The Economist Latin America October 15, 2022

A large explosion badly damaged the Kerch road-and-rail bridge, which connects Russia with occupied Crimea and is vital for resupplying Russian forces operating in the south of Ukraine. Although Ukraine neither confirmed nor denied that it had carried out the attack, many assumed that it had done so. Only very limited traffic is now able to use the bridge. It was unclear whether the explosion was caused by a lorry-bomb, an underwater drone or a missile. Russia retaliated by pounding cities across Ukraine with often-inaccurate cruise missiles and drone strikes. The centre of Kyiv was struck for the first time since the start of the war. Ukraine’s engineers sought to repair damage to infrastructure and its leaders argued that the attacks would feed the will to fight. In response, NATO countries…

The Bank of England acted again to stabilise bond markets and increased its maximum daily purchases of long-dated gilts. The central bank is buying the bonds through a temporary programme it created after markets took fright at the government’s plans for unfunded tax cuts. The programme is supposed to end on October 14th. British pension funds want it to be extended. They are taking a hit from collateral calls on derivatives linked to bond prices, leaving them with a short-term financing problem. Dire straits The turmoil pushed up the costs of financing Britain’s government debt, with the interest rate on ten-year bonds climbing back to levels that prompted the Bank of England’s first emergency intervention in September. In an attempt to regain credibility in the markets, Kwasi Kwarteng, the chancellor of the…

A large explosion badly damaged the Kerch road-and-rail bridge, which connects Russia with occupied Crimea and is vital for resupplying Russian forces operating in the south of Ukraine. Although Ukraine neither confirmed nor denied that it had carried out the attack, many assumed that it had done so. Only very limited traffic is now able to use the bridge. It was unclear whether the explosion was caused by a lorry-bomb, an underwater drone or a missile. Russia retaliated by pounding cities across Ukraine with often-inaccurate cruise missiles and drone strikes. The centre of Kyiv was struck for the first time since the start of the war. Ukraine’s engineers sought to repair damage to infrastructure and its leaders argued that the attacks would feed the will to fight. In response, NATO…

IT WILL BE an orderly affair. From October 16th the grandees of China’s Communist Party will gather in the Great Hall of the People in Beijing for their five-yearly congress. Not a teacup will be out of place; not a whisper of protest will be audible. The Communist Party has always been obsessed with control. But under President Xi Jinping that obsession has deepened. After three decades of opening and reform under previous leaders, China has in many ways become more closed and autocratic under Mr Xi. Surveillance has broadened. Censorship has stiffened. Party cells flex their muscles in private firms. Preserving the party’s grip on power trumps any other consideration. This is evident in Mr Xi’s response to covid-19. China’s initial lockdown saved many lives. However, long after the rest…

The Bank of England acted again to stabilise bond markets and increased its maximum daily purchases of long-dated gilts. The central bank is buying the bonds through a temporary programme it created after markets took fright at the government’s plans for unfunded tax cuts. The programme is supposed to end on October 14th. British pension funds want it to be extended. They are taking a hit from collateral calls on derivatives linked to bond prices, leaving them with a short-term financing problem. Dire straits The turmoil pushed up the costs of financing Britain’s government debt, with the interest rate on ten-year bonds climbing back to levels that prompted the Bank of England’s first emergency intervention in September. In an attempt to regain credibility in the markets, Kwasi Kwarteng, the chancellor…

LIZ TRUSS has already secured her place in British political history. However long she now lasts in office, she is set to be remembered as the prime minister whose grip on power was the shortest. Ms Truss entered Downing Street on September 6th. She blew up her own government with a package of unfunded tax cuts and energy-price guarantees on September 23rd. Take away the ten days of mourning after the death of Queen Elizabeth II, and she had seven days in control. That is roughly the shelf-life of a lettuce. If this judgment sounds severe, look at gilt yields, which have this week been climbing again (see Britain section). One problem is financial stability. The Bank of England has twice widened its emergency bond-buying programme to try to prevent a…