Paris Hosts Summit for a New Global Financing Pact

Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)
Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)
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Paris Hosts Summit for a New Global Financing Pact

Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)
Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)

The summit for a New Global Financing Pact, held in Paris for two days starting on June 22, gathers 50 heads of state and government, along with numerous ministers, high-ranking officials from international organizations, global financial institutions, and civil society organizations.

It is considered one of the largest forums worldwide, second only to the United Nations.

The international summit was launched by French President Emmanuel Macron in 2022.

It represents an expansion of a similar initiative proposed by Mia Mottley, the Prime Minister of the Caribbean island of Barbados, known as the “Bridgetown Initiative.”

The purpose of this initiative was to facilitate access to international financing sources for the countries most affected by climate change, enabling them to confront the environmental challenges faced by nations and islands primarily.

On the sidelines of the G20 Summit, Macron announced the organization of the current summit for a New Global Financing Pact, initially aimed at “exploring all means and methods to enhance international solidarity.”

However, the primary objective later expanded to encompass addressing the consequences of climate change, global crises, and discussing key issues related to the reform of multi-party development banks, debt crisis, poverty, health, innovative financing, international taxation, and Special Drawing Rights (SDRs).

As the gap widens between countries in the North and the South, this summit comes into play.

Its presumed objective is to provide the means to respond to the growing needs of most Southern countries in combating poverty and dealing with climate change, which leads to desertification, migration, wars, and environmental disasters.

The broader goal, which no one expects to be achieved in this summit, is to restructure a more just international financial system instead of the one established by the West following World War II.

According to the French presidency, the summit will examine the “restructuring” of financial institutions born out of “Bretton Woods” in the US, specifically referring to the International Monetary Fund (IMF) and the World Bank.

Saudi Arabia’s Crown Prince Mohammed bin Salman will participate in the summit. The presidents of Egypt, Tunisia, and Mauritania are also attending the summit.

Other Arab countries are represented at the ministerial level or through their diplomatic missions in Paris.

Among the notable attendees are the Secretary-General of the UN and the Presidents of Switzerland, South Korea, South Africa, Brazil, and several African countries.

Also present are the Prime Minister of China, the German Chancellor, the Italian Prime Minister, the President of the EU, and the President of the European Commission.

The US is represented by Treasury Secretary Janet Yellen. Notably absent from the summit is Russia, which was not invited to participate.



Oil Extends Climb on Supply Fears, Trade War Concerns Cap Gains

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Extends Climb on Supply Fears, Trade War Concerns Cap Gains

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices inched higher on Tuesday after threats by US President Donald Trump to impose secondary tariffs on Russian crude and attack Iran, though worries about the impact of a trade war on global growth capped gains.

Brent futures rose 21 cents, or 0.3%, to $74.98 a barrel at 0645 GMT, while US West Texas Intermediate crude futures climbed 22 cents, or 0.3%, to $71.70.

The contracts settled at five-week highs a day earlier.

"Near-term risks are skewed to the upside, with US threats of secondary tariffs on Russian and Iranian oil leading market participants to price for the risks of tighter oil supplies," said Yeap Jun Rong, market strategist at IG, Reuters reported.

However, broader themes still revolve around concerns of upcoming tariffs weighing on global demand, along with prospects of increased supply from OPEC+ and the US, said Yeap.

A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.

Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump's threats.

After news of Trump's threats initially boosted prices on Monday, traders told Reuters they viewed the president's warnings to Russia, at least, as a bluff.

Trump, on Sunday, told NBC News that he was very angry with Russian President Vladimir Putin and would impose secondary tariffs of 25% to 50% on Russian oil buyers if Moscow tries to block efforts to end the war in Ukraine.

Tariffs on buyers of oil from Russia, the world's second largest oil exporter, would disrupt global supply and hurt Moscow's biggest customers, China and India.

Trump also threatened Iran with similar tariffs and bombings if Tehran did not reach an agreement with the White House over its nuclear program.

"For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries," said ING commodities strategists on Tuesday.

The market will be watching for weekly inventory data from US industry group the American Petroleum Institute later on Tuesday, ahead of official statistics from the Energy Information Administration on Wednesday.

Five analysts surveyed by Reuters estimated on average that US crude inventories fell by about 2.1 million barrels in the week to March 28.