Antonio Guterres, the secretary-general of the UN, called for an “immediate humanitarian ceasefire” in Gaza, and “the unconditional release of all hostages”. On Sunday Israel told more residents in eastern Rafah to evacuate as it prepares to intensify its operations there. Earlier this week President Joe Biden said America will not provide offensive weapons to Israel for Rafah. Israel also stepped up bombing raids on Jabalia refugee camp, in the north of the enclave.

Three people were killed and five injured in Russian attacks in the region of Kharkiv in north-east Ukraine, according to Oleh Syniehubov, its governor. In a new offensive that began on Friday, Russian troops have attacked 27 settlements. Mr Syniehubov said that 4,000 people have been forced to flee. Russian forces claim to have taken control of five villages.

Thousands of Georgians marched in Tbilisi, the country’s capital, against a government-backed bill that targets NGOs and media outlets receiving foreign funding. The bill was first considered in 2023, but was withdrawn after protests—before being brought back again this year. The law appears to be an imitation of measures in Russia, which have been used to silence critical voices.

South Korea’s government is planning to provide $7.3bn for chip investments and research, said the country’s finance minister. Yoon Suk-yeol, South Korea’s president, has described competition over semiconductors as an “all-out war”. South Korea is the world’s top producer of memory chips. It is building a chip “mega cluster” near Seoul, the capital.

Thousands of residents of the Canadian provinces of Alberta and British Columbia have been told to leave their homes because of the threat of wildfires. The government has warned that Canada is at risk of another “catastrophic” wildfire season because of forecasts of unusually high spring and summer temperatures across much of the country, thanks partly to El Niño weather conditions.

Flash floods in the north of Afghanistan killed 315 people and injured 1,600, according to the Taliban-run refugee ministry. Heavy rains on Friday sent rivers of mud coursing through villages and destroyed fields. Afghanistan, one of the world’s poorest countries, has endured a string of natural disasters this year, including other flooding and earthquakes.

Switzerland won the Eurovision song contest, held this year in Malmö, Sweden, seeing off competition from Israel, which took part even as its war in Gaza rages. Thousands of people joined protests against Israel’s inclusion. It was cleared to compete after changing some lyrics of its entry referring to Hamas’s attack on Israel on October 7th, and changing its title from “October Rain” to “Hurricane”.

Word of the week: Sulian dage, a Chinese phrase once used to describe the Soviet Union, meaning “Soviet big brother”. Read the full story.

In the run-up to America’s presidential election, we’ve launched The US in brief—a daily update to help you keep on top of the political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.

 

photo: reuters

Is Catalonia out of its secessionist mess?

In 2017 an unconstitutional separatist referendum shocked Spain and divided Catalonia. A regional election on Sunday will indicate whether some normality has returned.

No party will win a majority, but polls give the edge to the Socialists, who oppose independence. Two main rival separatist parties are closely matched. The Republican Left will probably face a hard choice after the election. One option will be to join forces with Junts (“Together”) on the centre-right—though the two hardly get on. The other will be to enter a Socialist government as a junior partner and see its independence drive paused. In exchange, it would haggle for more powers to be devolved to the region.

That scenario would further boost Pedro Sánchez, Spain’s prime minister, who heads a rickety coalition and recently threatened to quit office (only to say he’s staying). He has sought to cool the conflict in Catalonia, notably with a hugely controversial amnesty for the rebels of 2017.

photo: getty images

Lithuania’s push for more passports

Every year 1,000 Lithuanians renounce their citizenship to take another. The country of roughly 2.8m people bans holding a second passport. In the EU, only four others do so. But that could change after a referendum on Sunday—alongside a presidential election—on whether to allow the growing number of Lithuanians who live abroad to keep their passports.

A “Yes” vote would clear the way for parliament to begin work on a bill. It faces little opposition; last May all 111 MPs supported holding the referendum. The proposal would restrict the privilege to citizens of “friendly countries”. Those do not include Russia or Belarus, alleviating concerns among Lithuania’s sizeable Russian-speaking minority that they would be forced to disclose where their loyalties lie.

The last time Lithuania asked the question, in 2019, not enough voters backed constitutional change (72% voted in favour, but were only 40% of the population). This time, scheduling the ballot with the presidential poll should boost turnout.

photo: yujiao zhao et al.

How AI could boost MRI

Magnetic-resonance imaging is to soft tissue what the X-ray is to the bone: it lets doctors peek inside patients without cutting them open. But 50 years after its invention, the essential technology remains too expensive for many poor countries. In Africa, there are 0.7 MRI scanners per million people. (America has 40 per million and Japan has 55.) To narrow that gap, scientists reporting in Science, a journal, claim to have developed a cheaper, portable version of MRI—with the help of artificial intelligence.

The researchers use ultra-low-field MRI, which requires a smaller magnet and runs off a single wall socket, to scan the whole body. The resulting grainy image is then fed into a deep-learning programme to enhance it. The AI also cuts out electromagnetic interference, so that it no longer needs to sit in a radiofrequency-proof room. That would allow the technology to become available in more places, and even at patients’ bedsides.

photo: getty images

A momentous final for women’s football

In recent years three teams have dominated women’s football in England. Arsenal, Chelsea or Manchester City have won every edition of the Women’s Super League (WSL) and the Women’s FA Cup since 2015. But that run will end on Sunday. This year’s FA Cup Final will be contested between Manchester United—who saw off Chelsea in the semi-finals—and Tottenham Hotspur.

The finalists are hardly minnows: they sit fifth and sixth in the WSL table and have international stars in their midst. Mary Earps, who plays for Manchester United, was awarded the Golden Glove for being the best goalkeeper at the World Cup in 2023, while Spurs’ captain, Bethany England, is the second-highest scorer in WSL history. England’s national team have raised the profile of women’s football in recent years; the cup final will reflect its depth. That can only be a good thing for the sport.

photo: getty images

Weekend profile: Lawrence Wong, Singapore’s incoming prime minister

Singapore’s previous leaders have grown up singing a variety of national anthems. In the decades before it became independent in 1965, the country was occupied by Japan, colonised by the British and briefly part of Malaysia. Lawrence Wong, who becomes the city-state’s fourth prime minister on May 15th, notes that he is the first to have sung only one: at 51 years old, he will be the first leader born after independence.

Mr Wong takes over from Lee Hsien Loong, the son of the late Lee Kuan Yew, Singapore’s founding father who led the country for three decades. Mr Wong has humbler origins than his predecessors. He attended a local secondary school rather than one of the city-state’s elite institutions, then studied economics at the University of Wisconsin and the University of Michigan.

Before making a jump from the civil service to politics—a common move for the country’s leading politicians—Mr Wong had been principal private secretary to the younger Mr Lee. In 2011, Mr Wong was elected as a member of parliament with the People’s Action Party (PAP), which has governed the country without interruption since independence. His ascent in recent years has been relatively rapid by Singaporean standards. In January 2020 he became co-chair of the country’s covid-19 response, which made him well known. The year after, he became the finance minister, and in 2022 the country’s deputy prime minister.

The incoming prime minister marks a generational change—the handover to the “4G” (fourth generation) of leaders. But this is no revolution. The elder Lee turned a colonial entrepot into a gleaming metropolis, championing openness to trade, geopolitical neutrality and a technocratic government; Singapore’s GDP per person is an astonishing $88,000. Less attractively, he sought to destroy opponents and muzzled free speech. Mr Wong faces slightly more political competition. While the PAP still has a huge majority in Singapore’s parliament, Mr Wong concedes that an opposition presence is now permanent. He frames the challenge of his time in office as continuing the work of his predecessors: “My mission is to keep this miracle going for as long as I can.”

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Columbia University began suspending pro-Palestinian student protesters who had ignored an order from administrators to clear out their encampment, which contains around 80 tents. Earlier Minouche Shafik, the university’s embattled president, said Columbia would not divest from Israeli equities, one of the protesters’ key demands. She promised to invest in Gaza’s health care and education instead. On April 18th, at Columbia’s request, police arrested over 100 students for trespassing, prompting similar encampments at universities across the country.

Antony Blinken, America’s secretary of state, urged Hamas to accept a ceasefire proposal put forward by Israel, calling it “extraordinarily generous”. David Cameron, Britain’s foreign secretary, said that a 40-day truce was on the table. According to Reuters, the deal would involve the release of up to 40 Israeli hostages, in exchange for freeing Palestinians jailed in Israel.

A consortium that includes Skydance, a production company, stepped up its pursuit of Paramount Global by offering a $3bn investment in the Hollywood film studio. Skydance’s frustrated attempts to buy the firm have vexed investors and prompted the resignation of Bob Bakish, Paramount’s boss, on Monday. Paramount’s market value has fallen by half in the past two years, to under $9bn.

The semiconductor division at Samsung Electronics, the world’s largest memory-chip maker, returned to profitability for the first time since 2022. Memory-chip sales almost doubled to 17.5trn won ($12.7bn) in the first quarter of 2024 compared with a year earlier. The rise was driven by the boom in artificial intelligence. The firm’s share price rose by as much as 2.4% on Tuesday morning.

Activity in China’s factories grew for a second consecutive month in April, raising hopes of a sustained recovery. The official manufacturing purchasing managers’ index came in at 50.4 for the month (anything over 50 represents expansion), although this was lower than the 50.8 registered in March. The recovery is being driven in part by increased Western demand for Chinese exports.

Energy ministers representing countries in the G7, a club of rich democracies, reportedly reached a deal to phase out all coal-fired power plants by 2035. Ministers are meeting in Italy to discuss climate goals; they have been greeted by protests. Coal production must fall by more than two-thirds over the course of this decade to stay in line with global targets.

Paris’s public prosecutor said that Gérard Depardieu, a French actor, would be tried later this year for alleged sexual assaults of two women. Prosecutors say the incidents took place during the filming of “Les Volets Verts”, in September 2021. In addition to the charged offences, Mr Depardieu is under investigation for alleged rape, committed against the actress Charlotte Arnould. Mr Depardieu has previously denied wrongdoing.

Figure of the day: 650,000, the number of Ukrainian men of fighting age who have left the country. Read the full story.

In the run-up to America’s presidential election, we’ve launched The US in brief—a daily update to help you keep on top of the political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.


photo: reuters

Former boss of Binance faces prison

Changpeng Zhao, the co-founder and former chief executive of Binance, a cryptocurrency exchange, will be sentenced in federal court in Seattle on Tuesday. He has pleaded guilty to violating America’s Bank Secrecy Act by failing to follow its anti-money-laundering strictures. Binance was ordered to pay fines worth $4.3bn for the admission in November, after which Richard Teng, a senior executive with a background in regulation, took over as the firm’s boss.

American prosecutors want Mr Zhao to be sentenced to three years in prison, twice the amount recommended under official guidelines. They hope that will deter potential lawbreakers. In a letter to the presiding judge, Mr Zhao apologised for not establishing the necessary compliance controls.

Binance’s troubles are just one segment in a series of challenges and scandals for crypto exchanges. Sam Bankman-Fried, founder and chief executive of the now-defunct FTX exchange, was sentenced to 25 years in prison last month on several fraud-related charges.

photo: alamy

Another Gaza case at the ICJ

The International Court of Justice in the Hague usually attracts little attention, issuing judgments on such questions as who has ownership of rocks visible only at low tide. But many people will be watching its provisional ruling on Tuesday on a Gaza genocide case. Nicaragua brought the case against Germany over its arms sales to Israel. The ruling could have repercussions for other countries’ support for Israel.

On the face of it, Nicaragua’s argument looks weak: it wants the ICJ to find immediately that Germany is facilitating genocide by Israel, even though the court will not rule for several years on whether genocide is taking place. (That is the question in a separate case brought by South Africa.) Yet several of the ICJ’s judges have become increasingly outspoken about South Africa’s case, arguing that the court should order Israel to halt its military campaign. Those judges may look favourably on Nicaragua’s argument.

photo: getty images

All eyes on Amazon

Amazon reports its quarterly earnings on Tuesday. The firm has had a strong start to the year. Its share price has increased by 18%—compared with an average rise of 7% for firms in the S&P 500—partly because it published robust results in February.

Two factors will determine whether Amazon can continue its strong performance. One is Amazon Web Services, the e-commerce giant’s cloud-computing arm. It is the world’s biggest cloud service, accounting for over 30% of global spending. The cloud market is still growing swiftly. Yet both Microsoft and Alphabet (Google’s parent company) have big cloud services that are gaining market share. They reported strong results last week, buoyed by the surge in customers’ interest in artificial intelligence.

Meanwhile, Amazon’s retail arm is facing competition from Temu and Shein, two Chinese e-commerce upstarts, which have been splurging on advertising in an attempt to crack the American market. Investors will want to see how Amazon is handling its rivals.

photo: getty images

Spain’s banking derby

Forget the competition between Real Madrid and Barcelona, Spain’s most successful football teams. The country’s fiercest rivalry is really between Santander and BBVA, its two biggest banks.

Four years ago Santander had a market capitalisation of €56bn ($62bn), €28bn more than BBVA. But by the end of last year the gap between the two narrowed to just €12bn. During the first quarter of 2024 BBVA’s profits rose by 19%. Santander’s earnings, released on Tuesday, will probably be less impressive. That may encourage a further narrowing of the gap between the valuations of the two companies.

Differing fortunes in Latin America are one reason why the valuations are converging. Santander’s biggest market is Brazil, where a weak real and an increase in loan defaults have dragged down profits. BBVA, meanwhile, has concentrated on Mexico. Profits soared after it launched new digital services; BBVA Mexico is now the country’s biggest bank. To stay ahead in Spain’s banking derby, Santander will have to make better decisions abroad.

photo: toho co., ltd.

“Spirited Away” on stage

A stage adaptation of “Spirited Away”, Hayao Miyazaki’s Oscar-winning animated film, will open at the London Coliseum theatre on Tuesday. The folkloric, coming-of-age cartoon has been reimagined by John Caird, a director, who is best known for his production of “Les Misérables”, and by Toby Olié, a puppeteer. They bring to life Mr Miyazaki’s fantastical world with lavish costumes and impressive sets: his dragons, gremlins and talking frogs are no less technicolour.

The show, which sold out a tour of Japan, will be performed in Japanese with English subtitles. It follows an adaptation of another of Mr Miyazaki’s films, “My Neighbour Totoro”, which premiered at the Barbican in London in 2022. Each has splendid scores and elaborate puppets, which deftly mimic the movement of cartoon characters. In both music and motion, however, “Spirited Away” is more ambitious. The cartoon—one of Japan’s highest-grossing films—changed animation forever. It may yet change stagecraft, too.

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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.

In the run-up to America’s presidential election, we’ve launched The US in brief—a daily update to help you keep on top of the political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.


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.

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Diplomats urged Iran to exercise caution after America warned that the Islamic Republic could launch a “significant attack” against Israel. Germany’s foreign minister urged her Iranian counterpart to exert “maximum restraint”; the Kremlin said it was critical for Middle Eastern countries to avoid “a complete destabilisation of the situation”. America asked other countries, including China and Turkey, to urge Iran not to attack Israel. “Whoever harms us, we will harm them,” said Binyamin Netanyahu, Israel’s prime minister.

Joe Biden said America’s defence commitments to Japan and the Philippines were “ironclad”, at a summit of the three countries’ leaders. Mr Biden said that an attack on Filipino ships in the South China Sea would “invoke” the America-Philippines defence treaty. China spuriously claims almost all of the sea, and regularly hassles littoral countries’ vessels there. On Wednesday America beefed up its military ties with Japan.

Truong My Lan, a property tycoon and one of Vietnam’s wealthiest people, was sentenced to death after she was found guilty of bribery, embezzlement and violating banking rules. Prosecutors said some $12.5bn was embezzled. Ms Lan had denied wrongdoing and can appeal against the sentence. The trial is part of the “blazing furnace” anti-corruption campaign launched by Vietnam’s ruling Communist Party.

Russia launched a big attack on Ukraine’s infrastructure, destroying the Trypilska electricity plant, Kyiv’s biggest power plant. Strikes also hit power plants elsewhere in Ukraine, leaving around 200,000 people in Kharkiv, the second-largest city, without electricity. Seven people were killed and many more were injured.

The European Central Bank voted to keep interest rates steady at 4%. However, it signalled that rate cuts could come soon: the central bank said it “would be appropriate” to lower rates if inflation keeps falling. This was the first time the ECB has publicly discussed cutting rates since it began tightening policy. The economy is weak: growth across the euro zone averaged 0.4% last year.

Mizuhara Ippei, a former translator for Ohtani Shohei, a Major League Baseball mega-star, was charged with bank fraud. Federal prosecutors in Los Angeles say that Mr Mizuhara stole $16m from Mr Ohtani to pay off gambling debts. The Justice Department said it had no evidence that Mr Ohtani was aware of the scheme.

Orenthal James (“O.J.”) Simpson, a former American-football player whose murder trial in 1995 gripped America, died aged 76. Mr Simpson, who was black, was acquitted of killing his ex-wife and her friend, who were both white. Some 150m people watched the verdict live on television. The result left Americans “screeching with anger or squealing with delight”, The Economist wrote at the time.

Figure of the day: $25trn, the value that climate change and the fight against it could wipe from the world’s housing by 2050. Read the full story.

In the run-up to America’s presidential election, we’ve launched The US in brief—a daily update to help you keep on top of the political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.


photo: getty images

China’s economy in the spotlight

China’s economic data were encouraging in the first two months of the year. Both inflation and exports were stronger than forecast. Indeed China’s trade surplus has fanned fears about its industrial overcapacity. On Monday Janet Yellen, America’s treasury secretary, warned during a trip to Beijing that flooding the global market with “artificially cheap Chinese products” could put the “viability” of foreign firms into question.

Can China’s upturn last? The data for March will provide some clues. Figures released this week showed that consumer prices rose by only 0.1% compared with a year earlier, suggesting the rise in inflation earlier in the year was largely a result of the Chinese new year holiday. Trade figures released on Friday are also likely to be weak in comparison with last year, when China’s ports enjoyed a post-pandemic boost. If the data are disappointing, China can at least claim that its export machine is not as scary as its critics think.

photo: ap

A row over US Steel

Kishida Fumio, Japan’s prime minister, received a pomp-filled welcome in Washington this week. Nippon Steel has faced a far frostier reception in the Capitol since the Japanese steelmaker struck a deal to buy US Steel, America’s third-largest producer of steel, for $15bn in December. On Friday US Steel’s shareholders will vote on the aquisition. They will probably approve the agreement, but staunch political opposition to the transaction could still cause it to fall apart.

Last month President Joe Biden said the steelmaker should remain domestically owned, joining Donald Trump and the union representing steelworkers in calling for the deal to be scrapped. Nippon is yet to throw in the towel, though the transaction now faces scrutiny from America’s investment-screening watchdog and antitrust authorities. Markets do not rate Nippon’s chances of success—shares in US Steel currently change hands at around a 25% discount to Nippon’s all-cash offer.

photo: getty images

Trouble on Wall Street

Three of America’s biggest lenders—Citigroup, JPMorgan Chase and Wells Fargo—will report first-quarter earnings on Friday. Investors will be watching for signs of trouble. Data released on Wednesday showed a bigger rise in the consumer price index than expected, suggesting that inflation is yet to be vanquished. Interest rates may remain higher for longer than bankers expected.

That has upsides for lenders (more interest income) but also risks. It will keep up the pressure on their borrowers, who might struggle with repayments. Commercial-property losses have piled up at smaller banks, while consumers have been falling behind on auto and credit-card loans. Bankers’ interest costs have been climbing, too, as customers take advantage of high-yield savings accounts.

Shareholders will be watching Citi especially closely, after it completed an overhaul of its business at the end of March. The bank laid off 5,000 people, including 1,500 in management roles. Its earnings should reveal the cost of the transition.

photo: alamy

Britain’s Post Office scandal

Between 1999 and 2015 almost 1,000 sub-postmasters in Britain’s Post Office were wrongfully convicted for theft and other charges owing to a faulty online payments system. For decades, the scandal was under-reported. The company insisted the system worked, while campaigners strove to prove otherwise. The arguments were technical and a little dull: neither politicians, nor the public, paid much attention.

That all changed in January, when a hit television series dramatised the affair. Politicians promised exoneration and compensation. Some suggested executives should hand bonuses back or be criminally prosecuted. Paula Vennells, the Post Office’s former chief executive, returned her CBE, a national honour. A public inquiry that will last months is now hearing from many of those involved. On Friday Alan Cook, another former executive, will face questioning. He has said he will “never forgive himself” over the scandal. It is unlikely that others will be ready to forgive either.

photo: alamy

Amy Winehouse’s immense musical legacy

In 2011 Amy Winehouse, a British singer, died, aged 27. She was a figure about whom fans knew everything and nothing. Each salacious detail of her chaotic life was exposed in the media glare. But the reality of what made her—and her music—tick was more obscure.

Alas, a film biopic, “Back To Black”, released in Britain on Friday, offers few insights. It focuses on Winehouse’s troubled marriage and her time in the public eye. The narrative of a tragic celebrity addict overshadows the impact of her work, which was not only thrilling in its own right but also defined a style of pop music. One artist after another has vied for her vacant throne as the queen of dramatic retro soul. None has yet claimed it. But the breakout success of Raye—a record winner at this year’s Brit Awards—could change that. And prove that Winehouse’s musical legacy is greater than her tabloid legend.

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Russia charged four men with carrying out the terrorist attack in Moscow that killed 137 people. The men were identified as citizens of Tajikistan. Islamic State has claimed responsibility for the rampage, but Russian officials have tried to put some of the blame on Ukraine. Volodymyr Zelensky, Ukraine’s president, called Russian leaders “scum” for linking the attack to his country. Meanwhile, France raised its terrorism alert to its highest level.

The UN’s agency for Palestinian refugees said Israel had barred it from delivering aid to northern Gaza, where a famine looms. According to the UNRWA, Israeli military officials relayed the decision without explanation. The head of the agency called it “outrageous”. Meanwhile, Israeli forces continued their assault in southern Gaza, surrounding two hospitals, according to a Palestinian NGO.

Prosecutors filed eight new corruption charges against Singapore’s former transport minister. S. Iswaran, who denies any wrongdoing, was arrested last year and now faces a total of 35 charges. The new allegations accuse him of receiving kickbacks worth around $14,000. The case has shocked the usually scandal-free city-state. A minister was last charged with corruption there in 1986.

Bassirou Diomaye Faye took an early lead as votes were counted in Senegal’s presidential election. Amadou Ba, the ruling coalition’s candidate, warned him not to celebrate prematurely. The vote, which was constitutionally required to take place last month, was delayed by the president, Macky Sall, prompting violent protests. Mr Sall is not standing this time. Senegal has been a rare beacon of stability and democracy in west Africa.

Nissan said it would cut its electric vehicle manufacturing cost by 30% to be more competitive against Chinese rivals. The Japanese carmaker has struggled to build affordable EVs and has lost ground in the Chinese market. As part of a new business plan, the firm will launch 30 models over the next three years, including eight “new energy” vehicles in China.

China announced procurement rules that would phase out the use of American microprocessors built by Intel and AMD from government computers. According to the Financial Times, state agencies have been instructed to purchase “safe and reliable” chips—all from Chinese firms. The guidelines are part of a campaign to replace foreign technology with homegrown products, mirroring efforts by America to reduce reliance on Chinese companies.

In Ecuador Brigitte García, the 27-year-old mayor of the town of San Vicente, was found shot dead in her car, alongside her communications director. Ms Garcia was from the left-wing Citizen Revolution Movement party. The country has been plagued by a drugs war. Last August Fernando Villavicencio, a presidential candidate and outspoken critic of organised crime, was assassinated.

Figure of the day: 30%. The fee collected by Apple, a tech giant, on most purchases made using the App Store. Read the full story.


photo: getty images

Singapore’s fragile recovery

In February Lawrence Wong, Singapore’s deputy prime minister, warned that inflation in the city-state remains high. He announced a package of handouts to help Singaporeans cope with rising prices, after the country raised its goods and services tax to 9% in January. Data released on Monday justified the assistance. The core inflation rate, which strips out volatile food and energy prices, rose by 3.6% year on year in February, up from 3.1% in January and the fastest pace in seven months. The jump was partly caused by an increase in consumer spending over the lunar new year.

Singapore expects output to grow by 1-3% this year, but the government warns of “significant” global risks. An important one for the trade-dependent city-state is further disruption to supply chains, given the wars in Ukraine and Gaza. Nonetheless, experts surveyed by Singapore’s central bank have raised their GDP forecasts for the year, mostly because of faster-than-expected growth in manufacturing and construction.

photo: getty images

Guatemala’s president visits the White House

On Monday America’s vice-president Kamala Harris will welcome Bernardo Arévalo, Guatemala’s newly inaugurated president, to the White House to talk about Central American migration. The Arévalo administration is trying to re-engage in international diplomacy and work with officials in the United States to improve economic conditions at home so fewer feel compelled to leave.

When Ms Harris was tapped to be Joe Biden’s border czar three years ago she was tasked with tackling the “root causes” of migration in the Northern Triangle countries of El Salvador, Guatemala, Honduras. But as the number of border crossings has since swelled to record highs, she has consequently garnered immense criticism for that narrow focus. Migrants from the Northern Triangle make up a much smaller share of arrivals than they used to. In December the US border patrols intercepted roughly 60,000 migrants coming from there—from elsewhere the number was up to 190,000. The changing nature of America’s border crisis makes the Biden administration’s job of defending its policies on the campaign trail even harder.

photo: reuters

Belarus’s Freedom Day in name only

On Monday Belarusians mark Freedom Day. The unofficial holiday commemorates the day in 1918 when the first independent Belarusian state emerged from under 150 years of Russian occupation. It is rejected by President Alexander Lukashenko, a close ally of Vladimir Putin. Celebrating it has thus become a way for his critics to show defiance.

Few in the country will openly disobey him. The Belarusian strongman has clamped down on dissent and locked up some 1,500 political prisoners, according to Human Rights Watch. And with a presidential election coming next year, Mr Lukashenko is curbing civil society.

Instead, Freedom Day will be marked by the growing number of Belarusians who have fled the country—roughly a tenth of the population since Mr Lukashenko came to power in 1994. The opposition leader, Sviatlana Tsikhanouskaya, herself in exile, encourages them to write to political prisoners and fly Belarusian flags. That is no substitute for freedom itself.

photo: reuters

MTN has a big Nigerian problem

As Africa’s digital economy expands, the continent’s network providers have been on a roll. Smartphone use continues to grow, and businesses and consumers demand faster mobile internet. All this has seen Africa’s major telecoms providers enjoy sales growth of 29% over the past five years, despite pandemic-related setbacks, according to Bloomberg. The Johannesburg-based conglomerate MTN, Africa’s biggest telecoms firm by revenues, reports its financial results on Monday.

They will be watched closely. For all its recent success, MTN has problems. Its largest user base is in Nigeria, Africa’s most populous country, which is in the grip of a crippling currency crisis after a series of devaluations. MTN’s Nigerian subsidiary, which is responsible for up to a third of the company’s earnings, has reported foreign-exchange-linked losses of $570m. Group-wide headline earnings per share (a measure of profitability) are expected to fall by over 60%. It is a worrying signal.

photo: afp

Europe’s ever-closer union, by rail

German electronic-music giants Kraftwerk fantasised about a “Trans-Europe Express” as far back as 1977. On Monday Europe finally gets the real thing: a 15-and-a-half-hour overnight service linking Brussels to Prague. The 720km-journey is already covered by several daily flights, which take around 14 hours less than the train. But planes are out of favour with those mindful of their carbon footprints (and trains retain a romantic appeal for many).

Leaving in the early evening three times a week, the train will putt-putt its way through Antwerp, Rotterdam, Berlin, Dresden and a dozen other stops before arriving in Prague just before 11am. Sleeper carriages, inevitably stuffed with snoring fellow travellers, are available.

Cheap air travel saw off once-common night trains in Europe. But they are enjoying something of a renaissance, thanks in part to public money. A Paris-Berlin service was launched last year, and a train linking Amsterdam and Barcelona is planned for 2025.

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