Update at (23:45 GMT / 07:45 Hong Kong), Feb 6, 2023

Divers from America’s navy are working to recover debris from the Chinese balloon that an American fighter jet shot down Saturday over the Atlantic. The Pentagon confirmed it was downed over American territorial waters, but China accused the Biden administration of “seriously violating international conventions”. China has denied that the balloon, which the Pentagon detected flying over sensitive military sites, was used for surveillance.

Iran’s supreme leader, Ayatollah Ali Khamenei, claimed to have pardoned “tens of thousands” of prisoners, including some arrested in recent anti-government protests. The death of Mahsa Amini, a young woman arrested in September for not wearing a “proper” headscarf, sparked daily demonstrations. To quell demonstrations the authorities locked up nearly 20,000 people, sentencing over 100 to death.

Ukraine’s defence minister, Oleksii Reznikov, will be replaced following a corruption scandal. Mr Reznikov’s deputy resigned after media reports accused the defence ministry of graft, but Mr Reznikov had said he would step down only if Volodymyr Zelensky, the country’s president, asked him to. Kyrylo Budanov, the head of military intelligence, will reportedly take his post.

The presidential election in Cyprus will go to a run-off next week after no candidate won an outright majority. Former foreign minister Nikos Christodoulides took 32% of the vote. Mr Christodoulides’s lead was expected, but Andreas Mavroyiannis, a career diplomat backed by a left-wing party, was a surprise runner-up. On the divided island, only Greek Cypriots participated in the vote.

 

Fact of the day: 1.2m, The number of fishing licences sold in the state of Minnesota in 2020—roughly one for every five residents. Read the full story.

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India’s central bank meets

On Monday India’s central bankers begin a three-day monetary-policy meeting at which they are expected to announce a small increase in interest rates. That will probably be the final rise in the current tightening cycle. The Reserve Bank of India is softening its stance because price rises are slowing. In December annual inflation fell for the third consecutive month, to 5.7%, its lowest level in more than a year. In last week’s budget the government announced plans to rein in spending, which should also help keep prices down.

But as one fire fizzles, another looms. Several of India’s largest banks are exposed to the Adani Group, the giant conglomerate that has been rocked by allegations of fraud. The RBI insists the “banking sector remains resilient and stable”. Commercial banks have also played down any concerns. But should the fallout worsen, the RBI, which has a mandate for maintaining financial stability, may be back firefighting.

A transatlantic discussion on green subsidies

Margrethe Vestager’s early career was so impressive that it inspired “Borgen”, a hit television show about Danish politics. Now, as the competition boss of the European Commission, Ms Vestager wields one of the EU’s sharpest economic swords: fierce competition rules and their enforcement.

Those weapons curb corporate power and egregious state support used to prop up national champions. But many EU governments, in particular the French, would like to blunt Ms Vestager’s sword. They argue that the American government’s ambitious (and expensive) plans to build up green manufacturing require Europe to respond in kind: with large subsidies. No doubt to Ms Vestager’s dismay, the EU’s new green industrial strategy weakens Europe's competition rules and allows governments to spend more lavishly.

On Monday Ms Vestager will speak to America’s treasury secretary, Janet Yellen—who oversees the tax credits that form the backbone of America’s ambitions—in an attempt to limit the transatlantic fallout over subsidies. Not quite the stuff of noirish Scandinavian drama, but important for Europe’s economic future.

 

The UN’s priorities for 2023

PHOTO: AFP

When preparing a setlist, musicians must give the crowd fresh material as well as old classics. António Guterres, the UN’s secretary-general, faces a similar challenge when he outlines his priorities for 2023 before the General Assembly on Monday.

Mr Guterres is fond of grim proclamations: in recent months he has warned of “nuclear annihilation” and “climate hell”. Expect to hear such refrains again as he warns of the risks posed by Russia’s war in Ukraine, spiralling inflation and rising temperatures.

But he should also offer something new. Watch out for mention of the UN’s Sustainable Development Goals, 17 targets for 2030 that cover everything from peace to renewable energy. Progress is assessed every four years: the next stocktake is scheduled for September. Mr Guterres will probably warn governments to pick up the tempo. Otherwise he will be forced to carry on singing the same tune.

Anglicans debate same-sex marriage

Gay marriage was legalised in Britain in 2014. But no religious organisation can be compelled to carry out same-sex weddings. When the Church of England’s governing body, the general synod, convenes on Monday for a four-day session, the issue will be at the top of the agenda. In January the church said it planned to allow clergy to bless same-sex unions but would continue to ban gay couples from marrying in its churches. When the synod debates the proposal this week, progressives may push for that ban to be lifted.

The church’s membership seems to be coming around to the idea. Some 55%, and almost three-quarters of those under 50, support same-sex marriage, up from 38% in 2013. But Anglicans elsewhere in the world are less liberal. In August 2022 the Global South Fellowship of Anglican Churches, which represents around 75% of Anglicans worldwide, reaffirmed its view that homosexuality is “incompatible with scripture.” The Church of England risks destabilising the Anglican Communion entirely.

 

Marvel films return to China

Chinese cinephiles will line up this week for the country’s first showings of “Wakanda Forever”, Disney’s Oscar-nominated follow-up to “Black Panther”. The studio’s Marvel superhero flicks have a big following in China. “Wakanda” is especially eagerly awaited, as it is the first Marvel movie to be granted a release in China since 2019.

No one is sure why China banned the previous lot. The content may be one reason. In 2021 “The Eternals” introduced Marvel’s first gay superhero. “Shang-Chi and the Legend of the Ten Rings”, also released in 2021, depicted Asian culture in ways that may have triggered China’s censors. Neither was shown in China.

A bigger motive may have been to protect domestic moviemakers. Patriotic hits like “The Battle at Lake Changjin” do better when Disney is shut out. No reason was given for Marvel's sudden return. But a population that has become restless with covid clampdowns needs cheering up. Not bread and circuses, but bread and cinema.