Saturday, 17 March 2018

Weekend Update 17/03/2018 Russia-China v The Wobbly West.


"I must follow the people. Am I not their leader?"

Benjamin Disraeli.

The big news this weekend is the expected re-election of President Putin in Russia. No other outcome is possible, although with the west in full hue and cry blaming President Putin personally for the nerve agent hit in Salisbury on March 4th, most Russians would probably vote for President Putin even if the election were truly free and fair.  Come Monday the world will have President Xi for life in China, and at least another 6 years of President Putin in Russia, with neither president about to play rollover for the west.

Offsetting that combination in the west we have the chaotic Trump Presidency in increasingly erratic trade war Washington. A greatly weakened Chancellor Merkel almost leading Germany. The very weak governments of the UK and France, plus the still to be formed government of Italy, and the amusing Trudeau Presidency in Indo-Canada. Then there is the unreformed, unreformable rump-EUSSR, on the receiving end of Trump’s Great Trade War, and busy erecting trade barriers with GB, its 3rd, 4th or 5th largest trade customer, depending on who’s counting and how.  What could possibly go wrong?

Below, some of the interesting news on this St Patrick’s Day. We’ll need all of the luck of the Irish, a four leaf shamrock and then some, to escape 2018 without a repeat of 2008, or far worse, war.

"We hang the petty thieves and appoint the great ones to public office."

Aesop.

March 17, 2018 / 2:43 AM

China's parliament re-elects Xi Jinping as president

BEIJING (Reuters) - China’s largely rubber-stamp parliament on Saturday unanimously re-elected Xi Jinping as the country’s president.

The vote was witnessed by journalists inside central Beijing’s Great Hall of the People.

The legislature is packed with delegates loyal to the ruling Communist Party meaning Xi’s re-election was never in doubt. On Sunday parliament voted to amend the constitution to remove presidential term limits, meaning Xi can stay indefinitely.

Sessions Fires FBI Official McCabe Two Days Before He Was to Retire

By Chris Strohm
Updated on 17 March 2018, 04:21 GMT
Attorney General Jeff Sessions fired the FBI’s former deputy director, Andrew McCabe -- a favorite target for President Donald Trump and Republicans -- on Friday night, two days before he was to retire.

Sessions made the politically explosive decision after the FBI’s Office of Professional Responsibility recommended that McCabe be dismissed for not being forthcoming about authorizing discussions with a reporter about a pending investigation. Sessions said he relied on internal assessments that McCabe lacked candor on multiple occasions.

The move by the attorney general appeared to open a new episode in the criminal investigation into Trump being led by Special Counsel Robert Mueller.

McCabe responded to the decision with a combative statement saying he was the target of a political attack by Trump and that he has knowledge of events that took place after Trump fired FBI Director James Comey in May.

McCabe said he had been "singled out and treated this way because of the role I played, the actions I took, and the events I witnessed in the aftermath of the firing of James Comey. The release of this report was accelerated only after my testimony to the House Intelligence Committee revealed that I would corroborate former Director Comey’s accounts of his discussions with the president."

Michael Bromwich, a former Justice Department inspector general who is representing McCabe, said the efforts to investigate and eventually fire McCabe came after disclosures that McCabe would be a “corroborating witness” against the president.
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March 16, 2018 / 6:10 PM

Exclusive - European powers propose new Iran sanctions to meet Trump ultimatum

BRUSSELS/PARIS (Reuters) - Britain, France and Germany have proposed fresh EU sanctions on Iran over its ballistic missiles and its role in Syria’s war, according to a confidential document, in a bid to persuade Washington to preserve the 2015 nuclear deal with Tehran.

The joint paper, seen by Reuters, was sent to European Union capitals on Friday, said two people familiar with the matter, to sound out support for such sanctions as they would need the support of all 28 EU member governments.

The proposal is part of an EU strategy to save the accord signed by world powers that curbs Tehran’s ability to develop nuclear weapons, namely by showing U.S. President Donald Trump that there are other ways to counter Iranian power abroad.

Trump delivered an ultimatum to the European signatories on Jan. 12. It said they must agree to “fix the terrible flaws of the Iran nuclear deal” - which was sealed under his predecessor Barack Obama - or he would refuse to extend U.S. sanctions relief on Iran. U.S. sanctions will resume unless Trump issues fresh “waivers” to suspend them on May 12.

“We will therefore be circulating in the coming days a list of persons and entities that we believe should be targeted in view of their publicly demonstrated roles,” the document said, referring to Iranian ballistic missile tests and Tehran’s role in backing Syria’s government in the seven-year-old civil war.

The steps would go beyond what a U.S. State Department cable seen by Reuters last month outlined as a path to satisfy Trump: simply committing to improving the nuclear deal.

It also reflects frustration with Tehran. “We’re getting irritated. We’ve been talking to them for 18 months and have had no progress on these issues,” a diplomat said.

European Union foreign ministers will discuss the proposal at a closed-door meeting on Monday in Brussels, diplomats said.
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March 16, 2018 / 7:16 PM

London court rules UK spy behind Trump dossier must give evidence in U.S. libel trial

LONDON (Reuters) - Former British spy Christopher Steele, who compiled a “dossier” of allegations linking U.S. President Donald Trump to Russia, must give a deposition in a U.S. libel case, lawyers for the Russian businessman involved said on Friday.

Businessman Aleksej Gubarev is suing the Buzzfeed website, which published the dossier in January last year, for libel in a Florida court over claims made about him and his companies and as part of his case his lawyers asked to take evidence from Steele.

Last November, a British court ruled Steele should undergo lengthy pre-trial questioning and in February his lawyers sought to have that order quashed, arguing it could put his sources at risk and harm UK national security

On Friday, the High Court in London agreed Steele should provide a deposition which would be used in the Florida trial, Gubarev’s lawyer said.

“The court has rightly ordered that Christopher Steele must now answer under oath the relevant and appropriate questions to be put to him in deposition. I expect the deposition to take place in the next eight weeks,” said lawyer Steven Loble.

Sources close to Steele said the judge had said the questioning had to be limited to avoid anything that could expose his informants.

Steele, a former MI6 officer, authored the report which alleged Moscow had attempted to interfere in the 2016 U.S. election and potential collusion between Russia and Trump, along with other unverified and salacious claims about the president.

Trump has described the report as “bogus” and Moscow has repeatedly rejected accusations of interference in the election.
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In markets news, higher interest rates are here to stay.

The World Economy Risks Turning Too Hot to Handle

By Enda Curran and Rich Miller
15 March 2018, 23:00 GMT
The world economy risks growing too fast for its own good.

Group of 20 finance ministers and central bankers meet next week in Argentina amid the broadest and strongest economic upswing since 2011, with President Donald Trump’s tax cuts adding a dose of accelerant. They convene days after the Organisation for Economic Co-operation and Development raised its forecasts to show global growth of 3.9 percent this year and next.

For policy makers and investors, the key questions are how much faster can the world grow -- and do they even want it to if overheating means an inflationary boom is followed by another bust.

Global growth has only matched or bettered 3.9 percent 8 times since 1990 and HSBC Holdings Plc notes every synchronized upswing since then presaged an abrupt shock. The peak of 5.6 percent in 2007 was followed by the financial crisis a year later.

When lots of countries are growing strongly, the global economy is at its most vulnerable, thanks to heightened interest rate and financial risks,” said Stephen King, senior economic adviser at HSBC.

In a study of 50 economies published last month, King observed that the credit-crunch recession hit the U.S. in 1990 after a period of robust global demand and then bond markets collapsed in 1994 following another growth spurt. The next boom in 1997 came before the Asia crisis and then the world was buoyant from 2004 to 2007 until the worst recession since the Great Depression.
Signs are already appearing that activity is now looking toppish as the Federal Reserve and other central banks tighten monetary policy, China curbs borrowing and Trump implements tariffs. 
Citigroup Inc. calculates data in major economies are currently undershooting forecasts by the most since September and measures of manufacturing confidence appear to be cresting, albeit at lofty levels.
“Even though the sun still shines in the global economy, there are more clouds on the horizon,” International Monetary Fund Managing Director Christine Lagarde said in a blog post addressed to G-20 policy makers. “Think of the growing concerns over trade tensions, the recent spike in volatility in financial markets, and more uncertain geopolitics.”
The fear of a trade war will be high on the agenda in Buenos Aires, with Bloomberg Economics estimating such an event could wipe $470 billion off the world economy by 2020.
Read more on the risks associated with a global trade war
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March 15, 2018 / 5:33 PM

EU ready to hit big U.S. tech firms with 3 percent turnover tax

The proposal, expected to be adopted next week and still subject to changes, updates an earlier draft which envisaged a tax rate of between 1 and 5 percent.
The tax, if backed by EU states and lawmakers, would only apply to large firms with annual worldwide revenues above 750 million euros (£662.2 million) and annual “taxable” revenues above 50 million euros in the EU.
The threshold for EU revenues has been raised from 10 million euros initially foreseen to exempt smaller companies and emerging start-ups from the tax.
Large U.S. firms such as Uber, Airbnb and Amazon could also be hit by the new levy, which would apply across the 28 EU countries.
Big tech firms have been accused by large EU states of paying too little tax in the bloc by re-routing some of their profits to low-tax member states like Ireland and Luxembourg.
While an earlier version of the draft seen by Reuters mentioned several companies, the latest proposal contained no such references.
Services that will be taxed are digital advertising, which would capture both providers of users’ data like Google, and companies offering ad space on their websites, like popular social media such as Facebook.
The tax would be also be levied on online platforms offering “intermediation services,” a concept under which the Commission includes gig economy firms such as Airbnb and Uber. Digital market places, including Amazon, would also be within the scope of the levy.
Companies with thinner margins, like Amazon, which often operate at a loss would be hit hard by a tax on turnover, whereas they are largely exempt from taxes on profits.
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Finally, EV comes to the old familiar black London taxi.

Electric Black Cabs Are Taking Over in London

The six seater has wifi, air conditioning, a glass skyroof and no smelly diesel fumes.
By Robert Hutton
It takes a lot to impress a London cabbie, but as Neville Robertson pulls up to a sea of taxis at a stop light next to Buckingham Palace, he’s the center of attention.

The driver next to him winds down his window and shouts, “you like it?” Robertson, 53, knows what he’s asking about. “It’s good!” he answers. He gets a skeptical grimace in response.

The drivers are so interested in Robertson’s car because they know it’s their future. Robertson’s is one of the first vehicles delivered to meet the city’s decree that all new taxis have to be electric. It’s a TX City, built by the London Electric Vehicle Company, a subsidiary of China’s Geely Automobile Holdings Ltd. There are 34 on the road at the moment, with 20 a week rolling off the line.

On the outside, it’s a little boxier than a traditional London taxi but recognizable nonetheless and it meets the regulatory requirement of a 25-foot turning circle—small enough to negotiate the roundabout at the entrance to the Savoy Hotel. There’s still an engine there, though it looks tiny in the space: The sole function of the 1.5 litre petrol motor is to charge the batteries if they get low.

Those batteries have been stored along the floor and then under and behind the rear passenger seat. There’s no luggage space at all, but even heavily laden travelers rarely bother to use the trunk of a London cab.

The passenger compartment remains familiar: a three-wide bench and then fold-down seats opposite: three of them, meaning the car can now carry six people. There are fixings for a wheelchair and a built-in ramp under the door. It’s kitted out as a mobile office, with a socket for a laptop, USB ports for other devices, and wifi. And you might be able to get some work done since you’re no longer jostled by every bump in the road.

But sit down and you’re immediately struck by the biggest change: The huge clear roof panel. “It’s quite a nice effect at night,” says Robertson, who has been a chauffeur for 30 years. “It will be excellent for the Christmas lights.”

When Robertson pulls away, you notice the other difference. London black cabs are loud. Even when they’re not moving, you can hear their diesel engines chug away. The new copy isn’t just quiet, it’s silent. There aren’t many more ways to describe the total absence of noise, but try this: At one point as we drove past St James’s Park, I swear I heard birdsong. 
  1. The taxi is projected to travel more than 70 miles on a charge, and a typical driver covers 120 miles a day. A public charger in 45 minutes can add 50 miles of range, according to the manufacturer.

"Foreign Aid: taxing poor people in rich countries for the benefit of rich people in poor countries."

Bernard Rosenberg.


And next, a last word from Jason in Lake Tahoe. Making “sense” of US media.

American Media’s Fixation on All Things Trump Obscuring Relevant News

N. Jason Jencka March 17th, 2018 3:22 am EST 

The first year of the Trump presidency has doubtlessly been a ratings boon to the news outlets that have breathlessly covered each declaration, gaffe and tweet with fervid vigor. Against a backdrop of cord-cutting that saw the television behemoth NFL football lose viewers in each of its three weekly primetime slots with NBC drawing the fewest viewers since 2008, cable news has seen strong ratings growth. This growth has occurred across the televised political spectrum with left-leaning MSNBC seeing 48% ratings growth in 2017 while conservative bastion Fox News saw 8% growth. At first glance these figures suggest that American viewers are becoming more informed about the world around them when in actuality they are feasting on breathless coverage of the global docudrama that is the Trump administration. Whether analyzing for the umpteenth time the latest “revelation” regarding potential Russian influence in the 2016 election or reporting the gaudy details of the Stormy Daniels saga, anchors and pundits feast on Presidential tweets ad-nauseam at a cost of lost coverage of relevant scientific developments and happenings in global markets beyond the Dow 30. 

The death of legendary theoretical physicist and warrior against ALS Stephen Hawking gets only a brief mention compared to exhaustive discussion of the details of Mr. Trump’s private affairs. If there is to be a reasonable expectation of the public discourse in the U.S. to emerge from its present shallow gutter, those making the decisions of what news to cover on major networks and how extensively can and must take the lead.
Sources:
Stephen Battaglio, Los Angeles. Times, December 3oth 2017


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