G7 Summit, War of 1812, Brexiteers, Midterms, Walkable, Stanley Cup
Marc Ross Daily
June 7, 2018
Curation and commentary from Marc A. Ross
Reporting from Alexandria, Virginia
Marc Ross Daily = Business News at the Intersection of Global Politics + Policy + Profits
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TOP FIVE
✔️ Trump set to push US trade agenda at tense G7 meeting
✔️ RIP, post-World War II global order
✔️ Theresa May in compromise with ministers on Ireland border
✔️ More Americans screened over mystery health issues in China
✔️ Google braced for EU penalty over abuse of dominance
GEOECONOMICS
Trump tariffs stir up angst ahead of G7 summit: Politico reports, frustrations among the closest US allies are breaking into the open, with officials doubting any consensus from the meeting.
WSJ: Trump set to push US trade agenda at tense G7 meeting
Reuters: Trump sticks with hard line on trade as showdown looms at G7
Bloomberg: France warns Trump it won’t sign a G7 statement
Trump plans confrontational approach with world leaders at economic summit: WP reports, Trump plans to confront other world leaders at a summit in Quebec on Friday over what he believes is a global economic system tilted against the United States, several people briefed on the plan said, escalating tensions with U.S. allies who have expressed outrage at his pivot toward protectionism.
LAT: ‘Respected again’? Trump's claim for America strikes many allies and diplomats as ‘preposterous’
"In the main, it's a preposterous claim to say the US is better regarded in the world when we haven't had for many decades this many crises with our allies," said Nicholas Burns, a career diplomat under several presidents — serving as ambassador to NATO and Greece and as undersecretary of State — and now a professor at Harvard's Kennedy School of Government.
RIP, post-World War II global order: The Marshall Plan’s anniversary is time to reflect on what we’re losing.
Bloomberg - Mark Gongloff
LAT: North Korea summit is a signature moment for Trump and his challenge to the foreign policy establishment
Nikkei: US trade deficit rises with Japan but falls with China
Theresa May in compromise with ministers on Ireland border: AP reports, Britain’s Theresa May forged a compromise with senior members of her government Thursday amid opposition to her proposal for avoiding a hard border in Northern Ireland after the U.K. leaves the European Union. May held a series of meetings with top promoters of Brexit in her Cabinet amid reports that Brexit Secretary David Davis had considered resignation because he feared May’s plan could force Britain to follow EU trade rules indefinitely.
How Brexiteers lost control of Brexit: Appearances aside, Theresa May has her Cabinet right where she wants them. https://politi.co/2sKKLzh
"May and her team believe they have found a fudge that the majority of her Cabinet can stomach — partly because some pro-Leave Tories didn’t realize what was happening."
Telegraph: Theresa May offers olive branch to David Davis amid rebellion over 'Hotel California' Brexit plan
"David Davis has withdrawn his threat to quit after he reached agreement this morning with Theresa May over the Brexit "backstop" plan for Northern Ireland."
Weep for Brexit: the British dash for independence has failed
Telegraph - Ambrose Evans-Pritchard
"There will be no return to full sovereign and democratic self-rule in March 2019, or after the transition, or as far as the political eye can see. Britain will be bound and hemmed until the latent contradictions of such a colonial settlement cause a volcanic national uprising, as they surely must."
Nostalgia and politics are a dangerous mix: A new report reveals how our belief that the past was better than the present infects the way we think about the future.
The Times - David Aaronovitch
Today: Russian President Vladimir Putin holds his annual call-in broadcast show with citizens.
AP: Putin heads to China to bolster ties as US pressure grow
OTD: In 1929 the Vatican City became a sovereign state
FT: US investigates suspected ‘sonic attack’ in China
More Americans screened over mystery health issues in China: AP reports, a US medical team was screening more Americans who work in a southern Chinese city as the State Department confirmed evacuating a number of government workers who experienced unexplained health issues like those that have hurt US personnel in Cuba and China. The evacuations of the workers in Guangzhou followed medical testing that revealed they might have been affected. One case in Guangzhou had been disclosed last month. The China incidents affect one of the most important of the seven US diplomatic outposts in the country. The Guangzhou consulate opened months after the establishment of diplomatic relations between Beijing and Washington in 1979 and moved to its new purpose-built facility in 2013. It serves four southern provinces with a combined population of more than 204 million and processes more than 1 million visa applications of all types annually. It is also the only US diplomatic installation in China authorized to process immigrant visas and handle adoptions.
@marcorubio: When all is said & done the attacks in #China will prove to be broader than initially suspected & potentially related to the attacks in #Cuba
Bloomberg: China's Belt and Road could boost global trade by 12%, ING says
“Trade between Asia and Europe, not including trade between EU countries, accounts for 28 percent of world trade, so making those trade flows easier has a large potential impact”
China’s bringing tech back, with new listing rules hammered out: WSJ reports, China formalized a plan for its technology giants to trade on the nation’s stock market, opening its doors for the imminent listing of smartphone maker Xiaomi Corp. and the homecoming of Alibaba Group Holding Ltd.
CNBC: US hits China's ZTE with $1 billion penalty in deal to end crippling sanctions, Commerce Secretary Ross says
What is Senator Rubio thinking this morning?
China eyes role as world’s power supplier: FT reports, Chinese companies have announced investments of $102bn in building or acquiring power transmission infrastructure across 83 projects in Latin America, Africa, Europe and beyond over the past five years, according to RWR. Adding in loans from Chinese institutions for overseas power grid investments brings the total to $123bn. “China’s state-owned power companies are pursuing an aggressive overseas expansion strategy, investing in the construction and operation of energy networks in some countries and as equity investors in others,” says Xu Yi-chong, a politics professor at Griffith University, Australia and author of Sinews of Power, a book about State Grid. “[But] China’s push for interconnectivity does not have to mean that Chinese companies own or operate the grid.”
Western cities want to slow flood of Chinese home buying. Nothing works. WSJ reports, governments from Vancouver to Sydney to Toronto are using taxes and other restrictions to tackle real-estate bubbles.
Taiwan holds large-scale military drills amid China tensions: Reuters reports, Taiwan simulated repelling an invading force on Thursday and used civilian-operated drones for the first time as part of annual military drills on the self-ruled island amid escalating tensions with China.
Canada: PM Trudeau greeted President Macron by welcoming him for his first visit to Canada as French president Wednesday afternoon.
CBC: Trump, Trudeau had a testy phone exchange over steel tariffs
"Trudeau reportedly asked Trump how tariffs could be imposed on Canada on "national security" grounds. Trump reportedly responded: "Didn't you guys burn down the White House?""
AMERICAN POLITICS
WSJ: Democrats’ interest in midterms running ahead of Republicans’
NYT: Primary results give Democrats hope for a House takeover
WP: Democrats getboost in fight for control of House, but may fall short of a blue wave
All three of these headlines is accurate.
@peterbakernyt: For the first time since record-keeping began in 2000, the number of available jobs in America exceeds the number of job seekers.
This Ohio factory thought it could bring US jobs back from China. Then Trump got involved. WP reports, Bill Adler was invited last year to bid on a contract to make commercial sausage stuffers for a company that wanted to replace its Chinese supplier. The customer had just one nonnegotiable demand: Match China’s price. Adler, owner of metal-parts maker Stripmatic Products, thought he could. But even as he readied his proposal, talk of President Trump’s steel tariffs sent the price of Stripmatic’s main raw material soaring. In April, with prices up nearly 50 percent from October and the first wave of tariffs in place, Adler’s bid failed. His costs were too high. Today, instead of taking business from China, Adler worries about hanging onto the work he has. He hopes that the president’s tariffs are just a negotiating tactic. “It’s got to be short-term, or I’ve got to find another way to make a living,” Adler said, only half joking. “It’s going to be an ugly scenario if it doesn’t end quickly.”
Republicans in tight House races feel heat from Mexican tariffs: Reuters reports, Mexican tariffs are roiling US congressional campaigns in states where US exporters could take a hit and President Donald Trump's Republicans face tough races in November congressional elections.
Reuters: US Congress has few options to stop Trump from saving China's ZTE
"Sanctions laws that affect ZTE allow any president to waive them if he feels it is necessary for national security reasons. The U.S. Constitution also gives presidents broad control of foreign policy matters."
Trump’s trade war isn’t about economics. It’s about politics.
WP - Robert J. Samuelson
"Trump has embarked on a giant marketing campaign to convince us that foreigners — their exports — are to blame for our economic problems. It’s a seductive appeal to nationalism whose main defect is that it’s mostly untrue."
Campaign 101 = Good politics rarely makes good economics
WP - Max Boot: The real China threat isn’t even on Trump’s radar
"While Trump is ramping up his trade dispute with China, he is not focused on China’s illegal annexation in the South China Sea — an act of territorial aggression every bit as outrageous as the Russian invasion of Ukraine."
HBD: Mike Pence, US Vice President, is 59 yo.
The Hill: Trade groups in turmoil in the Trump era
"Industry associations change dramatically with the times"
ENTERPRISE
FT: Google braced for EU penalty over abuse of dominance
Vestager to escalate battle with tech group by ruling Android device maker terms illegal.
Instagram "is preparing to launch a new feature that will include long-form video" of up to an hour.
Project to allow WeChat to serve as ID in China’s Greater Bay Area: Caixin reports, data stored in QR code to allow residents of Hong Kong, Macau and Guangdong to cross each other’s borders without paper documents.
WSJ: Facebook confirms data-saring deals with Chinese tech firms
OTD: In 1965 Sony introduced the first home videotape recorder.
Amazon's TV deal with Jordan Peele among the highest-profile to date for streaming service.
Short-termism is harming the economy
WSJ - Jamie Dimon and Warren Buffett OpEd
https://on.wsj.com/2kTPBXu
"Public companies should reduce or eliminate the practice of estimating quarterly earnings."
TRENDS
50 reasons why everyone should want more walkable streets: From making you live longer to making cities more resilient: If you want a reason to make your city more walkable, it’s in here. http://bit.ly/2sL7E5W
Big Mac me: By 2020, every McDonald's will use self-order electronic kiosks
Call me: More than half of US households — 53.9% — rely entirely on cellphones
CULTURE
The best and worst airlines and airports of 2018 according to the sixth annual study by AirHelp https://bloom.bg/2xWKvTA
The 10 best airlines of 2018
1. Qatar Airways
2. Lufthansa
3. Etihad Airways
4. Singapore Airlines
5. South African Airways
6. Austrian Airlines
7. Aegean Airlines
8. Qantas
9. Air Malta
10. Virgin Atlantic
The 10 best airports of 2018
1. Hamad International Airport, Doha (DOH)
2. Athens International Airport, Athens (ATH)
3. Tokyo Haneda International Airport, Tokyo (HND)
4. Cologne Bonn Airport, Cologne, Germany (CGN)
5. Singapore Changi Airport, Singapore (SIN)
6. Nagoya Chubu Centrair Airport, Nagoya, Japan (NGO)
7. Viracopos International Airport, Campinas, Brazil (VCP)
8. Amman Queen Alia Airport, Amman, Jordan (AMM)
9. Guararapes-Gilberto Freyre International Airport, Recife, Brazil (REC)
10. Quito International Airport, Quito, Ecuador (UIO)
The midlife tuneup: Whether you are in your 30s, 40s, 50s or beyond, the Well midlife tuneup will put you on a healthier path to improving your body, mind, and relationships. https://nyti.ms/2Hq6FNH
Kate Spade dealt with depression and anxiety, her husband says, but her death ‘was a complete shock’: WP reports, Andy Spade said his wife was actively seeking help and working closely with doctors to treat her disease at the time of her death.
SPORT
NBA Finals: Kevin Durant carried Golden State to a 110-102 victory over Cleveland and a 3-0 series lead.
Stanley Cup: Game 5 tonight at 8:00 pm ET. Caps lead the Golden Knights 3 games to 1.
EPL: Amazon bought a package of live broadcasting rights for English Premier League soccer. Amazon will show two full rounds of matches per season, comprising 20 games, for three years starting in 2019. The games will be available on Amazon Prime Video at no extra cost to users.