World in Brief - The Economist Roundup

 

World in Brief

The Economist Roundup

A Russian military plane crashed in the Belgorod region, near the border with Ukraine, killing at least 65 Ukrainian prisoners of war, according to the Russian ministry of defence. Ria Novosti, a state-owned news agency, said that nine other people were on board, including six crew. The plane was reportedly transporting the passengers for a prisoner exchange. Russia accused Ukraine of shooting down the plane, but did not present any evidence.

 

Volodymyr Zelensky, Ukraine’s president, accused the Kremlin of “playing with the lives of Ukrainian prisoners” after a Russian military plane crashed in eastern Russia. At least 65 Ukrainian prisoners of war were killed. Russia said Ukraine shot down the plane, which was being flown for a prisoner exchange. Mr Zelensky demanded an international inquiry to establish “all clear facts”.

 

Israel attacked a UN training centre sheltering 800 people in the southern city of Khan Yunis in Gaza. A UN official said nine people had been killed and 75 injured when two tank rounds hit the building on Wednesday. “We deplore” the attack, a spokesperson for America’s State Department said in a rare rebuke. Earlier Israel ruled out a ceasefire in Gaza.

 

The Biden administration said it “deplored” an attack on a UN training centre sheltering 800 people in the southern city of Khan Yunis in Gaza. It was seen as a rare rebuke of Israel from its staunchest ally although Israel has not claimed responsibility. The UN—which has blamed Israel— said nine people were killed and 75 injured when two tank rounds hit the building on Wednesday.

 

Microsoft’s market capitalisation reached $3trn on Wednesday, after the share price grew by 1.3%. The company briefly overtook Apple, which last year became the first firm to be valued at $3trn. Microsoft’s shares rose by 57% in 2023, mainly thanks to its investments in artificial intelligence. America’s stockmarket has rallied over the past week, with the S&P 500 closing at a record high on Monday.

 

Non-Muslim diplomats in Saudi Arabia can buy alcohol at a liquor shop in Riyadh, the kingdom’s first in over 70 years. Saudi Arabia bans booze, though some still manage to procure it from the black market. The distinctly un-relaxing shopping experience reportedly requires customers to show their diplomatic credentials, hand over mobile phones and pay with a special app.

 

America’s Federal Aviation Administration ordered Boeing to halt production of its best-selling 737 MAX 9 planes because of “unacceptable” quality issues. The regulator, however, allowed the aircraft to return to the air, a relief to American carriers which had to cancel hundreds of flights. The planes were grounded earlier this month after a door blew out during an Alaska Airlines flight.

 

Tesla warned that its electric-vehicle sales growth could be “notably lower” in 2024. In its latest earnings report the firm also revealed slower revenue growth and shrinking margins in the last quarter of 2023. Shares in the carmaker fell by more than 5% on the news. Elon Musk, the firm’s founder, said production of a lower-cost EV built using “revolutionary manufacturing technology” would begin in 2025.

 

Turkey’s tightening cycle nears its end

Since her appointment as head of Turkey’s central bank last summer, Hafize Gaye Erkan has presided over one of the most aggressive tightening cycles in the bank’s history. To tackle skyrocketing consumer prices, the bank has increased the benchmark interest rate by a total of 34 percentage points in seven months. Market analysts expect another increase, of 2.5 percentage points, when the bank’s monetary policy committee convenes on Thursday. Although the annual inflation rate has continued to climb, reaching 64.8% in December, it is expected to dip by the start of the summer.

But Ms Erkan has also been making news for the wrong reasons. Over the past week she has faced allegations that her father, who has no official role at the central bank, had one of its employees fired and assaulted another. The bank’s tightening cycle seems to be nearing its end. Ms Erkan’s future as its governor may be in jeopardy, too.

France and India cosy up

France and India will cement their friendship this week. On Thursday Emmanuel Macron arrives in Jaipur, where he will be taken on a tour of the northern Indian city by Narendra Modi, India’s prime minister. On Friday the French president will be the guest of honour in Delhi at a parade marking India’s 75th Republic Day. The pomp will be reciprocal. Mr Modi was the special guest last year in Paris for France’s Bastille Day.

France lacks Britain’s deep historical ties to India. But it has worked hard on reinforcing its strategic partnership with the emerging power. This is part of a French attempt to build a new Indo-Pacific strategy upended by AUKUS, a security pact between America, Britain and Australia. As Mr Macron and Mr Modi sip tea together, they will discuss student exchanges, solar energy and space, as well as defence. India has already bought plenty of French military kit. Two French Rafale jets will take part in the ceremonial fly past.