World in Brief - The Economist Roundup

 

World in Brief

The Economist Roundup

Ron DeSantis dropped out of the Republican presidential race, throwing his support behind Donald Trump. Mr DeSantis, the 45-year-old popular governor of Florida, struggled to gain momentum. Having invested heavily in Iowa, he came a distant second to Mr Trump in the state’s caucuses on January 15th. He suspended his campaign two days before New Hampshire goes to the polls. His ex-rival, Nikki Haley, is hoping to have a strong showing there.

 

Binyamin Netanyahu, Israel’s prime minister, rejected an offer from Hamas to release hostages in return for his country’s complete withdrawal from Gaza. Hamas had also demanded that it remain in charge of the enclave after the war. The refusal means there is now “no chance” of the hostages’ return, said a Hamas official. Family members of Israeli hostages began a protest outside Mr Netanyahu’s home in Jerusalem on Sunday evening.

 

ExxonMobil filed a lawsuit against two investment groups that have proposed a shareholder vote on new climate targets. Follow This, an activist-investor fund in Amsterdam, and Arjuna Capital, an investment adviser, want Exxon to speed up its reduction of carbon emissions. The oil giant argued the investors are driven by “an extreme agenda”.

 

A Russian fuel-export terminal suspended some operations after a fire erupted following a suspected Ukrainian drone attack. The huge complex on the Baltic Sea supplies fuel to Russian troops and is “an important facility for the enemy”, according to Ukrainian reports. Earlier, shelling by Ukraine killed 27 people in Donetsk, a Russian-controlled city in eastern Ukraine, said the city’s Russia-installed mayor.

 

China’s commercial banks kept their lending rates unchanged, according to data released on Monday by the People’s Bank of China. Last week the central bank also held rates steady, despite forecasts for a cut. However, analysts believe that rate cuts are likely in the coming months, as the country is grappling with deflation, a property sector downturn and weak investor sentiment.

 

Australia halted applications for its “golden visa” scheme, which gave wealthy investors the right to residency. Thousands of visas had been granted since 2012, with 85% of successful applicants coming from China. The government said that the scheme was “delivering poor economic outcomes”, and will be replaced with more skilled-worker visas.

 

Gianni Infantino, the president of FIFA, football’s global governing body, said teams should forfeit matches automatically if they are abandoned because of racist behaviour by their fans. His call follows stoppages at Sheffield, in England, and Udine, in Italy, on Saturday after black players in visiting teams were abused. FIFA’s current rules say games may be halted twice and then called off if abuse persists.

 

 

Blinken showers attention on Africa

This week Antony Blinken, America’s top diplomat, is touring Cape Verde, Ivory Coast, Nigeria and Angola. America’s focus has been on Ukraine and the Middle East, and President Joe Biden broke his promise to visit the continent last year. One aim of the trip is to show Africans they have not been forgotten.

Mr Blinken will also highlight good news. Cape Verde is a strong democracy that has just eliminated malaria. In Ivory Coast, whose economy is booming, he will probably attend a football match at the Africa Cup of Nations, to show America is in tune with everyday Africans.

Still, security matters will butt in. Ivory Coast is fending off jihadists on its northern border. Nigeria is beset by a kidnapping crisis which American arms sales to the country have done little to help. Alas, Mr Blinken’s Africa trip—his first since March—again ignores the worst crisis on the continent: the catastrophic war in Sudan, which desperately needs diplomatic attention.

 

Modi’s monument to political ambition

On Monday Narendra Modi, India’s prime minister, presided over the consecration of a $220m temple in the northern city of Ayodhya. To the alarm of the country’s 200m Muslims, and many secular-minded Indians, the grand ceremony will mark a high point of Mr Modi’s Bharatiya Janata Party’s decades-long Hindu-nationalist project. The temple is built on the site where in 1992 a mob razed a 450-year-old mosque.

For many Hindus, however, it is a joyous occasion because it corrects an ancient wrong: the location is also the mythical birthplace of the Hindu god Ram. Millions will tune in on TV; offices, stockmarkets and even casinos have said they will shut. For these reasons, the event also serves as the informal launch of Mr Modi’s campaign for a third term in elections to be held over April and May. India’s Supreme Court has ruled that “religion and politics” should not mix. But that very combination is likely to propel him into power again.

 

The Asian Financial Forum kicks off

More than 2,500 political, corporate and financial bigwigs will descend on Hong Kong this week for the annual Asian Financial Forum. The mood will probably be optimistic: the IMF expects Asia’s economies to grow by 4.2% in 2024, against a global rate of 2.9%.

But the atmosphere across the host city is more sombre. In November Hong Kong’s government trimmed its GDP growth forecast for 2023 to 3.2%—meaning the economy is smaller than in 2018. The main stockmarket index has fallen by more than a quarter in the past year. Property prices have plunged by almost a fifth since their peak, and data due on Monday about China’s loan prime rate, important for the mainland’s ropey housing market, may not add much cheer.

John Lee, the city’s chief executive, claims the event will show Hong Kong’s “freedom, vitality and diversity”, and that foreign participation proves it “remains attractive” for overseas investors. It may take more than a gabfest to convince the rest of the world.

 

Macron and Scholz discuss Ukraine aid

France and Germany will put on a symbolic show of friendship in Berlin on Monday. The Bundestag is holding a memorial ceremony for Wolfgang Schäuble, Germany’s former finance minister who died in December. The guest of honour will be Emmanuel Macron, who will give at least part of his eulogy in German. Mr Schäuble once called the French president “a chance for Europe”.

While in Berlin Mr Macron will meet the German chancellor, Olaf Scholz. The two leaders have struggled to overcome their countries’ many differences, notably over energy policy and the euro zone’s fiscal rules. One pressing topic will be European military aid to Ukraine. Overall, Germany has spent far more than France. Yet France is now sending a second batch of long-range cruise missiles, while Germany’s parliament has refused permission for the country to send any. Mr Macron last week upped the rhetoric, stating that “a Russian victory would be the end of European security”.

 

Chrome will be the colour of 2024

The world’s mood is sombre and grey. In design, though, brightly reflective finishes are gleaming in the spotlight. Pinterest, a social-media network, noted an appetite for “cool silver tones and bold chrome” in its annual trend report. Architectural Digest, House Beautiful and Kaiyo, an online second-hand furniture marketplace, all predict a renewed interest in chrome in interiors.

The first time chrome was in fashion, a century ago, the colour reflected a booming economy in America and optimism about the future. It was glamorous, with an industrial edge that nodded to the rise of machines. Now, in less hopeful times—when worries about wars, the climate, politics and inflation abound—its popularity may be somewhat pragmatic. Upcycling and buying second-hand are booming, notably in fashion and interior design. And chrome reflects a lot of light, which is useful in small living spaces. There may be a touch of nostalgia and escapism, too, as those hankering after chrome dream of a brighter tomorrow.