* Indonesia’s new president Joko Widodo introduced [WSJ] what appears to be a business-friendly cabinet on balance, though political patronage remains [Sydney Morning Herald] part of the equation. Former army Chief of Staff Ryamizard Ryacudu is the new defense minister.
* Dilma Rousseff was reelected [BBC] as Brazil’s president with 51.6% of the vote, despite a lackluster first term. The business community seems to doubt she’ll be a better leader this time around on economic matters. If Brazil’s economy continues its slump, and in the absence of major external threats, more ambitious defense programs may be kept on the back-burner.
Europe
* More readiness problems are reported in Germany. This time it’s their NH90 helos that are falling short: The Local | Die Welt [in German].
Macro Trend: Oil Price Sensitivity
* Oil prices have dropped precipitously in past weeks. Sober Look explains how Saudi Arabia can play this out, while the Economist looks at who’s benefiting and who’s losing. The lowdown:
“Saudi Arabia can survive low prices because, when oil was $100 a barrel, it saved more of the windfall than it spent. The biggest losers are countries that didn’t. Notable among these are three vitriolic critics of America: Venezuela, Iran and Russia.”
Submarines
* WSJ: China’s Submarines Add Nuclear-Strike Capability, Altering Strategic Balance. If China can avoid disasters aboard its subs, that is.
* Taiwan eyes homegrown submarines [Reuters] after a 13-year wait on U.S. deal.
* Today’s video features Pauline Sibille from DCNS who gives a primer on the situations in which submarines are most vulnerable, and how to reduce these risks with increased energy autonomy and underwater drones:
