Australia’s donation of military support to Ukraine was gratefully received but as other nations increase their contributions, Australia has decreased its aid. The Australian government has provided only a small consignment of uncrewed aerial vehicles to the Ukrainian army in 2023. This shift from “support Ukraine” to “strategic bystanders” is problematic, as the Ukraine faces the Russian onslaught. Beyond the physical, moral support is also required from Australia, including sending their ambassador back to Kyiv. Finally, Australia’s defence and foreign ministers should travel to Ukraine to see the situation personally.
Magnitude 5.5 earthquake strikes offshore Northern California region - EMSC
Reuters
23-05-21 18:56
A 5.5 magnitude earthquake struck offshore Northern California on Sunday, according to the European Mediterranean Seismological Centre (EMSC). The quake occurred at a depth of 2km (1.24 miles).
Profits at Western banks in China slumped in 2021 due to COVID-19 lockdowns and tensions between the US and China, according to data seen by the Financial Times. Credit Suisse, Deutsche Bank, Goldman Sachs and HSBC all reported losses, while Morgan Stanley's profits fell. UBS and JP Morgan were the only banks to post higher profits, although HSBC's unit lost less money than in previous years. Seven Western banks have units in China and all have been operating at losses in the country for years, investing in lossmaking outfits in the expectation they would eventually prove profitable.
Jeremy Hunt's recent article condemning the "insidious declinism" of former optimists has been met with criticism from some readers. They argue that the government itself is responsible for the shift in national pessimism, pointing to issues such as housing, immigration, energy, and taxes. Hunt's statement that Conservative governments always make the "tough decisions necessary to put the economy back on track" is challenged by some, who feel that the current socialist government in power has failed in this regard. Readers also suggest that Hunt's own involvement in the NHS during the Covid-19 pandemic and his role in the Treasury have contributed to declining optimism, with high taxation and regulatory red tape stifling economic growth. Similarly, Rishi Sunak's comments that people no longer judge others by their bank account to some ring hollow; one reader argues this emphasises how little he understands about poverty in the country. Meanwhile, a group of current students at the University of Oxford declared their support of the invitation to Professor Kathleen Stock, a gender-critical feminist philosopher, to a university event, arguing that free speech is key to the institution's heritage.
Conservative Patrician lawyer C. Boyden Gray has died aged 80. Gray served as White House counsel to President George H.W. Bush and was an important strategist and fundraiser for Republican judicial and Justice Department nominees. The lawyer had a star-studded beginning, working as a clerk for Chief Justice Earl Warren before becoming a top corporate antitrust lawyer. He was known for his meticulousness and workaholic tendencies, and his abilities saw him rise quickly in Washington circles. Gray was deeply involved in the deregulation of trade, energy, the environment and banking and was Republican Vice President George H.W. Bush’s counsel and deputy chief of staff. He was, however, not well-regarded by consumer advocates. Gray’s background was largely corporate and before working on the taskforce, he was seen as a critical skeptics.
Gray was an active member of numerous right-wing political organizations, including the FreedomWorks, which is devoted to the achievement of lower taxes and decreased regulation, along with the Federalist Society, a networking group for conservative lawyers. Another organization he helped start was the Committee for Justice, as a non-profit body engineering the screening of judicial and Justice Department nominees.
Gray was a central figure in the polarising appointments of judges to the US Supreme Court and other bodies. Following Gray’s recent death, commentators and critics have noted his focus and passion for the interests of big corporations and the Bush family.
Valencia won 1-0 against Real Madrid in a match that was marred by racist abuse towards Madrid's Vinícius Júnior. The 22-year-old Brazilian player, who has been subjected to racist abuse since coming to play in Spain five years ago, was temporarily stopped after saying he was insulted by a fan during the match. Real Madrid coach Carlo Ancelotti considered replacing Vinícius due to the chants of "monkey" from fans. Diego López scored the only goal, while Vinícius was later sent off after an altercation with Valencia players. The win moves Valencia five points above the relegation zone entering the final three rounds, while Real Madrid dropped to third place with its second consecutive loss in all competitions.
UK food prices are around 19% higher than a year ago, pushing a typical £50 ($70) grocery bill up to roughly £60, with overall food production costs eye-wateringly high, says the BBC. Issues include the Russian invasion of Ukraine, which pushed up grain, fertiliser and sunflower oil prices; energy prices, which affected retailers who did not have similar access to government support as households; the impact of the UK's increased minimum wage and Brexit-induced labour shortages as well as the growing cost of living. One key problem for the food chain is that profit margins can be very slim; the study for food alliance Sustain found that most of the cost of a £2.50 piece of cheese came from retailers' and processors' overheads. While profit margins for processed food and drinks can be 15%, overall supermarkets make an average profit of 5% on each £1 of goods sold.
The Biden administration used the G7 summit in Japan to push the details of a US-led industrial policy around climate, particularly in the global south. This is a new approach, as the traditional Washington consensus model has focused on unfettered growth via deregulation and trade liberalisation. The administration aims to bring a greater coalition of nations into a new economic order, prioritising sustainability and equitable GDP growth, value incentive over capital and limit dangerous concentrations of power in any nation or company. This message was well received by the G7 nations and many others.
The EU is continuing with plans to buy hydrogen and critical raw materials en masse after its first round of aggregated gas purchases was oversubscribed. The move reflects the bloc's need to secure supplies for vital products and stabilise prices, with gas prices rocketing after Russia cut pipeline exports following an invasion of Ukraine early in 2022. A number of leading energy firms were involved in the first round of joint gas purchases, but the total amount of gas tendered is only a fraction of the EU’s total use.
Luxury lodgings in Japan are seeing an uptick in business according to research firm MSCI Real Assets, with investors from abroad putting more money into Japanese hotels at a rate not seen since 2014. The trend comes amid dozens of luxury hotels being built in Japan with nightly room rates often exceeding ¥100,000 ($735); worldwide hotel chains are making their first forays into that market, and overseas backers account for almost half of the ¥494.3 billion in hotel deals made over the past year. Tetsuya Kaneko, of property firm Savills Japan, said he estimated the average worth of members the new wave of inbound travellers with the means to spend hundreds per night on accommodation will be “much higher than the pre-pandemic average”. Worldwide, income inequality has risen during the pandemic, with some wealthy individuals seeing their net worth rise by billions and others losing jobs.
The International Atomic Energy Agency (IAEA) is urging a last-minute agreement to protect Ukraine's enormous Zaporizhzhia nuclear power plant as a counteroffensive is planned, which could see forces driven directly through the station. After nearly nine months of failed efforts to establish a protection zone around the plant between Ukraine and Russia, Rafael Grossi, the head of the IAEA, is pushing for a proposal to reduce the possibility of a catastrophic nuclear disaster. He intends to present five set principles for the UN Security Council to endorse later this month, however obtaining agreement among the council’s permanent members is a tall task given the acidic relations between Moscow and Washington coupled with Kyiv’s reluctance to let Russia broker any deal other than its complete withdrawal from Enerhodar, the city where the power station is based, and surrendering the plant. Negotiations on Grossi’s plan are ongoing. A senior European diplomat has said the chances for an agreement and the briefing to go ahead are “50-50”.
A book by Frankfurter Allgemeine Zeitung writers Reinhard Bingener and Markus Wehner examines why German politicians were so accepting of Russia and Vladimir Putin. The authors describe Gerhard Schröder, the former German chancellor, as Putin's "apologist-in-chief", while his Social Democrat compatriots, Sigmar Gabriel and Frank-Walter Steinmeier, also described by the authors as villains, drove Germany dependancy on Russia, partly through the Nord Stream 2 pipeline. The Greens are depicted more favourably as they opposed the project from the start. German chancellor, Angela Merkel, also receives criticism for her support for Nord Stream 2.
China has ordered its infrastructure companies to stop buying from Micron, the US chipmaker, shortly after US president Joe Biden called for a thaw in relations between the two countries. Chinese foreign policy analysts said the call maintained and exacerbated existing tensions. While experts do not expect the diplomatic conflict to derail high-level engagement efforts entirely, they suggest stabilisation will be held up by issues of economic coercion, national security issues related to technology and worsening tension over Taiwan, as China tries to maintain its grip on Taiwan and the US looks to support Taiwan as a sovereign nation.
The choice of venue for the European Champions Cup final, which saw Leinster face off against La Rochelle in Dublin’s Aviva Stadium, is still causing controversy. Some claimed the stadium amounted to a home advantage for Leinster, and resulted in allegations of unfavourable treatment during the match. One such claim involved La Rochelle captain Gregory Alldritt accusing his opposite number, James Ryan, of being disrespectful at the coin toss. Some have suggested the problem could have been avoided by holding the final in a neutral country.
French President Emmanuel Macron has held discussions with Mongolian Prime Minister Khurelsukh Ukhnaa as part of his first state visit to the country. The two leaders talked about proposed trade agreements and Mongolia's shift from coal-fired energy to renewables, with French nuclear company Orano among the list of candidates for a major uranium mining project. Macron commended Mongolia's work towards international security efforts. The French President began his trip in Japan for the G7 summit, where he was one of several world leaders offering support to Ukraine.
Ukrainian forces are carrying out counterattacks on Russian troops around Bakhmut as their influence in the eastern city dwindles, according to Kiev. Colonel-General Oleksandr Syrsky, Ukraine’s eastern military commander, claimed the purpose was to encircle Russian troops and force them to defend their ground. In a statement over the weekend, Ukrainian President Volodymyr Zelensky said the city had effectively been destroyed. Meanwhile, the United Nations nuclear watchdog is pushing for a last-minute agreement to protect Europe's largest nuclear plant, Zaporizhzhia, ahead of an anticipated counteroffensive in southeastern Ukraine. The plant has been the potential target of conflict for months, with the International Atomic Energy Agency (IAEA) trying to establish a protection zone around it by brokering a deal between Russia and Ukraine. So far, efforts have been steadily unsuccessful. However, the head of the IAEA, Rafael Grossi, is still hoping the UN Security Council will back a plan to prevent a catastrophic incident.
Billionaire investor Carl Icahn has reportedly lost $9bn since the financial crisis due to short positions that relied on market collapse. The failed trades led investor advisory service Hindenburg Research to suggest that Icahn Enterprises was overvalued. Shares in the company fell by 30% as a result of the accusations. Icahn, who was one of the earliest investors to push for activist strategies, has admitted to error, telling reporters that the strategies he previously recommended did not reflect today's circumstances. Hedge funds are also betting against Greek bonds before this weekend's election, while Amundi asset managers is shifting toward Chinese investments in anticipation of a subdued US economy.
A former prime minister and president of Armenia, Dr Armen Sarkissian, has delivered a speech celebrating the life of William Gladstone, former prime minister of the UK. Despite Gladstone’s father being a known slave trader, Sarkissian says he was the greatest prime minister of the 19th Century, and “his views evolved as he aged”, noting that Gladstone became much more radical later in life, opposing what he called “the earth-hunger” of British imperial expansionists. Although Gladstone pursued Irish Home Rule, Sarkissian says Gladstone’s main involvement in later life was in “Armenia: his involvement in the ‘Armenian Question’, driven entirely by moral considerations, began in the late 19th Century”. Gladstone took diplomatic action to raise awareness of the “Hamidian massacres” by the Ottoman Empire which resulted in the killing of many thousands of Armenians in the late 19th Century. Although Prime Minister Benjamin Disraeli earned a reputation for reshaping the law during his terms in office, Sarkissian notes, “Disraeli had the law; Gladstone had humanity”.
The outcome of the G7 summit gave a boost of diplomatic and military support for Ukrainian President Volodymyr Zelenskyy. While the commendation of the G7 for Ukraine in the communiqué was familiar, the unofficial message is more complicated: as long as it does not take too long. The best way of maintaining western support for Ukraine is to have significant wartime progress. If Kyiv cannot make progress, the country may find it difficult to receive political and financial support from its backers. Moreover, the mounting pressure on the country is related to the US election in 2024, and President Donald Trump’s emergence as the frontrunner increases fears that the next US president will significantly change policy on Ukraine. Consequently, Vladimir Putin has reason to be optimistic that the Trumpist cavalry might appear over the horizon.
The Group of Seven (G7) announced a 1,600-word statement on economic security covering trade-distorting subsidies, cybertheft, and more. The statement indicated the G7 would use early warnings and rapid information sharing and explore "co-ordinated responses" to counter economic coercion, according to the FT's Alan Beattie. However, further action will not be automatic and leaves participating countries to uphold their "respective legal systems" to counter economic coercion. The announcement serves as a rhetorical commitment to support countries affected by coercive trade blockades. Nevertheless, Australia's response to Chinese trade embargoes may be an effective strategy as companies' primary tactic was to adjust and not make noise or show weakness.
