Written by Econintersect
Early Bird Headlines 18 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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​Global
- Asian stocks slip; China leads losses (CNBC) Stocks in Asia were broadly lower on Thursday, as a Fed report hinted at more rate hikes ahead. The Greater China markets were largely lower, as Hong Kong’s Hang Seng index slipped by 0.47% in the afternoon. Over on the mainland, the Shanghai composite dropped by 2.94% to close at around 2,486.42 while the Shenzhen composite fell by 2.74% to end the trading day at about 1,232.01, with shares of Chinese oil giant PetroChina plunged almost 8%. The U.S. dollar index was higher at 95.703 in the afternoon, following a rally from levels around the 95.2 mark yesterday. U.S. West Texas Intermediate crude for October delivery was up $0.12 (0.2%) at $69.87 a barrel by 0413 GMT, after falling 3% in the previous session to settle below $70 for the first time in a month. Front-month London Brent crude for December delivery was up $0.13, or 0.2%, at $80.18, having ended down 1.7% previously. Spot gold was up 0.1% at $1,223.78 an ounce at 0403 GMT.
- Debt and GDP Growth (The Daily Shot) Debt doesn’t buy you as much GDP growth as it once did.
U.S.
- Trump submits 2017 federal income tax returns (The Hill) President Trump and first lady Melania Trump submitted their 2017 federal income tax returns months after the president asked the Internal Revenue Service for an extension, CBS News reported Wednesday. White House press secretary Sarah Huckabee Sanders confirmed in a statement to the outlet that “the President and First Lady filed their taxes on time and as always they are automatically under audit, which the President thinks is extremely unfair.”
CBS noted that the IRS automatically audits tax returns filed by each president, though an audit does not prevent the president from voluntarily releasing his or her tax returns. Every president has released his returns in some form since Richard Nixon.
Trump has drawn immense criticism since the campaign trail for his refusal to release his tax returns publicly.
- Trump Is Giving Saudi Arabia The Benefit Of The Doubt In The Khashoggi Case, But Other Republicans Aren’t (Buzzfeed) Trump tweeted that Mohammed bin Salman had assured him he had nothing to do with the likely murder of Khashoggi. But Republican senators showed little interest in granting Mohammed the benefit of the doubt. See also GOP leaders hesitant to challenge Trump on Saudi Arabia (The Hill).
- McGahn, a Soldier for Trump and a Witness Against Him, Departs White House (The New York Times) Donald F. McGahn II departed as White House counsel on Wednesday, ending a tumultuous 21-month tenure during which he spearheaded some of President Trump’s most significant political accomplishments, including two appointments to the Supreme Court, but also became a chief witness against him in the special counsel investigation. Mr. McGahn’s departure was confirmed by two people close to him. Mr. McGahn and the president sat for a farewell chat on Wednesday, one said. Mr. Trump said this week that he would install as Mr. McGahn’s replacement the longtime Washington lawyer Pat Cipollone, calling him “a very fine man, highly respected by a lot of people.”
- Corker: Trump administration ‘clamped down’ on Saudi intel, canceled briefing (The Hill) Sen. Bob Corker (R, TN) said Wednesday that the Trump administration is restricting access to information about a missing Saudi journalist, a move that comes as President Trump has publicly echoed denials of wrongdoing from top Saudi officials.
- Trump’s Beloved Rust Belt States Look Grim For Republican Governors (Buzzfeed) Iowa, Ohio, Michigan, Wisconsin, Minnesota, and Pennsylvania are nowhere near as promising for Republicans as they seemed in 2016.
- Pump and Trump (ProPublica) Donald Trump claims he only licensed his name for real estate projects developed by others. But an investigation of a dozen Trump deals shows deep family involvement in projects that often involved deceptive practices.
- Changing Distribution of Mortgage Originations (The Daily Shot) This chart shows mortgage originations by loan type for most of this century.
- A white woman people have dubbed ‘Golfcart Gail’ called the police on a black man for cheering on his son during a soccer game (Insider) A white woman in Florida called the police on a black man who was cheering on his son during a soccer game, according to a viral Facebook post. A woman, who was referred to in the post as “Golfcart Gail,” felt that he was exhibiting “threatening behavior” and decided to call 911, even though the man offered to leave. Two St. Johns County sheriff’s deputies arrived on the scene. They ultimately let the man, who was not identified, go. Ginger Galore Williams wrote in her Facebook post:
“This man was simply trying to watch his son’s soccer game and cheer for him from the sides. He yelled ‘The ref is right!‘ when he saw his kid out there getting frustrated after a call.”
EU
UK
- Theresa May signals willingness to extend transition period (The Guardian) Theresa May has hinted that the UK could extend the Brexit transition period to allow more time for trade talks, but she dismayed leaders at a crunch Brussels summit by failing to offer any new ideas to break the impasse over the Irish border. In a development that immediately drew the wrath of Brexit supporters, EU officials said that the prime minister had suggested she was “ready to consider” a longer transition period in the hope of breaking open the deadlocked talks. Downing Street sources later said that such a move – during which the UK would abide by EU rules but have no say in them – had not been ruled out.
May’s concession on Wednesday came as she pleaded for “courage, trust and friendship” from both sides in her speech to EU leaders. But despite EU council president Donald Tusk’s earlier demand for “new facts” to unlock the negotiations, the prime minister did not offer fresh proposals, instead highlighting the progress already made and the hurdles that remained.
Saudi Arabia
- Trump reluctant to abandon Riyadh over missing journalist, wants evidence (Reuters) U.S. President Donald Trump said on Wednesday he did not want to abandon ally Saudi Arabia over the disappearance of a Saudi journalist and has asked for audio recordings Turkish sources say indicate he was killed by Saudi agents.
Iran
- As Washington prepares to impose new sanctions on Iranian oil next month, it’s relying on Riyadh to increase crude production and stabilize prices.
- But calls for U.S. punishment against Saudi Arabia are building following Riyadh’s alleged killing of journalist Jamal Khashoggi.
- If President Donald Trump penalizes the kingdom, that could sour bilateral relations and increase oil prices – two major advantages for Iran.
Russia
- US treasury official charged with leaking Trump-Russia information to reporter (The Guardian) A US treasury department official has been arrested and charged with leaking information relating to the Trump-Russia investigation to a journalist. Natalie Mayflower Sours Edwards is accused of disclosing reports over the past year on suspicious financial activity by figures including Paul Manafort, Donald Trump’s former campaign chairman. Federal prosecutors alleged that the leaks were used for a series of reports published by BuzzFeed News which has revealed details of numerous money transfers flagged as suspicious to treasury investigators. Se next article.
- Here’s How A Major Western Bank Enabled A Suspected Russian Money Launderer (Buzzfeed) Documents show TD Bank loaned $3 million to a company connected to Russian tax fraud and later linked to the special counsel’s investigation. Related articles here.
Jaapan
- Andrew Jackson, head of Japanese equities at SooChow CSSD Capital Markets, warned investors about four stocks: Japanese beauty brands Pola Orbis, Kose, Fancl and Shiseido.
- There have been multiple reports since the beginning of October about Chinese customs stepping up checks on travelers bringing in beauty goods purchased overseas to be resold back home.
- Chinese visitors accounted for the largest group of tourists to Japan in 2017, and have been “big spenders,” driven by the culture of re-selling.
Korea
- U.S. opposed to Koreas’ plan for no-fly zone over border: sources (Reuters) The United States opposes a plan by South and North Korea to set up a no-fly zone over their heavily fortified border, the latest sign of a rift between Seoul and its top ally, two sources familiar with the matter told Reuters.
China
- Exxon bets big on China gas, sidesteps trade war (Reuters) In the middle of a Sino-U.S. trade war, the world’s largest publicly traded oil and gas company is turning toward Beijing for business at a time when most of Corporate America is looking elsewhere to avoid the threat of tariffs.
- Business Confidence is Softening (The Daily Shot)
Canada
- US says it will stop Canadian pot businessmen at border (AFP) Canada may have legalized recreational marijuana Wednesday, but executives of the country’s booming pot industry need to be aware that they are not exactly welcome south of the border in the United States. As the world’s first major economy fully legalized cannabis, officials of US Customs and Border Protection warned they won’t admit anyone arriving with the intent “to aid in the proliferation of the marijuana business.” Even if some US states and localities, including the capital Washington, permit medical or recreational pot use, the CBP warned that the drug remains illegal under US federal law, giving them the responsibility to fight its use and promotion.
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