The Group of Seven (G7) summit in Hiroshima is expected to highlight the Ukraine war, the growing power of China and the threat to Taiwan. Leaders from India, South Korea, Indonesia, Vietnam and Australia will also be attending the summit, which opens today. Discussions will also focus on matters involving supply chains, economic and energy security. The Indian presence at the summit is expected to create a focus on the developing world within the G7, while the recent overtures of Russia and China towards Central Asia are also set to feature prominently. Yesterday, the G7 leaders released a statement ahead of the summit stressing their support for Ukraine which “will not waver”, and detailing “new steps” to be taken to ensure Russia's aggression fails. Sanctions imposed on Russia are also likely to be discussed, as well as their impact on trade of agricultural, medical and humanitarian products.
Russian Prime Minister, Mikhail Mishustin, is set to visit China for two days, where he will meet with President Xi Jinping, as both nations are increasing their diplomatic efforts to hold talks over the Ukraine war. The visit will also include a stop in Shanghai, where Mishustin will attend a bilateral business forum. The Russian delegation will include Herman Gref, CEO of Russia’s state-owned bank Sberbank, and Mikhail Oseevsky, CEO of telecoms provider Rostelecom, both of whom have been sanctioned by Western countries over Russia’s invasion of Ukraine.
The G7 is holding its annual summit in the Japanese shrine city of Hiroshima where the talks are set to focus on the growing influence of China, the Ukraine crisis and the ongoing threat to Taiwan. G7 leaders, however, are keen to avoid confrontation with China over the issue of its territorial claims that are threatening the freedom of navigation in the South China Sea. Instead, the leaders are set to extend the promise of G7 cooperation. Alongside the G7 nations, Thailand, Papua New Guinea, Vietnam, Laos, Indonesia, and the Philippines have been invited as guests, symbolising Japan's ongoing interest and focus on Southeast Asia. In addition, India and South Korea, which have previously pressed Japan to address issues related to Japanese Imperial Army’s conscripting of sex slaves for the military during World War II, will also take part, together with the EU.
Russian mercenary group Wagner's front company acquired tens of thousands of protective helmets from China in late 2021 despite western sanctions intended to stop a private army designated as a "transnational crime organisation" by the US, according to the Financial Times. A Wagner-connected, Russia-based company called Broker Expert bought 20,000 polymer-based helmets from a small Chinese company called Hangzhou Shinerain Import And Export Co in November and December last year, according to customs declarations analyzed by the FT, whose analysis indicates that sanctions have failed to stem the group's activities.
The Washington Metropolitan Area Transit Authority (WMATA) has been "critically" exposed to cyberattacks since 2019, which could threaten train safety, according to a watchdog report. The report also claims the transit authority had failed to address 50 of the cybersecurity recommendations offered to it by oversight agencies. WMATA was hacked by a computer in Russia this year, the watchdog found, and has employed Russia-based IT workers. The vulnerability of transit systems to cyberattacks is well known, with transit agencies said to have the weakest cybersecurity when compared to other major sectors. There have been calls for the WMATA to beef up its cybersecurity in the wake of declining ridership during the Covid-19 pandemic and a shift towards the use of mobile fare cards and remote train piloting technology.
UK-based multi-development bank the European Bank for Reconstruction and Development (EBRD) is set to collaborate with emerging market asset manager ILX and the European Union (EU) to improve "climate-smart solutions, digital transformation and financial inclusion" in eastern Europe. Although not strictly a blended-finance arrangement as the ILX investment is ring-fenced, the $300m project sets down a "new marker in development finance," according to Valdis Dombrovskis, European Commission executive vice-president. Dombrovskis said he hoped the scheme would serve as "a new model that can inspire other international financial institutions and private investors to step up sustainable and green investment." The initiative ties into the EU's plans to invest $300bn in green projects with a view to attracting private funding.
Srichand Hinduja died at 87 having led a business empire that grew from a modest trading concern in India and Iran in the middle of the 20th century to a sprawling global network with interests spanning carmaking, IT and oil. Last year, the brothers were Britain’s richest family with a £28bn fortune. Hinduja's name is synonymous with a passport row involving one of the architects of New Labour, Peter Mandelson. He was the biggest spender in the Hinduja clan and threw lavish parties for the rich and powerful. However, before dementia took hold, he was also a deeply religious man who did not touch alcohol or meat and prayed in a Hindu temple at least once a day.
The recent bank failures, including that of Silicon Valley Bank, may limit how much further the Federal Reserve will need to raise its benchmark interest rate, according to the Chair of the Federal Reserve, Jay Powell. The credit crunch resulting from the bank failures is contributing to tighter credit conditions, economic growth, hiring and inflation, he warned. Powell said that, due to this, policymakers may need to forgo further tightening. He added that the extent of the impact of these credit conditions is "highly uncertain". His comments were made as Fed policymakers debate whether to press ahead with an 11th straight rate rise next month or pause tightening. Since March 2022, the Fed has raised its benchmark policy rate by more than 5 percentage points to a target range of 5%-5.25%; this rise has been viewed by Powell as notable. However, he advised there was "uncertainty about lagged effects" of tightening already applied, "about the extent of credit tightening from these banking stresses", and "about their effects on growth".
The Royal Horticultural Society’s (RHS) Chelsea Flower Show begins next week, running publicly from Tuesday to Saturday in London. The show opens with the prestigious Gala Evening on Monday, where much corporate entertaining takes place. According to the Financial Times, Chelsea is a high point in the calendar of corporate entertaining, especially for financial businesses that reportedly conduct deals among the show’s plants. Chelsea’s premier sponsor this year is the Newt in Somerset, an estate, hotel, restaurant and garden overseen by Karen Roos and her husband Koos Bekker. Exhibitors will display 50% drought-tolerant plants this year, up from about 30% in 2018. Judges will be asked to consider the eco-friendliness of sustainable designs, and the RHS has listed the top 10 drought-tolerant plants its visitors can look for at the show. Every year, Monday evening tickets for the event are oversubscribed, with or without dinner, and proceeds go to charity, mainly the RHS.
An investigation launched last year by India's Securities and Exchange Board into offshore entities with holdings in Gautam Adani's companies has "hit a wall", according to a report by a committee appointed by the country's supreme court. Among the investigators was the US's Hindenburg Research, which this year accused Adani of stock price manipulation and fraud. The committee could not find evidence of regulatory failures but the report concludes that Sebi has drawn a blank in its investigation into 13 offshore entities it deemed suspicious, adding that bankers had declined to assist in matters relating to cross-border transactions.
Former Rolls-Royce CEO Warren East has joined the board of British fusion energy start-up Tokamak Energy. East, who is also a former executive at chip designer ARM, has said that Oxford-based Tokamak Energy can help the UK establish itself as a world leader in clean power technology. With abundant zero-carbon power predicted to emerge, East has said he is "convinced" that Tokamak Energy and other start-ups could potentially link fusion plants to national grids in the 2030s. "There’s work to be done, but it is engineering work rather than science experiments", said East. Last year, Tokamak Energy launched a crowdfunding campaign targeting a £50m investment. To date, the company has raised $200m from private investors and a further $50m from the UK and US governments.
Warren East, the former CEO of Rolls-Royce, has joined Tokamak Energy’s board as a non-executive director. Tokamak Energy is developing a prototype reactor it hopes will enable grid-ready fusion energy production by the early 2030s. East plans to help the company to reach its commercialisation target and believes Tokamak could establish Britain as a “nuclear fusion superpower”. The former Rolls-Royce head is expected to draw on his experience growing chip designer Arm into the world’s leading semiconductor intellectual property firm.
Goldman Sachs is still grappling with the discrimination issues highlighted in the class action lawsuit filed by the bank’s female employees in 2010, according to a report in the Financial Times. While there are fewer signs of overt sexism, women complain of inaccessible cultures, exclusion and a lack of support. “I would’ve been better compensated if I wasn’t a mom, for guys, most of the people I interacted with, their wives didn’t work”, said one woman who recently left the bank. Among other complaints, female employees note Goldman’s culture remains less receptive to women who have no interest in sports and the difficulty of confronting controversial issues without damaging their careers, as one junior employee said. Goldman Sachs agreed to pay $215m, one of the biggest payouts in US corporate history, to settle the discrimination case.
UK bank bosses have warned of the growing number of customers relying on unregulated or “shadow credit”, including loans from illegal money lenders, for short-term financial support. Despite this, high street banks such as Natwest, Barclays and Lloyds have shown little sign of stress on their balance sheets. However, shadow bankers warned the situation could lead to increased stress on the banking system. Earlier this year, the Financial Conduct Authority gained new powers to regulate the “buy now, pay later” lending sector to better protect consumers who use the credit, which has faced criticism.
Federal Reserve officials are growing skeptical about suspending rate hikes
CNN
23-05-19 20:08
Some US Federal Reserve officials are debating whether to raise interest rates again in June to curb inflation, while others argue the economy is not yet overheating and a pause might be more appropriate. Chicago Federal Reserve President Austan Goolsbee said “we need to take that [tightening credit conditions] into account and the only way to do that is sit and watch it.” However, other policymakers are concerned there is still too much liquidity in the market, which could drive inflation higher. The Federal Reserve launched its most aggressive rate-hiking campaign since the 1980s to battle inflation in 2022.
The G7 summit in the city of Hiroshima in Japan may feature debates on the Ukraine conflict, China’s economic power and the domination of Taiwan. Issues of global energy and economic security are also expected to be discussed. The presence of India, a country that is currently chairing G-20, is likely to bring a focus to global developing nations and the concerns of the so-called Global South. Significant Asia-Pacific nations including India, South Korea, Indonesia, Vietnam and Australia are participating alongside the seven member states of the G7 and the European Union. Gambia, Laos, Papua New Guinea, Senegal and Vietnam have been invited to send representatives to a meeting on tropical diseases.
Leaders of the G7 countries and their invited guests, India, Indonesia, South Korea, Vietnam and Australia, are meeting in Hiroshima over the next few days. The likely topics for discussion include the Ukraine conflict, growing Chinese dominance and the threat to Taiwan as well as issues surrounding supply chains and economic and energy security. The prominent attendance of India, a country that chairs the G20 this year, is highlighted as likely to shine a spotlight on the developing world. However, many have asked why the focus of the summit is background noise, rather than on the nuclear threat signaled by North Korea's recent nuclear tests and missile launches.
Leaders at the G7 summit in Japan have held talks focusing on the deepening dominance of China and political tensions on the Korean peninsula. The likely impact on the Japanese economy of the UK's Brexit decision is also a significant concern. Top of the agenda was the situation in the Ukraine and issues related to economic security and supply chains. India's attendance, as chair of the G20, has highlighted the importance of the developing world. Prime Minister Narendra Modi has made several contributions to the talks, arguing for inclusive food systems to be created across the world. At a separate meeting, involving the leaders of Japan and Brazil, mention was made of the need for security council reform. Meanwhile, US President Barack Obama became the first sitting US president to visit Hiroshima, where he laid a wreath at the Hiroshima Peace Memorial.
The G7 has urged Beijing to exert pressure on Russia to withdraw troops from Ukraine in its strongest communique criticising China. Members expressed concern about the situation in the East and South China Seas, opposing unilateral attempts to change the status quo by force or coercion, and supporting a peaceful resolution of growing tension in the Taiwan Strait. The G7 members stated that they were prepared to build stable relationships with Beijing and to voice their concerns directly, despite the growing military and economic security threats posed by China.
EY UK chief Hywel Ball's tenure has been extended beyond the mandatory retirement age of 60, after he launched a cull of top executives in the firm's UK business. Two women who had run for the position of the senior partner departing from the executive leadership as part of Hywel's plans. The decision came just weeks after the collapse of Project Everest, which had been set to split the firm's global audit and consulting divisions.
