Written by Econintersect
Early Bird Headlines 29 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
- Japan leads losses in Asia as other markets in the region trade lower (CNBC) Major markets in Asia traded lower on Tuesday, with Italian politics and the slide in oil prices in the spotlight. The dollar index stood at 94.394, up slightly. U.S. crude futures were down 1.61% at $66.79 per barrel and Brent crude futures edged higher by 0.48% to trade at $75.66. Spot gold was 0.2% at $1,300.20 per ounce at 0057 GMT. U.S. gold futures for June delivery fell 0.3% to $1,300 per ounce.
- Global growth is still relying on ‘policy crutches,’ says OECD chief (CNBC) About three-quarters of OECD members are basing their fiscal policy on some kind of stimulus, Secretary-General Jose Gurria told CNBC‘s Joumanna Bercetche on Tuesday during the organization’s yearly forum in Paris. This means that policy is driving “a good part” of the growth, he said.
U.S.
- GOP leaders scramble to contain immigration rebellion (The Hill) Republican leaders are facing long odds as they scramble to thwart an internal rebellion over immigration just months before November’s midterm elections.
The leaders are attempting to broker a deal that satisfies competing factions of their restive conference and defuses a push by mutinous centrists threatening to force action to protect undocumented immigrants in a series of head-to-head floor votes that would highlight deep GOP divisions over an issue that has long been radioactive within the party.
- Once mighty storm Alberto fizzles, but can still soak U.S. (Reuters) Former subtropical storm Alberto, which threatened to clobber the southeastern United States on Memorial Day, fizzled into a subtropical depression, with winds dropping to 35 mph (56 kph) as it rolled into southern Alabama on Tuesday, officials said. For updates on the weather patterns associated with Alberto see May 28, 2018 Weekly Weather and Climate Report – A Rough Summer Ahead?
- Trump quotes constitutional scholar to push claims of campaign surveillance (The Hill) President Trump on Monday tweeted quotes from George Washington University law professor Jonathan Turley’s appearance on “Fox & Friends” to bolster his claims of surveillance on his presidential campaign.
Trump also quoted Turley, a constitutional law professor and contributor to The Hill, to slam former Deputy Attorney General Sally Yates, whom Trump fired last year.
EU
- European Union moves to ban single-use plastics (Reuters) The European Commission on Monday proposed banning single-use plastic products such as cotton buds and plastic straws and putting the burden of cleaning up waste on manufacturers in an effort to reduce marine litter. Under the proposal, single-use plastic products with readily available alternatives will be banned and replaced with more environmentally sustainable materials.
UK
- New poll shows British people have become more positive about immigration (The Conversation) Brits have become more positive in their opinion about immigration – see first graphic below. But the increase is not all for “welcoming” reasons – see second graphic below.
- Manufacturers’ association says max fac customs proposal is a ‘non-starter’ to the UK’s Brexit problems (City A.M.) The government should not waste any more time or money exploring the so-called “maximum facilitation” option for future UK and EU customs, the manufacturers’ association has said.
The max fac proposal – which would use technology to allow so-called “trusted traders” to cross the Northern Ireland and other EU borders freely after Brexit – has been slammed by EEF as “naïve” and “unrealistic”, with “immense” consequences if it fails.
Ireland
- Ireland votes to repeal the 8th amendment in historic abortion referendum – and marks a huge cultural shift (The Conversation) It had looked like the vote would be close but, in the end, the people opted resoundingly for repeal. In a historic referendum, the Irish people have voted by a landslide to repeal the 8th amendment to the country’s constitution, allowing the government to legislate for abortion. The vote illustrates the monumental shift in attitudes towards women’s rights in Ireland.
Italy
- Italian President appoints caretaker technocrat after coalition of populists collapses (City A.M.) Italian President Sergio Mattarella today asked former International Monetary Fund (IMF) official Carlo Cottarelli to form a government, paving the way for a return to technocratic rule and new elections after August.
The Prime Minister designate is unlikely to be able to form a parliamentary majority, given the dominance of the anti-establishment Five Star Movement and the right-wing Northern League, meaning it would have only a caretaker role until new elections are held.
Turkey
- The unorthodox theory behind Erdogan’s monetary policy (Al-Monitor) President Erdogan’s theory that high interest rates increase inflation – rather than reduce it, as economic orthodoxy would have it – could be dismissed as political posturing aimed at a domestic audience of pious Muslims receptive to the notion (even if they do not entirely subscribe to it) that usury is a sin and should be resisted. But it’s beginning to look like he really believes it.
- Turkey’s Lira in Free Fall (Twitter) The lira is now down 29% against the dollar in 8 months and 17% in the last month. See also next article.
- Turkey’s Lira in Free Fall – Erdogan Calls Snap Election (The Real News Network) In the coming economic crisis, combined with political repression under emergency rule, President Erdogan is expected to consolidate power without much opposition. Erdogan invites foreign direct investment and the Turkish diaspora population in Europe to vote for him in the upcoming snap election. This is a two-part interview with the co-editor of Rapture Magazine
- Turkey Has Woefully Low Foreign Reserves (Twitter)
Iraq
- Iraq’s Sadr sends positive sign to both the US and Iran (Al-Monitor) The victory of the Sairoon Alliance, headed by Shiite leader Muqtada al-Sadr, in the recent Iraqi elections raised questions in the United States and Iran about the relations of the next Iraqi government with their respective countries, which both enjoy wide influence in Iraq. So far, statements from the new government indicate it will try to maintain close relations with both countries.
Afghanistan
- The Chabahar port project underway on Iran’s southern coast aims to developa transport corridor to Afghanistan, boosting the war-torn nation’s trade.
- International investors and financiers of the Indian-backed port are now in limbo amid fears of punishment by U.S. secondary sanctions for doing business in Iran.
- Penalties blocking the project’s funding could threaten the longtime U.S. policy objective of stabilizing Afghanistan through economic development.
India
- Voting Machines Fail In Excessive Heat? Shocking, Says Praful Patel (NDTV) Hat tip to Samjeev Kulkarni. A fourth of electronic voting machines, or EVMs, allegedly failed as bypolls took place in the Bhandara-Gondia Lok Sabha seat in Maharashtra on Monday. Temperatures up to 45 degres celsius (113 fahrenheit) have been blamed.
- India poised to join China as global leaders in renewables: Report (The Economic Times) India doubled solar installs to 10 GW in 2017-18 and is rapidly up-scaling capacity to strive towards the ambitious and transformational 100 GW of solar by 2022, according to Director of Energy Finance Studies of the Institute for Energy Economics and Financial Analysis (IEEFA) Tim Buckley. India’s “scheme for development of solar parks” is becoming a successful model to attract foreign capital, says the report “Solar is Driving a Global Shift in Electricity Markets“.
The world’s largest solar project to-date at 2,225 megawatt (MW) is under construction at the Bhadla Industrial Solar Park in Rajasthan.
This is more than double the largest fully operational solar park in India, that being the 1,000 MW Kurnool Ultra Mega Solar Park in Andhra Pradesh.
Experts say major solar energy tenders are occurring every week in India at prices now consistently 10-20 per cent below the cost of existing domestic thermal power generation and 50 per cent below new imported coal-fired power.
- India Follows UN Sanctions, Not US Sanctions On Iran: Sushma Swaraj (NDTV) External Affairs Minister Sushma Swaraj said India doesn’t make its foreign policy under pressure from any other country. Ms Swaraj said on Monday in a press-conference:
“We only recognise UN sanctions. We do not recognise any country-specific sanctions.”
North Korea
- US pauses new North Korea sanctions as officials try to reset summit: report (The Hill) The U.S. will hold off on applying major new sanctions against North Korea while it tries to put back on track a June meeting between President Trump and North Korean leader Kim Jong Un, The Wall Street Journal reported on Monday. A U.S. official told the Journal that the White House had been set to announce the sanctions as soon as Tuesday but will now delay them indefinitely as negotiations with North Korea continue.
Brazil
- Brazil’s Trucker Strike Paralyzes Country, Could Lead to Dangerous Outcome (The Real News Network) Brazil’s trucker strike, which has been going on for a week now, has led to some government concessions, but many truckers say they will continue until the Temer government is replaced – perhaps by a military government. Mike Fox reports from Brazil.
