Electric vehicles could become economically competitive in Africa sooner than previously anticipated, with the potential to be cheaper to own than gasoline-powered cars by 2040, according to a new analysis. Meanwhile, the United States is facing a looming fiscal crisis, with the national debt projected to reach a record 120% of GDP by 2030. In other news, Big Oil is increasing global exploration outside of the Americas, and a pragmatic alliance between Germany and Italy is redefining Europe's power balance. Finally, a top Wall Street analyst has observed a breakdown in the historical relationship between gold prices and interest rates, signaling potential economic jitters.
A study published by MIT Technology Review found that electric vehicles (EVs) could achieve economic parity with gas-powered cars in Africa by 2040. This is due to the falling costs of batteries and EVs, coupled with the potential for off-grid solar charging. While challenges remain, including an unreliable grid and limited charging infrastructure, the economic case for EVs is strengthening. Electric two-wheelers, cars, and even minibuses could become competitive in most African countries.
The United States is on track to break fiscal records in the coming years. The national debt is projected to surge to 120% of GDP by 2030, surpassing the previous record of 106% set after World War II, according to a report released by the Congressional Budget Office (CBO). The U.S. currently has a federal budget deficit of $1.9 trillion and a national debt worth 101% of GDP. Fiscal watchdogs warn that such high levels of debt could hinder sustainable economic growth and national security.
In the realm of international politics, a pragmatic alliance between German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni is quietly reshaping Europe's power dynamics. A joint-policy paper is set to be delivered to European Union partners at an informal summit on February 12, 2026, urging reforms to improve the bloc's competitiveness, according to Fortune.
Big Oil is also shifting its focus. After two decades of depressed global searching for oil and gas, frontier exploration is bouncing back. Chevron announced its return to Libya on February 11, after a 15-year absence, as the U.S. shale oil boom matures.
Finally, a top Wall Street analyst has observed a significant shift in the relationship between gold prices and interest rates. Apollo chief economist Torsten Slok noted that the historical inverse correlation between gold prices and real interest rates has broken down. Gold has cemented itself as a safe-haven asset, viewed as a life preserver in a time of choppy market waters. The breakdown in this relationship, which began when the Fed started raising interest rates in 2022, suggests that investors are becoming increasingly concerned about the state of the economy.
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