Ferrari’s first electric car sold at auction for record price

Ferrari’s first fully electric production car, the Luce, has made history before even reaching customers. The special ‘Chassis 0’ example was sold at the RM Sotheby’s auction during Monterey Car Week in California for an astonishing $40 million, making it the most expensive new car ever sold at auction, AzerNEWS reports.

The one-off car was created by Ferrari’s Tailor Made division and features a special commemorative plaque highlighting its historic status. Ferrari will donate the proceeds from the sale to educational initiatives through the Ferrari Foundation.

The result was far beyond expectations. The car had originally been estimated at around $1.1 million, meaning the final price was almost 40 times higher. It also surpassed the previous record for a new car sold at auction – a special Ferrari Daytona SP3 that fetched $26 million.

The Luce has attracted plenty of controversy since its unveiling on May 26. Ferrari’s shares fell by more than 8% that day, wiping around $5 billion from the company’s market value. Investors and enthusiasts questioned whether a fully electric Ferrari could preserve the character and emotion traditionally associated with the brand.

Former Ferrari president Luca di Montezemolo, who also led the Ferrari Formula 1 team, was particularly critical. He warned that such a car could damage Ferrari’s legendary image and even suggested that the iconic Prancing Horse badge should be removed from the electric model.

However, the huge auction result tells a different story. Despite the controversy, demand for the Luce has reportedly been strong, especially in China.

There is also an interesting twist: the car that sparked debates about whether Ferrari should go electric has already become a piece of Ferrari history itself. The Luce may be controversial, but its first example is now officially worth $40 million – proving that the transition to electric power has not made the Ferrari name any less valuable.

Pashinyan’s reshuffle reveals leader preparing for tough years ahead

Following the formation of Armenia’s new government on 3 August, twelve of the same ministers retained their portfolios, with only one change at the cabinet level: David Tadevosyan was appointed Minister of High-Tech Industry, replacing Mkhitar Hayrapetyan, who apparently refused to accept a deputy appointed by Pashinyan above him. Earlier in June, Pashinyan stated that he saw no need for major changes. While this may have been true on the surface, he remained silent about what lay beneath it. The more telling story of Armenia’s new government lies not in the composition of the cabinet, but rather in the staffing changes, the appointment of parliamentary speakers, and the replacement of deputy ministers with Pashinyan loyalists whose entire political careers have unfolded under his wing. Taken together, these changes point to an elected leader who secured an outright plurality – 64 seats, amounting to three-fifths of a majority – yet is governing like a man who expects the next two years to be more difficult than the last two.

Chief of staff was assigned to Lilit Makunts, following the resignation of the outgoing chief of staff Arayik Harutyunyan, who, after spending five years in the position, decided to step down and return to parliament as an ordinary MP. As the outgoing chief of staff, Makunts, who served as Minister of Culture, parliamentary faction leader, Ambassador of Armenia to the United States, and advisor to the Prime Minister, has considerable institutional weight and belongs entirely to the political environment around Pashinyan. Thus, Pashinyan managed to replace a chief of staff who had, after five years in office, built his own networks and institutional weight. Pashinyan’s new parliamentary speaker is Ruben Rubinyan, elected on August 3rd – Pashinyan’s personal envoy for negotiations on Armenia-Trkiye normalization talks and a protege with no political base at all.

The same applies to the leaders of the parliamentary factions and also to the changes in the deputies of ministerial positions in several ministries. This is a clear strategy: people with personal reputation and connections are being sidelined and sent into parliamentary retirement with honour, while those replacing them are selected for loyalty and not prominence. There has been no purge, there have been no arrests and no humiliation; Pashinyan has been careful not to make it look like a purge. But there has definitely been consolidation.

What are the main challenges amidst the reshuffles?

Referendum on the constitution: The peace agreement with Azerbaijan requires the removal of references to “Nagorno-Karabakh” in the constitution of Armenia. Sixty-four seats in the Civil Contract are not enough to launch a referendum, as it takes a two-thirds majority to do so without the help of the opposition. Pashinyan requires political space, which he lacks now.

Russian railway concession: The contract will be valid till 2038. Pashinyan changed his position from cancelling it to buying it out partially, as Russia threatens with $400 million compensation claims. It is an active issue and there are high stakes for Armenia to integrate itself in terms of transportation.

Energy transition: Pashinyan confirmed that specialists from Azerbaijan came to Armenian facilities twice to inspect the country’s electricity generation and transmission infrastructure of Armenia. Its aged nuclear power station is not even under its control, and it is still lacking funding for energy transition.

Autumn elections in regions: A bad result will provide a pro-Russian opposition with domestic discourse which can later be used by Moscow in the region to put pressure on the normalization process.

Aftermath and the anniversary call

On August 8th, which marked the one-year anniversary of the peace summit in Washington, Pashinyan called President Ilham Aliyev. The summary reported that both sides appreciated Trump’s contribution to the peace process and touched upon the possibility of Azerbaijani oil products’ exports to Armenia as well as the TRIPP corridor. The mood was friendly, and as much as the content stated concretely: more than 40,000 tons of transit cargo have been delivered via Azerbaijan to Armenia over the past year since the Washington summit; fuel shipments occurred in the opposite direction; the bilateral relations have developed within the period of a year from frozen to functioning.

Yet this call also implicitly recognised the fact that it still needs to happen. The peace agreement is not signed, but merely initialled. The constitutional amendment demanded by Azerbaijan was not put up for a vote at a referendum. The 41 kilometres of Zangezur corridor [TRIPP] through Armenia are not even in the planning stages yet. While a year has passed in Washington, real, quantifiable normalisation at the bilateral level and an impasse at the treaty level have emerged. In this context, Pashinyan’s reshuffles could be seen as a preparation for more difficult decisions rather than a result of taken decisions.

The initiative that requires the most attention among all those launched by the Armenian authorities is certainly that related to the talent pool: 1,141 applicants who are graduates of top universities in the world, 459 of whom proceed to the second stage, aged 34 on average. This initiative was launched by Pashinyan on June 15th, right after the results of the election were known, and was confirmed on August 3rd by the fact that the government is constructing a recruitment pipeline. This initiative is indicative of the authorities’ desire to introduce, step-by-step, the layers of technocrats that developed within the institutional environment of post-Soviet states – but without any nostalgia about Russian institutions and with knowledge of Western professional standards.

The very nature of the reshuffle seems to indicate that such instincts are alive and well. Pashinyan has taken advantage of the opportunity offered by the election results to cut down the ranks of his semi-independent advisors rather than add more to them. That may well be the logical reaction to the particular challenges that he is faced with a constitutional math that depends on the opposition’s agreement, a railway conflict with Russia that can be exploited by Moscow, a partnership with Azerbaijan over energy that is both profitable and sensitive, and a peace deal that requires domestic political courage which is easier to muster if you can keep everything under your own control. But whether this will result in a government flexible enough to act strategically in the two years ahead is another matter.

“Armenia cannot afford to have its import and export routes concentrated in a single direction and must develop alternative markets and transport links.” Nikol Pashinyan, on Armenia’s EAEU relationship, August 2026

With the first sitting of the new parliament, opposition MPs refusing to take the parliamentary oath due to the lack of the Catholicos’ participation in the ceremony is perhaps a move that symbolically revealed both the strategy of the opposition and its limitations. Criminal charges against members of Strong Armenia can be viewed as a countermeasure, which makes the main opposition defensive in its actions. Neither side has an advantage. While Pashinyan possesses the mandate and control of the institutions, the opposition has the backing of Russia and the moral strength of the church. This balance of forces will dominate Armenia’s internal politics for the coming four years, in the context of a peace process, which is yet to be completed – and hopefully won’t take long.

Yemeni forces report 181 operations against Houthi targets

The Yemeni Armed Forces carried out 181 military operations against targets belonging to the Houthi movement Ansar Allah over the past 24 hours, AzerNEWS reports.

In a statement, Army spokesperson Colonel Majid al-Nazili said that the operations involved drones, artillery and multiple-launch rocket systems, targeting military positions and sources of threat across several areas of fighting.

According to him, the strikes killed and wounded dozens of Houthi fighters, while dozens of vehicles and weapons depots were also destroyed.

The operations were conducted across a broad area along the front lines, including areas around Taiz, as well as the provinces of Hodeidah, Abyan, Marib and Al-Dhale.

The Yemeni Armed Forces urged civilians to stay away from military sites, facilities and gatherings of militants.

Al-Nazili added that the Yemeni Armed Forces remain fully capable of taking the initiative and changing the balance on the battlefield.

President Ilham Aliyev met with former Ukrainian President Viktor Yushchenko

President of Azerbaijan Ilham Aliyev has met with former President of Ukraine Viktor Yushchenko, who is visiting Baku, AzerNEWS reports.

This was reported on the official X account of the head of state.

The post said: “During our acquaintance, which has lasted for more than 20 years, we shared pleasant memories, recalled our joint efforts to strengthen Azerbaijan-Ukraine relations, and exchanged views on the future prospects of our ties.

During the meeting, the Ambassador of Ukraine to Azerbaijan presented me with the certificate of ‘Honorary Citizen of the City of Irpin’.”

Europe faces growing gas supply risks ahead of winter

Natural gas storage facilities across Europe are currently 60.8% full, AzerNEWS reports.

According to Gas Infrastructure Europe (GIE), concerns over the continent’s natural gas reserves are growing as storage levels remain below historical averages and are lagging behind the pace needed to comfortably reach pre-winter targets.

Warm weather in Southern and Central Europe is also hampering efforts to replenish storage facilities. Higher temperatures across the continent are increasing demand for gas-fired power plants, resulting in part of the gas intended for storage being diverted to electricity generation.

Meanwhile, natural gas futures prices in Europe are also rising. Gas prices at the Dutch TTF hub have reached pound 62.26 per megawatt-hour.

The price increase is being driven by continued disruptions to liquefied natural gas (LNG) supplies from the Gulf, reduced shipping traffic through the Strait of Hormuz, and uncertainty surrounding US-Iran negotiations.

Analysts expect ongoing uncertainty over the Strait of Hormuz, combined with low gas storage levels in Europe, to keep natural gas prices elevated this week. However, developments in LNG flows are expected to remain the key driver of price movements.

If storage levels remain low, particularly if the situation persists into the colder winter months, natural gas prices could rise sharply between November and March.

According to research and consulting firm Wood Mackenzie, Europe’s historically low natural gas storage levels pose a risk to supply security during the 2026-2027 winter season.

National culture and traditions captivate festivalgoers in France [PHOTOS]

Azerbaijan’s national dances, music and cuisine have been showcased at Montoire World Folklore Festival held in France, AzerNEWS reports.

The country was represented at the festival by the Ritm dance group, with the support of the State Committee for Diaspora Affairs of the Republic of Azerbaijan and the Azerbaijani Embassy in France.

Throughout the festival, the Ritm dance group performed a variety of Azerbaijani traditional dances accompanied by the Balabanchi musical ensemble. The dancers’ colourful and distinctive national costumes, high-level choreography and the strong national character of their performances attracted considerable interest from the audience and were met with enthusiastic applause.

The choreography drew on the creative legacy of People’s Artists Alibala Abdullayev and Roza Jalilova, Honoured Artist Telman Aliyev, as well as Farhad Valiyev, Anar Aghaoglu and Shahriyar Jafarov. The national costumes were designed by artist Leyla Aliyeva.

Folklore groups from the United States, South Korea, Uruguay, Tahiti, Mexico, Slovenia, India, Slovakia, New Zealand and Indonesia’s Sulawesi Island also took part in the festival alongside Azerbaijan. This year’s event attracted nearly 20,000 visitors.

The Azerbaijani Embassy in France also participated in the festival with a special exhibition stand. The display featured Azerbaijani painting, sculpture, carpet weaving, music and national cuisine, as well as books, magazines and souvenirs published in French by the Heydar Aliyev Foundation, highlighting the country’s ancient history and rich cultural heritage.

Visitors were also offered traditional Azerbaijani dishes and wines. The exhibition attracted considerable interest from guests from France and other countries, who were given information about Azerbaijan’s ancient history, tangible and intangible cultural heritage, and national values.

On the second day of the festival, the organizers hosted a special dinner dedicated to Azerbaijani culture. Guests were treated to traditional dishes including ovdukh, eggplant chigirtma with meat and shekerbura. The tables were decorated in the colours of the Azerbaijani flag, while informational brochures about the country were also distributed.

The evening continued with live performances of Azerbaijani traditional music by the Balabanchi ensemble.

The music added a distinctive atmosphere to the event and sparked strong interest among festival participants, who expressed their appreciation for the richness and uniqueness of Azerbaijani musical traditions.

Through its dance, music, cuisine, crafts and rich cultural heritage, Azerbaijan was presented at the festival as a country with a diverse and distinctive cultural identity, contributing to the international promotion of Azerbaijani culture.

South Korea’s leveraged ETF experiment exposed dangerous market vulnerability [Op-eD]

The events that unfolded in South Korea’s financial markets during the summer of 2026 offer a sobering lesson in how regulatory frameworks, when misaligned with investor behaviour patterns, can amplify market instability rather than contain it. Between June 19 and July 30, the KOSPI index shed over 40 percent of its value, a 3,792-point plunge that evaporated wealth equivalent to South Korea’s entire GDP.

The genesis of this crisis lies in a policy decision made with understandable objectives. In late 2025, South Korea’s Financial Services Commission faced a legitimate challenge: the domestic stock market had consistently underperformed global peers, spurring domestic capital to migrate toward U.S. equities. To revitalize the domestic market and recapture foreign investor confidence, regulators approved 2x leveraged ETF products in May 2026, anchored to blue-chip stocks like Samsung Electronics and SK Hynix.

The regulatory logic was sound in principle-drawn from the mature U.S. leveraged ETF market. The critical oversight, however, was one of demographic reality. While U.S. leveraged ETF users tend to be sophisticated institutional investors with risk management protocols, South Korea’s investor base proved strikingly different. Within weeks of launch, young retail investors-predominantly aged 20 to 30-poured roughly 14 trillion won into leveraged products. This cohort committed not just savings but down payments for homes, pension funds, and even consumer loans to chase the upward momentum in semiconductor stocks.

The numbers tell a stark story: 62 percent of all leveraged traders were young investors. By late June, leveraged ETFs tracking Korean assets had swelled to approximately $50 billion in total size. The combined leverage balloon-including brokerage financing and leveraged ETFs-reached 120.6 trillion won, a sum that should have triggered regulatory caution.

The mechanism at the heart of this buildup was deceptively simple yet structurally flawed. Leveraged ETFs employ daily rebalancing to maintain their leverage ratios. When underlying stock prices fall, the ETF must automatically sell holdings-meaning price declines themselves trigger forced selling, creating what analysts call a “death spiral.” A falling market triggers margin calls; margin calls trigger forced liquidations; forced liquidations push prices lower. The process becomes self-reinforcing.

When the Architecture Fails

The collapse began subtly in mid-July 2026, when forward guidance on memory chip oversupply and the slower-than-expected monetization of AI applications dampened market sentiment. What followed was a textbook demonstration of how leveraged instruments amplify downside moves. Approximately 1.2 million retail leveraged accounts fell below maintenance margins, with between 320,000 and 460,000 accounts completely liquidated by July’s end-their principals erased entirely.

The data reveals a troubling pattern: by early August, over half of South Korea’s leveraged funds had contracted. The combined balance of leverage-which had peaked at 120.6 trillion won-shrank to 55.7 trillion won, a 54 percent contraction in mere weeks. Leveraged ETFs specifically contracted by 71 percent, from 82 trillion won to 23.5 trillion won.

More than 600,000 young Korean families faced devastating consequences. The Korea Financial Investment Association reported that forced liquidations in July totaled approximately 993 billion won, with 62 percent of liquidated accounts belonging to investors aged 35 or younger. As one retail investor wrote in despair: “I’ve not only lost all my savings, but I also owe a large sum to my broker.”

What makes this episode particularly consequential extends beyond immediate losses. The psychological blow to market participation has proven substantial. The share of individual investors in KOSPI trading volume collapsed from 48.1 percent in January to 31.2-31.5 percent by July, while foreign investor participation rose to 38-39 percent-capturing market influence for the first time in years.

More troubling is the explicit loss of confidence voiced by the affected generation. Social media posts reflect a resignation that has hardened into self-imposed exile: “I’ve set two rules for myself. First: don’t invest in the Korean stock market. Second: follow the first rule.” When an entire demographic withdraws from domestic capital markets, policymakers face a structural problem that transcends immediate market recovery. The foundation of a healthy market-broad retail participation-has been damaged, possibly for years.

Yet rather than embracing domestic markets, South Korean retail investors have pivoted to U.S. leveraged ETFs, particularly the 3x semiconductor ETF (SOXL), which saw inflows of $2.49 billion in a single month. The trauma of domestic losses has paradoxically driven them toward even more aggressive leverage vehicles abroad-a pattern that suggests not the restoration of confidence but rather a shift in venue for speculative excess.

The response from authorities came swiftly. The minimum margin requirement for leveraged ETFs was raised from 10 million won to 30 million won, causing related trading volumes to plummet from 12.4 trillion won to below 1 trillion won. The National Assembly launched accountability proceedings. The Finance Ministry pledged structural stability measures. These interventions address the immediate symptom but leave deeper questions unresolved: Why was a leveraged product aimed at a retail investor base without the institutional safeguards present in more mature markets? How were regulatory supervisors unable to detect the concentration risk in their own domestic market? What mechanisms ensure that future policy experiments do not replicate this pattern?

South Korea’s experience carries implications that ripple across Asia and beyond. Taiwan, with 48.93 percent foreign ownership in its weighted index and heavy concentration in semiconductors, mirrors several concerning characteristics. India has experienced equivalent foreign capital withdrawals. The underlying dynamic-markets dependent on single industries, heavily populated by foreign capital, and saturated with leveraged speculation-creates systemic vulnerability.

The architecture of global capital flows has evolved such that emerging markets often absorb the volatility that developed markets export. When U.S. markets require digestion of excess valuations, capital selectively withdraws from vulnerable periphery markets. South Korea’s policymakers believed they were designing a tool to attract capital. Instead, they may have constructed an instrument through which capital could profitably extract wealth from retail investors.

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Hadia Safeer Choudhry is an International Relations graduate with a solid academic basis in Diplomatic Relations, International Law, and Intercultural Communication. Her writings focus on international relations, feminism, and current trends

Trump sends mixed signals on backing Netanyahu in Israel election

United States President Donald Trump stated on Monday that he might endorse “someone” in the Israeli legislative election, scheduled for October 27, AzerNEWS reports.

Speaking to Fox News, Trump remarked that, in his opinion, it would be best for him to stay out of Israel’s politics and internal matters. Moreover, he advised Israel against continuing its armed campaign in Gaza.

His comments came after it was reported that Trump would endorse Israel’s incumbent prime minister, Benjamin Netanyahu, in the election.

However, he later said that Netanyahu was a great wartime leader, while adding about a potential endorsement that “I don’t know anything about his politics, I’m not sure.”

Great Return continues as families resettle in Shusha and Khojavand

The resettlement of Azerbaijanis to territories liberated from occupation is continuing as part of the Great Return program, in line with the instructions of President Ilham Aliyev.

AzerNEWS reports that at the latest stage of the program, 11 families comprising 39 people have been relocated to the village of Kichik Galaderesi in Shusha, while 18 families, or 82 people, have returned to the village of Guzeykhirman in Khojavand district and another 21 families, totaling 103 people, have moved to Guneykhirman.

The families returning to their ancestral homes had previously been temporarily accommodated in different parts of Azerbaijan, mainly in dormitories, sanatoriums and administrative buildings.

For many of the returning residents, the resettlement marks the fulfillment of a dream they had waited decades to realize. They are now beginning new lives in their ancestral villages, contributing to the revival of communities that had remained empty for years.

Among those returning to Kichik Galaderesi is Orkhan Gasimov, for whom the move carries profound personal and emotional significance.

‘We are moving to Galaderesi village in Shusha district. We are returning to the land where our father fought. We are going there to revive our village and build a new life there,’ Gasimov said.

He said he was particularly happy to witness the revival of his native village, adding that rural life is a dream for many people who have spent years in cities. For him, however, Galaderesi represents much more: it is his ancestral land, his homeland and the place he had long hoped to return to.

‘That is our ancestral land, our homeland. Whatever work there is to be done, we will do it and live there. The beauty of nature and the air there make a person feel healthier and spiritually younger. They also give you a desire to live,’ the young Shusha resident said.

Gasimov said his feelings of admiration for Galaderesi’s natural beauty were accompanied by a deep sense of pride in returning to his homeland. He also viewed the return as a tribute to those who lost their lives in the struggle to liberate the territories.

‘Indeed, God has given us a great blessing. If we are returning there at the cost of so much bloodshed, we are going with a sense of pride and joy. God willing, everything will be better,’ he said.

The same sense of joy and pride is being experienced by families returning to Khojavand’s Guzeykhirman village.

Vagif Gozalov, one of the residents returning to the village, described the day as one of the happiest and most eagerly awaited moments of his life.

‘Today is truly one of the happiest days we have been waiting for with great hope. We are returning to our homeland, to Khojavand and to Guzeykhirman village,’ Gozalov said.

He praised the efforts undertaken by the Azerbaijani state to make the return possible and expressed condolences to the families of those who lost their lives, while wishing good health to wounded veterans and other servicemen.

Gozalov also expressed his hope that other Azerbaijanis displaced from their ancestral homes would soon have the opportunity to return.

‘We are returning with great joy. What could be more beautiful or happier than these days? I wish everyone success and hope that our happy days will continue on those lands,’ he said.

For Gozalov, the return of displaced families is closely connected with the restoration of Azerbaijan’s territorial integrity. He also expressed optimism about the country’s future.

‘The path we are following for the sake of a united Azerbaijan shows that the course pursued by our Supreme Commander-in-Chief is the right one. May God rest the soul of our National Leader. Our President is successfully continuing his policy. All our lands are free,’ the former internally displaced person said.

He expressed the hope that people would no longer have to endure the suffering caused by displacement and would instead live peacefully and prosperously in their ancestral homes.

The latest resettlements underscore the broader transformation taking place across Azerbaijan’s liberated territories, where reconstruction, infrastructure development and the return of former internally displaced persons are gradually turning long-awaited homecomings into a new reality.

For the families arriving in Shusha and Khojavand, the Great Return is not simply a change of residence. It represents the restoration of family roots, the revival of local communities and the beginning of a new chapter of life in the places they have long regarded as home.

UAE reportedly offered to finance Syrian operation against Hezbollah

The United Arab Emirates has reportedly expressed readiness to fully finance a potential Syrian military operation in Lebanon targeting Hezbollah, including covering fighters’ salaries and operational costs, AzerNEWS reports via Al Mayadeen.

The reported proposal was linked to a broader US-backed scenario under which Syria’s new leadership would deploy its forces into Lebanon to confront Hezbollah.

According to the report, Abu Dhabi was prepared to provide the financial resources required for such an intervention, including funding personnel and combat operations.

The plan was reportedly opposed by Iran, which warned Syria’s new leadership and regional governments that a Syrian military intervention against Hezbollah could trigger a broader regional confrontation.

The report comes amid continued uncertainty over the role of Syria’s post-Assad government in regional security arrangements and its relations with both Israel and Hezbollah. Tehran has maintained close ties with Hezbollah, while Gulf states have sought to expand their influence over Syria’s new political order.

Al Mayadeen’s report did not provide independent evidence confirming that the UAE had formally committed to financing such an operation. Neither Abu Dhabi nor Damascus has publicly confirmed the reported plan.