US Government Faces Default Risk
The US Treasury Secretary, Janet Yellen, has stated that the cost of government borrowing for bonds maturing in June has substantially increased. She has warned that the US government risks defaulting on its debt by next month if an agreement on raising the debt ceiling is not reached. In an attempt to break the impasse on the debt ceiling, President Biden is scheduled to meet senior Republicans on Tuesday, including the House Speaker, Kevin McCarthy.
Turkish Presidential Election Goes to Run-Off
The President of Turkey, Recep Tayyip Erdogan, and his rival Kemal Kilicdaroglu, will face a run-off presidential election on May 28th. In the first round, neither candidate secured the 50% threshold required to avoid a second round. Mr. Erdogan won 49.5% of the votes, while Mr. Kilicdaroglu received 44.9% representing an alliance of opposition parties.
EU Urges Crackdown on Indian Oil
The EU’s high representative for foreign policy, Josep Borrell, has urged the EU to crack down on India’s reselling of Russian oil as refined fuels, including diesel into Europe. Borrell has stated that the EU needs to act to stop this in response to the western nations tightening sanctions on Moscow’s energy sector.
UK Minister Pushes for Facial Recognition
The UK’s policing minister is pushing for facial recognition to be used across police forces nationally, despite the technology’s inaccuracies and some illegal applications. The Home Office has briefed the biometrics and surveillance camera commissioner on the minister’s desire to expand the use of the controversial system by law enforcement. This move is likely to be divisive among the public.
UK Retailers Raise Prices on Private Label Goods
UK retailers have been increasing the prices of their own-label grocery ranges faster than branded goods. Private label goods have increased in price by 16.3% in the last 12 weeks, while branded goods have increased by 10%. The gap has widened slightly in the last four weeks, with private labels increasing by 17%. The report showed that cash-strapped customers turned to cheaper ranges to keep their grocery bills down.
China’s Economic Recovery Slows Down
China’s economic recovery is slowing down after an initial burst in consumer and business activity early in the year. Official data has shown that industrial output, retail sales, and fixed investment have grown at a slower pace than expected in April. One major concern is the jump in the unemployment rate for young people to a record high of 20.4%, indicating that the post-pandemic recovery is not strong enough to absorb the millions of new entrants to the labor market.
US Seeks to Refill Strategic Reserves
The US has started seeking crude oil to refill its strategic reserves, causing oil prices to rise. West Texas Intermediate has edged towards $72 a barrel after the US solicited bids for as much as 3 million barrels of sour crude for its Strategic Petroleum Reserve. The deliveries are planned for August, and awards will be announced in June.
Sweden to Limit Foreign Investments
Sweden’s government is set to propose a law that will allow the nation to veto foreign investments. The move is aimed at strengthening national security, but the country’s business lobby fears it will also add unnecessary red tape. The proposed law is the latest in a series of similar initiatives by European countries to rethink their relations with China.
UK Wage Growth Accelerates
UK wage growth has accelerated again in the first quarter, putting pressure on the Bank of England. However, there were signs that Britons are returning to the job market, easing chronic labor shortages. Average earnings, excluding bonuses, have risen by 6.7% in the three months through March compared with a year earlier.