The Diesel Apocalypse

Supermarket shelves lay empty, lawmakers fled a capital city running low on fuel and food, airports shut down, gas pumps ran dry, and a billion chickens clucked on the verge of death from starvation. This Mad Max scenario has played out in Latin America’s largest economy in recent days as Brazil’s truckers went on a nationwide strike over rising fuel prices, blocking hundreds of roads with their rigs.


For years, the Brazilian government subsidized fuel, but starting last year it decided to let fuel prices respond more freely to global oil prices in order to balance the books at the state oil company Petrobras. While that worked for a while, the recent surge in crude prices and a weakening currency combined to clobber Brazil’s truckers, and onto the roads they went. The government called in the army, but the truckers were unmoved. On Sunday, President Michel Temer (of the vaunted 5 percent approval rating) agreed, at a cost of close to $3 billion, to reintroduce diesel subsidies for two months.

The upshot: While Brazilians were split over whether to support the paralyzing strike, furor at the government and a refusal to pay higher gasoline prices is one thing that most agree on. One reason they don’t want to pay a cent more is because they reason that a venally-corrupted political class is probably stealing their money anyway. Before you raise our taxes or cut our subsidies, they are saying, stop siphoning our money into your pockets. As Brazil hurtles towards a pivotal election defined by anti-establishment anger, the fuel apocalypse shows just how broken the country’s social contract is.

No respite: Despite the partial truce with the truckers, Brazil is slouching towards a fresh crisis this week as the country’s oil sector workers threaten to strike starting on Wednesday.

The Business and Market Fair that recently took place in Sanzule, Ghana featured local crops, livestock and manufactured goods, thanks in part to the Livelihood Restoration Plan (LRP), one of Eni's initiatives to diversify the local economy. The LRP program provided training and support to start new businesses to approximately 1,400 people from 205 households, invigorating entrepreneurship in the community.

Learn more at Eniday: Energy Is A Good Story

Russia's Vladimir Putin and Ukraine's Volodymyr Zelensky sat down yesterday with Germany's Angela Merkel and France's Emmanuel Macron for a meeting in the Elysée Palace in Paris for peace talks. This was the first-ever meeting between Putin, Russia's dominant political force since 2000, and Zelensky, who was a TV comedian at this time last year.

Not much was agreed beyond a broader exchange of prisoners and a renewed commitment to a ceasefire that has never held. Fears that Putin would use Zelensky's inexperience to back him into a deal on Russian terms weren't realized, but the relationship between the two has only just begun.

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The UK currently benefits from EU trade pacts covering more than 70 countries. But if the UK leaves the EU without a trade deal in place, London could lose its preferential access to those markets. In preparation for such a scenario, the UK has signed 20 "continuity" agreements, allowing countries to keep trading with the UK under current rules even after Brexit. Here's a look at which countries and blocs have signed these deals with the UK, and the total value of each trade relationship.

Macron not backing down over pensions – Despite six days of mass unrest that has paralyzed Paris' public transport system and dented both tourism and Christmas retail, the government will stand firm on a proposal to reform and unify the country's 42 different pension plans. France's pension system, one of the most generous of any major industrialized country, has major budget shortfalls that contribute to the country's ballooning deficit. Last year, Macron abandoned a proposed fuel price hike that ignited the Yellow Vest movement. But overhauling France's "welfare state" was central to his 2017 election platform, and acquiescing to protesters this time around would be political suicide. France's prime minister – tapped to lead the pension reform project – is expected to announce the plan's final details tomorrow. We're watching to see how this might escalate things further.

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