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US President Joe Biden and his Chinese counterpart Xi Jinping have reached an agreement to resume communications between their countries’ militaries at a summit outside San Francisco designed to stabilise relations after several years of rising concern about possible conflict over Taiwan.
At a press conference yesterday following his meeting with Xi, Biden said the two countries had reached a series of agreements, including a commitment from China to reopen the military communication channels that Beijing had shut after then-US House Speaker Nancy Pelosi visited Taiwan in August 2022.
China also agreed in principle to crack down on the export to Mexico of chemicals used to make fentanyl, a synthetic opioid that has sparked a deadly drug epidemic in the US.
The four-hour meeting between Biden and Xi was their second conducted in person as leaders. The two are attempting to steady turbulent US-China relations, which have reached their lowest point since the countries established ties in 1979. Read more about the other agreements made during the summit.
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US-China trade: A Shanghai-based manufacturer has accused the Biden administration of fostering a “xenophobic” environment for Chinese investors that will leave the US at risk of losing out on innovation.
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Climate diplomacy: The US and China agreed to accelerate the rollout of renewable energy to displace their heavy reliance on fossil fuels in a positive “gesture” to co-operate on climate change.
Here’s what else I’m keeping tabs on today:
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Spain: The acting prime minister, Pedro Sánchez, is expected to secure a second term in a parliamentary vote as anger grows over an amnesty deal that has become the price for the Socialist leader to retain power.
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Companies: Burberry, Dole, Liontrust Asset Management and Premier Foods are among the companies reporting. Steve Williams becomes chair of Smiths Group, succeeding Sir George Buckley, who is retiring.
Five more top stories
1. Israeli troops are searching Gaza’s largest hospital in a “targeted” operation to find Hamas weapons and infrastructure, as concern grows for thousands of patients and civilians sheltering at the site. The Israel Defense Forces says al-Shifa hospital sits on top of underground tunnels housing Hamas command centres, with one defence official saying troops had “already found weapons and other terrorist infrastructure”.
2. Nikki Haley’s performance in the Republican presidential debates has intrigued Wall Street movers and shakers, with BlackRock chief Larry Fink attending a low-key breakfast with the candidate and former Goldman Sachs president Gary Cohn hosting a fundraiser this week. Billionaire investor Stanley Druckenmiller announced his support for Haley on Monday. Here’s why big donors are increasingly backing her candidacy.
3. The UK government will increase subsidies available to offshore wind developers by up to two-thirds in an effort to revive new projects in the sector. The decision to raise the amount available in next year’s auction for state contracts comes after developers shunned the last auction, arguing the subsidies on offer were too low for an industry struggling with surging costs.
4. London-based hedge fund Amia Capital has joined NGOs in calling on South Africa’s government to tackle its rising debt burden by using its central bank’s foreign exchange reserve gains. Amia economists said the “unusually large” sum in the bank’s gold and foreign currency account could be transferred to the government to alleviate the debt strain on the nation’s economy.
5. Global investment banks have criticised a blanket ban on short selling imposed by South Korean regulators last week. The ban, which is due to last until June next year, was introduced as a response to so-called naked short selling, but banks have accused authorities of bowing to the demands of local retail investors ahead of elections in April.
The Big Read
The London Stock Exchange Group owns a 300-year-old exchange but makes under 4 per cent of its revenues from listing and trading cash equities. Instead, data and analytics now account for about two-thirds of revenues. The company has gone further than many of its rivals, but across the world stock exchanges are moving away from their traditional businesses and into areas including data, digital assets and mortgages.
We’re also reading . . .
Chart of the day
Where did the currency wars go? Exchange rates were barely, if at all, on the agenda of Joe Biden and Xi Jinping’s meeting yesterday. While this is a lull, the factors that created battles over currency misalignments have not gone away, writes Alan Beattie. China in particular is threatening to return to the mercantilist behaviour that started protracted tensions 20 years ago.
Take a break from the news
Film critic Danny Leigh has his say on Napoleon, Ridley Scott’s epic of military genius and rapid-fire sex starring Joaquin Phoenix.
Additional contributions from Benjamin Wilhelm
