World in Brief - The Economist Roundup

 

World in Brief

The Economist Roundup

February 6, 2024

Progress towards a deal on American funding for Ukraine and Israel appeared to have stalled, as Republicans in the Senate turned against a bill that included measures to strengthen America’s border security. After months of bipartisan negotiations a vote is due on the bill on Wednesday. But right-wing Republican members of Congress—encouraged by Donald Trump—are now calling its anti-immigration measures too weak. The package includes $20bn for border security as well as $60bn for Ukraine and $14bn for Israel.

 

Antony Blinken, America’s secretary of state, met Muhammad Bin Salman, Saudi Arabia’s crown prince, in Riyadh. The pair discussed efforts to end the war in Gaza and provide lasting peace. America is hoping that Saudi Arabia and Israel can agree to normalise diplomatic ties. Mr Blinken will also visit Egypt, Israel, Qatar and the West Bank this week. He is expected to push for a ceasefire and the release of Israeli hostages.

 

King Charles III has cancer, Buckingham Palace said. His public duties have been paused though he “remains wholly positive” and looks forward to returning to his public work soon. The disease was found last month when the king, who is 75 years old, received treatment for an enlarged prostate. The palace did not specify which kind of cancer. He was crowned last May.

 

McDonald’s plans to open 1,000 burger joints in China this year, mostly in smaller cities outside of Beijing or Shanghai. The firm is doubling down on its second-biggest market, even as many Western companies aim to “de-risk” from China. McDonald’s wants to have 10,000 outlets in the country by the end of 2028, up from around 5,500 now.

Senegalese democracy in peril

Violent clashes seem certain to continue on Tuesday in Senegal, long considered a beacon of democratic stability in Africa. On Saturday President Macky Sall indefinitely postponed the election scheduled for February 25th. Mr Sall’s justification for staying beyond his mandate is to allow time for a parliamentary inquiry into allegations of corruption against the Constitutional Council, which vets presidential candidates. Opponents decried a “constitutional coup”. Tensions quickly rose and police arrested a candidate at protests on Sunday.

Then late on Monday evening the National Assembly passed a bill delaying the election to December 15th, long after Mr Sall’s elected mandate will have expired. The vote was passed after police in masks and riot gear forcibly removed some opposition MPs from the National Assembly. Earlier on Monday mobile internet was cut, motorbikes (popular with young protesters) were banned and a television station was shut down. A profound democratic crisis in Senegal is only just beginning.

Toyota picks up speed

The world’s biggest carmaker, Toyota, raced past expectations with its third-quarter results on Tuesday. The Japanese company also raised its profit forecast for the year ending in March by nearly 9% to 4.9trn yen ($33bn). Its shares surged on the news, which brought relief after a series of scandals at Daihatsu, a subsidiary, and Toyota itself. Daihatsu suspended shipments of cars in December after it was discovered to have rigged safety tests. Toyota stopped making some models last month after diesel-engine tests were also found to have been manipulated.

Toyota is taking advantage of buoyant demand for hybrid cars, which make up a third of its sales. Its exports have also been boosted by a weak Yen. While the company has failed to keep pace with other carmakers on pure electrics, global sales growth of these vehicles is slowing. But will that vindicate Toyota’s commitment to petrol power? It recently said it would continue to develop new combustion engines.

The EU’s new climate plan

On Tuesday the European Commission is due to unveil its latest climate strategy, detailing how it intends to cut carbon across the EU by 2040. The EU’s executive arm is expected to propose a 90% “net” reduction of emissions, compared with 1990—meaning that some pollution can be offset by natural sequestration (by forests, say) plus carbon capture and storage technology.

The proposal has already come under fire. Various technologies allow for the emissions released by burning fossil fuels, or through some industrial processes, to be absorbed, transported, stored underground or re-used. But most are expensive and inefficient, and do not yet exist at the scale required.

Environmentalists have railed against relying on such “speculative” technologies, which they argue will act as a disincentive to cutting back on fossil fuels. But the EU is already being assailed by angry farmers protesting against its green regulations. That leaves it with a difficult needle to thread.