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G7 members - the United States, Japan, Germany, France, Britain, Italy and Canada - are grappling with the immense challenges posed by Russia's invasion of Ukraine and tensions with China, notably over Taiwan and economic security. The communique was issued shortly after the French government aircraft that brought Zelenskiy to Hiroshima touched down. Zelenskiy will hold bilateral meetings with G7 leaders, but significantly also the leaders of India and Brazil, two countries that have not distanced themselves from Moscow. He is due to hold a session on Sunday with the G7 before a broader session with the Global South attendees. Reporting by Reuters G7 team in Hiroshima; Writing by David Dolan; Editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.

The Hiroshima summit comes as G7 members are faced with the immense challenges posed by Russia's invasion of Ukraine and tensions with China. The G7 nations are looking to "de-risk, not decouple" from China, White House national security adviser Jake Sullivan told reporters in Hiroshima. In a draft of the final communique seen by Reuters, G7 leaders agreed that China's status as the world's second-largest economy meant they had to continue to cooperate. U.S. President Joe Biden told G7 leaders on Friday that Washington supports joint allied training programmes for Ukrainian pilots on F-16 fighter jets, in a significant endorsement for Kyiv. Reporting by Reuters G7 team in Hiroshima; Writing by David Dolan; Editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.

[1/2] Ukrainian President Volodymyr Zelenskiy speaks to the media at the Chancellery in Berlin, Germany, May 14, 2023. G7 leaders planned to outline steps to protect sensitive technology, including outbound investment measures, in their communique, White House national security adviser Jake Sullivan told reporters at a briefing in Hiroshima. In a draft of the final communique, seen by Reuters, G7 leaders agreed that China's status as the world's second-largest economy meant they had to continue to cooperate. Zelenskiy is expected to hold bilateral meetings with attendees of the G7 summit, including the host, Japanese Prime Minister Fumio Kishida. Reporting by Reuters G7 team in Hiroshima; Writing by David Dolan; Editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.

☆ White House says G7 will align on shared 'de-risk, not decouple' approach to China
▼ + stars: | 2023-05-20 | by ( ) www.reuters.com time to read: 1 min

HIROSHIMA, Japan, May 20 (Reuters) - The Group of Seven rich nations will issue a statement on a shared approach on China, White House national security adviser Jake Sullivan said early Saturday, adding that G7 members were looking to "de-risk, not decouple" from China. Sullivan said the G7 leaders planned to outline steps to protect sensitive technology, including outbound investment measures, in their joint statement or communique. "The communique will note that each country has its own independent relationship and approach, but we are united and aligned around a set of common elements," Sullivan said, referring to G7 plans to cooperate with China while addressing significant concern in a range of areas. Reporting by Trevor Hunnicutt and Jeff Mason; writing by Andrea Shalal; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

In theory, the world’s largest industrialized democracies have agreed to stop using fossil fuels within a little over a quarter-century and to switch to new sources of power such as solar and wind as fast as they can. The final communiqué from the summit, released on Saturday afternoon, included language sought by Japan that blesses continued investment in certain types of coal-fired power plants that the Japanese government is helping to finance. But leaders only modestly modified language from last year’s meeting that supported some new investment in natural gas infrastructure. Germany, which pushed for the endorsement in 2022 as it scrambled to replace Russian gas imports in the wake of the invasion of Ukraine, had sought to broaden the wording this year. The behind-the-scenes battle underscored the political, economic and practical challenges that many Group of 7 nations have run into as they seek to accelerate a global energy transition with trillions of dollars in government incentives.

☆ How ‘Decoupling’ From China Became ‘De-risking’
▼ + stars: | 2023-05-20 | by ( Damien Cave | ) www.nytimes.com time to read: +1 min

It reflects an evolution in the discussion over how to deal with a rising, assertive China. But the word also has a vexing history in financial policy — and since the debate over de-risking will continue, we all might as well get up to speed. How De-risking Went Viral“De-risking” relations with China caught on after a speech by the European Commission president, Ursula von der Leyen, on March 30, when she explained why she’d be traveling to Beijing with President Emmanuel Macron of France, and why Europe would not follow the calls for decoupling that began under President Trump. “I believe it is neither viable — nor in Europe’s interest — to decouple from China,” she said. This is why we need to focus on de-risk — not decouple.”

The April meeting of G7 climate ministers eventually agreed, despite tussles between Japan and European nations, that gas investments "can be appropriate to help address potential market shortfalls" following Russia's invasion of Ukraine and the disruption it has caused in global energy markets. Saturday's G7 leaders statement at their summit in Japan's Hiroshima changed the language - eventually formulated by Germany, sources say - to include gas investments again, with the G7 saying it was "necessary to accelerate the phase-out of our dependency on Russian energy". DEFENDING THE STANCEGerman government officials rejected that criticism, saying investments are needed to get away from Russian gas and find a replacement. The G7 pledged to achieve a net-zero emissions goal by 2050 and to limit global warming to 1.5 degrees Celsius. Max Lawson, head of inequality policy at activist group Oxfam, said the G7 had maintained a loophole for new fossil gas investments using the Russian military conflict with Ukraine "as an excuse."

☆ Hiroshima G7 marks costs of war and welcomes Ukraine's Zelenskiy
▼ + stars: | 2023-05-20 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +5 min

[1/5] Ukraine's President Volodymyr Zelenskiy and French President Emmanuel Macron shake hands during the G7 leaders' summit in Hiroshima, Japan May 20, 2023. Zelenskiy will receive a hero's welcome during the closing day of the G7 summit hosted in Hiroshima, Japan, where leaders debated how to respond to a conflict that many expect only to escalate after nearly 15 months of fighting. On Sunday, Japan and South Korea, two of China's wealthiest neighbours, will highlight their improved ties with a joint meeting. But Zelenskiy has pushed the countries to go further on both economic and military measures. "Important meetings with partners and friends of Ukraine," Zelenskiy said on Twitter as he arrived in Hiroshima.

☆ G-7 aims to rein in risks from China, awaits Zelenskyy
▼ + stars: | 2023-05-20 | by ( ) www.cnbc.com time to read: +2 min

Ukrainian President Volodymyr Zelenskyy is due to arrive in Hiroshima on Saturday to drum up support for his country's defence effort. The G7 nations are looking to "de-risk, not decouple" from China, White House national security adviser Jake Sullivan told reporters in Hiroshima. In a draft of the final communique seen by Reuters, G7 leaders agreed that China's status as the world's second-largest economy meant they had to continue to cooperate. "We do not seek to thwart China's economic progress and development," the leaders said in the draft, which is subject to change. China has voiced concern that the summit would turn into a "political show" against Beijing.

☆ White House says G7 aims to 'de-risk' dealings with China
▼ + stars: | 2023-05-20 | by ( ) www.reuters.com time to read: +4 min

DEALING WITH CHINA* G7 members are prepared to build "constructive and stable relations" with China while acting in their national interests, according to a draft version of their communique seen by Reuters on Friday. * White House national security adviser Jake Sullivan said G7 members were looking to "de-risk, not decouple" from China. * Biden and Japanese Prime Minister Fumio Kishida have discussed ways to strengthen defence cooperation and counter coercive behaviour by China, the White House said in a statement. * G7 leaders said they had ensured that Ukraine had the budget support it needs for this year and early 2024. CLIMATE/ENERGY/NUCLEAR PROLIFERATION* U.S. President Joe Biden has reassured G7 leaders that he believes negotiators will arrive at a good outcome in debt ceiling talks, his national security adviser, Jake Sullivan, said.

☆ G7 aims to bridge vast gap with emerging markets, awaits Zelenskiy
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

[1/2] Ukrainian President Volodymyr Zelenskiy speaks to the media at the Chancellery in Berlin, Germany, May 14, 2023. REUTERS/Fabrizio BenschHIROSHIMA, Japan, May 20 (Reuters) - Leaders of the world's richest democracies are looking to bridge a vast gap with emerging economies by focusing on infrastructure and debt relief, officials say, part of a strategy to blunt China's influence in lower-income countries. Russia's war in Ukraine has also unduly hurt low-income countries, the G7 members say. "Low- and middle-income countries are disproportionately affected by Russia's war of aggression against Ukraine," they said in the draft. Reporting by Reuters G7 team in Hiroshima; Writing by David Dolan; Editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.

☆ G7 draft communique on China relationship: 'We act in our national interest'
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: 1 min

TOKYO, May 19 (Reuters) - Members of the Group of Seven advanced nations are prepared to build "constructive and stable relations" with China while acting in their national interests, according to a draft version of their communique seen by Reuters on Friday. The leaders, who kicked off a three-day summit in the Japanese city of Hiroshima that goes until Sunday recognise that "economic resilence requires de-risking and diversifying" from the world's second-largest economy, the draft showed. The final version of the communique is expected to be released on Sunday. Reporting by John Irish; Editing by David Dolan and Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

"A longer timeframe shows that foreign investors have been net sellers of Japanese equities by a considerable margin. We think long-term investors remain lightly positioned," they wrote last week in a note "Upside risks in Japanese equities". Non-residents sold nearly $4 billion of Chinese stocks in April, according to the Institute of International Finance, the first outflow in six months. Bank of America's monthly fund manager surveys show that "long" Chinese equities was the most crowded global trade in January. That has been scaled back significantly and investors have reduced their net overweight position in Chinese stocks, but they are still comfortably net overweight.

ORLANDO, Florida, May 15 (Reuters) - China's yuan faces significant long-term obstacles to becoming a global reserve currency of any great import, but the biggest challenge in the near term is the fact that nobody wants to buy Chinese bonds. Reuters ImageReuters Image"It is very hard to create a reserve currency, without attractive reserve assets. Exante Data's figures show foreign investors bought a net $558 billion of Chinese bonds between 2010 and 2021. But in a pool of $12 trillion global reserves, of which nearly 80% is denominated in dollars and euros, these are very small numbers. Reuters ImageRESERVE STATUSAny currency that has designs on attaining international reserve status must meet several criteria and fulfill several roles.

☆ China's rising clout spotlighted at finance chief meetings before G7 summit
▼ + stars: | 2023-05-15 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

China is among the biggest markets for most G7 countries, particularly for export-reliant economies such as Japan and Germany. In a joint statement on Saturday, the G7 finance chiefs stressed the urgency of addressing debt vulnerabilities in low- and middle-income countries, mentioning Zambia, Ethiopia, Ghana and Sri Lanka. "There were talks about coercion" at the G7 finance leaders' meeting, the Japanese finance ministry official said. The G7 summit will most likely have a special session on China to debate Beijing's "economic coercion" against other countries, according to a Reuters report. "No matter how the G7 want to fence in the Global South, it's not easy," said Atsushi Takeda, chief economist at the Itochu Economic Research Institute.

While the communique made no mention of the U.S. debt ceiling stalemate, it figured constantly in discussions. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook," they added in the communique after the meeting. G7 central bank chiefs vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. CHINA AND SUPPLY CHAINSSeeking to reassure investors after recent U.S. bank failures, the G7 finance chiefs retained an April assessment that the global financial system was "resilient". In the communique, the finance leaders set a year-end deadline for launching a new scheme to diversify global supply chains.

☆ Exclusive: G7 summit statement to target China's 'economic coercion'
▼ + stars: | 2023-05-13 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +5 min

The main G7 statement is set to include "a section specific to China" with a list of concerns that include "economic coercion and other behavior that we have seen specifically from the [People's Republic of China]," the official said on Friday. A separate "economic security statement will speak more to tools" used to counter coercive efforts from any countries responsible, including planning and coordination, the person said. The joint statement issued by all the G7 leaders every year is intended to signal that the powerful countries are aligned on a range of political and economic issues. CHINA TESTS G7 ALLIANCEThe G7 meeting will be a test of how much the members, all rich democracies, can agree on a common approach to China, the world's second largest economy. Traveling for the G7 finance meeting in Japan, U.S. Treasury Secretary Janet Yellen said on Thursday that China had clearly used economic coercion with Australia and Lithuania.

☆ Russia's war on Ukraine latest: Ukraine's Zelenskiy meets the pope
▼ + stars: | 2023-05-13 | by ( ) www.reuters.com time to read: +4 min

The Ukrainian leader, on a visit to Rome, also met Italy's leaders, who promised full military and financial backing for Ukraine and reiterated support for its EU membership bid. * South Africa's presidential security advisor said on Saturday the country was "actively non-aligned" in Russia's war against Ukraine, after U.S. allegations that it had supplied weapons to Moscow led to a diplomatic crisis this week. * A draft communique from a meeting of Group of Seven finance chiefs reiterated the group's condemnation of Russia's "illegal, unjustifiable, and unprovoked war of aggression" against Ukraine. INSIDE RUSSIA* The head of Russia's federal crime agency suggested on Saturday that key sectors of the economy should be returned to state ownership to support Moscow's war in Ukraine. * Police in the Russian city of St. Petersburg said on Friday they have created an anti-drone unit to detect unmanned aerial vehicles following a purported drone attack on the Kremlin this month.

☆ G-7 finance chiefs warn of global uncertainty as US debt crisis looms
▼ + stars: | 2023-05-13 | by ( ) www.cnbc.com time to read: +2 min

Janet Yellen, US Treasury secretary, right, and Jeremy Hunt, UK finance minister, left, during a bilateral meeting on the sidelines of the Group of Seven (G-7) finance ministers and central bank governors meeting in Niigata, Japan, on Saturday, May 13, 2023. Finance leaders of the Group of Seven (G-7) rich nations warned of heightening global economic uncertainty on Saturday as they wrapped up a three-day meeting overshadowed by a U.S. debt ceiling stalemate and fallout from Russia's invasion of Ukraine. G-7 central bank chiefs also vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook." Japanese Finance Minister Shunichi Suzuki told a press conference after chairing the meeting that the debt ceiling showdown was discussed at Thursday's dinner session on the global economy.

☆ G7 to vow diversifying of supply chains, filling bank regulatory gaps -draft
▼ + stars: | 2023-05-12 | by ( ) www.reuters.com time to read: +4 min

In the draft communique, the G7 central banks said they remained "strongly committed" to achieving price stability and ensuring inflation expectations stayed well-anchored. "Diversification of supply chains can contribute to safeguarding energy security and help us to maintain macroeconomic stability," the draft communique said. But it said G7 countries will work to ensure foreign investment in critical infrastructure "does not undermine the economic sovereignty of host countries." On banking-system woes, the draft communique said the financial system was resilient due to regulatory reforms implemented after the 2008 global financial crisis. "We will address data, supervisory, and regulatory gaps in the banking system," the draft communique said.

"Responding to such changes have become a common challenge for countries across the world, including Japan," he said, adding that the topic will be among many issues to be discussed at this week's G7 meeting. "We're watching the situation with a strong sense of alarm, as markets and economies are globally intertwined," he said, adding that Japan's banking system was stable as a whole. Japan would aim to issue a G7 joint communique after the finance leaders' meeting, which may stress the need for authorities to remain vigilant to banking-sector woes, two government sources with direct knowledge of the matter said. The Nikkei newspaper reported on Tuesday the G7 finance leaders will discuss setting up individual emergency plans in case they face digital bank runs. U.S. Treasury Secretary Janet Yellen, who will travel to Japan, will tell her G7 counterparts that the U.S. banking system remains sound, a senior Treasury official said on Friday.

☆ The dollar's bad run will continue as the Fed gears up to pause its rate-hiking campaign, UBS says
▼ + stars: | 2023-05-05 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The dollar's weakening trend that started in late September is likely to continue, according to UBS. The prospect of Federal Reserve halting interest-rate increases will likely weigh on the greenback, strategists said. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Its miserable run will likely continue as the Federal Reserve looks set to halt its interest-rate increases and given the risk of a banking crisis, according to UBS. UBS warned that a slowdown in US economic growth is also likely to weigh on the buck.

☆ Exclusive: India, China propose 'multiple pathways' on cutting use of fossil fuels-sources
▼ + stars: | 2023-05-02 | by ( Sarita Chaganti Singh | ) www.reuters.com time to read: +4 min

Multiple pathways for energy transition would enable countries to choose resources, even coal, while working towards plans on net zero emissions. Officials said it was the first time India used the phrase 'multiple pathways' in global climate negotiations against repeated demands by Western nations to end coal usage. At the G20 meeting last month, India kept the focus on fossil fuels, rather than singling out coal, the third official said. India and China, the world's two most populous countries, have often taken common positions at international climate change negotiations, despite long-standing border disputes. The G20 includes the G7 countries as well as Russia, China, India, Brazil, Australia and Saudi Arabia, among other nations.

TOKYO, April 23 (Reuters) - The Group of Seven (G7) economic powers called on Sunday for the "extension, full implementation and expansion" of a critical deal to export Ukrainian grain through the Black Sea, the group's agriculture ministers said in a communique. Brokered by the United Nations and Turkey, the deal was signed in Istanbul last July, allowing Ukraine to export more than 27 million tonnes of grain from several of its Black Sea ports. In the communique after a two-day meeting in Miyazaki, Japan, the G7 agriculture ministers "recognised the importance" of the deal, saying: "We strongly support the extension, full implementation and expansion of (the Black Sea Grain Initiative) BSGI." G7 members "stand ready" to support recovery and reconstruction of Ukraine, including by providing expertise in de-mining of agricultural land and reconstruction of agricultural infrastructure, the document said. Russian Foreign Minister Sergei Lavrov is scheduled to discuss the Ukraine Black Sea grain export deal with U.N. Secretary-General Antonio Guterres in New York this week.

☆ Russia's Medvedev warns Moscow will scrap grain deal if G7 bans exports
▼ + stars: | 2023-04-23 | by ( ) www.reuters.com time to read: +2 min

April 23 (Reuters) - Former Russian president Dmitry Medvedev said on Sunday that if the G7 moved to ban exports to Russia, Moscow would respond by terminating the Black Sea Grain deal that enables vital exports of grain from Ukraine. The Group of Seven (G7) countries are considering a near-total ban on exports to Russia, Japan's Kyodo news agency reported last week, citing Japanese government sources. Russia has repeatedly threatened to scrap its participation in the grain deal, which is due to expire on May 18. "In such a case, the grain deal - and many other things that they need - will end for them," he added. Moscow has repeatedly rallied against the terms of the Black Sea grain deal - the only significant diplomatic breakthrough of the 14-month conflict in Ukraine.

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