Written by Econintersect
Early Bird Headlines 10 August 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 remain jittery amid heightened North Korea tensions (CNBC) Markets in Asia remained jittery in Thursday trade, although the escalation in tensions surrounding North Korea appeared to wane slightly. Spot gold prices were at $1,279.13 an ounce by 2:22 p.m. HK/SIN. and then fell Spot gold fell 0.2% to $1,275.10 per ounce. Brent crude was up 0.42% at $52.92 a barrel at 2:29 p.m. HK/SIN and U.S. crude was up 0.34% at $49.73.
- Here’s One Take on How War in Korea Would Impact the World Economy (Bloomberg) If war were to break out, the biggest toll would be the humanitarian one. But it would shake the global economy too.
An analysis by Capital Economics Ltd. found that the supply and production of everything from smartphones and cars to flat screen televisions would take a significant hit, hurting growth around the world and pushing up prices. That’s because South Korea is embedded in a supply chain that feeds production of electronic appliances.
U.S.
- What the U.S. Military Does on Guam and Why North Korea Cares: Q&A (Bloomberg) There are two major bases on Guam: Andersen Air Force Base in the north and Naval Base Guam in the south. They are both managed under Joint Base Marianas. The tourist district of Tumon, home to many of Guam’s hotels and resorts, is in between. The naval base dates to 1898, when the U.S. took over Guam from Spain after the Spanish-American War. The air base was built in 1944, when the U.S. was preparing to send bombers to Japan during World War II. Today, Naval Base Guam is the home port for four nuclear-powered fast attack submarines and two submarine tenders.
Guam is strategically located a short flight from the Korean peninsula and other potential flashpoints in East Asia. Seoul is 2,000 miles (3,200 kilometers) to the northwest, Tokyo is 1,500 miles (2,400 kilometers) north and Taipei is 1,700 miles (2,700 kilometers) west.
Because Guam is a U.S. territory, the U.S. military may launch forces from there without worrying about upsetting a host nation that may object to U.S. actions.
- FBI raid on ex-Trump aide’s home shows Russia probe intensifies (Reuters) A raid on the Virginia home of President Donald Trump’s former 2016 election campaign manager showed an investigation of possible ties between the campaign and Russia is intensifying and focused on the financial dealings of Trump associates, sources familiar with the probe said. Longtime political consultant and lobbyist Paul Manafort is being investigated for possible money laundering and has been targeted as someone who might testify against former colleagues, said two people familiar with the work of Special Counsel Robert Mueller. Manafort’s spokesman Jason Maloni confirmed on Wednesday that the FBI executed a search warrant at one of Manafort’s homes.
- Google Fires Author of Divisive Memo on Gender Differences (Bloomberg) Alphabet Inc.’s Google has fired an employee who wrote an internal memo blasting the web company’s diversity policies, creating a firestorm across Silicon Valley. James Damore, the Google engineer who wrote the note, confirmed his dismissal in an email, saying that he had been fired for “perpetuating gender stereotypes.” He said he’s “currently exploring all possible legal remedies.” Earlier on Monday, Google CEO Sundar Pichai sent a note to employees that said portions of the memo “violate our Code of Conduct and cross the line by advancing harmful gender stereotypes in our workplace.”
- Fallout: Trump’s ‘fire and fury’ sends officials scrambling (The Hill) U.S. officials scrambled Wednesday to clarify the administration’s position on North Korea after President Trump’s warned that “fire and fury” would come to Pyongyang if it threatens the United States. The White House pushed back on reports that Trump’s national security advisers were caught off-guard by Trump’s statement, but acknowledged the president’s exact phrasing was not planned. See also Trump’s Threat to North Korea Was Improvised (The New York Times).
- U.S. Job Openings Surge to Record in Sign of Robust Labor Demand (Bloomberg) The gain in job openings underscores the need for workers in an economy that’s continuing to expand. At the same time, the pool of qualified Americans is shrinking and making some positions tougher to fill, one reason economists expect the monthly pace of hiring will eventually cool. July figures released last week showed payrolls increased more than forecast while the unemployment rate matched a 16-year low, as Americans came off the sidelines to join the labor force and many found work. For complete employment report analysis see July 2017 BLS Jobs Situation Interesting This Month.
North Korea
- North Korea details Guam missile plan, calls Trump’s warning a ‘load of nonsense’ (Reuters) North Korea dismissed as a “load of nonsense” warnings by U.S. President Donald Trump that it would face “fire and fury” if it threatened the United States, and outlined on Thursday detailed plans for a missile strike near the Pacific territory of Guam.
- South Korea, Japan Warn Kim Against Firing Missile at Guam (Bloomberg) South Korea and Japan warned North Korea that it would face a strong response if it carried through with a threat to launch a missile toward the U.S. territory of Guam.
Defense Minister Itsunori Onodera said it would be legal for Japan to intercept a missile aimed at Guam, Kyodo News reported. North Korea’s threats to strike around Guam poses a serious challenge, a spokesman at South Korea’s Joint Chiefs of Staff told reporters on Thursday.
- Geography 101: “Get Trump an Atlas”. Trump Wants to Bomb North Korea With Nuclear Weapons. Where is the Target Country? (Global Research) Dropping a nuclear bomb on North Korea’s capital Pyongyang would create destruction in Seoul, South Korea (121 miles away) and along the border in China (as close as 100 miles away). In fact, the entire Northeast Asian region – which largely consists of five countries – would also be affected by the nuclear blast.
China
- China’s banking sector, the health of which is closely-watched globally, enters earnings season in August
- Indicators such as net interest margin, non-interest income and non-performing loan ratio will demonstrate the impact of China’s deleveraging effort on banks
- Early signs showed strains could creep up among small- and mid-sized banks, but the “big five” were largely spared
Canada
- Canada to set up border camp as number of asylum seekers swells (Reuters) Canada has deployed soldiers to erect tents near the U.S. border to temporarily house hundreds of asylum seekers crossing from New York state, officials said on Wednesday, an influx of mostly Haitians prompted by fear of deportation by the U.S. government.
Around 250 asylum seekers are arriving each day in Montreal, the largest city in Canada’s mainly French-speaking Quebec province. Quebec has opened its Olympic Stadium, a former hospital and a school among other places to house people.
Heated tents will accommodate up to 500 people as Canadian border officials process mainly Haitians walking into Canada from the United States.
