African default risk, multinationals plead for Nippon steel, sinification of the burger & boy meets machine tool
MWK Maschinendreherei Tröger, Fritz (1894-1978)- Maler
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Mourning women’s education in Afghanistan.
Although the International Day of Education should be a day of celebration, for millions of Afghan women and girls today’s commemoration is one of mourning: More than 400 days have passed since the Taliban’s ban on women’s university education and more than 800 days have passed since the Taliban banned women and girls from pursuing an education beyond sixth grade.
Source: GIWPS
African default risk and the credit ratings
Digging through the data of S&P Global offers surprising findings. Sub-Saharan African sovereigns rated in the B category between 2010 and 2023 defaulted in 22 per cent of all cases within five years. The respective global number stands at a long-term average of only 16 per cent. Over at Moody’s, the observed default ratios look similar at 30 per cent for sub-Saharan African sovereigns and 15 per cent for its global average. The default data shows that default rates of African sovereigns are higher at each rating level than that of their global peers. Africa’s ratings have been too high, not too low. The actual, objectively-observed bias in sovereign ratings has been in favour of Africa. This is not to belittle the severity of the debt crisis ravaging the continent and the consequent setback in its quest for progress and poverty alleviation. However, the data shows that much of African criticism of credit rating agencies is a red herring. The agencies are convenient scapegoats. African leaders should focus instead on pushing for faster debt restructuring mechanisms. Progress in this area has been at a glacial pace. Each day that goes by without removing the debt overhang intensifies the social and economic crisis in Africa.
Moritz Kraemer former ratings chief S&P in the FT
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Multinationals pressures Biden administration over Nippon steel purchase of US Steel
Large multinational companies are urging Joe Biden’s administration to keep politics out of any national security review of Nippon Steel’s purchase of US Steel after a bipartisan backlash to the deal in Washington. The Japanese company’s $14.9bn proposed acquisition of the Pittsburgh-headquartered steelmaker has provoked outrage from prominent lawmakers, with Biden administration officials calling for it to be investigated on national security grounds. The Global Business Alliance, a trade group representing the largest foreign multinationals investing in the US, on Tuesday wrote to US Treasury secretary Janet Yellen to ask her to focus “only on actual facts” in conducting any possible review, despite “the rhetoric being espoused from across the political spectrum”. Yellen chairs the Committee on Foreign Investment in the United States (Cfius), an inter-governmental agency that vets deals for whether they may harm national security. “Cfius should never become a tool for garnering political favour or allowing domestic competitors to achieve something they cannot do in a competitive market,” wrote Nancy McLernon, the GBA’s chief executive. “Efforts to delay or derail Cfius reviews could have far-ranging consequences, damaging America’s investment climate,” she said. President Biden himself has thrown his weight behind a possible national security investigation of the deal, despite Japan being one of the US’s closest military allies.
Source: FT
The costs of the US presence in the Middle East
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Dreher (Detail aus MWK Maschinendreherei) Tröger, Fritz (1894-1978)- Maler
Stand off with Niger
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US aid to Niger over the first quarter of 21st century amounts to:
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Sinification of the burger
McDonald’s and kfc brought burgers to China. When the first kfc opened in Beijing in 1987, customers queued up to get a taste. Back then the fast-food chains targeted well-off Chinese. But as incomes rose, such meals grew more affordable. Still, a big part of Tastien’s success is its prices, which are well below those of Western fast-food chains. Founded in 2012, Tastien started out making pizzas. It began selling burgers in 2017. Two years later it claimed to be the creator of the Chinese hamburger, though it was hardly the first to offer such a thing. Still, the patriotic marketing has gone down well. Tastien received a 120m yuan ($19m) investment from Chinese venture-capital firms in 2021. Until recently, it has focused on smaller cities where it faces less competition from Western chains. Now it is taking on rivals in big cities like Guangzhou and Shanghai. And the competition is growing. Local fast-food chains such as Running Panda and Chuzheng have also attracted sizeable investments. Many of these smaller chains offer burgers similar to Tastien’s and have adopted marketing strategies that emphasise their Chinese origins. Chinese burgers are part of a wider trend, called xinzhongshi (new Chinese style), which sees companies infusing elements from traditional Chinese culture into their products and branding. The label “Chinese style” has been attached to everything from coffee to fried chicken. There is a political tinge to the fad. Companies are capitalising on the nationalist tendencies of young people.
Source: Economist
“Boy” - very skilled boy - “meets machine tool”
How popular is the CCP?
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Bergmann vor Förderbrücke Tröger, Fritz (1894-1978) - Maler 1976/77 Source: SKD-online
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