One Week Later....

Volatility to continue

In It's the volatility, stupid..., we wrote that volatility was likely to be the watchword as concern over the likelihood of a US -- and perhaps global -- recession led stock markets around the world to suffer their largest falls since September 11, 2001.

• Despite the shock cut in US interest rates, there is still a perception that central bank intervention has been insufficient. Volatility is expected to continue in the short-term.

Setback for Merkel

In Merkel's regional challenges, we wrote that the tide could turn against the Chancellor in the first big test of voter sentiment since the 2005 general election.

• The Christian Democrat party (CDU), leader of the national 'grand coalition' government, suffered a serious setback in last week's regional elections in two key states. While it can continue with a reduced majority in its current coalition with the Liberals (FDP) in Lower Saxony, it lost its absolute majority in Hesse.
• Merkel will find it increasingly difficult to push through her reforms.

Giuliani drops out

In Has Giuliani left it too late?, we wrote that the Giuliani campaign had adopted one of the most unorthodox electoral strategies in the history of presidential nomination politics.

• Giuliani has planned to endorse Arizona senator John McCain, who won Tuesday's Republican primary in Florida to become his party's frontrunner ahead of Super Tuesday next week.
• Even if McCain's advantage in the popular vote is slender on Super Tuesday, he appears poised to pick up an almost overwhelming number of delegates.

Political Masterstroke

The World Next Week Political Masterstroke award goes to the governor of California, Arnold Schwarzenegger. John McCain's hopes of becoming the Republican candidate for US president will be boosted further with the Gubernator's endorsement.

Analytica™

Worthy of note, or news to us.

Israel report flawed?

Amnesty criticises Israel's report on the Lebanon war for not tackling alleged crimes by its troops. (BBC)

Stop Kenya burning

The AU chairman tells African leaders they can no longer ignore the crisis in the country.

And finally…

A Brazilian judge has banned a group from parading in the Rio carnival with a float depicting the victims of the Holocaust and a Hitler figure.