US politics

Credit Suisse executives testified before the US Senate Permanent Subcommittee on Investigations in what was at times a contentious hearing over allegations of tax evasion.

A scathing report from the subcommittee on Tuesday said that Credit Suisse made false claims in US visa applications, conducted business with clients in secret elevators and shredded documents to help more than 22,000 American customers avoid US taxes.

Credit Suisse chief executive Brady Dougan disputes the report’s claims, saying the bank conducted an expansive internal investigation, shut down client relationships and required US customers to prove tax compliance.

 

Obama’s zen-like State of the Union address
President Obama has just delivered his State of the Union speech to Congress. As usual, it was full of uplifting stories and calls for action, punctuated by standing ovations. But many believe that the sad reality is that this is a presidency that is running out of steam, and some of what Mr Obama had to say about the State of the Union was actually quite bleak. In this week’s podcast, Gideon Rachman is joined by Richard McGregor, Washington bureau chief and Edward Luce, chief US commentator, to assess the speech and the state of the presidency in general.

President Barack Obama went to Capitol Hill on Tuesday evening to make his fifth State of the Union address.

Mr Obama tried to get on the front foot earlier in the day with the news he will bypass Congress to raise the minimum wage for federal contractors.

The White House had lowered expectations for a speech that was short on big initiatives and long on “executive actions” – policies pushed by presidential decree, rather than going through lawmakers.

The test will be whether Mr Obama’s performance will achieve its objective of restoring his damaged popularity following the botched rollout of healthcare reform.

James Politi reported from Washington and Shannon Bond from New York

 

I arrived in VIP-full Davos with one prediction in mind: 2014 will be the year the world returns to normality or at least the semblance of normality with the tapered exit from quantitative easing.

After three days at high altitude, the prediction is intact and I have five other takeaways. Read more

By Gideon Rachman
The official theme for this year’s World Economic Forum is predictably bland – “Reshaping the World”. But the unofficial slogan will be “America is back”. Predictions that the US economy will grow by 3 per cent this year – added to worries about emerging markets – mean that Davos is likely to be bullish on America for the first time in years.

By Toby Luckhurst
Al-Qaeda: On the march Terror affiliates are active in more countries than ever, write Sam Jones, Borzou Daragahi and Simeon Kerr.
The rise of a new US federalism. Edward Luce says with federal government largely paralysed, the future is being shaped in the cities.
♦ The Economist looks at the effect a new era of automation will have on jobs. Previous technological innovation has delivered more long-term employment, not less. But, it notes, things can change.
♦ The New York Times reveals how Iraq’s government is paying and arming tribal militias to fight as its proxies in the battle against militants.
Rewriting the revolution. H.A. Hellyer in Al Arabiya News looks at the historical revisionism in play in Egypt.
♦ An infographic in the New York Times shows the cost per person of the US federal budget passed last week. Read more

Getty Images

First things first. Everything that happened on Friday, from President Barack Obama’s long-awaited speech on the National Security Agency to the long list of reforms published by the White House, would not have taken place without Edward Snowden.

When he first started leaking documents, the former NSA contractor said that all he wanted to do was initiate a debate. “I’ve already won,” he said last month. “For me, in terms of personal satisfaction, the mission’s already accomplished.” Read more

On Friday, seven months after Edward Snowden began leaking documents about the National Security Agency, President Barack Obama will give a speech in Washington outlining his plans to reform US electronic surveillance. Here are five issues to watch out for: Read more

By Richard McGregor in Washington

After sensitive details of the raid that killed Osama bin Laden began leaking, an infuriated Robert Gates, then secretary of defence, stormed into the office of Tom Donilon, the national security adviser.

“Why doesn’t everybody just shut the f*** up?” said the incensed Pentagon chief.

 Read more

President Barack Obama applauds Robert Gates at a ceremony to mark the latter's retirement as US defence secretary in 2011

Robert Gates, the former US defence secretary, is unusual in that he has a reputation both for being loyal – and for being outspoken. He has pulled off this feat by being a model of sober discretion in office, while throwing verbal bombs on his way out – or from retirement. In speeches given in 2011, shortly before stepping down from the Pentagon, Gates came up with two memorable zingers. He told European leaders that, unless they spent more on defence, Nato would become a “military irrelevance.” And he told West Point cadets that any future defence secretary who advised the president to send a big American land army into Asia or into the Middle East or Africa should ‘have his head examined.”

Now Gates is at it again. Extracts just-released from his memoirs include some tough criticism of President Barack Obama - including the suggestion that the president did not believe in his own Afghanistan strategy, and as a result was constantly looking for the exit. He recalls, sitting in the White House, watching President Obama discussing Afghanistan, and thinking “For him it’s all about getting out.” Read more

At the end of every year, I attempt a first draft of history by listing what seem to me to be the five most significant events of the past twelve months. Some of my picks for 2013 also featured in 2012. I hope this is not because of intellectual laziness, but simply because the war in Syria, and the turmoil in Egypt remain defining events of our era. I probably should also once again include the tensions between China and Japan – but they are still simmering and have not yet boiled over. So I’ll give the Senkaku-Diaoyu islands a rest this year.

So let me start the list for 2013 with a genuinely new event that has global significance: Read more

By Gideon Rachman
I executed a personal pivot to Asia this year, with separate trips to South Korea, Japan, Vietnam and China (twice). There was certainly plenty to write about – new leadership in China, Abenomics in Japan, Sino-Japanese confrontation, nuclear tensions on the Korean peninsula. Yet, on more than one occasion, I found myself sitting in a hotel room in East Asia – but writing about the Middle East.

By Gideon Rachman

What defines the west? American and European politicians like to talk about values and institutions. But for billions of people around the world, the crucial point is simpler and easier to grasp. The west is the part of the world where even ordinary people live comfortably. That is the dream that makes illegal immigrants risk their lives, trying to get into Europe or the US.

Marco Rubio in Washington DC (Getty)

Marco Rubio is running for president. Or, at least, that is the conclusion I drew from watching him give a speech on foreign policy at Chatham House in London, on Wednesday. The senator from Florida has not actually declared his candidacy yet. But giving “statesmanlike” speeches on world affairs in London is the kind of thing you do, if you want to burnish your credentials as a potential commander-in-chief.

So how did Rubio go down? Well, the audience was satisfyingly large – people were literally standing in the aisles. The senator himself gave a performance of two halves: a terrible speech, but a confident performance in the Q&A. Read more

By Luisa Frey

Back-channel conversations between the US and Iran paved way for the historic nuclear agreement and broke 34 years of hostility, writes the FT’s Geoff Dyer. Read more

By Gideon Rachman
For Barack Obama, striking a nuclear deal with Iran may turn out to be the easy part. The president’s biggest struggle now is facing down Israel and its supporters in the US as they attempt to rally opposition to the deal. The administration knows this and it is quietly confident that it can take on the Israel lobby in Congress – and win.

President Barack Obama’s nominee for Federal Reserve chair appeared before the Senate banking committee on Thursday. She mounted a vigorous defence of the Federal Reserve’s quantitative easing policy as she faced lawmakers in her first big test of political and communications skills.

Gina Chon and Shannon Bond reported from New York with James Politi in Washington.

 

Spying scandal spotlight moves from US to UK
As the scandal around spying and surveillance continues, Gideon Rachman is joined by James Blitz in the studio and Geoff Dyer down the line from Washington, to discuss the latest developments. Much of the focus in recent weeks has been on the activities of the US National Security Agency, but this week it was the turn of the British intelligence chiefs to give evidence in an open session of a Parliamentary committee, the first time that has ever happened. Did they say anything interesting? And are the intelligence agencies being held to account in the US?

Bill de Blasio (Getty)

By Luisa Frey

On Tuesday night 52-year-old Bill de Blasio won the New York mayoral election in one of the largest victories in the Big Apple’s electoral history.

De Blasio beat Joseph Lhota by a 49-point margin (73 per cent to 24 per cent), which is the widest in a mayoral election since Edward Koch won a third term in 1985 by 68 points. De Blasio is also the first Democrat to win in nearly 25 years. Read more

Bill de Blasio celebrates his election triumph with his family. Reuters

Three months ago, Bill de Blasio was trailing in fourth place in the crowded Democratic race to become the party’s candidate in the New York’s mayoral election. Yet on Tuesday night the 52-year-old public advocate swept to one of the largest victories in the city’s electoral history. This is how he managed it.

1) He played the the “Tale of Two Cities” card – the wealthy and less well off – to great effect. He promised to raise taxes on those earning more than $500,000 a year to pay for pre-school education – a policy President Barack Obama supported. Despite this, according to an exit poll in the New York Daily News, he still won among voters earning more than $100,000. Read more