US President Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy have expressed optimism that a deal can be reached to avoid a potentially catastrophic default on the country’s $31.4tn debt commitments. The outcome remains uncertain, however, as the Treasury has warned the government could run out of money to pay its bills as soon as 1 June. The size of the US debt ceiling is self-imposed, with the government spending more money than it raises in taxes. Any agreement to raise it would need to be reached before the US reaches the limit of its borrowing capacity.
The US House of Representatives committee is considering a contempt of Congress charge against Secretary of State Antony Blinken over the release of a classified cable regarding the August 2021 US withdrawal from Afghanistan. The committee could vote on whether to recommend the charge against Blinken as soon as next week. The Republican House Foreign Affairs Committee chairperson has launched an investigation into the withdrawal from Afghanistan, saying that there has never been a full accounting of the chaotic operation.
China's special envoy for Eurasia, Li Hui, will visit Brussels as part of his European tour, which began in Kyiv on 11 January, before passing through Warsaw, Paris, and Berlin, and concluding in Moscow. According to reports, Li added Brussels to his itinerary after being told that Kyiv would not accept any proposals leading to territorial loss. Ukrainian Foreign Minister Dmytro Kuleba has said the country will not “accept any proposals that would involve the loss of its territories or the freezing of the conflict”.
Pakistan's government has said it will try suspects accused of attacking army installations in military courts following protests in the wake of the arrest of former Prime Minister Imran Khan last week. Military courts were established primarily to try members of the military or enemies of the state, with civilians only being tried there under a federal government order. Pakistan's military courts have faced widespread criticism from within Pakistan and rights organisations globally because of their secretive nature and their existence alongside a functioning civilian legal system.
Asian investors are eyeing several significant economic indicators from Japan and Australia on Thursday, as well as an interest rate decision from the Philippines. However, the main hope for a rebound in Chinese markets could be the prospect of a US deal on the federal debt ceiling, which has boosted stocks and the dollar. The mettle of that claim may be tested, however, after the poorest set of Chinese economic indicators in over six months caused a 1% decline on Wednesday. Nonetheless, Japan is on a high after Q1 GDP growth outperformed expectations and the Nikkei rose over 30,000 points for the first time in 20 months.
Chinese actress Gong Li praised Michelle Yeoh's recent successes at the Oscars and Golden Globes, saying that it was particularly encouraging for Asian actors. Gong, who herself is one of China's best actors, also remarked that the film industry has not been as vibrant as it was before the pandemic and that everyone needs to go out and see the world again. Gong was on the red carpet at the Cannes Film Festival this week. China dropped its zero-COVID policy in late 2021, which had previously kept its borders closed to most international travel.
Hirokazu Kore-eda, the Japanese director behind "Shoplifters" and "The Truth," will return to Cannes with his latest film "Monster," featuring a score by Ryuichi Sakamoto in one of his last compositions. The film follows a single mother and her troubled son, and explores the misunderstandings between them and a teacher that come about following a classroom incident. Critics praised the film's structure and setting, and the jury at the festival will this year be led by Swedish director and last year's jury president Ruben Ostlund.
New Zealand's "no frills" budget released on Thursday has focused on fiscal sustainability with the finance minister cutting NZD4bn ($2.54bn) in spending in order to rebuild infrastructure damaged by floods and cyclones earlier this year. Prime Minister Chris Hipkins must convince voters that his party, in an election year, will hold its balanced approach and build for the future. However, the Bank of New Zealand economists have said that although the budget will include some stimulus measures, they are unlikely to be significant.
The UK and Japan are set to deepen their security ties and sign a new accord called the "Hiroshima Accord," covering areas such as defence, trade and investment, science and technology, and joint initiatives to tackle global issues such as climate change. As part of the deal, the UK, which is looking to deepen relationships with countries outside Europe after leaving the EU, has committed to deploying an aircraft carrier strike group to the Indo-Pacific in 2025. The two countries will also agree on a formal "Consult Clause," while trade and investment as well as science and technology programmes will be supported under the agreement.
The Japanese Prime Minister, Fumio Kishida, has met with top executives, including senior representatives from Intel and Taiwan Semiconductor Manufacturing, amongst others, ahead of the Group of Seven leaders’ summit in Hiroshima to discuss additional investment from global chipmakers into Japan and the G7 leaders’ discussion on stabilising supply chains.
Australia's employment rate fell unexpectedly in April by 4,300 after two months of large gains. This has trend has led to jobless rate rising to 3.7% compared analysts' forecast of a steady rate of 3.5%.
US President Joe Biden is set to meet with South Korean and Japanese leaders during the upcoming G7 leaders summit in Japan, according to White House National Security Advisor Jake Sullivan. A trilateral meeting will be attempted between the leaders.
Japan's export growth in April hit its weakest pace in over two years, rising 2.6% from the previous year, due to a slump in shipments to China. Meanwhile, imports fell by 2.3%, much larger than the predicted 0.3% drop, signifying the first annual decline in 27 months, on the back of falling crude oil and other commodities prices. Japan's economy benefited from an increase in consumer spending and tourism as COVID-19 restrictions ended in Q1, but the weakening export activity could slow down the economy's recovery.
Six Pacific countries are at a high risk of debt distress due to government spending in response to the COVID-19 crisis, according to a report by the World Bank. Fiscal consolidation is needed in Kiribati, the Republic of the Marshall Islands, Federated States of Micronesia, Samoa, Tonga and Tuvalu. These countries lack access to domestic debt markets and international capital markets, the report said, meaning high debt levels could pose a problem. Vanuatu was rated as medium-risk, while Palau and Nauru’s debt was rated as sustainable. The report recommended improving tax collection and allocating more to social assistance and protection measures.
Japan military hospital to treat injured Ukrainian soldiers - lawmaker
Reuters
23-05-18 05:26
Japan is preparing to treat Ukrainian soldiers injured in the recent conflict with Russia at a Tokyo hospital run by the military. The Self-Defence Force Central Hospital has never treated foreign soldiers before, but the move is being seen as Japan's latest support measure following Russia's invasion. Details including costs will be decided at a meeting between Japanese Defence Minister Yasukazu Hamada and Ukrainian ambassador to Japan Sergiy Korsunsky.
The leader of the Move Forward Party in Thailand, Pita Limjaroenrat, has said he is confident his party can muster enough support to form a stable and balanced government following its victory in Sunday's general election. Limjaroenrat leads an alliance of eight parties with around 313 seats in the 500-seat lower house. Sunday's result ended a decade of conservatism and army-backed rule in Southeast Asia's second-largest economy. The new government will need 376 votes to elect a prime minister to form a government, while convincing the 250 upper-house senators is also crucial to securing the balance of power.
China's youth unemployment rate hit a record high recently with the rate currently standing at 20.4% for people aged 16 to 24. The rate is expected to increase as roughly 11.58 million graduates are due to flood the job market this summer. Unemployment among younger people appears to be continuing to have a negative impact on their career prospects and socioeconomic status. Despite the Chinese government's recent initiatives asking for state-owned enterprises to employ as many graduates as last year and applying direct administrative solutions, companies are remaining cautious about investing capital or hiring more people. However, some economists believe that youth employment will decrease when China's economic expansion improves.
Authorities in New Zealand are expected to start removing bodies from the site of a suspected arson attack on a Wellington housing lodge, where six people died on Tuesday. Police opened a homicide inquiry following the blaze and expected to bring out two bodies on Thursday and a further two on Friday. Major structural damage to the building has disrupted the emergency services operation, which police said could take several further days.
Vietnam has criticised China for attempting to conduct a survey in its exclusive economic zone (EEZ) in the South China Sea. Tensions between the countries have increased, with Chinese and Vietnamese vessels engaging in confrontations in recent days. The sea is one of the world’s most important trade routes and handles more than $3tn of ship-borne commerce every year. The Philippines has also been criticised for placing navigational buoys in waters that are part of the disputed Spratly Islands, for which other countries, including Vietnam, also lay claim.
The European Bank for Reconstruction and Development (EBRD) looks set to boost capital by €3bn-€5bn, potentially allowing it to sustain investment levels in Ukraine. The bank has already allocated €3bn to the war-torn state, which is currently fighting off a Russian invasion. President Odile Renaud-Basso said: “Increasing paid-in capital will give us the means to sustain such level of investment and step up our investment (in Ukraine).”
