February 16-29

Details

• Over the next decade, the US government is scheduled to spend over $1 trillion on interest payments. The cost of issuance has also increased as interest rates have risen to high levels exceeding 5% in the aftermath of the pandemic. If the US government spends more on servicing its debt, the deficit will inevitably increase.

• The unique method of housing costs, calculated by the US Bureau of Labor Statistics, has such a large share in the Consumer Price Index (CPI) that it has outpaced everything else for nearly two years. The data showed that the average CPI inflation rate for housing from July 2022 to January 2024 was 7%, but the average inflation rate for everything else was just 1.2%. In January, the reported annual inflation rate for housing was 6.9%, while inflation for everything else was 1.6%.

• By 2023, more than 60% of US liquefied natural gas (LNG) exports were destined for Europe. A steady flow was vital to maintain Europe's energy security. The White House's decision on January 26 to halt new LNG export licenses sent a negative signal to encourage the reopening of gas flows from the east. Much of the call to limit US LNG exports was driven by climate concerns.

• Nearly 80% of S&P 500 companies reported fourth-quarter earnings. Many investors and experts believe that the only stocks that are doing well right now are the "Magnificent 7" (Apple, Alphabet, Amazon, Meta Platforms, Microsoft, NVIDIA and Tesla). These tech giants carry much of the heavy lifting of the market. Transportation costs have risen to a 15-month high as merchant ships continue to bypass the Houthi-controlled waters of the Red Sea to take the longer but safer route around the Cape of Good Hope.

• Sweden's decision to join NATO was seen as a step that would affect security dynamics in Europe. Experts argue that NATO's enlargement could threaten Europe's security. Sweden's joining NATO, which is thought to be useful in the conflict between Russia and Ukraine, is also seen as a trap set by the US for European countries. The US policy towards NATO could threaten Europe's independence and security.

•  The European Union's indecision to protect shipping in the Red Sea has increased with the Houthi attacks and tensions in the region. Initiatives such as Operation Aspides have shown that the EU's maritime power is weak and that it has not achieved its goal of becoming a stable maritime security provider. The Houthi attacks in the Bab El-Mandeb Strait caused a crisis that required EU action. It also exposed the shortcomings of the EU's maritime security strategy and operational capacity.

   

• Russia's invasion of Ukraine is negatively affecting Ukraine's agricultural output and trade and threatens global food security. Active conflict has led to the abandonment of agricultural land and a decline in production. Thanks to the Black Sea Grain Initiative brokered by Turkey and the UN, Ukraine has contributed to the global food supply by exporting grain and other agricultural products. Despite the challenges of war, Ukraine's agricultural producers continue to produce and strive to be a source of agricultural products for the world. 

• As the Israeli offensive on Gaza continued, the Israeli army shelled the city of Rafah, home to more than 1 million Palestinians. There are fears that the shelling of Rafah, known as the entry point for aid sent by the international community, will further increase the death toll in the region. The increasing attacks on Gaza are destroying agricultural land in the region and causing severe food insecurity for the Palestinian population. Since October 2023, almost half of Gaza's agricultural land has been destroyed.

• While examining the dual nature of Artificial Intelligence, the dual-use of the technology is emphasized. While distrust of AI companies is on the rise, the technology's potential to benefit humanity is not ignored. AI is making great advances in areas such as health, education and sustainable development, but its inner workings are unclear, leading to distrust.