April 18 update

A Russian air strike killed at least 16 people and injured many more in Chernihiv, a city in the north of Ukraine.The city’s acting mayor condemned Russia for engaging in “terrorist activity”. Russia has stepped up its bombardment of Ukrainian cities, overwhelming the country’s air defences. Ukrainian politicians renewed their call for more military support following the attack. Mike Johnson, the speaker of the House of Representatives, has said American lawmakers could vote on aid for Ukraine later this week.

The IMF forecast that America will record a fiscal deficit of 7.1% next year. According to the IMF’s Fiscal Monitor, a twice-yearly analysis of public finances, the average fiscal deficit for countries in the rich world is 2%. The report was also highly critical of large budget deficits in China, Britain and Italy.

Georgia’s parliament approved a controversial “foreign agents” law on its first reading. Opposition MPs refused to vote on the bill, which would require organisations to register as “pursuing the interests of a foreign power” if they receive more than 20% of their funding from abroad. Critics, who view the law as a means of cracking down on dissent, held mass protests in Tbilisi in recent days. The bill will require two more readings before it is adopted.

President Joe Biden will call for tariffs on Chinese steel to be tripled when he visits Pennsylvania on Wednesday, according to White House officials. Tariffs on Chinese steel imports, which make up 0.6% of American demand, are currently 7.5%. The announcement forms part of Mr Biden’s efforts to outflank Donald Trump, a self-proclaimed “Tariff Man”, ahead of the presidential election in November.

The European Commission ordered TikTok, a social media company, to submit a risk assessment regarding the impact of its new platform, TikTok Lite. The Commission is concerned about the impact of the platform—which includes a “Reward Program” that allows users to earn points by watching videos—on children’s mental health. The move follows the Commission’s launch of an investigation into TikTok, which is also under fire in America.

Israel assured its Arab neighbours that it would not threaten their security in its response to the barrage of drones and missiles that Iran launched towards its territory on Saturday, according to local media. America and Europe are planning to impose fresh sanctions on Iran. Janet Yellen, America’s treasury secretary, said she would act “in the coming days”.

A European Union court rejected efforts by a Puerto Rican company to register the name “Pablo Escobar” as a trademark in the bloc. The business, which is linked to the family of the deceased Colombian cartel leader, argued that the names of other notorious figures—including Al Capone—had previously been accepted as trademarks. The court said the registration would be contrary “to accepted principles of morality”.

Figure of the day: $50bn, the total value of subsidies and tax credits included in America’s CHIPS Act. Read the full story.

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photo: getty images

The Solomon Islands go to the polls

An election in the Solomon Islands on Wednesday will determine whether the Pacific country continues its hard tilt towards China. After the previous vote in 2019, Manasseh Sogavare, the prime minister, switched diplomatic recognition from Taiwan to China. In 2022 he signed a secretive security deal with the country. China has since sent police and a flurry of aid and investment to the islands, triggering alarm bells in the West.

Opposition leaders have pledged to curb China’s growing influence. So Australia, fearing a Chinese military base to its north, hopes for a change of guard. Ordinarily there would be one: no prime minister in the Solomon Islands has been re-elected for consecutive terms in office. But opposition figures suggest that Chinese money has helped Mr Sogavare buy political support (he denies that China has undue influence). The election will be followed by weeks of horse-trading, as MPs align behind a prime minister. The incumbent—and China—may emerge victorious.

photo: reuters

A long-term bet on ASML

ASML, which sells chipmaking gear, is Europe’s most valuable technology company with a market capitalisation of nearly $400bn. On Wednesday the Dutch firm announced results for the first quarter. The numbers came in lower than last year because the semiconductor industry is in one of its cyclical downturns. Revenues were $5.62bn, lower than estimates of $5.73bn and around 22% lower than in the first quarter of 2023.

But in the longer term analysts are extremely bullish, which explains why ASML’s market capitalisation is up 32% since the start of the year. Without its cutting-edge lithography machines, chipmakers could not produce the most fine-grained processors, the transistors of which are measured in a few nanometres. They go into smartphones and, more recently, data centres that train and run the artificial-intelligence models that power generative-AI services such as ChatGPT. Demand for these AI chips will probably keep going up for some time.

photo: epa

A mixed economic picture in Britain

Data released on Wednesday show Britain’s inflation rate slowed to 3.2% in March, down from 3.4% in February. That is the lowest level since September 2021, but still higher than analysts had predicted. Inflation remains well above the Bank of England’s 2% target. Further declines are expected over the next few months.

The release capped a week of mixed macroeconomic data. On Friday GDP numbers for February suggested that Britain had edged out of recession, but growth remains tepid. On Tuesday labour-market data pointed to rising unemployment and faster wage growth than expected. That all raises the spectre of stagflation. But serious questions remain about the reliability of Britain’s economic data, following a collapse in survey response rates after the pandemic.

The Bank of England’s monetary-policy committee next meets on May 9th. Markets expect an interest-rate cut at some point between May and September, but are unsure of the exact timing.

photo: getty images

American colleges and antisemitism

Last year Columbia University’s president was asked to attend a congressional hearing about antisemitism at American colleges. She had a prior commitment. That may have been lucky: two of her counterparts, at Harvard and the University of Pennsylvania, resigned in its aftermath, owing to their overly cautious, legalistic answers. On Wednesday Minouche Shafik will appear for her rescheduled hearing.

Jewish students recently filed two lawsuits against Columbia, alleging that it tolerates a “hostile environment” towards Jews. Other top-tier colleges have been sued, too. Yet administrators and lawyers are grappling with how even to define antisemitism in a way that does not curtail legitimate criticism of Israel. Columbia’s task-force has declined to produce a definition. UC Berkeley has asked a judge to dismiss a lawsuit over its refusal to discipline pro-Palestinian student groups, citing its obligations to protect free expression. At her testimony Ms Shafik will try to tread a fine line—and risks satisfying no one.

photo: ap

Reading nature at Bogotá’s book fair

On Wednesday Brazil’s president, Luiz Inácio Lula da Silva (better known as Lula), will open one of the biggest events on Latin America’s literary circuit in Bogotá, the capital of Colombia. The city’s 36th international book fair is devoted to the relationship between literature, nature and culture. The two-week programme of 2,000 events will encompass editors, publishers and bookworms from more than 25 countries. They will discuss how authors from the region consider the relationship between humans and the wilderness; chronicle the destruction of ecosystems; and eulogise about the lungs of the Earth.

The focus on eco-criticism is well timed. Deforestation in the Amazon dropped significantly last year on the watch of Colombia and Brazil’s green-minded presidents. In October Colombia will also host a UN biodiversity summit. Lula’s presence in Bogotá shows how the two biodiverse countries are bonding over the environment—pleasing bibliophiles in turn.