Washington — U.S. officials expect the Group of Seven (G7) wealthy democracies to send a tough new warning next week to smaller Chinese banks to stop assisting Russia in evading Western sanctions, according to two people familiar with the matter.

Leaders gathering at the June 13-15 summit in Italy hosted by Prime Minister Giorgia Meloni are expected to focus heavily during their private meetings on the threat posed by burgeoning Chinese-Russian trade to the fight in Ukraine, and what to do about it.

Those conversations are likely to result in public statements on the issue involving Chinese banks, according to a U.S. official involved in planning the event and another person briefed on the issue.

The United States and its G7 partners — Britain, Canada France, Germany, Italy and Japan — are not expected to take any immediate punitive action against any banks during the summit, such as restricting their access to the SWIFT messaging system or cutting off access to the dollar. Their focus is said to be on smaller institutions, not the largest Chinese banks, one of the people said.

Negotiations were still ongoing about the exact format and content of the warning, according to the people, who declined to be named discussing ongoing diplomatic engagements. The plans to address the topic at the G7 were not previously reported.

The White House did not respond to a request for comment. The U.S. Treasury Department had no immediate comment, but Treasury officials have repeatedly warned financial institutions in Europe and China and elsewhere that they face sanctions for helping Russia skirt Western sanctions.

Daleep Singh, deputy national security adviser for international economics, told the Center for a New American Security this week that he expected G7 leaders to target China’s support for a Russian economy now reoriented around the war.

“Our concern is that China is increasingly the factory of the Russian war machine. You can call it the arsenal of autocracy when you consider Russia’s military ambitions threaten obviously the existence of Ukraine, but increasingly European security, NATO and transatlantic security,” he said.

Singh and other top Biden administration officials say Washington and its partners are prepared to use sanctions and tighter export controls to reduce Russia’s ability to circumvent Western sanctions, including with secondary sanctions that could be used against banks and other financial institutions.

Washington is poised to announce significant new sanctions next week on financial and nonfinancial targets, a source familiar with the plans said.

This year’s G7 summit is also expected to focus on leveraging profits generated by Russian assets frozen in the West for Ukraine’s benefit.

Russia business moves to China’s small banks

Washington has so far been reluctant to implement sanctions on major Chinese banks – long deemed by analysts as a “nuclear” option – because of the huge ripple effects it could inflict on the global economy and U.S.-China relations.

Concern over the possibility of sanctions has already caused China’s big banks to throttle payments for cross-border transactions involving Russians, or pull back from any involvement altogether, Reuters has reported.

That has pushed Chinese companies to small banks on the border and stoked the use of underground financing channels or banned cryptocurrency. Western officials are concerned that some Chinese financial institutions are still facilitating trade in goods with dual civilian and military applications.

Beijing has accused Washington of making baseless claims about what it says are normal trade exchanges with Moscow.

The Biden administration this year began probing which sanctions tools might be available to it to thwart Chinese banks, a U.S. official previously told Reuters, but had no imminent plans to take such steps. In December, President Joe Biden signed an executive order threatening sanctions on financial institutions that help Moscow skirt Western sanctions.

The U.S. has sanctioned smaller Chinese banks in the past, such as the Bank of Kunlun, over various issues, including working with Iranian institutions.

China and Russia have fostered more trade in yuan instead of the dollar in the wake of the Ukraine war, potentially shielding their economies from possible U.S. sanctions.
…

…

WASHINGTON — America’s employers added a strong 272,000 jobs in May, accelerating from April and a sign that companies are still confident enough in the economy to keep hiring despite persistently high interest rates.

Last month’s sizable job gain suggests that the economy is still growing steadily, propelled by consumer spending on travel, entertainment and other services. U.S. airports, for example, reported record traffic over the Memorial Day weekend. A healthy job market typically drives consumer spending, the economy’s principal fuel. Although some recent signs have raised concerns about economic weakness, May’s jobs report should help assuage those fears.

Still, Friday’s report from the government included some signs of a potential slowdown. The unemployment rate, for example, edged up for a second straight month, to a still-low 4%, from 3.9%, ending a 27-month streak of unemployment below 4%. That streak had matched the longest such run since the late 1960s.

President Joe Biden is still likely to point to Friday’s jobs report as a sign of the economy’s robust health under his administration. The presumptive Republican nominee, Donald Trump has focused his criticism of Biden’s economic policies on the surge in inflation, which polls show still weighs heavily in voters’ assessment of the economy.

Hourly paychecks accelerated last month, a welcome gain for workers although one that could contribute to stickier inflation. Hourly wages rose 4.1% from a year ago, faster than the rate of inflation and more quickly than in April. Some companies may raise their prices to offset their higher wage costs.

The Federal Reserve’s inflation fighters would like to see the economy cool a bit as they consider when to begin cutting their benchmark rate. The Fed sharply raised interest rates in 2022 and 2023 after the vigorous recovery from the pandemic recession ignited the worst inflation in 40 years.

Friday’s report will likely underscore Fed officials’ intention to delay any cuts to their benchmark interest rate while they monitor inflation and economic data. Although Chair Jerome Powell has said he expects inflation to continue to ease, he has stressed that the Fed’s policymakers need “greater confidence” that inflation will fall back to their 2% target before they would reduce borrowing costs. Annual inflation has declined to 2.7% by the Fed’s preferred measure, from a peak above 7% in 2022.

“This report is going to complicate the Fed’s job,” said Julia Pollak, chief economist for ZipRecruiter. “No one’s getting those very clear signals that they were hoping for that a rate cut is appropriate in July or September.”

Last month’s hiring occurred broadly across most of the economy. But job growth was particularly robust in health care, which added 84,000 jobs, and restaurants, hotels and entertainment providers, which gained 42,000.

Governments, particularly local governments, added 43,000 positions. Professional and business services, which includes managers, architects and information technology, grew by 33,000.

One potential sign of weakness in the May employment report was a drop in the proportion of Americans who either have a job or are looking for one; it fell from 62.7% to 62.5%. Most of that drop occurred among people 55 and over, many of whom are baby boomers who are retiring.

A surge in immigration in the past three years has boosted the size of the U.S. workforce and has been a key driver of the healthy pace of job growth. (Economists have said it isn’t clear whether the government’s jobs report is picking up all those gains, particularly among unauthorized immigrants.)

When the Fed began aggressively raising rates, most economists had expected the resulting jump in borrowing costs to drive unemployment to painfully high levels and cause a recession. Yet the job market has proved more durable than almost anyone had predicted. Even so, Americans remain generally frustrated by high prices, a continuing source of discontent that could imperil Biden’s reelection bid.

The economy expanded at just a 1.3% annual rate in the first three months of this year, the government said last week, a sharp pullback from the 3.4% pace in last year’s final quarter. Much of the slowdown, though, reflected reduced stockpiling by businesses and other volatile factors, while consumer and business spending made clear that demand remained solid.

In April, though, consumer spending, adjusted for inflation, declined. That raised concern among economists that elevated inflation and interest rates are increasingly pressuring some consumers, particularly younger and lower-income households.

A key reason why the economy is still producing solid net job growth is that layoffs remain at historic lows. Just 1.5 million people lost jobs in April. That’s the lowest monthly figure on record — outside of the peak pandemic period — in data going back 24 years. After struggling to fill jobs for several years, most employers are reluctant to lay off workers.
…

За словами Дениса Шмигаля, міністерства, центральні органи влади, обласні державні адміністрації мають відмовитися від використання кондиціонерів, зовнішнього освітлення
…

За словами Юлії Свириденко, ЄБРР має розглянути можливість фінансово підтримати реалізацію програм перекваліфікації
…