Latest news for 19 May 2025

JAPAN

GDP falls beyond expectations.

Japan’s economy contracted 0.7% for Q1 (yoy), much steeper than the 0.2% most expected. Why? A big fall in consumption and particularly exports, Japan’s two economic engines. With US tariffs due to hit in July, things might get worse. (DW)

Comment: We always knew Prime Minister Ishiba had a way with words, but we were still struck when he told parliament earlier today (Monday) that Japan’s finances are worse than Greece’s. Meanwhile, Japan’s longer-dated bond yields (30 and 40-year) have spiked, suggesting growing market sensitivity to Japan’s fiscal challenges.

EUROPEAN UNION

UK and EU reach post-Brexit fisheries and agri deal.

Under the new deal clinched overnight, the UK will open up its waters to EU fishing for 12 years, while the EU pledges to slash red tape for British farming and fisheries exports. The news broke just as the UK and EU are expected to sign a security and defence partnership. (Standard)

Comment: This deal resolves an international irritant for the UK, but might fuel a domestic one for Prime Minister Starmer, given the UK’s more conservative voices have long preferred shorter fishery deals to maintain more UK control.

UNITED STATES

Well wishes pour in after Joe Biden’s cancer diagnosis.

Political leaders across party and international lines are wishing the former US president well after his office announced Biden is fighting a “more aggressive form” of prostate cancer, which has now spread to his bones. (CNN)

ROMANIA

Pro-EU mayor wins presidency.

After months of electoral chaos, Bucharest mayor Nicușor Dan has emerged the winner with a nearly 10-point win over the ultra-nationalist Eurosceptic who won the first round. (POLITICO)

Comment: Sure, there’s jubilation in the streets, but 46% of voters still voted for a Kremlin-friendly outsider, revealing real discontent with the establishment. Fun fact — the president-elect (himself an anti-establishment centrist) has twice won gold at the International Math Olympiad.

PAKISTAN

Foreign minister heads to China for talks on India.

Pakistan’s foreign minister (Ishaq Dar) has landed in China for talks about India with his counterpart Wang Yi, a week after China-backed Pakistan reached a ceasefire with their long-time shared rival. (The Straits Times)

MEXICO

Sheinbaum urges against politicising Brooklyn Bridge collision.

Pledging cooperation with investigators and urging against politicisation, Mexico’s president has offered sympathies for the two sailors killed after a Mexican navy ship hit New York’s Brooklyn Bridge yesterday (several remain in critical condition). (NYT)

TANZANIA

Authorities deport Kenya’s ex-justice minister.

Tanzania has deported Kenya’s respected former justice minister (Martha Karua) — she reportedly landed in town to attend the trial of Tanzania’s opposition leader over treason charges seen by many as politically motivated. (BBC)