China 2025, Macron, Pompeo, Caterpillar, Wine, Avicii, Champions League

China 2025, Macron, Pompeo, Caterpillar, Wine, Avicii, Champions League

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

Reporting from Alexandria, Virginia

Marc Ross Daily  = Global Business News at the Intersection of Politics + Policy + Profits

Subscribe here: https://goo.gl/bSQKwA

TOP FIVE

✔️ How ‘Made in China 2025’ became the real threat in a trade war

✔️ India and China jostle for influence in Iran and Central Asia

✔️ Macron visits Trump

✔️ Panel backs Pompeo for Secretary of State

✔️ Global wine output fell to its lowest level in 60 years

GEOECONOMICS

LAT: How ‘Made in China 2025’ became the real threat in a trade war: Made in China 2025 is at the core of a trade dispute with Washington that threatens to cripple the global economy. So what is it? https://lat.ms/2KbtQ0T

US brands suffer collateral damage in Chinese corporate war: AP reports, as the Trump administration pushes China to play by fair trade rules, companies are caught in a quieter but no less crucial struggle for fair access to a $610 billion online marketplace, an AP investigation has found. Executives from five major consumer brands told the AP that after they refused to enter exclusive partnerships with Alibaba, traffic to their Tmall storefronts fell, hurting sales.

In ZTE battle, U.S. suppliers are collateral damage: WSJ reports, American companies that supply chips, antennas and other gear to ZTE are bracing for a sizable revenue loss after the U.S. said they no longer would be able to sell components to the Chinese telecommunications giant.

China fails to get Indian support for Belt and Road ahead of summit: Reuters reports, China failed to get India's support for its ambitious Belt and Road infrastructure project at the end of a foreign ministers' meeting of a major security bloc on Tuesday, ahead of an ice-breaking trip to China this week by India's prime minister.

India and China jostle for influence in Iran and Central Asia: Nikkei reports, New Delhi's 7,000km transport corridor cuts across Beijing's Belt and Road.

Weak business morale from Germany, France, Italy points to slowdown: Reuters reports, business morale in Germany, France and Italy -- the euro zone's three biggest economies -- deteriorated in April as a stronger currency and capacity constraints limited output, signaling that growth in the currency bloc has reached its peak.

WSJ: Macron visits Trump, hoping to bridge policy gaps

NYT: Macron hopes bond with Trump will help save Iran deal

Trump participates in a joint press availability with the President of France @ 11:45 am ET

'No jeans' rule causes boules blues in France: AFP reports, must one be nattily dressed to play boules? Rules outlawing the wearing of jeans during the national championship in France have provoked an outcry from fans of the famed Gallic game. Often played in parks, traditionally with a glass of wine or aniseed liquor in hand, boules or "petanque" is usually an informal affair in France that unites young and old from all social backgrounds.

AMERICAN POLITICS

After vote switch, panel backs Pompeo for Secretary of State: NYT reports, minutes before a Senate committee vote, Senator Rand Paul, Republican of Kentucky, bowed to pressure and backed the confirmation of Mike Pompeo to be secretary of state, avoiding a major rebuke of Trump.

Reuters: Senate committee paves way for Pompeo to become top U.S. diplomat

WP: Senate to delay confirmation hearing for Jackson to head Veterans Affairs

Trump's next $100 billion tariff dilemma: hit Wal-Mart or Apple Store?Reuters reports, U.S. consumers may be about to directly feel the effects of the trade fight started by U.S. President Trump with China and other countries this year when a new list of Chinese imports to be taxed is announced in coming days.

Trump is pushing hard to reach NAFTA agreement, both with trading partners and with Congress: LAT reports, the administration is trying to beat political deadlines and wrap up talks on NAFTA.

ENTERPRISE

Caterpillar raised its earnings forecast in a sign that industries from mining to energy are shrugging off trade tensions and gaining momentum. Shares surged.

Great sign for the global economy - expansion continues

Reuters: Softbank, Google join $1.9 billion investment in China truck-hailing firm

FT: NYSE challenges NASDAQ’s reign as king of the tech IPO

Bloomberg: The Chinese car invasion is coming to America

Starbucks is embracing the drive-thru lane - 80% of all its new U.S. cafes will have them. 

Amazon can now deliver packages to your car: WSJ reports, the e-commerce company said it has teamed with General Motors and Volvo Cars to start offering in-car deliveries, giving its couriers access to potentially millions of vehicles in 37 U.S. markets.

Reuters: To beat porch thieves, Amazon slips packages in car trunks

WeWork aims to tap debt markets in expansion drive: FT reports, shared office space provider valued at $20bn by last year’s SoftBank investment.    

Ford changed leaders, looking for a lift. It’s still looking. NYT reports, after 11 months as chief, Jim Hackett has yet to satisfy those looking for a clear articulation of a strategy. But big moves could be in the offing.

FT: Puma prepares to shift production from China over tariff fears

Volkswagen to invest $18bn in China by 2022: Nikkei reports, new chief Diess says to builds six EV plants in world's largest auto market.

Reuters: Arrested Chevron workers could face treason charge in Venezuela - sources

Wine: Global wine output fell to its lowest level in 60 years in 2017 due to poor weather conditions in the European Union that slashed production in the bloc.

TRENDS

Reuters: Music streaming overtakes physical sales for the first time: industry body

"Online streaming services such Spotify and Apple Music have become the music industry’s single biggest revenue source"

CULTURE

RIP Avicii: Hard-living Swedish ‘superstar DJ’ who made dance music anthems for millennials, but struggled with fame and anxiety.

Australia boy, 12, runs away to Bali usingfamily credit card: AFP reports, Australian police were Tuesday investigating how a 12-year-old boy managed to fly alone to the Indonesian island of Bali and spend four days at a resort using his parents' credit card. The boy ran away from his Sydney home after a row with his mother, flying first to the Western Australian city of Perth on budget airline Jetstar and then on to Bali, according to commercial broadcaster Channel Nine.

SOTD

Avicii - Wake Me Up http://bit.ly/2vEQv2v

SPORT

Carlo Ancelotti is set to be given the job of reviving the fortunes of Italy's national team, according to reports on Tuesday.

Champions League - Semi-Finals:

Tuesday = Liverpool v Roma @ 2:45pm ET
Wednesday = Bayern v Real Madrid @ 2:45pm ET

May 1 = Real Madrid v Bayern @ 2:45 pm ET
May 2 = Roma v Liverpool @ 2:45 pm ET

Chinese Communist Party, Trade Talks, Macron, Pompeo, Amazon

Chinese Communist Party, Trade Talks, Macron, Pompeo, Amazon

Marc Ross Daily
April 23, 2018
Curation and commentary from Marc A. Ross

Reporting from Amsterdam, Netherlands

Marc Ross Daily  = Global Business News at the Intersection of Politics + Policy + Profits

Subscribe here: https://goo.gl/bSQKwA

TOP FIVE

✔️ Foreign business and the Chinese Communist Party

✔️ China and US poised for fresh trade talks

✔️ How China is buying its way into Europe

✔️ Senate panel poised to vote against backing Pompeo

✔️ Amazon to double down on groceries

ROSS RANT

Foreign business and the Chinese Communist Party - additional stress to US-China commercial relations

It is widely agreed by foreign multinational corporations operating in China that the Chinese Communist Party (CCP) is strengthening its influence — often gaining direct decision-making power — over the international firms doing business in China.

CCP officials are increasingly calling on companies to support the creation of party organizations among their employees. The potential for party groups to influence corporate decision making has raised concern among many US company executives - such an environment is only adding more stress to the US-China commercial relationship.

Since taking power, Xi has reasserted the CCP's supremacy, with himself as its “core” leader. This has meant greater control over personnel and strategy at state-owned enterprises, which control about 40 percent of the China’s industrial production, as well as schools and universities. Xi’s chief policy-making instrument has been an increasing array of party “leading small groups,” which set and coordinate policy. 

Foreign companies are concerned about the establishment of a party unit in a foreign company and what this means should the CCP play a broader role in foreign companies’ operational decision making. For example, making decisions which are political rather than for business reasons. 

No doubt American business is telling the Trump administration such moves by the CCP into potential management roles of foreign-invested enterprises is not a positive step for the commercial relationship. 

Should the current trade irritation between China and the United States worsen, Beijing could be moved to intensify the party’s role in foreign business further, even allowing the boycotting of American goods and services, creating yet more headaches for businesses operating in China.

This real time business environment has put American companies in particular in the middle of a brewing fight between Beijing and Washington.

Enjoy the ride.

GEOECONOMICS

China ‘welcomes’ Mnuchin’s interest in traveling to Beijing for trade talks: WSJ reports, Treasury Secretary Steven Mnuchin says he may be heading to Beijing for trade negotiations, suggesting an easing of US-China tensions that have widened to include big-name companies in both countries. Mr. Mnuchin said Saturday he is considering the China trip, and on Sunday, China’s Commerce Ministry said in a terse statement that “the Chinese side welcomes this.” The display of good will, following weeks of harsh words from both sides, gives rise to hope of a thaw in a trade stalemate that has seen both countries slap tariffs on some goods and threaten to impose them on a lengthening list of products.

FT: China and US poised for fresh trade talks

Bloomberg:US hints at China truce as world warns of trade-war threat

The Times: Trade war fears eased by plans for US-China talks

US questions Cosco’s takeover of cargo terminal in Long Beach: WSJ reports, Chinese shipping giant willing to divest California port operations to clear CFIUS review of $6.3 billion takeover of Asian rival.

In US-North Korea talks, China is left out and worried: NYT reports, Beijing is concerned that a grand deal with North Korea’s longtime enemies could diminish its influence over Pyongyang, experts said.

Bloomberg: How China is buying its way into Europe https://bloom.bg/2qRtcxn

"For more than a decade, Chinese political and corporate leaders have been scouring the globe with seemingly bottomless wallets in hand. From Asia to Africa, the U.S. and Latin America, the results are hard to ignore as China has asserted itself as an emerging world power. Less well known is China’s diffuse but expanding footprint in Europe."

Ahead of summit, South Korea says it will stop blasting K-Pop, propaganda along border with the North: LAT reports, the South Korean military has announced it will muffle high-decibel propaganda loudspeakers along the highly fortified border as a gesture of goodwill ahead of this week's summit between the two nations' leaders.

Macron has little to show for his efforts to court Trump: NYT reports, President Emmanuel Macron of France leaves on Monday for a state visit to Washington, where he will try, once again, to close the gap with President Trump on climate change, Iran and trade.

Macron will visit DC today with a tour of Mt. Vernon followed by a dinner on the property - more meetings, press conference, and proper State Dinner tomorrow.

LAT: French, German leaders will bring Trump the same message: Save the Iran nuclear deal

Hiring tumbles at UK fund houses as Brexit plans kick in: FT reports, asset managers cut back on London appointments and bolster European bases.

FT - Editorial: Stop our oceans choking on a plastic overdose: Governments and companies must act globally to clean up the seas.

AMERICAN POLITICS

WSJ: Senate panel poised to vote against backing Pompeo

Romney faces clearer path to GOP Senate nomination despite Utah convention setback: WP reports, although his challenger depicts Mitt Romney as an establishment interloper, the 2012 presidential nominee has a financial edge and greater name recognition in his bid to replace Utah Sen. Orrin G. Hatch.

"Clyburn urges full leadership shakeup If Democrats fail to retake House"

GOP split as banks take on gun industry: Politico reports, it's a conundrum that puts free-market principles at odds with gun rights, and Republicans across the board are genuinely split.

ENTERPRISE

Tencent music plans IPO; Valuation could exceed $25 billion: WSJ reports, Tencent Music, China’s largest music-streaming company, is preparing what would be one of the largest tech IPOs ever.

WSJ: US-China trade war is bad news for Google’s expansion

"Google is relying on several Chinese companies to distribute its Android apps to millions of less-affluent smartphone users, even as rising trade tensions between China and the U.S. are making those partnerships more risky."

China's ZTE and Huawei to take big hits from US restrictions: Nikkei reports, cut-off access to 5G tech and tainted images will hurt device makers.

Guidance for employees on nonpaying customers: WSJ reports, recent arrests of two nonpaying visitors at a Philadelphia Starbucks have raised questions among some employees about how to handle such situations.

FT: General Electric: Zombieland

"Conglomerate can only get by on dullness for so long"

#Ouch

Tata Consultancy Services is set to be India’s first $100bn in a nearly a decade.

Reuters: Amazon to double down on groceries; foray deeper into fresh produce in India

NYT: Is Facebook’s Campbell Brown a force to be reckoned with? Or is she fake news? https://nyti.ms/2qRuyrX

CULTURE

FT: Why we are irrational about MBA rankings https://on.ft.com/2HmjeKy

House of Lords, Kim-Trump Summit, P&G, Amazon Prime, 420, Ikea

House of Lords, Kim-Trump Summit, P&G, Amazon Prime, 420, Ikea

Marc Ross Daily
April 19, 2018
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia

Marc Ross Daily  = Global Business News at the Intersection of Politics + Policy + Profits

Subscribe here: https://goo.gl/bSQKwA

TOP FIVE

✔️ Oil at 4-year high

✔️ Lords votes to amend Brexit bill

✔️ How aging aircraft may dictate Kim-Trump venue

✔️ P&G slogs through ‘difficult’ markets for sales growth

✔️ 100 million people globally are now paying for Amazon Prime

ROSS IN THE NEWS

CGTN - American: Just how close is the US to a trade war with China? I was on CGTN-America last evening for an interview with Mike Walter on the state of US-China commercial relations.

Trade war? 

Not really.

More like a trade irritation.

You can watch the clip here: http://bit.ly/2HyWF8P

GEOECONOMICS

Oil at 4-year high ahead of OPEC-Russia meeting: FT reports, energy stocks and crude-linked currencies rally as investors eye longer production curbs

How the US positioned its warships to trick Russia ahead of Syrian strikes: Navy Times reports, the guided-missile destroyers Donald Cook and Winston Churchill never fired a shot in Friday’s allied airstrikes against Syria, but as it turns out, they were key to the mission’s success. 

UK's House of Lords votes to amend Brexit bill over customs union http://p.dw.com/p/2wI2Z

Bloomberg: May defeated in Lords on Brexit, signaling more challenges ahead

Former UK PM David Cameron says he doesn’t regret holding the Brexit vote in 2016, but still wishes the country had voted to remain.

Germans divided over impact of globalization: studyhttp://p.dw.com/p/2wIh7

Angela Merkel snubs Emmanuel Macron on plan for EU monetary fund: FT reports, Chancellor sticks to party line and disappoints French president ahead of reform summit.

Macron is rightful heir to the spirit of 1968: Today’s protesters want to cling on to the past, not seize the future.
FT - Philip Stephens

Macron wants to save Europe. He’ll need to save France first: Bloomberg reports, the French president heads to Washington in hopes of gaining support for his ambitious agenda. https://bloom.bg/2K06J9h

China conducts war games, and Taiwan is the target: NYT reports, China carried out live-fire military drills in the Taiwan Strait on Wednesday, its state news media reported, an exercise intended to show the growing strength of its navy and deliver a message to self-governed Taiwan, which China claims as its territory. 

WSJ: Trump says he’ll walk out of Kim meeting if it’s ‘not fruitful’

NYT: Meet me in Mongolia: How aging aircraft may dictate Kim-Trump venue https://nyti.ms/2J7uuuO

What’s inside made-in-China electronics should worry federal customers, study says: WP reports, the U.S. government is dangerously vulnerable to Chinese espionage or cyberattack because of its dependence on electronics and software made in China, a risk that threatens to grow as Beijing seeks global technological dominance, according to a study for a congressionally chartered advisory commission. Information technology products made by enterprises owned or influenced by China could be modified to work poorly, conduct espionage or otherwise interfere with government operations, said the report for the U.S.-China Economic and Security Review Commission, which is scheduled to be released Thursday. Much of the government’s annual $90 billion in spending on information technology is devoted to Chinese products, offering Chinese officials an opportunity to seed U.S. government offices with spyware and electronic backdoors that could be exploited for cyberattacks, said Jennifer Bisceglie, chief executive of Interos Solutions, which conducted the study. https://wapo.st/2HbKVd0

WSJ: China wary of Qualcomm’s $44 billion NXP deal amid tensions with US

NYT: Huawei and ZTE hit hard as US moves against Chinese tech firms

Bloomberg - Daniel Moss: US earns more in China than trade numbers reveal: That leaves American companies vulnerable to retaliation by Beijing. It also gives them more reason to defuse trade tensions. The huge missing ingredient in the trade deficit number is the business done in China by American companies. General Motors Co. sells more cars in China than at home. There are more Apple Inc. iPhones used in the Middle Kingdom than in the U.S. Overall, China subsidiaries of U.S. companies sold $223 billion of stuff in 2015, reckons Deutsche Bank AG. 

The timeline for a potential U.S.-China trade war: 

May 1, exemptions to the tariffs on imported steel and aluminum expire.

May 22, the public comment period ends for another $50 billion worth of tariffs, and the Trump administration can announce a final list of targets.

August 18, potentially the deadline for the administration to act on an investigation into Chinese trade practices. But there’s a provision for a 180-day delay after that.

NAFTA: Negotiators from Canada, Mexico and the United States are hoping to wrap up their talks for a revised North American Free Trade Agreement with a preliminary deal within the next three weeks.

AMERICAN POLITICS

WSJ: Gorsuch sides with liberal justices in immigration ruling

USTR Robert Lighthizer spent more than $917,000 to furnish the two trade offices near the White House, according to contracts reviewed by WP. 

I assume all this furniture was Made in America?!?

Across Midwest, farmers warn of GOP losses over Trump’s trade policy: NYT reports, China’s proposed tariffs on soybeans would hit hard in Iowa, Kansas, Missouri, North Dakota and other states with highly competitive House and Senate races. After an initial round of tariffs on a modest share of American exports, the Chinese have displayed a more keen awareness of the electoral map and moved to punish those industries whose misfortune will be felt most intensely in states and districts pivotal in 2018.

Marco Rubio, darling of GOP establishment, hires a thorn in its side: NYT reports, as chief executive of the influential conservative think tank Heritage Action for America, Michael Needham waged years of unforgiving political warfare against the Republican Party establishment, deepening the divide between party leaders and grass-roots activists that helped elevate Donald J. Trump to the presidency. Now Mr. Needham is leaving his job there to become chief of staff for one of the Republican establishment's favorite sons, Senator Marco Rubio of Florida. The move is certain to raise questions about whether Mr. Rubio, whose hopes of becoming president in 2016 were dashed by Mr. Trump, may be positioning himself for another run.

Germany at the White House: Trump will welcome Chancellor Angela Merkel of Germany to the White House on April 27, 2018.

There are at least 100 buildings in San Francisco that are both over 240 feet tall and built on ground that has a very high chance of liquefying in an earthquake.

Facebook enlists conservative help to resist privacy rules: Politico reports, an email seeking US groups’ assistance against EU-style regulations came as Mark Zuckerberg was preparing to testify to Congress.

ENTERPRISE

A Bon-Ton liquidation jeopardizes US mall owners already in trouble: CNBC reports, as Bon-Ton heads to liquidation, the shuttering of more than 200 regional department stores jeopardizes U.S. mall owners already struggling to fill empty stores.

A robot has been trained to achieve one of the most difficult tasks confronting humanity: assembling Ikea furniture.

FiveThirtyEight is moving from ESPN to ABC News. 

Walmart is making its website a little less like Walmart: WSJ reports, the retail giant will launch a redesigned site in May with higher-end brands in mind.

Walmart is a beast and is making a lot of wise moves.

Chinese money floods US biotech as Beijing chases new cures: Bloomberg reports, venture-capital funds based in China poured $1.4 billion into private US biotechnology firms in the three months ending March 31, accounting for about 40 percent of the $3.7 billion that the companies raised in the period overall, according to data provider PitchBook. 

P&G slogs through ‘difficult’ markets for sales growth: WSJ reports, Procter & Gamble reported weak sales growth in its latest quarter as the company continues to face challenges in its shaving business and other categories being disrupted by more nimble competitors. 

Procter & Gamble is buying Merck's consumer health business, giving P&G new vitamin and food supplements to add to its over-the-counter business. The deal is worth $4.2 billion.

Buying market share is a not a positive.

Sears opened its first-ever store in Chicago 93 years ago. This summer, it will close its last department store in the city.

Deck: Future of Retail: http://bit.ly/FutureofRetailMarcRossApril2018

More than 100 million people globally are now paying for Amazon Prime.

Netflix plots $1bn European investment drive: FT reports, the streaming service will double production budget in the region in 2018.

Netflix, which has clashed with movie theaters, may be ready to get into owning cinemas to screen its original work.

TRENDS

Earbuds and tastebuds: Does chocolate taste better if you're listening to Pavarotti? Ad Age looks at how marketers are pairing music and sounds with different tastes. http://bit.ly/2EXEJPU

The loos at Lollapalooza: Music festivals are using RFID bracelets and anonymized data to track and improve the user experience, like shortening the lines at the porta-potties. http://bit.ly/2qGm4Dl

The ultra-cheap phones even iPhone users will crave: WSJ reports, flip phones, and candy bars are back, with low prices, great battery life, and some modern conveniences. https://on.wsj.com/2J5FFV2

CULTURE

AP: 420's long, strange trip to pot holiday began in California http://bit.ly/2HfExgS