Morning Brief: The world economy braces for impact

Top Story Countries around the world are rushing to boost their economies after a proposed $15 billion bailout for the U.S. auto industry died in the Senate. Up to 3 million jobs in the United States could be affected. Japan announced it will expand its fund to recapitalize banks to $131.1 billion. After an unusually ...

By , a former associate editor at Foreign Policy.
591145_081212_auto5.jpg
591145_081212_auto5.jpg

Top Story

Countries around the world are rushing to boost their economies after a proposed $15 billion bailout for the U.S. auto industry died in the Senate. Up to 3 million jobs in the United States could be affected.

Japan announced it will expand its fund to recapitalize banks to $131.1 billion. After an unusually public tiff between Britain and Germany over stimulus measures, the EU agreed on a $264 billion plan to revive the bloc's economy.

Top Story

Countries around the world are rushing to boost their economies after a proposed $15 billion bailout for the U.S. auto industry died in the Senate. Up to 3 million jobs in the United States could be affected.

Japan announced it will expand its fund to recapitalize banks to $131.1 billion. After an unusually public tiff between Britain and Germany over stimulus measures, the EU agreed on a $264 billion plan to revive the bloc’s economy.

Markets across Asia took a dive, with a long, painful day likely on Wall Street. Vice President Dick Cheney reportedly told Republican senators that a failed bailout would lead to “Herbert Hoover time.”

Europe

Meeting in Brussels, EU leaders agreed to cut carbon emissions 20 percent by 2020.

Secretary General Ban Ki-moon advocated a “green new deal” at the U.N. climate change summit in Poland.

Among the terror suspects arrested by the Belgian police on Thursday was a high-ranking female recruiter and spokesperson.

Asia

Visiting Afghanistan, U.S. Defense Secretary Robert Gates called for an increase in troop levels.

India unveiled new counterterrorism measures.

China’s economic downturn is leading to rioting and civil unrest.

Taiwan’s ex-president was indicted for accepting bribes.

Middle East

The U.S. plans to sign a nuclear cooperation deal with the United Arab Emirates, the first ever with a Middle Eastern nation.

Israeli Foreign Minister Tzipi Livni made an ill-advised statement that a Palestinian state would be a “national solution” for Israel’s Arabs.

Iran may be reducing its support for Shiite groups in Iraq

Africa

The International Red Cross said Zimbabwe’s cholera crisis may be getting better, though new cases continue to be reported. A prominent South African Anglican bishop referred to Zimbabwean President Robert Mugabe as a “modern-day Hitler.”

Eighty percent of Somalia’s armed forces have deserted, according to the U.N.

Americas

Bank of America will cut more than 30,000 jobs.

Mounting personal debts may have led Rod Blagojevich to his crimes.

A wire service in Miami for Cuban immigrants sending remittances to the island may have stolen $189,000 from 502 customers.

Today’s Agenda

Italy’s main labor union holds a nationwide strike to protest Silvio Berlusconi’s economic policies.

Photo: China Photos/Getty Images

Joshua Keating was an associate editor at Foreign Policy. Twitter: @joshuakeating

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