Antony Blinken, America’s secretary of state, postponed a planned trip to China after the Pentagon detected a Chinese balloon flying over Montana. Mr Blinken was due to land in China on Sunday, where he was expected to meet with President Xi Jinping. China denied that the object was a spy balloon, adding that American politicians were using the incident to “smear China”. On Friday American officials said that a second Chinese spy balloon was flying over Latin America.

China said that political trust with Russia had deepened following a meeting between the two countries’ foreign ministers last week. The announcement came exactly one year after President Xi Jinping’s declaration that the two countries enjoy a “friendship without limits”. China has largely shown indifference to Russia’s invasion of Ukraine.

Elon Musk and Tesla were cleared of wrongdoing over tweets from 2018 in which Mr Musk said he had “funding secured” to take the electric-vehicle firm private. Some of Tesla’s shareholders had filed a lawsuit against Mr Musk, claiming that he misled them with his social-media posts (the proposed deal did not materialise). But a jury in San Francisco found Tesla’s chief executive not guilty of fraud.

The EU agreed to a cap of $100 per barrel on exports of Russia’s refined-oil products, such as diesel, to take effect on Sunday. Fuel oil and other low-value exports will be capped at $45. A cap of $60 already applies to Russian crude. Insurers and shippers are prohibited from dealing in items covered by the cap unless they were bought below or at the designated price.

Peter Frank, Germany’s prosecutor-general, said he had collected evidence of Russian war crimes in the “three-digit range”, and that Russian civilian and military leaders should be placed on trial. Meanwhile, the Ukrainian government announced that it had repatriated 116 soldiers as part of a prisoner-of-war swap with Russia. Earlier, the American government had announced a new $2.2bn aid package for Ukraine that includes longer-range precision missiles.

Japan will restrict exports of the machines that make advanced semiconductors to China from this spring, according to Kyodo News. America has been cajoling allied countries to introduce controls on chip exports to China, amid concerns that access to advanced semiconductor technology will give China a military edge. So far only the Netherlands had agreed to do so.

Researchers exploring a cave system in Spain discovered evidence that cave bears, a prehistoric species that went extinct around 24,000 years ago, may have lived further south than previously thought. The researchers found that the walls of the vast cave, which had been sealed off for thousands of years, had been clawed at by the creatures. Martín Lerma, the scientific director of the excavation, said the find “opens a new door on prehistory.”

Correction: In Friday’s edition we misspelt the name of Polish director Jerzy Skolimowski (as Skolimowksi). Sorry.

Word of the week: teledildonics, the term in pornography for virtual-sex encounters using remotely controlled toys. Read the full story.


Tensions between American and China balloon

PHOTO: GETTY IMAGES

Antony Blinken, America’s top diplomat, was scheduled to arrive in Beijing on Sunday. The visit—the first by a secretary of state since 2018—seemed like proof that the countries’ fractious relationship was improving. But now it will not happen. On Friday Mr Blinken postponed his trip after a Chinese high-altitude balloon was spotted flying over America.

The Pentagon claimed it was a surveillance balloon, though it downplayed its potential value for gathering intelligence. China said it was a “civilian airship” used mainly for meteorological research. It expressed regret about the balloon’s “unintended” entry into American airspace.

Officials in Washington are disinclined to give China the benefit of the doubt. No politician wants to appear soft towards the country. That limits the Biden administration’s room for manoeuvre. Mr Blinken may still hope to visit Beijing at some point. One could argue, though, that now is precisely the time when talks are needed.

Pope Francis prays for peace in South Sudan

PHOTO: GETTY IMAGES

In 2019, months after striking a power-sharing agreement, Salva Kiir and Riek Machar—the president and one of the vice-presidents of South Sudan, respectively—visited the Vatican. Pope Francis famously kissed their feet, imploring the foes to maintain their fragile peace. The two men, who come from rival tribes, had watched their young country descend into a civil war in 2013. In less than five years the conflict was estimated to have left nearly 400,000 people dead and 4m displaced.

On Friday Francis arrived in Juba, the capital of South Sudan, a predominantly Christian country, with the same message. Joining him are Justin Welby, the archbishop of Canterbury, and Iain Greenshields, of the Church of Scotland. But their prayers for peace will probably fall on deaf ears. Between August and December 166 civilians were killed as violence rose in South Sudan’s Upper Nile state, in the north. And on the eve of Francis’s arrival 27 were killed in the south of the country.

 

“The Sign in Sidney Brustein’s Window”

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At 25 Lorraine Hansberry, a black lesbian communist playwright, longed for fame. But she couldn’t have predicted how soon it would come. She was 28 when “A Raisin in the Sun”, about a black family seeking a piece of the American dream, opened on Broadway in 1959. It marked the first time a black woman playwright had reached the Great White Way.

More than 60 years on, “Raisin” remains in heavy rotation. But another of Hansberry’s plays, “The Sign in Sidney Brustein’s Window”, has hardly been staged since it closed on Broadway in 1965, the year she died of cancer aged 34. The Brooklyn Academy of Music’s rare revival, starring Rachel Brosnahan and Oscar Isaac, opens in previews on Saturday. James Baldwin once raved of the play, about a group of friends in Greenwich Village straining to reconcile their ideals with reality, that “it is about nothing less than our responsibility to ourselves and each other.”

Europe’s rugby World Cup warm-up

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This year’s Six Nations tournament starts on Saturday. The competition, which pits the top European men’s rugby teams against one another, will also be keenly watched on the other side of the world. Ahead of a World Cup this autumn, Australia, New Zealand and South Africa are eyeing the northern-hemisphere competition.

Those southern-hemisphere powerhouses have won all but one of the previous World Cups. But France will look forward to home advantage. Les bleus have been in formidable form recently, with a powerful pack and a scrum-half, Antoine Dupont, who was voted World Rugby player of the year in 2021.

It would, then, be a brave fan who bet against France in the Six Nations. But Ireland, who top the world rankings ahead of France and New Zealand, will be favourites. In Josh van der Flier, a flanker, they possess the player of 2022. Of all the northern teams, it is these two that will make southern boots quake come autumn.

 

Weekend profile: Max Martin, pop hitmaker

PHOTO: EYEVINE

Britney Spears brought the sex appeal, plaintive vocals and teen longing. Max Martin supplied the rest. In 1998 their track “...Baby One More Time” ruled the radio. Any allusions to domestic violence or sado-masochistic sex in the chorus—“Hit me baby one more time”—were supposedly unintentional. Mr Martin, the song’s Swedish writer and producer, says he understood “hit me” to mean “call me”.

The earworm was the first of Mr Martin’s 25 number-one singles on the Billboard Hot 100, a chart of America’s most popular songs. Only Paul McCartney and John Lennon rank higher as songwriters. His collaborators include pop heavyweights from Celine Dion to Taylor Swift. On Sunday, at the Grammy Awards, the 51-year-old has three separate nominations for album of the year: for his production work on Adele’s “30”, Lizzo’s “Special” and Coldplay’s “Music of the Spheres”.

Unlike the Beatles frontmen, Mr Martin has shunned the mic since his early days as a heavy-metal rocker in Sweden. Then he was known as Karl Martin Sandberg. But Denniz PoP, the producer who steered his turn towards songwriting, insisted that he rechristen himself. “‘Martin Sandberg’ wasn’t exactly a disco name, so you couldn’t really talk to him,” Mr PoP later recalled.

Mr Martin is a proponent of a technique he calls “melodic math”, the principle that every element should serve the record and its melody. Words are chosen for their sound as much as their meaning. Take “...Baby One More Time”—the percussive Bs of “baby” make it a more common endearment in pop songs than, say, “darling”.

In 2019, in a rare interview with the Guardian, he explained the importance of phonetics, and how “melodic math” came about as a result of not speaking English as a child. He would listen to Abba, Elton John and the Beatles without registering what the songs were about. “I felt something hearing this music, and it meant something to me,” he said. “If you can have a great lyric that also phonetically sounds amazing, then you’re golden. But it’s also kind of cool if you write a song and people are emotionally moved without understanding what’s being said.”

All these years on, Mr Martin’s knack for meaningful nonsense shows no sign of diminishing.

The Fed is keen to impress upon investors that it will do whatever it takes to squelch inflation.

 

The Federal Trade Commission had requested an injunction to block the deal.

 

Adani Group has now lost $92bn in market value since Hindenburg Research, a short-seller, said the business empire was a giant con.

 

Its share price has plunged by 90% since a wildly successful flotation in 2021.

 

Rivian’s giant listing comes amid huge losses

The company—like most that go public these days—is unprofitable

www.economist.com

 

On Wednesday the flagship company of the Indian conglomerate cancelled a secondary share offering, which had been fully subscribed, after its share price plunged.

 

What next for Gautam Adani’s embattled empire?

A scrapped $2.5bn share offering is the first victim of a short-seller’s attack

www.economist.com

 

A bungled attempt by the now-ousted president of Peru to shut down Congress resulted in the country’s being downgraded to a “hybrid regime”.

 

After a bungled coup attempt, Peru’s president falls

Pedro Castillo tried to shut down Congress. Instead, he was impeached

www.economist.com

 

Such horrors were not uncommon during the Cultural Revolution, a decade of Maoist madness that began in 1966 and saw up to 2m people killed for supposed political transgressions.

 

“What makes the era’s lessons so vital is also what makes them impermissible,” writes Ms Branigan.

America’s Federal Reserve raised its benchmark interest rate by one-quarter of a percentage point, to a range between 4.5% and 4.75%, following six consecutive larger increases. Jerome Powell, chair of the central bank, promised “a couple more” rate increases and warned not to expect rate cuts this year. The Fed is keen to impress upon investors that it will do whatever it takes to squelch inflation.

Meta’s share price rocketed by almost a fifth in post-session trading after it reported quarterly revenues of $32.2bn, down by 4% year over year but above forecasts. The social-media firm also said it would buy back $40bn-worth of its shares. Earlier a judge in California reportedly ruled that Meta can proceed with its acquisition of Within Unlimited, a virtual-reality firm. The Federal Trade Commission had requested an injunction to block the deal.

Adani Enterprises, flagship of the Adani Group’s listed companies, called off its fully subscribed $2.4bn share sale. The company said the decision was taken to “insulate [investors] from any potential financial losses”. Shares in the vast Indian conglomerate fell by 28% on Wednesday. Adani Group has now lost $92bn in market value since Hindenburg Research, a short-seller, said the business empire was a giant con.

Ukraine’s security services raided the house of Ihor Kolomoisky, a billionaire and former patron of President Volodymyr Zelensky as part of an anti-corruption campaign. Security forces also targeted the home of Arsen Avakov, a former interior minister. Mr Avakov said he was raided as part of an investigation into his buying of helicopters–one of which crashed and killed his successor–while in government.

Rivian said it would lay off 6% of its staff of 14,000 amid a coming electric-vehicle price war. Tesla and Ford recently announced price cuts for their electric cars. Rivian, which makes electric trucks, lost $5bn in the first nine months of last year. Its share price has plunged by 90% since a wildly successful flotation in 2021.

The pace of euro-zone inflation slowed to an annual rate of 8.5% in January, according to preliminary figures, the third monthly decrease in a row. Lower energy costs are largely responsible for the deceleration. But core inflation, which excludes volatile energy and food prices, remains at an all-time high. European central bankers are expected to hike interest rates again on Thursday.

The largest day of industrial action in at least ten years began in Britain as teachers, civil servants, train drivers, and university lecturers walked out over pay and working conditions. Around 500,000 workers are expected to participate. Britain’s government warned of “significant disruption”, with thousands of schools closed. Healthworkers and firefighters are planning more strikes soon.

Fact of the day: 100,000, the number of Russian exiles who have taken refuge in Georgia. Read the full story.


The Adani empire under threat

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What next for the Adani Group? On Wednesday the flagship company of the Indian conglomerate cancelled a secondary share offering, which had been fully subscribed, after its share price plunged. The rout started last week when Hindenburg Research, an American short-seller, accused the Adani Group of accounting fraud and share-price manipulation—charges that it forcefully denies.

The threat does not appear existential. Gautam Adani, the founder and until recently the world’s third-richest man, is considered an able operator and his companies own many valuable assets. No rating agency has yet reappraised the group’s debt, which boasts an investment grade.

Yet it is hard to believe that Mr Adani’s grand investment plans will be unaffected. Between 2023 and 2027 his group was forecast to spend more than $50bn on investments. If the yields on Adani bonds remain elevated and its share prices depressed, securing the necessary funds will prove difficult. Foreign investors are not taking any chances. In just two recent days, global funds pulled a net $1.5bn from the Indian stockmarket.

Sweden and Finland discuss NATO bids

PHOTO: ALAMY

When Sweden’s prime minister, Ulf Kristersson, welcomes his Finnish counterpart, Sanna Marin, to Stockholm on Thursday, he will be looking for a show of solidarity. After Russia invaded Ukraine the Nordic neighbours decided to give up their long-standing non-aligned status, and applied to join NATO. But they were blocked by Turkey, which like all NATO members has a veto. Turkey extracted promises from both countries to crack down on residents associated with the Kurdistan Workers’ Party (PKK), a violent separatist group in Turkey.

Now Turkey has new demands. Last month, for reasons unknown, a far-right Danish politician burnt a Koran outside Denmark’s embassy in Stockholm. The act prompted protests across the Muslim world. Turkey’s president, Recep Tayyip Erdogan, says he is ready to approve Finland’s NATO application, but that Sweden must outlaw Koran-burning before it can join. Mr Kristersson has condemned the act, but says his country’s laws on freedom of expression are non-negotiable. Ms Marin will no doubt pledge to stand by her Swedish friends.

 
Global democracy remains under threat
PHOTO: AP

The steady retreat of democracy that began in 2016 at last came to an end in 2022. Yet a hoped-for revival did not materialise. According to the Democracy Index, an annual snapshot published by The Economist’s sister company, EIU, the average score among 167 countries ticked up by just 0.01 points, to 5.29 out of 10. More than a third of people worldwide still live under authoritarian rule and less than half live in a democracy.

The lifting of pandemic-related restrictions almost everywhere last year—China was a notable exception until December—improved scores in the “civil liberties” category. But any gains were wiped out by democratic backsliding elsewhere. A bungled attempt by the now-ousted president of Peru to shut down Congress resulted in the country’s being downgraded to a “hybrid regime”. Burkina Faso suffered not one but two coups. But it was Russia that recorded the biggest democratic decline of any country in the world, falling 22 places to 146th.

The BoE’s interest-rate decision

The Bank of England is expected to raise its interest rate to 4% on Thursday, from 3.5%. The key question, though, is what signal the central bank’s nine-member monetary-policy committee will send about the pace of future rises. In November it noted that market expectations of where rates would peak were higher than its own. Market interest rates have since come down.

The committee may be more uncertain than usual about prospects for inflation, and thus interest rates. The bank’s governor, Andrew Bailey, has suggested that falling wholesale gas prices will make it easier to reduce inflation without steep increases in rates, which would be good news for the economy. But the bank’s chief economist, Huw Pill, has warned that Britain faces a unique combination of challenges that could cause inflation to persist more stubbornly than in America or Europe. If so, interest rates may have to continue rising more quickly and steeply than some observers expect.

 

Why China chooses to forget

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Zhang Hongbing’s mother was executed in 1970 after being branded a counter-revolutionary. Such horrors were not uncommon during the Cultural Revolution, a decade of Maoist madness that began in 1966 and saw up to 2m people killed for supposed political transgressions. But the case of Mr Zhang’s mother stands out, because he and his father had been her accusers.

Mr Zhang’s memory of the event seems strange to Tania Branigan, the author of “Red Memory”. He existed in it “as a Maoist algorithm: inputs, rules, outputs”, she writes. How people remember the Cultural Revolution—or why they have forgotten it—is the theme of her penetrating book.

China’s leader, Xi Jinping, has suppressed discussion of the Cultural Revolution. He has accumulated more power than any leader since Mao Zedong and created his own cult of personality. “What makes the era’s lessons so vital is also what makes them impermissible,” writes Ms Branigan.

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