President Trump will attend the G7 leaders' meeting in France in June to talk artificial intelligence, trade and crime-fighting, a White House official told Axios.
Why it matters: It's customary for U.S. leaders to attend the annual summits, but Trump's attendance was not a sure thing due to his increasing anger with G7 members like the U.K., France, Germany and Italy for not aligning with his war effort in Iran.
President Trump convened a meeting on Iran with his top national security team on Monday evening that included a briefing on military options, two U.S. officials told Axios.
Leading finance ministers and central bankers concluded a two-day summit in Paris on Tuesday, and the kinds of global strains that former top International Monetary Fund official Gita Gopinath described on Monday were top of mind.
Driving the news: In a communiqué, G7 finance leaders jointly said they would aim for policies "promoting balanced growth and macroeconomic stability" in their respective nations.
"Countries with large and persistent external deficits should undertake policies that include supporting domestic savings and fiscal consolidation."
State of play: That language is pretty much boilerplate. But it takes on additional meaning at a moment when the bond market is growing skittish amid surging inflation and massive public borrowing.
The Japanese 30-year yield, for example, rose to a multidecade high of 4.17% on Tuesday, from 3.72% as recently as May 7. One factor: The Japanese prime minister announced fiscal measures to try to bolster the country's economy amid the energy shock caused by the Iran war.
Similarly, yields on longer-term U.K. gilts have surged amid uncertainty about the future of Prime Minister Keir Starmer's government and what fiscal direction may follow if it falls.
Between the lines: Throughout the 2010s, finance ministers in rich countries enjoyed a free lunch, with inflation persistently low and demand for safe assets seemingly insatiable.
Now, they are facing a world where one supply disruption after another is keeping inflation elevated, and bond investors are wary of political risk in a time of already massive public debts.
What they're saying: "The way the global economy has been developing for the past 10 years or so is clearly unsustainable," French finance minister Roland Lescure told reporters, per Reuters.
"We are no longer in a period where public debt is not a subject," he said.
The global economyfaces the types of massive imbalances that preceded previous crises — despite important differences — and it's not yet clear how this debt cycle will end.
Why it matters: The last four decades of economic turbulence trace back to a similar underlying issue, that the world's biggest economies are chronically out of sync, former top International Monetary Fund official Gita Gopinath argued in a buzzy speech Monday evening.
Bloomberg Media on Tuesday said it would bring its flagship New Economy Forum event to India for the first time this October, as part of a broader push into the region.
Why it matters: It wants to get ahead of the region's critical tech and business growth story while also exploring more business and expansion opportunities.
President Trump said Monday that he'd planned to strike Iran "tomorrow" but was holding off to give negotiations another chance. He claimed he made the decision at the request of several Arab leaders.
Why it matters: The White House saw an updated peace proposal Iran sent Sunday as insufficient, leading to a growing expectation — including inside the White House — that Trump was about to strike.
Iran has given an updated proposal for a deal to end the war, but the White House believes it isn't a meaningful improvement and is insufficient, a senior U.S. official and a source briefed on the issue told Axios.
Why it matters: U.S. officials say President Trump wants a deal to end the war but is considering resuming it due to Iran's rejection of many of his demands and refusal to make meaningful concessions on its nuclear program.
LIV Golf is better known for its financial banking than for its product, but now is asking investors for a chance to flip the script.
Driving the news: Axios has learned that the league, which recently lost the support of Saudi Arabia's Public Investment Fund, will seek to raise up to $250 million from new investors.
Government bond yields around the world, including in the U.S., are hitting multi-decade highs as investors price in higher for longer inflation due to the Iran war.
Why it matters: The interest rates, or yields, that governments pay on their debt can drive the global economy — when rates are low, countries can spend more freely and drive economic growth.
