Russian Officials Spar Over Whether Economy Cooling Or In Crisis
President Vladimir Putin's top economic officials openly argued over the state of Russia's economy during a session at a flagship forum, with one government minister issuing his starkest warning yet that the country may be teetering on the edge of a recession.
'Based on current business sentiment and leading indicators, we are on the verge of slipping into a recession,' Economy Minister Maxim Reshetnikov said on Thursday during a heated exchange with other officials at Russia's St. Petersburg International Economic Forum.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Xi Shows No Sign of Rescuing Iran as Trump Ramps Up Pressure
(Bloomberg) -- China was quick to condemn Israel after its assault against Iran. Yet President Xi Jinping has shown no sign of rushing to provide weapons and other support that would help Tehran face its most critical military test in decades. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown How E-Scooters Conquered (Most of) Europe One Architect's Quest to Save Mumbai's Heritage From Disappearing Beijing has repeatedly issued warnings against escalation, calling again on Thursday for the US and other nations to embrace dialogue and 'prevent the regional situation from sliding into the abyss.' Despite that, China has yet to offer any material support to Iran beyond continuing its normal trading relationship, an approach it also took with Russia. While Xi's government has provided diplomatic support for Vladimir Putin's war in Ukraine and shipped dual-use goods to Moscow, China has also been careful not to directly provide weapons in order to avoid US sanctions. Beijing similarly urged de-escalation after its 'ironclad friend' Pakistan and India engaged in their worst military confrontation in half a century. 'China may be offering economic relief and rhetorical support to Iran, but actual military intervention is not anywhere near the table yet,' said Wen-Ti Sung, nonresident fellow with the Atlantic Council's Global China Hub. 'China does not want to risk getting entrapped by Iran's war with an Israel that has the Trump administration behind it.' While the US has a history of becoming embroiled in protracted wars far from home, China's reluctance to get entangled in foreign conflicts is a hallmark of Xi's foreign policy. That principle of non-interference has allowed Beijing to distinguish itself from Washington in the Global South, where it has pursued ties primarily by offering loans and development, while refraining from calls for political change. Beijing's approach toward Iran, as it faces attacks from Israel and potentially the US, mirrors that of its other major partner, Russia. Like Beijing, Moscow has criticized Israel's attacks but done little to support Tehran. After discussing the Middle East by phone with Putin on Thursday, Xi issued a four-point proposal on the conflict that called for a ceasefire and to 'stop the war.' 'It is up to the international community, especially the major powers that have a special influence on the parties to the conflict, to make efforts to contribute to the cooling of the situation,' he said, in a veiled reference to the US. China has strengthened diplomatic and economic ties with Tehran in recent years, although it has no formal alliance with the Islamic Republic. Xi oversaw Iran's joining of the Shanghai Cooperation Organization security club in 2023, and then its accession to the BRICS bloc — groupings Beijing has bolstered to challenge US power on the world stage. While Beijing signed a 25-year strategic cooperation agreement in 2021 that included a reported $400 billion in Chinese investment pledges, implementation of that deal has been weak. China's economic interests in the wider Gulf region now far outweigh its economic ties to Iran. Trade ties with Iran are heavily skewed in Beijing's favor. China accounts for about a third of Iranian trade, while Iran represents less than 1% for China, according to the Center for Strategic and International Studies. And while Beijing buys some 90% of Iran's oil exports in defiance of US sanctions, the Islamic Republic is ultimately a replaceable energy partner for the Asian country. 'In the unlikely event that all Iranian exports are lost, they could be replaced by spare capacity from OPEC+ producers,' Fitch Ratings wrote in a Monday note. Already signs of a shift are emerging. As concerns grow over expanding secondary sanctions, Chinese private refiners have reduced purchase in recent weeks. Iranian oil flows into China fell to around one million barrels a day in May hitting a three-month low, according to data tracked by Vortexa. While Beijing brokered a diplomatic detente between Iran and Saudi Arabia in 2023, it has largely remained on the sidelines as fresh conflicts have unsettled the Middle East. Iran, facing a superior Israeli military, would likely need advanced air defense systems and fighter jets — support that China is unlikely to provide. China has since 2005 officially ceased selling major weapons systems to Tehran, although the US earlier this year sanctioned six Hong Kong and Chinese companies for allegedly helping Iran source drone parts. Another option could be to help mediate. But even if Xi were willing, it's unclear if either side would welcome him. Israel is unlikely to accept China after Beijing has aligned with the Palestinian cause. China also prefers to work through multilateral frameworks such as the United Nations, rather than taking a leading role. 'Xi has expressed willingness to help. But what can he or China do?' said Zhiqun Zhu, professor of political science and international relations at Bucknell University. Mediating 'is a tall order that's hard to reach without cooperation of other key players, especially the United States.' Perhaps the biggest risk for Beijing is the conflict spiraling into a regional war that directly involves the US and could threaten China's energy security. The world's No. 2 economy is a net importer of crude oil, and about 45% of those shipments pass through the Strait of Hormuz. Surging commodity prices would also blunt China's ability to stabilize growth, at at time when policymakers are already grappling with rising trade barriers and a yearslong housing crash that's weighing on consumer spending. 'While Beijing will continue to condemn the conflict, it will also seek to balance ties with Israel and the Gulf states and promote stable energy flows,' according to Bloomberg Economics analysts including Alex Kokcharov. A contained conflict that preoccupies Washington could hold one silver lining for Beijing, he added in a note Thursday: Greater US involvement in the Middle East would 'distract Washington from strategic competition with China.' That calculation is reflected in the mixed views from commentators on Chinese social media, where some nationalist voices urged Beijing to help Tehran. Political commentator Li Guangman argued Iran's failure would be a 'geopolitical disaster' for China. The fall of the Iranian regime would undermine Xi's Belt and Road Initiative, compromise the security of the China-Pakistan Economic Corridor, and allow the US to regain control of regional oil, prolonging its 'petrodollar hegemony,' he said. Ultimately, Beijing prizes stability in its foreign relations and rarely supports violent regime change abroad, according to Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute's Center for China Analysis. 'China's strategy in the Middle East is to stay on good terms with everyone to maximize its economic gains and geopolitical influence,' he added. --With assistance from Jing Li, Josh Xiao and Sarah Chen. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
34 minutes ago
- Associated Press
Hong Kong rises to World's No.3 most competitive economy
HONG KONG SAR - Media OutReach Newswire - 19 June 2025 - Hong Kong has moved up two places to rank as the world's third most competitive economy, marking the second successive year that the city has jumped two places in the global rankings to reach its highest position since 2019. The World Competitiveness Yearbook 2025 (WCY 2025), published (June 17) by the Swiss-based International Institute for Management Development (IMD), assessed 69 economies around the world. Hong Kong made gains in all the factors of competitiveness: 'Government efficiency' (second), 'Business efficiency' (second) 'Economic performance' (sixth), and 'Infrastructure' (seventh). The IMD remarked that the gains across all four factors of competitiveness reflect a broad-based approach of Hong Kong to attracting private sector investment. 'The World Competitiveness Yearbook shows that Hong Kong's scores in overall terms and in many areas have improved, indicating that the Hong Kong Special Administrative Region (HKSAR) Government's policy directions are on the right course and that various policies have yielded results,' said the HKSAR's Chief Executive John Lee. Hong Kong has ranked among the top 10 in the world for over 20 consecutive years, since the WCY 2003. Hong Kong rises to World's No.3 most competitive economy Mr Lee said the ranking also 'affirms Hong Kong's world-class business environment, reflecting business leaders' positive views on its competitiveness and strengths, including the rule of law, independent exercise of judicial power, a simple tax regime with low tax rates, an efficient and transparent market, a robust financial system, and a facilitating environment aligned with international best practices, as well as free flow of capital, information, goods and talent, which are affirmed by the business community.' Despite the current uncertain global economic landscape and geopolitical turmoil, Hong Kong recorded solid year-on-year GDP growth of 3.1% in the first quarter of 2025, with full year GDP growth expected to be 2% to 3%. Totally, 145,053 local companies were newly registered under the Companies Ordinance last year, bringing the overall number of local companies registered to a record high of 1,460,494, at end-2024. Meanwhile, 1,079 newly established non-Hong Kong companies were registered, bringing that overall total to an all-time high of 15,126. 'Under the unique advantages of 'one country, two systems', Hong Kong enjoys both the China advantage and the global advantage. We will continue to leverage Hong Kong's role as a 'super-connector' and 'super value-adder', strengthen international exchanges and co-operation, expand and deepen regional trade, explore new markets, with a view to building a vibrant economy, striving for development and improving people's livelihoods on all fronts,' Mr Lee said. To attract more non-Hong Kong incorporated companies to re-domicile to Hong Kong, the Government launched a new company re-domiciliation regime legislation last month, providing a simple and accessible mechanism for re-domiciliation to Hong Kong. Already, two insurance companies, AXA Hong Kong and Macau (AXA China Region Insurance Company (Bermuda) Limited) and Manulife (International) Limited have announced plans to re-domicile to Hong Kong under the new regime, subject to regulatory approvals. Hong Kong is actively driving reforms to strengthen and enhance its position as an international financial, trade, and shipping centre, trawling for businesses and talents. The Office for Attracting Strategic Enterprises has attracted over 80 strategic enterprises to establish offices in Hong Kong, bringing about HK$50 billion total investments in the years to come, and creating over 20,000 jobs. Among the sub-factors in the WCY 2025, Hong Kong came top for 'Tax policy' and 'Business legislation' and second for 'Education', 'International investment' and 'Finance'. Ranked as a top three global financial centre, Hong Kong's stock exchange is a key barometer of financial market performance. By May 30, 2025, stock market capitalisation had increased by 24% year-on-year to over US$5.2 trillion. Notably, the Hong Kong Stock Exchange has seen a surge in initial public offerings (IPOs), with total IPO funds raised reaching nearly HK$79 billion (US$10.12 billion) so far this year, making it the leader among major global exchanges. Hong Kong is one of the world's top three ranked global financial centres Hashtag: #hongkong #brandhongkong #asiasworldcity #excellenthk #IMD #WorldCompetitiveness2025 The issuer is solely responsible for the content of this announcement.
Bloomberg
38 minutes ago
- Bloomberg
UK Talks to Administrators as Thames Nationalization Risk Grows
The UK has been talking to administrators about next steps for Thames Water as it intensifies preparations for a possible form of temporary nationalization, according to a person familiar with the government's plans. Environment Minister Steve Reed is rejecting calls from creditors for special treatment on sewage fines, setting the stage for a showdown which could end with plans to rescue the company falling apart.
