Prime Minister Rishi Sunak has said China poses the largest challenge on global security and prosperity after meeting with leaders at the G7 summit in Hiroshima. He also commented that China is an increasingly authoritarian nation both domestically and internationally. Sunak declared their approach as one where they are aiming to “de-risk” the situation rather than “decoupling” or cutting ties with China in their efforts to strengthen supply chains and tackle economic coercion.
According to an article in The Telegraph, America has not had a great president in a long time, citing Truman, Reagan and Eisenhower as examples of past excellence compared to today’s Joe Biden and Donald Trump. The article explores why recent leaders have been deemed mediocre and discusses the topic with presidential historian Alvin Felzenberg on the Off Script podcast.
President Joe Biden has said he has received a "flat assurance" from Ukrainian President Volodymyr Zelensky that he would not use Western-provided F-16 fighter jets to go into Russian territory. Biden announced a $375m package of military aid, including artillery and armoured vehicles, for Ukraine during the three-day G7 summit. Zelensky said he was confident Kyiv would receive F-16 fighter jets from the West after months of lobbying for the planes. Other G7 leaders pledged to support Ukraine, in a warning to Russian President Vladimir Putin.
Russian troops have entered Ukraine, sparking a worsening conflict that has turned into a full-scale war. As of August 2022, Russian troops have moved further into Ukraine than previously, destabilising the region, particularly around the conflict zone, and resulting in thousands of casualties. The US has pledged to provide military support to Ukraine in the form of over 400 million euros of military aid. The President of Ukraine, Volodymyr Zelensky, has made a surprise visit to attend the G7 summit in Hiroshima to discuss the conflict with counterparts from Brazil and India who have failed to condemn Russia’s actions.
Pennsylvania Senator John Fetterman is defying strict Senate dress code regulations by wearing gym shorts and hoodies, causing somewhat of a sensation in the chamber. However, his casual dress is said to demonstrate his relaxed and rejuvenated approach following six weeks in inpatient treatment for clinical depression earlier this year. Senator Ted Cruz of Texas is also known for attending in gym clothes, however, Fetterman's signature Carhartt sweatshirts and gym shorts are shaking up convention within the Senate building. His recovery is said to resemble the same person he was before last year when he suffered from a stroke while campaigning for re-election.
US President Joe Biden should address questions about his health and capacity to govern after his doctors have declared him in good health, according to The Washington Post. The threat of invocation of the 25th amendment, which deals with presidential infirmity, looms in a possible second term, the newspaper warned. Earlier this month, an ABC/Washington Post poll found that 68% of Americans believed Biden was too old for another term. Even though former President Donald Trump remains unpopular with voters, a majority of respondents said he far surpassed Biden in terms of mental acuity and physical health.
Russian President Vladimir Putin has claimed a victory over the Ukrainian city of Bakhmut, although Ukraine has denied that the city has fallen to Russian forces. Analysts have characterised the battle for Bakhmut as "the meat grinder", and it has been compared to the battle for Stalingrad, one of the bloodiest of World War II. Pro-Russian propagandists celebrated the city’s capture, but Western analysts have said that it was a Pyrrhic victory that had diverted military resources from other parts of the Russian frontline, currently stretched at a time when the country is increasingly over-stretched.
Following an assurance to President Biden by President Zelensky, Ukraine has been granted access to F-16 fighter jets from the United States to help defend against Russian incursions. The Ukraine’s fleet of aircraft has been outdated for some time, and this upgrade marks a significant increase in military capacity. The news has sparked concerns that the West is providing Ukraine with offensive weapons, prompting fears of a military escalation in the conflict. Ukraine has also secured additional aid from the US in the form of ammunition and is reportedly offered F-16s from some EU nations.
US President Joe Biden has said he expects to see a “thaw” in relations with Beijing, after a G7 summit where counter-military and economic security against China was high on the agenda. Biden also said he was considering removing sanctions against Chinese defence minister Li Shangfu, in connection with fighter jet imports from Russia. At the summit, G7 members’ criticism of China included its military activities in the South and East China Seas and its human rights record in Tibet and Xinjiang, whilst also calling for peace across the Taiwan Strait.
According to an article in The Telegraph, America has not had a great president in a long time, citing Truman, Reagan and Eisenhower as examples of past excellence compared to today’s Joe Biden and Donald Trump. The article explores why recent leaders have been deemed mediocre and discusses the topic with presidential historian Alvin Felzenberg on the Off Script podcast.
The Chinese Cyberspace Administration has prohibited the country's operators from buying US chipmaker Micron Technology's products over concerns of “serious network security risks”. The ban is the first big measure taken against a US semiconductor group and follows a seven-week investigation into Idaho-based Micron by the CAC, seen as retaliation for US efforts to curb China’s access to key technology. Washington introduced extensive chip export controls last October and since then, the Netherlands and Japan have followed. China is a crucial market for Micron and analysts have warned that Beijing’s restrictions could even provoke Chinese firms that provide “critical information infrastructure” to eliminate Micron from their supply chains.
Investors appear unconcerned by the impact of the prospect of a US default on its debts within the next fortnight, despite US Treasury Secretary Janet Yellen warning of a "catastrophic" financial collapse unless Republicans and the ruling Democrats agree a deal on spending and the debt ceiling. However, it is suggested bond investors and traders are less sanguine than their equity counterparts, with warning signs being seen in yields on shorter-term debt bills. Analysts have noted the US stock market's growth has been largely driven by the "mega caps", the biggest technology stocks. The New York "FANG" index, which tracks Facebook's parent, Meta, Apple, Google's Alphabet and Amazon, has surged 52% YTD. Despite this, the cost of US credit default swaps has risen and investors have withdrawn over $24bn from equity funds so far in May.
China's Cyberspace Administration has banned US semiconductor company Micron in its technology battle with the United States. The state cyber agency claimed that Micron's components posed significant security risks to China's critical information infrastructure supply chain, thereby affecting national security. The US Commerce Department responded by saying that there was no basis in fact for Beijing's claim and that it would continue to try to limit industry disruptions with its allies. Micron has yet to identify the products that have been barred. China has previously blacklisted US technology companies, cut off the flow of processors and barred Americans from helping the Chinese chip industry.
US President Joe Biden announced that he will allow American-made F-16 fighter jets to be sent to Ukraine, a move which emphasises Western commitment to Ukraine in the face of ongoing hostilities from Russia. The G7 meeting, which concluded yesterday, considered the situation in Ukraine, with the military aid being seen as a powerful symbol of long-term Western support. Despite Putin's willingness to mobilise for a long-term campaign, a strong sense of patience and commitment amongst Ukraine's allies was recognised by the Financial Times.
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.
Florida Governor Ron DeSantis is expected to file paperwork for running for President of the US, ending the months of speculation in which he has fallen behind Donald Trump in the opinion polls. However, Trump still commands more than 56% of the Republican electorate, while DeSantis trails in a distant second place, at just shy of 20%. Republican campaign veterans say the polls reflect an increasingly disciplined Trump campaign apparatus that relentlessly attacks DeSantis, and a “shadow campaign” by the Florida governor that has yet to get off the ground.
Republican Senator Tim Scott has launched his presidential bid in South Carolina. He is the only Black Republican senator and made the announcement at his alma mater, Charleston Southern University, after filing with the Federal Election Commission last week. Scott's team hopes he can find a way to stand out in a field led by Donald Trump and Florida Governor Ron DeSantis by leaning into more optimistic rhetoric than his rivals, while emphasising his faith. Scott has rejected teaching of critical race theory, which presents the idea that the nation’s institutions maintain the dominance of white people.
Meta (formerly Facebook) has been given a €1.2bn ($1.34bn) from the Irish Data Protection Commission over violating its rules regarding the transfer of user data to the US. Five months was given to the company to eliminate any future transfer of personal data to the US, while six months was given for the processing of previously sent European citizens’ personal information in the US to cease. Meta President of Global Affairs, Nick Clegg, responded to the ruling by stating it was flawed, unjustified, and praised that it is a dangerous precedent for the various companies that transfer data between the EU and US.
China's Foreign Ministry has doubted the sincerity of the Biden administration, as the US continues to push for high-level diplomatic talks with Beijing while also imposing technology sanctions on the country. “The US side asks for communication on the one side, yet on the other, suppresses and contains China by every possible means,” said Chinese Foreign Ministry spokeswoman Mao Ning at a regular briefing in Beijing. There are hints of two-track policy with some success already achieved in terms of diplomatic meetings between high ranking officials while at the same time the US campaign to contain China's military aspirations continues. According to a Bloomberg report US officials have made more than nine requests for a call between Chinese Vice President Wang Qishan and Joe Biden, however the White House has so far refused to comment on the status of the request.
Australia could achieve carbon neutrality through a collaboration with the US on critical minerals mining. Iluka Resources is hoping to boost Australia’s refining capacity and expand mineral supply to the US through a government loan for building the Eneabba refinery in Western Australia. The facility will produce rare earth oxides, a vital element in adding strength to electric vehicle motors, wind turbines and defence applications. Erwin Jackson, policy director for the Investor Group on Climate Change stated that subsidies for renewable energy in the US are substantial, and so Australian investors are already prioritising clean energy projects there rather than in Australia.
