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US President Joe Biden, Mexican President AMLO and Canadian PM Justin Trudeau arrive for a joint news conference at the conclusion of the North American Leaders' Summit in Mexico City.

REUTERS/Kevin Lamarque

What We’re Watching: Three Amigos huddle, Peruvian violence, East Asia travel curbs

Three Amigos talk and ... that's all, folks

Well, some progress is better than none at all — at least among “friends.” At their “Three Amigos” summit on Tuesday, US President Joe Biden, Canadian PM Justin Trudeau, and Mexico’s President Andrés Manuel López Obrador — known as AMLO — announced a slew of agreements on things like moving some US production of semiconductors to Mexico, cutting methane emissions to fight climate change, and installing EV charging stations on shared borders. But they failed to make significant headway on the thorniest issues: the record numbers of asylum seekers entering the US from Mexico; Mexican-made fentanyl causing a public health catastrophe for los gringos; and USMCA-related trade disputes such as Mexico's energy reforms or Canadian grumbling at the Biden administration's EV subsidies. Indeed, perhaps the best thing to come out of the summit is that Biden and AMLO — who had tense exchange on Day 1 — showed that despite their lack of personal chemistry, maybe they can be compadres after all.

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A woman in a protective suit walks past a shop as COVID outbreaks continue in Shanghai, China.

REUTERS/Aly Song

What We're Watching: China's COVID shenanigans, Oz olive branch, Peru vs. Mexico, Twitter succession

Counting China’s COVID deaths

In recent weeks, China has announced an abrupt about-face on its zero-COVID policy, which imposed tough (and economically costly) restrictions on freedom of movement inside China for the past three years. Despite predictions that a sudden end to existing COVID rules could contribute to one million deaths, the state has lifted lockdowns, ended many testing and quarantine requirements, and halted contact-tracing systems. For a government that works hard to persuade its people that it protected them from the COVID carnage in Western democracies, it’s a big risk. How to keep the number of COVID deaths down? Just redefine what counts as a COVID death. Going forward, only those with COVID who die of pneumonia or respiratory failure will be counted as COVID fatalities. (The US counts any death to which the virus contributed as a COVID death.) China’s change will make it much harder for Chinese health officials to properly allocate resources to respond to COVID spikes, and more infections will create mutations that generate new variants that cross borders. Officials in many countries, including the US, have argued over how to define a COVID death, but the question is especially sensitive in an under-vaccinated country of 1.4 billion people.

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A trader works on the trading floor at the New York Stock Exchange in New York City, U.S.

Reuters

What We’re Watching: Central banks vs. inflation, Peru’s endless crisis, Russian "energy terrorism"

Mixed messages from US, European central banks

In their last meeting of the year, two European central banks – the Bank of England and the European Central Bank – followed the US Fed in raising interest rates by 50 basis points, down from their most recent hikes of three-quarters of a percentage point. While central bank chiefs said that November’s numbers show that inflation has peaked, they also warned that this more mild rate hike should not be taken as a sign that they're taking their feet off the brakes. Facing sky-high energy prices and a tight labor market, the UK is on the brink of recession, economists say, while the EU is not far behind. Indeed, ECB chief Christine Lagarde admits that the eurozone will likely enter a recession next year, although says it will be “relatively short-lived and shallow.” Wishful thinking? Maybe. Lagarde also confirmed that eurozone inflation will remain above its 2% target into at least 2025 and warned of more belt tightening. Meanwhile, the Fed has now raised interest rates to the highest level in 15 years, and markets dipped in response to indications that higher rates would persist well into next year.

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Police secures the area in Berlin after 25 suspected members and supporters of a far-right group were detained during raids across Germany.

REUTERS/Christian Mang

What We’re Watching: German coup plotters, Peru’s self-coup, Xi’s Saudi visit, TSMC’s big investment

A thwarted German Jan. 6?

Is there a single German word for "narrowly averted right-wing coup attempt"? We aren't sure, but on Wednesday German authorities arrested 25 people accused of belonging to a domestic terror organization with plans to overthrow the government and replace it with German nobility in a throwback to pre-Weimar times. Some 3,000 police conducted raids in several German states as well as in Austria and Italy, detaining people associated with the Reichsbürger, a right-wing German conspiracy group, the far-right Alternativ für Deutschland party, and at least one Russian citizen. You’ll likely remember that a member of the AfD – a euroskeptic party that has capitalized on anti-immigrant sentiment in recent years to grow its base – tweeted after the Jan. 6 riot at the US Capitol that "Trump is fighting the same political fight — you have to call it a culture war." Harboring beliefs that Germany is being run by a “deep state'' (sound familiar?), the group reportedly planned to launch an armed attack on the Reichstag, Germany’s parliament. This is just the most recent reflection of a far-right extremist problem in Deutschland. Last year, the German government placed the AfD under surveillance for its far-right extremist affiliations, and early this year the government found that more than 300 employees in Germany's security apparatus harbored far-right views.

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Luisa Vieira

Is Latin America’s new “pink tide” for real?

Since it’s August we obviously can’t ask much of you, but try this for fun: take out a red marker and a black and white map of Latin America.

Now, color in all the countries currently led by leftist leaders. You’ll immediately be filling in five of the largest economies — Argentina, Chile, Colombia, Mexico, and Perú. By October, you’ll likely have added Brazil, the biggest of them all.

Along with stalwart leftists in Bolivia, Venezuela, Nicaragua, Cuba, and the new presidenta of Honduras, your map will have a big splash of rojo/vermelho bigger than any we’ve seen in at least 15 years. That’s when observers first hailed — or feared — a new “pink tide” in Latin America.

But is the region really back in the red, so to speak? Or is this pink tide different from previous ones? Spoiler: they are not the same. Let’s look at what’s going on.

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Somalia appoints former al Shabaab spokesperson as minister in Mogadishu

REUTERS/Feisal Omar

What We're Watching: Somalia's new cabinet, takeaways from US primaries, Peru's president in peril

Somalia appoints former al-Shabab militant to cabinet

Prime Minister Hamza Abdi Barre has named former al-Shabab spokesperson, Muktar Robow, as Somalia’s minister for endowment and religious affairs. A veteran of the Afghan war, who was training with al-Qaida in Afghanistan during 9/11, Robow helped found al-Shabab, which is fighting to overthrow the Somali government in a bid to invoke a strict interpretation of Sharia law. The militants have killed tens of thousands since 2007, and they’ve recently been involved in cross-border attacks in Ethiopia. Robow (aka Abu Mansour), who once had a $5 million bounty on his head, broke from the al-Qaida-linked militants back in 2017. Arrested by Somali authorities in 2018 to prevent him from running for office, Robow had been under house arrest in Mogadishu until last year, when he was taken back into custody. This week, he was released just before his new role was announced. As the new face of Somalia’s war against al-Shabab, Robow is tasked with helming the ideological battle against the terrorists. Some believe this will strengthen the government’s hand against al-Shabab, but critics fear it could lead to sectarian violence.

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President Pedro Castillo during the appointment of the new Prime Minister, Aníbal Torres.

Latin America News Agency via Reuters

New president falls victim to Peru’s messy politics

A series of scandals and resignations have forced Peruvian President Pedro Castillo to shuffle his cabinet four times in his first six months in office. Lawmakers have already tried to impeach him once. Though his latest cabinet shuffle could bring some respite, Castillo is not out of the woods yet — and may never be. Why all the turmoil? We asked Eurasia Group analyst Yael Sternberg.

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Russian President Vladimir Putin holds talks with U.S. President Joe Biden via a video link in Sochi, Russia December 7, 2021.

Sputnik/Sergey Guneev/Pool via REUTERS

What We’re Watching: Biden vs Putin, Rohingya vs Facebook, Peruvian congress vs president

Joe Biden and Vladimir Putin agree to disagree. But what a disagreement it is…. From what we know, during their Tuesday video call, the Russian president made clear that NATO’s flirtations with Ukraine are a red line, and that Moscow is prepared to defend its sphere of influence. The Kremlin also wants to see movement on the 2015 Minsk peace plan, which would give Russian-backed separatists in Eastern Ukraine broad autonomy. Biden meanwhile stressed that if Russia stirs up fresh trouble in Ukraine, the US is prepared to impose more severe economic sanctions. The US president also told Putin that Washington doesn’t accept the idea that Ukraine’s interests are subordinate to Russia’s. All of that leaves us more or less where we were before the call: Russia with more than 100,000 troops camped out on the Ukrainian border, and the US sounding the alarm about a possible invasion.

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