Diplomacy With China, Data Leaks In Italy, & Mickey D’s Is Down And Out

October 30, 2024

Hello, readers – happy Wednesday! Today, we’ll be talking about the Middle East, diplomacy (or lack thereof) with China, a scandal in Italy, kindergartens, greener ports, Trump’s stock, & a bad quarter for McDonald’s.

We asked on Monday who you would be voting for in the U.S. elections next week – 85% of you are voting for Vice President Kamala Harris, and 15% are voting for former President Trump. Make sure you are registered and have a plan to vote on Tuesday next week! Early voting has already started in some states.

“Hope is not a resting place but a starting point – a cactus, not a cushion.” – H. Jackson Brown Jr.

UNRWA’s Untimely Undoing

(UNRWA worker in Gaza by Bashar Taleb via Getty Images)

To kick off the week, Israeli lawmakers passed two bills barring UNRWA, the U.N.’s agency that provides aid to Palestinians, from operating within the country’s borders three months from now. The U.S. and other Western countries have already expressed their concern over the bans, saying that forcing UNRWA to withdraw from Gaza will cause an even greater humanitarian crisis in the decimated enclave.

Nobody knows who will fill the hole left behind by UNRWA once it’s forced to withdraw from Israel – the next likely candidate would be the Israeli government itself, but it’s not clear that the country is willing or able to provide the necessary humanitarian aid to Palestinians. Even parts of the U.S. government have accused Israel of actually blocking humanitarian aid from getting into Gaza.

That same day, Israel killed at least 93 people in an airstrike on a residential building in Gaza. The U.S. was also “deeply concerned” about that incident, and said it had reached out to Israel’s government “to ask what happened” with the bombing.

Beijing Gets Blocked Off

The European Union has locked in its decision to impose import duties on Chinese electric vehicles starting today. The call to enact the tariffs came after Beijing and Brussels were unable to work out a middle ground in last-minute negotiations, and will see a range of extra taxes – from 17% to 35.3% – added to Chinese EVs.

Meanwhile, the U.S. dropped some more economic pressure on Beijing, passing legislation that would limit and surveil U.S. investments in China, specifically in the country’s AI, computer chips, and quantum computing industries. “U.S. investments … must not be used to help countries of concern develop their military, intelligence and cyber capabilities,” said the U.S. Assistant Treasury Secretary for Investment Security. The only “country of concern” included in the bill was China.

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A Spicy Italian Scandal Deluxe

(Giorgia Meloni by Antonio Masiello via Getty Images)

Pizza? Check. Pasta? Check. Major data leaking scandals? Uh, also check. Over the past few days, Italian prosecutors have unveiled a massive hack of Italian government databases, conducted over multiple years by a hacker group. The group was able to access sensitive information stored by Italy’s Interior Ministry, either selling the info to various clients or using it to blackmail people directly.
According to prosecutors, the hackers leveraged the data to make €3.1 million ($3.35 million) between 2019 and March of this year. Apparently, the hackers used a computer virus, as well as moles within the Interior Ministry, to steal the government data. Databases affected by the hack included one that held info on suspicious financial activity, another that traced private bank transactions, and another that held information regarding police investigations.
According to wiretapped calls, one member of the hacker group claimed to have skimmed the data of some 800,000 individuals, including President Sergio Mattarella and former Prime Minister Matteo Renzi. Prime Minister Giorgia Meloni has been asked to speak about the data breach before Italy’s parliament, given a data breach of the Interior Ministry means a massive amount of sensitive personal data could still be in the hands of some unsavory groups.

China’s Tryna Put A Stop To These Low Birth Rates

According to data recently published by China’s Ministry of Education, the number of kindergartens in the country dropped 5% last year, marking the second year in a row that schools for young children have been forced to close up shop. That data reflects a wider trend of demographic decline in the Middle Kingdom, which is dealing with an aging population and a steep drop in birth rates.
Data also shows that, besides schools closing up, the number of students is also shrinking. 2023 saw just 40.9 million children enroll in preschool education across China, a massive 11% decline compared to 2022. To combat that decline, some local governments have begun offering families roughly $1,000 in cash gifts for having second and third children, but some experts believe that people will need much larger bonuses to be enticed.

More Mixed Nuts

The White House Wants Greener Ports

The Biden administration is awarding nearly $3 billion to boost climate-friendly equipment and infrastructure at ports across the U.S. Biden made the announcement ahead of a visit to Baltimore, where a deadly bridge collapse killed six construction workers in March. Officials say they will improve and electrify port infrastructure at 55 locations nationwide, supporting about 40,000 union jobs.
“Our ports are the backbone of our economy – critical hubs that support our supply chain, drive commerce, create jobs and connect us all,” said EPA administrator Michael Regan. “But we cannot overlook the challenges faced by the communities that live and work near these ports. Too often, these communities face serious air quality challenges due to diesel pollution from trucks, ships and other port machinery.”

Wall Street Still Loves Him

You may have heard that former President Trump is facing some backlash due to some unseemly comments at one of his rallies. Well, that might not be enough to stop him. Shares of Trump Media & Technology Group soared yesterday as betting markets wager the former president is favored to win in the November 5 election.
The New York Stock Exchange ultimately had to halt trading of the stock several times on Tuesday due to unusual volatility. Shares jumped $5.86, or 12.4%, to $53.22 in Tuesday afternoon trading – with Trump owning about 57% of Trump Media shares, the value of his stake has climbed $2.6 billion to more than $6 billion in the current rally.

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Maybe The Hamburglar Took The Profits

The Golden Arches are continuing their downward parabola for the second quarter in a row. After posting a 1% drop in sales in Q2 2024, McDonald’s announced yesterday that it had experienced a 1.5% sales decline in Q3 – not a good sign for the biggest fast food chain in the world. The sustained losses reflect consumers’ wariness about spending, especially in China and Europe.
McDonald’s saw its U.S. sales grow a small amount (0.3%), but that good news was overshadowed by shrinkage overseas, with non-U.S. sales dropping 2.1%. The brand has faced some controversy recently, including calls to boycott them due to Israeli franchisees offering thousands of free meals to the IDF, which is currently involved in attacking Gaza and Lebanon simultaneously. In the U.S., McDonald’s also caused an E. coli outbreak thanks to its Quarter Pounders, infecting 75 people and killing at least one.
Despite the disappointing earnings report, Chris Kempczinski (the company’s CEO) told reporters that he was “laser-focused” on affordability as consumers “continue to be mindful about their spending.” The company will continue to offer its $5 meal deals until December in an effort to snag more business. That’s cool and all, but can we get the Dollar Menu back, please?

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