Author: fortraders

The Group of 7 (G7) summit is set to begin today in Hiroshima, Japan. Leaders of the seven major industrial democracies will discuss how to keep the global economy stable and how to deal with China. Meanwhile, the U.S. is two weeks away from running out of money to pay its bills, and a default would jolt its economy and those of the other G7 countries.

Global temperatures are also likely to reach record highs over the next five years, according to a new analysis. This could exacerbate the dangers from heat waves, wildfires, drought and other calamities. El Niño will very likely cause further turmoil by shifting precipitation patterns.

In Indonesia, President Joko Widodo is trying to build a new capital city, called Nusantara, from the ground up. It’s supposed to be a green and walkable beacon for other megacities in developing nations trying to confront climate change. However, the project faces political opposition and may be behind schedule.

These are just some of the issues that will be discussed at the G7 summit. It will be interesting to see how the leaders of the seven major industrial democracies will address these pressing global issues.

Ukraine and Russia have agreed to a two-month extension of a wartime deal that allows Ukraine to ship its grain across the Black Sea. The Black Sea Grain Initiative, which began last July, allows Ukraine to transport grain and other food products along a corridor past Russian naval vessels that have blockaded Ukraine’s ports since the start of Russia’s full-scale invasion 15 months ago. The shipments are subject to inspection off the coast of Istanbul, while empty cargo ships headed to Ukraine’s ports are also checked.

Grain exports are important for Ukraine’s economy and their resumption also helps maintain the stability of global food prices, which rose sharply during the first months of war. The U.N. Secretary General, António Guterres, said that “Ukrainian and Russian products feed the world” and that discussions would continue on unresolved issues.

The agreement serves both governments in Kyiv and Moscow, as well as President Recep Tayyip Erdogan of Turkey, who acted as broker along with the United Nations. Over 30 million tons of food have been shipped under the Black Sea Initiative, according to data from the United Nations. Ukraine has explored ways to export more of its crops overland into Eastern and Central Europe, however, those routes can handle much smaller volumes.

As President Biden heads to Japan for the G7 summit, the U.S. is facing a potential default due to a debt ceiling standoff with Republicans. The White House warned that a default would only embolden America’s adversaries, and Biden is tasked with reassuring his counterparts that he will find a way to avoid it. The president’s decision to head home early reinforces questions about American commitment to the Asia-Pacific region and leaves a vacuum that China may exploit. World leaders have become accustomed to the culture that dominates Washington, and while they understand the need to cut short the trip, they understand the consequences. It is up to Biden to show that the U.S. is a stable and reliable partner, and that it will not default on its debt.

A former U.S. Embassy employee has been arrested in Russia and charged with conspiracy, according to the Russian state news agency Tass. Robert Shonov, who was identified as a former employee of the U.S. Embassy in Russia, was arrested in the city of Vladivostok and taken to Lefortovo Prison in Moscow. The State Department had no immediate comment on the report.

Tass, quoting an anonymous law enforcement official, said that Mr. Shonov was accused of “collaboration on a confidential basis with a foreign state or international or foreign organization.” No court date has been set.

Lefortovo is a notorious high-security prison whose inmates currently include Evan Gershkovich, the Wall Street Journal correspondent who was accused of espionage in March, and Paul Whelan, a former U.S. Marine who is serving a 16-year sentence on what the United States has said are fabricated charges of espionage. In the Soviet era, the K.G.B. kept Soviet dissidents at the prison, and it has been used more recently to isolate opponents of the Kremlin.

Turkey’s presidential election has resulted in a runoff between the sitting president, Recep Tayyip Erdogan, and his challenger, Kemal Kilicdaroglu. Sinan Ogan, the far-right candidate who came in third in the vote, has become a sought-after figure as his supporters may play a role in deciding the runoff. He has been fielding calls from cabinet members, opposition leaders, and even the office of President Erdogan, all wanting his help in wooing his critical swing voters. Ogan has demands in exchange for throwing his support to a candidate, all of them aimed at promoting nationalist causes. He wants a scheduled plan to deport the refugees from many countries, including Syria and Afghanistan, and a very senior post in the new administration to see his demands through. The opposition camp, overlapping with the far right on some issues, could step up efforts to sway nationalist voters before the runoff. It remains to be seen which candidate Ogan will endorse and how his supporters will vote in the runoff.

The northern Italian region of Emilia-Romagna has been hit by unprecedented flooding, leaving 8 dead and thousands homeless. Intense downpours caused rivers to overflow, submerging fields and towns in chest-high water. Helicopters airlifted residents from the roofs of homes, while rescue workers waded through the water to assist those stuck on the upper stories of buildings. Schools were shuttered, trains were canceled, and roads and highways were closed. The rainfall was described as “catastrophic” and “unprecedented” by experts. The flooding is a complex phenomenon with many causes, including land development and ground conditions, and is likely worsened by climate change. Officials are doing “everything possible” to lend a hand to those in need and restart as soon as conditions allow.

The U.S. Department of Agriculture has granted emergency approval for a bird flu vaccine to be used in California condors, an endangered species with a wingspan of nearly 10 feet. The move comes after more than a dozen of the birds have died from the virus, known as H5N1. Vaccination of captive birds will begin soon, with the hope of preventing additional deaths.

The virus has been detected in more than 6,700 wild birds in every state but Hawaii, and has caused mass die-offs around the world. It has also spilled over into mammals and caused a small number of human infections.

Officials are considering a mass poultry vaccination campaign, and U.S.D.A. scientists have been testing numerous potential vaccines. The country could see more animal outbreaks in the coming weeks as infected wild birds migrate north for the summer.

In the English heartlands, the once solidly Conservative “blue wall” has been crumbling. In the recent municipal elections, the Liberal Democrats and the Greens made big gains, while the Conservative Party suffered large losses. This is alarming for Prime Minister Rishi Sunak, whose party lags far behind the opposition Labour Party in opinion polls. George Blundell, a 22-year-old Liberal Democrat, was one of the biggest upsets of the election, winning a seat in the area around Littlewick Green. He attributes his victory to a combination of national politics, local factors, and the complacency of local Conservatives. With a general election expected next year, the defection of voters from the Conservative Party could deprive Mr. Sunak of a parliamentary majority and propel Labour’s leader, Keir Starmer, into Downing Street. Traditional Conservative voters are unhappy about Brexit and aghast at the economic chaos unleashed during Liz Truss’s brief leadership last year. Will the “blue wall” crumble further in the upcoming general election? Only time will tell.