Written by Econintersect
Early Bird Headlines 30 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 mixed amid positive signals from Beijing on US-China trade (CNBC) Stocks in Asia were mixed on Friday as Beijing hinted that it will not retaliate against the latest round of tariffs from Washington for now. The U.S. dollar index was higher at 98.579, recovering from lows below 98.0 seen earlier in the week. Brent crude futures slipped 0.36% to $60.86 per barrel and U.S. crude futures lost 0.67% to $56.33 per barrel. Spot gold fell 0.2% to $1,525.06 per ounce, as of 0112 GMT. U.S. government debt prices were lower Friday morning (yields were higher), after Chinese officials said the country would be open to calmly resolving its trade war with the world’s largest economy.
U.S.
- The inspector general report on James Comey’s memos, explained (Vox) What should the former FBI director do if he thinks the president is executing a corrupt cover-up? James Comey’s answer, in 2017, was to have allegations laid out in a memo documenting concerning conduct by the president given to the New York Times. Comey’s goal was to create a public uproar that would result in a special counsel being appointed – and indeed, Robert Mueller got the gig one day later. But Justice Department Inspector General Michael Horowitz opines in a new report that Comey really should not have done that. See Report of Investigation of Former Federal Bureau of Investigation Director James Comey’s Disclosure of Sensitive Investigative Information and Handling of Certain Memoranda (Office of the Inspector General, U.S. DOJ). From the conclusion oif that report:
Former Director Comey failed to live up to this responsibility. By not safeguarding sensitive information obtained during the course of his FBI employment, and by using it to create public pressure for official action, Comey set a dangerous example for the over 35,000 current FBI employees – and the many thousands more former FBI employees – who similarly have access to or knowledge of non-public information. Comey said he was compelled to take these actions “if I love this country…and I love the Department of Justice, and I love the FBI.” However, were current or former FBI employees to follow the former Director’s example and disclose sensitive information in service of their own strongly held personal convictions, the FBI would be unable to dispatch its law enforcement duties properly, as Comey himself noted in his March 20, 2017 congressional testimony. Comey expressed a similar concern to President Trump, according to Memo 4, in discussing leaks of FBI information, telling Trump that the FBI’s ability to conduct its work is compromised “if people run around telling the press what we do.” This is no doubt part of the reason why Comey’s closest advisors used the words “surprised,” “stunned,” “shocked,” and “disappointment” to describe their reactions to learning what Comey had done.
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- F.B.I. Raids U.A.W. Chief’s Home as Financial Inquiry Widens (The New York Times) The investigation has uncovered the improper use of millions of dollars of funds – some of it earmarked for training union members – and bribery of union officials by auto executives. In some cases, the funds were spent on personal travel and purchases of Rolex watches and other high-priced items. Eight people, including three former Fiat Chrysler executives, have been sentenced in the case. Another defendant, Michael Grimes, a former senior U.A.W. official, faces federal conspiracy charges.
On Wednesday morning in Canton, Mich., a Detroit suburb, agents from the Federal Bureau of Investigation searched the home of the union chief, Gary Jones, who was elected U.A.W. president last year.
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China
- Most U.S. Companies Plan to Stay in China and Ride Out Trade Unrest (Bloomberg) According to a new survey of U.S.-China Business Council members, 87% of respondents said they neither have moved nor plan to shift operations out of China, compared with 90% in a 2018 survey. Only 3% said their China operations were unprofitable, unchanged from a year ago.
- China will likely wait out the trade war as it bets on its own economy (CNBC)
- As trade tensions with the U.S. draw out, the world’s second largest economy will likely seek to beef up its domestic economy, which contributes more to growth than its exports, according to analysts.
- “We describe China’s current strategy as ‘endurance’: the main goal is to preserve China’s economic resilience, while taking the higher US tariffs as a given fact,” Deutsche Bank economist Yi Xiong wrote in a report.
- Meanwhile, China will also try to diversify its supply chains and accelerate its opening up to other countries – reducing its reliance on the U.S. in the longer term.
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Other important articles
Global
- The IMF (Still) Cannot Quit Fiscal Consolidation (Council on Foreign Relations)
U.S.
- Independent voters almost evenly split on which party has a better economic plan (The Hill)
Scammers are impersonating FBI phone numbers and agents, agency says (CNN)
EU
UK
Ireland
Iran
Russia
Afghanistan
South Korea
- South Korea’s fertility rate falls to record low (CNN) People in South Korea are having fewer babies and that’s a problem. The country’s total fertility rate last year fell to its lowest since records began, the government said on Wednesday. The total fertility rate measures the average number of children a woman will have in her lifetime. In 2018, this dropped to 0.98 — or less than one baby per woman, and a drop from the previous year’s rate of 1.05. This means 8.7% fewer babies were born in South Korea in 2018 compared to 2017.
China
- Hong Kong Tensions Rise as Key Activists Arrested, March Banned (Bloomberg)
Exclusive: Amid crisis, China rejected Hong Kong plan to appease protesters – sources (Reuters)
- Chinese missiles likely to cripple Asia-based US forces in event of conflict: report (South China Morning Post)
China could overwhelm US military in Asia in hours, Australian report says (CNN)
Argentina
Bolivia
- As Amazon Burns, Fires in Next-Door Bolivia Also Wreak Havoc (The New York Times)
Canada
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