That Was The Week That Was

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.

That Was The Week That Was

Politique
-Senator Barack Obama is elected 44th President of the United Sates of America. He is the first African-American elected to the oval office, and the first sitting senator elected president since JFK. Fun fact: Obama is technically the 43rd prez, as Grover Cleveland served two non-consecutive terms that historians count separately.

-Russian President Dmitry Medvedev throws down the gauntlet to President-elect Obama in his first speech to the national assembly since assuming office. How do you say "tactless" in Russian? (translation: "бестактный")

-DRC's North Kivu province descends into chaos. The ghosts of Rwanda still haunt us.

-Most senior mainland Chinese official visits Taiwan since 1949. New agreements solidify economic, transport, and trade ties.

Economia
-In his first press conference since election, President-elect Obama says that a new fiscal stimulus package will be his first action in office if a package is not passed by the lame-duck congress.

-US unemployment rate hits highest level in 14 years at 6.5%. Goldman Sachs says US job market is now in "full recession mode".

-Bank of England slashes rates 150bp to 3.0%, its biggest since 1992. European Central Bank cuts 50bp to 3.25%, signals further cuts. Many are seriously questioning ECB- rate cut is significantly smaller than expected, and ECB's 75bp cuts since onset of credit crunch is much less than BoE's 275bp and Fed's 425bp.

-US auto industry is on the verge of bankruptcy: cashless, credit ratings cut, and unable to tap the short-term funding. US policymakers are struggling to respond, wanting to avoid costly bailout of uncompetitive industry, but unwilling to let over a million workers fall into unemployment.

-IMF approves stand-by loan to Ukraine, Gordon Brown lobbies Saudis for IMF funding, and Fund reassures that its liquidity is sufficient for "today's problem".

The Rest
-After a terrible week for the club, Arsenal beats ManU 2-1 at the Emirates.

-Birmingham Mail reporter, in Miami celebrating Obama victory, creates a bit of an "internal matter".

-Fiction writer Michael Crichton dies at 66 in Los Angeles.

-Quantum of Solace sets UK box office record with ₤15.5m opening weekend. Six days until US release...