Written by Econintersect
Early Bird Headlines 13 January 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
Asia stocks cheered by China trade surprise (Reuters) Asian shares made their first real rally of the year on Wednesday after Chinese data trade data beat expectations, offering a rare shaft of light for the global economy. Japan’s Nikkei jumped 2.6% from a near-one-year trough, while battered Australian stocks gained 1.3%. MSCI’s broadest index of Asia-Pacific shares outside Japan sped ahead by 1.6% and away from its lowest since late 2011. Even China’s mercurial markets found some relief with the Shanghai Composite Index up 0.8% and the CSI300 index 0.9%.
U.S.
Obama’s final State of the Union: scholars react (The Conversation) Obama’s State of the Union address demonstrated everything that has made him a good man, a civil politician, and virtuous leader – in the eyes of half the citizens in the United States. He evoked a yearning idealism for a united civil sphere, but only half the American people were listening. The other half view Obama as the most polarizing, uncivil politician on earth.
Tallying the big tax bite of a $1.5B Powerball win (CNBC) If you win $1.5 billion in the Powerball Lottery, don’t plan on spending all the winnings. Depending on how you elect to receive the payments and where you live you may end up with “as little as” about $500 million. GEI is planning to post some articles on how to deal with such a windfall sum.
Pennsylvania police fatally shoot 12-year-old at her home (The Guardian) Police constable attempting to ‘enforce an eviction order‘ fired a shot at Ciara Meyer’s father that passed through the man’s arm and hit her. Econintersect: Perhaps firearms training would have helped?
UK
BP to slash thousands more jobs in face of oil downturn (Reuters) British oil and gas company BP announced plans on Tuesday to slash 5% of its global workforce in the face of a continued slump in oil prices. It said it aims to reduce its global oil production, or upstream, headcount by 4,000 to 20,000 as it undergoes a $3.5 billion restructuring program. BP said its headcount totaled around 80,000 at the end of 2015.
Germany
German police arrest 211 after far-right riot in Leipzig (The Guardian) Hundreds of extremists break away from anti-refugee Pegida (German anti-Muslim movement) rally to smash windows and set fires in leftwing area of city. Econintersect: A new Kristallnacht?
Sweden
Why is Sweden tightening its borders after years of welcoming migrants? (The Conversation) Sweden’s decision to introduce identity checks on all incoming traffic from Denmark represents a significant step away from what was, until recently, among the most generous refugee policies in Europe. Since January 4, anyone crossing the famous bridge between the two countries (or boarding a ferry) has had to show their documents, as part of a bid to cut down on migrant and refugee numbers. Denmark has responded by tightening its own border with Germany. Sweden (as well as Germany) has received the highest number of refugees of any country in Europe.
Iran
US expects prompt return of sailors held by Iran (Al Jazeera) Iran has detained 10 US sailors aboard two small patrol boats in the Gulf after they inadvertently drifted into Iranian waters. A US defense official said plans were in place for Iran to return the sailors to a US Navy vessel in international waters early on Wednesday, Reuters news agency reported. However, an Revolutionary Guards spokesman told Iran’s Tasnim news agency that talk of the immediate release of the US sailors was speculation and that they were being questioned.
US apologises for Iran naval incursion – Revolutionary Guards (BBC News) The US has apologized to Iran after 10 American sailors were arrested for entering Iranian waters, the commander of Iran’s Revolutionary Guards naval forces has said. General Ali Fadavi accused those detained of “unprofessional” acts. But he suggested the group, who are being held by the guards, could be released soon. The incident comes at a sensitive time, as the US and Iran try to implement the deal on Iran’s nuclear activities
Pakistan
Deadly blast hits near anti-polio centre in Pakistan (Al Jazeera) At least 14 people have been killed and 20 others injured in an explosion near a polio vaccination center in the city of Quetta. Most of the dead were security forces on their way to guard the polio vaccination center, which was opening for the last day of a treatment program.
South Korea
South Korea Fires Warning Shots Over Border as Tensions Rise (Bloomberg) South Korea’s military fired warning shots after spotting an unidentified aerial vehicle approaching its heavily fortified border with North Korea, in the latest incident fueling tensions stemming from Pyongyang’s fourth nuclear test last week. The device appeared around 2:10 p.m. local time, prompting the South Korean army to broadcast a warning, the Joint Chiefs of Staff in Seoul said in a text message. It returned northward immediately after the shots were fired.
China
China’s oil imports jump 9.3% in December (MarketWatch) China’s crude imports surged in December, underscoring the country’s strong appetite for crude as it continues to fill its strategic petroleum reserves and as local refiners take advantage of cheap oil. China imported 33.19 million tons of oil in December, 9.3% higher than a year before. The increase was 21% over November imports.
China’s Stock Market: How To Make Sense Of The Bloodbath (Ky Trang Ho, Forbes) KTH has contributed to GEI. Ky explains why panic is not the correct reaction to the Chinese stock decline and the slowdown of that country’s economy.
Australia
The mainstream is waking up to capital flight (Macro Business) China is placing firm restrictions on yuan cash transfers, even down to the ATM level, in an effort to stem capital flight.