MNI POLITICAL RISK ANALYSIS - US Daily Brief 18-05-23

Executive Summary:

• Markets breathed a sigh of relief yesterday as President Biden gave his firmest indication yet that he may be prepared to budge on his ‘red lines’ to negotiate a bipartisan debt limit deal with House Speaker Kevin McCarthy (R-CA).
• Congressional Democrats have escalated calls for the White House to pursue a unilateral solution to the debt limit as it looks increasingly like McCarthy is heading for a significant political win.
• President Biden held a bilateral meeting with Japanese Prime Minister Fumio Kishida this morning ahead of tomorrow's G7 Leaders’ Summit.
• The White House decision to cancel President Biden’s travel to Papua New Guinea and Australia may undermine American foreign policy, and benefit China, at a critical time for the Biden administration Indo-Pacific strategy.
• Florida Governor Ron DeSantis (R-FL) is expected to officially announce his candidacy for President next week.
• House Republicans have punted the decision to expel Rep. George Santos (R-NY) to the Ethics Committee.
• Poll of the Day: Nearly two-thirds of Americans support more stringent work requirements for Social welfare programmes.

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MNI POLITICAL RISK ANALYSIS - US Daily Brief 18-05-23 .pdf