Global economy

Behind Turkey’s volte-face on Isis, President Recep Tayyip Erdogan is fishing for nationalist votes by tarring as terrorists the pro-Kurdish coalition, argues David Gardner

Something is rotten with the eurozone’s hideous restrictions on sovereignty, writes former Greek finance minister Yanis Varoufakis, in response to allegations he planned to hack Greece’s tax system Read more

  • Amid the political noise, the historic nuclear deal between Iran and international powers is a victory for pragmatism in Tehran, writes Roula Khalaf
  • Greece’s creditors have destroyed the eurozone as we know it and demolished the idea of a monetary union as a step towards a democratic political union, argues Wolfgang Münchau
  • Republican presidential hopeful Donald Trump offers a megaphone to the noisy minority of Americans who believe they are losing the battle with modernity, writes Ed Luce
  • Europe’s creditor-in-chief has trampled over values like democracy and national sovereignty, and left a vassal state in its wake. Which country will be next? asks Philippe LeGrain (Foreign Policy)
  • We apologise to Marxists worldwide for Greece refusing to commit ritual suicide to further the cause. We elected a good, honest and brave man, who fought like a lion, writes Alex Andreou (Byline)

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  • Scott Walker, the “regular Joe” governor of Wisconsin and Republican presidential hopeful, needs to shrug off concerns that he is a foreign policy lightweight in his run for the White House
  • Young people are shunning cocoa farming in Ghana, leading to fears that production and productivity could be harmed in the world’s second-biggest grower of the soft commodity
  • Mexico’s most wanted drug lord, known as “Shorty”, has pulled off his second sensational jailbreak in 15 years – dealing a blow to the government which had taken pride in capturing top crime kingpins
  • A full transcript of the first interview with Yanis Varoufakis, the former Greek finance minister, since his resignation (New Statesman)
  • A nationalist militia in Ukraine engaged in a standoff with soldiers and police following a gun and grenade attack after its fighters confronted supporters of a local MP critical of the group (The Telegraph)

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  • July 2015 will go down in history as a continuation of hell for Greece, whose leftwing government has brought catastrophe to the nation, argues Tony Barber
  • The beginning of the end for Yanis Varoufakis, Greece’s finance minister who has just stepped down, began not in Athens, or even Brussels or Berlin, but in the small Baltic capital of Riga
  • Though Ivory Coast has staged a successful comeback since its civil war, some say the focus on the economy at the expense of reconciliation could come back to haunt the country
  • Mexico’s government wants to tame the disruptive teachers’ union which has seized public plazas, burned government buildings and choked off a city’s gas supply (Washington Post)
  • “Germany has never repaid”: In a forceful interview, French economist Thomas Piketty calls for a major conference on debt (Medium, orginally published by Die Zeit)

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  • Angela Merkel is taking her revenge on Greek prime minister Alexis Tsipras by insisting there can be no more talks on the country’s debt crisis until after its referendum on the bailout on Sunday
  • After China’s main stock index fell by 5 per cent yesterday, investors are blaming the share collapse on the securities regulator and the shadowy world of margin lending
  • An Egyptian soap opera set in a neighbourhood in old Cairo circa 1948 offers an empthatic portrayal of the Jewish community – and casts Islamists as the bad guys
  • Yes? No? Greek Voters Are Perplexed by a Momentous Referendum (New York Times)
  • In Ramadi, the Islamic State settles in, fixing roads and restoring electricity (Washington Post)

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Ali al-Naimi, the Saudi oil minister (centre), Bob Dudley the chief executive of BP (right), and Rex Tillerson, the ceo of ExxonMobil (left), are speaking at Opec’s international seminar about the oil market, ahead of Opec’s twice-yearly meeting on Friday in Vienna.

It is one of the few times in the year when senior representatives of the oil producers’ cartel share a podium with the heads of some of the world’s largest oil companies.

By Guy Chazan, Chris Adams and Lindsay Whipp

 

  • Despite being accused of naivety in his foreign policy, Barack Obama is showing qualities associated with Henry Kissinger – the arch-realist of US diplomacy, writes Ed Luce
  • Whether by design or accident, Athen’s Syriza-led government has achieved deep European harmony – but this has not produced agreement on a strategy for dealing with the Greek crisis
  • Dubai is hoping to be a bridgehead for deals with Iran as international investors prepare for a gold rush with the prospect of an end to nuclear sanctions in sight
  • Secret files from the Islamic State of Iraq and the Levant (Isis) show how former officials under Saddam Hussein helped design a blueprint for the militant jihadi group’s meteoric rise (Spiegel Online)
  • Who or what abdicated power in Grimsby, once the largest fishing port in the world and now a target for the UK Independence party, leaving swathes of it to rot? (London Review of Books)

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Three weeks to go until the UK general election, and whatever the result – most likely no party with an overall majority in parliament – the remarkable thing is the serious underperformance of the ruling Conservatives.

The Conservatives inherited a nascent economic recovery in 2010 from a desperately unpopular Labour government that had been in power for thirteen years, and, despite questionable economic policies such as excessive austerity, narrowly managed not to screw it up.

But instead of building on their modest 36.1 per cent vote share in 2010, which forced them to form a coalition with the Liberal Democrats, polls now show the Tories struggling to break above 35 per cent. Read more

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The European Central Bank’s governing council is meeting against a backdrop of an improving eurozone economy. The ECB kept its benchmark interest rate at a record low 0.05 per cent and its deposit facility at -0.2 per cent on Wednesday and is expected to continue its €60bn a month landmark quantitative easing programme.

But it is not all optimism in the eurozone. The ECB’s bond buying has helped push German 10-year bund yields towards zero raising concerns about the potential for distortions in financial markets, while jitters over the growing possibility that Greece could default on a debt repayment provides a great deal for ECB President Mario Draghi to discuss at his press conference, which starts at 1.30pm UK time. By Ralph Atkins and Lindsay Whipp

 

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The publication of “The Second Machine Age” by Andrew McAfee and Erik Brynjolfsson last year sparked a debate over the impact of technological change on the workplace. The spread of computers, alongside the high unemployment rates experienced by many rich countries during the Great Recession, have raised fears that advanced economies may be heading for an age of mass joblessness. Capital is set to replace labour on an unprecedented scale – so the argument goes – squeezing wages while entrepreneurs and shareholders enjoy ever fatter profits. Read more

The death of Lee Kuan Yew, the founding father of modern Singapore, has focused attention on the economic miracle he helped to create.

In the three decades since Lee first became prime minister in 1959 until he stepped aside in 1990, per capita income in the city-state rose by a factor of 29, jumping from around $435 to more than $12,700. Nearby Malaysia only managed a ten-fold increase, from $230 to around $2400.

Yet economists remain divided over the causes behind this remarkable take-off.

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  • Lee Kuan Yew, the founder and patriarch of modern Singapore who has died at the age of 91, was one of postwar Asia’s most revered and controversial politicians
  • In a fight between whales, the shrimp’s back is broken, according to a South Korean expression that sums up the country’s struggle to balance its strategic relationships with China and the US
  • Can economic optimism return quickly enough in Europe to prevent the further rise of extremist political parties? asks Gideon Rachman
  • Despite brutal punishments under Saudi justice drawing comparisons to Isis, avenues for mercy are built into the system that allow reprieves (New York Times)
  • It is used by almost a tenth of the world’s population, gives a buzz equivalent to six cups of coffee and is a symbol of love. But the humble betel nut is also sending tens of thousands to an early grave (BBC)

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In his Budget speech to parliament on Wednesday, the UK chancellor George Osborne indulged in the traditional needling of his opponents on the opposite bench. Whether it was a dig at Ed Miliband, Labour leader, for his two kitchens, or at the party’s recent electioneering in a “women-friendly” pink van, his jokes at the opposition’s expense met with the usual roars of raucous approval from his own benches.

But the second biggest target of his needling was rather more surprising – our friends across the Channel. Read more

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The spectre of deflation is seldom something to fear, according to economists at the Bank for International Settlements who argue that evidence which shows how price falls persistently cause economic havoc is weak.

The risk of a vicious bout of falling prices is viewed as the biggest threat to the global economic recovery by many of the world’s top economic policy makers. Earlier this year, fears of years of weak price pressures led the European Central Bank to unleash a €1.1trn landmark quantitative easing package in the face of fierce resistance from the German economic and political establishment. Read more

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Remarks by the president of Chechnya have sparked theories that Boris Nemtsov, the assassinated Russian opposition politician, fell victim to infighting in an opaque regime

Policy makers in some of the world’s largest economies have devalued their currencies in a bid to boost export-led recoveries, but there is evidence lower exchange rates do not always work

An unprecedented environmental protest movement in a remote part of Algeria has disrupted the country’s multibillion-dollar shale programme, and is making political waves across the region

Four years after a nuclear disaster, Fukushima’s farmers are struggling to sell their produce despite decontamination efforts as the region tries to stand on its own two feet (WSJ)

Win or lose in Tikrit, Isis can only be defeated in Iraq by the Sunnis, writes Hassan Hassan (The Guardian)  Read more