Trump Calls China's Xi
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
🎙️ Voice is AI-generated. Inconsistencies may occur.
President Donald Trump had a phone call with Chinese President Xi Jinping on Thursday, state news outlet Xinhua reported.
Trade tensions have reignited in recent days between China and the U.S., with both sides accusing each other of violating a previous tariff-slashing agreement made in Geneva.
This is a breaking news story. Updates to follow.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
11 minutes ago
- Miami Herald
Has Russia Moved Strategic Aviation Nearer to Alaska? What We Know
Russia has likely not moved one of its nuclear-capable heavy bombers further from Ukraine, analysts and satellite imagery indicate after reports suggested Moscow had transferred one of its hefty Tu-160 supersonic aircraft closer to Alaska following extensive Ukrainian strikes on Russian airfields. Ukraine said it hit 41 of Russia's expensive, hard-to-replace warplanes on June 1 in a meticulously timed operation across three different time zones using drones smuggled over the border. Ukrainian outlet Defence Express reported on Thursday that Russia had relocated one of its Tu-160 strategic bombers to the Anadyr airfield in Russia's far eastern Chukotka region, citing satellite imagery captured by the European Space Agency's Sentinel satellites on June 4. Satellite imagery provided to Newsweek by Planet Labs, captured of Anadyr on May 26 - prior to the audacious Ukrainian strikes - showed three aircraft lined up on the main apron. The image, while low quality, does not indicate the presence of the distinctively shaped Tu-160s, analysts said. A separate image from June 3 showed four aircraft on the main apron of the base, but none of the aircraft - including the one that appeared since May 26 - appear to be the world's heaviest operational bomber, experts told Newsweek. It is fairly standard practice for militaries to move aircraft around and may not indicate anything more than a "sensible approach to looking after your aircraft," said Frank Ledwidge, a senior lecturer in Law and War Studies at Portsmouth University in the U.K. and a former British military intelligence officer. Under the New START Treaty limiting nuclear weapons, strategic bombers have to be kept out in the open, Ledwidge added. Russia will likely move around its aircraft more following the success of the Ukrainian strikes, retired Air Marshal Greg Bagwell, a former senior commander in the U.K.'s Royal Air Force, told Newsweek. Kyiv said after the strikes, it had targeted at least one of Moscow's scarce A-50 airborne early warning and control aircraft and several long-range, nuclear-capable bombers across four air bases thousands of miles apart. Russia reported drone assaults on five bases, including strikes on a long-range aviation hub in the country's far east that Kyiv did not publicly acknowledge. One Ukrainian official said 13 aircraft had been destroyed. Satellite imagery from the Siberian air base of Belaya and Olenya, an Arctic base in Murmansk-just two of the targeted bases-showed several destroyed Tu-95 and Tu-22 bombers. Ukraine said it had also attacked the Ivanovo airbase northeast of Moscow and Dyagilevo in the Ryazan region. The Belaya airfield sits just shy of 3,000 miles from Ukraine. At least six Russian Tu-95MS and four Tu-22M3 aircraft appear to have been destroyed, Justin Bronk, a senior research fellow for airpower at the U.K.-based Royal United Services Institute (RUSI), said in recent days. While unlikely to hack away at how many aerial assaults Russia can mount on Ukraine, the simultaneous strikes known as Operation Spiderweb caused roughly $7 billion in damage, according to Kyiv, and exposed how vulnerable airfields and their aircraft now are to drone strikes while landing an embarrassing slap on the Kremlin. U.S. President Donald Trump said earlier this week that Russian President Vladimir Putin had "very strongly" insisted he would retaliate for the strikes. The main base in Russian territory where the operation was masterminded was "directly next to" an FSB regional headquarters, Ukraine's President, Volodymyr Zelensky, said as he praised the "brilliant" operation. Russia's FSB domestic security agency is the main descendant of the Soviet-era KGB. Russia used a Tu-160 in intensive overnight missile and drone strikes across Ukraine, Kyiv's air force said on Friday. Moscow fired more than 400 attack drones, six ballistic missiles, 38 cruise missiles and one anti-radar air-to-surface missile at the war-torn country overnight, according to the air force. Ukraine's military separately said on Friday it had hit Dyagilevo in fresh strikes and the Engels long-range aviation hub in the Saratov region. Newsweek has reached out to the Russian Defense Ministry for comment via email. Related Articles G7 Invite for Modi Signals India's Growing Weight for Democratic AllianceRussia Offers Political Asylum to Elon Musk Over Trump FeudRussia Reacts to Trump's 'Young Children Fighting' CommentUS Demands 'End' to Military Cooperation Between North Korea and Russia 2025 NEWSWEEK DIGITAL LLC.
Miami Herald
11 minutes ago
- Miami Herald
Pope Leo Faces First Major Test Over ‘Morally Corrupt' Bishop
Pope Leo XIV is set to face one of his first major tests with a petition addressed to him calling for the removal of Cologne Archbishop Rainer Maria Woelki over concerns about his handling of sexual abuse allegations. Newsweek has contacted the Vatican via email, for comment. As the newly elected pope, people will be watching how Leo handles concerns about sex abuse in the church. How the Vatican responds to the petition, which has more than 60,000 signatures, could set the tone for Pope Leo's leadership style and his stance on episcopal accountability worldwide. Woelki has long been a divisive figure in the church amid criticism of his handling of sexual abuse cases in the archdiocese of Cologne. In September 2021, Pope Francis decided to leave Woelki in office despite massive criticism over his handling of the sexual abuse cases. The pontiff instead gave the cardinal a "spiritual timeout" of several months after he made "major errors" of communication. Woelki had infuriated many local Catholics by citing legal concerns to keep under wraps a report on how local church officials reacted when priests were accused of sexual abuse. He commissioned a second report, and a German law firm produced an 800-page investigation. The report he commissioned absolved Woelki himself of any neglect of his legal duties with respect to abuse victims. He subsequently said he made mistakes in past cases involving sexual abuse allegations but made clear he had no intention of resigning. The Cologne public prosecutor's office had been investigating Cardinal Woelki since autumn 2022 for possible false testimony regarding his knowledge of abuse allegations, according to the Catholic News Agency. In summer 2023, his apartment and offices were searched. However, at the beginning of May 2025, investigations of the cardinal were ended after the payment of a 26,000-euro (about $29,700) fine. The Archdiocese of Cologne told Newsweek: "As is well known, the presumption of innocence public prosecutor's office has expressly confirmed that Cardinal Woelki did not make a deliberately false statement and therefore did not commit perjury." Munich priest Wolfgang F. Rothe, who started the petition on May 26, wrote that "in dealing with allegations of sexual abuse, (Woelki) gravely violated his duty of care. "Against this backdrop, Cardinal Woelki is completely morally corrupt. He has lost all credibility, both in public and within the Archdiocese of Cologne and the Catholic Church in Germany," Rothe said. "Leaders in politics and society do not want to be seen with him, parishes are not visited by him, and confirmation candidates are not confirmed by him." "His behavior is a severe slap in the face to the many victims of sexual abuse and undermines efforts to address sexual abuse in other German dioceses and in the universal Church," Rothe added. In March 2022, after Francis ordered an official review of Woelki's archdiocese, the Vatican found no evidence of unlawful conduct-although it said major errors of communication had been made. It also praised Woelki's willingness to be investigated, the Catholic News Agency reported. Munich priest Wolfgang F. Rothe wrote in his petition: "Cardinal Woelki is largely isolated both within the Archdiocese of Cologne and within the Catholic Church in Germany. He is a shepherd without a flock. And the Archdiocese of Cologne is a flock without a shepherd." Riccardo Wagner, Head of the Media School at Fresenius University of Applied Sciences Cologne, was critical of the petition in an interview with the Catholic newspaper Die Tagespost. He said: "The platform and the petition act as if sacramental offices could be legitimized or delegitimized by digital public opinion – this fundamentally contradicts the nature of the Church, which is why this approach and means must be clearly rejected." The Archdiocese of Cologne told Newsweek: "For Cardinal Woelki, the end of the proceedings marks the end. He now wants to devote all his energy to the future of the Archdiocese of Cologne together with the faithful." It is yet to be seen how Leo will respond to this petition and what the impact of his decision will be. Related Articles Donald Trump Wants Pope Leo's Brother To Visit Him at White HouseJD Vance Has 'Exchange of Views' With Archbishop After Pope Leo MeetingPope Leo Offers Vatican to Putin, Zelensky for TalksPope Leo Issues Five-Word Message to the US 2025 NEWSWEEK DIGITAL LLC.
Yahoo
12 minutes ago
- Yahoo
What is the bond market and why is everybody so worried about it?
The bond market doesn't make headlines nearly as often as its more exciting cousin, the stock market, but when it does, look out. At least twice in 2025, bond investors have reacted negatively to U.S. President Donald Trump's policies, spooked first by his trade war and more recently by the growing U.S. government debt. Those join a list of other recent bond market tantrums that suggest investors have growing concerns about the state of government finances around the world. But just what is the bond market, how does it work and why is it such a problem when investors get jittery about it? The Financial Post explains. The bond market is a financial market where governments, companies and investors can issue, buy and sell debt in the form of — you guessed it — bonds. For governments, selling a new bond raises the funds needed to finance public spending, while a business might use the proceeds for corporate operations or an acquisition. In return, bonds provide investors with periodic interest payments, usually at a fixed interest rate, and guarantee the repayment of the principal at maturity. Government bonds can come in a range of durations from months all the way up to decades. For example, U.S. government debt ranges from one-month Treasury bills to 30-year Treasury bonds. Investors are especially focused on the U.S. bond market because it is the largest in the world, worth about US$47 trillion. This accounts for about 40 per cent of the US$142 trillion global bond market as of 2025, according to the Securities Industry and Financial Markets Association, a U.S. industry trade group. As of the fourth quarter of 2024, investors held US$28 trillion of government debt in Treasuries. Investors buy government bonds because they are seen as safe, especially in contrast to stocks, which can carry more risk, especially during economic turbulence. Bonds pay out steady interest, and there is little risk the government of a major economy such as the U.S. will not repay the principal at maturity — or at least that's the theory. In reality, investors increasingly appear to be questioning whether government bonds, in particular those issued by the U.S., are such a safe bet. Carl Gomez, chief economist and head of market analytics for CoStar Group, said the bond market, like any other market for financial assets, depends on buyers and sellers making trades based on their expectations regarding market conditions. And some recent decisions by the U.S. government have investors feeling like they are taking on more risk with bonds, he said. When Trump unveiled his plan for massive tariffs on other countries on 'Liberation Day' in April, it sent shockwaves through the stock market. Although normally investors would buy bonds as a counterweight to equity risk, something unexpected happened. There was a selloff in the bond market as well, signalling that buyers were losing confidence in the U.S. as a safe place to store their money. The 10-year Treasury yield spiked from less than four per cent on April 4 to 4.5 per cent on April 8, while the 30-year yield topped five per cent. 'People are worried the independence of the Fed could be eroded to some extent, people are worried that the U.S. administration's policies have not been friendly to the allies or to the providers of capital for the U.S. market,' said Jason Daw, the head of North American rates strategy at Royal Bank of Canada (RBC) Capital Markets. 'This has led the market to believe that (foreign) investors are going to be investing less in the U.S and maybe more in their domestic markets.' And with the U.S.'s massive debt, investors question the government's fiscal prudence, weakening demand for U.S. bonds. Trump's 'big, beautiful' tax bill lead to the second big spike in yields this year. Introduced in May, the bill included extended tax cuts and an increase to the national debt ceiling, and would add nearly US$4 trillion to America's US$36 trillion in debt if passed. In the immediate aftermath of the tax bill announcement on May 22, the 10-year yield closed at 4.58 per cent, its highest level since 2023. To make matters worse, credit rating agency Moody's Corp. downgraded America's credit rating due to the country's inability to manage its ballooning debt. Following that up, there was tepid demand at a US$16 billion 20-year Treasury bond auction, another key indicator of the bond market's woes, pushing yields to 5.1 per cent. 'When the government goes to borrow, they auction up the bonds, and get the money from the Treasury,' Gomez said. 'If there are fewer buyers, then that price is going to come down, and the yields will need to go up on those bonds to make them sellable.' When people talk about trouble in the bond market, they often talk about yields spiking. The yield on a bond is how much you would expect to earn on your money per year if you held the bond through to maturity, including both interest payments and price return. While the interest payment on a bond is usually fixed, yields adjust to prevailing expectations about where interest rates are heading. For example, if investors think they will be able to buy a new bond at an interest rate of five per cent, they aren't likely to want an existing bond with an interest rate of only four per cent. So the price of that older bond falls. The big thing to remember is that yields and prices are inversely related: If yields go up or spike, it means the value of the bonds people are holding goes down. 'Similar to how the value of a stock or the equity market could change, the value of bonds changes depending on people's expectations of future interest rates and depending on when you purchase the bond (which could be) at a value that is above or below its maturity level,' said Daw. If bond buyers are concerned that the U.S. fiscal position is deteriorating, they are likely going to want a higher return to offset the risk of lending to Uncle Sam. So, yields go up, and prices go down. Bond yields have been rising across the globe — a striking reversal in a long-term trend of declining yields that persisted over the past 20 to 30 years thanks to modest inflation and economic stability. With inflation higher post-COVID and due to economic jitters from the U.S.-initiated trade war, there is less demand for especially long-term government bonds globally, making it more expensive for governments to borrow. If the U.S. has trouble selling its bonds at rates that allow it to service its debt, it could be forced to raise interest rates to higher and higher levels to placate investors seeking compensation for taking on the greater risk. Increasing interest rates could create a vicious cycle of higher rates making it more expensive for the government to service its debt, leading to bigger deficits and more debt, producing greater risk that buyers will want to be compensated for with higher interest rates. Most importantly, the U.S. relies on the sale of its Treasury bonds to fund its operations. If buyers don't want to buy bonds, the government could struggle to pay its bills, especially if there aren't sufficient tax revenues, Gomez said. 'Ultimately, it can lead to a financial crisis,' he said. 'It circles down across the whole financial system into the real economy.' Gomez pointed to Greece as an example. The country toppled into a government debt crisis in 2007, exacerbated by the global financial crisis, and struggled to recover. Major financial rating agencies flagged Greek bonds with 'junk' status in 2010. The country's unemployment rate hit a record 28 per cent in 2014, and poverty and homelessness snowballed. 'This doesn't usually happen to a well-developed country like the United States, given its position in the world,' Gomez said, noting the Fed could step in and be 'the buyer of last resort.' Still, this could lead to major inflation risks caused by 'printing money' and potentially call into question America's long-term debt sustainability, which would result in higher interest rates over the long run, he said. Although Canada's bond market typically follows the same direction as its southern neighbour, Gomez said it has hit a resistance point due to the Bank of Canada cutting interest rates out of step with the U.S. Federal Reserve. Canadian bond yields are getting tugged upward, influenced by what is occurring in the U.S., but they are also being pulled down by the central bank. 'Everybody probably expected at the end of last year that we'd see lower interest rates, lower mortgages,' Gomez said. 'But what's really happening is that the bond market and bond yields in Canada are just going sideways.' If the Fed starts cutting rates more than the Bank of Canada, Daw said it is likely the Canadian bond market will underperform the U.S. Treasury market over the next six to 12 months. Canada's central bank is in a tight spot, as it weighs the upside risks to inflation against the downside risks to growth brought on by U.S. tariffs. The other factor weighing on Canadian market sentiment is the expectation that the federal government and provinces will be issuing plenty of bonds this year to increase spending to support the economy through the trade war. When the supply of bonds goes up, this puts downward pressure on bond prices and upward pressure on bond yields. Canada's debt position doesn't look as grim as the U.S., but it is growing. The U.S. debt to gross domestic product (GDP) ratio was 123 per cent in 2024, while Canada's amounted to 110.8 per cent — but Canada's debt to GDP ratio has been on an upward path since 2022 and is markedly higher than its pre-pandemic levels (where it hovered around the 90 per cent range). Why everyone is worried about the bond market — especially Donald Trump Bond market volatility spells trouble for investors Gomez predicted that the Canadian bond market will outperform the U.S. but added that inflation and global factors will still influence yields. 'The thing about the U.S. is that it is still the centre of the capital markets across the world,' said Gomez. 'So, what happens in the U.S. invariably starts impacting the rest of the world.' • Email: slouis@ Sign in to access your portfolio
