Written by Econintersect
Early Bird Headlines 05 April 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.
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​Global
- Asian markets gain after Wall Street rebounds amid trade talk hopes (CNBC) Asia Pacific markets gained on Thursday, as recent investor worries over an elevation in U.S.-China trade tensions abated. The dollar index was steady at 90.142. U.S. West Texas Intermediate crude for May delivery was up $0.27 (0.4%) at $63.64 a barrel by 0445 GMT. Front-month London Brent crude for June delivery was up $0.30 cents, or 0.4%, at $68.32. Spot gold was last down 0.33% at $1,328.21 per ounce.
U.S.
- China Tariffs Could Wreck Republicans in November (Bloomberg) China on Wednesday said it would issue 25% retaliatory levies on roughly $50 billion of U.S. imports, including soybeans, cars, chemicals and aircraft. These levies appear to be targeted at states, particularly in the Midwest, where Trump’s support is strongest. But, crucially, many of these states also have pivotal Senate and gubernatorial races in November. The economic blow from new tariffs could upend many of these races, potentially shifting control of statehouses and the U.S. Senate to Democrats. See also Fear of ‘disastrous situation’ in farm economy as China targets huge US soybean business (CNBC).
- Sanders won’t say if Trump has confidence in Pruitt (The Hill) White House press secretary Sarah Huckabee Sanders on Wednesday declined to answer directly when asked if President Trump has confidence in embattled Environmental Protection Agency (EPA) chief Scott Pruitt.
Sanders confirmed that the White House is investigating whether Pruitt’s now-famous $50-a-night lease arrangement in a Capitol Hill condo last year was proper.
- Trump claimed the tax bill would lead to a huge boost in business spending – but there’s no sign of it yet (Business Insider)
- New tax cuts are unlikely to spur business investment to any large extent, according to a new survey conducted by the Atlanta Fed in conjuction with academics.
- The survey shows some three-quarters of executives had made no spending plans at all in response to the passage of the tax cuts.
- “We’re sticking with our initial assessment that the potential for a sharp acceleration in near-term output growth is limited,” Atlanta Fed economists write.
- Urban Bungle: Atlanta Cyber Attack Puts Other Cities on Notice (Scientific American) The city has spent the past two weeks restoring online services disrupted by ransomware that held encrypted data hostage. The cyber criminals initially gave the city seven days to pay about $51,000 in the cryptocurrency bitcoin to get the decryption key for their data. That deadline came and went last week, yet several services remain offline, suggesting the city likely did not pay the ransom. City officials would not comment on the matter when contacted by Scientific American..
- Opioid prescription rates dropping across the country (Axios) Opioid prescription rates across the country have been declining since their peak in 2012, according to data collected by the Centers for Disease Control and Prevention. The 2016 national prescription rate was the lowest in a decade at 66.5 per 100 people.
- An Update on Our Plans to Restrict Data Access on Facebook (Facebook) In total, we (Facebook) believe the Facebook information of up to 87 million people – mostly in the US – may have been improperly shared with Cambridge Analytica.
Two weeks ago we promised to take a hard look at the information apps can use when you connect them to Facebook as well as other data practices. Today, we want to update you on the changes we’re making to better protect your Facebook information. We expect to make more changes over the coming months – and will keep you updated on our progress. Here are the details of the nine most important changes we are making.
Italy
- Italy Bond Rally (Twitter)
Portugal
- Portugal Bond Rally (The Daily Shot, Twitter) Could you say this is the result of an ECB put?
Japan
- Japanese Prime Minister Shinzo Abe, weighed down by allegations of cronyism, is now facing backlash over a deployment of Japanese soldiers to Iraq from 2004 to 2006.
- Last year, a similiar case involving Japanese troops in South Sudan resulted in the resignation of former defense minister Tomomi Inada.
China
- U.S. Leaves Door Open to China Talks Amid Trade-War Fears (Bloomberg) The Trump administration indicated it’s willing to negotiate with China on escalating frictions between the world’s two biggest economies, helping to ease fears among investors of a tit-for-tat trade conflict. U.S. Commerce Secretary Wilbur Ross said China’s response isn’t expected to disrupt the U.S. economy. In an interview on CNBC on Wednesday, he said China’s reaction “shouldn’t surprise anyone.” He said the U.S. isn’t entering “World War III” and left the door open for a negotiated solution.
Mexico
- Trump Sending National Guard to Mexican Border (Bloomberg) President Donald Trump is sending National Guard forces to assist border authorities along the U.S.-Mexico boundary, according to a presidential memorandum that the White House released Wednesday night. Trump said in the memorandum:
“The situation at the border has now reached a point of crisis. The lawlessness that continues at our southern border is fundamentally incompatible with the safety, security, and sovereignty of the American people. My administration has no choice but to act.”
