What We’re Watching: Italian Squabbles, Merkel’s Worries

Italy's Squabbling Leaders On Monday, Prime Minister Giuseppe Conte threatened to resign unless Five Star and the League, the two parties that form the country's populist governing coalition, stop bickering and start working together. Campa cavallo (fat chance!) as they say. Tensions between the two parties have surfaced in recent weeks as Five Star's popularity wanes and League party leader Matteo Salvini becomes more popular and more aggressive in setting the country's political agenda. The results of last month's European Parliament elections have only accelerated the diverging fortunes of the two parties, leaving many to wonder if Salvini might just make a risky push for a snap election.

Pressure on Angela Merkel's government - More bad news this week for German Chancellor Angela Merkel, who governs via an increasingly fragile and unpopular partnership between her Christian Democratic Union and the rival Social Democratic Party. Both parties did poorly in the recent EU Parliament elections. On Sunday, SPD boss Andrea Nahles said she would step down, and on Monday the head of Germany's leading industry association said it had lost faith in Merkel's grand coalition. With pressure mounting on all sides, Merkel can either try to ride it out, risk snap elections, lead a minority government, or seek a new coalition partner altogether before her fourth and final term expires in 2021.

What We're Ignoring: Xi in Russia, Duterte's Gay Bait

Xi in Moscow – Chinese President Xi Jinping arrives in Moscow today for a state visit with Vladimir Putin before heading to St Petersburg, where he'll be a guest of honor at a big Russian investment conference. Russia and China are seeking closer cooperation at a time when both countries have rocky relations with the United States. But while neither of them likes a world where the US is a sole superpower, their own relationship is still limited by mutual suspicions and meager economic ties beyond oil. Beijing's number one trade partner is still the US, after all, while Russia doesn't even make the top ten. Chinese companies will certainly sign Russian deals in the coming days, but at the grand strategic level, we're not sure what precisely Russia can offer Beijing that it doesn't already have.

Duterte's Gay Bait – During a visit to Tokyo last week, President Rodrigo Duterte of the Philippines announced that he had "cured" himself of homosexuality with the help of "beautiful women." You might think this is the kind of comment that would get an elected official in trouble, particularly since its purpose was to insult a political rival he claims is gay and "uncured." But we're confident we can ignore any risk of political fallout. After all, his past claim that God is a "stupid son of a bitch" in a country that's 80 percent Catholic didn't cut into his 81 percent approval rating or prevent his party from increasing the number of congressional seats it holds in last month's elections.

In Italy, stacks of plastic boxes in supermarkets and stores are not garbage - they are collected and reused, thanks to a consortium that specializes in recycling them for food storage. How do these "circular" plastic boxes help reduce energy consumption and carbon dioxide emissions?

Learn more in this episode of Eni's Energy SUPERFACTS series.

British economist Jim O'Neill says the global economy can bounce back right to where it was before, in a V-shaped recovery. But his argument is based on a lot of "ifs," plus comparisons to the 2008 recession and conditions in China and South Korea that may not truly apply. Ian Bremmer and Eurasia Group's Robert Kahn take issue with O'Neill's op-ed, on this edition of The Red Pen.

Today, we're taking our Red Pen to an article titled "A V-Shaped Recovery Could Still Happen." I'm not buying it. It's published recently by Project Syndicate, authored by British economist named Jim O'Neill. Jim O'Neill is very well known. He was chairman of Goldman Sachs Asset Management. He's the guy that coined the acronym BRICS, Brazil, Russia, India, China. So, no slouch. But as you know, we don't agree with everything out there. And this is the case. Brought to you by the letter V. We're taking sharp issue with the idea that recovery from all the economic devastation created by the coronavirus pandemic is going to happen quickly. That after the sharp drop that the world has experienced, everything bounces back to where it was before. That's the V. Economists around the world are debating how quickly recovery will happen to be sure. But we're not buying the V. Here's why. W-H-Y.

More Show less

Over the past few years, we've seen three major emerging powers take bold action to right what they say are historical wrongs.

First came Crimea. When the Kremlin decided in 2014 that Western powers were working against Russian interests in Ukraine, President Vladimir Putin ordered Russian troops to seize the Crimean Peninsula, which was then part of Ukraine. Moscow claimed that Crimea and its ethnic Russian majority had been part of the Russian Empire for centuries until a shameful deal in 1954 made Crimea part of the Ukrainian Soviet Republic. Americans and Europeans imposed sanctions on Russia. But Ukraine is not part of NATO or the EU, and no further action was taken.

More Show less

Nicholas Thompson, editor-in-chief of WIRED, provides his perspective on technology news:

Will the new audit of Facebook civil rights practices change the way the company operates?

Yes. It came under a lot of pressure from civil rights activists who organized an advertising boycott. And then an internal audit on Facebook's effect on civil rights came out. It was quite critical. Those two things, one after the other, will surely lead to changes at the company.

More Show less

The United States and the European Union have comparable population sizes, but their COVID-19 death toll trajectories have recently become very different. Since the beginning of July, the average number of both new fatalities and new deaths per 1 million people is rapidly increasing in the US while it remains mostly flat in the EU. We compare this to the average number of new cases each seven days in both regions, where the US trend continues upward but is not surging like the death toll. EU countries' robust public health systems and citizens' willingness to wear masks and maintain social distance could explain the disparity.