Latest news for 7 May 2025

GERMANY

Merz elected Chancellor after initial shock loss.

Hours after a routine parliamentary vote stunned the world by robbing conservative leader Friedrich Merz of Germany’s leadership, the Bundestag ended up electing him Chancellor in a second round. (Euractiv)

Comment: Not great optics for Merz, suggesting there’s still dissent in the ranks just as he pledges to drive a new era of stability and strength for Germany and Europe.

CANADA

Trump and Carney play it cool in first meeting.

After months of fiery rhetoric and tariffs between these two neighbours, trade partners, and allies, the first meeting between Trump and Canada’s newly-elected prime minister was actually pretty cordial. (BBC)

Comment: Mark Carney is formidable — we remember his star power at G20 summits back in his central banker days. It’s interesting to now see his Trump strategy in action, blending flattery (calling him transformational), business (pitching Canada as America’s top client), and firmness (pushing back on the 51st state idea, though Trump still said “never say never”).

UNITED KINGDOM

London and Delhi mint trade deal.

After three years of negotiations, the UK and India have now agreed a trade pact, slashing Indian tariffs on UK products in return for eased tax conditions on Indian expats in the UK. (Guardian)

Comment: India is a massive and fast-growing market, but also a notoriously tough sparring partner. So this deal is a win for British exporters, but also for India, which often uses market access as leverage to get better conditions for its diaspora abroad: partly for economic reasons ($120B in remittances each year); and partly for demographic reasons (opportunities for its 10 million college graduates each year).

KYRGYZSTAN

Bishkek recruits Binance founder as crypto advisor.

Changpeng Zhao, the Binance founder who resigned after pleading guilty to US money laundering charges, is now advising the Kyrgyz government on its efforts to start a crypto reserve and streamline bureaucracy via blockchain. (Eurasianet)

Comment: Since his release from prison last year, Zhao has already advised others like Pakistan, Malaysia, and the UAE, who’ll have seen him as guilty of regulatory missteps rather than outright fraud. He remains popular in crypto communities, so hiring him is probably a cost-effective way to make a splash in a cut-throat sector.

UNITED STATES

US, China trade officials to meet in Switzerland.

US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will now meet China’s top economic official (Vice-Premier He Lifeng) in Switzerland this weekend, though Bessent is saying it’s about de-escalation rather than a big trade deal. (SCMP $)

Comment: After weeks of conflicting claims, we finally have confirmation that US-China talks are even starting. As to when they might deliver an off-ramp? Both sides are signalling they have the upper hand — that’s partly a negotiation strategy, but also partly because neither side has felt the full impact of this trade halt yet.

VENEZUELA

US helps five opposition members flee.

The US secretary of state has announced that DC helped five opposition figures flee to US soil, after spending months hiding at Argentina’s embassy in Caracas. (X)

ISRAEL

Israeli spyware maker to pay Meta $170M in damages.

A US jury has ordered Israel’s NSO Group to pay WhatsApp damages over a 2019 hacking spree using NSO spyware. WhatsApp says it’s a vote of confidence in the app’s security, while NSO hasn’t ruled out appealing. (TechCrunch)