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Why Nikki Haley, crushed in her home state, vows to fight on

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WHEN DOES the act of hoping against hope go from admirable to absurd? Not yet apparently for Nikki Haley, the last woman left standing against Donald Trump and his seizure of the Republican Party’s presidential nomination. You can forgive Ms Haley for persisting through losses in the early primary states of Iowa and New Hampshire. But the indignity suffered on February 24th—a 20-point walloping in the primary election in South Carolina, the state she was governor of for six years—should have proven fatal.

And yet even out of those grim statistics, Ms Haley managed to extract something hopeful: “Today in South Carolina, we’re getting 40% of the vote. That’s about what we got in New Hampshire. I’m an accountant. I know 40% is not 50%. But I also know that 40% is not some tiny group.” She vowed to carry on her campaign until at least March 5th, also known as Super Tuesday, at which point another 21 states and territories will have conducted their elections. The embers of optimism present today will, in all likelihood, be extinguished by then.

Why continue? The first reason is that Ms Haley simply can. In America, moribund presidential campaigns are not usually dealt the coup de grâce by voters but by donors. The cash-burning machines simply run out of fuel. The central problem of Ms Haley’s campaign is that she is extraordinarily popular with the Trump-despising donors of her party—who showered her with $16.5m in contributions in January alone—but unacceptable to the Trump-adoring base of her party.

You could see this dilemma on vivid display at her election-night party held in a grand hotel in Charleston, South Carolina: fewer than 40 supporters had managed to tear themselves from the spectacular array of catered dips before them—crab, pimento cheese, spinach and artichoke—and enter the ballroom by the time the race was called, just seconds after the polls closed. (Later the room would fill up with supporters, who managed a surprisingly spirited cheer when the television screens showed that Ms Haley’s margin of loss had narrowed to only 16 points.) Like her catering budget, Ms Haley’s advertising budget was significantly higher than Mr Trump’s, too. Ms Haley and her allied political groups spent $8.4m on advertising in the state; Mr Trump spent almost none by comparison. The former governor embarked on a two-week bus tour; the former president flew in for a few rallies and quickly departed. All the extra expenditure of time and money simply did not matter.

Ms Haley and her advisers are fuzzy about how exactly this starting sequence of consecutive losses will ultimately spell victory. “We know that this is an uphill battle. We know that the road is difficult. We know that the math is challenging,” says Betsy Ankney, Ms Haley’s campaign manager. But Ms Ankney argues that because Mr Trump is unelectable in the general election, Ms Haley has an obligation to remain in the race for as long as she can. Indeed, in head-to-head polls against President Joe Biden, Ms Haley runs, on average, several points ahead of Mr Trump. Some polls even show her leading the hypothetical national popular vote by lopsided margins of 16 points or so.

Such margins are unheard of in modern-day, hyperpolarised politics; they probably do not reflect an actual possible result in November as much as they do the wide discontent felt with the two elderly candidates the major parties are preparing to nominate. In her stump speech, Ms Haley is fond of citing these polls as proof of her viability (though she scrupulously ignores any primary polling, which by our tally, has her down 57 points to Mr Trump). But winning the general election requires winning the primary election. That requires winning multiple state contests; but Ms Haley is struggling to win even one.

Her refusal to quit plainly enrages Mr Trump, who has declared that she and her enablers are personae non gratae in MAGA-land. “I feel no need to kiss the ring,” she said in a speech on February 20th teased to reporters as a major update on the state of the race (the kind of language used when a candidate is planning to drop out). Mr Trump’s needs may be more urgent than mere vanity. If he is declared the presumptive nominee his campaign lieutenants—including his daughter-in-law—could take over the leadership of the Republican Party. This could allow him to use the party to fund his considerable legal bills, now that Mr Trump is running low on the donor-provided funds that he has used for the last three years.

Bless her heart

The tortured, seemingly inevitable, demise of Ms Haley’s presidential campaign mirrors the fate of the increasingly endangered Reaganite wing of the party. Ms Haley is an internationalist who emphatically makes the case that America needs to continue providing military aid to Ukraine; followers of Mr Trump are withholding funds while their leader muses about encouraging Russian attacks on NATO allies. She frets about the national debt, while Mr Biden and Mr Trump studiously avoid the subject. She sees America as already great and good, while Mr Trump venomously attacks it, presenting himself as its only saviour. “Your victory will be our ultimate vindication, your liberty will be our ultimate reward and the unprecedented success of the United States of America will be my ultimate and absolute revenge,” he said at an apocalyptic speech delivered to CPAC, a conservative gathering, on the same day as the South Carolina primary. Trumpism is often an inversion of the spirit of John F. Kennedy’s famous inaugural address. “Ask not what your country can do for you,” Mr Trump asks of his fellow citizens: “Ask what your country can do for me.”

Understand these stakes and Ms Haley’s refusal to bend the knee makes more sense. In Congress, too, her faction is being broken. In the House of Representatives, sensible Republicans who might have helped reconstitute a post-Trump future like Mike Gallagher and Patrick McHenry are choosing to leave without seeking re-election. The House leadership, thoroughly aligned with Mr Trump, is utterly shambolic and unable to complete basic tasks of governance. In the Senate, this takeover has been slower due to lower attrition rates, but it is happening all the same. Mitch McConnell, the Republican Senate leader, thinks that Ukraine needs continued American aid and that Mr Trump disgraced himself on January 6th 2021. That places him in the minority of his own party. His command of his fellow senators, given his age and the increasing possibility of Mr Trump’s return, is slipping away.

Many ambitious Republicans have chosen to turn accommodationist with Mr Trump despite their consciences. Indeed, Ms Haley was guilty of this herself: going from opposing him in 2016, to joining his administration, to criticising him, before pledging not to challenge him in the presidential election—then challenging him while studiously avoiding any criticism of him, to finally emerging as a strong critic of Mr Trump’s character and record. Courage, even if it arrives late, is commendable. It is just that in this case, it may not make any difference.

Stay on top of American politics with The US in brief, our daily newsletter with fast analysis of the most important electoral stories, and Checks and Balance, a weekly note from our Lexington columnist that examines the state of American democracy and the issues that matter to voters.

Economics

UK Has a New Prime Minister Without a General Election

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UK Has a New Prime Minister Without a General Election

On July 20, Andy Burnham has been chosen to be the next Prime Minister in UK. The appointment of a new Prime Minister in the United Kingdom often raises questions from people outside the country, especially when no nationwide election has taken place. Many wonder how a new national leader can assume office without voters casting ballots. The answer lies in the UK’s parliamentary system, where the Prime Minister is not directly elected by the public but is instead chosen based on who commands the confidence of the House of Commons.

How the UK Selects Its Prime Minister

Unlike presidential systems where citizens vote directly for the head of government, the United Kingdom elects Members of Parliament (MPs) during a general election. The political party that secures a majority of seats in the House of Commons usually forms the government, and that party selects its own leader to serve as Prime Minister.

If the leader resigns, becomes unable to continue, or is replaced by their party, the governing party can choose a new leader without triggering a general election. As long as the new leader is able to maintain the confidence of Parliament, they can immediately become Prime Minister after being formally appointed by the monarch.

Why No Election Was Required

A general election is not automatically required every time the office of Prime Minister changes hands. The governing party retains its parliamentary majority because voters elected MPs rather than an individual Prime Minister. If the ruling party chooses a new leader through its internal leadership process, the government continues to operate without interruption.

This constitutional arrangement provides stability and allows the government to continue functioning during periods of political transition. It also avoids the expense and disruption of holding a nationwide election every time party leadership changes.

The King’s Constitutional Role

After a governing party elects a new leader, the monarch invites that individual to form a government. This constitutional step is largely ceremonial and follows long-established conventions. The King appoints the person most likely to command a majority in the House of Commons, ensuring continuity of government.

Although the monarch formally appoints the Prime Minister, political power rests with Parliament and the elected representatives of the British people.

Could an Election Still Happen?

Yes. A newly appointed Prime Minister has the authority to request a general election if they believe it is politically advantageous or if they seek a stronger public mandate. Parliament can also reach a point where a government loses the confidence of the House of Commons, potentially leading to an election or the formation of a new government.

In many cases, however, a new Prime Minister continues governing until the next scheduled general election.

What This Means for the UK

The UK’s parliamentary democracy is designed to ensure government continuity while respecting the results of the most recent general election. Leadership changes within the governing party do not automatically alter the composition of Parliament, which is why a new Prime Minister can take office without another nationwide vote.

Understanding this process helps explain why political transitions in the United Kingdom can appear different from those in countries with presidential systems. While the Prime Minister may change, the democratic mandate of Parliament remains in place until voters elect a new House of Commons at the next general election.

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Economics

Global Grid Upgrades Reshape Macro Economics

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Global grid upgrades reshape macro economics

On July 21, 2026, global economic analysis shifts focus toward a defining structural macroeconomic trend: the massive expansion of public and private capital deployment into high-capacity electrical grid infrastructure. As industrial electrification, automated data center hubs, and renewable energy integration accelerate worldwide, sovereign governments and institutional investors are facing a monumental economic challenge. Updating legacy power grids to meet skyrocketing demand has emerged as a primary driver of long-term capital expenditures and industrial productivity across both developed and emerging market economies.

According to international economic policy updates released this week, grid infrastructure investments are projected to exceed multi-trillion-dollar thresholds over the coming decade. Economic planners caution that without modernized, high-voltage transmission networks, regional manufacturing sectors face severe energy bottlenecks, localized power price volatility, and operational constraints. Consequently, infrastructure spending is rapidly transitioning from passive utility maintenance into a vital component of national economic competitiveness and industrial policy.

The macroeconomic ripple effects of this capital deployment are being felt across global commodity markets and labor networks. High demand for structural industrial inputs—such as copper, aluminum, specialized electrical steel, and high-capacity transformers—has created sustained pricing support for critical material producers. Simultaneously, the specialized technical labor required to manufacture and deploy modern grid hardware is driving wage growth in industrial sectors, adding a complex new layer to central bank disinflation trajectories.

For global policymakers and strategic investors, the economics of energy grid modernization represent a double-edged sword. While massive infrastructure investment boosts short-term gross domestic product (GDP) and strengthens domestic industrial foundations, it requires disciplined fiscal allocation to prevent inflationary crowding-out of private capital. Countries that efficiently streamline grid infrastructure permitting and mobilize private investment will secure lower long-term energy costs, attracting high-tech manufacturing and reinforcing sustainable economic growth.

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Economics

Global Trade Realignment and Supply Chains in 2026

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Global Trade Realignment and Supply Chains in 2026

The international trade architecture entering the second half of 2026 is undergoing a profound structural pivot. As major sovereign economic blocs adjust to the long-term impact of unilateral tariffs and escalating regional subsidies, traditional globalized supply chains are being rapidly replaced by bilateral trade corridors and regional alliance networks. Data released in late July 2026 highlights a significant divergence: while cross-continental freight volumes between non-aligned partners have cooled, intra-regional trade throughout North America, Southeast Asia, and Eastern Europe has surged to record levels. This shift reflects a broader macroeconomic strategy wherein multinational corporations prioritize geopolitical resilience over pure cost minimization.

The primary economic catalyst behind this regionalization is the proliferation of sector-specific tariffs targeting critical industries, notably battery components, clean energy technology, and advanced semiconductor hardware. In response, global manufacturers have adopted multi-tier sourcing models that distribute production across intermediate partner nations before final assembly. While this strategy successfully bypasses primary import duties, it adds structural layers of logistical complexity and administrative oversight. Economists note that while total output remains robust, aggregate production costs have drifted upward, contributing to persistent baseline inflation across major consumer markets.

Simultaneously, currency settlement patterns within these regional blocs are experiencing a notable transformation. Sovereign central banks and commercial institutions are increasingly utilizing localized currency swap lines and digital clearing mechanisms to settle cross-border trade transactions. This transition reduces direct exposure to foreign exchange volatility and mitigates third-party liquidity constraints, further solidifying regional economic cohesion. However, for developing economies situated outside these primary trading alliances, the tightening of international trade networks presents severe challenges, restricting access to key export markets and foreign direct investment.

For corporate strategists and policy analysts navigating late 2026, success requires a thorough understanding of these emerging trade corridors. Organizations must conduct regular risk assessments of their multi-tier supplier networks, model tariff sensitivities under shifting geopolitical scenarios, and invest in real-time supply chain telemetry. As regional economic blocs strengthen their regulatory borders, supply chain agility and compliance fortitude will distinguish market leaders from vulnerable enterprises in the evolving global economy.

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