Written by Econintersect
Early Bird Headlines 14 March 2019
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
- Asia mixed after weak Chinese data and UK lawmakers reject a no-deal Brexit (CNBC) Asia Pacific markets traded mixed on Thursday after data showed growth in China’s industrial output fell. Overnight, British lawmakers rejected the idea of leaving the European Union without a Brexit deal in place. The dollar index last traded down at 96.649 against a basket of its peers at 2:51 p.m. HK/SIN, declining from levels above 97.000 earlier in the week. Brent crude oil futures hit a 2019-peak of $68.14 per barrel on Thursday before easing modestly to $67.05 by 0840 GMT, up $0.50 (0.74%) from Wednesday’s close. U.S. West Texas Intermediate (WTI) crude futures were at $58.62 per barrel, up $0.36 cents, or 0.62%, from their last settlement. Spot gold was down 0.5% at $1,302.90 per ounce as of 0732 GMT, after touching its highest since March 1 at $1,311.07 on Wednesday.
- US companies have cut back on foreign investment. (The Daily Shot)
U.S.
- Democrats upset over Omar seeking primary challenger (The Hill) Some Minnesota Democrats, aghast at controversial comments made by Rep. Ilhan Omar (D), are taking initial steps to recruit a candidate to run against her in next year’s primary election, seeking to buck history in one of the nation’s most progressive legislative districts. Several party leaders said they have had discussions about finding a candidate to take on Omar, just two months into her first term in Congress.
But even those who were deeply offended by Omar’s comments about Israel concede they have not yet found anyone to challenge her.
- Former White House economic advisor Gary Cohn lashed out in a radio interview against former colleagues Peter Navarro and Commerce Secretary Wilbur Ross.
- The former Goldman Sachs executive said Navarro among economists is the “only one in the world” who thinks tariffs work.
- Cohn also charged that Navarro and Ross set up a secret meeting to inform steel and aluminum industry executives of tariffs that were coming their way.
- Senate to rebuke Trump on wall (The Hill) The GOP-controlled Senate is poised to pass a Democratic resolution Thursday blocking President Trump’s declaration of a national emergency to build a wall on the Mexican border. Talks within the GOP conference to avoid an embarrassing rebuke for Trump collapsed Wednesday, and Sen. Mike Lee (Utah) joined four fellow Republican senators who have already said they will back the measure.
- Trump warns GOPers ahead of vote against his emergency declaration (CNN) Click to watch video.
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- ‘This Is Historic’: US Senate Passes War Powers Resolution to End Complicity in World’s Worst Humanitarian Crisis (Common Dreams) In a major step toward ending U.S. complicity in the world’s worst humanitarian crisis, the Senate on Wednesday passed a War Powers resolution to cut off American military support for the Saudi-led coalition’s assault on Yemen. The final vote count was 54-46. A chief sponsor of the bill was announced presidential candidate Bernie Sanders (I, VT).
In a statement before Wednesday’s vote, the White House said it “strongly opposes” the resolution and suggested Trump will veto the measure if it passes the House. A two-thirds majority vote by both chambers of Congress would be needed to override a possible Trump veto.
- Charity used in fraudulent college donations, feds say (The Assoicated Press) The mastermind of a wide-ranging college admissions scandal set up a charity that wove a deep web of deception and fraud to mask bribes and payoffs, funneling millions of dollars through the tax-exempt organization under the nose of U.S. officials, according to prosecutors and tax documents reviewed by The Associated Press:
William “Rick” Singer registered Key Worldwide Foundation as a charity in 2013, gaining accredited 501(c)3 status with the federal government. Its tax filings reported revenue that doubled each year, from $451,600 in its first year to $3.7 million in 2016.
Singer, painted by prosecutors as the ringleader of the biggest school admissions scandal ever prosecuted by federal authorities, is accused of funneling money from wealthy parents through his foundation, then using it to bribe coaches and others to get their children into elite universities.
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- Here are the oldest US retailers still in business today (Business Insider) With the closings of US legacy stores like Toys ‘R’ Us and Payless, it’s difficult to imagine a retail store lasting more than a few decades. But, there are a handful of stores in the U.S. that are more than 100 years old. Slide show shows the ten oldest retailers in the U.S., starting with the two oldest, below, Brooks Brothers (1818) and Lord &Taylor (1826):
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- ‘Epic’ bomb cyclone hits central US with heavy snow, winds; Colorado trooper killed (USA Today) A powerful “bomb cyclone” unleashed a ferocious mix of snow, rain and wind across the central United States on Wednesday and was blamed for a crash that killed a Colorado State Patrol trooper. More than 1,300 flights had been canceled at Denver International Airport, where a wind gust of 80 mph was reported Wednesday morning. All runways at the airport were closed around early afternoon and remained closed into the evening. For latest severe weather as it happens, see Live: Severe Weather Events 11March Through 17March 2019.
EU
- Tusk foresees an extension in Brexit talks of at least a year: official (Reuters) A long extension of Brexit talks between the EU and London means at least a year and would require Britain to hold elections to the European parliament in May, a senior EU official said on Thursday.
- Long-term Inflation Outlook for the EZ (The Daily Shot) Over the long term, inflation is likely to keep slowing as the population ages. The Japanification of EZ seems to be baked into the cake.
UK
- UK parliament to vote on Brexit delay, PM seeks to revive her deal (Reuters) Britain’s parliament was due to vote on Thursday on seeking a last-minute Brexit delay and Prime Minister Theresa May sought to use the prospect of a long extension to push lawmakers to back her EU divorce deal, which they have twice rejected.
- British pound surges the most in nearly two years after UK lawmakers vote to reject a no-deal Brexit (CNBC)
- Sterling rose 2% after U.K. lawmakers rejected leaving the European Union without a withdrawal agreement.
- The rejection of a no-deal Brexit, passed with 312 votes to 278, set up another vote Thursday on whether its official departure date should be extended.
- Sterling extended its rally this year, posting its biggest gain since April 18, 2017 when the sterling gained 2.19% against the dollar.
Syria
- U.S.-backed Syria forces advancing into Islamic State enclave (Reuters) U.S.-backed fighters besieging Islamic State’s final shred of territory in eastern Syria said they had pushed further into the enclave following clashes and air strikes by the U.S.-led coalition on Thursday.
- Syria’s Assad struggles to reap spoils after military gains (Reuters) Eight years since Syria began its descent into war, many of President Bashar al-Assad’s enemies have been defeated and the bulk of the country is back under his control. But he isn’t celebrating.
India
- Indian groups urge boycott of Chinese goods to ‘teach a lesson’ after U.N. setback (Reuters) See also next article. An Indian traders’ body and the economic wing of an influential Hindu nationalist group called for a boycott of Chinese products on Thursday, after China foiled a bid to blacklist the head of a Pakistan-based militant group that claimed a suicide attack in Indian-controlled Kashmir.
India and the United States said they would continue to push for U.N. Security Council sanctions against Masood Azhar, the founder of militant group Jaish-e-Mohammed (JeM), and many Indians said their patience was running out with China.
- China foils bid to blacklist Kashmir attacker; U.S., India vow to keep pushing (Reuters) China prevented a U.N. Security Council committee on Wednesday from blacklisting the head of Pakistan-based militant group Jaish-e-Mohammed (JeM), which said it attacked an Indian paramilitary convoy in disputed Kashmir.
China
- China hits back at ‘prejudiced’ U.S. with own rights criticism (Reuters) Citing poor media freedoms, racism and “ideological prejudice”, China hit back on Thursday in unusually strong terms after the U.S. State Department slammed China’s rights record, including equating abuses on its Muslim minorities with the 1930s.
China economy slows further as industrial output growth slumps to lowest in a decade (South China Morning Post) China’s economy slowed further in the first two months of 2019 as the growth of industrial production fell to its lowest rate in a decade. Industrial production growth slowed to 5.3% in January and February compared to the same period last year, down from 5.7% growth in December. The rate was the lowest since 5.1% in March 2009.
Of particular concern to the government will be the sharp rise in the surveyed unemployment rate to 5.3 per cent in January and February from 4.9 per cent in December
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