Written by Econintersect
Early Bird Headlines 14 December 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, published Monday, Wednesday and Friday, 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 are mostly lower, but South Korean stocks gain ground (CNBC) Most Asian markets were marginally lower on Thursday after the Federal Reserve raised interest rates for the third time this year, though South Korea shares were higher. The dollar index was lower at 93.359 at 12:27 p.m. HK/SIN. U.S. West Texas Intermediate (WTI) crude futures were at $56.77 a barrel at 00344 GMT, up $0.17, or 0.3%, from their last settlement. Brent crude futures, the international benchmark for oil prices, were at $62.81 a barrel, up $0.37, or 0.6% from their last close. Spot gold was up 0.15% at $1,257.11 an ounce as of 0123 GMT, after rising nearly 1 percent in the previous session. U.S. gold futures were up nearly 1% at $1,260.60.
- Oil prices up on lower U.S. crude stocks, but growing output caps gains (Reuters) Oil markets rose on Thursday, lifted by a fourth straight weekly fall in U.S. crude inventories, though climbing output capped prices well below the 2015 highs reached earlier this week. A cap on prices has been soaring U.S. oil production, which has risen by 16% since mid-2016 to 9.78 million barrels per day, the highest since the early 1970s and close to levels from top producers Russia and Saudi Arabia.
- One Planet Summit: World Bank to Stop Financing Oil, Gas Projects (Ecowatch) In effort to bolster a global shift to clean energy, the World Bank – which provides financial, advisory and technical support to developing countries – announced it will “no longer finance upstream oil and gas, after 2019.” The World Bank’s plan to stop financing oil and gas exploration and extraction is aimed at helping countries meet their emissions reduction pledges made at the 2015 Paris climate talks. The bank noted in a statement that
“in exceptional circumstances, consideration will be given to financing upstream gas in the poorest countries where there is a clear benefit in terms of energy access for the poor and the project fits within the countries’ Paris Agreement commitments.”
U.S.
U.S. agency to vote on net neutrality rules despite outcry (Reuters) Internet service providers clashed with Democrats and celebrities like “Star Wars” actor Mark Hamill ahead of a vote on the Trump administration’s plan to revoke net neutrality rules barring the blocking or slowing of internet traffic.
The Federal Communications Commission is due to vote on Thursday on chairman Ajit Pai’s plan to rescind so-called net neutrality rules championed by Democratic former President Barack Obama that treated internet service providers like public utilities.
Protesters including some members of Congress are expected to rally outside the FCC before the vote. The American Civil Liberties Union and consumer advocacy groups are also opposed to reversing net neutrality rules.
- Republicans relieved by Moore loss in Alabama (The Hill) Republicans are breathing a sigh of relief after GOP Senate candidate Roy Moore’s defeat Tuesday in Alabama. Moore’s loss will cut Senate Majority Leader Mitch McConnell’s (R-Ky.) already narrow two-seat majority down to just one next year. That razor-thin 51-49 margin will leave GOP leadership with no room for error on top GOP agenda items – potentially including another run at repealing ObamaCare – and could put more pressure on them to negotiate with Democrats on run-of-the-mill bills and to break filibusters.
But GOP senators said the slimmer majority is a small trade-off for avoiding long-term damage to the party caused if Moore had won Tuesday night’s special election and brought his sexual misconduct allegations and penchant for controversy to the Senate.
Sen. Richard Shelby (R-Ala.), who didn’t support Moore, said he and other Republicans were “relieved” after the former judge lost.
- President Just Signed Bill That Says Climate Change a National Security Risk, But Does He Know That? (EcoWatch) President Donald Trump signed the National Defense Authorization Act into law Tuesday. The act would require the Pentagon to do a report on how military installations and overseas staff may be vulnerable to climate change over the next 20 years. The following language was included in the act:
Climate change is a direct threat to the national security of the United States and is impacting stability in areas of the world both where the United States Armed Forces are operating today, and where strategic implications for future conflict exist.
- Retailers Still Haven’t Caught Up to Millennials (Bloomberg View) Barry Ritholtz says:
American society has undergone a titanic secular transformation. Retail stores are the first to suffer the effects of this economic disruption. Generational change is affecting how consumers behave; not just how America shops, but for what, and for how much and even why.
Two broad economic trends set the backdrop: too much retail and too little gain in wages. America has built way too many stores and malls. Second, wages adjusted for inflation have been little changed for three decades; this has squeezed the middle class, especially when it comes to discretionary spending.
But the behavioral changes taking place are for all retailers, and not just for those occupying real estate.American society has undergone a titanic secular transformation. Retail stores are the first to suffer the effects of this economic disruption. Generational change is affecting how consumers behave; not just how America shops, but for what, and for how much and even why.
Two broad economic trends set the backdrop: too much retail and too little gain in wages. America has built way too many stores and malls. Second, wages adjusted for inflation have been little changed for three decades; this has squeezed the middle class, especially when it comes to discretionary spending.
But the behavioral changes taking place are for all retailers, and not just for those occupying real estate.
- EPA Allowing Widespread Use of Unapproved Pesticides, Study Finds (EcoWatch) The U.S. Environmental Protection Agency (EPA) has routinely been allowing use of unapproved pesticides under the pretext of an “emergency” when no actual emergency exists, according to an analysis released Monday by the Center for Biological Diversity. The abuse of the emergency provision has created a loophole allowing the widespread use of unapproved pesticides, year after year, across millions of acres in ways that are either known to be harmful to wildlife or haven’t been tested to be safe. In one case the EPA has granted 78 “emergency” exceptions over the past six years for a well-known, bee-killing pesticide called sulfoxaflor, allowing its use on more than 17.5 million acres of U.S. farmland.
- Four Years of Goods Price Deflation (The Daily Shot) Goods prices in the US continue to be a drag on inflation. Efficient global supply chains and online retail are some of the reasons.
Iran
- Trump’s Jerusalem Decision Hands Iran a Powerful Tool (Bloomberg) The Palestinians’ cause has been eclipsed by the broader convulsions in the Middle East. Now, Tehran can use it to increase its influence in the region.
South Korea
- South Korean President Moon Jae-in visits China this week and will meet Chinese counterpart Xi Jinping
- Both sides are looking to their mend rocky relationship
- Top on the agenda is the North Korean nuclear crisis
Japan
- Japan Public Sees ‘No Point’ Fleeing From North Korea Missiles (Bloomberg) Few Japanese followed official warnings to take shelter following the launch of North Korean ballistic missiles in August and September, according to a Japanese government survey. While Japan’s alert system succeeded in informing the public about the launches, just 5.6 percent of respondents said they took shelter after North Korea fired on Sept. 15. The most common reason respondents gave for not evacuating was that there was “no point,” or that they didn’t know where to go.
China
- China intensified its efforts in 2017 to contain financial risks after years of excessive borrowing
- Concerns continued to mount when China’s debt didn’t stop growing, but experts told CNBC that deleveraging is bearing fruit
Europe and Japan join U.S. to target overcapacity and intellectual property transfers
U.S. balances China trade actions with North Korea cooperation
Australia
- Australia’s population growth outpaces world as migrants rush in (Reuters) Australia’s population is expanding at the fastest pace in the developed world as skilled migrants flock to the resource-rich nation, a fillip to economic growth overall but perhaps also a source of puzzling weakness in wages. Government figures released on Thursday showed the number of people resident in Australia increased 388,100 in the year to June, a rise of 1.6% on 2015/16. That was far above the global increase of 1.1%, and well ahead of the United States’ gain of 0.7%and Canada’s 0.9%.
