Written by Econintersect
Early Bird Headlines 19 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 mostly lower; shares of SoftBank, Line tumble 10 pct each (CNBC) Asian markets were mostly lower on Tuesday, with shares of internet and telecommunication giant SoftBank tumbling around 10 percent after its $32 billion bid for a chip firm.
The World Bank hires a famous contrarian (The Economist) The World Bank has strayed from the neoliberal footpath and hired Paul Romer as its Chief economist.
It has been a while since a chief economist of the World Bank attracted much attention. In the 1990s, when Larry Summers and Joseph Stiglitz held the job, those occupying the position were often at the center of heated debates on economic policy. Mr Stiglitz, a fierce critic of the conditions imposed by international organizations like the International Monetary Fund on countries affected by the crises of the late 1990s, was dismissed from the position for his heresies. Since then chief economists have been less outspoken.
That may change, however, with the appointment of Paul Romer, of New York University, as successor to Kaushik Basu (previously an economist at Cornell University and an adviser to the Indian government). Mr Romer is an intriguing figure: a respected economist, an expansive and unorthodox thinker on issues of economic development and an occasionally fierce critic of the field of economics itself.
U.S.
Why convention could be good for stocks, even after Trump surprises Wall Street (CNBC) Donald Trump says he wants to break up the big banks.
Fiat Chrysler Sales Reports Probed by Justice Department, SEC (Bloomberg) Fiat Chrysler Automobiles NV is under investigation by U.S. authorities over how it reports sales, the company said. Fiat Chrysler is cooperating with investigations by the Justice Department and the Securities and Exchange Commission into the reporting of vehicle sales to customers in the U.S., the company said in a statement Monday.
AP FACT CHECK: No proof of shooting motive as Trump claims (Associated Press) Trump tied two of his major issues (fighting terrorism from overseas and domestic law and order) together, suggesting that the shooter in the latest police killing in Baton Rouge, Louisiana, on Sunday was motivated by “radical Islam“. But Trump’s comment Monday during an interview on “Fox & Friends“, got out far ahead of what law-enforcement and security authorities have said about what may have motivated the man who shot and killed two police officers and one sheriff’s deputy. Early indications are that he had no known ties to any radical Islamic group.
Anti-Trump Factions Disrupt Vote at Republican Convention (Bloomberg) Republican factions trying to stop Donald Trump’s presidential nomination noisily disrupted a vote on convention rules, putting on full display the fissures in the party on the first day of its national gathering.
Netflix posts earnings of 9 cents a share vs. 2 cents expected (CNBC) Netflix shares dropped as much as 15% in after-hours trading after the company posted subscriber numbers that missed its own guidance. This news overshadowed the movie-streaming company’s earnings results that beat analysts’ expectations on Monday. The company said it added 1.7 million subscribers during the quarter, below its own expectations of 2.5 million. For more on Netflix, see Netflix Challenges TV Heavyweights At The Emmys In Spite Of Low Subscriber Growth.
UK
How Theresa May’s government can help struggling families (The Conversation) As many as one in three families in the UK fall below a minimum standard of living, based on what members of the public consider to be socially acceptable. Many are remarkably resourceful on low incomes. Typically, families were highly organized and worked hard to eke out their scarce resources, looking carefully for the best deals and being disciplined about not getting into debt. Others were fighting an uphill battle, finding it hard to afford the basics, juggling debts, always feeling skint. What distinguished these families was not just their personal qualities, but the situations they found themselves in – often because of factors beyond their control, such as family illness or insecure work. The author suggests that promoting more reliable forms of work, housing and childcare is as good an agenda as any for a government newly committed to helping people who are barely managing to keep their heads above water. Econintersect: But no specific suggestions are offered.
Germany
Afghan refugee with ax attacks passengers on German train (Reuters) A 17-year-old man refugee from Afghanistan with an ax attacked passengers on a train in the German state of Bavaria late on Monday and severely wounded 4 people before he was shot and killed by police. Up to 15 people may have been injured.
Ireland
Ireland Hits Brexit Alarm in Biggest Foreign Crisis in 50 Years (Bloomberg) The intertwining of trade and finance means no other country is feeling the fallout from the U.K.’s vote to leave the European Union more than Ireland. In the year the Irish marked the centenary of their uprising against British rule, the country remains at the mercy of the unfolding drama in its closest neighbor.
Turkey
Confusion over Turkey coup ‘confession’ (BBC News) A former air force commander has denied being a ringleader of Friday’s attempted military coup in Turkey. Gen Akin Ozturk and 26 senior officers were charged with treason and remanded in custody by a court on Monday, the state-run Anadolu news agency said. But in a statement to prosecutors, the general insisted: “I am not the person who planned or led the coup.” Anadolu had earlier quoted him as telling interrogators that he had “acted with intention to stage a coup“.
Military coup was well planned and very nearly succeeded, say Turkish officials (The Guardian) Government ministers admit they fully expected to be killed by army rebels, but plotters blundered by attacking parliament, alienating potential supporters.
Why did Turks react so strongly against anti-ErdoÄŸan coup? (The Conversation) The coup plotters were unable to win popular support because while ErdoÄŸan is a loathed authoritarian figure, Turks do not want to return to military authoritarianism either. Its reputation precedes it and Turks have long memories. “The worst democracy is better than no democracy” has been a familiar refrain on social media.
