Written by Econintersect
Early Bird Headlines 20 June 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 attempt recovery from recent declines as trade fears linger (CNBC) Asian stocks attempted to rebound on Wednesday, with several regional markets paring sharp losses made in the previous session that were caused by elevated fears of a trade war between the U.S. and China. The dollar index rose to 95.123. Brent crude futures rose $0.18 cents (0.2%) to $75.26 per barrel at 0351 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $0.20 cents, or 0.3%, to $65.27. Spot gold held steady at $1,273.92 an ounce, as of 0331 GMT. The metal fell to its lowest since Dec. 22 at $1,270 on Tuesday.
- Record 68.5 million people fleeing war or persecution worldwide (The Guardian) As data shows one in every 110 people is displaced, UN special envoy Angelina Jolie warns of ‘terrible human consequences’ of Syria’s aid shortfall. The number of people forced to flee their homes rose to a record high in 2017, with 16.2 million people newly displaced around the world, the largest number ever in a single year.
- Major Turnaround In Crude Oil’s Price (TalkMarkets) At the first sight, yesterday’s move may appear to be bullish as it looks like a bullish reversal. However, looking closely at the low volume levels reveals that it was actually a pause that only looked like a real reversal and thus implications are not bullish. Consequently, the outlook remains bearish.
U.S.
- Cohen tells associates legal fees ‘bankrupting’ him, wants Trump to pay fees: report (The Hill) President Trump’s former longtime attorney Michael Cohen has told friends that the ongoing legal investigation into his financial dealings and possible campaign finance violations is taking a toll on him, and that he wants Trump to take over the tab. The Wall Street Journal reports that Cohen has “frequently” complained that the mounting costs of his legal fees are “bankrupting” him, according to one source, and that he is frustrated that the president, whom he feels owes Cohen for years service, hasn’t offered to cover the fees.
- Trump Administration Withdraws U.S. From U.N. Human Rights Council (The New York Times) The official statement refers to bias against Israel, but the move coincides with severe criticism of the the U.S. for human rights violations involving children at the Mexican border. See also US quits UN human rights council – ‘a cesspool of political bias’ (The Guardian)
- Trump backs plan to end family separations but shirks responsibility (The Guardian) Donald Trump told Republicans he was “1000%” behind their immigration reform effort but did not offer a clear path forward as his administration faces extraordinary, bipartisan condemnation for its practice of separating children from their parents at the border.
At a close-door meeting with House Republicans on Capitol Hill, Trump expressed concern for the families being separated by the “zero-tolerance” policy, members said, but he did not take responsibility for the practice. Instead the president urged the Republicans in the room to pass legislation that keeps families together.
- APNewsBreak: Youngest migrants held in ‘tender age’ shelters (Associated Press) Trump administration officials have been sending babies and other young children forcibly separated from their parents at the U.S.-Mexico border to at least three “tender age” shelters in South Texas, The Associated Press has learned.
Lawyers and medical providers who have visited the Rio Grande Valley shelters described play rooms of crying preschool-age children in crisis. The government also plans to open a fourth shelter to house hundreds of young migrant children in Houston, where city leaders denounced the move Tuesday.
- Republicans tear into IG finding on Clinton probe (The Hill) House Republicans on Tuesday took aim at a finding from the Department of Justice’s (DOJ) inspector general that anti-Trump bias did not influence the outcome of the Hillary Clinton email probe, during a fractious and extended hearing that pitted dozens of lawmakers against the watchdog.
Although GOP members did not directly criticize the inspector general, Michael Horowitz, they repeatedly made the case that his report showed FBI officials had “prejudged” the outcome of the Clinton probe – a long-held Republican grievance – and suggested that his review was incomplete.
- U.S.Debt Issuance on the Rise (The Daily Shot) The market will get a massive injection of additional Treasury securities over the next few years.
EU
- Spanish and Italian bond trading activity spiked in May. (There Daily Shot)
Russia
- Russia all but qualify for knockout stage with win over Mo Salah’s Egypt (The Guardian) Russia completed their second impressive performance, defeating Egypt 3-1 and virtually assuring they would qualify for the group of 16 and the single elimination “knock-out round”. This is the first such success in 32 years.
North Korea
- North Korea’s Kim thanks China for support with Trump summit (Associated Press) North Korean leader Kim Jong Un thanked Chinese President Xi Jinping for his support in last week’s groundbreaking summit with President Donald Trump, the North’s official media reported Wednesday. Kim is in Beijing on his third visit to China this year, underscoring the major improvement in relations between the communist neighbors.
- Pompeo Says U.S. Agreed to ‘Alter’ Korea Armistice at Kim Summit (Bloomberg) President Donald Trump has agreed to “alter” the 1953 armistice halting the Korean War if North Korea gives up its nuclear weapons, Secretary of State Mike Pompeo said, revealing an apparent promise from Trump’s summit with Kim Jong Un that wasn’t announced at the time. Pompeo said of the North Korean leader during a speech at the Detroit Economic Club on Monday:
“He has made very clear his commitment to fully denuclearize his country. In return for that, the president has committed to making sure that we alter the armistice agreement, provide the security assurances that Chairman Kim needs.”
China
- The White House in a new report details its claims of China’s “economic aggression.”
- The report lists practices that “threatens the technologies and intellectual property of the United States and the world.”
Canada
- Canada approves recreational use of marijuana (Reuters) Canada’s upper house of parliament on Tuesday approved a revised bill to legalize recreational marijuana, setting the stage for the country to become the first Group of Seven nation to legalize cannabis. The Senate voted 52-29 in favor of the revised bill from the elected House of Commons, paving the way for a fully legal cannabis market within eight to 12 weeks.
- Canada’s Economy Recorded Very Slow Growth In The First Quarter (TalkMarkets) Although the Canadian economy expanded over 3% in real terms in 2017, nonetheless the economy recently recorded three consecutive quarters of slow economic growth. Canada’s real GDP expanded at an annualized rate of 1.3% in the first quarter of 2018, after posting 1.7% and 1.6% growth rates in the previous two quarters.
Canada’s first quarter economic growth weakness was entirely concentrated in a 0.2% decline in output in January. In contrast, monthly GDP rose 0.4% in February and 0.3% in March. The improved monthly growth pattern in Q1suggests stronger momentum going into the second quarter.