Written by Econintersect
Early Bird Headlines 28 March 2018
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.
Please share this article – Go to very top of page, right hand side for social media buttons.
​Global
- Asian shares slide after tech drags on Wall Street (CNBC) Asian stocks posted declines on Wednesday trade after U.S. stocks fell sharply on the back of declines in technology names. That cut short a rally seen in Europe and Asia’s Tuesday session linked to an apparent easing in trade-related tensions. The dollar index traded flat at 89.252 at 12:10 p.m. HK/SIN. U.S. West Texas Intermediate crude futures slipped 0.77% to trade at $64.75 per barrel and Brent crude futures declined 0.63% to trade at $69.67. Spot gold was down 0.1% at $1,343.98 per ounce at 0419 GMT. U.S. gold futures for April delivery rose 0.1% to $1,343.40 per ounce.
U.S.
- Is The Fed Too Optimistic? (The Daily Shot) Is the FOMC’s projection for the Fed Funds rate at the end of 2020 way too optimistic? Many economists and the market do not expect rate hikes during that year because growth is likely to slow by then. Some economists even expect the Fed to cut rates in 2020.
- The Supreme Court Case That Could Transform Politics (Politico) Today the Supreme Court hears arguments in Benisek v. Lamone, a case about whether Maryland violated the First Amendment rights of Republican voters by redrawing the state’s congressional districts with the goal of making it unwinnable for an incumbent Republican member of Congress. The case may answer not only that question but also a broader one about the courts’ proper role in the political process: Will the late Antonin Scalia’s view that courts should mostly refuse to police incumbency protection and political self-interest prevail?
- Russia, China eclipse US in hypersonic missiles, prompting fears (The Hill) Russia and China are outpacing the United States in the development of super-fast missile technology, Pentagon officials and key lawmakers are warning. Hypersonics are generally defined as missiles that can fly more than five times the speed of sound. Russia says it successfully tested a so-called hypersonic missile this month, while China tested a similar system last year expected to enter service soon. Hypersonics are generally defined as missiles that can fly more than five times the speed of sound. Sen. James Inhofe (R,OK), a senior member of the Senate Armed Services Committee, said in advocating for more investment in hypersonics, along with missile defense:
“Right now, we’re helpless.”
- Wall Street Bankers’ Average Bonus Jumps to Highest Since 2006 (Bloomberg) Wall Street’s average bonus jumped 17 percent in 2017 to $184,220, the highest since 2006, according to estimates by New York State Comptroller Thomas DiNapoli. The bonus pool climbed to $31.4 billion as employment in the industry dipped slightly in New York City, DiNapoli said Monday in a statement. The bonuses increased as profits from broker-dealer operations of New York Stock Exchange member firms increased to $24.5 billion, the most since 2010, according to the statement.
- Retired Supreme Court Justice John Paul Stevens Calls For Second Amendment Repeal (Yahoo! News) Calling it “a relic of the 18th century,” retired Supreme Court Justice John Paul Stevens called Tuesday for the outright repeal of the Second Amendment, saying it would achieve “more effective and more lasting reform” than other efforts to curb the country’s scourge of gun violence. In a New York Times op-ed, Stevens ― who as a high court justice dissented on a key gun rights case in 2008 ― praised the student demonstrators at Saturday’s March for Our Lives protests, saying that the thousands of marchers, led by the students of Marjory Stoneman Douglas High School, “demand our respect.” Beyond pushing for stronger legislative measures, such as banning assault-style weapons and mandating background checks, he advised the movement to “demand a repeal of the Second Amendment:” Frank Li thinks repeal might require a civil war, just as the 14th amendment did. See America: Guns vs. Slavery.
- Decision Making in the White House (The Times)
EU
- Weimar Triangle: Motor For A New Europe? (Social Europe) France, which traditionally represents “the South” of the Eurozone, stands in contrast to the North, dominated by Germany. Poland is a “young” Central and Eastern European member state, whose region is still catching up with the “old” EU. Meanwhile, Germany, defender of EU unity as a whole, is contradicted by France with its plans to speed ahead in integrating the core of Europe and no longer wait for the more reluctant states to come on board.
While the EU was conceived to ensure that all Member States would prosper by pursuing a balanced social development, unequal social development is a key factor differentiating these three key countries and lies behind their disagreements. What’s more, key economic indicators show that discrepancies in living standards between EU countries remain as pronounced as ever.
Germany​
- Deutsche Bank prepares to oust chief executive John Cryan (The Times) Germany’s once great Deutsche Bank has begun a search to oust its British boss amid an escalating boardroom row over the lender’s future and alarm at its performance. The German investment bank has approached one of Goldman Sachs’ most senior executives to replace John Cryan as chief executive less than two years into his tenure.
Richard Gnodde, vice-chairman of Goldman Sachs and the Wall Street bank’s most senior executive outside the United States, was sounded out.
Turkey
- Erdogan keeps finger on trigger as PKK exits Sinjar (Al Monitor) Kurdish militants reportedly have withdrawn from Iraq’s Yazidi region of Sinjar after several years, leading to speculation about the timing and reasons behind the decision. Experts are questioning whether the move will be enough to stop Turkey from intervening in the region militarily, despite a warning from Baghdad.
Iraq said today it had deployed troops over the weekend and now controls the area. Baghdad has warned Turkey that it won’t accept a Turkish military operation within Iraq’s borders.
Russia
- Trump’s Russian Expulsions Leave Moscow Stunned (Bloomberg) The U.S. president often accused of cozying up to the Kremlin suddenly looks closer than ever to the European allies he’s sometimes snubbed.
Donald Trump on Monday expelled 60 Russian diplomats considered spies from the U.S., the most since 1986, demonstrating united resolve with Europe after the U.K. blamed Vladimir Putin’s government for a March 4 nerve-agent attack on a former Russian spy living in England. All told, more than 100 Russian envoys will be sent home from capitals across Europe and North America.
Japan
- Japan PM Abe likely to meet President Trump on April 18: source (Reuters) Japanese Prime Minister Shinzo Abe is finalising details for a summit with U.S. President Donald Trump on April 18 to discuss strategy before a proposed meeting between North Korean and U.S. leaders, a ruling party official told Reuters on Wednesday.
- Abe ‘not involved’ in doctoring documents: key official (Yahoo! News) A Japanese official at the heart of a cronyism and cover-up scandal that has dented Shinzo Abe’s popularity said Tuesday that the prime minister’s office was not involved in falsifying documents. In hotly awaited parliamentary testimony beamed live on national television, Nobuhisa Sagawa said only his office took part in altering key documents relating to a controversial land sale.
North Korea
- Kim Jong Un Is Willing to Hold Summit With U.S., China Says (Bloomberg) China confirmed Wednesday that Kim Jong Un met with President Xi Jinping on a surprise visit to Beijing, and said the North Korean leader would be willing to give up his nuclear weapons and hold a summit with the U.S. Kim said during the four-day visit, according to Xinhua:
“The issue of denuclearization of the Korean Peninsula can be resolved, if South Korea and the United States respond to our efforts with goodwill, create an atmosphere of peace and stability while taking progressive and synchronous measures for the realization of peace.”
South Korea
- Trump Scores His First Revised Trade Deal, With South Korea (Bloomberg) President Donald Trump secured his first revamp of a U.S. trade deal, after reaching an agreement this week with South Korea that would allow American automakers greater access to that country’s markets, senior administration officials said on Tuesday night.
China
- North Korean leader Kim Jong Un visited China from Sunday to Wednesday on an unofficial visit, according to China’s state news agency Xinhua.
- The visit was Kim’s first known journey abroad since he assumed power in 2011.
- Analysts believe the visit was to serve as preparation for upcoming summits with South Korea and the United States.