Written by Econintersect
Early Bird Headlines 24 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
- Asia markets trade mixed following Wall Street’s tepid session (CNBC) Asia markets traded mixed on Tuesday. The dollar index traded up at 90.859 at 2:32 p.m. HK/SIN, retreating from an earlier high of 91.076. U.S. crude climbed 0.87% to $69.27 a barrel. Global benchmark Brent was up 0.74% at $75.26. Spot gold edged up 0.1% to $1,325.16 per ounce at 0041 GMT, not far from a low of $1,321.81 an ounce touched on Monday, its weakest level since April 6.
U.S.
- Flight Records Illuminate Mystery of Trump’s Moscow Nights (Bloomberg) President Donald Trump twice gave James Comey an alibi for why a salacious report about the 2013 Miss Universe pageant in Moscow couldn’t be true: He never even spent the night in Russia during that trip, Trump told the former FBI director, according to Comey’s memos about the conversations. Yet the broad timeline of Trump’s stay, stretching from Friday, Nov. 8, 2013, through the following Sunday morning, has been widely reported. And it’s substantiated by social media posts that show he slept in Moscow the night before the Miss Universe contest.
Now, flight records obtained by Bloomberg provide fresh details. Combined with existing accounts and Trump’s own social-media posts, they capture two days that, nearly five years later, loom large in the controversy engulfing the White House and at the heart of the Comey memos, which the Justice Department turned over last week to Congress.
Neither the White House nor Trump Organization immediately responded to requests for comment.
- The White House can’t hide Trump’s worry about Michael Cohen (The Washington Post) President Trump has not been tweeting like a man with nothing to fear. Over the weekend, he tried to project confidence that his longtime personal lawyer, Michael Cohen – under federal investigation for possible bank fraud, wire fraud and campaign finance violations – will not flip to avoid legal trouble. But in doing so, and skipping a denial of wrongdoing, the president implied two things.
One is that Cohen would need to strike a deal with prosecutors to avoid charges or prison time. Trump’s tweet did not even entertain the idea that the investigation will turn up nothing because Cohen committed no crimes.
The second is that Cohen possesses damaging information about the president. Trump said he believes Cohen will keep his mouth shut, not that Cohen can talk all he wants because there is no dirt to dish.
- Ronny Jackson allegations threaten to upend nomination (CNN) Republicans and Democrats on the Senate Veterans Affairs Committee are raising concerns about allegations involving Rear Adm. Ronny Jackson, President Donald Trump’s nominee to lead the department of Veterans Affairs and are reviewing them to determine if they are substantial enough to upend his nomination. Committee members have been told about allegations related to improper conduct in various stages of his career, two sources said.
- Bad news for the GOP: ‘Comey memos’ leak is ‘Nunes memo’ redux (The Hill) Repubican Kris Kolesnik writes:
House Republicans leaked the Comey memos, apparently before analyzing them and adjusting their strategy. As a result, House Republicans and President Trump, yet again, have readied, fired and aimed in their assault on phantom political corruption in the FBI. They harmed themselves and no one else. This was Nunes Memo redux.
- The 50 Cities with the Worst Commutes in America (Best Life) Two of the worst three commutation cities may be a surprise to many. New York is number 2, but two small California cities are also at the top: Palmdale is #1 and Corona #3. Slide show.
- Bond Traders’ Respite From Flattening Curve May Prove Fleeting (Bloomberg) Bond traders agonizing over the flattening U.S. yield curve got a bit of a break last week. But with a flood of Treasury supply about to hit the market, they’ll have little time to catch their breath. The U.S. will issue a combined $96 billion of two-, five- and seven-year notes this week, the largest slate of fixed-rate coupon sales since 2014. After a stretch dominated by Federal Reserve speakers, the offerings are likely to refocus traders on the prospect of ever-larger auctions to cover swelling budget gaps.
France
- France’s Gifted Youth Are Set Up to Fail (Bloomberg) An inflexible, egalitarian education system works against its most talented pupils.
Greece
- Greece is rushing to sell some of its state assets before a crucial bailout deadline (CNBC) Greece is in a hurry to sell some of its state assets, in what is one of the most critical issues for the country as it races to end a bailout program in August. Greece is set to hit lower-than-expected proceeds under a privatization program this year, after it failed to reach its 2017 target. The country’s massive privatization program is a condition of its third bailout.
Iran
- Iran warns Trump to remain in the nuclear deal or ‘face severe consequences’: state TV (Reuters) Iranian President Hassan Rouhani warned U.S. President Donald Trump on Tuesday to remain in the nuclear deal Tehran signed with world powers in 2015, or face “severe consequences“.
Russia
- Russian oligarchs buying up the world (MSN Money) Famed for splashing their cash around, Russia’s conspicuously wealthy have a habit of pumping their rubles into everything from foreign real estate and overseas oil fields to iconic Western sports teams. The country’s oligarchs have been only too eager to move their assets abroad, especially since the collapse of the ruble in 2014 and the ensuing financial crisis. Slide show.
- U.S. Softens Stance on Rusal Sanctions; Aluminum Plunges (Bloomberg) The U.S. softened its position on sanctions against Russian metals giant United Co. Rusal, sparking a record plunge in aluminum prices. For the first time, the U.S. Treasury discussed a path for lifting the sanctions on Rusal, saying it would provide relief if Oleg Deripaska relinquished control. It also extended the deadline for companies to wind down dealings with the Russian aluminum producer by almost five months. Rusal petitioned to be removed from the sanctions list and Treasury granted the extension while it considers the appeal.
China
- The Chinese Car Invasion Is Coming (Bloomberg) For the first time, a Chinese-branded car will be made in Western Europe for sale there, with the ultimate goal of landing in U.S. showrooms. But that’s not all:
At least four Chinese carmakers and three Chinese-owned startups – SF Motors Inc., NIO and Byton – plan to sell cars in the U.S. starting next year. At the same time, Warren Buffett-backed BYD Co. is building electric buses in California; Baidu Inc.is partnering with Microsoft Corp., TomTom NV and Nvidia Corp. on a self-driving platform; and Beijing-based TuSimple Inc. is testing autonomous-driving big rigs in Arizona.
Australia
- RBA crashes off interest-only mortgage cliff (MacroBusiness) What is the cliff? The author writes:
Mortgages on interest-only terms have become an increasingly prominent part of Australian housing finance over the past decade. At their recent peak, they accounted for almost 40 per cent of all mortgages. While interest-only loans have a role to play in Australian mortgage finance, their value has limits.
In 2014, the Australian Prudential Regulation Authority (APRA) acted to tighten standards for interest-only loans, and mortgages more generally.
Around two-thirds of interest-only loans in the Reserve Bank’s Securitisation Dataset are due to have their interest-only periods expire by 2020
Canada
- Motive elusive after van driver kills 10 on Toronto sidewalk (Associated Press) Police in Canada’s biggest city are piecing together witness accounts and surveillance video trying to determine why a driver plowed a rented van along a crowded sidewalk, killing 10 people and injuring 15 in what many said seemed a deliberate attack.
A 25-year-old suspect was quickly captured in a tense but brief confrontation with officers a few blocks away from where his van jumped the sidewalk Monday and continued for a mile, leaving people bloodied and dead in his wake. But authorities so far had not disclosed a possible motive or cause even as the police chief agreed with witnesses that it seemed intentional.
