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May 12, 2009
EXECUTIVE SUMMARY
- Pentagon removes senior Afghan commander, seeks new strategy.
- Chinese exports plummet in potentially chilling sign for global economy.
- Netanyahu calls for peace talks but not two-state solution.
- Islamic hardliners make gains in four days of fighting in Somalia.
Top of the Agenda: Pentagon Afghan Command Change
Defense Secretary Robert Gates announced yesterday that he has requested the resignation of the top U.S. military commander in Afghanistan, Gen. David McKiernan, and recommended that the Obama administration replace McKiernan with a special operations commander, Lt. Gen. Stanley McChrystal (WashPost). http://m1e.net/
The New York Times reports McKiernan's ouster is intended to bring a more "aggressive and innovative" approach to the Afghan war effort. http://m1e.net/
Gates's announcement coincided with fresh violence in Afghanistan. Taliban fighters raided Afghan state offices in Khost province today, and al-Jazeera reports battles on streets leading in and out of the city of Khost, within the province, are ongoing. http://m1e.net/
Related:
- A new Backgrounder looks at the challenges of winning the information war in Afghanistan and outlines U.S. strategic communications strategy. http://m1e.net/
- In an interview, the director of communications for the U.S. Central Command discusses strategies for countering the Taliban's message. http://m1e.net/
MARKETS: Chinese Exports Plunge
The FT reports this morning that China's exports, a critical indicator of demand, fell 22.6 percent in the year through April, significantly worse than the 17.1 percent year-on-year drop they posted through March. http://m1e.net/
At the same time, however, Bloomberg reports that Chinese investment in infrastructure development surged 30.5 percent, more than economists had forecast, countering some of the worries about the deepening export slump. http://m1e.net/
Analysis:
- An article in today's Wall Street Journal questions whether Chinese consumers stand ready to replace their American counterparts as a major driver of the world economy. The article quotes CFR's Brad Setser, who says Chinese stimulus spending doesn't seem to have translated to increased product demand, as yet. Setser notes that U.S. exports to China remain near a three-year low. http://m1e.net/
MIDDLE EAST: Pope Israel Trip
Pope Benedict XVI prayed at Jewish and Muslim holy sites today in Jerusalem. The New York Times says brief moments of tranquility in prayer stood in contrast to the generally tense atmosphere surrounding the pontiff's first day in Israel yesterday, which was punctuated by criticisms of the Pope from Jewish leaders and accusations against Israel by Muslim leaders at what was intended as an interfaith dialogue. http://m1e.net/
ISRAEL-PALESTINE: Meeting with Egyptian President Hosni Mubarak, Israel's Prime Minister Benjamin Netanyahu said he welcomed new peace talks with Palestinians (Jerusalem Post). http://m1e.net/
PACIFIC RIM: Chinese Exchanges
Beijing announced yesterday that it would move to allow foreign firms to list shares on Chinese exchanges, though it did not reveal a timetable (China Daily). http://m1e.net/
S.KOREA: Seoul's central banker said South Korea's recession would like be "deep" and "long" and that market watchers should not be overly optimistic about quick recovery (Korea Times). http://m1e.net/
SOUTH & CENTRAL ASIA: Pakistani Politics
Pakistan's prime minister said he would convene a conference of all the nation's political parties in an attempt to find common ground for staging a united fight against the country's militants (Dawn). http://m1e.net/
Pakistan's army spokesperson said today that over 750 militants have been killed during the course of the military's latest operations in Swat Valley (The News). http://m1e.net/
AFRICA: Somalia Fighting
Garowe Online reports Islamist hardliners from Somalia's al-Shabaab militant group have made gains in the country's capital of Mogadishu after four days of fighting that has left at least fifty people dead. http://m1e.net/
This Backgrounder profiles al-Shabaab. http://m1e.net/
AMERICAS: U.S.-Venezuela Oil Business
Ensco, a Dallas-based oil firm that had one of its drilling rigs in Venezuela seized by Caracas earlier this year, said it is seeking to end its contract with PDVSA, Venezuela's state oil company (El Universal). http://m1e.net/
MEXICO: Reuters reports narcotics gangs in the Mexican border city of Juarez are laying low in hopes the country's military will vacate the area. http://m1e.net/
EUROPE: French Qaeda Plots
Italian police issued new arrest warrants for two French prisoners being held in Italy on suspicion of being al-Qaeda members plotting to launch attacks in France and Britain (Reuters). http://m1e.net/
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