Written by Econintersect
Early Bird Headlines 09 October 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.
Please share this article – Go to very top of page, right hand side for social media buttons.
Global
- Mainland China markets shine despite lackluster Caixin services PMI (CNBC) Most Asia markets made gains on Monday as investors in Asia digested the release of China Caixin services PMI. The dollar index eased 0.1% to 93.733. On Friday, it had scaled a high of 94.267, its strongest in more than two months. Brent crude rose 0.25% to trade at $55.76 a barrel and U.S. West Texas Intermediate crude advanced 0.37% to trade at $49.47.
- Schaeuble, who is poised to become speaker of the Bundestag in Germany’s new government, warned that “new bubbles” could soon emerge after central banks pumped trillions of dollars into financial markets.
- Schaeuble has long been the most pro-European politician in Chancellor Angela Merkel’s cabinet and was a key influence to the continent’s policy response to the euro zone debt crisis.
- It’s Market Mania for Assets All Around the World (Bloomberg) Financial markets posted fresh records this week, as the upswing in global manufacturing added fresh legs to the relentless rally in equity and credit markets around the world. The most eye-catching: The U.S. stock market’s volatility gauge set an all-time low Thursday while the S&P 500 Index jumped to a fresh high, its sixth consecutive record close — a feat last repeated back in 1997.
U.S.
- Bannon Plans to Back Challengers to Most GOP Senators (Bloomberg) Steve Bannon plans to back primary challengers to almost every Republican senator who runs for re-election next year in an effort to depose Majority Leader Mitch McConnell and streamline Senate voting procedures, three people familiar with his plans said. Only Senator Ted Cruz of Texas is safe from the nascent political organization led by Donald Trump’s former chief strategist, the people said — because Cruz is considered conservative enough and is thought to be moving toward the more populist approach Bannon favors.
- Trump demands border wall funds for Dreamer proposal (The Hill) The White House on Sunday said it would seek more funds from Congress to finance building a border wall along the U.S.-Mexico border, as well as more resources to hire thousands more immigration officers. The Trump administration’s new “immigration principles and policies” call for a crackdown on border security, more resources to catch individuals residing in the country illegally, as well as a merit-based system that limits chain migration to spouses and children.
The new demands would have to be met for President Trump to agree to legislation that would protect from deportation young immigrants who entered the country illegally as children. These recipients of the Deferred Action for Childhood Arrivals (DACA) program, often called “Dreamers,” have been the focal point of recent talks between Trump and Democratic leaders of Congress.
- I was skeptical that the anti-vaccine movement was gaining traction. Not anymore. (Vox) Vaccine refusals are rising in many parts of the country because states have made it easier for parents to opt out.
- Corker: Trump is setting up the country for World War III (The Hill) Sen. Bob Corker (R-Tenn.) said that President Trump’s threats to other countries could put the U.S. “on the path to World War III.” Corker told The New York Times Sunday that Trump was treating the presidency like “a reality show” and acts “like he’s doing ‘The Apprentice’ or something.”
- Oil Companies Wade Back Into Gulf of Mexico as Nate Fizzles (Bloomberg) Oil companies were heading back into the Gulf of Mexico and working to restore operations after Hurricane Nate fizzled out over the U.S. South on Sunday. While an estimated 93% of U.S. oil production in the Gulf was still shut, no damage had been reported, suggesting crude and natural gas supplies may quickly rebound this week. Power failures related to Nate, which was downgraded to a tropical depression over Alabama, have fallen to about 66,000 customers, utility data compiled by Bloomberg show. Damage estimates for the storm fell to $2.5 billion as New Orleans was spared. Sig Silber’s latest report: Nate Impacts Continue through Monday – 09Oct2017.
UK
- BRC calls for a “demand-led and simple” solution for EU workers as UK faces workforce shortage (City A.M.) Uncertainty over the UK’s position on immigration is creating a workforce shortage, the UK’s retail industry body has warned. New figures from the British Retail Consortium (BRC) suggest that uncertainty over the result of Brexit negotiations has already led some EU workers to leave the UK. The BRC’s latest report into the impact of Brexit on consumers found that 22% of retailers reported that people from the EU have already left their workforce since the vote to leave the bloc.
- The ball’s in your court, May tells EU leaders (The Times) Theresa May will warn European leaders today that Britain will make no more concessions on Brexit until they compromise on opening trade and transition talks. The embattled prime minister will use a statement to the House of Commons to tell other member states that “the ball is in their court” as British negotiators return to Brussels. She will also implicitly warn of the risk of talks breaking down, calling for both sides to be constructive and “prove the doomsayers wrong“.
- City chiefs blast Tory infighting as Brexit transition deadline looms (City A.M.) Senior City figures have expressed growing fears that turmoil in Westminster is distracting the government from Brexit negotiations as the pressure mounts to secure an all-important transition deal.
Royal Bank of Scotland chairman Sir Howard Davies yesterday warned the government has taken its “eye off the ball” when it comes to Brexit amid continued in-fighting in Prime Minister Theresa May‘s government.
Turkey
- Turkish Lira Tumbles in Asia Witching Hour as Tensions Escalate (Bloomberg) Traders scrambled Monday morning as Turkey’s lira plunged, turning off live platform pricing and restricting quotes amid volatility caused by rising tensions between the U.S. and its NATO ally. As politics pushed the lira to a record low against a basket of currencies including the euro and the dollar, requests for quotes on “show side only” basis were flashing, according to traders familiar with the transaction who asked not to be identified because they aren’t authorized to speak publicly.
China
- China services sector growth falls to 21-month low in September: Caixin PMI (CNBC) Business activity in China’s services sector grew at its slowest pace in 21 months in September as the pace of new business cooled, a private survey showed. The survey was in sharp contrast to an official gauge of the non-manufacturing sector that showed the services sector expanded at the fastest clip since 2014 in September, blurring the picture on how a key part of the economy is performing.
