Davos, TPP, USD, Border Wall, Macron, May, Musk, Toys ‘R’ Us
Caracal Insider Daily
January 24, 2018
Curation and commentary from Marc A. Ross
Reporting from Alexandria, Virginia
Caracal Insider = Global Business News at the Intersection of Politics + Policy + Profits
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TOP FIVE
✔️ Trump administration prepares for raft of trade decisions
✔️ The USD has slipped to the lowest level in three years
✔️ Trans-Pacific trade deal to go ahead without US
✔️ Border wall ‘off the table’
✔️ Macron invited to White House for Trump's first state visit
ROSS RANT
CGTN interview and a preview of Trump’s visit to World Economic Forum: Yesterday was the first day of the World Economic Forum in Davos, Switzerland. This year’s slogan is “Creating a Shared Future in a Fractured World.” I discuss the US’ changing trade policy, and Trump's highly anticipated speech.
CGTN
GEOECONOMICS
Ross says US is in a trade war, in a rhetorical split with Trump: Bloomberg reports, rade wars "are fought every single day," and the U.S. has been engaged in one "for quite a little while," Commerce Secretary Wilbur Ross said in comments that diverge from President Donald Trump. "The difference is the U.S. troops are now coming to the rampart," Ross told reporters at the World Economic Forum in Davos.
I guess he woke-up from his nap.
Trump tariffs spark criticism, raise tensions over trade: WSJ reports, eleven Pacific Rim nations forge a new trade bloc without the US and Europe moves to shore up other ties as Washington takes a tougher approach.
Trump administration prepares for raft of trade decisions: Reuters reports, the Trump administration is set to announce a raft of trade decisions over the next months, ranging from curbs on foreign imports of steel and aluminum to steps to clamp down on China's alleged theft of intellectual property. Trump has stressed his "America First" agenda in his first year in office and called for fairer, more reciprocal trade. He has blamed globalization for ravaging American manufacturing jobs as companies sought to reduce labor costs by relocating to Mexico and elsewhere.
The USD has slipped to the lowest level in three years.
Trans-Pacific trade deal to go ahead without US: FT reports, Pacific Rim nations including Japan and Canada aim to sign a comprehensive pact in March.
Meet the new leaders on global trade: Abandoned by the US, the 11 countries in the Trans-Pacific Partnership trade pact are going ahead anyway. Bloomberg - Editorial
Bloomberg: China will surprise world with reforms in 2018, Xi adviser says
He is correct. It will be a surprise.
China orders state-run companies to make profits: Bloomberg reports, China has taken the unusual step of ordering its biggest state-owned enterprises to earn profits this year as the government increases its scrutiny of bloated businesses, according to people familiar with the matter. The State-owned Assets Supervision and Administration Commission told senior executives on Jan. 15 about the edict, which will apply to all of the nation’s 98 central SOEs.
The market usually makes this decision.
The Harvard-educated ‘brain’ behind China’s economic transformation: Bloomberg reports, when Liu He takes to the lectern in Davos on Wednesday, the Harvard-educated technocrat will move further into the spotlight that’s been aimed at him since his elevation to China’s top political body last year. A key adviser to President Xi Jinping, Liu is China’s representative to the World Economic Forum’s annual meeting this week. The visit -- which culminates in a speech to the gathering today -- is likely to be the first of many high-profile appearances by the 65-year-old Cultural Revolution survivor, who’s on track to become Xi’s key lieutenant on China’s economy and financial system.
Venezuela will hold presidential elections before the end of April as President Nicolas Maduro looks to consolidate power amid a major economic crisis.
Brazil court holds key to Lula comeback: FT reports, former president’s election hopes could be dashed if corruption conviction is upheld.
Inside the dysfunctional relationship of Donald Trump and Theresa May: Bloomberg reports, forget closer transatlantic ties and a state visit to London, it’s been a year of public clashes. https://goo.gl/Q994hZ
AMERICAN POLITICS
Questions for the president: Bloomberg reports, Special Counsel Robert Mueller wants to grill Trump about his decision to fire former FBI Director James Comey and remove Michael Flynn as national security adviser.
The Fed: The Senate confirmed Jerome Powell to be the next chairman of the Federal Reserve by an 84-13 vote.
NYT: Border wall ‘off the table,’ Schumer says, as immigration progress unravels
CBS: Emmanuel Macron invited to White House for first state visit of Trump administration
In Davos, a club Trump has revered and resented finally opens its doors: NYT reports, by any measure, he made a lot of money, the kid from Queens, maybe not as much as he boasted, but a fortune. And yet the chip on his shoulder was at least as big as his bank account. Never accepted, never respected, he remained on the outside pressing his nose against the window of the club of elites he both revered and resented. So when Trump arrives in this snowy, mountaintop resort where financial titans mingle with heads of state in an annual saturnalia of capitalism, it may feel like a moment of vindication. Never invited when he was merely a businessman, Trump will arrive on Thursday as leader of the world’s last superpower, commanding attention if not admiration. Whatever else, he cannot be ignored now.
WEF road trip: Trump is set to leave tonight at 8:30 pm ET for the World Economic Forum in Davos, Switzerland.
Trump and May are due to meet in Davos tomorrow.
WP: Google for the first time outspent every other company to influence Washington in 2017
ENTERPRISE
WSJ: Toys ‘R’ Us plans to close about 180 US stores this year
Price war pressures consumer-goods giants: WSJ reports, Procter & Gamble said average prices fell for the first time since 2011; rival Kimberly-Clark to slash jobs.
Elon Musk has agreed to work free for 10 years in exchange for a bonus of £40bn if he can turn Tesla into a $650bn company.
TRENDS
Blockchain can no longer be ignored: Technology that powers cryptocurrencies have weathered a storm of opposition. https://goo.gl/yMt4Vt
Why quitting smartphones is the new quitting smoking: We need real rules to nudge people away from addiction to their devices. https://goo.gl/2Ethct
CULTURE
Oscars 2018: The complete list of nominees https://goo.gl/Vyhrjx
Oscars 2018: Here are 538's early predictions https://goo.gl/nMwtwZ
Fashion topics get a spot on the Davos agenda: NYT reports, amid discussions on climate change and populism, the rise of robots and the booming global economy, will be a number of talks, papers, and presentations from power players in — fashion. “We recognized the economic, social and environmental role of an industry that can sometimes appear trivial,” said Cristiana Falcone-Sorrell, senior adviser to Klaus Schwab, the forum’s chairman. Celebrities have often added some sparkle to the mix (Cate Blanchett and Elton John will be in town this year to accept awards for their service to philanthropy), and luxury brand chief executives have been in the audience, but the fashion industry has never before had such a strong foothold in the agenda.
Virtual pistes: The US ski team has trained inside VR for the Winter Olympics.
Gen Z punts on the NFL: AdAge reports, more teens, and youth are turning to streaming and e-gaming over watching football on TV -- or playing it.
