The Strained Alliance at the G20 Summit

The recent G20 Summit concluded with a joint communique that revealed the strained alliance between the world's biggest economies. While the summit signaled a positive moment for multilateralism and produced concrete results, there were notable tensions and compromises.

One of the key points of contention was the language condemning the war in Ukraine. The communique's wording was watered down, with no direct mention of Russia's aggression. This move raised concerns about the unity and effectiveness of the G20 in addressing global conflicts.

However, there were also significant developments during the summit. The African Union was admitted as a full G20 member, which was seen as a win for India's Prime Minister Narendra Modi. This move highlights the growing influence and representation of African nations in global economic discussions.

In other news, PwC made a noteworthy decision to give up tens of millions of dollars in consulting work to reduce conflicts of interest. This move demonstrates a commitment to ethical practices and maintaining the integrity of their services.

Investors are also optimistic about a potential diplomatic breakthrough between the US and Venezuela. This optimism has led to speculation of softer sanctions, which in turn has caused Venezuelan government bonds to rally.

Furthermore, Australia's largest pension fund, Australian Super, is making a significant investment of €1.5 billion into vantage data centers. This move reflects a pivot away from traditional property sectors towards digital infrastructure, showcasing the growing importance of the digital economy.

Overall, the G20 Summit had its share of challenges and compromises, but it also presented opportunities for progress and positive developments in various areas.

PwC is planning to give up tens of millions of dollars of consulting work for its US audit clients, Australia’s biggest pension fund is going big on digital infrastructure, and Venezuelan government bonds are having a moment. Plus, the FT’s John Reed explains why this year’s G20 summit was a huge win for India. 

Mentioned in this podcast:

G20 backs bigger role for reformed World Bank

PwC to curtail consulting work for US audit clients to reduce conflict risk

Western nations accept ‘climbdown’ on Ukraine to salvage G20’s relevance

Venezuelan bonds rally as investors bet on detente with Washington

Credit: Piers Morgan Uncensored

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Monique Mulima, Monica Lopez, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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