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President Michel looks to capital markets to solve economic woes

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President Michel looks to capital markets to solve economic woes

A summit next week could look at alternatives to bank finance in a bid to boost Europe’s fortunes – but previous attempts haven’t met with much success.

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A summit of EU leaders meeting next week will likely agree “ambitious” measures to boost non-bank financing, its President Charles Michel has told reporters.

Europe is looking to improve its fortunes as it faces up to war, costly climate change policies and economic competition – and hopes integrating its capital markets could help.

“There is in my opinion a way, based on common sense, to mobilise a lot of money to fuel the European economy,” European Council President Michel told Euronews as part of a group interview. “This is by making possible and easier for companies to mobilise many of the Europeans’ €9 trillion of savings.”

EU leaders will be searching for ways to pay for the soaring costs of defence after the Russian invasion of Ukraine, of adapting to a zero-carbon world, and of responding to trade-distorting measures such as the United States’ Inflation Reduction Act.

Funding options such as eurobonds or expanding the capital of the European Investment Bank will prove politically tricky, Michel acknowledges; frugal governments generally worry joint sovereign debt could encourage profligacy among the less disciplined.

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Michel may see regulatory measures to integrate national stock markets and harmonise insolvency law as politically more straightforward – but that project, known as a capital markets union, has problems of its own.

European policymakers have long bemoaned how dependent domestic their companies are on bank financing, while US counterparts enjoy alternatives such as stock issuance.

In a speech last November, European Central Bank chief Chrisine Lagarde called for a “Kantian shift” in thinking, pointing out that, compared to the US, EU bond markets are three times smaller, and venture capital just one fifth of the size.

That means that EU companies often have to flee the bloc to places like Silicon Valley to find the funding they need to grow.

Yet national ministers have previously gutted plans to create a euro-supervisor on the lines of the US Securities and Exchange Commission, and harmonising tax rules or property law is complex and controversial.

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Even more modest plans to offer EU-wide pensions or smooth over stock-market listing rules haven’t met with huge success either, though national leaders pushed for more integration as long ago as 2014.

“I regret it wasn’t possible to make significant progress in this field earlier,” Michel said. “I’m confident that now it can be different … the draft we have on the table for next week is rather ambitious.”

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U.S. and China Will Start Discussing A.I. Safety, Bessent Says

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U.S. and China Will Start Discussing A.I. Safety, Bessent Says

The United States and China will discuss guardrails on artificial intelligence, including establishing a protocol for keeping powerful A.I. models out of the hands of nonstate actors, Treasury Secretary Scott Bessent said on Thursday.

Mr. Bessent, who was speaking from Beijing in an interview with CNBC, did not give more details, including when these discussions would take place. But Xi Jinping, China’s leader, and President Trump had been expected to discuss A.I. during their summit in the Chinese capital.

If these talks happen, it would be the first time the two countries formally take up the issue during Mr. Trump’s second term. The capabilities and usage of A.I. have grown rapidly, and so have concerns that this technology could be weaponized by hackers and terrorists, or spiral out of human control.

“The two A.I. superpowers are going to start talking,” Mr. Bessent said. “We’re going to set up a protocol in terms of, how do we go forward with best practices for A.I. to make sure nonstate actors don’t get ahold of these models.”

Still, Mr. Bessent made clear that the fierce competition between the United States and China for supremacy in A.I. — which has been a major hurdle to cooperation on safety — remained front of mind for U.S. policymakers. Officials and experts in both countries have argued that they cannot slow technological development and risk losing out to their rivals.

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Mr. Bessent said that the United States was willing to cooperate with China on A.I. safety because “the Chinese are substantially behind us” in terms of the technology’s development.

“I do not think we would be having the same discussions if they were this far ahead of us. So we’re going to put in U.S. best practices, U.S. values, on this, and then roll those out to the world,” Mr. Bessent said.

Experts have suggested that China’s A.I. models may be a few months behind the leading U.S. models.

Another hurdle to the United States and China working together on A.I. safety is that they have generally focused on different potential threats.

American experts have generally highlighted existential risks, such as the possibility of artificial general intelligence, or super-intelligence that exceeds that of humans. Chinese researchers and officials have more often highlighted risks related to social stability and information control, such as the possibility of chatbots producing content that challenges China’s leadership and policies.

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Still, researchers in both countries have highlighted some shared risks, such as the possibility of A.I. being used to develop new biological weapons.

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Ship seized off coast of UAE near Strait of Hormuz may have been ‘floating armory’: report

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Ship seized off coast of UAE near Strait of Hormuz may have been ‘floating armory’: report

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A ship was seized off the coast of the United Arab Emirates (UAE) near the Strait of Hormuz on Thursday morning, the British military reported.

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The ship was boarded and “taken by unauthorized personnel” while it was roughly 38 nautical miles northeast of the United Arab Emirates’ oil export terminal Fujairah, the United Kingdom Maritime Trade Operations (UKMTO) reported Thursday.

UKMTO spotted the ship heading toward Iranian territorial waters after the seizure, it reported Thursday.

British authorities did not release information on who the ship belonged to or who seized it. Despite the lack of official corroboration, the BBC reported that the Honduras-flagged Hui Chuan was seized in the Strait on Thursday.

CARGO SHIP ATTACKED BY SMALL CRAFT NEAR STRAIT OF HORMUZ, UK MARITIME AGENCY SAYS

Ships are anchored in the Strait of Hormuz off Bandar Abbas in southern Iran on May 4. A report on May 15 said a ship was seized off the coast of the United Arab Emirates and is being brought toward Iranian waters. (Amirhossein Khorgooei/ISNA/AFP)

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Citing the risk-management company Vanguard, the BBC reported that the ship’s operators told Vanguard that the Hui Chuan was operating as a “floating armory” for ships in the Strait to defend themselves from pirates.

A container ship sits at anchor in the Strait of Hormuz off Bandar Abbas, Iran, as a motorboat passes in the foreground on May 2, 2026. (Amirhosein Khorgooi/ISNA via AP)

At least two other ships have already been seized in the Strait of Hormuz since February.

IRAN SAYS ITS SMALL SUBS DEPLOYED TO STRAIT OF HORMUZ AS EXPERT EXPLAINS THREAT: ‘VULNERABLE TO DETECTION’

A cargo ship sails in the Persian Gulf toward the Strait of Hormuz on April 22, 2026. (AP Photo)

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In April, Iran’s Islamic Revolutionary Guard Corps (IRGC) seized the Panamanian-flagged MSC Francesca and the Epaminondes ships in the Strait.

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Fox News Digital contacted UKMTO and Vanguard for further information but did not immediately receive a response.

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Israel-Lebanon talks held in Washington as expiration of ceasefire nears

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Israel-Lebanon talks held in Washington as expiration of ceasefire nears
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Al Jazeera’s Manuel Rapalo reports from Washington, where the first of two days of US-mediated ambassador-level talks between Israel and Lebanon concluded on Thursday. A ceasefire between them expires on Sunday, though Israel has killed 512 Lebanese since its implementation on April 17.

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