Japan Loses Top Creditor Status for First Time in 34 Years
Japan lost its position as the world's largest creditor nation for the first time in 34 years, despite posting a record amount of overseas assets.
Japan's net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, rising about 13% from the previous year, according to data released Tuesday by the Ministry of Finance. While the figure marked an all-time high, it was overtaken by Germany, whose net external assets totaled ¥569.7 trillion. China remained in third place with net assets of ¥516.3 trillion.
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Wall Street Journal
26 minutes ago
- Wall Street Journal
Global Markets Mixed; U.S.-China Trade Talks in Focus
U.S. stock futures pointed to a slightly lower open Monday after gains last week buoyed by optimism around U.S.-China trade talks, and after the U.S. jobs market held up better than expected. The main focus this week is on those trade talks in London, while U.S. inflation data for May are due on Wednesday.
San Francisco Chronicle
26 minutes ago
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Public employees in Iraq's Kurdish region caught in the middle of Baghdad-Irbil oil dispute
BAGHDAD (AP) — Tensions have escalated between Iraq's central government in Baghdad and the semiautonomous Kurdish region in the country's north in a long-running dispute over the sharing of oil revenues. The central government has accused the Kurdish regional authorities of making illegal deals and facilitating oil smuggling. Baghdad cut off funding for public sector salaries in the Kurdish region ahead of the Eid al-Adha holiday. Kurdish authorities called the move 'collective punishment' and threatened to retaliate. A long-running dispute It's the latest flare-up in a long-running dispute between officials in Baghdad and Irbil, the seat of the Kurdish regional government, over sharing of oil revenues. In 2014, the Kurdish region decided to unilaterally export oil through an independent pipeline to the Turkish port of Ceyhan. The central government considers it illegal for Irbil to export oil without going through the Iraqi national oil company and filed a case against Turkey in the International Court of Arbitration, arguing that Turkey was violating the provisions of the Iraqi-Turkish pipeline agreement signed in 1973. Iraq stopped sending oil through the pipeline in March 2023 after the arbitration court ruled in Baghdad's favor. Attempts to reach a deal to restart exports have repeatedly stalled. Last month, Prime Minister Masrour Barzani of the Iraqi Kurdish regional government traveled to Washington, where he inked two major energy deals with U.S. companies. The federal government in Baghdad then sued in an Iraqi court, asserting that it was illegal for the regional government to make the deals without going through Baghdad. Iraq cuts off funds for public employees in the Kurdish region The Iraqi Ministry of Finance announced a decision last month to halt funding for salaries of public sector employees in the Kurdish region. The move sparked widespread outrage in Irbil, triggering strong political and public reactions. The ministry said in a statement that the decision was due to the Kurdish regional authorities' 'failure to hand over oil and non-oil revenues to the federal treasury, as stipulated in the federal budget laws.' It added that any transfer of funds would be conditional on 'the region's commitment to transparency and financial accountability.' The federal Ministry of Oil accused Irbil of failing to deliver crude oil produced in the region's fields to the ministry for export through the state-run SOMO company, which it said had led to massive financial losses amounting to billions of dollars. The ministry warned that 'continued non-compliance jeopardizes Iraq's international reputation and obligations, forcing the federal government to reduce oil production in other provinces to stay within Iraq's OPEC quota — which includes Iraqi Kurdish production, regardless of its legality.' Accusations of oil smuggled out of the Kurdish region Baghdad has also accused Irbil of smuggling oil out of the country. An Iraqi official who spoke on condition of anonymity because he was not authorized to comment publicly said the government had tracked 240 cases of illegal border crossings from Iraq's Kurdish region into Iran between Dec. 25, 2024, and May 24, 2025, aimed at smuggling oil derivatives. The Kurdish region's Ministry of Natural Resources in a statement called those allegations 'a smokescreen to distract from widespread corruption and smuggling in other parts of Iraq. The KRG agreed to sell its oil through SOMO, opened an escrow account, and handed over revenues — yet Baghdad failed to meet its financial obligations.' It accused the federal government of being responsible for the halt in oil exports via Turkey due to the lawsuit it filed in 2023 and said the Kurdish region had delivered over 11 million barrels of oil to the Ministry of Oil without receiving any financial compensation. The ministry accused Baghdad of 'violating the constitution and pursuing a deliberate policy of collective punishment and starvation against the people" of the Kurdish region through the halt in funding for salaries. Barzani in a statement on the eve of the Eid al-Adha holiday described the withholding of salaries as an 'unjust and oppressive decision' and a 'policy of mass starvation' comparable to the chemical attacks and 'genocide' launched by Iraq's former longtime strongman ruler, Saddam Hussein, against the Kurds. The Iraqi Kurdish people "have resisted with steadfastness and courage in the face of all forms of pressure and tyranny' and 'regret was the fate of the tyrants," he said. In the meantime, residents of the Kurdish region feel caught in the middle of the yearslong political dispute once again. Saman Ali Salah, a public school teacher from the city of Sulaimaniyah, said the salary cutoff comes at a particularly bad time for him — his daughter was hit by a car 40 days ago and is still in the hospital. He blamed both Baghdad and Irbil for the situation. 'All the money I had was spent on transportation from the house to the hospital and I haven't paid my rent for the past two months," Salah said. 'I don't know what to do. All I can say is that God will take revenge on these so-called officials on Judgement Day.'
CNN
27 minutes ago
- CNN
US and China kick off fresh round of trade talks in London over intractable issues
A new round of trade negotiations between the United States and China is set to begin Monday in London as both sides try to preserve a fragile truce brokered last month. The fresh talks were announced last week after a long-anticipated phone call between US President Donald Trump and Chinese leader Xi Jinping, which appeared to ease tensions that erupted over the past month following a surprise agreement in Geneva. In May, the two sides agreed to drastically roll back tariffs on each other's goods for an initial 90-day period. The mood was upbeat. However, sentiment soured quickly over two major sticking points: China's control over so-called rare earths minerals and its access to semiconductor technology originating from the US. Beijing's exports of rare earths and their related magnets are expected to take center stage at the London meeting. But experts say Beijing is unlikely to give up its strategic grip over the essential minerals, which are needed in a wide range of electronics, vehicles and defense systems. 'China's control over rare earth supply has become a calibrated yet assertive tool for strategic influence,' Robin Xing, Morgan Stanley's chief China economist and other analysts wrote in a Monday research note. 'Its near-monopoly of the supply chain means rare earths will remain a significant bargaining chip in trade negotiations.' Since the talks in Geneva, Trump has accused Beijing of effectively blocking the export of rare earths, announcing additional chip curbs and threatening to revoke the US visas of Chinese students. The moves have provoked backlash from China, which views Washington's decisions as reneging on its trade promises. All eyes will be on whether both sides can come to a consensus in London on issues of fundamental importance. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will meet a Chinese delegation led by Vice Premier He Lifeng. On Saturday, Beijing appeared to send conciliatory signals. A spokesperson for China's Commerce Ministry, which oversees the export controls, said it had 'approved a certain number of compliant applications.' 'China is willing to further enhance communication and dialogue with relevant countries regarding export controls to facilitate compliant trade,' the spokesperson said. Kevin Hassett, head of the National Economic Council at the White House, told CBS's Face the Nation on Sunday that the US side would be looking to restore the flow of rare earth minerals. 'Those exports of critical minerals have been getting released at a rate that is higher than it was, but not as high as we believe we agreed to in Geneva,' he said, adding that he is 'very comfortable' with a trade deal being made after the talks. In April, as tit-for-tat trade tension between the two countries escalated, China imposed a new licensing regime on seven rare earth minerals and several magnets, requiring exporters to seek approvals for each shipment and submit documentation to verify the intended end use of these materials. Following the trade truce negotiated in Geneva, the Trump administration expected China to lift restrictions on those minerals. But Beijing's apparent slow-walking of approvals triggered deep frustration within the White House, CNN reported last month. Rare earths are a group of 17 elements that are more abundant than gold and can be found in many countries, including the United States. But they're difficult, costly and environmentally polluting to extract and process. China controls 90% of global rare earth processing. Experts say it's possible that Beijing may seek to use its leverage over rare earths to get Washington to ease its own export controls aimed at blocking China's access to advanced US semiconductors and related technologies. The American Chamber of Commerce in China said on Friday that some Chinese suppliers of American companies have received six-month export licenses. Reuters also reported that suppliers of major American carmakers – including General Motors, Ford and Jeep-maker Stellantis – were granted temporary export licenses for a period of up to six months. While China may step up the pace of license approvals to cool the diplomatic temperature, global access to Chinese rare earth minerals will likely remain more restricted than it was before April, according to a Friday research note by Leah Fahy, a China economist and other experts at Capital Economics, a London-based consultancy. 'Beijing had become more assertive in its use of export controls as tools to protect and cement its global position in strategic sectors, even before Trump hiked China tariffs this year,' the note said. As China tackles a tariff war with the US head on, it's clear that it is continuing to cause economic pain at home. Trade data released Monday painted a gloomy picture for the country's export-reliant economy. Its overall overseas shipments rose by just 4.8% in May compared to the same month a year earlier, according to data released by China's General Administration of Customs. It was a sharp slowdown from the 8.1% recorded in April, and lower than the estimate of 5.0% export growth from a Reuters poll of economists. Its exports to the US suffered a steep decline of 34.5%. The sharp monthly fall widened from a 21% drop in April and came despite the trade truce announced on May 12 that brought American tariffs on Chinese goods down from 145% to 30%. Still, Lv Daliang, a spokesperson for the customs department, talked up China's economic strength, telling the state-run media Xinhua that China's goods trade has demonstrated 'resilience in the face of external challenges.' Meanwhile, deflationary pressures continue to stalk the world's second-largest economy persist, according to data released separately on Monday by the National Bureau of Statistics (NBS). In May, China's Consumer Price Index (CPI), a benchmark for measuring inflation, dropped 0.1% compared to the same month last year. Factory-gate deflation, measured by the Producer Price Index (PPI), worsened with a 3.3% decrease in May from a year earlier. Last month's drop marks the sharpest year-on-year contraction in 22 months, according to NBS data. Dong Lijuan, chief statistician at the NBS, attributed the decline in producer prices, which measures the average change in prices received by producers of goods and services, to a drop in global oil and gas prices, as well as the decrease in prices for coal and other raw materials due to low cyclical demand. The high base of last year was cited as another reason for the decline, Dong said in a statement. CNN's Hassan Tayir, Simone McCarthy, Fred He contributed reporting.
