ECB chief insists won't abandon ship amid global turmoil

Russian strikes killed seven people, including a child, and wounded dozens across Ukraine on Tuesday, regional authorities said.

Moscow has pummelled its neighbour with hundreds of drones almost nightly since the beginning of the four-year war, but recently had expanded daytime strikes. 

A morning attack on the central Dnipropetrovsk region claimed the lives of five and wounded 27, said local governor Oleksandr Ganzha. 

"The enemy attacked four districts of the region more than 30 times with missiles, drones, and artillery," Ganzha said. 

In the afternoon, a Russian drone killed an elderly woman in the frontline city of Kherson in the south, said regional prosecutors. 

Later in the evening, another drone killed an eight-year-old boy and wounded nine in the central Cherkasy region, said its military administration. 

Separately, authorities in the port city of Odesa said Russian drones hit two civilian vessels and the harbour infrastructure. 

The industrial hub of Dnipropetrovsk lies more than 100 kilometres (60 miles) from the front line, which snakes through eastern and southern Ukraine.

Russian troops have captured a sliver of territory in the wider Dnipropetrovsk region, which is not one of the four Ukrainian regions that Moscow claimed to have annexed after its invasion.

Tens of thousands of civilians have been killed since Russia invaded in February 2022.

US-brokered talks on the conflict have failed to push the sides closer to a deal, with negotiations frozen for weeks.

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French luxury group Kering saw sales slide by six percent in the first quarter of this year, with its troubled flagship Gucci fashion house still dragging down its performance.

The group, which embarked on a deep restructuring effort with the hiring of CEO Luca de Meo last year, plans to unveil a roadmap to turning around its performance to investors on Thursday.

The six-percent drop in sales to 3.57 billion euros ($4.21 billion) was comparable to that suffered by rival LVMH, the world's largest luxury group.

Sales were flat on a like-for-like basis that strips out exchange rate fluctuations and changes in the business. 

"Group revenue stabilized, marking an important first step in our recovery and a further sequential improvement," said de Meo in comments on the first quarter.

Sales by Gucci fell by 14 percent to 1.35 billion euros.

The drop was eight percent on a like-for-like basis, which constitutes an improvement from pervious quarters.

"Gucci remains our top priority," said de Meo, who previously helped turn around the fortunes of French carmaker Renault.

"A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer," he added.

Kering has struggled to turn things around at Gucci, its flagship Italian fashion house famous for its handbags. Last march it wooed Georgian designer Demna to take over as artistic director.

Gucci is Kering's main money-spinner, until recently accounting for almost half of revenues and two-thirds of operating profit.

The group no longer provides a breakdown of sales by its other fashion brands that include Saint Laurent, Bottega Veneta, Balenciaga, McQueen and Brioni. 

Overall that division saw sales fall by nine percent to 2.85 billion euros, or by three percent on a like-for-like basis.

The much smaller jewellery and eyewear divisions both saw sales rise in the first quarter.

Kering said revenue in the Middle East fell by 11 percent in the first quarter after having posted growth in the first two months.

After initial disruptions due to the war launched by the United States and Israel on Iran, the company said its retail network is back in operation.

The group reiterated its objective to return to growth in 2026.

Last year, sales fell 13 percent to 14.7 billion euros, with net profits tumbling to 532 million euros.

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Far from the downturn that has shaken many luxury houses in recent years, Britain's Rolls-Royce on Tuesday launched an ultra-luxury, limited-series electric car. 

The imposing bonnet, crowned by the marque's iconic Spirit of Ecstasy mascot, remains, but the new convertible series marks a further step into fully electric luxury motoring. 

Limited to just 100 clients, the collection will be available by invitation only. 

The company intends to offer an opportunity "to be part of that journey, to be able to meet our designers, meet our craftspeople" and personalise every detail, Julian Jenkins, Rolls-Royce director of sales and brand told AFP. 

"Our clients have over 44,000 colours to choose from of our current palette."

While the company, owned by BMW since 1998, has not disclosed the price of the vehicles, it placed them between its most complex private commissions and other bespoke creations, which can reach several million pounds. 

The carmaker recorded a slight decline in sales last year, with a total of 5,664 vehicles sold -- a six percent drop from its record 2023 performance. 

The dip remains modest compared with the turbulence faced by other luxury brands, such as fellow British brand Burberry. 

In fact, 2025 was the company's "fourth best year", Jenkins said. 

"We've seen an increasing strength, particularly in our bespoke operation with our clients really wanting to commission something very special, something unique."

The company already knows who will be the 100 clients, and they will receive their cars from 2028.

They are mainly based in the United Kingdom, Europe, the United States and the Middle East, but not in China, where the car "is not homologated" due to "the efficiency regulations for electric vehicles", he said. 

The pastel blue prototype, named Project Nightingale, is a convertible two-seater with a sleek, streamlined silhouette. 

The model is inspired by the brand's experimental high-speed 'EX' models of the 1920s. Its range has not been revealed.

It is Rolls-Royce's second electric model, following the launch of the Spectre three years ago.

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South Africa on Tuesday handed back to Zimbabwe ancestral human remains and a centuries-old stone carving of its sacred national emblem, the Zimbabwe bird, stolen more than 100 years ago during the colonial era.

The restitution was part of a worldwide push for the repatriation of artefacts looted from African countries during colonisation.

Eight coffins draped in the Zimbabwean flag stood at an event for the handover in a Cape Town museum which was attended by officials from both countries.

Little was known about the remains except that they were of people who had been exhumed as "scientific specimens", officials said.

One was believed to have been a tribal chief whose skull and jaw were collected in 1910, culture minister Gayton McKenzie said.

"He was somebody's leader, a lot of people's ancestor. He has been sitting in the museum drawer for 116 years," McKenzie said.

Another was believed to be a man murdered over accusations of witchcraft.

"They were removed from their graves -- not found, not donated," McKenzie said.

Once repatriated, the remains would be returned to "where they belong", Zimbabwean government representative, Reverend Paul Damasane, said.

- Identity and spirit -

The soapstone carving of a Zimbabwe bird that was returned at the event was the first of several looted from the stone ruins of the ancient complex of Great Zimbabwe built in the 11th to 13th centuries, officials said. 

A British explorer had ripped it from its pedestal in the late 19th century and sold it to British mining magnate Cecil John Rhodes, the 1890-1896 prime minister of the Cape Colony.

It was displayed at Rhodes's Cape Town estate which was bequeathed to the government on his death in 1902. 

Nearly "140 years since the first one was taken and sold to Cecil John Rhodes, that very same statue ... is finally making its journey home," South Africa's culture ministry said.

South Africa had returned four other ancient carvings of the birds the year following the former British colony's independence in 1980, officials said. 

The original grey-green birds are around 33 centimetres (13 inches) in height and most were perched on stone columns more than a metre high at Great Zimbabwe, the centre of a once-powerful civilisation.

They are the national emblem of Zimbabwe, depicted on banknotes, coins and the national flag, and considered. 

Great Zimbabwe, a UNESCO World Heritage Site situated in the southeast of the country, is undergoing a $5-million revamp funded by the French development agency that is due for completion in the coming weeks.

The complex is Africa's second-largest remaining pre-colonial structure after the pyramids of Egypt.

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An art-loving engineer from Paris was the lucky winner of an original Picasso painting worth over a million euros at a charity raffle in Paris on Tuesday.

Ari Hodara, 58, who only bought his ticket at the weekend, was picked at a ceremony in Paris that was livestreamed from auction house Christie's, with the funds raised from the event to be donated to research into Alzheimer's disease.

A total of 120,000 tickets were sold at 100 euros ($118) apiece, with a portrait of Dora Maar, one of Picasso's muses, up for grabs. 

Titled "Tête de femme" ("Woman's head"), the inky grey and blue gouache work was painted in 1941 and was purchased from a private art dealership, Opera Gallery.

"How do I know this isn't a prank?" Hodara asked when called from the auction house after being picked from a list of ticket-buyers in 52 countries.

Organisers, led by French journalist Peri Cochin with backing from the painter's family and foundation, put on two similar raffles of the Spanish master's work in 2013 and 2020.

A 25-year-old American from Pennsylvania won the first, while an accountant from Ventimiglia in northwest Italy claimed the second after being given a ticket as a Christmas present by her son.

The 12 million euros raised will be donated to the Alzheimer's Research Foundation.

"The funding for research is ridiculous," head of the foundation, Olivier de Ladoucette, said Tuesday. "In our developed societies, we still haven’t understood that this is a major public health issue and that absolutely everyone needs to get involved. 

"This Picasso initiative is one more building block so that one day Alzheimer’s will be nothing more than a bad memory," he added.

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(The Center Square) – Concurrent with the Trump administration’s War on Fraud, a survey shows that most American voters believe government fraud is responsible for the nation’s high cost of living, with one expert saying that fraud is the “invisible tax.”

Utah Treasurer Marlo Oaks told The Center Square that the survey commissioned by the State Financial Officers Foundation “makes clear that Americans across the political spectrum are concerned about their tax dollars being lost to fraud and waste.”

“That concern reflects a straightforward reality,” Oaks said. “When accountability weakens, the financial burden ultimately falls on households.”

“Efforts to reduce the cost of living and to strengthen oversight are closely connected,” Oaks said.

“As financial officers, we are committed to ensuring that public funds are managed responsibly and transparently,” Oaks said.

“We will work with the Trump administration to protect taxpayer resources and reduce waste, fraud, and abuse,” Oaks said.

State Financial Officers Foundation is a collection of state treasurers, auditors, and comptrollers whose top job is to be a “watchdog of taxpayer dollars,” according to the organization’s media relations.

State Financial Officers Foundation CEO OJ Oleka told The Center Square in regards to his organization’s survey: “Americans rightly understand that fraud is the invisible tax worsening the affordability crisis.”

Oleka said that “taxpayer dollars being stolen and wasted by fraudsters isn't just a criminal issue, it's an economic one.”

“The Trump administration's war on fraud and waste is popular, justified, and absolutely necessary for reducing the cost of living for American families,” Oleka said. 

“Fortunately, dozens of principled state treasurers and auditors are bringing the same might to this fight as they brought to our battles against ESG, debanking, and every other threat to Americans' financial security,” Oleka said.

According to the poll conducted by Deep Root Analytics for the State Financial Officers Foundation, 87% of U.S. voters are very concerned (50%) or somewhat concerned (37%) about “fraud or misuse of taxpayer money in government programs.”

Misuse of tax dollars is no doubt important to these pollees and their standard of living, since the total household income before taxes for 40% of them is less than $50,000 a year, according to the poll.

Eighty-three percent of surveyed voters believe that “fraud or misuse of government funds contributes to higher taxes or costs for families” a great deal (46%) or a fair amount (37%).

Additionally, 70% of voters believe “there is too little oversight over government spending and people who want to misuse taxpayer money have too easy of a time doing it.”

This same percentage believes the nation needs “more aggressive fraud investigation and prevention measures to ensure taxpayers’ money isn’t wasted.”

Interestingly, At 32%, those with "moderate" political views were the largest political bracket surveyed.

Thirty-seven percent of those polled identified as Republicans, while 38% identified as Democrats.

The survey was conducted in March 2026 and surveyed slightly more females (52%) than males (48%).

The Trump administration’s War on Fraud began March 2026, with the establishment of a “task force to eliminate fraud.”

At the beginning of April, Colin McDonald was sworn in by Vice President Vance to lead the new National Fraud Enforcement Division, with the State Financial Officers Foundation stating it is "exactly the accountability America needs.”

Canadian Prime Minister Mark Carney promised quick action Tuesday to transform an economy under threat from US President Donald Trump, hours after his Liberal party clinched a majority in parliament.

The Liberals swept three by-elections held Monday, giving them full control of parliament and Canada's first majority since 2019, during Justin Trudeau's first term as prime minister.

"Now it's time to get serious," Carney said, addressing the election results.

"We're building big, we're moving fast, we're just getting started," he added.

Carney's Liberals won the most seats in a general election a year ago, but fell narrowly short of a majority.

Liberal poll numbers have improved over the past year, with Carney consistently reminding Canadians that they live in a changed world and can no longer count on solid ties with the United States.

Carney didn't mention Trump on Tuesday, but again stressed that Canada's economy needed to be "more independent."

While more than 85 percent of US-Canada trade remains tariff free, Trump's levies on key sectors have triggered Canadian job losses and slowed growth.

The North American free trade deal that Trump signed in his first term is also in jeopardy, with revision talks set for the coming weeks. Trump has said the pact offers the United States no benefit.

- 'Enormous shock' -

The Liberal majority was made possible by a series of stunning floor-crossings since last year's election. Four Conservatives and one left-wing New Democratic lawmaker have joined the Liberal caucus.

Carney on Tuesday dismissed Conservative criticism that he earned his majority through shady political deals.

He said every elected lawmaker had the right to support the government program.

"We're fortunate to have them," he said of the floor-crossers.

Carney's first policy move since securing his majority was a response to Trump's war in Iran.

The prime minister announced federal tax breaks on petrol and jet fuel that will begin Monday and are set to run through Labor Day, seeking to ease energy costs that have skyrocketed since the United States and Israel began striking the Islamic republic.

Carney called the war "an enormous shock in the global economy," and described the energy tax breaks as a "responsible and temporary measure" to make life more affordable.

- 'Be strong' -

The Liberals easily held two Toronto districts in Monday's by-elections, areas seen as safe seats for the party.

In the Quebec district of Terrebonne, the Liberal candidate edged out a challenger from the separatist Bloc Quebecois by just 731 votes.

In Montreal on Tuesday, 82-year-old Lisette Duquette told AFP she would have preferred a Bloc Quebecois victory but described Carney as "talented" and cited a tendency to "rally" behind him, "given the whole global situation."

Marcel Tremblay, a 75-year-old Montreal resident, said the face-off with Trump was Carney's key challenge.

"Now he has a majority. With what's happening in the United States and internationally, we need to be strong."

"The new prime minister is building ties with many other countries so that we'll have fewer dealings with the United States. That's a good thing," he said.

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Italian Prime Minister Giorgia Meloni received a sharp rebuke from US President Donald Trump and suspended a defence agreement with Israel on Tuesday, signalling a shift in her foreign relations.

The far-right prime minister was the only European leader to attend Trump's inauguration in 2025 and has sought to position herself as a bridge between Europe and his administration.

While ties with Israel were already becoming strained over the Gaza war, the relationship with Washington has been increasingly tense since US-Israeli strikes on Iran set off the Middle East war.

Energy import-dependent Italy has been hit economically and has refused to get involved in the war, siding with European allies.

Trump's extraordinary criticism on Sunday of Pope Leo XIV's growing anti-war rhetoric also proved particularly contentious.

After an initial mild statement of support for Pope Leo against Trump's broadside on Monday, Meloni issued clearer criticism the same day, saying the US leader's words were "unacceptable".

Speaking on the sidelines of a wine fair in northern Italy on Tuesday, Meloni returned to the subject of ties with Israel and the United States, saying that allies should be frank with each other.

"When we don't agree, and I often don't agree, we have to say it" and "act accordingly," she told reporters.

"In view of the current situation, the government has for example decided to suspend the automatic renewal of the defence agreement with Israel," Meloni said.

Israel responded saying the suspension of the deal, which involves the exchange of military equipment and technology research, "will not affect Israel's security".

"We have no security agreement with Italy. We have a memorandum of understanding from many years ago that has never contained any substantive content," Israeli foreign ministry spokesman Oren Marmorstein told AFP.

Tensions between the two countries have risen over the past week after the Italian government accused Israeli forces of firing warning shots at a convoy of Italian UN peacekeepers in Lebanon.

Italy summoned Israel's ambassador in protest over the incident, which damaged at least one vehicle but caused no injuries. 

On Monday, Israel summoned Italy's ambassador following comments by Italian Foreign Minister Antonio Tajani condemning "unacceptable attacks" on Lebanese civilians by Israeli forces.

- Meloni 're-positioning' -

Meloni is in a vulnerable position at home after losing a justice reform referendum last month -- her first political defeat and one that analysts put down in part to her closeness with Trump.

"She is re-positioning herself," Lorenzo Castellani, politics professor at LUISS University in Rome, told AFP.

Close ties with the US and Israel were creating "political problems" so she is "adapting to circumstances", he said.

Castellani said he believed that Italy would have "a more critical voice, while staying within existing alliances".

Her growing criticism of Trump got a strong response on Tuesday.

"I'm shocked at her. I thought she had courage, but I was wrong," Trump told Corriere della Sera in an interview.

Echoing her criticism of his attack on the pope, Trump told Corriere that it was she who was "unacceptable".

"She’s unacceptable because she doesn't mind that Iran has a nuclear weapon and would blow up Italy in two minutes if they had the chance."

Referring to her refusal to get involved in the Middle East, he said: "She thinks America should do the job for her, she should not be involved."

Meloni's allies and political opponents were swift to offer support.

"We are and remain staunch supporters of Western unity and steadfast allies of the United States, but this unity is built on mutual loyalty, respect, and honesty," Foreign Minister Tajani said on X.

He said that until now, Trump considered Meloni a courageous person, and "he was not mistaken, but she is a woman who never shies away from saying what she thinks".

"And on Pope Leo XIV she said exactly what all of us Italians think. The prime minister and the government defend and will always defend only and solely the interests of Italy," he said.

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Consumer sentiment slides, but retail spending holds for now

Retail and e-commerce are entering a fragile phase as they head into peak planning.

Consumer sentiment is falling again, but the implications for the industry are more complex than a single headline suggests. Beneath the surface, spending remains unevenly resilient, shaped by rising costs, geopolitical instability, and widening financial pressure across income groups.

For retail brands, the takeaway is not that demand is collapsing, but that demand is becoming more selective, more volatile, and increasingly tied to short-term economic signals. As peak season planning begins, that shift is already forcing changes in inventory and pricing strategies, as well as in fulfillment.

Below, Kase examines the latest consumer sentiment data and what it means for retail spending and peak season planning in 2026.

Sentiment drops to its lowest point this year

The University of Michigan’s March 2026 data shows consumer sentiment falling to 53.3, down 5.8% month over month and 6.5% year over year. Expectations declined even more sharply, dropping 8.7% month over month as households reassessed their near-term financial outlook.

The decline is closely tied to rising fuel costs and financial market volatility following the Iran conflict, which has already begun to influence inflation expectations and household budgets. Year-ahead inflation expectations climbed to 3.8%, the highest monthly jump since 2025.

Economists note that while long-term expectations remain relatively stable, short-term sentiment has deteriorated quickly, particularly among middle- and higher-income households exposed to market fluctuations and energy costs.

This aligns with broader global signals. In the U.K., consumer confidence has also weakened, with GfK reporting a drop in its index and a sharp decline in expectations for the year ahead. Retail sales volumes fell 0.4% between January and February, with further declines anticipated as energy costs rise.

Spending data tells a more nuanced story

Despite declining sentiment, spending has not collapsed. In fact, recent data suggests the consumer remains active, though increasingly constrained.

According to Bank of America Institute data, credit and debit card spending rose 3.2% year over year in February, the strongest growth in over three years, with a 0.9% month-over-month increase.

That growth, however, is not evenly distributed.

The so-called “k-shaped” consumer remains firmly in place. Higher-income households continue to outspend others, with 2.9% year-over-year growth compared to just 1.1% among lower-income households. Wage growth disparities are reinforcing that divide, with higher-income groups seeing 4.2% wage growth versus just 0.6% for lower-income groups.

Even as spending increases, the composition is shifting. Services like travel, dining, and lodging continue to drive growth, while retail categories show more mixed performance.

At the same time, early signs of stress are emerging. More consumers are making minimum credit card payments, and discretionary spending is slowing beneath the surface. American consumers are also falling behind on mortgage and student loan payments.

Retail Dive reporting confirms this pattern, noting that discretionary demand has already softened. Unit demand for discretionary goods fell 3% year over year in February, demonstrating that consumers may be spending more, but buying less.

Energy costs are becoming the pressure point

Energy prices are emerging as one of the most immediate drivers of both sentiment and spending behavior, affecting consumers, retailers, and the supply chain.

Historical analysis from Wells Fargo shows that spikes in gas prices can reduce consumer spending by up to 240 basis points within six to nine months.

That impact is already beginning to show. Rising fuel costs are increasing transportation and production expenses while simultaneously reducing disposable income. Economists warn that this dynamic effectively acts as a tax on consumers, redirecting spending away from discretionary categories like apparel and home goods.

Retailers are preparing for that reality, and have already been warned they may need to raise prices if current conditions persist. Brands have also flagged similar cost pressures tied to freight and energy.

The result is a dual challenge: softer demand paired with rising operational costs.

Retailers face a narrowing path forward

For retail and e-commerce brands, the current environment is defined less by contraction and more by constraint.

Consumers are still spending, but they are doing so more cautiously, often prioritizing experiences or delaying discretionary purchases. Tax refunds have provided a temporary boost in categories like electronics, apparel, and travel, but that lift is expected to fade.

At the same time, household budgets are tightening across essential categories, including housing, healthcare, and energy. Credit card delinquencies are rising, and buy-now-pay-later repayment challenges are increasing, further limiting future spending capacity.

This creates a more reactive consumer environment. Promotions, pricing changes, and external events are likely to drive sharper swings in demand throughout the year.

Retailers are already adjusting expectations. Some forecasts still project modest growth around 3% to 3.5% in 2026, but others suggest that this may be optimistic given current pressures.

What this means for peak season planning

Peak season planning is beginning under a different set of assumptions than in previous years.

First, demand is expected to be less predictable. Rather than a steady build throughout the year, brands should anticipate demand spikes tied to promotions, pay cycles, and external economic signals.

Second, inventory strategies are shifting. Holding excess inventory carries greater risk in an environment where discretionary demand is uncertain, but understocking creates exposure if demand returns quickly.

Third, pricing sensitivity is increasing. As inflation expectations rise, consumers are becoming more responsive to promotions and perceived value, particularly in non-essential categories.

Finally, timing matters more than ever. Shorter decision windows and faster shifts in demand are compressing the planning cycle for peak.

This indicates that peak season success in 2026 will likely depend less on forecasting accuracy and more on operational flexibility.

The role of 3PLs in a more volatile consumer environment

As demand becomes more uneven, the fulfillment strategy is playing a larger role in how brands respond.

3PL partners are increasingly being used to create optionality within the supply chain. That includes positioning inventory closer to demand centers, enabling faster fulfillment during demand spikes, and supporting more dynamic inventory allocation across channels.

Flexibility in transportation and fulfillment also helps offset cost pressures tied to fuel and capacity shifts. When demand changes quickly, the ability to reroute, rebalance, and scale operations becomes a competitive advantage.

For e-commerce brands, fulfillment partners can help navigate uncertainty in consumer behavior.

A consumer who is still spending, but thinking twice

The defining characteristic of the 2026 consumer is not retreat, but hesitation.

Spending remains intact, supported by wage growth in higher-income segments and residual savings. But pressure is building across multiple fronts, from energy costs to credit conditions to geopolitical uncertainty.

Consumer sentiment reflects that tension. It is not a signal of immediate collapse, but a warning that behavior is changing.

For retail and e-commerce brands, the coming months will test the ability to adapt to that shift. Those that can align pricing, inventory, and fulfillment with a more cautious, reactive consumer are likely to be best positioned as peak season approaches.

This story was produced by Kase and reviewed and distributed by Stacker.

US Secretary of State Marco Rubio called Tuesday for Israel and Lebanon to seize a "historic opportunity" for peace as the first direct talks in decades between the two countries got underway in Washington.

"This is a historic opportunity. We understand we're working against decades of history and the complexities that have led us to this unique moment and the opportunity here," Rubio said at the State Department as he welcomed the ambassadors of the two countries.

"The hope today is that we can outline a framework upon which a current and lasting peace can be developed," he added.

But pro-Iran Hezbollah -- which is battling Israeli forces in southern Lebanon -- called for the talks to be scrapped before they even began, describing them as "futile."

The Israeli military warned Tuesday that it expected a rise in attacks by Hezbollah targeting the country's north as the talks were being held.

Lebanon was pulled into the region-wide Iran war on March 2 after Hezbollah attacked Israel. 

Since then Israeli strikes -- including an extremely heavy attack on Beirut on April 8 -- have killed more than 2,000 people and displaced more than one million, despite international calls for a ceasefire.

Israeli Prime Minister Benjamin Netanyahu said Saturday that "we want the dismantling of Hezbollah's weapons, and we want a real peace agreement that will last for generations."

On the Lebanese side, President Joseph Aoun said Monday he hoped the Washington talks will yield "an agreement...on a ceasefire in Lebanon, with the aim of starting direct negotiations between Lebanon and Israel."

President Donald Trump's administration insists on the disarmament of Hezbollah, but also respect for Lebanon's territorial integrity and sovereignty, while simultaneously upholding Israel's rights -- positions that appear difficult to reconcile.

A former Israeli defense official told journalists on condition of anonymity Monday that it would take "a lot of imagination and optimism to think" that the issues between Israel and Lebanon can be solved in Washington Tuesday, adding that "expectations are low."

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