Written by John Lounsbury
Early Bird Headlines 13 October 2015
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, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Global
Asian Stocks Lower on Weak China Import Data (abc News) Asian stock markets were lower Tuesday as China’s trade data showed a larger-than-expected slide in imports, deepening concerns about slowdown in the world’s second-largest economy. See next article.
Major World Indices (Investing.com) There is almost all red this morning for Asian and European markets. Data shown as of 4 am New York time 13 October. For latest data click on chart.
New international climate chief faces a serious communication challenge (The Conversation) How do technical nerds communicate with a nontechnical public? That is a challenge facing Hoesung Lee of South Korea, the new chair of the Intergovernmental Panel on Climate Change (IPCC).
Earth’s Gravitational Pull Cracks Open the Moon (Space.com) Research has found that Earth’s gravitational pull is massaging the moon, opening up faults in the lunar crust. Just as the moon’s gravitational pull causes seas and lakes to rise and fall as tides on Earth, the Earth exerts tidal forces on the moon. Scientists have known this for a while, but now they’ve found that Earth’s pull actually opens up faults on the moon that are observable and measurable.
AB InBev/SABMiller reach agreement in principle on key terms of offer (CNBC) Is it time to tasarily – statement issued says that “there can be no certainty that a formal offer will be made, adding that a further announcement will be released when appropriate“.
U.S.
Insurance Dropouts Present a Challenge for Health Law (The New York Times, MSN News) There is no comprehensive data on why people drop or lose their marketplace coverage. Enrollment counselors, health care providers and consumers say cost is a factor. In some cases, people lost jobs or their income dropped after they enrolled. Other people signed up for coverage only to decide later that they could not afford it. Still others dropped their insurance after their federal subsidies – intended to help pay premiums – were reduced or eliminated because the government could not verify their incomes or concluded that they were earning more than they had reported on their applications.
Dick Bove: US banks have been ‘nationalized’ (CNBC) According to Dick Bove, a transportation bill in Congress has put the U.S. well on the road to socialism. The bipartisan Senate bill, announced in July, would cut the dividend paid by the Federal Reserve to banks each year from 6% to 1.5%, and the difference would go toward funding highway projects. Bove said:
“The government has taken the position that, because they offer FDIC insurance, they have the right to invade banks. Unfortunately, I believe the banks have been nationalized; I believe we’re well on the road to socialism in terms of the way we’re taking money flows out of the banking system and putting it into highways,”
UK
Update: Glencore May Be Worse Than I Thought (Michael Lewitt, Sure Money) ML has contributed to GEI. A short-covering rally has some incestors thinking the worst is over for this global commodities and mining giant. Lewitt says those that buy this rally will pay dearly.
Spain
Spain marks its national day – but not everyone is celebrating (The Conversation) Spain has been marking its national day – the anniversary of the arrival of Cristóbal Colón (otherwise known as Christopher Columbus) in the Americas. But this year’s nationwide holiday comes at a moment of significant tension, amid questions about whether the nation will hold together for much longer.
Turkey
Turkish PM blames Ankara bombing on Islamic State (BBC News) The Islamic State (IS) group is the prime suspect in the Ankara bombings that killed nearly 100 on Saturday, Turkish PM Ahmet Davutoglu has said. No group has said it carried out the attack, but the government believes that two male suicide bombers caused the explosions, hitting a peace rally. The official death toll is 97 but rally organisers have put the figure at 128. Econintersect: Later official reports raised the total killed to 105 (according to the next article).
Why We Should Assume Erdogan Played a Role in the Ankara Bombing (National Review) Hat tip to Sig Silber. The proposal here is that if ISIS was responsible for the bombing in Ankara that it would necessarily “have taken place with the connivance of Turkish intelligence“. Some convincing evidence is presented to support the thesis. The death toll in the bombing last Saturday has now risen to 105 with more than 400 injured. No one has yet claimed responsibility for the attack.
China
China imports collapse in September, exports remain weak (CNBC) China’s trade slump extended into September, with imports collapsing and exports remaining feeble, underscoring the fragile state of the world’s number two economy. Dollar-denominated imports plunged by a worse-than-expected 20.4% in September from a year earlier, while exports slipped 3.7%, producing a trade surplus of $60.34 billion
China to put growth before reform ambitions amid slowdown fear (Reuters) Chinese leaders will signal that growth is their priority over reform for the world’s second-biggest economy by setting a growth target of around 7% in their next long-term plan even as the economy loses momentum, policy insiders say. The Communist Party’s central committee will meet from Oct. 26-29 to set out their 13th Five-Year plan, a blueprint for economic and social development between 2016 and 2020. While the government has flagged a “new normal” of slower growth as it tries to shift the economy to sustainable, consumption-led growth, official data shows it has consistently at least met, and mostly exceeded, the growth targets it sets. Econintersect: Not mentioned is the questioning of the official data by some skeptics.
China’s Political Predicament (Asian Century Institute) John West (who contributes to GEI) Discusses turmoil in China, sudden exchange rate devaluation, Shanghai stock exchange meltdown, a factory explosion in Tianjin and massive capital flight. He asks if the infallible Chinese government losing its touch?
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