The Great Tory Panic What Will Modi Do Next? Raytheon and UTC Join Forces Germany’S Anonymous Billionaires

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The Great Tory Panic What Will Modi Do Next? Raytheon and UTC Join Forces Germany’S Anonymous Billionaires https://t.me/finera The great Tory panic What will Modi do next? Raytheon and UTC join forces Germany’s anonymous billionaires JUNE 15TH–21ST 2019 H ng K ng Financial Era Advisory Group Contents The Economist June 15th 2019 3 The world this week Britain 6 A round-up of political 21 Tory no-dealers and business news 22 Drones at airports 23 Lib Dems seek a leader Leaders 23 Hargreaves Lansdown 9 The rule of law and the Woodford affair Hong Kong 24 SOAS sends out an SOS 10 The ECB Presidential credentials 25 Victims’ rights in court The BBC v OAPs 10 British politics 25 Conservative clown show 26 Bagehot Tories flirt with extinction 12 Sudan Stop the war Europe On the cover 14 The European Union A Balkan betrayal 27 Banning buying sex Huge demonstrations have 28 Emmanuel Macron’s Act II rattled Hong Kong’s Letters 29 Ivan Golunov’s ordeal government—and the On Brazil, water, chess, leadership in Beijing: leader, 17 30 German greenery Britain, criminal justice, page 9. The territory’s people 30 A Moldovan oligarch Germany, the Bible, look like losing a security that presenteeism 32 Charlemagne English is dear to them: briefing, in the EU page 18 Briefing • The great Tory panic The United States 18 Hong Kong candidates to be prime minister A palpable loss 33 Black lives longer are throwing away the 34 Buffet, ABBA and Bernie Conservative Party’s reputation 20 International reaction 35 Moving leftwards for economic prudence: leader, Caught in the crossfire page 10. Hardliners say a no-deal 35 Religious freedom Brexit would be fine. Moderates 36 Burying New York’s poor say it could be stopped by 37 Green New Democrats Parliament. Both may be in for a 38 Lexington Southern nasty surprise, page 21. The Baptists question is not who will lead the Tory party, but whether it will survive: Bagehot, page 26 The Americas 39 North America’s • What will Modi do next? alternative diplomacy India’s prime minister should use his second term for reform, 40 Bello Brazil’s corruption page 47. Official GDP figures investigations have been disavowed—by a 41 Colombia’s ayahuasca former official, page 65 41 Canadian basketball • Raytheon and UTC join forces Banyan Australia’s Military and industrial pressures easy-going image cloaks a Middle East & Africa are behind America’s biggest bossy and vindictive 42 Sudan on the brink government, page 50 defence merger: Schumpeter, 43 Shocking schools in page 60 Senegal • Germany’s anonymous 44 Free speech in Nigeria billionaires We report from 44 Gay rights in Africa inside the secretive world of Iraq’s Kurds rising Germany’s business barons, 45 page 55 46 The riches of the Gulf 1 Contents continues overleaf https://t.me/finera 4 Contents The Economist June 15th 2019 Asia Finance & economics 47 India under Modi 64 The ECB’s next president 48 The recycling trade 65 India’s growth mirage 48 Flipping Japanese names 66 Martin Feldstein’s legacy 49 An election in Kazakhstan 66 Hidden government debt 49 South Korean energy 67 What will the Fed do? 50 Banyan Australia’s nanny 67 An anti-poverty failure state 68 Buttonwood Talking to Robert Merton China 69 Technology and big banks 51 The rare-earth weapon 70 Free exchange Capitalism 52 Teenage debaters and democracy Science & technology 71 Small satellites 72 Orbital intelligence 73 A better way to edit genes International 74 Sparking creativity 53 Air-traffic control: congestion in the sky 74 Puncture-proof tyres Books & arts 75 The internet’s gatekeepers 76 Elif Shafak’s new novel 77 Arson in Australia Business 78 Alma Mahler 55 Meet Germany’s tycoons 78 Opera in the Gulf 56 Bartleby Guilds of the future 57 Drugs by drone Economic & financial indicators 58 Video games in the cloud 80 Statistics on 42 economies 59 Big tech and antitrust 59 Tesla's tribulations Graphic detail 60 Schumpeter An offensive 81 Cricket’s sizzle owes much to India defence merger Obituary 82 Claus von Bülow, villain or victim? Subscription service For our full range of subscription offers, including digital only or print and digital combined, visit: Volume 431Number 9147 Economist.com/offers Published since September 1843 to take part in “a severe contest between You can also subscribe by post, telephone or email: One-year print-only subscription (51 issues): Please intelligence, which presses forward, and an unworthy, timid ignorance Post: The Economist Subscription UK..........................................................................................£179 obstructing our progress.” Services, PO Box 471, Haywards Heath, RH16 3GY, UK Editorial offices in London and also: PEFC certified Amsterdam, Beijing, Berlin, Brussels, Cairo, Telephone: 0333 230 9200 or This copy of The Economist Chicago, Johannesburg, Madrid, Mexico City, 0207 576 8448 is printed on paper sourced Moscow, Mumbai, New Delhi, New York, Paris, from sustainably managed San Francisco, São Paulo, Seoul, Shanghai, Email: customerservices forests certified by PEFC Singapore, Tokyo, Washington DC @subscriptions.economist.com PEFC/16-33-582 www.pefc.org Registered as a newspaper. © 2019 The Economist Newspaper Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Newspaper Limited. Published every week, except for a year-end double issue, by The Economist Newspaper Limited. The Economist is a registered trademark of The Economist Newspaper Limited. Printed by Walstead Peterborough Limited. Financial Era Advisory Group 6 The world this week Politics The Economist June 15th 2019 ronmentalists oppose the Binyamin Netanyahu, Israel’s Oil prices jumped after two mine, arguing that coal threat- prime minister, as a dog tankers were reportedly dam- ens the climate and the Great leading a yarmulke-wearing Mr aged in a suspected attack off Barrier Reef. Trump. Presumably if the the coast of Oman. America paper ever publishes a has blamed Iran for several reprehensible article, it will recent attacks on shipping. The Peronist revival thereafter have to distribute Mauricio Macri made a sur- only blank pages. A Saudi Arabian teenager prising selection for his run- faces possible execution for ning-mate in Argentina’s taking part in a demonstration presidential election in Octo- Spiralling when he was ten years old. The ber: Miguel Ángel Pichetto, Dozens of people, including boy, now 18, has been held for Police in Hong Kong used who leads the Peronist bloc in several children, were killed in four years. rubber bullets, tear gas and the senate. The other presi- a Dogon village in central Mali. water hoses on crowds demon- dential ticket will be all-Pero- The murders were blamed on a strating against a proposed law nist, including Cristina Fulani militia and are the latest Old tricks that would allow people to be Fernández de Kirchner, a for- in a series of tit-for-tat ethnic Ivan Golunov, a Russian jour- extradited to the Chinese mer president. Previous Pero- killings. In March a Dogon nalist who exposes corruption, mainland. Three days earlier, nist regimes have borrowed militia slaughtered more than was arrested after police perhaps 1m marchers thronged and splurged with unusual 150 Fulani villagers. claimed to have found drugs in the streets, worried that the recklessness. his possession. Photos pur- law would make anyone in A child became the first person porting to show a drug lab in Hong Kong, citizens and Jair Bolsonaro, Brazil’s presi- in Uganda to die of Ebola, a his flat turned out to have been visiting businessfolk alike, dent, contradicted the coun- deadly virus that has infected taken somewhere completely vulnerable to prosecution in try’s central bank when he more than 2,000 people in the different. After huge protests, Chinese courts, which are claimed a plan to create a Democratic Republic of Congo which included the front pages under the thumb of the monetary union with Argenti- next door. The boy had trav- of normally quiescent newspa- Communist Party. na was under consideration. elled to Uganda from Congo pers, at his obvious framing, The central bank was further with family members, some of the authorities released him. For the third time, a court in ruffled when Mr Bolsonaro whom are also infected; his New Zealand prevented the said that a single currency grandmother also died. In Moldova police surrounded government from extraditing a could one day be used through- Uganda’s system for contain- government buildings after a murder suspect to China. It out South America. ing epidemics is far more rival administration declared asked the government to con- effective than Congo’s. itself in charge. The pro-Rus- sider whether China could be sian president, who supports relied upon to adhere to the A quick U-turn Protesters in Sudan called off a the new team, was sacked by human-rights treaties it has Donald Trump dropped his general strike and agreed to the old team. signed and whether a trial threat to raise tariffs on goods resume talks with the junta would be free from political from Mexico, after its govern- that took charge after the fall of Ten candidates jostled to be- interference. ment promised to do more to the country’s dictator, Omar come leader of Britain’s Con- stop migrants from Central al-Bashir, in April. Negotia- servative Party, and thus the Tsai Ing-wen, the president of America illegally crossing the tions over who would lead a country’s next prime minister. Taiwan, survived a primary border into the United States. transitional government had Boris Johnson is the bookies’ challenge from Lai Ching-te, In Mexico the deal was hailed collapsed when security forces favourite, but not Europe’s.
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