Written by Econintersect
Early Bird Headlines 06 August 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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Notice: We have changed the form of content coverage for Early Bird. We will provide discussion only for Asia Markets news and a small number (often 1 or 2) other articles. The remainder of the content will be headlines (with links) only.
Key Articles
​Global
- Asia stocks slip amid US-China trade uncertainty (CNBC) Asia markets pared earlier losses but still saw declines on Tuesday as the U.S.-China trade war intensified, after Beijing confirmed it is suspending agricultural product purchases in response to new American tariffs. The U.S. dollar index was lower at 97.466 after declining from levels around 98.0 yesterday. Brent crude futures climbed $0.47, or 0.8%, to $60.28 a barrel by 0351 GMT after earlier dipping to $59.07, their lowest since Jan. 14. West Texas Intermediate (WTI) crude futures rose $0.47, or 0.9%, to $55.16 per barrel. Spot gold was down 0.2% at $1,460.19 per ounce as of 0734 GMT after hitting its highest level since May 2013, at $1,474.81, earlier in the session. Treasury yields edged higher.
U.S.
50. Hawaii
49. California
48. Massachusetts
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3. Oklahoma
2. West Virginia
1. Arkansas
- From Overbought to Oversold in Just One Week (Bespoke) Report received by email – no link.
Last week at this time, the S&P 500 and five of ten sectors were extended into overbought territory. After a 6% drop over the last 4 trading days, the S&P has moved all the way down into oversold territory.
Even still, so far it’s just a 5%+ pullback, which is something that has happened an average of three times per year during the current bull market that began in 2009. It’s the second 5%+ pullback of 2019.
Finally, keep your eye on the S&P’s 200-day moving average if you’re a long-term investor and ignore the day-to-day swings. The 200-DMA smooths things out and eliminates the noise. As shown below, the S&P’s 200-DMA has actually been trending sideways in a consolidation phase for the last 18 months now after a huge leg higher in 2017. The positive takeaway is that the 200-day just recently made a new high and is still pointed higher.
EU
- Boris Johnson has no intention of renegotiating Brexit deal, EU told (The Guardian) No-deal Brexit is British PM’s ‘central scenario’, chief Brussels envoy reportedly says.
China
- China accuses US of ‘deliberately destroying’ world order (The Guardian) Trade war rhetoric ratchets up as Beijing responds to US claim of being ‘a currency manipulator’
A day after Washington branded China a currency manipulator in a rapidly escalating trade dispute, China’s central bank said it “deeply regretted” the move by the US and said such behaviour “seriously undermined international rules” and damaged the global economy.
- The US and China are dragging currencies into their escalating fight. Here’s what you need to know (CNBC)
- Beijing allowed its currency, the yuan, to weaken to more than 7 per U.S. dollar – which led to the Trump administration labeling China a currency manipulator.
- The label is mostly symbolic without “major consequences on its own,” Goldman Sachs analysts said in a report.
- Still, it marks further escalation in U.S.-China tensions, with Citi analysts saying they expect Washington to raise tariffs on the just-announced $300-billion tranche from 10% to 25% “as soon as next month.”
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Other important articles
U.S.
- ‘Tipping point’: In shift, Florida Republicans blame shootings on white nationalism (Politico)
- Trump to visit El Paso mass shooting site, in spite of Dems’ warning to stay away (Fox News)
- Mass shootings test power of an NRA in turmoil (The Hill)
- USDA Scientist Quits, Claims Trump Administration Tried To Bury His Climate Study (MSN)
- All the Things Trump Is Blaming for El Paso (The Atlantic)
- Republican who blamed shootings on gay marriage urged to resign (The Guardian)
- Hospitals Block ‘Surprise Billing’ Measure In California (Naked Capitalism)
Iran
Russia
- Russia Built A Floating Nuclear Power Plant, Now It’s Making An Arctic Journey Despite ‘Chernobyl’ Comparisons (Newsweek)
- Fires, floods (and even bugs) are challenging Russia’s stance on the climate crisis (CNN)
India
Cambodia
- Chinese money transformed a sleepy beach town in Cambodia. Then came disaster (Los Angeles Times)
Philippines
North Korea
- North Korea fires more projectiles, says it may be ‘compelled to seek new road’ (The Guardian)
- ‘We will make them pay’: North Korea launches missiles, condemns U.S.-South Korea drills (Reuters)
China
- A military crackdown in Hong Kong would backfire on China’s economy (CNN)
- Latest US-China tensions could be the trade version of ‘the end of the world as we know it’ (CNBC)
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