Early Headlines: Asia Stocks And Oil Up, Dollar, Gold And Yields Down, 60 Year EM Bull, Comey's Problems, UAW Corruption, Dorian Moves, Bahamas' Devastation, Plus More - 28 Articles, 6 Graphics

Early Bird Headlines 04 September 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

Hong Kong stocks close nearly 4% higher after reports extradition bill could be formally withdrawn (CNBC) Most Asia-Pacific markets were higher Wednesday. The MSCI Asia ex-Japan index was more than 1.6% higher. The dollar Index gave up a two-year high touched on Wednesday to trade lower at 98.915. Brent crude was up $0.15, or 0.26%, at $58.41 a barrel by 0850 GMT, while U.S. West Texas Intermediate futures gained $.24, or 0.44%, at $54.18 a barrel. Spot gold slipped 0.2% to $1,543.02 per ounce at 0407 GMT, but near last week’s $1,554.56, its highest since April 2013. Treasuries edged lower (yields ticked up).

The 60-Year Bull Market in Emerging Market Stocks (Twitter) For only the fifth time in 60 years the bottom of the up-trending channel is being tested.

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.

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.

Bahamas

Satellite Images Show Grand Bahama Island Before And After Dorian’s Wrath (CBS Miami) Hat tip to Sig Silber. Grand Bahama Island was still in the path of Hurricane Dorian on Tuesday and the area continues to endure devastating weather conditions produced by the hurricane’s eyewall, according to the National Hurricane Center. Bahamian Prime Minister Hubert Minnis said many homes, businesses and other buildings have been destroyed or heavily damaged, calling the devastation “unprecedented and extensive.” Continue to follow Dorian with LIVE daily updates, the latest: Live: Severe Weather Events Issued On 04 Sept 2019 – Hurricane Dorian.

Satellite photo showing Grand Bahama Island before and after Hurricane Dorian made landfall. In the after photo (bottom), note the yellow lines that mark where the land was before the storm flooded the area.
(Source: Iceye via CNN)

Other important articles

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