Prince Charles hosted a reception at Buckingham Palace for celebrity ambassadors and award winners of his youth charity, the Prince's Trust. Among the winners were Fiath Idowu, who won the Prince's Trust Global Achiever Award, and said that the invitation to the Palace was "a dream come true". The trust was set up in the 1970s when Prince Charles was still a prince and has since supported 80,000 people worldwide. The charity counts actor Idris Elba as one of its beneficiaries.
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.
UK Prime Minister, Rishi Sunak, has said that he is considering following the US's lead by imposing new restrictions on domestic companies investing in critical industries in China. US President, Joe Biden, has been drawing up a plan to limit investments in key parts of the Chinese economy, which is yet to be announced. Sunak also mentioned that placing further export controls on China would also be discussed at the G7 gathering. Meanwhile, Sunak has backed away from his promise to ban Confucius Institutes from operating in Britain in an attempt to improve UK-China relations.
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.
The White House has defended Joe Biden's decision to cut short his tour of Asia to resolve the debt-ceiling standoff with Republicans. The US president's meetings with Pacific island leaders and attendance at the Quadrilateral Security Dialogue summit in Sydney were both put on hold while he returned to Washington, leading to accusations that it benefitted China. White House adviser Jake Sullivan, while en route to Japan, said that the postponed work could be "done at a later date," but the negotiations over the debt limit and budget could not be put off.
As the Group of 7 summit opens today, global leaders will discuss how to keep the international economy stable amidst growing uncertainty. Two major issues on the agenda are Ukraine and China. However, the most pressing threat to the global economy may be the US economy. With less than two weeks remaining to pay its bills, a default would jolt its own economy and those of the other G7 countries. In an attempt to address the issue at home, President Biden has cancelled the second part of his planned trip, which included visits to Papua New Guinea and Australia. Analysts warn that fears of an unreliable and dysfunctional America will be revived in that region where the US has only recently started to rebuild trust and momentum.
Climate scientists face a communications challenge to convey the scale of the climate emergency to which they are alerting the world, according to Bloomberg Opinion’s David Fickling. Scientific projections of the future impact of global warming may seem abstract and distant to many, even as the effects of the crisis become blindingly apparent. The broad techniques used by scientists to make verifiable forecasts about the future, and the way the human brain processes statistical data, exacerbate this disconnect, Fickling argues. There are also substantive obstacles to predicting some of the short-term effects that generate media coverage and to forecasting things like the highest temperature ever recorded in a particular region. Meanwhile, the public faces a constant barrage of short-term distractions. Fickling argues that, instead of accusing scientists of alarmism when their predictions are confounded, society should take such concerns seriously.
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.
Japan's stronger-than-expected economic growth in the first quarter of this year could lead to a gradual unwinding of the Bank of Japan's unconventional policies, implemented over the past 20 years. Though new central bank governor Kazua Ueda has commissioned a review of the bank's policies, it remains to be seen whether he will be successful in unwinding policies under pressure from global monetary tightening by other advanced economies. The possible disinvestment of decades-long trends could lead to a rapid appreciation of the yen, blunting Japan’s competitiveness and disrupting the bond and currency markets of other Western countries in which Japan's funds have been invested.
China will resume importing Australian timber from Thursday after a suspension that began in late 2020 due to the discovery of pests, according to Xiao Qian, China’s ambassador to Australia. The annual trade, which was worth AUD600m ($399m), has been largely off-limits since then.
Several Australian firms and a few hundred worldwide are trialling a four-day work week, following a suggestion by a Senate committee earlier this year for Australia to introduce the system. One Australian company to have shifted is the Our Community software firm, whose founder, Denis Moriarty, said the change had radically altered the company culture and improved motivation. Trials - usually involving companies with fewer than 25 employees - have resulted in benefits such as increased productivity and reduced stress. Critics have argued the costs associated with implementing a shorter working week are too high, while others have questioned whether increased pressure to be more productive could lead to more stress among employees.
Analysis: Proponents of the four-day week argue that improved levels of output per unit of time make the system economically viable. While critics of the approach cite concerns over the cost and viability of the system for some industries, as well as potential logistic challenges surrounding the increase in productivity required to complete a week’s work in four days. I believe these challenging economic times are what is pushing people and companies to examine the viability of this system.
The Australian Football League (AFL) has lent its support to an Indigenous Voice to Parliament, following other major sporting codes such as the Rugby Australia, the National Rugby League (NRL), Football Australia, Tennis Australia, and the Australian Olympic Committee. The AFL praised the contribution and influence that Aboriginal and Torres Strait Islander players have made to the game and community, and acknowledged the leadership roles they hold in each state and territory the sport is played in. The league is currently celebrating Indigenous culture through rounds 10 and 11 of its Sir Doug Nicholls Round.
National Australia Bank's CEO, Ross McEwan, believes the Reserve Bank of Australia will have to raise interest rates again to fight the threat of inflation, despite the increased pressure the move could place on borrowers. McEwan has noted the Reserve Bank's challenge to determine how to slow quarterly inflation without hurting customers, especially as just 30% of Australian households have mortgages.
China and ASEAN negotiators have agreed to hasten a review of the code of conduct to maintain peace in the South China Sea, the Chinese foreign ministry announced on 28 July. The agreement comes a year after the legally binding code was supposed to be enacted. There are multiple claims and disputes over the area, with China enhancing its presence considerably in recent years. The US considers the South China Sea to be critical to its Indo-Pacific policy and has sent navy vessels to carry out exercises and maintain freedom of navigation close to Chinese-controlled islands and reefs in the area.
New car import rules which come into force in January may pose a threat to the UK's struggling car manufacturers. As of next year, all cars exported from the UK into the European Union must contain 45% of their components by value from either the UK or the EU. Vehicles that do not meet this threshold will face a 10% duty when heading for the Continent. The rules were designed to encourage firms to establish supply chains nearer home, however, the UK has failed to establish a battery industry, meaning car executives fear that the deadline will be an "existential threat". Industry experts have warned that the new regulations could cause the closure of such sites as Stellantis's Vauxhall van factory at Ellesmere Port. The rules will also make industry-based technologies, such as professional wireless communication devices, more important when conducting automotive research and development.
James Hynes’ Sparrow is a historical novel giving voice to the last of the Romans in Britain. The novel is set around Jacob, who was called a cinaedus—a Roman sex slave. Raised amid prostitutes, the boy was bought by mistake, with everyone believing he was a girl. Sparrow offers readers an intimate depiction of the workings of the brothel having been overseen by the bullying pimp Audo, and as the boy grows, his effeminacy attracts scorn and increasing severe abuse. Historians know the brutal Roman sex trade, and Hynes uses it to animate Sparrow’s secret teeming with sensuality and frailty.
St George Illawarra's interim coach Ryan Carr is unsure of captain Ben Hunt's role for the remainder of the NRL season ahead of their match with struggling Roosters at Netstrata Jubilee Stadium on Friday night. The return of Zac Lomax and Jacob Liddle is planned, but Carr faces deciding whether to utilise their best player Hunt, who has spent time at hooker lately to allow Jayden Sullivan to work at halfback. Roosters assistant Jason Ryles is the front runner for the Dragons job, taking a closer look at potential players and seeking Griffin's job.
Taiwan is still hoping to receive an invitation to the World Health Organisation’s annual assembly, which commences on 21 May in Geneva, despite China still opposing the invitation of the democratically governed island. Despite opposition, several of Taiwan’s diplomatic allies have issued statements offering support for their participation, allowing for several bilateral meetings with the country. In response to China blocking Taiwan’s World Health Assembly participation in 2017, Taiwan pursued a diplomatic campaign to attend the global health forum as an observer. Researchers have suggested that Taiwan’s exclusion from the WHO could have hindered efforts to fight the COVID-19 pandemic.
Italian investment bank Mediobanca is set to acquire London-based M&A advisory firm Arma Partners, enhancing its expertise in European software buyouts and expanding its international reach. The deal is expected to add 30% to Mediobanca's corporate investment banking fee pool and boost earnings per share, the bank said, although it didn't disclose the cost of the transaction. The deal comes as CEO Alberto Nagel prepares to unveil a new three-year strategy on 24 May.
Leaders from seven of the world's wealthiest democracies and the EU are meeting at this year's Group of Seven (G7) summit, which kicked off on Friday in the Japanese city of Hiroshima. The talks are expected to cover tensions in the Asia-Pacific following the exclusion of China from the summit, with much of the early attention focused on growing fears over North Korea's nuclear programme. The situation in Ukraine and Britain's EU referendum will also feature on the summit’s agenda.
