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A person wearing a protective suit sits in the Beijing Railway Station after China lifted its COVID-19 restrictions in Beijing, January 20, 2023.

REUTERS/Thomas Peter

Hard Numbers: China zeroes out zero, German tanks run low, Turkey jails a journalist, Greek train crash, police find ‘spiritual girlfriend’ in Peru

0 x 0: Remember China’s zero-Covid strategy? No you don’t, at least not if you’re the Chinese Communist Party, which is now aggressively zeroing out public mentions of the draconian lockdowns that kneecapped the country’s economy and provoked rare widespread protests against Xi Jinping. Here’s our own portrait of zero-Covid life from last spring.

62: Despite promising to give tanks to Kyiv, Germany and other NATO allies have struggled to rustle up enough of them — 62 to be precise — to fill two Ukrainian battalions worth. Part of the problem is that no one on the continent has planned for a major European land war in 30 years, so tanks, parts, and trainers are limited.

10: Turkey has sentenced a journalist to 10 months in prison for posting an unsubstantiated allegation that police officers and soldiers had sexually assaulted a young girl. This is the first jail term handed down under a new law meant to combat disinformation that critics fear will be used to stifle criticism of the government.

36: A train collision has killed at least 36 and injured dozens more near the city of Larissa in northern Greece. Railway employees reported that there were issues with electric coordination of traffic control, despite recent modernization of Greece’s railway system, which is operated by Italy’s state-owned railway company Ferrovie dello Stato Italiene.

1.5: The sentence you are about to read does not end the way you think it will: Police searching a delivery man who was acting drunk at a Peruvian archaeological site found in his backpack a 1.5-meter tall pre-hispanic mummy named “Juanita.” He said the mummy, which once belonged to his dad, lives with him as “a kind of spiritual girlfriend.” We love this LatAm remake of "Fin de Semana at Bernie’s.

A protester interacts with police during a demonstration against Peru's President Dina Boluarte in January 2023.

REUTERS/Alessandro

Chaos is the only winner in Peru

If it seems like Peru’s last few governments can’t catch a break, you’re not far off. Peruvian governments collapse like you fall asleep: slowly ... and then all at once.

Last year’s chaos under President Pedro Castillo showed us that, and the new Dina Boluarte administration will likely suffer a similar fate. Under Castillo, a string of efforts to oust him on the basis of “moral incapacity” and criminal investigations into him and members of his inner circle chipped slowly away at his mandate for a year and a half, only for it to entirely crumble in a matter of hours. In one day, Castillo attempted to illegally dissolve Congress, got ousted by Congress, was arrested and transferred to preventive detention, and was succeeded by his vice president.

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US President Joe Biden, Mexican President AMLO and Canadian PM Justin Trudeau arrive for a joint news conference at the conclusion of the North American Leaders' Summit in Mexico City.

REUTERS/Kevin Lamarque

What We’re Watching: Three Amigos huddle, Peruvian violence, East Asia travel curbs

Three Amigos talk and ... that's all, folks

Well, some progress is better than none at all — at least among “friends.” At their “Three Amigos” summit on Tuesday, US President Joe Biden, Canadian PM Justin Trudeau, and Mexico’s President Andrés Manuel López Obrador — known as AMLO — announced a slew of agreements on things like moving some US production of semiconductors to Mexico, cutting methane emissions to fight climate change, and installing EV charging stations on shared borders. But they failed to make significant headway on the thorniest issues: the record numbers of asylum seekers entering the US from Mexico; Mexican-made fentanyl causing a public health catastrophe for los gringos; and USMCA-related trade disputes such as Mexico's energy reforms or Canadian grumbling at the Biden administration's EV subsidies. Indeed, perhaps the best thing to come out of the summit is that Biden and AMLO — who had tense exchange on Day 1 — showed that despite their lack of personal chemistry, maybe they can be compadres after all.

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A woman in a protective suit walks past a shop as COVID outbreaks continue in Shanghai, China.

REUTERS/Aly Song

What We're Watching: China's COVID shenanigans, Oz olive branch, Peru vs. Mexico, Twitter succession

Counting China’s COVID deaths

In recent weeks, China has announced an abrupt about-face on its zero-COVID policy, which imposed tough (and economically costly) restrictions on freedom of movement inside China for the past three years. Despite predictions that a sudden end to existing COVID rules could contribute to one million deaths, the state has lifted lockdowns, ended many testing and quarantine requirements, and halted contact-tracing systems. For a government that works hard to persuade its people that it protected them from the COVID carnage in Western democracies, it’s a big risk. How to keep the number of COVID deaths down? Just redefine what counts as a COVID death. Going forward, only those with COVID who die of pneumonia or respiratory failure will be counted as COVID fatalities. (The US counts any death to which the virus contributed as a COVID death.) China’s change will make it much harder for Chinese health officials to properly allocate resources to respond to COVID spikes, and more infections will create mutations that generate new variants that cross borders. Officials in many countries, including the US, have argued over how to define a COVID death, but the question is especially sensitive in an under-vaccinated country of 1.4 billion people.

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A trader works on the trading floor at the New York Stock Exchange in New York City, U.S.

Reuters

What We’re Watching: Central banks vs. inflation, Peru’s endless crisis, Russian "energy terrorism"

Mixed messages from US, European central banks

In their last meeting of the year, two European central banks – the Bank of England and the European Central Bank – followed the US Fed in raising interest rates by 50 basis points, down from their most recent hikes of three-quarters of a percentage point. While central bank chiefs said that November’s numbers show that inflation has peaked, they also warned that this more mild rate hike should not be taken as a sign that they're taking their feet off the brakes. Facing sky-high energy prices and a tight labor market, the UK is on the brink of recession, economists say, while the EU is not far behind. Indeed, ECB chief Christine Lagarde admits that the eurozone will likely enter a recession next year, although says it will be “relatively short-lived and shallow.” Wishful thinking? Maybe. Lagarde also confirmed that eurozone inflation will remain above its 2% target into at least 2025 and warned of more belt tightening. Meanwhile, the Fed has now raised interest rates to the highest level in 15 years, and markets dipped in response to indications that higher rates would persist well into next year.

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FTX CEO Sam Bankman-Fried attends a press conference at the FTX Arena in downtown Miami.

Reuters

What We're Watching: Bankman-Fried in cuffs, China after "zero," Peru's next vote, Japan's proposed tax hike

FTX’s Sam Bankman-Fried in cuffs

Sam Bankman-Fried, the shaggy-haired founder of FTX known colloquially as SBF, was arrested Monday night at his apartment in the Bahamas. FTX, the once booming crypto exchange, imploded last month after investors grew worried about the firm’s financial standing, leading to massive withdrawals. Unable to pay customers out, SBF had been funneling investors’ funds to a crypto hedge fund, while Bankman-Fried had also used billions of dollars to fund risky wagers. SBF, who ultimately declared bankruptcy last month, has recently been compared to infamous con artists like Bernie Madoff. On Tuesday, US federal prosecutors are set to release the indictment, which includes a host of financial crimes, including wire fraud and money laundering. What’s more, SBF’s arrest came the night before he was due to testify to the US Congress about the collapse of his $32 billion empire. It's unclear whether the former crypto whiz will fight extradition efforts.

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Police secures the area in Berlin after 25 suspected members and supporters of a far-right group were detained during raids across Germany.

REUTERS/Christian Mang

What We’re Watching: German coup plotters, Peru’s self-coup, Xi’s Saudi visit, TSMC’s big investment

A thwarted German Jan. 6?

Is there a single German word for "narrowly averted right-wing coup attempt"? We aren't sure, but on Wednesday German authorities arrested 25 people accused of belonging to a domestic terror organization with plans to overthrow the government and replace it with German nobility in a throwback to pre-Weimar times. Some 3,000 police conducted raids in several German states as well as in Austria and Italy, detaining people associated with the Reichsbürger, a right-wing German conspiracy group, the far-right Alternativ für Deutschland party, and at least one Russian citizen. You’ll likely remember that a member of the AfD – a euroskeptic party that has capitalized on anti-immigrant sentiment in recent years to grow its base – tweeted after the Jan. 6 riot at the US Capitol that "Trump is fighting the same political fight — you have to call it a culture war." Harboring beliefs that Germany is being run by a “deep state'' (sound familiar?), the group reportedly planned to launch an armed attack on the Reichstag, Germany’s parliament. This is just the most recent reflection of a far-right extremist problem in Deutschland. Last year, the German government placed the AfD under surveillance for its far-right extremist affiliations, and early this year the government found that more than 300 employees in Germany's security apparatus harbored far-right views.

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Newly elected National Rally leader Jordan Bardella with the outgoing Marine Le Pen during the party congress in Paris.

Lafargue Raphael/ABACA via Reuters Connect

Hard Numbers: French far-right handover, Big Oil makes big bucks, China vs. COVID, Peruvians want prez out

50: For the first time in 50 years, the main French far-right party will not be captained by a Le Pen. Marine Le Pen, daughter of founder Jean-Marie Le Pen, has now handed over the reins of the National Rally to Jordan Bardella, 27, in a clear play for young voters.

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