A Group of Seven summit is expected to face significant tensions on the issue of nuclear disarmament. Many atomic bomb survivors in Hiroshima fear that the summit may be the last time that world leaders will call for disarmament. For those in the West, Russia's invasion of Ukraine has reminded them of the important role played by nuclear deterrence. The summit is also expected to discuss ways of curbing nuclear programmes in Iran and North Korea. Barack Obama, the last US President to visit Hiroshima, chose the city as an opportunity to express his hope for a world without nuclear weapons.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
Global public finances are being hit by an ageing population with ratings agencies warning that higher pension and health care costs are rising along with recent interest rate hikes. Moody’s, S&P and Fitch have all warned that ongoing issues with demographics are already impacting government credit ratings with little hope for change unless there are sweeping reforms. These downgrades could lead to a vicious circle of increased fiscal burdens and a rise in borrowing costs.
Unite, the UK’s largest trade union, is urging the Labour Party to consider nationalising the country’s energy sector amid accusations of “profiteering” and “greedflation” by companies. Earlier this year, Labour Leader Keir Starmer dropped plans to nationalise the energy, mail and water industries, instead opting to focus on state support for green energy. Unite General Secretary Sharon Graham will present Starmer a report supporting nationalisation, which is estimated to cost between £90bn ($120bn) and £196bn. The analysis suggests energy profits in 2022 stood at £45bn and energy bills under nationalisation could be reduced by up to £1,800 per household.
The UK and the Netherlands have agreed to create an "international coalition" to offer fighter jet support for Ukraine. The agreement marks a key advance in Ukrainian President Volodymyr Zelenskyy's attempt to obtain military assistance from countries aligned to the West to fight against Russian forces. The provision of advanced fighter aircraft has been a contentious issue, with many Western countries hesitant about offering them to Ukraine, fearing their continued use could accelerate the conflict further. French President Emmanuel Macron has also said his country has opened the door to training Ukrainian fighter pilots.
UK, Netherlands are working to procure F-16 fighters for Ukraine, Downing Street says
CNN
23-05-17 02:25
The UK and the Netherlands are attempting to build an "international coalition" to help Ukraine purchase F-16 jets, with training for Kyiv pilots, as Russia intensifies its aerial strikes. Belgium has also offered to train Ukrainian pilots. Britain does not have F-16s in its air force, but the Netherlands and Belgium do, while the US Air Force has nearly 800 F-16s. Despite Ukraine's repeated pleas for F-16s, many have been reluctant to supply weapons that can reach Russian soil.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
European stocks fell on Wednesday, with investors spooked by policymakers in Washington failing to agree on a deal to increase the US’ spending limit. US futures were holding gains, with S&P 500 and Nasdaq 100 contracts tracking up 0.2% and 0.1% respectively prior to the New York open. However, Jefferies’ Mohit Kumar warned that markets will start to price in debt ceiling concerns toward mid-June. Treasury Secretary Janet Yellen has warned the US could default on its debt as early as next month if lawmakers fail to reach a compromise. The dollar index was up 0.3% on Tuesday’s close and bond yields edged higher as uncertainty grew over the US situation.
Car manufacturer Stellantis has warned that it will not manufacture electric vehicles in the UK without changes to the Brexit deal. The parent firm of Citroen, Fiat, Peugeot and Vauxhall, which employs over 5,000 workers in the UK, committed to EV manufacturing at its Luton and Ellesmere Port plants two years ago. It has now told a Commons inquiry into EV battery supply that its UK investments are in the balance because of the trade deal agreed by the UK and the EU. Stellantis called for the UK and EU to keep existing rules until 2027 without this being subjected to tariffs.
European shares fell slightly on Wednesday amid continuing concerns over the outcome of the US debt ceiling negotiations to avoid a default. The downturn was also impacted by poor earnings results from a wide range of companies, including exchange operators. Euronext saw a drop of 4.2% with the London Stock Exchange Group dipping by the same amount following a selloff of stakes worth £2.7bn ($3.41bn) by a consortium of investors including Blackstone and Thomson Reuters. Among the bright spots were SAP, with shares jumping by 1.6%, and Siemens, whose shares climbed by 2.7%.
Humanitarian rescue efforts in the Mediterranean Sea and beyond have been intentionally delayed by European Union authorities in order to deter refugee arrivals, according to a study published in Security Dialogue. The report details how EU naval operations build delays into their designs, intentionally patrolling areas of the sea where few boats are expected. The report claims that the phase of strategic neglect began in 2017, when EU states withdrew their rescue assets from central Mediterranean resulting in a “rescue vacuum”. A report from Maltese authorities in March 2023 claimed that they ignore "more than 20,000 people in distress; 413 boats with people needing help were not assisted and only three boats were rescued by Malta's armed forces.” The lack of assistance has led to an increased number of deaths in the Mediterranean. Meanwhile, EU member states have shifted surveillance operations to the sky, using drones to search for boats carrying refugees and migrants. The use of “aerial assets under its current strategy has not had a meaningful impact on the death rate,” according to Human Rights Watch.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
Regulator Ofwat has increased demands for water companies in England and Wales to invest more into sewage infrastructure, following public pressure to reduce pollution levels in rivers, lakes, and seas. Despite paying out £1.4bn in dividends last year, water providers have been slow behind on spending targets with only three-fifths of the £2.2bn allocated to wastewater infrastructure for 2025 having actually been spent. The increased demand comes just as construction, finance, energy and labour costs are rising, which threatens the delivery of desired investment. Last month, Ofwat made the proposal to reapportion £1.6bn of expenditure planned for 2025 to 2030 to the next two financial years. More than £1bn of this is aimed at reducing the number of annual average spills from storm overflows, which was 301,091 recorded in 2022. The UK’s investment in water infrastructure is also reported to be lagging behind Europe.
At a summit of European leaders held in Reykjavík, more than 40 countries have backed a register to estimate the damage caused by Russia during the invasion of Ukraine, in an attempt to force Moscow to compensate victims and support the war-torn country with rebuilding efforts. Ten countries of the 46-member international body have not made a formal commitment to the new organisation, which will be based in The Hague, with three planning to take part but requiring time to meet national legal requirements. The US, Japan and Canadahave also joined as observer states.
Former Brexit minister David Frost has warned the Conservative Party that it cannot win elections as “the party of the self-satisfied and entitled”. Speaking at the National Conservatism conference in London, Frost criticised the government for its policies on housing, taxation and energy. He also attacked the politicisation of everyday life and the “dangerous and counter-productive intrusion into private property” contained in new rent laws proposed by the UK’s housing secretary. Frost has recently been critical of government policy, and renewed his call for tax cuts and deregulation in his latest speech.
New car registrations in the European Union, Britain, and the European Free Trade Association rose by 16.1% in April compared to the same month last year, according to data from the European Automobile Manufacturers Association (ACEA). Of the new cars sold in the EU between January and April this year, 44% were electric vehicles, compared to 42% in the same period last year. The increase in April new registrations was 17.2% in the European Union.
Carmaker Stellantis has warned that it could leave the UK altogether if electric vehicle (EV) manufacturing becomes unsustainable. One issue is that under Brexit rules, the UK faces 10% tariffs on cars traded with Europe from 2024. Furthermore, new EU rules insist that from January, EVs must source at least 60% of their batteries from the EU and UK, causing the cost of certain key commodities to increase, suggesting the tightening of the rules represents a problem for car makers on both sides of the Channel. The UK also faces energy challenges with steel makers reporting electricity prices twice what they are in other EU countries.
EU watchdog says asset managers should be fined for overcharging
Reuters
23-05-17 15:57
The European Securities and Markets Authority (ESMA) has called for EU rules on investing and hedge funds to be revised to ensure that investors are not overcharged. ESMA's proposal includes issuing fines for penalties, as well as clear guidance on what costs equate to being unjustified. The watchdog hopes this will make it easier and faster to deal with any violations. ESMA is confident that its proposal will be included in next week’s “retail investment strategy”. Fund managers who intentionally or negligently breach the guidelines will be fined in proportion to any harm caused to investors; “ESMA deems appropriate to ensure that fund managers reimburse or indemnify investors without undue delay where undue costs have been charged, including cases where costs have been wrongly calculated to the detriment of investors," the authority said in a statement.
Hungary’s foreign minister, Peter Szijjarto, has said that Hungary will continue to block the disbursement of a new tranche of European Union military support to Ukraine until Kyiv removes Hungary’s OTP Bank from a list of international sponsors of Russia’s war. Szijjarto said that Hungary wouldn’t approve the release of €500m ($543m) from the EU’s European Peace Facility until the bank is removed from the list. Hungary’s nationalist government, which maintains close ties with Moscow, has also argued against EU sanctions on Russia, and sought to cement Hungary’s dependence on Russian fossil fuels since the invasion of Ukraine in February 2022.
Stellantis’ warning that Britain’s trade rules with the EU could threaten electric van plant viability at Ellesmere Port has reopened the issue of rules of origin for the car industry. Car factories are concerned that anything that affects their exports to Europe will make them less competitive and more at risk. Rules of origin ensure that goods have sufficient locally-made content to qualify for tariff-free access to markets. Under the EU's post-Brexit Trade and Cooperation Agreement, vehicles sold from one to the other must have 55% of their “content” from within the EU or UK. By January 2024, 60% of an electric vehicle battery pack must originate from Europe or UK to qualify as “local”.
