Economy
US-China to resume trade talks on export controls for 2nd day
Top U.S. and Chinese officials will restart trade talks for a second day in London on Tuesday, aiming to secure a breakthrough over export controls for rare earths and other goods that have threatened a new rupture between the two superpowers.
Investors are hoping for an improvement in ties after the relief sparked by a preliminary deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports which are critical to sectors including autos, aerospace, semiconductors and defense.
White House economic adviser Kevin Hassett said on Monday that the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths.
U.S. President Donald Trump said the talks were going well: “We’re doing well with China. China’s not easy.”
Trump’s often erratic policymaking on tariffs has roiled global markets, sparked congestion and confusion in major ports and cost companies tens of billions of dollars in lost sales and higher costs.
The second round of U.S.-China talks, which followed a rare phone call between Trump and Chinese President Xi Jinping last week, comes at a crucial time for both economies.
Customs data published on Monday showed that China’s exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID-19 pandemic.
While the impact on U.S. inflation and the jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure.
Discussing disagreements
The two sides, led at the talks by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, with the Chinese contingent helmed by Vice Premier He Lifeng, are meeting at the ornate Lancaster House in the British capital.
The talks ran for almost seven hours on Monday and are set to resume after 9:00 a.m. GMT on Tuesday, with both sides expected to issue updates later in the day.
The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. He did not attend the Geneva talks, when the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other.
China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains and sparked alarm in boardrooms and factory floors around the world.
Kelly Ann Shaw, a former White House trade adviser during Trump’s first term and now a trade partner at the Akin Gump law firm in Washington, said she expected China to reaffirm its commitment to lift retaliatory measures, including export restrictions, “plus some concessions on the U.S. side, with respect to export controls measures over the past week or two.”
But Shaw said she expected the U.S. only to agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips.
In May, the U.S. ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued.
U.S. President Donald Trump on Wednesday threatened to fire Federal Reserve Chair Jerome Powell if he stays beyond his mandate.
Powell’s term at the helm of the Fed expires on May 15, although he can remain in his role as chairman if no successor has been confirmed.
The central banker said last month that he would not leave his post as a Fed governor until a Justice Department investigation involving him is “well and truly over, with transparency and finality.”
It is rare for a former Fed chair to remain on its board after stepping down as chief. Powell’s Fed governor term ends in 2028.
“I’ll have to fire him,” Trump told Fox Business, if Powell “is not leaving on time.”
The president added: “I’ve wanted to fire him.”
Trump has repeatedly lashed out at Powell over the past year for not cutting interest rates more aggressively.
The Trump administration has taken aim at the independent Fed on several levels, initiating an investigation into Powell over renovation cost overruns at the bank and seeking to oust another Fed governor, Lisa Cook.
On whether he would drop the Department of Justice probe involving Powell, Trump said: “I’m not playing. I have to find out.”
Trump has named former central banker Kevin Warsh to succeed Powell, but he must be confirmed by the U.S. Senate before taking up the role.
Warsh has a confirmation hearing before the Senate Banking Committee next Tuesday.
But he faces an uphill battle with some lawmakers criticizing the DOJ probe as political pressure on the central bank.
Senator Thom Tillis, a member of Trump’s Republican party who sits on the Senate Banking Committee, has vowed to hold up the nomination as long as the investigation remains unresolved.
Rational motive?
However, U.S. Treasury Secretary Scott Bessent told reporters Wednesday that Republicans on the committee “are aligned” in believing that Warsh is a good candidate.
“I am very optimistic that Kevin Warsh will be the chair of the Fed on time,” he said at a press briefing.
Bessent told a CNBC event earlier Wednesday that he hopes “everyone will work to have (Warsh) there on May 16.”
On the impasse, Trump’s top economic adviser Kevin Hassett told an Axios event: “They’ll work something out.”
“I have high confidence that that will happen,” he said on the sidelines of the IMF and World Bank’s spring meetings in Washington.
“It’s very hard to figure out what rational motive President Trump can have for prolonging this investigation of Jay Powell if it’s going to delay the confirmation of Kevin Warsh,” said David Wessel, a senior fellow at Washington think tank the Brookings Institution.
Wessel added that if Trump got U.S. Attorney Jeanine Pirro “to back off,” which observers believe he has the power to do, that would clear the way for Powell’s departure and Warsh’s confirmation.
Powell first took the helm of the Fed during Trump’s first presidency in 2018, and was reappointed to the position under Democrat Joe Biden in 2022.
Türkiye eyes advancing its economic cooperation with Kazakhstan in all areas, Vice President Cevdet Yılmaz said on Wednesday during the visit to Astana, where he attended several high-level meetings and business talks.
“Kazakhstan’s growth last year was roughly double that of the global growth. While the world grew by about 3%, Kazakhstan grew by 6.5%. Hopefully, with these growth rates, Kazakhstan will rise to a much different position in the world. We will develop our cooperation with Kazakhstan in every field,” he said during a roundtable meeting also attended by Kazakh Prime Minister Oljas Bektenov.
Speaking here, Yılmaz underscored that relations between Türkiye and Kazakhstan are based on a multifaceted foundation of brotherhood, nourished by deep historical ties and a shared civilizational memory.
He also suggested that despite all the geopolitical tensions and the circle of fire in the region encountered in recent years, Türkiye continues on its path of being “an island of stability and a safe haven.”
Referring to the growth of the Turkish economy, he also touched upon the investment potential, calling on both sides and the private sector to evaluate further investment opportunities to excel in trade.
“There are over $2 billion in investments from Kazakhstan to Türkiye, and nearly a thousand Kazakh companies have invested in Türkiye. We need to further increase the number, quantity, and quality of these investments so that the infrastructure of our trade is strengthened,” he said, according to remarks published by Anadolu Agency (AA).
“The more these investments increase, the healthier and stronger our trade will be. In this sense, we invite mutual investment. We invite the Turkish business world to invest more in Kazakhstan, and the Kazakh business world to invest more in Türkiye. We wholeheartedly believe that we will all benefit,” he added.
Moreover, while in Astana, Yılmaz held a one-on-one meeting with Bektenov and inter-delegation meetings.
After the meetings, under the chairpersonship of Yılmaz and Bektenov, the 14th Session of the Kazakhstan-Türkiye Joint Economic Commission (KEK) Inter-Delegation Meeting was held.
Following the meeting, the 14th Session KEK Protocol and a 67-item action plan were signed.
“To further consolidate this strategic partnership, we will hold the 6th Meeting of the High-Level Strategic Cooperation Council in May,” Yılmaz noted.
Advancing cooperation
He also expressed that bilateral relations have “evolved beyond sympathy and have turned into a multidimensional cooperation architecture in areas such as trade, investment, transportation, energy, contracting, industry, agriculture, logistics and finance.”
Here, too, he highlighted the belief that two respective “growing economies need to cooperate more.”
“Our foreign trade reached $10 billion last year, renewing a record. Our goal is to achieve the $15 billion trade volume set by our presidents. At this point, accelerating customs and logistics processes is one of our top priorities. In addition, increasing our mutual investments is extremely important,” he suggested.
Among others, he also pointed to the appeal in the finance sector and said that the Istanbul Financial Center (IFC), established on the way to making Türkiye first a regional and then a global financial center and opened in 2023, stands out with its strong legal infrastructure and tax advantages.
“Taking into account the recent developments in our region, we are working on new initiatives during this period. In the upcoming period, we will take steps to make Türkiye a much more attractive country in terms of finance. We aim to make Istanbul a stronger financial center,” he said.
Middle Corridor ‘mandatory choice’
Also, evaluating the work of the Turkish contractors abroad, Yılmaz mentioned the disruptions in supply chains and described the Middle Corridor route as “a mandatory choice.”
“The Northern Corridor has become unpredictable due to geopolitical tensions. The southern route is pushing the limits of its capacity. This situation has made the Middle Corridor not an alternative but a mandatory choice, with Türkiye and Kazakhstan at the center of this route,” he said.
The Middle Corridor is a long route stretching from China toward Europe via roads and railways, bypassing the conflict-ridden areas.
“In this sense, the Middle Corridor is a line that will carry not only the load of two countries but also of all Eurasia, and the stronger this line is, the more permanent the jointly built prosperity on this line will be,” according to Yılmaz.
The vice president also highlighted the potential in the energy sector, as well as strong education and cultural ties between the two countries.
BBC plans to cut around 2,000 jobs as part of efforts to reduce costs by 10% over the next three years, with staff informed of the move during a company-wide call on Wednesday, according to sources.
The cuts, which mark the biggest round of BBC job cuts in almost 15 years, are being set in motion as former Google boss Matt Brittin prepares to take over as director-general next month.
The Corporation also recently revealed plans to drastically reduce the team behind the coverage of national occasions, such as royal events and State funerals, to one member of staff and freelancers.
In February, the BBC revealed it would reduce its spending by hundreds of millions of pounds in the next three years as it continues to face “substantial financial pressures.”
At the time, the corporation said it hoped to make savings of about 10% of its costs by 2029, but no detail was given about what services may be affected.
It was also revealed in January 2025 that the BBC World Service was to axe 130 jobs as it looked to save about £6 million for the next financial year.
Predominantly funded through the annual £174.50 ($237) licence fee, paid by U.K. TV-watching households, the BBC has faced pressure over its value for money as it faces competition from streaming giants like Netflix and Disney+.
Outgoing BBC director-general Tim Davie stepped down from his post on April 2, having announced his resignation in November, following a turbulent few years for the broadcaster.
Interim director-general Rhodri Talfan Davies, who is believed to have led the all-staff meeting, will head the corporation until Brittin takes over on May 18.
Saudi Arabia will extend $3 billion in additional support for Pakistan to help the South Asian nation and its ally bridge a multi-billion-dollar gap in its finances linked to an upcoming debt repayment to the United Arab Emirates (UAE).
The extra funding for Pakistan comes on top of Riyadh extending the rollover arrangement for an additional $5 billion deposit for a longer period, Pakistan Finance Minister Muhammad Aurangzeb told reporters in Washington.
The move underlines a deepening relationship between Riyadh and Islamabad, cemented last year by a mutual defense pact treating aggression against either as an attack on both.
“We can confirm that Saudi Arabia has agreed to a $3 billion deposit with Pakistan to support their balance of payments,” a Saudi Ministry of Finance spokesperson told Reuters.
Pakistan faces a $3.5 billion repayment to the UAE this month that has put a strain on its foreign exchange reserves, which stood at about $16.4 billion as of March 27.
The repayment to the UAE amounts to roughly 18% of those holdings.
Under Pakistan’s $7 billion International Monetary Fund (IMF) program, the country is targeting foreign exchange reserves of more than $18 billion by June.
Saudi Finance Minister Mohammed Al-Jadaan was in Pakistan on Friday in what one source familiar with the matter described as a show of economic support, without providing further details.
“Senator Aurangzeb said this support comes at a critical time for Pakistan’s external financing needs and would help reinforce foreign exchange reserves and strengthen the country’s external account,” the finance ministry said in a statement.
The ministry added that Pakistan is committed to maintaining foreign exchange reserves “in line with its obligations to markets and under the IMF-supported program.”
Pakistan’s international bonds rallied on the news, with longer-dated maturities adding nearly 1 cent to trade at their strongest level since late February.
Asked on Monday whether a Saudi loan was on the table to replace the UAE facility, Pakistani Finance Minister Muhammad Aurangzeb said “all options are on the table,” including Eurobonds, loans and commercial debt.
Saudi Arabia has repeatedly stepped in to support Pakistan during periods of economic stress. In 2018, Riyadh unveiled a $6 billion package that included a $3 billion deposit at Pakistan’s central bank and $3 billion in oil supplies on deferred payment.
Pakistan, meanwhile, has emerged as the key mediator between the U.S. and Iran to end the war in the Middle East while also shoring up Saudi Arabia’s defenses after the Gulf kingdom came under hundreds of Iranian missile and drone attacks.
Last week, Pakistan deployed fighter jets and support aircraft to Saudi Arabia after Iranian strikes on key Saudi energy infrastructure.
Türkiye on Tuesday signed a financing agreement with the World Bank worth 1.67 billion euros (about $1.97 billion) for the long-awaited railway project that will cross over the Bosporus.
The deal was signed by Treasury and Finance Minister Mehmet Şimşek in Washington, where he is attending the spring meetings of the International Monetary Fund (IMF) and the World Bank.
Known as the Istanbul North Rail Crossing Project (INRAIL), the investment that is estimated to top $8 billion is expected to create a new high-capacity rail line to strengthen freight and passenger connections between Asia and Europe.
The planned double-track electrified line stretching roughly 126 kilometers (78.29 miles) will link the metropolis’ two airports by crossing over the Yavuz Sultan Selim suspension bridge, one of the longest and widest of its kind in the world. It is also known as the third bridge to span the Bosporus
Speaking at the signing ceremony, Şimşek said global energy security and trade corridors are under strain due to conflicts, fragmentation and years of underinvestment, underscoring the need for coordinated international responses.
He highlighted the importance of the so-called Middle Corridor, describing it as the fastest route between Beijing and London, with a transit time of around 18 days.
Şimşek said infrastructure has been a cornerstone of Türkiye’s development strategy, noting that the country has invested $355 billion in transport infrastructure over the past two decades, including $180 billion in highways and a major expansion of its airport network.
‘Signal of confidence’
The partnership with World Bank “provides financing, strengthens standards and sends a signal of confidence to global markets,” Şimşek said, describing the project as more than a conventional infrastructure investment.
The Istanbul North Rail Crossing Project is designed to address one of the most constrained transit points along the Middle Corridor by offering a high-capacity rail alternative across the Bosporus.
It is expected to significantly boost the corridor’s reliability and strategic importance for global trade, Şimşek noted.
The project is aimed at easing passenger and freight traffic on the Marmaray line while directly connecting Istanbul Airport and Sabiha Gökçen Airport by rail for the first time.
Marmaray is the world’s first underwater rail link between two continents. Opened in 2013, it carries subway commuters and serves freight trains.
‘Transformational leap’
According to Şimşek, the project will increase annual rail freight capacity across the Bosporus from 3 million tons to 50 million tons, marking what he called a “transformational leap” and contributing to the development of carbon-neutral freight infrastructure for intercontinental transport.
With a total estimated cost of $8.1 billion, around 83% of the project’s financing will come from international financial institutions, he added.
“This is the third-largest project ever approved in the entire history of the World Bank. This fact alone demonstrates the scale of our ambition and the confidence our partners have in Türkiye’s capacity to bring the project to fruition,” Şimşek said.
He added that the project is expected to generate more than 400,000 higher-income jobs, emphasizing that infrastructure investments not only facilitate trade but also create livelihoods.
Anna Bjerde, the World Bank’s managing director of operations, said the project would deliver lasting benefits for Türkiye’s transport system and economic growth.
She described its impact as “transformational,” noting that it would relieve one of the country’s most critical transport bottlenecks by increasing rail capacity along the Bosporus.
Bjerde said the project would strengthen connectivity across three strategic corridors, namely the Middle Corridor, the Development Road and the Türkiye-Europe Corridor, making crossings faster, more reliable and more efficient.
“This is significant not only for Türkiye but also for regional and international trade.”
Bjerde said the project is expected to attract around $6.75 billion in international financing.
Türkiye is continuing efforts to evacuate eight of its vessels from the Strait of Hormuz, Transport and Infrastructure Minister Abdulkadir Uraloğlu said on Wednesday.
Speaking to reporters at Parliament, Uraloğlu said Türkiye had initially had 15 ships in the strategic waterway before it was effectively shut after the U.S. and Israel launched strikes on Iran in late February.
Three of the Turkish-owned ships have already been safely withdrawn, the minister said.
Of the remaining 12 vessels, four are not seeking evacuation as they continue operations in the area, he noted. Two of these are power-generating ships, while the other two are engaged in ship-to-ship cargo transfer activities.
“The remaining eight ships are being handled under the coordination of our Foreign Ministry. We hope to remove them in the coming days,” Uraloğlu said.
The war shut in about 20% of global oil and liquefied natural gas shipments that usually transited through the waterway before the conflict.
Shipping remained constrained despite a two-week cease-fire between the U.S. and Iran. As of Monday, the U.S. has also enacted a blockade of shipping leaving Iranian ports.
BREAKING NEWS I Presidential High Advisory Board has ended! Written statement from Director of Communications Duran: “Terror-free Türkiye and emphasis on ceasefire”
Trump threatens to sack Powell if he doesn’t quit Fed board
Statement from Minister Tekin regarding the armed attacks: “All necessary steps will be taken with care and attention”
BREAKING NEWS I Presidential High Advisory Board has ended! Written statement from Director of Communications Duran: “Terror-free Türkiye and emphasis on ceasefire”
Trump threatens to sack Powell if he doesn’t quit Fed board
Statement from Minister Tekin regarding the armed attacks: “All necessary steps will be taken with care and attention”
-
Daily Agenda3 days agoOne heart against the genocide network
-
Economy7 hours agoTürkiye working to evacuate remaining ships from Strait of Hormuz
-
Daily Agenda17 hours agoWorld Peace Council should be established – Last Minute News
-
Daily Agenda3 days agoMorning prayer meetings for Palestine in 81 provinces
-
Daily Agenda3 days agoWeekend shift for ‘ATM teller’ – Last Minute News
-
Economy2 days agoTürkiye’s current account balance sees $7.5B deficit in February
-
Daily Agenda24 hours agoEntertech Maslak Go and Startgate TEKMER were opened with a ceremony
-
Politics23 hours agoTurkish court hands down suspended sentence to former CHP chair