Morning Brief, Friday, August 17

Asia

TIMOTHY A. CLARY/AFP

If the United States is now the weakest link in the global financial system, Asia may be the strongest. But you wouldn’t necessarily think so if you looked at the sinking Asian markets today. Investors around the world are becoming worried that the credit crunch will hurt economic growth. Hence the U.S. Federal Reserve just reduced the discount rate in order to “promote the restoration of orderly conditions in financial markets”. More on that story here.

Citizens in Hyderabad are trying to save the Indian city’s unusual rock formations from urban development. 

Pakistani film fans are ignoring fatwas to see a blockbuster musical called “In the Name of God”. 

Europe

French President Nicolas Sarkozy is calling for G7 finance ministers to address the subprime mortgage crisis. Other European officials are calling for investigations into credit-rating agencies.

A missile that landed in Georgia last week may well have come from Russia, a panel of international military experts hinted in a new report. Elsewhere, NATO is reportedly tracking the flights of Russian bombers, just like in the good old days.

U.S. officials are flocking to Paris as relations warm between the United States and France.

Middle East

Shiite and Kurdish political leaders announced a new political alliance that looks suspiciously like the old political alliance. More here.

Is there any “there” there when it comes to Middle East peace? Steven Erlanger of the New York Times says “Yes, but …”

Elsewhere

An Apartheid-era murder case is provoking controversy in South Africa.

Jose Padilla is guilty, a federal jury found. 

The death toll has reached 437 from the earthquake in Peru. 

Today’s Agenda

• Over a million cars are off the roads as Beijing test-drives a partial driving ban.

Yesterday on Passport

• Worst political reconciliation conference ever
• Why I’ll never curse the presidential motorcade again
• It’s easy to blame China, but not always right