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   Your Wednesday Briefing: Economic lines drawn
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             March 22, 2023
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             Good morning. We’re covering close ties between Russia and China and Emmanuel Macron’s steely determination in France.
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                  Xi Jinping and Vladimir Putin at the Kremlin on Tuesday.
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                  Pavel Byrkin/Sputnik
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            <h2 style="color:#000;font:700 24px/31px nyt-cheltenham,georgia,serif;margin:0 0 10px">
             An economic partnership between Russia and China
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            <p style="color:#333;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             President Vladimir Putin of Russia and China’s top leader, Xi Jinping, declared
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              an enduring economic partnership
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             yesterday, promising to bring more Russian energy to China and more Chinese companies to Russia as the two leaders sought to insulate their countries from Western sanctions and other consequences of the war in Ukraine.
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             Embattled economically and isolated on the world stage, Russia has leaned heavily on China to make up for lost business since its economy has been severed from the West. Putin’s economic outreach this week was a clear sign that Beijing was gaining leverage over Russia, according to experts.
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            <p style="color:#333;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             As the two leaders met, Japan’s prime minister, Fumio Kishida, visited Kyiv in a show of support that put the geopolitical fault lines created by Russia’s invasion into even sharper relief. Japan has joined with other Group of 7 nations to impose sanctions on Russia and provide billions of dollars in aid to Ukraine.
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              Warfare:
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             Ukraine’s Western allies have warned that Beijing may provide Moscow with arms for its invasion, but neither Putin nor Xi has made any reference to military assistance. The leaders instead focused on economic cooperation and casting the West as the obstacle to peace in Ukraine.
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              Related:
             </span>
             China has
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              shipped more than $12 million in drones and drone parts to Russia
             </a>
             since the start of the invasion, another indication that the countries are growing closer than ever.
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                <img class="css-17i7zb3" src="https://inboxflows.com/_/image/https%253A%252F%252Fstatic01.nyt.com%252Fimages%252F2023%252F03%252F21%252Fmultimedia%252F22ambriefing-europe-nl-svb%252F22ambriefing-europe-nl-svb-jumbo.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzdGF0aWMwMS5ueSJ9:1peqeO:AaYz2TvOu1nbtYnxveVD5NdSPH8m6X9qWw-2R1Yewt0" style="width:83%;max-width:500px;display:inline-block;height:auto;padding-top:15px;padding-bottom:0;line-height:0"/>
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                  Silicon Valley Bank did little to protect itself against an increase in borrowing costs.
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                  Aaron Wojack for The New York Times
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            <h2 style="color:#000;font:700 24px/31px nyt-cheltenham,georgia,serif;margin:0 0 10px">
             What went wrong with Silicon Valley Bank?
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             The failure of
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              Silicon Valley Bank
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             has prompted intense scrutiny of the Fed’s oversight as many wonder why the bank’s vulnerabilities, obvious in hindsight, were not promptly fixed.
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             An outsize share of the bank’s deposits were over the $250,000 insurance limit and left it susceptible to runs. Silicon Valley Bank had also grown rapidly, and its depositors were heavily concentrated in the volatile technology industry. It held a lot of long-term bonds, which lose market value when interest rates rise. Still, the bank had done little to protect itself against an increase in borrowing costs.
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            <p style="color:#333;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             Governors at the Fed Board in Washington allowed the bank to merge with a small one in June 2021, after the first warning signs had surfaced. In 2022, the Fed repeatedly flagged problems to executives and barred the firm from growing through acquisition, but it did not react decisively enough to prevent the bank’s problems from leading to its demise.
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             <span style="font-weight:700;font-size:inherit">
              Questions:
             </span>
             Jerome Powell, the Fed chair, will face multiple questions: What went wrong? Did the Fed’s board fail to follow up on noted weaknesses? Or was the lapse indicative of a broader problem — that is, did existing rules and oversight make it difficult to quickly address important flaws?
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              For more:
             </span>
             Treasury Secretary Janet Yellen said the Biden administration was prepared to take additional action
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              to help smaller banks
             </a>
             .
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                 <span class="css-2zlgwg" style="margin:0;font:normal 12px georgia,serif;color:#666">
                  Emmanuel Macron has remained remote from France’s rolling anger.
                 </span>
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                  James Hill for The New York Times
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             Macron to address pensions crisis
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             President Emmanuel Macron, facing turmoil over his plan to raise the retirement age in France, will
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              today try to address the crisis
             </a>
             . He will, officials say, portray the standoff as a battle between democratic institutions and the chaos of the street. He will stick with his current government and not dissolve Parliament or call new elections, they say.
            </p>
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             No apology appears to be forthcoming for using a legal tool, Article 49.3 of the Constitution, to avoid a full parliamentary vote on a change that has split the country. This approach appears consistent with his chosen tactics on the pension overhaul.
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             While he has made some concessions, Macron has remained remote from France’s rolling anger. Most conspicuously, and to many inexplicably, after the government consulted extensively with unions up until January, he refused to negotiate with the union leader Laurent Berger, who had supported his earlier attempt at pension changes in 2019 but opposes him now.
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              Analysis:
             </span>
             Macron knows three things: He will not be a candidate for re-election because a third consecutive term is not permitted; the opposition in Parliament is strong but irreconcilably divided between the far left and extreme right; and a large slice of French society supports his pension overhaul.
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               In Sweden, the central bank’s fight against inflation is
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               and has contributed to a 15 percent drop in home prices.
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               After
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               , some Venezuelans lead lives of luxury as others scrape by.
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             “No, I don’t play basketball.” For the very tall, every day of the year means standing out. But
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              March can be particularly maddening
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                  Sarah Merker
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             Scone song
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             This month, Sarah Merker completed
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              an unusual, decade-long quest
             </a>
             : sampling scones at 244 National Trust historic sites across Britain. The journey, which led to a popular blog and the book “The National Trust Book of Scones,” has transformed her into a kind of national celebrity.
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             Scones have deep roots in Britain. Recipes for them have been printed as early as 1669, and the word scone appears in customs paperwork from 1480. But it wasn’t until the early 19th century that the country’s “slight irrational obsession” with them developed in earnest and they came to be associated with the custom of “afternoon tea,” according to food historians.
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             Fractious disputes about scones rage on: Do you say “
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              skon” or “skohn
             </a>
             ”? Is it acceptable to serve fruit scones at a cream tea, or only plain ones? And which goes first, the jam or the clotted cream? (Merker long avoided weighing on the jam-or-cream debate before admitting this month that she is “jam-first” to avoid making a mess.)
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              Recipe:
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             These
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              classic English scones
             </a>
             taste best straight out of the oven.
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                  David Malosh for The New York Times. Food Stylist: Simon Andrews.
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             Make
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              hilib sambuus
             </a>
             , a Somali samosa. (Find
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              more Ramadan recipes
             </a>
             .)
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            What to Listen to
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            <p style="color:#333;font:normal 17px/25px georgia,serif;margin:0 0 15px">
             Depeche Mode is
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              embracing the darkness
             </a>
             with the group’s 15th album.
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            Travel
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             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              George Town
             </a>
             , a port city on the Malaysian island of Penang, is a UNESCO World Heritage site and is full of color and spice.
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            Now Time to Play
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             Here’s
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              today’s Mini Crossword
             </a>
             , and a clue: “Stupid is as stupid ___” (four letters).
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             And here are
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              today’s Wordle
             </a>
             and
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              the Spelling Bee
             </a>
             .
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              You can find all our puzzles here
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             .
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              That’s it for today’s briefing. Thanks for joining me. — Natasha
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             P.S. In our new music newsletter, “
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              The Amplifier
             </a>
             ,” Lindsay Zoladz, a pop critic,
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              recommends
             </a>
             tracks she hopes will surprise and delight listeners.
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             The latest episode of “
             <a class="css-5nb5nb" style="color:#286ed0;-webkit-text-decoration:underline;text-decoration:underline;font-family:inherit;font-size:inherit">
              The Daily
             </a>
             ” is on Xi Jinping’s visit to Russia.
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              You can reach Natasha and the team at
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               briefing@nytimes.com
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             <span style="font-style:italic;font-size:inherit">
              .
             </span>
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