Written by Econintersect
Early Bird Headlines 07 July 2016
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 trade mixed despite US gains; oil advances (CNBC) Asia markets were mixed on Thursday, despite a stronger finish in the U.S. that followed a rise in oil prices and the release of dovish Federal Reserve meeting minutes. (See full Fed report here.)
Europe stocks open higher after oil price rise, Fed minutes (CNBC) European stocks opened higher on Thursday after a sell-off this week, buoyed by positive sentiment in the U.S. and a tentative rise in oil prices. The pan-European STOXX 600 was up 0.89%. In London the FTSE was down more than 1%.
Welsh fairytale ends as Cristiano Ronaldo takes Portugal to Euro 2016 final (The Guardian) Portugal moves into the final 2-0 over Wales to face the winner of Germany vs. France.
Multinational crew blasts off for space station (Reuters) A three-member multinational crew blasted off aboard a Russian Soyuz rocket from Kazakhstan on Thursday for a two-day trip to the International Space Station, a NASA TV broadcast showed. NASA astronaut Kathleen “Kate” Rubins, Russian cosmonaut Anatoly Ivanishin and Japanese astronaut Takuya Onishi lifted off from the Baikonur Cosmodrome at 0136 GMT on Thursday (9:36p.m. EDT Wednesday) and reached orbit nine minutes later.
U.S.
Two leading Republicans shy away from being Trump’s VP pick (Reuters) Republican Donald Trump’s list of potential vice presidential running mates got a little shorter on Wednesday when one prominent U.S. senator withdrew from consideration and a second said she wanted to focus on her home state. The moves by Bob Corker of Tennessee and Joni Ernst of Iowa could complicate Trump’s efforts to rally establishment Republicans behind his presidential bid.
Five panels to grill FBI on Clinton (The Hill) Furious congressional Republicans are launching a multipronged attack against the FBI and Hillary Clinton. A total of five congressional committees will either hold hearings with high-profile law enforcement officials over the next week or have already begun inquiries to the FBI about its investigation of the former secretary of State. House Speaker Paul Ryan (R-Wis.) called for Clinton to be barred from the intelligence briefings typically given to presidential nominees and said that State Department officials should be subjected to administrative penalties for support of the former secretary’s use of a private email server.
It’s Dollar’s Time Now Post-Brexit, Top Currency Forecaster Says (Bloomberg) The yen and the dollar have strengthened as the British pound has weakened. Some think that will continue, with dollar strengthening more than the yen in coming months. According to David Kohl, Julius Baer’s Frankfurt-based head of foreign-exchange research:
“The dollar is less owned — or over-owned — than the yen as a safe-haven currency, and given that this issue of Brexit will be with us for more weeks and months, there’s a natural demand We used to be proponents of a weaker dollar. For the next three months this could change massively.”
Longest Recoveries since 1869 (Ed Easterling, Crestmont Research) EE has contributed to GEI. There have been only three recoveries (out of 34) since 1869 that have been longer than the current recovery which started in June, 2009. All these long recoveries have occurred in the last 55 years, none in the first 98 years measured.
UK
Business confidence comes crashing down after Brexit vote (City A.M.) The Lloyds business barometer crashed from a score of 32 to just six on an index where positive scores indicate rising business activity. The fall was one of the sharpest monthly declines and takes the headline indicator to a four-year low, on a par with levels last seen during the Eurozone debt crisis.
A Welsh Steel Town Had a Lot to Lose. Why Did It Brexit? (Bloomberg) A healthy chunk of the steel produced Port Talbot, Wales, was shipped into Europe, and the EU sent millions of pounds to aid the local economy. Management at the giant mill, owned by Tata Steel, strongly urged residents to vote ‘remain’. Union bosses. Local politicians. But those voices from above seemed to only repel residents fed up with the status quo. Protesting decades of industrial decline while London thrived, 57% of the 75,652 people who voted in this once proud region of steel production decided to take a chance and leave.
Asset managers close the gate on £15bn-£20bn funds (City A.M.) Post-referendum reverberated through the City yesterday as several more property funds were forced to shut the gate on their investors, while the value of the pound languished below $1.30. Six companies’ funds, with an estimated value of £15bn to £20bn, have been frozen this week as fears over the consequences of the UK’s vote to leave the EU prompt a rush to withdraw cash from open-ended commercial property funds. Other vulnerable sectors are expected to follow. Econintersect: The rats are on the dock line.
France
French government woos London bankers with tax proposals (City A.M.) (Econintersect: After 950 years France wants to repatriate the Normans.) French may well be the language of love for London’s worried bankers, after France’s Prime Minister yesterday promised more favourable tax terms for expats.
Germany
Deutsche Boerse tells German politicians: Merged stock exchange will have EU HQ (City A.M.) Deutsche Boerse has informed politicians in Germany that it will have an EU headquarters after a merger with the London Stock Exchange. This would mean that, after a full Brexit, London would either lose or share the HQ of the combined group.
Russia
Putin Mind-Melds With Elon Musk as Russia Funds Hyperloop Dream (Bloomberg) Since Elon Musk proposed a new mode of transport in 2013 — his trademarked Hyperloop network of levitating pods that zip through tubes at breakneck speed — Russia has emerged as a key investor in its development. And Putin, who’s built pipelines of his own, pledged to champion the technology during talks last month at his annual forum in St. Petersburg with Shervin Pishevar, a Musk ally and early Uber investor who co-founded U.S. startup Hyperloop One. Econintersect: If you have any confusion about the concept, think of the speedy vacuum tube cannisters used by banks.
Afghanistan
Obama, in shift, says he will keep 8,400 U.S. troops in Afghanistan until 2017 (Reuters) President Barack Obama, calling Afghanistan’s security situation precarious, said on Wednesday he will keep U.S. troop levels there at 8,400 through the end of his administration rather than reducing them to 5,500 by year’s end as previously planned.
Philippines
S&P raises PHL growth projection (Business World) S&P Global Ratings has slightly raised its growth forecast for the Philippines this year, with the country still counted among Southeast Asia’s best performers as it expands above 6% until 2018. In a report, the global debt watcher now projects Philippine economic growth at 6.1%, higher than the 6% estimate released last April.
China
Brexit shock may boost, not hinder, yuan internationalization (Reuters) London’s role as a major offshore yuan hub is likely to survive Britain’s decision to leave the European Union, but the vote could help foster the Chinese currency’s internationalization by encouraging multiple yuan hubs in the bloc.
