Written by Econintersect
Early Bird Headlines 01 Oct 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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Special Notice: ​There will be no Early Bird on Tuesday, Wednesday, and Thursday this week due to staff travel.
Global
- Asia markets mixed as US and Canada agree on renewed NAFTA (CNBC) Asia markets were mixed on Monday as the U.S. and Canada announced that they had reached a deal to replace the North American Free Trade Agreement. The U.S. dollar index was litle changed at 95.277 as of 3:11 p.m. HK/SIN. Brent crude futures contract was higher by 0.3% at $82.98 per barrel, while the U.S. crude futures contract was higher by 0.18% at $73.38 percent per barrel. Spot gold was down 0.3% at $1,188.41 at 0407 GMT. On Friday, gold touched its lowest since Aug. 17 at $1,180.34 an ounce.
U.S.
- Midterms put GOP centrists in peril (The Hill) A potential blue wave and string of Republican retirements could wipe out a huge chunk of GOP moderates this fall, leaving an even more conservative House caucus behind them.
Some of the most competitive races this election cycle feature centrist Republicans like Mike Coffman of Colorado, Leonard Lance of New Jersey and Brian Fitzpatrick of Pennsylvania.
- How We Know Kavanaugh is Lying (Current Affairs) No doubt about this Op Ed author’s opinions.
- Trump Administration Will Seek To Limit Green Cards For Immigrants Needing Public Aid (NPR) Immigrants who benefit from various forms of public assistance, including food stamps and housing subsidies, would face sharp new hurdles to obtaining a green card under a proposed rule announced by the Trump administration on Saturday. Federal law has historically sought to exclude immigrants who are likely to become a “public charge,” but the proposed rule would expand the government’s ability to deny immigrants residency or visas if they or family members benefit from aid programs, such as Medicaid Part D, a prescription drug program for the elderly and disabled; the Supplemental Nutrition Assistance Program (SNAP); and Section 8 housing vouchers.
The Department of Homeland Security said in a press release that the proposal was aimed at protecting taxpayers, but advocates for immigrant rights say they would force thousands to choose between staying in the country and receiving public assistance.
- U.S. sues after California governor signs ‘net neutrality’ law (Reuters) The U.S. Justice Department late on Sunday filed suit after California Governor Jerry Brown signed legislation to restore open internet protections known as net neutrality in the state after the Trump administration repealed the rules in December 2017.
- Texas governor says ‘bathroom bill’ no longer on his agenda (Investing.com, Reuters) Texas’ Republican governor said on Friday that legislation limiting transgender people’s access to bathrooms in public schools and government buildings is no longer a priority, signaling a slight change in his stance on a measure seen by critics as discriminatory.
Governor Greg Abbott, who is running for re-election, made a “bathroom bill” one of his priority items in a legislative special session last year. But the measure died in the session after business leaders and civil rights groups fought back, saying it advanced bigotry, would tarnish the state’s image and damage its economy.
EU
- EU Bond Rates Remain Abnormally Low (Twitter)
Indonesia
- The Latest: Toll exceeds 840 in Indonesia disaster (Associated Press) A 7.5 magnitude quake hit at dusk Friday, creating a tsunami that swept waves ashore reaching as high as 6 meters (20 feet) in some places. Many buildings collapsed and rescuers were still working to free desperate survivors. A mass burial was being held.
- Deadly Indonesia Earthquake, Tsunami Deliver Multiple Blows (Bloomberg) In the aftermath of Indonesia’s most destructive earthquake and tsunami since 2009, President Joko Widodo’s government continued to search for survivors in desperate need of medical attention in a disaster with a death toll expected to top the already 800-plus confirmed dead. The second graphic below shows the dense clustering of quakes in Indonesia and vicinity in the last 30 days.
Viet Nam
- The Economic Miracle of Viet Nam (World Economic Forum, Twitter)
Japan
- Nikkei Index at 27-Year High (Twitter)
South Korea
- Removal of mines from Korean Demilitarized Zone (Associated Press) South Korea has begun removing mines at two sites inside its heavily fortified border with North Korea, which is expected to do the same as part of their recent deals to ease decades-long military tensions. They will likely end up pulling out a very small portion of an estimated 2 million mines littered inside and near the 248-kilometer (155-mile) -long, 4-kilometer (2.5-mile) -wide Demilitarized Zone. But it would be the rivals’ first joint demining work in more than a decade and comes amid international diplomacy aimed at ridding North Korea of its nuclear weapons.
China
- China’s total tax cut to exceed 1.3 trillion yuan this year, above target (Investing.com, Reuters) The total value of China’s tax cuts this year was expected to exceed 1.3 trillion yuan ($189.28 billion), higher than the target set earlier this year, the nation’s finance minister said in an interview with state media China Daily. China is studying measures to further cut taxes and reduce fees, as part of its fiscal measures to ease economic headwinds amid the Sino-U.S. trade tensions, Finance Minister Liu Kun told China Daily.
- China September official services PMI rises to 54.9 (Reuters) Growth in China’s services industry picked up for the second month in September, an official survey showed, offering some cushion for the slowing economy as trade tensions with the United States escalate. (See next two articles.) The official non-manufacturing Purchasing Managers’ Index (PMI) released on Sunday rose to 54.9 from 54.2 in August, well above the 50-point mark that separates growth from contraction. The services sector accounts for more than half of China’s economy, with rising wages giving Chinese consumers more spending power.
- China’s Manufacturers Slow in September as Trade War Worsens (Bloomberg) China’s official factory gauge slowed more than expected in September, while the index for services and construction unexpectedly picked up. (See also next article.)
The manufacturing purchasing managers index stood at 50.8 in September versus 51.3 in August, lower than the median estimate of 51.2 in a Bloomberg survey of economists. The non-manufacturing PMI, picked up to 54.9, the statistics bureau said Sunday, gaining from 54.2 in August. Levels above 50 indicate expansion and below 50 mean contraction.
- China September factory growth grinds to a halt as export orders tumble: Caixin PMI (Reuters) Growth in China’s manufacturing sector stalled in September after 15 months of expansion, with export orders falling the fastest in over two years, a private survey showed on Sunday, suggesting U.S. tariffs are starting to take a toll on the economy. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for September fell more than expected to 50.0 from 50.6 in August. Economists polled by Reuters had forecast a reading of 50.5 on average. The survey covers small anf medium size businesses – the official PMI (preceding article) covers large mostly government owned businesses. The neutral 50-mark divides expansion from contraction on a monthly basis. It was the first time China’s factories had not seen business improve since May 2017, when activity contracted.
Canada
- Canada-US reach deal to stay in trade pact with Mexico (Associated Press) See also Joint Statement from United States Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland (Government of Canada Press Release). Canada was back in a revamped North American free trade deal with the United States and Mexico late Sunday after weeks of bitter, high-pressure negotiations that brushed up against a midnight deadline. In a joint statement, U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said the agreement:
“will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”