Written by Econintersect
Early Bird Headlines 06 September 2019
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, published Monday, Wednesday and Friday, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
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Notice: We have changed the form of content coverage for Early Bird. We will provide discussion only for Asia Markets news and a small number (often 1 or 2) other articles. The remainder of the content will be headlines (with links) only.
Key Articles
Global
- Asia markets advance as ZTE shares jump in Hong Kong and Shenzhen (CNBC) Asia markets gained on Friday ahead of U.S. nonfarm payrolls numbers due later in the day. Investors also watched for developments on the trade front after global markets rallied on the back of news that the U.S. and China could return to the negotiating table next month. The U.S. dollar index was last at 98.347, climbing from levels around 98.1 yesterday. Brent crude futures were just below the flatline at $60.93 per barrel and U.S. crude futures slipped fractionally to $56.26 per barrel. Spot gold was down 0.6% to $1,509.41 per ounce as of 0709 GMT but had recovered from a low of $1,504.30, its lowest since Aug. 23. U.S. treasuries continued to fall in price (rise in yield) after a huge move in the U.S. market Thursday.
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- Global Outlook: Deflation is Back… (but) (Top Down Charts, LinkedIn) Deflation is knocking at the door of the global economy. But, asks Callum Thomas, who is going to answer, and who is really at the door? (and so what??). Callum explores the data in some detail, but here is a chart showing the proportion of countries experiencing “deflation” (i.e. negative growth year over year) across consumer price inflation, corporate earnings, and industrial production. After the deflation dissipation of 2017-18, a new deflationary wave is sweeping the globe.
U.S.
- Weak U.S. Business Investment (The Daily Shot) Analysts are concerned about weak business investment. Here is Morgan Stanley’s CapEx plans index and the actual spending (which data trails the plans by about 6 months):
China
- China’s central bank cuts reserve requirement ratio (CNBC) The move is quite aggressive:
- The PBOC said its reserve requirement ratio would be cut by 50 basis points.
- It said it would further reduce that ratio by 100 basis points for some qualified banks.
- The move is effective from September 16.
A woman walks past the headquarters of the People’s Bank of China in Beijing, China. Jason Lee | Reuters
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Other important articles
Global
- Why Do Countries Borrow in Foreign Currency? (Pragmatic Capitalism)
U.S.
- White House adviser gives Trump cover on Alabama hurricane claim (The Hill)
Federal student loan forgiveness program rejects almost everyone, again (Los Angeles Times)
- Hurricane Dorian brings tornadoes to Myrtle Beach (Greenville News)
EU
- Lagarde open to combining euro zone bonds in a common asset (Reuters)
- Inequality in Europe – wider than it looks (Social Europe)
- In Europe, U.S. defense secretary to call for greater effort to counter China, Russia (Reuters)
UK
- Sibling blow to Boris Johnson as brother quits cabinet (The Guardian)
- Challenge to UK Parliament suspension fails (BBC News)
Afghanistan
- Taliban attack third Afghan provincial capital in a week (Associated Press)
- Afghan government raises new concerns about US-Taliban deal (Associated Press)
India
- Indian woman, 73, gives birth to twin girls (BBC News)
China
- US-China trade dispute is ‘already in the early stages’ of a second Cold War, Niall Ferguson says (CNBC)
- Hong Kong students form human chains in continuing protests (Associated Press)
- Carrie Lam: Hong Kong extradition bill withdrawal backed by China (BBC News)
- Hong Kong leader says bill withdrawal a first step as city braces for weekend protests (Reuters)
Bahamas
Canada
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