Hi there,

This fine Friday we’ve got:

  • A Xi-Biden meeting in the making
  • The DeSantis-Trump feud
  • Prospects for peace in one of the world’s worst wars
  • Something unusual in the great state of Michigan

Plus we can see how much attention you’ve been paying this week with our weekly news quiz.

Enjoy and see you again on Monday.

- The Signal team

SIGNAL - The GZero NewsletterPresented by visa.com
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Hi there,

This fine Friday we’ve got:

  • A Xi-Biden meeting in the making
  • The DeSantis-Trump feud
  • Prospects for peace in one of the world’s worst wars
  • Something unusual in the great state of Michigan

Plus we can see how much attention you’ve been paying this week with our weekly news quiz.

Enjoy and see you again on Monday.

- The Signal team

   

As dust from US midterm elections begins to settle, the focus is shifting to tension brewing within the GOP. Former President Donald Trump looks poised to announce his 2024 presidential bid, and many expect Florida Gov. Ron DeSantis to throw his hat in the ring. Trump is publicly discouraging DeSantis from running – threatening him even. With the race for 2024 set to begin, we asked Eurasia Group’s lead US political analyst Jon Lieber for his insights on the DeSantis-Trump feud and the likely 2024 presidential tickets.

Do you believe both Trump and DeSantis will run for 2024? When will they throw their hats in the ring?

Yes. Trump has hinted he's going to go for it next week at a big rally, but I think the Georgia runoff complicates that. He has the opportunity to take credit for a win, but he also faces the downside risk of taking the blame for a loss. I think that it's a pretty risky move for him to continue to go ahead with this plan. He could end up delaying, but I'd be shocked if we got to Christmas Eve and he hadn't figured out some way to get all the attention on him by announcing.


If Trump launches but DeSantis waits until after the next legislative session, would that give Trump the upper hand?

No, it’s a formality. Everybody knows he's doing this. The thing is that Trump and DeSantis, while they may have to play in the same pool of voters to win the nomination, they're not going to play in the same pool of donors. Trump's full money-making operation is the small donors he gets from online and then a couple of large benefactors. DeSantis is going to draw a huge chunk of change the day he announces from deep-pocketed, anti-Trump Republican donors desperate to consolidate the field and have a party led by somebody other than Trump.

How would the GOP change under DeSantis?

The Republican Party wants to be a multiethnic, populist conservative coalition, so pro-border security, anti-trade, anti-big business, anti-woke agenda, pro-life. So all the similar themes you're seeing right now, without all the chaos that Trump brings.

How would you characterize the matchup between DeSantis and Trump?

Trump has proven quite good at destroying his opponents. DeSantis hasn't gone through that gauntlet yet. In 2016, Trump came out of nowhere to just humiliate Jeb Bush, Marco Rubio, and Ted Cruz, and all the other people running, by saying some nasty, sometimes untrue, sometimes true things. DeSantis is going to have to face that. That's the biggest risk for him.

Are Republicans blaming Trump, and what did you make of the New York Post likening Trump to Humpty Dumpty?

Trump is 100% getting blamed for this. His candidates did horribly in statewide elections in Pennsylvania, Michigan, Minnesota, Wisconsin, and TBD Arizona. As for Murdoch, his empire has turned against Trump and made a kind of conscious decision to turn against him over the last six months. I think that reflects sort of a broadly held view among the Republican elite that hitching your wagon to the Trump train in 2024 is a mistake.

Read more here to get Lieber's predictions for the 2024 candidates.


 
 

 
 
   

Is this crypto’s Lehman moment?

The crypto market’s bad run got even worse this week after FTX, a major crypto exchange, imploded. Headed by billionaire crypto-star Sam Bankman-Fried, FTX was revealed to be in a dire financial position earlier this week. Binance, the largest exchange and an FTX competitor, considered bailing FTX out but dropped the idea at the eleventh hour when it became clear FTX was insolvent and that its customers couldn’t withdraw assets. Federal investigators are now looking at Bankman-Fried to find out whether his company violated financial regulations. Not only did Bankman-Fried lose more than 90% of his $16 billion fortune in mere days, but the news also sent the broader crypto and stock markets into a tailspin. Bankman-Fried, a big Democratic donor, had been making inroads in recent months with lawmakers on Capitol Hill to shape regulation with favorable terms for the crypto industry. But lawmakers and other crypto lobbyists will now want to distance themselves from the crypto king facing serious allegations of financial impropriety.


China and El Salvador talk trade

China and El Salvador will soon begin negotiations on a free trade deal, Beijing said on Thursday. The relationship is a new one. It was only four years ago that San Salvador cut ties with Taiwan in order to establish formal relations with China. Since then, El Salvador has signed onto Beijing’s ambitious Belt and Road Initiative, and China has agreed – in principle at least – to invest in a number of infrastructure projects in the Central American country, including a sports stadium, water treatment plants, and a $40 million cultural center in the capital. El Salvador’s democracy-flouting President Nayib Bukele needs all the economic help he can get after pinning the country’s economic revival on cryptocurrency, which is clearly not having a very good run. Washington has had to tread carefully with the norm-defying Bukele – China’s bid to rival US influence in Latin America gives the young populist leader options.

Inflation: good news in the US, bad news in Europe

The US economy got some good news on Thursday: Monthly inflation in October dropped to 7.7%, down from 8.2% in September, and is now at its lowest level since January. This suggests that the US Federal Reserve’s ongoing efforts to rein in inflation are working. But across the Atlantic, it's a different story. As the war in Ukraine wages on, inflation remains above 10% in the Eurozone, where the European Central Bank has adopted a more cautious approach to monetary policy out of fear that raising rates too fast could inflict economic pain, particularly on the more sluggish southern European economies. But as cost-of-living pressures persist, thousands of people across Greece, Belgium, and France took to the streets this week to protest “suffocating inflation.” Belgian trade unions say gas prices have gone up by 130% this year, while Greek officials say they’ve risen by more than 300%. European governments are keenly aware that with winter coming, the chill of inflation is only going to get deeper.

Putin's out, but Biden and Xi head for G20

Did he not feel welcome? As recently as a couple of months ago, Russian President Vladimir Putin planned to attend next week’s G20 summit in Bali. But now, mired in military setbacks in Ukraine, Putin — who’s so isolated internationally that he’s turning to Iran for weapons – is staying home. President Joe Biden, meanwhile, will be on-site in Indonesia, where he plans to meet with Chinese President Xi Jinping on Monday for their first in-person chat since Biden moved into the White House. Top of the agenda? Their respective red lines on Taiwan. Expect discussion about (outgoing?) House Speaker Nancy Pelosi’s controversial visit to the island earlier this year. But don’t expect big results: A senior Biden administration official said the meeting isn’t about “deliverables,” and there won’t even be a joint statement following it.

 
 

 
 
   

Even with innovations in fintech and digital payments, roadblocks related to basic infrastructure like electricity and internet connectivity still prevent many migrant workers from being able to transfer money to their families back home with a truly digital end-to-end flow. While more workers can send money digitally today, the majority of people still receive funds in cash. Read more about why public-private partnerships are key to advancing the future of global money movement and why it matters from experts at the Visa Economic Empowerment Institute.


 
 

 
 
   

For two years, it was one of the world’s most gruesome conflicts. Hundreds of thousands displaced, millions at risk of famine, and a rapidly shifting frontline that drew in neighboring countries and saw allegations of war crimes by both sides.

And then suddenly, last week, Ethiopia’s civil war, which pitted the federal government against separatists from the northern region of Tigray, seemed to end. Both sides agreed to a peace framework at talks in South Africa.

Why and what are the prospects for peace in Africa’s second most populous nation, a country that until recently was one of the world’s fastest growing economies?


First a refresher on how we got here: Tigray is home to 7 million of Ethiopia’s 120 million people. For decades the Tigrayan Popular Liberation Front, a political party, was top dog in Ethiopia’s dictatorship. But in 2018, a democratic popular revolution swept current Prime Minister Abiy Ahmed to power. Two years later, a dispute with the TPLF over the timing and legality of local elections turned ugly. The Tigrayans felt their autonomy was threatened, while Abiy saw a challenge to federal authority from an ethnic group accustomed to having more power. War broke out and quickly drew in troops from neighboring Eritrea who fought alongside Ethiopian forces.

Peace: why now? The Ethiopian federal government has been struggling with an economic downturn, soaring inflation, the worst drought in 40 years, and the increasing costs of waging a war against a well-armed adversary fighting on its home turf.

But it was the Tigrayans – exhausted by nearly two years of siege and bombardment, running low on food and munitions, and reeling from recent Ethiopian battlefield gains – who were desperate to stop the war, say analysts.

Growing pressure from an international community that saw the limits of its ability to influence Addis Ababa also played a role, according to Connor Vasey, an Ethiopia analyst with Eurasia Group

“In the end,” Vasey says, “time was on Addis Ababa’s side but not on Tigray’s.”

So what’s in the deal?

Given Addis Ababa’s advantages, the deal is a sweet one for PM Abiy. The Tigrayans must give up their heavy weapons, recognize the authority of the federal government again, and hold fresh elections under Ethiopian national laws. In exchange, the federal government would relax its siege of the region, allowing desperately needed aid and services to resume.

“The deal was a huge diplomatic and political victory for the federal government,” says William Davison, Ethiopia senior analyst at International Crisis Group. “It allows the prime minister to tell the world that the war is over and that financial assistance to his country should resume in a rapid and substantial way.”

What’s the catch? The biggest initial sticking point, analysts say, will be the terms of Tigrayan disarmament. Eritrean troops remain in Tigray, but that country, ominously, is not party to the peace deal at all. So long as those troops – as well as those from neighboring regions of Ethiopia, which are also nibbling away at Tigrayan territory – stick around, Tigrayans won’t feel secure enough to give up their heavy weapons.

But in that case, the federal government siege could remain partially or wholly in place, with devastating consequences for ordinary Tigrayans.

“One of the main fruits of this agreement,” says Davison, “would be relief for the Tigrayan population.” But if the disarmament talks fall through, “that may not actually be forthcoming.”

Human rights watchdogs, meanwhile, worry about accountability for crimes committed by both sides during the fighting. The current accord, says Amnesty International, “fails to offer a clear roadmap” for justice and “overlooks rampant impunity in the country.”

What to watch next: Military leaders from the two sides are currently negotiating disarmament terms in Nairobi, Kenya. By Friday evening, analysts say, it will be clear whether the fledgling peace has a chance. But given the uncertainty about Tigrayan security, and the lingering Eritrean wildcard, a durable end to the war could be a long shot yet.


 
 

 
 
   

Got your finger on the pulse of the metaverse? Think you know Vladimir Putin's right-hand man? Prove it by taking our weekly news quiz here.


 
 

 
 
   

100,000: The Pentagon says Russia has suffered 100,000 casualties in the war in Ukraine. This comes as the Kremlin has started retreating from the Ukrainian city of Kherson amid a series of military setbacks. At home, Vladimir Putin is coming under increasing pressure from nationalists who say the war effort has been a failure.


9.7 million: After stealing the medical data of 9.7 million Australians, hackers have begun releasing information on which patients have received abortion care after Medibank, one of Australia’s largest private insurance providers, refused to pay a $10 million ransom. PM Anthony Albanese, meanwhile, called the hackers “scumbugs.”

18 billion: The British government has frozen £18 billion ($21 billion) of assets held by Russian oligarchs and other high-flying officials, making Russia the UK’s most sanctioned nation, overtaking Libya and Iran. The British capital has been colloquially dubbed Londongrad due to the high concentration of Russian wealth in the city.

40: There are lots of interesting takeaways from US midterms, and the outcome in Michigan is one of them. For the first time in 40 years, the Great Lake State’s House and Senate will have Democratic majorities. Democratic Gov. Gretchen Whitmer, who was subject to a kidnapping attempt in 2020, made abortion access central to her campaign and cruised to reelection.


 
 

 
 

This edition of Signal was written by Gabrielle Debinski and Alex Kliment. Edited by Tracy Moran.