufacturing only if a company moves half its production to the US, but it was unclear how it would work or whether it would move forward. The investment exemption was previously reported by the Wall Street Journal.

The Commerce Department had previously proposed to exempt chipmaking tools from the tariffs, three sources said, to avoid raising the cost of producing semiconductors in the United States and undermining Trump’s reshoring goals.

But the people said the White House was displeased by the carve-out, citing Trump’s general distaste for exemptions. — Reuters

NEW YORK — In its 80-year history, the United Nations has never had a woman serve as secretary-general — a fact that some world leaders now view as a glaring symbol of gender inequality at the highest level of global diplomacy.

With Secretary-General Antonio Guterres due to complete his second five-year term at the end of 2026, some at this week’s annual UN General Assembly were vocal in their call for a woman to assume the role.

“It is high time for a woman to be chosen as UN Secretary-General,” said Estonia’s President Alar Karis.

“We need to put forward ambitious selection criteria, a clear timeline and assure greater role of the General Assembly in this process. Given the current credibility crisis of the UN, we cannot afford to fall short in the selection process.”

All nine of those to hold the top job have been men.

‘LET’S MAKE HISTORY,’ SAYS SLOVENIA’S PRESIDENT
Slovenia’s President Nataša Pirc Musar lamented that only five women have held the year-long presidency of the now 193-member General Assembly, including this year.

“By the end of this session, she should be joined by a Madam Secretary-General-elect,” Pirc Musar said. “Let’s make history,” she added.

The 15-member Security Council, including permanent veto powers Britain, China, France, Russia and the United States considers an undisclosed list behind closed doors and recommends a candidate to be elected by the General Assembly.

To boost transparency, the General Assembly in 2015 asked its president and that of the Security Council to invite UN members to nominate candidates. It also called for regular circulation of candidates’ names and CVs to member states.

Mongolia’s President Ukhnaagiin Khürelsükh said: “Ensuring gender equality in senior leadership positions within the United Nations will undoubtedly have a positive impact on fostering more transparent, balanced and inclusive decision-making processes.”

The next UN Secretary-General will be chosen in 2026 to begin their term on January 1, 2027.

GEOGRAPHICAL DIVERSITY A KEY TO THE APPOINTMENT
Although the job traditionally rotates among regions, when Guterres, who is from Portugal, was elected in 2016, it was supposed to be Eastern Europe’s turn. Next on the list is Latin America, but some diplomats expect candidates from other regions.

“Our region has the diversity, capacity and experience to be able to raise a strong voice for peace, climate justice, human rights, and sustainable development,” said Dominican Republic President Luis Abinader.

“I am fully convinced that the time has come for a woman to take up the post,” said the president of the Spanish-speaking Caribbean nation.

Chilean President Gabriel Boric said that regional balance must be respected in the appointment process and recommended former Chilean President Michelle Bachelet to the role.

“I firmly believe, and I know that this conviction is shared by my nation, that Michelle Bachelet is someone able to build bridges between the North and the South, between the East and the West,” Boric said as Bachelet watched on from the audience.

Bachelet was Chile’s first female head of state and served as president of the South American nation twice. She was also Chile’s minister for health and defense. Bachelet has also been the executive director of UN Women and UN High Commissioner for Human Rights.

“It’s time for Latin America and the Caribbean to have their moment,” he said, adding that the region is free of war and rich in diplomatic tradition.

International Atomic Energy Agency chief Rafael Grossi, who is Argentinian, has said he plans to seek the job. — Reuters