Written by Econintersect
Early Bird Headlines 29 May 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 markets slip, currencies decline as US adds 9 countries to watch list (CNBC) Stocks in Asia mostly declined in Wednesday afternoon trade. The U.S. dollar index was at 97.968 after bouncing from levels below 97.8 yesterday. Brent crude futures contract fell 1.04% to $69.38 per barrel. U.S. crude futures also declined 1.30% to $58.37 per barrel. The yield on the benchmark 10-year Treasury note also dropped to around 2.26%, its lowest level in 19 months. Spot gold was up 0.2% at $1,281.59 per ounce, as of 0607 GMT.
- Global Value Chain (The Daily Shot) How much do different countries participate in the global value chain?
U.S.
- Amash gets standing ovation at first town hall after calling for Trump’s impeachment (The Hill) Rep. Justin Amash (R, MI) received a standing ovation Tuesday evening at his first public event since becoming the first Republican to call for President Trump’s impeachment. At a town hall in Grand Rapids, Michigan, Amash criticized House Republican leadership, including Minority Leader Kevin McCarthy (R, CA), whom he called the “so-called leader.” Amash said of McCarthy:
“I read the Mueller report. I’m sure he didn’t read it. He resorted to ad hominem attacks; that’s the kind of ‘leadership’ we now have in Congress.”
- Trump Says U.S. Aircraft Carrier Design Is ‘Wrong,’ Plans Overhaul (Bloomberg) President Donald Trump told U.S. troops stationed in Japan he plans to order traditional steam powered catapults aboard American warships instead of newer electromagnetic systems that he said may not work as well during wartime. Trump polled the sailors and Marines on the USS Wasp on steam versus electric catapults Tuesday during a visit to the the Yokosuka naval base south of Tokyo, the biggest overseas U.S. naval installation.
The tour came at the end of the president’s four-day state visit to Japan, a key military ally. The troops’ cheers were audibly larger for steam catapults — used to launch aircraft off navy ships — and Trump took note.
- High court sidesteps major ruling on abortion (The Hill) The Supreme Court avoided making a major ruling on abortion Tuesday, even as conservative Justice Clarence Thomas warned it would not be able to put off the inevitable for much longer. The court handed down a pair of rulings on an Indiana abortion law – letting stand one part of the statute that requires remains from an abortion or miscarriage be buried, but keeping in place a lower court ruling that struck down the ban on abortions based on the fetus’s gender, race or disabilities.
- This $72 Billion Fund is Shorting the Dollar in a Contrarian Bet (Bloomberg) The dollar’s rally may be approaching an end as pressure mounts on U.S. President Donald Trump to strike a trade deal with China, according to Brandywine Global Investment Management LLC.
The money manager, which oversees $72 billion, is banking on this view to short the greenback and buy some of the biggest casualties of the trade war, including the Australian dollar. The rationale? Trump will be compelled to make peace with Beijing to protect the interests of American consumers.
- Negative Yield Curve Breaks Record (Twitter) Well, inspite of statement “lowest level in a century” it is actually a record low for the last decade.
EU
- EU Inflation is Sinking (The Daily Shot) Are the Eurozone’s inflation expectations sufficiently low for the ECB to consider additional easing actions? Looks like Japanification might continue.
Germany
- Germany in Economic Decline (Twitter) See also Es naht das Ende der goldenen deutschen Dekade (Welt)
Iraq
- Exclusive: Islamic State suspects sent by U.S. from Syria to Iraq (Reuters) U.S. forces have quietly sent at least 30 suspected foreign Islamic State fighters captured in Syria last year and in late 2017 to stand trial in Iraq, interviews with the men, Iraqi sources and court documents show.
- US grants Iraq reprieve to continue buying Iranian gas (Al-Monitor) The United States has decided to grant Iraq a third 90-day sanctions waiver so it can continue to purchase gas from its sole provider, Iran, giving Baghdad some much-needed breathing room. On May 22 in Baghdad, Joey Hood, US chargé d’affaires in Iraq, stressed to reporters that the waivers will not continue indefinitely, so the United States is working with Iraq to reduce its dependence on Iran.
In exchange for extending the waiver, the United States is expected to impose conditions, perhaps a time limit and a program to help Iraq invest more effectively to boost the country’s own gas resources. According to media reports, Iraq has almost 131 trillion cubic feet of gas reserves, but as much as 700 million cubic feet of it is burned off daily through inefficiency.
Iraq’s geography and natural resources basically leave it with two options – speed construction of gas-processing plants to ensure a steady power supply or build networks with countries beyond Iran.
Iran
- Iran’s Rouhani suggests U.S. talks possible if sanctions lifted, commitments met (Reuters) Iranian President Hassan Rouhani signaled on Wednesday that talks with the United States might be possible if Washington lifted sanctions and met its commitments under a nuclear deal, state television said.
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Nepal
- Yes, This Photo from Everest Is Real (Outside) On May 22 about 200 people tried to summit Everest. The traffic jam ascending the mountain that day is shown below just below the summit. The crowd caused climbers already on top to not be able to get down for as much as 2 hours, which is an enternity in the “death zone”. One of climbers, American Don Cash, died.
China
- In the past, China sold Treasuries to boost the renminbi. (The Daily Shot)
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