Today, we discuss whether Boris Johnson will be PM much longer, track a coming omicron onslaught in Europe, and go on a blind date in China.

Also, so many of you wrote in last week to tell us your thoughts on the Djokovic/Australian Open saga. Since your feedback was sharp and provocative, we decided to publish some of the responses in the newsletter so you can see how your fellow Signal readers feel about the divisive issue. Be sure to read Friday’s edition for the great reveal!

Thanks for reading. Please tell your friends to sign up to Signal too.

Gabrielle Debinski
SIGNAL - The GZero NewsletterPresented by bankofamerica.com

Today, we discuss whether Boris Johnson will be PM much longer, track a coming omicron onslaught in Europe, and go on a blind date in China.

Also, so many of you wrote in last week to tell us your thoughts on the Djokovic/Australian Open saga. Since your feedback was sharp and provocative, we decided to publish some of the responses in the newsletter so you can see how your fellow Signal readers feel about the divisive issue. Be sure to read Friday’s edition for the great reveal!

Thanks for reading. Please tell your friends to sign up to Signal too.

Gabrielle Debinski
   

No world leader has had a more bruising month than British Prime Minister Boris Johnson. Among other recent indiscretions, he’s been accused of flouting lockdown rules, as well as breaking ministerial protocols by using Conservative Party funds to refurbish his personal pad at 11 Downing Street – which analysts say contributed to the Tories losing a safe parliamentary seat for the first time in 200 years.


What are the current crises Johnson is facing, and how might they affect his political survival?

Rules for thee, and not for me. News emerged this week that Johnson’s office organized an outdoor BYOB party for staff in May 2020. At the time, Britons were told to stay home and not to socialize in groups. (The PM offered a poorly-received apology Wednesday, saying that he thought it was a standard “work event.”) Meanwhile, his staff also flouted the rules at Christmas time in 2020, the details of which were revealed in an awkward leaked video.

There’s more. Johnson has been embroiled in a Marie Antoinette-type scandal, having used funds given to the Conservative Party to refurbish his residence (the WhatsApp exchange between the PM and the donor is cringeworthy). Coupled with the fact that one-third of Brits fear their energy bills will be “more expensive than they can afford” this year, this makes for very bad optics — and politics.

Cost of living crisis. But more than the PM’s personal scandals, economic grievances are the driving force of political change. This is extremely relevant amid the ongoing pandemic where many Britons are struggling to meet basic economic needs. Fuel prices are soaring while inflation rates recently reached a 10-year high. Indeed, the rising cost of living is likely to get even worse when a new national insurance tax of 1.25 percent comes into effect in the spring.

While some of these issues — including the energy crunch — are global in scope, food price hikes and supply chain issues have been exacerbated by post-Brexit complications. And things aren’t expected to improve anytime soon. Ominously, one British think tank has dubbed 2022 the “year of the squeeze,” predicting households could lose 1,200 pounds ($1,645) in annual income.

Party infighting. One of the biggest threats to the embattled PM’s political survival is coming from the inside, as rival Tory factions are pulling him in opposite directions.

Pro-Brexit MPs and free-traders are furious at Johnson for not lowering taxes, while Tories representing “red-wall” seats — working-class neighborhoods that have traditionally been Labour strongholds but recently become more competitive — want the government to expand the social safety net to help poorer constituents weather the cost-of-living crisis.

What’s more, after a Conservative Party revolt last month revealed the depths of dissatisfaction with the PM, Eurasia Group analyst Mujitaba Rahman now says that Johnson could be ousted after local elections in May so that Tories can pin the deteriorating economic situation and (anticipated) legislative losses directly on the PM.

The very powerful woman in Britain you may have never heard of. Sue Gray, a high-level civil servant, has been tasked with leading the investigation into the ill-fated Downing Street gatherings. Her findings, which should be released in 10 days, will likely reveal more damning details, giving Tories the fodder they need to cast the PM as a liability.

What now? On top of the impending Gray report, the Johnson government will have a number of thorny issues on its agenda in the coming weeks and months, including an ongoing omicron wave as well as negotiations with Brussels over the future of the Irish border.

Johnson, the forever Comeback Kid, would have to manage these challenges impeccably to prevent at least 55 Conservative MPs from triggering a leadership vote. Or is it already too late?


 
 

 
 
   

Boris Johnson is a political animal. He's also famous for being impervious to scandal, often emerging from a new controversy stronger than before. But recently the British PM has been caught in so many political scandals that most Brits — and his own Conservative Party — have now turned their back on him, perhaps for good. We take a look at Johnson's approval ratings over the past year, highlighting a few of the dramas that have eroded his popularity.


 
 

 
 
   

”We’re expecting another year of recovery in the U.S. and globally,” says Ethan Harris, Head of Global Economics, BofA Global Research.

In Bank of America’s Outlook 2022, the best minds in the business discuss what the year ahead could bring for the economy, markets, taxes, and so much more.


 
 

 
 
   

Omicron to sweep Europe. The World Health Organization reports that Europe will soon be the latest region to face a “west-to-east tidal wave” of the omicron COVID variant, on top of continuing infections with the delta variant. A senior WHO official predicts that “more than 50 percent of the population in the region will be infected with omicron in the next six to eight weeks.” Beyond the public health and subsequent economic impact of this event, governments across Europe must manage the political fallout. The most impactful example will come in France, where President Emmanuel Macron faces center-right and further-right challengers in his bid for re-election in April. The latest pandemic wave will also create challenges for Germany’s brand-new coalition government and maybe for Hungary’s Viktor Orbán, who’s expecting an especially tough fight for re-election this spring.


Bolsonaro hearts Telegram. Jair Bolsonaro mastered the use of social media to motivate his core supporters during his campaign to win Brazil's presidency in 2018. But since then, Bolsonaro has faced an uphill climb with Big Tech and the Brazilian courts, both of which are cracking down hard on the misinformation the president regularly amplifies. For months, Bolsonaro has been telling his fans to get off Facebook, Twitter and especially WhatsApp, which is used by almost all Brazilians with a smartphone. Now, Bolsonaro — perhaps fearing he'll be banned over misinformation from all Meta-owned platforms ahead of the October presidential election — wants his fans to flock to Telegram. Why? First, the app gives him more freedom to say what he wants and to as many people as he wants. Second, the Brazilian courts can't shut it down because Telegram has no legal office in the country. But so far only half of Brazilians use it, so he needs to build a big following fast in order to wage social media war on former president Luiz Inácio Lula da Silva, his likely rival who is currently way ahead in early polls.

The longest blind date in history? In the Chinese city of Zhengzhou, there’s a young woman we know only as Ms. Wang. We know she’s young — she’s posted photos of herself on social media — but her parents are reportedly concerned she isn’t yet married, so they arranged some blind dates for her. That’s how she met a man online who presents himself as an excellent cook. He invited her to his apartment to demonstrate these culinary talents and, not having read Signal’s coverage of our parent company Eurasia Group’s #1 top geopolitical risk for 2022 — and therefore underestimating the potentially serious impact of China’s “zero-COVID” policy in the age of omicron — Ms. Wang accepted the invitation. Then she got stuck at his apartment when local authorities suddenly ordered a total lockdown of his neighborhood. Ms. Wang has reported that the situation is “not ideal,” though the man has cooked for her for several days. She has not (yet) offered reviews of his meals, but she has noted publicly that “he doesn’t speak much.” We’ll be watching to see if either of these kids finds love in the future — and if they’ve learned anything about staying current on latest news and views from Signal.

 
 

 
 
   

7: US monthly inflation in December crept up to 7 percent, the highest year-on-year rise since 1982. The Federal Reserve has signaled it may raise interest rates higher, and sooner, than previously expected to fight rising prices.


17: India now has just 17 active health workers per 10,000 people — far below the WHO-recommended minimum of 44.5 — as more doctors, nurses, and midwives get sick with omicron. The staff shortage is worse in rural areas, where three-quarters of the Indian population live, threatening another COVID emergency.

10: The Canadian province of Quebec plans to slap the world's first no-vax tax on the 10 percent of adults there who remain unvaccinated against COVID for non-medical reasons. No specifics yet on how much, but Premier François Legault says it'll be a "significant amount."

2: A Zambian ref caused a scandal at the African Cup of Nations soccer tournament in Cameroon by not once, but twice blowing the final whistle early in a group-stage match between Mali and Tunisia. Mali won 1-0, but the Tunisians are furious and want the game to be restarted to play the few remaining minutes.


 
 

 
 

This edition of Signal was written by Gabrielle Debinski, Carlos Santamaria, and Willis Sparks. Graphic by Ari Winkleman, art by Jess Frampton.