Written by Econintersect
Early Bird Headlines 25 May 2017
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.
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Global
Asian markets mostly higher after Fed minutes; oil prices up ahead of OPEC meeting (CNBC) Markets were mostly higher on Thursday after U.S. Federal Reserve May meeting minutes indicated an unwinding of its balance sheet likely towards year-end and as investors look ahead to an OPEC gathering widely expected to extend output cuts. The dollar index sank to 96.916 at 11:55 a.m HK/SIN. U.S. crude was added 0.72% to trade at $51.73 a barrel while Brent crude rose by 0.76% to $54.37. Spot gold was nearly flat at $1,258.61 per ounce by 0326 GMT. It rose about 0.6% on Wednesday. U.S. gold futures were up 0.5% at $1,258.7 an ounce.
Bitcoin Just Hit $2,600 (Twitter)
U.S.
New CBO score triggers backlash (The Hill) See also Key GOP senators slam House Obamacare replacement after CBO report. The Republican healthcare bill would result in 23 million fewer people with insurance over a decade, steep premium increases for older people and price hikes for many people with pre-existing conditions, the nonpartisan Congressional Budget Office (CBO) said Wednesday. [Read a complete summary of the report on Trumpcare]
The long-awaited analysis of the ObamaCare repeal bill found that a controversial amendment from Rep. Tom MacArthur (R-N.J.) – added at the last minute to secure conservative votes – would have a significant effect despite Republican assurances to the contrary.
The amendment allows states to waive rules governing what an insurance plan must cover and lets insurers charge sick people more based on their health.
Trump faces rougher reception in NATO, EU meetings (Reuters) After a warm welcome in the Middle East and a “fantastic” visit with the pope, U.S. President Donald Trump walks on shakier ground on Thursday when European Union and NATO leaders will press him on defense, trade, and environmental concerns. The Republican president, midway through his first foreign trip since taking office, has basked in the glow of favorable receptions in Riyadh and Jerusalem, where leaders lauded his harsh words for Iran. Praise may be in shorter supply in Brussels. Trump questioned the relevance of the NATO military alliance as a presidential candidate, and is considering pulling the United States out of the Paris agreement on climate change – a huge concern in Europe. The EU was also a party to the Iran nuclear agreement, which Trump has criticized sharply.
Bad intel from Russia influenced Comey’s Clinton announcement: report (The Hill) Former FBI Director James Comey’s controversial decision to detail the FBI’s findings in the Hillary Clinton email case without Justice Department input was influenced by a dubious Russian document that the FBI now considers to be bad intelligence, The Washington Post reported Wednesday.
The secret document, which purported to be a piece of Russian intelligence, claimed that former Attorney General Loretta Lynch had privately assured someone in the Clinton campaign that the investigation into Clinton’s handling of classified information would go nowhere.
But according to people familiar with the matter, by August the FBI had come to believe the document was unreliable – and in fact may have been planted as a fake to confuse the FBI.
Comey made his announcement in July.
Trump Administration Says It Isn’t Anti-Science As It Seeks to Slash EPA Science Office (ProPublica)
When the city of Toledo temporarily lost access to clean drinking water several years ago after a bloom of toxic algae, the Environmental Protection Agency sent scientists from its Office of Research and Development to study health effects and formulate solutions.
The same office was on the front lines of the Flint water crisis and was a critical presence in handling medical waste from the U.S. Ebola cases in 2014.
President Trump’s 2018 budget would slash ORD’s funding in half as part of an overall goal to cut the EPA’s budget by 31 percent.
ORD has no regulatory authority, but it conducts the bulk of the research that underlies EPA policies. ORD scientists are involved in “virtually every major environmental challenge the nation has,” Burke said. Diminishing the role and input of the office, he said, risked leaving the country “uninformed about risks and public health.”
Net Neutrality Debate: Businesses Favor Rules Despite FCC Chairman Pai’s Claims (International Business Times) The Federal Communications Commission voted last week along party lines to move forward with Chairman Ajit Pai’s plan to roll back current net neutrality protections, citing restrictions on business investment and innovation as the primary reason for repeal. Despite the claims of the agency head, many businesses would rather keep the current rules in place.
Donald Trump’s Base Is Shrinking (FiveThirtyEight) A widely held tenet of the current conventional wisdom is that while President Trump might not be popular overall, he has a high floor on his support. Trump’s sizable and enthusiastic base – perhaps 35 to 40% of the country – won’t abandon him any time soon, the theory goes, and they don’t necessarily care about some of the controversies that the “mainstream media” treats as game-changing developments. But the theory isn’t supported by the evidence. To the contrary, Trump’s base seems to be eroding. There’s been a considerable decline in the number of Americans who strongly approve of Trump, from a peak of around 30% in February to just 21 or 22% of the electorate now.
UK
UK hits out at US over leaks in Manchester attack probe (Financial Times) British security officials investigating the Manchester terror attack are considering withholding sensitive information from Washington after a series of damaging leaks they fear are endangering British lives. Such a move would break with years of ever-closer counter terrorism work between the US and the UK that has followed the September 11 attacks.
As British authorities race to gather intelligence on the Manchester bomber, fearful of a potential second terror attack, the growing controversy over the secrecy of their work is threatening to sour relations with the UK’s closest ally.
UK intelligence and security agencies are frustrated by leaks of up-to-date information about the attack which appears to have been disclosed to media by US counterparts without permission.
China
Does the PBOC Need to Raise Rates? (Twitter)
In first under Trump, U.S. warship challenges Beijing’s claims in South China Sea (Reuters) A U.S. Navy warship sailed within 12 nautical miles of an artificial island built up by China in the South China Sea, U.S. officials said on Wednesday, the first such challenge to Beijing in the strategic waterway since U.S. President Donald Trump took office. The officials, speaking on condition of anonymity, said the USS Dewey traveled close to the Mischief Reef in the Spratly Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors.
The so-called freedom of navigation operation, which is sure to anger China, comes as Trump is seeking Beijing’s cooperation to rein in ally North Korea’s nuclear and missile programs.
Territorial waters are generally defined by U.N. convention as extending at most 12 nautical miles from a state’s coastline.