Global Economic Shifts and Welfare Trends

The article 'America's welfare state is more European than you think' discusses how state-level policies in the United States are compensating for the perceived inadequacies of federal welfare provisions. It highlights various social welfare benefits available to American families, such as prenatal care, maternity and paternity leave, subsidized child care, child tax credits, and unemployment benefits. The article suggests that while the U.S. federal government may not provide as comprehensive welfare support as many European countries, state-level initiatives are filling the gap, thereby making America's welfare state more akin to European models than commonly acknowledged.

The article examines whether America's war on poverty, declared by President Lyndon Johnson in the 1960s, has been successful. Despite significant investment in the welfare state, with programs such as food stamps, Medicare, and Medicaid, deprivation has fallen dramatically. However, the article questions whether this reduction in poverty is directly attributable to the welfare state. The US welfare state is substantial, providing assistance worth around 15% of GDP annually, with one in eight Americans receiving food stamps. The article suggests that while poverty has decreased, it is not clear that the welfare state is the primary cause of this decline.

The European Union (EU) is revising its economic policies in response to geopolitical threats from countries like Russia, China, and the United States. At an informal meeting in Belgium, EU leaders acknowledged the need for accelerated economic reform due to the current desperate times. The shift towards more muscular economic policies indicates a departure from the bloc's previous approach of 'business as usual.' The article highlights the changing geopolitical landscape and its impact on the EU's economic strategy, suggesting that the bloc is moving towards a more assertive stance.

New Jersey Governor Mikie Sherrill was booed by fans at a New Jersey Devils hockey game honoring Jack Hughes' Olympic gold medal. Sherrill was in attendance to welcome Hughes and other Olympic players back to stateside ice, but was met with boos from the crowd when she was announced for the ceremonial puck drop. The boos were likely due to Sherrill's past controversy and recent criticism for her sanctuary policies. Despite the negative reaction, Sherrill posted on social media celebrating the gold medal, which was met with further criticism. The Devils honored their Olympians, including Hughes, who received a warm reception from the crowd and expressed his pride in representing the Devils and the state of New Jersey.

China has extended its technological lead over South Korea and surpassed Japan, according to a report by Seoul's science ministry. The report found that China's tech prowess is now the third highest globally, with significant gains in key sectors such as batteries and biotech. China's strategic investment in advanced research has propelled its technological advancements, widening the gap with South Korea. The report highlights the need for both countries to move beyond zero-sum competition and deepen cooperation in economic and technological development. China's technological level is now at 86.8% of the US level, surpassing Japan's 86.2%. South Korea trails at 82.8%, lagging behind China by 0.7 years in overall technological capability.

China experienced a significant rise in domestic travel during the Chinese New Year holiday, with a record 596 million trips taken, representing a 19% increase from the previous year. However, despite the surge in travel, per capita spending remained flat. The extended nine-day holiday period contributed to the increase in travel, with hundreds of millions of people visiting family and going on holiday. Investment banks Morgan Stanley and Goldman Sachs reported growth in China's hospitality sector, with increases in retail and catering sales, as well as a rise in inbound and outbound travellers.

Hong Kong Exchanges and Clearing (HKEX) reported a record-high annual profit for the second consecutive year in 2025, with a 36% increase to HK$17.75 billion (US$2.28 billion) due to higher market turnover and robust listing activity. The company's net profit beat market expectations, and it proposed a second interim dividend of HK$6.52 per share. HKEX CEO Bonnie Chan Yiting attributed the success to the company's role as a global superconnector and its position as the world's leading venue for IPOs. Despite expecting volatility in 2026, Chan expressed optimism about capital markets as global investors seek diversification and risk management opportunities in Asian and Chinese assets.

The US State Department is ramping up efforts to promote American-made AI products in the Indo-Pacific region through the Pax Silica initiative. The initiative aims to create a 'technology architecture of trust' that includes the entire AI supply chain. American diplomats will provide 'logistical and consultative services' to help Pax Silica signatories buy American AI products. The US is also launching the 'Edge AI' initiative, which will provide funding to mobile operators and manufacturers to develop 'secure, high-quality and affordable smartphones' to counter Chinese providers. The initiatives are part of the US's efforts to promote its technology dominance and counter China's influence in the region.