Election

November 9, 2016

Trump means Trump

The result was due in the early hours of Wednesday morning in the UK. It took longer to become definitive. At 7:40am Hillary Clinton conceded defeat and Donald Trump exceeded expectations, except…

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China reserves firepower for Trump trade battle
China could further ratchet up pressure on American companies in retaliation for US President Donald Trump’s tariffs as it holds back some firepower for negotiations between the world’s two biggest economies in an escalating trade war. Beijing has already hit back, increasing levies on US goods by 34 per cent and taking a raft of other measures, including export bans on rare earths and an antitrust probe into the Chinese subsidiary of US chemical giant DuPont. Unlike the previous two rounds of retaliation, which targeted specific categories of US imports, this time Beijing announced a blanket tariff increase to come into effect from April 10, a day after America’s “reciprocal” levies come into effect. “The Chinese reaction to the first two tariff hikes was moderate and patient but we found out patience wasn’t helpful,” said Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing. But while the “situation is bad; it could be worse”, said Cory Combs, associate director of Beijing-based consultancy Trivium China. “Beijing has strategically left itself space to continue ratcheting up retaliation wherever US or others’ actions threaten its economic interests.” Financial Times, April 7

Chaos and uncertainty after Trump’s tariff rollout
Wall Street’s elite grappled with anger, anxiety, frustration and fear over the weekend in response to President Trump’s announcement of sweeping new tariffs, which top Trump aides raced to defend in various news media appearances. Some of his advisers said that they had already heard from foreign nations seeking to negotiate a deal on trade. Financial markets were hit hard by another wave of selling at the start of trading in Asia this morning, with investors and economists grappling with rising odds of a severe economic downturn. Stocks in Japan plunged over 8 per cent, while South Korea’s market tumbled about 5 per cent. The price of Bitcoin has plunged 10 per cent since the tariffs were announced, dropping below $78,000 last night, and US oil prices fell by 15 per cent. Yet Trump’s top economic advisers dismissed the turmoil, insisting that the trade war would ultimately improve America’s economic fortunes. Speaking to reporters yesterday, Trump said that he would not reverse them until the trade deficits that the US runs with China, the EU and other nations disappeared. “Unless we solve that problem,” he said, “I’m not going to make a deal.” New York Times, April 7

Rules on UK car firms relaxed ahead of 2030 petrol vehicles ban
The government has announced a relaxation of electric vehicle sales targets to help the car industry in the face of recent tariffs from the US. A ban on producing new petrol and diesel cars will still come into effect in 2030, but manufacturers will now have more flexibility on annual targets as well lower fines. Transport Secretary Heidi Alexander told BBC Breakfast its changes were not a "silver bullet" but part of the solution to responding to US tariffs. UK opposition parties said Labour's measures would not be enough to boost the car industry. President Donald Trump has imposed a 25 per cent levy on cars imported to the US, which is a major export market for the UK motor industry. They came into force last week and are separate to a 10 per cent tax on nearly all UK products announced by President Donald Trump on Wednesday. BBC news, April 7

Areas receiving levelling-up funds show smaller Reform UK vote share, study finds
Areas that received money from the last government’s much-criticised levelling up fund tended to have lower votes for Reform UK in the general election, a study has found, indicating that projects delivering quick results may hold back support for populism. The study by the Social Market Foundation thinktank, billed as the first to examine a mass of data factors linked to support for Reform at the level of individual seats, identified a series of factors likely to make voters more likely to back Nigel Farage’s party. Some were common to studies about populism in other countries, for example a correlation between a lower number of local voters having degrees and above-average support for Reform. The party also tended to do well in places with a large white population, along with areas where this was becoming proportionally lower due to newer arrivals. Higher levels of crime were also closely associated with Farage’s party doing well. The Guardian, April 7

NHS: health workers will be sent house to house to cut sick leave
Healthcare workers will be sent from house to house in an NHS scheme to reduce the number of people who are signed off work on sick leave. The programme is part of efforts to fix problems such as unemployment, debt and bereavement that are adding to pressures on the state sector. It will be rolled out in 25 areas in England. Wes Streeting, the health secretary, said early versions of the scheme showed “really encouraging signs” in cutting the number of heavy users of services, whom he called “frequent flyers”, filling up A&E departments. Workers on the project, which could form part of the government’s 10-year plan for the NHS, have likened it to the return of the family doctor paying house calls. Supporters of the programme said some people might see it as “the nanny state on steroids” but the concept, which began in Brazil, could transform Britain’s fortunes. The Times, April 6

Groundbreaking research on multiple sclerosis wins 'Oscars of science'
An American neurologist and an Italian epidemiologist whose work revolutionized the treatment of multiple sclerosis on Saturday won a prestigious Breakthrough Prize, the award nicknamed the "Oscars of science". Stephen Hauser and Alberto Ascherio were recognized for their decades researching the debilitating neurodegenerative disease, which affects nearly three million people worldwide and was long considered an impenetrable enigma. France 24, April 6

South Korea’s Constitutional Court rules to oust impeached president Yoon
South Korea's Constitutional Court on Friday upheld President Yoon Suk Yeol's impeachment over his disastrous martial law declaration, voting unanimously to strip him of office for violating the constitution. Yoon, 64, was suspended by lawmakers over his December 3 attempt to subvert civilian rule, which saw armed soldiers deployed to parliament. He was also arrested on insurrection charges as part of a separate criminal case. His removal triggers fresh presidential elections, which must be held within 60 days. "Given the serious negative impact and far-reaching consequences of the respondent's constitutional violations … (We) dismiss respondent President Yoon Suk Yeol," said acting court President Moon Hyung-bae. The decision was unanimous by all eight of the court's judges, who have been given additional security protection by police with tensions high and pro-Yoon supporters rallying in the streets. France 24, April 4

Billionaires lost $208bn yesterday as stocks plunged
The world’s 500 richest people saw their combined wealth plunge by $208bn yesterday, according to Bloomberg calculations. The drop is the fourth-largest one-day decline in the Bloomberg Billionaires Index’s 13-year history, and the largest since the height of the Covid-19 pandemic. The bosses of some of the largest US tech firms saw billions wiped off their wealth. Meta founder Mark Zuckerberg was the biggest loser in dollar terms, with the social media company’s 9 per cent slide costing its chief executive $17.9bn, Bloomberg reports. Jeff Bezos lost $15.9bn in personal wealth, as Amazon shares plunged 9 per cent yesterday. Elon Musk lost $11bn, taking his losses so far this year to $110bn. The Guardian, April 4

Volkswagen to add ‘import fee’ to US prices
Volkswagen is planning to add an “import fee” on vehicles shipped into the United States in response to President Trump’s 25 per cent tariffs. The German carmaker has also temporarily halted rail deliveries of vehicles from Mexico and will hold at port cars arriving by ship from Europe, according to a memo seen by The Wall Street Journal. Volkswagen has told dealers that it would give more details by mid-April on pricing strategies for tariff-affected cars, and plans to begin allocating those vehicles to showrooms by the end of the month. Trump’s 25 per cent auto tariffs will affect more than $460 billion worth of imported vehicles and car parts annually, according to an analysis of tariff codes included in a federal register notice. Germany exports more cars and parts to the US than any other country in the European Union. “We want to be very transparent about navigating through this time of uncertainty,” Volkswagen said in a statement to the newspaper. The Times, April 3

Cross-Channel rail owner to offer incentives for new operators
The owner of the high-speed rail line from London to the Channel Tunnel has offered a price cut to encourage the launch of more international rail services to and from its London St Pancras terminus. London St Pancras Highspeed unveiled several financial incentives on Friday available to any operator that launches rail services between London and mainland Europe. Several groups in recent months have announced plans to launch services between London and the continent. Eurostar, the only existing operator, has had a monopoly on the services, which mostly link London to Paris and Brussels, since international passenger services started in 1994. LSPH, formerly known as HS1, said the discounts would be available either to new entrants or to Eurostar if it launched new services. Robert Sinclair, LSPH chief executive, said: “Never before in the history of high-speed rail in the UK have we seen this much interest in growth, and the potential for competition.” Financial Times, April 4

Ship owner takes legal action over North Sea crash
The owners of a container ship have filed a legal claim against the owners of a tanker that it struck in a crash in the North Sea. The Stena Immaculate, a US-registered tanker carrying aviation fuel, was anchored 16 miles (26km) off East Yorkshire when it was hit by the Portuguese-flagged Solong on 10 March. Court records indicate that a legal claim was filed at the Admiralty Court on Thursday by "the owners and demise charterers" of the Solong against "the owners and demise charterers" of the Stena Immaculate. It follows a separate legal claim filed against the owners of the Solong - Ernst Russ - on Monday by the co-owners of the Stena Immaculate, Stena Bulk and Crowley. No further details about either claim are currently available, with Stena Bulk having been approached for comment. BBC news, April 4

Bruce Springsteen’s ‘Lost Albums’
Fans have long known that Bruce Springsteen withheld songs throughout his career. Now, he is opening his vault. Springsteen announced yesterday that he would release “Tracks II: The Lost Albums” in June. Of the 83 songs featured on these seven albums, 74 have never been released in any form. Among them are working tapes from Springsteen’s fruitful period before “Born in the USA.” and a hip-hop-influenced album from the early 1990s. New York Times, April 4

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