| 
Good evening, Over the weekend, Brazil’s football confederation (CBF) fired Dorival Junior, its third coach in 15 months. Junior’s sacking followed an embarrassing 4-1 defeat to a Messi-less Argentina in Buenos Aires, also, its worst-ever showing in a World Cup qualifying match. While the win ensured Argentina’s qualification for the 2026 World Cup in North America, Brazil is currently sitting in fourth place, with five defeats in 14 matches, its worst qualifying campaign. Junior’s sacking, if anything, was on the cards. But now that it’s done, it has also triggered an old national debate about foreign coaches vs homegrown ones. Brazil, for whatever reasons—national pride or insecurities—has resisted hiring a foreign manager, even when the likes of Jose Mourinho were available (and linked with the job!). Its greats—a once-feared striking duo—Ronaldo and Rivaldo are split. While Ronaldo prefers a foreign coach, Rivaldo leans more nativist, with the Selecao coach needing to have “Brazilian blood running through his veins.” The problem, as my colleague Sandip G. explores in his brilliant column, is that unlike Argentina or Uruguay, deep down, Brazil has a coach production problem. On that note, let’s dive into today’s edition 👇🏽
📝 The Debrief
Breaking down Trump’s embrace of tariffs and why it might not work
I’d hate to start another week with a Donald Trump-focused deep dive, but with Liberation Day looming, I couldn’t resist. On Sunday, like clockwork, he delivered. This time, threatened his BFF Vladimir Putin with secondary tariffs on buyers of Russian oil (read: countries like India) if no deal over Ukraine was reached. He said he was “pissed off” with Putin, but maintained that he had a “very good relationship” with him. At the outset, it appears to be posturing and a negotiating tactic, but Trump’s recourse for any problem—TikTok (and China) or this peace deal—seems to be tariffs. As some of you may have noticed, this newsletter, much like The Indian Express, has a razor-sharp vantage on Trump’s moves, but why exactly does he love tariffs? What is his base theory of the case? The bigger end (speculated) seems to be funding tax cuts and driving up manufacturing. But why does he choose tariffs to do that? As my colleague Udit Misra explains quite brilliantly, the goal could be fixing the US trade deficit. Let’s break it down. Manufacturing thrust: What has become more apparent through the first 100+ days of the second Trump administration is its renewed focus on manufacturing. That has been catalysed by a widening trade deficit of $1 trillion+ in 2024, which is to say, the US imported more goods from the rest of the world than it exported to the rest of the world. And it’s been happening for a while. This is a bugbear, primarily because the US hardly manufactures anything. This is not a desirable situation, and one that he desperately wants to fix, as we heard during the campaign. Enter the dollar: The dollar's strength has played a significant role in increased US imports, besides the fact that goods from other countries are, well, affordable. With most countries preferring to transact in dollars while holding them, the dollar enjoys superior demand and commands a higher exchange rate, increasing purchasing power. Harvard economist Stephen Miran argued in November 2024 that the dollar’s strength makes US exports expensive and imports cheaper, and in effect, hurting American factories and jobs. However, a stronger dollar makes borrowing easier and gives the US more power in global trade. Lower value?: About 40 years ago, the US signed the Plaza Accord with four other countries (Japan, Germany, the United Kingdom and France). The accord agreed to depreciate the “overvalued” US dollar and address global trade imbalances. Instead of a Plaza redux, Trump is using tariffs, with his core argument that foreign countries, not US consumers, will pay for them, going against what most economists believe. We’ll know soon.
✍️ From our newsroom
End of the Smart Cities era: Ten years ago, in June 2015, exactly a year after the first Narendra Modi government came to power, it launched the Smart Cities Mission. The idea was borne out of a campaign pitch by Modi, then Gujarat chief minister, in January 2014. Once the government took charge, the early days of the mission, among other things, involved creating 100 new greenfield cities, to improving existing ones to “smarter” versions. It approved a Central funding of Rs 48,000 crore for 100 cities—each expected to receive Rs 100 crore annually for five years. State governments had to match the share, while the cities could bring in additional funds through public-private partnerships. What began as a five-year mission per city ended up with three extensions, and today, it ends with an uncertain future. My colleague Damini Nath has this must-read report from Agra, one of the cities chosen for the mission, and how it played out.
🔎 Need to know
Conditions apply: ChatGPT maker OpenAI’s mega $40 billion SoftBank-led fundraise hinges on one key condition: its transition into a for-profit company by the end of the year. SoftBank could reduce the round size by half to $20 billion if its restructuring doesn't happen.
More bhujia: Indian ethnic snacks giant Haldirams reached an agreement with Singapore’s global sovereign wealth fund Temasek to sell over 9% stake in the company. Market estimates suggest the deal size to be approximately Rs 8000 crore, with a valuation of $10 billion, making it India’s largest-ever private equity consumer deal. For real?: US President Donald Trump said on Sunday that he was considering ways to serve a third term as president. The 22nd Constitutional Amendment, which was ratified in 1952, prohibits a third term. Trump insisted that he wasn’t “joking” and that a “lot of people would like” him to hold a third term.
🎙️Expresso Playlist!
In today’s Playlist, I’ll recommend the fantastic podcast by the American historian and journalist Jill Lepore, The Last Archive. I am hooked to its most recent series, which looks at Elon Musk’s Origin Story, which keeps changing. So here we go, the first episode, which looks at Musk’s fascination with characters such as Batman. There are a few more.
✋🏽One last thing
🐦I’ll leave you with this fantastic story from where else but the Indian Express on how pigeons have grown to become an urban menace. Unconvinced? Read this story and head out to your balconies to see the stains!
That’s all from me today. Thank you so much for reading this edition. If you enjoy the Evening Expresso, tell your friends to subscribe to the newsletter. You can do so by signing up for the Morning Expresso. Also, you can contact me via email for tips, feedback, or just a hello! 😀 Until tomorrow, Venkat Ananth |
No comments:
Post a Comment