Written by Econintersect
Early Bird Headlines 25 April 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 markets fall across the board, as central bank decisions eyed (CNBC) Asia markets lost ground across the board on Monday, with many traders likely taking to the sidelines ahead of several central bank decisions this week.
Solar Impulse lands in California after Pacific crossing (BBC News) The solar-powered airplane Solar Impulse has landed in Silicon Valley, California, after a three-day flight over the Pacific Ocean from Hawaii. High winds delayed the landing at Moffett Airfield, Mountain View, as pilot Bertrand Piccard flew in a holding pattern off the coast. “The Pacific is done,” he declared just before landing. The latest leg of the round-the-world flight was the riskiest yet because of the lack of emergency landing sites.
It’s Dangerous Out There in the Bond Market (Bloomberg) Bond investors are taking bigger risks than ever before. Yields on $7.8 trillion of government bonds have been driven below zero by worries over global growth, meaning money managers looking for income are pouring into debt with maturities of as long as 100 years. Central banks’ policy is exacerbating matters, as the unprecedented debt purchases to spur their economies have soaked up supply and left would-be buyers with few options. Investors face damaging losses if yields rise even a little – a half-percentage point increase would wipe out $1.6 trillion. Econintersect: That could start a panic.
U.S.
Charles Koch: ‘Possible’ Clinton could be better than GOP nominee (CNN) How bad would a Republican have to be for a Koch brother to back a Democrat? How about the current GOP field? Well, ‘never’ may yet arrive based on comments Charles Koch made Sunday.
Oil Bulls Plunge Into Market as U.S. Gasoline Demand Hits Record (Bloomberg) Money managers shrugged off the failure of the world’s biggest oil producers to agree on an output freeze as U.S. gasoline demand surged. West Texas Intermediate crude surged 8.3% the week after talks in Doha collapsed. Investors focused on falling U.S. output and higher fuel use as the peak summer driving season approaches. American gasoline consumption rose to 9.25 million barrels a day in March, an all-time high for that month, the American Petroleum Institute said April 21.
UK
Obama’s desperate EU claims say more about Remain failures than Brexit truth (City A.M.) The President, who remains far more popular in the UK than in the US, was called upon by an increasingly desperate Prime Minister David Cameron to add his two cents to the EU referendum debate. Despite what a number of his critics say, it is altogether fitting and proper that he do this. But this reporter says that Obama’s inference that the U.S. would not still keep Great Britain as a close ally should the UK leave the EU was “patently stupid“.
Germany
Obama pushes for global trade deals in face of opposition (Associated Press) President Barack Obama mounted a strong defense of international trade deals Sunday during his visit to Germany in the face of domestic and foreign opposition, saying it’s “indisputable” that such agreements strengthen the economy and make U.S. businesses more competitive worldwide. But he acknowledged that the clock is ticking on his faltering trade agenda. Obama is trying to light a fire under stalled talks about a trans-Atlantic trade deal, a massive pact that would rewrite the rules for the billions in trade and investment between the European Union and the U.S.
Turkey
Kurdish PKK warns Turkey of long fight for freedom (BBC News) The Kurdish rebel PKK movement has told the BBC that it is ready to intensify its fight against Turkey because Ankara is trying to make it surrender. Kurdistan Workers’ Party (PKK) leader Cemil Bayik said President Recep Tayyip Erdogan was “escalating this war“. He said:
“The Kurds will defend themselves to the end, so long as this is the Turkish approach – of course the PKK will escalate the war.”
Syria
Syria conflict: Obama ‘to send 250 more non-combat troops’ (BBC News) US President Barack Obama is to send 250 additional military personnel to Syria to support local militias in the fight against so-called Islamic State (IS), officials have said. The goal, they say, is to encourage more Sunni Arabs to join Kurdish fighters in north-eastern Syria. The new deployment will bring to 300 the number of US forces in non-combat roles in Syria. In a BBC interview, Mr Obama ruled out sending ground troops there. He said military efforts alone cannot solve Syria’s “heart-breaking situation of enormous complexity“.
India
Soaring mercury level in Vellore takes a toll on bulls (The Hindu) Haulers in India’s heatwave stricken regions are asking for quarry hours to avoid further killing of bulls used to pull wagons of sand. The scorching heat, up to 47 degrees Celsius (117 degrees Fahrenheit), has killed at least seven bulls at the Rangapuram quarry.
India revokes passport of drinks tycoon Vijay Mallya (BBC News) India has revoked the passport of business tycoon Vijay Mallya accused of hiding in Britain over billions in debt from his defunct Kingfisher Airlines. There is an arrest warrant for Mr Mallya and Delhi says it is considering seeking his deportation from the UK. The flamboyant businessman is known as India’s Richard Branson for his investment in aviation, Formula 1, Indian cricket and the drinks industry. His debts were triggered by the failure of his Kingfisher Airlines in 2013.
Nepal
The cracks are still open (The Hindu) The Nepalese government is guilty of abject neglect of its citizenry a full year after last year’s devastating earthquake which killed more than 8,000 and left wide areas completely destroyed, according to this Op Ed.
China
China debt load reaches record high as risk to economy mounts (CNBC) China’s total debt rose to a record 237% of gross domestic product in the first quarter, far above emerging-market counterparts, raising the risk of a financial crisis or a prolonged slowdown in growth, economists warn. Beijing has turned to massive lending to boost economic growth, bringing total net debt to Rmb163 trillion ($25 trillion) at the end of March, including both domestic and foreign borrowing, according to Financial Times calculations. Such levels of debt are much higher as a proportion of national income than in other developing economies, although they are comparable to levels in the U.S. and the eurozone.
