China, Sweden, UN General Assembly, Iran, Paris Fashion Week, Michael Kors

Marc Ross Daily
September 24, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia 

Marc Ross Daily  = Business News at the Intersection of Globalization, Disruption, and Politics

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TOP FIVE

✔️ China cancels trade talks with US as new Trump tariffs loom

✔️ Sweden temporarily halts Uighur deportations to China

✔️ Trump at UN General Assembly

✔️ Brent oil climbed past $80 a barrel

✔️ Sirius XM is buying music-streaming firm Pandora

GEOECONOMICS

Today: Trump’s threat to impose duties of up to 25% on more than $200 billion in Chinese imports to the US will morph from tough-guy negotiating ploy to blunt global business reality. Enjoy the ride.

WP: China cancels trade talks with US as new Trump tariffs loom

US reliance on obscure imports from China points to vulnerability: WSJ reports, Chinese imports exempted from the US’ initial tariff hit-list show how China has become an outsize global producer of relatively obscure industrial commodities—on which American industry has become reliant.

Nikkei: China's 5G a bigger threat than trade war, says ex-Dallas Fed chief

Former CEO Fisher claims US fears Chinese tech hegemony.

Rana Foroohar: US trade hawks seize their moment: Latest tariffs look more like the start of a cold war than a trade war. https://on.ft.com/2MYydwd

When a trade war isn't a trade war - this is what we have here.

Nationalist governments in Beijing and DC set the tone for extended friction and a new path for US-China commercial relations. Plan accordingly.

FT: China’s relentless export machine moves up the value chain

Mid-range manufacturing push improves the Chinese position as trade war intensifies.

Chinese living in extreme poverty:

1990: 755.8 million
2015:   10 million

HT World Bank

Critics divided on Vatican’s deal with China over bishops: WSJ reports, a landmark agreement between the Vatican and China on the appointment of bishops drew sharply divided reaction over the weekend, as global Catholic observers weighed its implications for religious freedom.

AFP: Sweden temporarily halts Uighur deportations to China

Once wildly popular, Philippine President Rodrigo Duterte has been losing the public's trust: LAT reports, Filipinos are losing trust in their tough-talking president, Rodrigo Duterte, whose approval rating has dropped from 90% to 57% since he took office in 2016.

President of the Maldives, who has been close to China, concedes defeat in election.

SCMP: Italy aims to be China’s first G7 partner on belt and road

Deputy prime minister Luigi Di Maio says he wants to sign cooperation deal with Beijing before year is out.

Wolfgang Münchau: No-deal Brexit is the likely outcome of Salzburg

Iran seethes at Saudis, West after deadly terror attack: WSJ reports, Iran has begun a diplomatic push against the US, European and Arab countries it says supported or harbored people linked to a terrorist attack that left 25 people dead and fueled Middle East tensions. 

Iran vows bloody revenge on US, Israel and Saudis: The Times reports, Iran warned of revenge against the “triangle” of Saudi Arabia, Israel and the United States today as it buried the 29 people killed in an attack on a Revolutionary Guard parade. Tehran accused Britain, the Netherlands and Denmark of harbouring terrorists after the attack on a parade ground in the southwestern city of Ahvaz, centre of Iran’s Arab minority. 

Rudy Giuliani said that US sanctions on Iran are leading to economic pain that could lead to a “successful revolution,” contrasting with administration comments that government change in Tehran is not US policy.

Government debt per person:

1. Japan: $90,345
2. Ireland: $62,687
3. US: $61,539
4. Italy: $59,372
5. Belgium: $59,680
6. Austria: $49,975
7. France: $51,768
8. Greece: $49,630
9. UK: $52,816
10. Portugal: $44,819

HT OECD

BRIGADOON IN MOTOWN

Brigadoon Detroit | Salon Dinner = October 11, 2018

Dinner will be held at The Apparatus Room @ Detroit Foundation Hotel with a discussion on the creation of new urban mobility solutions as well as mobility trends seen globally.

More info here: http://bit.ly/2MEXICM 

AMERICAN POLITICS

Congress: The House and Senate are both in session this week.

Today: Trump speaks at UN General Assembly event on 'Global Call to Action on the World Drug Problem' 

NYT: An undiplomatic Trump? At this UN meeting, his aides fear the opposite

For Trump’s advisers, the biggest risk at the United Nations General Assembly this year is that he will be overly enthusiastic about engaging with adversaries.

Laying out requirements is one thing; controlling the president’s conviction that he can outmaneuver any leader, or strike any deal, is another.

NYT: As deal is reached with Kavanaugh’s accuser, Feinstein calls for delay

Christine Blasey Ford, who accused Judge Brett M. Kavanaugh of sexual assault, will testify on Thursday before the Senate Judiciary Committee.

But not long after Dr. Blasey agreed to testify, Senator Dianne Feinstein requested “an immediate postponement,” citinga secondaccusation of misconduct.

Second woman accuses Kavanaugh of sexual misconduct: FT reports, Trump’s Supreme Court plans hit by new obstacle ahead of critical showdown this week.

Jennifer Rubin: Ford runs circles around hapless Republicans, who now have a second scandal

"Free advice: Cut their losses, get Kavanaugh to withdraw and promise a better nominee with no baggage later this year or next."

‘100 kegs or bust’: Kavanaugh friend, Mark Judge, has spent years writing about high school debauchery https://wapo.st/2xwjeoC

EMILY's List, a group backing pro-abortion rights women candidates, will spend $37 million this cycle.

The price of Brent oil climbed past $80 a barrel.

OTD: In 1960 the first nuclear-powered aircraft carrier, the USS Enterprise, was launched at Newport, Virginia

CA fire: The Ranch Fire, which became the largest wildfire in the history of California, has finally been contained. The blaze was declared extinguished on Wednesday, with a final count of 459,123 acres claimed by the fire. 

ENTERPRISE

Tencent Music is expected to raise $2 billion in its upcoming IPO.

Huawei banned? The Economic Times of India reports that Huawei and ZTE had been blocked from participating in the construction of India's 5G network.

US tech giants eye AI key to unlock China push: Reuters reports, US technology giants, facing tighter content rules in China and the threat of a trade war, are targeting an easier way into the world’s second-largest economy - artificial intelligence. Google, Microsoft, and Amazon showcased their AI wares at a state-backed forum held in Shanghai this week against the backdrop of Beijing’s plans to build a $400 billion AI industry by 2025. China’s government and companies may compete against US rivals in the global AI race, but they are aware that gaining ground won’t be easy without a certain amount of collaboration.

Michael Kors is close to buying storied Italian fashion house Versace for around $2.35 billion.

Barrick Gold agreed to buy Randgold Resources for $6 billion in an all-share merger that will solidify Barrick as the world’s largest gold company by production.

Reuters: Sky's shares jump after Comcast wins auction with knockout blow

Sirius XM is buying music-streaming firm Pandora in an all-stock deal the companies said they value at about $3.5 billion.

#MergerMonday

WSJ: Wall Street’s marijuana madness: ‘It’s like the internet in 1997’

Nike has added $6 billion to its market value since announcing a deal with Colin Kaepernick.

CULTURE

Spider-Man for the PlayStation 4 has become Sony’s best-selling game.

LAT: Chasing 'likes' on Instagram, hikers break limbs — and need rescuing

Catwalk: Paris Fashion Week begins.

Number of Michelin 3-star restaurants:

Japan: 28
France: 27
US: 14
Germany: 11
China: 10
Spain: 9
Italy: 9
UK: 5
Netherlands: 3
Switzerland: 3

Today: 'The Big Bang Theory', the 12th and final season of the award-winning comedy series begins

SPORT

Golf: Tiger Woods won the PGA Tour Championship.

Tiger's first title win in five years.

NFL: The Detroit Lions surprised the New England Patriots with a convincing 26-10 victory at home.

It's like Detroit won a Super Bowl championship!

AP Top 10:

1. Alabama 
2. Georgia 
3. Clemson
4. Ohio State 
5. LSU 
6. Oklahoma 
7. Stanford 
8. Notre Dame 
9. PennState 
10. Auburn
14. Michigan 
21. Michigan State

Premier League Table:

1. Liverpool
2. Man City
3. Chelsea
4. Watford
5. Tottenham
6. Arsenal
7. Man United
8. Bournemouth
9. Leicester City
10. Wolves

Injured Indian yachtsman plucked to safety from remote ocean: AFP reports, a solo Indian sailor adrift at sea thousands of kilometres from dry land with a serious back injury was safely rescued from his stricken yacht Monday after an international search effort. Abhilash Tomy, a competitor in the Golden Globe round-the-world race, was badly injured during a storm that damaged his vessel and put its mast out of action on Friday as he sailed through a remote stretch of the Indian Ocean.