Bear trap
Germany, Russia, China, the EU, Taiwan, Israel, Palestine, and the DRC.
The five things you need to know today:
GERMANY. RUSSIA. Trump wants Merz to own the risk.
CHINA. EUROPE. Small steps are made toward de-dollarisation.
CHINA. TAIWAN. Beijing and Taipei island-hop beyond the Strait.
ISRAEL. PALESTINE. Netanyahu’s remaining friends send a warning.
DEMOCRATIC REPUBLIC OF THE CONGO. Joseph Kabila arrives in Goma.
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GERMANY. RUSSIA. Mittel management
Trump wants Merz to own the risk.
Friedrich Merz arrived in Finland Monday for a summit of Nordic leaders. Finland summoned Russia's ambassador Monday over a suspected airspace violation. Merz said German weapons given to Ukraine had no "range limitations".
INTELLIGENCE. Germany is stepping up in Europe's defence. Its military chief has ordered a rearming, according to documents seen by Reuters. Merz's comments on range have revived rumours he will soon approve Taurus missiles to Kyiv. Ukraine is running out of US patriot missiles. These have had no range restrictions since November, but have underperformed during Russia's recent barrage. All to the power of Merz, then, yet with responsibility comes risk.
FOR BUSINESS. Merz, alongside Emmanuel Macron, is fast becoming Russia's main adversary in Europe, overturning decades of German hesitation and 'Ostpolitik'. This is long overdue, but Merz takes up the mantle just as the US is retreating – Handelsblatt says its troops will be reduced in the "coming months" – and as the Russian threat grows beyond Ukraine. His visit to Finland comes as thousands of Russian troops have been amassing across the border.
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CHINA. EUROPE. TINA turning
Small steps are made toward de-dollarisation.
The euro could become an alternative to the dollar, European Central Bank President Christine Lagarde said Monday. The People's Bank of China asked major lenders to increase their share of RMB in trade settlement from 25% to 40%.
INTELLIGENCE. Dollar bulls have long claimed 'there is no alternative' to the greenback, which has long been true.