Written by Econintersect
Early Bird Headlines 23 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.
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​Global
- Asian shares decline after Trump’s trade comments, with China and Japan leading losses (CNBC) Asian stocks closed lower on Wednesday after U.S. President Donald Trump said he was “not satisfied” with the latest round of trade talks with China. The dollar index was firmer at 93.788, but still below a five-month high reached earlier in the week. Brent futures dipped $0.04 to $79.53 a barrel by 0006 GMT. U.S. West Texas Intermediate (WTI) crude futures eased $0.02 to $72.18 a barrel. Spot gold was up 0.2% at $1,293.53 per ounce, as of 0112 GMT. U.S. gold futures for June delivery were little changed at $1,292.50 per ounce.
- The Largest Stashes of Foreign Currency in the World (How Much) Foreign exchange (or forex) reserves are a key indicator of economic health. They provide policymakers with a tool to control inflation, ensure the continual flow of imported goods into the country, and generally provide a sense of security in uncertain economic climates. With the U.S. national debt recently topping an eye-popping $21T, how does the U.S. stacks up against the rest of the world in forex reserves?
U.S.
- Trump flirts with constitutional crisis (The Hill) The Trump administration flirted with a constitutional crisis Monday before stepping back from the brink. President Trump summoned three top law enforcement officials, including Deputy Attorney General Rod Rosenstein, to the White House the day after tweeting that he would “demand” the Department of Justice (DOJ) investigate whether the FBI improperly targeted his 2016 presidential campaign for political reasons. A president instructing the DOJ to open a criminal probe at his behest would be a startling break with precedent, calling into question the independence of law enforcement from partisan politics. (See also Trump’s Assault on American Governance Just Crossed a Threshold – The Atlantic) Harry Litman, who served as a deputy assistant attorney general during the Clinton administration, said:
“It is, in fact, one of his moves that are kind of characteristic of banana republic regimes, where he just sees the apparatus of the DOJ as something to use in a tit-for-tat way to get back at enemies.”
- Stacey Abrams wins Democratic primary in Georgia. She could become the nation’s first black woman governor. (CNN) Bernie Sanders backed Stacey Abrams won the Democratic primary in Georgia’s gubernatorial race Tuesday, CNN projects, becoming the first black woman in the nation to hold a major party’s nomination for governor. If she wins in November, she will become the country’s first black female governor. The former state House minority leader defeated former state Rep. Stacey Evans, who ran a campaign that tried to appeal to moderates and independent voters.
- No Dems invited to attend meeting on Russia docs (The Hill) The White House announced top U.S. officials will brief lawmakers on Thursday about a confidential FBI source who has been a lightning rod for controversy in the Russia probe – but no Democrats are invited. House Intelligence Committee Chairman Devin Nunes (R-Calif.) and House Oversight and Government Reform Committee Chairman Trey Gowdy (R-S.C.) will meet with FBI Director Christopher Wray, Director of National Intelligence Daniel Coats and top Justice Department official Ed O’Callaghan, White House press secretary Sarah Huckabee Sanders told reporters.
- Kirstjen Nielsen: I Haven’t ‘Seen’ Intel Reports Claiming Putin Preferred Trump (The Daily Beast) Department of Homeland Security Secretary Kirstjen Nielsen said Tuesday that she has not seen the U.S. intelligence community’s report claiming that Russian President Vladimir Putin preferred President Donald Trump to win the 2016 election – and that Russian interference worked toward that goal. She told reporters after a closed-door briefing on Capitol Hill, according to Politico:
“I do not believe that I’ve seen that conclusion that the specific intent was to help President Trump win. I’m not aware of that.” [She added that she has] “generally… no reason to doubt any intelligence assessment,” [and believes] “that Russia did and will continue to try to manipulate Americans perspective on a whole variety of issues.”
- Cohen’s business partner strikes plea deal: report (The Hill) A longtime business associate of President Trump’s personal attorney Michael Cohen has reportedly agreed to cooperate with government prosecutors as part of a plea deal. The New York Times reported on Tuesday that Evgeny Freidman agreed to cooperate with state and federal prosecutors, potentially raising pressure on Cohen to assist in the special counsel investigation into Russia’s 2016 election meddling.
In return, Freidman got five years of probation for pleading guilty Tuesday to a single count of evading $50,000 worth of taxes. Freidman, who was reportedly disbarred earlier this month, had faced four counts of criminal tax fraud and one of grand larceny, each carrying a possible sentence of up to 25 years.
- Trump admin moves to ban federally funded clinics from giving abortion referrals (The Hill) The Trump administration on Tuesday announced new restrictions that would bar health clinics that refer patients for abortions or share space with abortion providers from receiving federal funds under a decades-old family planning program. The Department of Health and Human Services (HHS) said in a statement on the proposed changes:
“The proposal would not bar non-directive counseling on abortion, but would prohibit referral for abortion as a method of family planning.”
- Police in Kansas handcuff black motorist over ‘vegetation’ in his car window (CNN) When police in Winfield, Kansas, pulled Rudy Samuel over, the 31-year-old felt he had done nothing wrong. So he started recording the encounter on Facebook Live:
- Sinkhole develops on White House lawn (The Hill) A sinkhole has developed on the White House’s North Lawn, reporters observed Tuesday. Voice of America’s Steve Herman and Breitbart’s Charlie Spiering shared photos on Twitter of the sinkhole, which is located just outside the entrance to the briefing room. Herman noted that the hole has grown larger by the day.
UK
- Trump to try and fit in round of golf on UK visit (Financial Times) Donald Trump is expected to extend his official visit to Britain in July to play golf at one of his two Scottish resorts, adding to an itinerary that is also likely to include dinner with Theresa May and tea with the Queen.
Iran
- The Trump Administration Calls on Iranians to “Make a Choice About Their Leadership” (The Atlantic) In a speech on Monday, Secretary of State Mike Pompeo declared that the United States will “crush” Iran with a new package of economic, diplomatic, military, and cyber pressures if it does not accept sweeping changes to its policies at home and abroad. The new U.S. policy laid out a dozen new demands that put the Trump Administration on a collision course with the Iranian government – and falls rhetorically short only of supporting an uprising by the Iranian people.
The Trump Administration will more aggressively confront Iranian operatives and their allies in Lebanon’s Hezbollah operating around the world, Pompeo vowed. The Islamic Republic “will never again have carte blanche to dominate the Middle East.” A new package of sanctions, still to be unveilled, will impose “unprecedented financial pressures” – the strongest in history – on Tehran, Pompeo said, at the Heritage Foundation, a conservative think tank in Washington. Iran “should know that this is just the beginning.”
Japan
- Lower bond yields do not save the Japanese Government money (billyblog) Prof. Bill Mitchell explains why there is no sense to the idea that the government ‘saves’ its own currency and it is nonsense to suggest that “low rates hurt savers, pensioners and even the BOJ itself“. Savers and pensioners may well be hurt but the Bank of Japan does not have a “household budget”. Mitchell was responding to Kuroda’s Stimulus Saves Japan $45 Billion, Easing Debt Pressures (Bloomberg).
North Korea
- Doubts grow over Trump-Kim summit (The Hill) Preident Trump’s plans for a historic nuclear summit with North Korea were thrown into further doubt on Tuesday after a meeting with South Korean President Moon Jae-in. During the huddle, Trump expressed confidence that North Korean leader Kim Jong Un is “serious” about denuclearization but also acknowledged the likelihood that the June 12 summit in Singapore falls through.
- Trump keeps giving Kim the upper hand (CNN) This OpEd criticizes the president’s negotiating skills. North Korean leader Kim Jong Un’s recent threat to pull out of the upcoming summit with President Donald Trump appears to be a ploy to take advantage of Trump’s main weakness as a negotiator: He often makes major concessions without securing anything of significance in exchange.
Trump has already conceded more than he should. North Korean leaders have tried for two decades to get a meeting with an America president because they believed it would give them prestige and legitimacy. Trump agreed without securing a single commitment first — a missed opportunity.
China
- Republicans think Trump is losing trade war (The Hill) President Trump is facing a significant backlash from Senate Republicans over his trade talks with China, which they see as delivering far less than he promised. Several GOP senators say Trump has wound up on the losing side of the discussions, and his talk of lifting rules barring U.S. companies from selling to the Chinese telecommunications firm ZTE has prompted a revolt. See Senate panel overwhelmingly approves amendment blocking Trump on ZTE.
- U.S. Trade deficit with China to Keep Growing (The Daily Shot) Analysts are not convinced that the US-China trade war has been averted. Most believe that “the can has been kicked down the road,” and the trade deficit with China will only continue to worsen over the next few years. Here is the forecast from Capital Economics.