By Luisa Frey
♦ Deflation is threatening Spain, which just emerged from recession– falling prices result in higher real value of debt, making families’ and businesses’ lives harder.
♦ In China, reforms announced by the Communist party are compared to “small repairs on an old road”.
♦ The New York Times revealed that JPMorgan Chase hired a consulting firm run by the daughter of Wen Jiabao, the former Chinese prime Minister and US authorities are scrutinising these ties as part of a wider bribery investigation.
♦ The New York Times also writes in its blog Sinosphere about a code used by Bloomberg to keep articles away from the eyes of powerful people in China.
♦ Since its independence, almost every political transition in the Central African Republic has come along with violence. The current conflict is no exception with the country risking genocide, writes Peter Bouckaert, emergencies director at Human Rights Watch. Read more
Most of the interest in the outcome of the Communist Party plenum in Beijing has focused on the economic decisions. But the Chinese government also announced that it plans to set up a National Security Council – which has obvious echoes of the White House decision-making apparatus.
The Chinese are not alone in making this move. Japan is also in the process of setting up a new National Security Council, which is meant to be operational by the end of the year. Some might find it a little ominous that at a time when Sino-Japanese tensions are so high, both countries are revamping their national security structures. But it could also be that the Chinese and Japanese are simply following foreign-policy fashion in the West. National Security Councils are all the rage. Britain set up an NSC in 2010, allowing the prime minister to chair regular meetings of all the senior ministers and officials dealing with security issues: foreign affairs, defence, intelligence and so on. Read more
China’s third plenum could lead to far-reaching reforms
Xi Jinping was appointed Chinese president just over a year ago and promised to shake up China’s economy. Now Mr Xi’s agenda for the next decade has become a little clearer with the conclusion of a party plenum in Beijing on Tuesday. In a statement the ruling Communist party pledged to implement wide-ranging economic reforms, with a greater role for market forces. In this week’s podcast Gideon Rachman is joined by Tom Mitchell, Beijing correspondent and James Kynge, editor of China Confidential to discuss whether this is a pivotal moment for the world’s second largest economy.
A house by Tacloban airport (Getty)
By Amie Tsang and Luisa Frey
The Philippines is no stranger to natural disasters. But in just a few days, it has been transformed from emerging market star – its economy grew at annual rate of 7.6 per cent in the first half of 2013, faster than China – to a “state of national calamity”.
Typhoon Haiyan will cause inevitable damage to the country’s economy, but loss of output will be dwarfed by the devastating loss of life.
The Asian Development Bank estimates that losses from typhoons and earthquakes cost the Philippines around $1.6bn each year. The World Bank estimates the annual typhoon season typically shaves 0.8 percentage points off annual GDP growth. Read more
By Luisa Frey
♦ Aid workers’ comparison of typhoon Haiyan’s devastation in the Philippines with the one after 2004 Indian Ocean tsunami is “daunting”, says Shawn Donnan. It raises questions about whether the world has learned lessons and will apply them now.
♦ In Europe, Germany’s “holy trinity” – tight monetary policy, export-led growth and financial system dominated by small banks – came under fire last week from the ECB and the European Commission, comment’s Peter Spiegel in Brussels.
♦ Three hospitals in northern Israel have been treating severely wounded Syrians, reports FT’s John Reed. Some of the wounded are civilians, while others acknowledge affiliation with the Free Syrian Arming fighting Bashar al-Assad.
♦ Outside private funds are helping sustain the Syrian conflict, writes The New York Times. They exacerbate divisions in the opposition and strengthen its most extreme elements.
♦ Mike Giglio, from BuzzFeed, tells the story of a Syrian activist who believes the revolution is already lost.
♦ Iran’s Supreme leader Ayatollah Ali Khamenei’s organisation Setad has been used to amass assets worth tens of billions of dollars. Its holdings rival the ones of the late shah and support Khamenei’s power over the country, according to Reuters. Read more
France’s increasingly assertive extreme right has provoked new outrage with the publication on Wednesday of a magazine cover comparing Christiane Taubira, the (black) justice minister, to a monkey.
The country’s mainstream parties, otherwise at each others’ throats in the current fraught political climate, united to condemn Minute, which splashed a picture of Ms Taubira alongside the caption: “Clever as a monkey, Taubira gets her banana back.”
(In French slang, banana means a smile.)
Prime Minister Jean-Marc Ayrault demanded legal action against the magazine, a call quickly followed by the opening of a preliminary inquiry by the Paris courts, while Manuel Valls, interior minister in the socialist government, said he was investigating the possibility of blocking its distribution. Jean-Francois Copé, leader of the centre right UMP party, backed the government’s stance. Read more
By Luisa Frey
♦ Typhoon Haiyan should remind us of something basic: the Philippines remains an extremely poor country, says David Pilling.
♦ Brazilian President Dilma Rousseff’s requirement that online information concerning citizens to be kept within the country sparks furore, writes the FT’s Brazil correspondent Joseph Leahy.
♦ The EU is trying to gather six former Soviet states in its Eastern Partnership programme. Ukraine, the centre of attention, could face Russia’s retaliation if joining.
♦ In an Iran hobbled by sanctions, organization Setad provides an independence source of revenue and patronage for Supreme Leader Ayatollah Ali Khamenei, reports Reuters.
♦ John Kerry’s Saturday-night meeting with his counterpart Laurent Fabius was a late turning point in three days of intense talks about a deal on nuclear Iran, according to The Guardian.
♦ In China, dozens of couples travelled to the birthplace of Mao Zedong to participate in a collective wedding. This comes amid growing divisions over how to define Mao’s legacy ahead of the 120th anniversary of his birth, reports Sinosphere, The New York Times’ China blog.
♦ The mystery surrounding recently discovered masterpieces stolen by the Nazis reveals much about Germany’s attempt to deal with its past, writes Spiegel Online. Read more
By Gideon Rachman
By blocking a deal on Iran’s nuclear programme, France has achieved the unusual feat of annoying the American and Iranian governments simultaneously. If the French had genuinely scuppered the chance of an agreement – making war much more likely – they would deserve all the anger directed at them. But by playing “bad cop” to the Obama administration’s good cop, the French have actually made it more likely that an eventual deal will achieve its goal of preventing an Iranian bomb.
By Luisa Frey
♦ Many Iranians were disappointed after the recent failure to reach a nuclear deal, but instead of the country’s chief nuclear negotiator, Mohammad Javad Zarif, they are blaming France.
♦ This year’s Ashura celebrations look different in Beirut. Alongside the traditional tributes to the Prophet Mohammed’s grandson Hussein, posters show young men killed in Syria’s civil war.
♦ It is estimated that 48,000 people are missing in Syria – victims of forced disappearances, massacres and executions. DNA advances are now helping to identify bodies from mass graves and bring warlords to trial, says a special report from The Guardian.
♦ In Europe, Poland struggles to break its dependency on coal power. One of Europe’s most coal-reliant economies, the country is a rather unlikely host for this week’s UN meeting on climate change.
♦ If ECB does not act, the euro risks resembling the yen of the 1990s and 2000s, says Mansoor Mohi-uddin, managing director of foreign exchange strategy at UBS.
♦ In China, population aging has not only social outcomes, but also affects economic performance and the country’s international competitiveness, writes Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations. Read more