Written by Econintersect
Early Bird Headlines 03 May 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
- Asia markets mixed as investors focus on US-China trade talks, Fed (CNBC) Asian shares were mixed on Thursday as investors digested an acknowledgment by the Federal Reserve that inflation had moved nearer its target, and U.S.-China trade talks taking place on Thursday and Friday. The dollar index traded up at 92.540 at 12:10 p.m. HK/SIN. U.S. crude futures shed 0.15% to trade at $67.83 per barrel and Brent crude futures for July delivery slipped 0.26% to trade at $73.17. Spot gold rose 0.4% to $1,309.51 per ounce at 0142 GMT.
U.S.
- Trump Repaid Cohen for Stormy Daniels Hush Money, Giuliani Says (Bloomberg) President Donald Trump repaid his lawyer Michael Cohen for a $130,000 hush payment to adult film actress Stormy Daniels during the 2016 campaign, Rudy Giuliani said, contradicting previous statements by the president. Cohen, Trump’s personal attorney, is in the midst of a legal firestorm over the payment to Daniels, which was made during the 2016 presidential campaign in exchange for Daniels’ silence about an alleged affair with Trump. Cohen and Trump have said the payment was made without Trump’s knowledge. Giuliani, who serves on Trump’s legal team, said Wednesday during an interview with Sean Hannity of Fox News:
“Funneled it through the law firm, and then the president repaid it.’’
- Giuliani: Trump fired Comey because he wouldn’t tell Trump he wasn’t target in Russia probe (The Hill) Former New York City Mayor Rudy Giuliani (R) said Wednesday that President Trump fired former FBI Director James Comey because Comey wouldn’t tell Trump that he wasn’t a target of the FBI investigation into Russia’s election interference. Giuliani, who recently joined Trump’s legal team, told Fox News’ Sean Hannity:
“He fired Comey because Comey would not, among other things, say that he wasn’t a target of the investigation. He’s entitled to that. Hillary Clinton got that and he couldn’t get that. So he fired him and he said, ‘I’m free of this guy.’ “
- GOP senator’s defense of Tester counters Trump attacks (The Hill) Sen. Johnny Isakson (R,GA) is breaking with Trump and his scathing criticism of Tester, who the president has blamed for sinking Ronny Jackson’s nomination to be secretary of the Department of Veterans Affairs. Isakson offered his latest defense of Tester – who faces reelection this fall in a state Trump won in 2016 – at an event in Georgia. He noted that reporting this week appeared to verify some of the allegations against Jackson.
- Federal Reserve’s Faster Payments Task Force Releases Final Report (Smaulgld)
Report envisions new highly centralized and regulated (but faster) payment system.
Report also considers “FedCoin”, a digital currency that would be issued by the Federal Reserve.
- Foreign Corporations in US May Face Tax Challenge (The Daily Shot) Will the new tax law curtail foreign investment by raising taxes on foreign-owned US companies? (BEAT = base erosion and anti-abuse tax.)
- Guiliani: Comey Should Be Prosecuted (Fox News, Twitter)
Rudy Giuliani: “@Comey should be prosecuted for leaking confidential FBI information.” #Hannity https://t.co/jUYMIcL2Dl pic.twitter.com/2JZDL21MwS
– Fox News (@FoxNews) May 3, 2018
UK
- Cambridge Analytica shuts down following Facebook data scandal (City A.M.) Cambridge Analytica is shutting down following months of media onslaught over its role in the Facebook-data sharing scandal. The embattled political consultancy said in a press release on Wednesday evening that it was filing for bankruptcy and had appointed Crowe Clark Whitehill LLP as administrators.
Russia
- Russian Oil Turns Its Back On Its Biggest Customer (OilPrice) Since the start of 2018, Russia’s pipeline crude oil exports to China have been growing, while its seaborne shipments to Europe have been falling. At the beginning of this year, Russia doubled the capacity of pipeline exports to China, where it has been the top oil supplier for more than a year after overtaking OPEC’s top exporter and de facto leader Saudi Arabia last year.
While Russia is trying to get a bigger chunk of the fast-growing Chinese oil market, it is doing so at the expense of its number-one oil customer, Europe. Decreased seaborne crude oil shipments to Europe may prompt European refiners to buy more Middle Eastern barrels and crude oil from the U.S., analysts say. In addition, lower Russian seaborne shipments could add to the woes of the tanker freight sector, which is also feeling the decline of OPEC’s exports due to the oil cuts pact and an oversupply of tankers.
South Korea
- Nearly 80% of South Koreans Say They Trust Kim Jong Un (Bloomberg) Friday’s meeting between South Korean President Moon Jae-in and Kim Jong Un prompted 78% of respondents to a Korea Research Center poll published this week to say they trusted the North Korean leader. That’s a far cry from the 10% of South Koreans who said they approved of Kim in a Gallup Korea poll conducted just a month-and-a-half ago.
China
- It appears China has stopped buying soybeans from the US altogether because of trade fight (CNBC) Here comes the counterpunch from China and it will hurt in Trump country.
- “Whatever they’re buying is non-U.S.,” Soren Schroder, CEO of New York-based Bunge, the world’s largest oilseeds processor, told Bloomberg in a phone interview.
- China canceled a net 62,690 metric tons of U.S. soybean purchases in the two weeks ended April 19, the Bloomberg article pointed out, citing USDA data for the current marketing year.
- The country is the second largest market for U.S. agricultural exports, and soybeans have historically have been one of the top products sold to the Asian giant, according to the U.S. Department of Agriculture Foreign Agricultural Service.
- China’s Belt and Road initiative may have risks, but Citi still sees big opportunities (CNBC) Warnings of financial risks may be sounding on China’s Belt and Road Initiative, but global banks are still seeing a promising opportunity. In an interview with CNBC, Marc Merlino, Citi’s global head for its global subsidiaries group, said there are opportunities for not just banks, but institutional and corporate investors.
Argentina
- Argentina’s Extraordinary Rate Hike Could Be Just the Beginning (Bloomberg) Argentina investors say the central bank’s extraordinary effort to bolster the peso Friday may be just the beginning, with more such actions to be expected if the currency doesn’t stabilize soon.
Policy makers’ decision to raise the key interest rate 3 percentage points to 30.25 percent Friday, a surprise move announced just days after they held borrowing costs, led the peso to erase losses for the day. Should the currency resume the sharp selloff it saw in recent days, the central bank is likely to hike again, according to strategists at TCW Group and Barclays Plc.
- Argentina 100-Year Bonds are Tanking (Twitter) Not to worry about the short-term instability (previous article). You can always opt for the 100-year bond. Oops! Will you get your money back in another 99 years? As long as they don’t default you will get 8% interest each year based on today’s market price (up from 6.9% in fourth quarter). So if they remain afloat for 12.5 years you will get your money back then. And double your money in 25 years. But you can do the same with the 30-year U.S. treasury, which seems a lot safer.
Mexico
- Exclusive: Mexico leftist’s wide lead narrows as election nears (Reuters) Mexican leftist presidential front-runner Andres Manuel Lopez Obrador’s lead narrowed for the first time in months as his nearest rival rebounded from corruption allegations ahead of the July 1 election, according to a poll released on Thursday. Less than two months before Mexicans vote, Lopez Obrador’s support grew to 39% from 38% in the previous poll at the end of March, according to polling firm Parametria, but his lead narrowed to 14 points from 18.