lifestyle leader

Politique
-Japanese Prime Minister Taro Aso announced a new, Y15,400bn fiscal stimulus package.

-All criminal charges against Jacob Zuma are dropped, clearing the way for the ANC head's election to the presidency later this month.

-An East Asia summit is cancelled as Thailand stands on the brink of "revolution." Elsewhere, tens of thousands of protesters rallied in the Georgian capital of Tbilisi for Saakashvili's resignation.

-An earthquake killed at least 250 people in Italy, leaving near 20,000 others homeless.

Economia
-Wells Fargo stunned Wall Street with a profitable Q1 2009, contributing to the fifth straight weekly gains for US stocks.

-The FT ran an interesting article on Japanese bank Nomura's move towards more "western-style" contracts for employees.

-Underlining the collapse of trade in Asia, Singapore's GDP "probably" shrank for the fourth straight quarter, the deepest recession in the country's history.

The Rest
-In Europe, Barca looked unbeatable in their thrashing of Bayern Munich, a sublime Adebayor goal put Arsenal in the driver's seat and Chealsea stunned Liverpool at Anfield.

-A Reuters piece asks, "Is America's love affair with the 'exurbs' over?"

-Art prices fell 35% in Q1 2009.

Politique
-The G20 reached deals on IMF funding, tax havens and trade finance. Bretton Woods it was not, but a productive start?
-North Korea launches an intercontinental ballistic missile (er, satellite), world condemns and an emergency security council meeting is called for Sunday at the UN.
-NATO agrees on a troop surge to Afghanistan, Rasmussen for Secretary-General.

Economia
-Mexico became the first country to seek access to the IMF's new no-strings-attached lending facility.
-The ECB cuts rates again and Trichet signals the possibility of unconventional measures to come.
-The mark-to-market rule is amended in the US, financial stocks soar.

The Rest
-In the Prem, Liverpool go top, Fab and Adebayor solidify Arsenal's hold on 4 in their return to action, while Shearer's big return to Saint James' Park is business as usual for the Magpies.
-Honda's new robotic helmet reads your mind. Matrix or Terminator?
-An Antarctic ice bridge the size of Jamaica has snapped.

Politique
-G20 finance ministers begin a tense weekend in the south of England amidst deep divisions over the way forward.

-The US deploys a warship to the South China Sea following a maritime incident between an unarmed US surveillance boat and five Chinese naval vessels, Wen Jiabao bangs the drum on US Treasuries...and these two things are related (see how things tie together so nicely?)

-Pakistan is on the verge of: a) another military coup, b) an unlikely political compromise, c) utter collapse.

Economia
-Switzerland moved to devalue the franc, raising fears of a "currency war" (i.e. competitive devaluations). It also reluctantly agreed to reform its bank secrecy laws and increase its cooperation on tax evasion.

-Reuters had an interesting report on the unusually sharp dissent within the US Federal Reserve over the bank's actions in response to the crisis.

-Bernard Madoff plead guilty to 11 charges related to his $50bn ponzi scheme, including securities fraud, mail fraud, money laundering and perjury. Sentencing is June 16.

The Rest
-Santino the chimpanzee has led scientists to question whether premeditation is in fact a uniquely human trait.

-Benoit Faiveley visits the last Palestinian keffiyeh factory in Hebron for Monocle (side note- its ironic that an essentially protectionist peace is sponsored by UK Trade & Investment)

-Alexander Lobrano explores Paris v. New York Eating (hint: he misses NYC). He then turns the tables in New York v. Paris Eating (hint: he misses Paris).

Politique
-Divisions emerge within Europe over EU rescue packages.

-The Sri Lankan cricket team came under attack in Pakistan, with six police officers killed.

-The ICC issued an arrest warrant for Sudan's president Omar al-Bashir for crimes against humanity in Darfur.

-UK Prime Minister Gordon Brown visited the White House and addressed a joint session of the US Congress. Then a bit of a row broke out (ok, within the British press) over the Obama's not-so-thoughtful gifts to the Browns.

Economia
-The Bank of England slashed rates to 0.5%, and embarked upon "quantitative easing."

-The US government pumped an additional $30bn into AIG.

-China's anticipated additional stimulus announcement came, and went, with no stimulus.

The Rest
-Arsenal, ManU and Chelsea go through in the FA Cup. Becks, Milan and LA Galaxy reach tentative deal to keep the England international at the San Siro until the end of the season, and possibly beyond. Becks reportedly put up his own cash to ensure his stay in Milan.

-Really, Medvedev? Really?

-Paris Fashion Week.

Politique
-Obama unveiled his massive 2010 budget proposal, much of which breaks with the conservative consensus that governed US policy for much of the past 30 years. $634bn in health care spending will be, in theory, offset by tax increases on American's earning over $250,000 a year. The US president also vowed to cut the deficit in half by 2012. More than a few people questioned the likelihood, and math, of this plan.

-Obama fulfilled a core campaign pledge by announcing a withdrawal date for US combat troops in Iraq (August 2010). He aims to have all troops out by 2011. Oddly, congressional Republicans embraced the president's announcement. Didn't their candidate for the oval office just run on not "cutting and running"? I guess after seeing their poll numbers plummet in the wake of their stimulus obstructionism, they latched on to a sure political winner.

-In Pakistan, Taleban leaders in Bajaur province declared a unilateral ceasefire, a week after a negotiated truce was reached in the Swat valley. In Islamabad, Nawaz Sharif and his brother Shahbaz, the chief minister of Punjab province, were banned from holding political office by the Supreme Court, causing the Punjab government to collapse and igniting protests. Political instability + balance of payments crisis + losing control of large portions of your territory = failed state.

-In her first foreign trip abroad, US secretary of state Hillary Clinton promoted pragmatism in US-China relations, overlooking human rights in favor of economic and financial cooperation...and US treasuries. Days later, a US State Department report laid the smack-down on China over the very issue Clinton skirted face-to-face. China was not pleased.

-Cracks in the Russian power structure?

Economia
-The central banks of Poland, Czech Republic, Hungary and Romania issued coordinated statements defending their currencies, while a consortium of international institutions announced a loan package for the troubled region.

-The US government increased its stake in Citigroup to as much as 36%, days after Bernanke and Obama sought to calm fears over nationalization. Bernanke said the debate essentially "misses the point." The US Treasury also provided details on its upcoming stress tests.

-ASEAN signed trade agreements with Australia and New Zealand.

-The defense of the rouble appears to have been a success. For now.

The Rest
-In the Champion's League, ManU held Inter to a draw in the San Siro, Arsenal beat Roma on a Van Persie penalty, and Liverpool beat Real Madrid in typical Kop Champion's League fashion. In the UEFA Cup, two of the favorites, AC Milan and Aston Villa, crashed out.

-This. Is. Crazy.

-The Times of London looks at "Japan: the nation that loves robots."

-Slumdog Millionaire was the big winner at the 81st Academy Awards.

Politique
-G7 finance ministers meet in Rome following the passage of an $787bn US stimulus package. US Treasury Secretary Geithner received a not-so welcome reception at the meeting, with some ministers critical of the US deficit and "Buy America(n)" provision present in the final bill. While the meeting provided window treatment to the tensions over protectionism, it is clear that a substantive lack of coordination and consensus is setting the global economy up for a period of tense economic relations. G7 communique text here.

-The Israeli election ended in a stalemate as Kadima won a shock 1-seat minority victory over Likud. The insurgent candidacy of far-right party Yisrael Beitenu and its leader Lieberman shook the political establishment, banishing Labour to the political wilderness and winning the key to an eventual coalition government.

-Venezuelans voted again on abolishing term limits. Chavez has raised tensions in the run up to this vote by denouncing an opposition and US-led "coup" plot.

-For the first time, Pakistan officially acknowledged that "some part of the conspiracy" against Mumbai was carried out on its soil.

Economia
-US Treasury secretary Geithner unveiled an "outline" of the Obama administration's financial system rescue plan. The heavy on intentions, light on details presentation was immediately rebuffed by markets, commentators and policymakers begging for more clarity and substance.

-Karl-Theodore zu Guttenberg assumed the economic portfolio in Angela Merkel's coalition. The move comes less than a week after it was announced that German industrial output fell in December by its largest margin since unification.

-In testimony before Congress, US director of national intelligence Dennis C. Blair said that the global economic crisis was the most urgent threat to US, and global, security. The global political instability, economic uncertainty and diminished US authority stemming from the crisis surpassed the threats posed by terrorism and nuclear proliferation.

The Rest
-In the FA Cup, Everton beat Villa, ManU over Derby, and Swansea forced a replay against Fulham at the Cottage. In other Prem news, Big Phil went bye bye. In Serie A, Becks looked set to return to L.A. after the MLS imposed Friday deadline (or tactic?) passed without a deal. In Spain, Raul broke the all-time goals record at Real Madrid.

-In the biggest study of its kind, researchers found that regular multivitamin use did little to prevent cancer or heart disease in older women.

-Walking down Amsterdam Avenue in Manhattan yesterday, my wife and I stumbled upon a disheveled, mad scientist looking Malcolm Gladwell. As we approached the best-selling author, he very clearly slowed down to walk parallel to us, awkwardly incapable of disguising the fact that he was eavesdropping on our animated, but admittedly unremarkable, conversation. I am convinced that we are now the subject of his next book, Caring for the Elderly, and demand royalties.

Politique
-US Vice President Joe Biden outlined the foreign policy vision of the young Obama administration in a speech at Munich. He called for a "reset" of US-Russian relations, offered Iran "meaningful incentives" to abandon its nuclear program, and called on America's allies (i.e. Europe/NATO) to shoulder a greater burden in security (Afghanistan, Guantanamo detainees). The speech comes days after Kyrgyzstan, under Kremlin pressure, announced it would close an American military base of great strategic importance. Russia embraced the "reset" concept.

-The US Senate reached a tentative deal on a $827 trillion stimulus package. After fierce political debate that all but shattered Obama's "post-partisan age", the Democrats appear to have picked off three Republican votes by cutting direct aid to states and localities and increasing the percentage of tax incentives in the bill (the bill cuts the size of the so-called 'middle-class tax cut' while increasing incentives to purchase homes and cars). Congress must now reconcile the House and Senate bills before a final package can be sent to Obama's desk.

-Morgan Tsvangirai returned to Zimbabwe to form a coalition government with Robert Mugabe. The president will sign a constitutional amendment allowing Tsvangirai to become prime minister, while a judge threw out treason charges against an important MDC figure.

-Abdul Qadeer Kahn, father of Pakistan's nuclear bomb and prolific nuclear proliferator, was freed from house arrest after 5 years. France and the US immediately criticized the move.

Economia
-The US unemployment rate hit 7.6% and GDP plummeted 3.6% in Q4 2008. According to The Economist, the fall would have been over 5% if not for a sharp rise in inventories. Elsewhere, German industrial output fell by a record 4.6% in December.

-The BoE cut rates to 1%, while the ECB held steady once again.

-Obama imposed a cap on executive compensation at companies receiving "exceptional assistance" from the US government. Politics 101: if you want to appeal to public anger, but have little intention of widely enforcing a rule, insert a vague definition like "exceptional assistance."

-The rouble floor announced by the Russian central bank was tested this week; traders are betting the floor was set too high; oil price and capital flows volatility will continue to weigh on the currency.

The Rest
-In the Prem, Torres fires Liverpool top of the table (for now), Chelsea are in free fall (bye bye Big Phil?), and Arsenal just suck. In Italy, Milan's initial formal offer for Becks was rejected outright by LA Galaxy.

-French street artist JR brought his "28 millimetres: Women" project to Kibera, Kenya. The artist imposes facial images on homes and buildings, providing an identity and voice to the women of one of Africa's largest slums.

-Over 84 people have been killed in Australia's deadliest fire disaster. The state of Victoria has been ravaged by the bushfires, fueled by a prolonged drought and soaring temperatures.

-Scientists have identified a key protein in the process by which the H5N1 virus replicates itself. It is hoped that the discovery will lead to more effective drugs to combat the virus. Egypt confirmed its second human case this year, while both Hong Kong and Vietnam announced new cases in birds.

Politique
-As the financial crisis rolls on, the next phase of government (re)action is developing: US House approves an $819bn stimulus package (with a certain provision we don't like very much) and the FT reports that Obama will unveil a "Big Bang" package of banking/financial/housing reforms this week (now next), Harper's minority government unveils a federal budget that includes the country's first fiscal deficit in over a decade, Merkel has reportedly settled on a plan to create government-backed "bad bank" vehicles to clean up balance sheets, and Aso unveiled his own stimulus package under considerable opposition (he also pledged $17bn in aid to other Asian nations).

-62% of Bolivian voters approved a new constitution in last Sunday's referendum. The new constitution increases the government's control over strategic industries (including natural resources), strengthens indigenous rights, and furthers land reform. Despite the popular majority, 4 of the country's 9 provinces voted against the changes.

-North Korea voided all political and military agreements with the South this week, as mounting tensions on the Korean peninsula threaten all out military conflict. While Kim's motivation is unclear, a few theories seem plausible: 1) he is pushing his way onto Obama's agenda, 2) he is provoking an international crisis to stem any internal revolt amid his ailing health, 3) he has lost control and hardliners are their authority over foreign policy.

-Social and political instability is spreading across Europe: Iceland's government fell, massive strikes paralyzed France, and British workers walked off the job to protest the use of foreign workers amid rising British unemployment. Nationalism, protectionism, and industrial action are all on the rise.

-Iraqis voted in provincial elections. Despite a lower than hoped turnout, the elections were peaceful.

Economia
-The IMF reduced its global GDP forecast for 2009 to 0.5%, and the global economy shed over 70,000 jobs in one day.

-Sterling had a small recovery this week on a slight confidence jump in UK banks, the Euro slipped amid eurozone economic weakness and lack of faith in the ECB, and the USD and Yen both endured "rollercoaster" weeks.

-Exxon Mobile reported record earnings for the 4th quarter. The Lex column in the FT praised the company for "generating free cash flows as others invested" during the good times, positioning itself to pick off rivals and acquire assets in the bad. This conservatism has acted as a hedge against the rapid fall in prices.

The Rest
-In the Prem, ManU go 2 clear with 1 in hand, Liverpool score 2 late to take all 3 from a 10-man Chelsea, and Arsenal throw up a big 0 at home against West Ham. Elsewhere, Becks scores his second for Milan as speculation mounts over his return to LA.

-In tennis, Nadal beat Federer in 5 for the Australian Open title. Rafa's performance was simply incredible, coming less than 48 hours after his Australian open record 5 hour, 14 minute semifinal match against fellow Spaniard Fernando Verdasco. Many took Federer's uncontrollable tears in the post-match ceremony as a sign that even the Swiss great doubted his ability to ever beat Nadal again in a major final and catch Sampras' record 14 major titles.

-In Olympic swimming, Oops!

-While much of the fashion world has been tailoring collections to reflect our dark economic times, these designers look to color.

-Move over Highlander, meet Turritopsis nutricula: immortal jellyfish.

Politique
-As the world limped into the new year, IPE Journal looked back at the defining political stories of 2008.

-Israel's Gaza operation entered its second week. A ground invasion is now underway to topple the Hamas regime and prevent further rocket attacks on Israel. The UN Security Council failed to reach a consensus position this weekend, despite an humanitarian situation characterized as "desperate."

-Czech President Vaclav Klaus assumed the rotating EU Presidency this week. After a widely praised and robust Sarkozy presidency, Brussels watchers are anxious that the "prickly" Klaus will undermine EU consensus on the financial crisis, climate change and, well, the EU itself.

-The Chinese government moved to silence the signatories of Charter 08, a "wide-ranging blueprint for peaceful political, legal and economic reform in China." The crackdown reflects the deep anxiety carried by the Chinese leadership into 2009.

Economia
-Entering 2009 with much economic and financial uncertainty, IPE Journal looked back at the economic stories of 2008.

-Another price dispute between Russia and Ukraine resulted in the suspension of natural gas deliveries to Ukraine, with reports of growing shortages from Turkey to the Czech Republic. Both Moscow and Kiev are courting European support for their position in the dispute.

-Sterling neared Euro parity for the first time, a milestone that might spark a much deeper sterling sell-off.

The Rest
-Now more than ever, we need distractions. IPE Journal looked back at the cultural, sporting and down right random things that captured our attention in 2008.

-In the FA Cup, Arsenal go forward on a Van Persie brace, while Man City crashes out in spectacular fashion. Notable 4th round ties: ManU v. Spurs, Liverpool v. Everton.

-40 drunken passengers run "riot" on Cuba bound flight from Gatwick. "Drunk", "Gatwick" and "riot" are three words I am not surprised to find in the same sentence.

-The Obama's arrived in Washington...let the parties, galas and Republican exodus begin.

Politique
-A cholera outbreak in Zimbabwe worsens as Mugabe stays silent, then denies, then blames the Brits. Meanwhile, Ghana brings some hope to African democracy.
-EU leaders burned the midnight oil to reach consensus on key climate change and fiscal stimulus proposals. Deep divisions remained over the extent of coordinated fiscal measures at the national level. Concessions made to Ireland in return for second Lisbon Treaty referendum, but leaders are careful not to instigate a backlash in the UK.
-US auto bailout dies in the Senate, as Bush is forced to reconsider the dedication of TARP money to the carmakers.
Economia
-Ecuador defaults, as President Correa brands debt "illegitimate" and foreign creditors "monsters".
-How low can Treasuries yields go?
-The WTO admits defeat for 2008.
The Rest
-In the Prem, Arsenal stumble out of the title race, Liverpool and Chelsea underwhelm, and Villa break the top 4.
-Fresh off their hostile takeover of Citi, Somali pirates express interest a certain vacant US Senate seat.
-US film industry awards season kicks off with Golden Globes nominations, New York and L.A. film critics awards.
-Bush gets two "steps" closer to retirement:

Politique
-US President-elect Barack Obama unveils details of his "21st century New Deal". The Economic Recovery Plan is preliminarily based on 5 pillars: energy, roads and bridges, schools, broadband, and electronic medical records. Many, including prominent members of his own party, are becoming increasingly frustrated with his "there is only one president at a time" line, as the sitting President appears to have checked out while Rome burns.
-The terrorist attacks on Mumbai end, the Indian investigation expands, and at least 29 people die from a car bomb in the Pakistani city of Peshwara. Blame for the attacks has focused on Pakistan-based Lashkar-e-Taiba (the likely perpetrators), the Indian government (early warnings, poor response, failure to hold Pakistan accountable), and the Pakistani regime (failure/inability to address sources of terrorism and militancy within its borders).
-A deliciously intriguing affair in the British House of Commons has ignited a fierce debate over Parliamentary independence, opposition politics, and police powers. Meanwhile, Canada has its own legislative controversy to deal with (find Dave's take here).

Economia
-The US learned it has been in recession since December 2007 (something everyone but this guy has been well aware of) and lost 533,000 jobs in November, the largest jobs decline in 34 years.
-Angela Merkel grew increasingly isolated in Europe as French President Sarkozy unveiled a €26bn stimulus package. UK Prime Minister Brown and Sarkozy will meet in London on Monday to renew their call for a coordinated European stimulus.
-An historic week in European central banking: BoE cuts 100 basis points to 2.0% (lowest level since 1951), ECB goes with 75 basis points to 2.5% (its largest single cut ever), and Sweden slashes a record 175 basis points to 2.0%.

The Rest
-In the Prem: Arsenal continue form following famous win at Stamford Bridge, Liverpool stay top, and ManU and Spurs on track for Carling Cup final. In Europe: Cristiano Ronaldo wins Ballon d'Or, reveals he was "an inch away" from being a Gunner in 2003.
-This week in Japanese innovation: omelets with the Motoman SDA10.
-"Experienced bandits" steal €85mn in luxury jewels from Harry Winston store in Paris. According to Reuters, the heist occurred almost a year to the day of a similar $16mn robbery at the store.

Politique
-G20 leaders arrived in Washington for a summit that had been hailed Bretton Woods II. With President-elect Obama avoiding the summit, and sharp differences between world leaders on the reforms needed to repair the international financial and economic systems, the summit ends like so many before it- with a consensus on principles, little coordinated action, and an agreement to meet again. Declaration text here.

-A regional war looms as the situation in the DRC deteriorates. African peacekeepers are impotent and declared targets by Nkunda, the number of foreign troops/mercenaries in the country grows by the day, and southern African leaders are threatening full-scale military involvement. The NYT looks at the role of minerals in the DRC's history of conflict.

-The EU agreed to restart talks on a strategic partnership agreement with Russia following an EU/Russian summit at Nice. Russia hasn't met the EU conditions set out as a prerequisite to talks following the conflict in Georgia, and it seems only Lithuania has the spine to say so.

-Iraq's cabinet approves new security pact with the US. The agreement extends US troop mandate through 2011.

Economia
-Paulson shocks congress with plan to spend remaining TARP money on capital injections into troubled institutions and companies and consumer spending. The Treasury will no longer purchase illiquid assets, and congressmen/women of both parties are screaming "bait and switch". Paulson deputy Kashkari testified before an angry House, with Rep. Elijah Cummings asking him, "Is Kashkari a Chump?"

-Treasury v. FDIC. FDIC's Bair wants to directly assist 1.5 million homeowners in the US, while Paulson resists a (*cough-cough*) "government spending program"- Paulson believes that his actions are "investments".

-Is a sterling run imminent? That's what George Osborne, Tory shadow chancellor, implied this week in criticizing Gordon Brown's fiscal plans. Osborne's political career is likely done. Sterling has hit a 6-year low against the dollar at $1.49, and Simon Derrick at BoNY Mellon believes sterling's position is now worse than Sept. 1992.

-Eurozone enters its first official recession.

The Rest
-India celebrates first lunar landing.

-This week in Japanese innovation: a robot that feeds you, and bionic legs.

-Arsenal's Prem title run is dead in the water.

-Gordon Brown: control freak.