US antitrust tsars Lina Khan and Jonathan Kanter are scaring corporate executives with their willingness to sue to block deals that promote rampant consolidation, according to the FT. The Federal Trade Commission’s recent decision to file a lawsuit to block Amgen's $28.3bn acquisition of Horizon Therapeutics surprised many in the industry. So far, mergers challenged or blocked by the duo (with the help of friendly regulators in the UK and EU) include Microsoft’s $75bn acquisition of gaming company Activision Blizzard, Lockheed Martin’s planned $4.4bn acquisition of US missile products supplier Aerojet Rocketdyne, and the $2.2bn merger of Penguin Random House and Simon & Schuster. The duo have said they will try to sue to block deals even if they know they might lose. Vince McMahon, the founder of World Wrestling Entertainment, relied on merchant bank Raine Group for strategic advice and its help in selling his company. Raine will earn $65m from the $21bn transaction.
Uncertainty over the US debt ceiling is set to continue as traders brace for April inflation data for the eurozone, with European markets predicted to open lower. UBS Group AG is poised to release its financial statement detailing the $17bn hit it took from the takeover of Credit Suisse Group AG. Meanwhile, BlackRock is requesting its staff return to the office at least four days a week as pandemic restrictions are lifted globally. The recession in Japan has lifted as the country rebounds post-pandemic to offset global economic challenges, while Warren Buffett increased his influence in Capital One Financial Corp.
Representative James Comer of Kentucky has been criticised by a first-term Democrat at a meeting of the House Oversight Committee for losing track of an informant connected to allegations of “criminal activities” by the Biden family. Comer had previously stated that he couldn't locate the informant, who had allegedly provided information about US President Joe Biden's actions whilst vice president. Criticism has been levelled at Comer for using his power as chair of the committee to investigate the family without sharing any further information or specifics of their purported activities.
The pandemic has created the wrong sort of decoupling for emerging markets, hurting their performance over the past three years, warns John Authers in Bloomberg Opinion. However, he added "none of this means that there won’t be a decoupling; but it’s not going to be the panacea that many have long wanted it to be". If China becomes the pole of what is effectively a different financial system, reshoring and deglobalisation will create opportunities in the emerging world, but it will also make them much harder to take advantage of, warns Authers. Nevertheless, these markets are experiencing some signs of recovery after a decade of underperformance, following the brief bull market which came to an end in the Global Financial Crisis in 2008.
Meanwhile, there is concern over the budget strategies of the US. Ted Decker, CEO of Home Depot, expects comparable sales to drop as much as 5% this fiscal year — the first annual decline in 14 years. Despite problems so far being driven by unusual conditions such as the price of lumber falling, according to Authers, if the recession risks loom larger over the US economy, and workforces normalize with new return-to-office policies, then support will fade for such firms that have been doing so well during the pandemic’s economic conditions. This would spell the end of the trends that Authers calls the home-building boom, e-commerce and working from home/home improvement.
US President Joe Biden cancelled his planned visit to Australia, following a decision to reduce the length of his Asia trip in order to focus on negotiations with the Republican party over raising the federal debt ceiling. His decision forced the cancellation of the Quad leaders summit, scheduled for 20 October in Sydney. The meeting would have brought together presidents Biden and Fumio Kishida of Japan, Australian Prime Minister Anthony Albanese and India's Prime Minister Narendra Modi to discuss regional security and other issues.
Biden to leave Wednesday for shortened overseas trip to Japan
CNN
23-05-17 09:07
US President Joe Biden’s trip to Asia has been cut short due to the impasse over raising the US debt ceiling, which has the potential to cause an unprecedented first-ever default if it is not resolved by November. The debt issue contrasts with Biden’s plan to strengthen American alliances, tackle China’s influence, and show his stamina for another term in office. Biden is heading to Japan, but will miss out on the pre-planned second half of his trip, which included visiting Australia and Papua New Guinea. Meanwhile, a summit of the Quad leaders scheduled to take place in Sydney has been cancelled as Biden will not be attending. There remain concerns of a global economic meltdown if the borrowing limit stalemate is not resolved. Additionally, it could go against the functional democracy kind of image that Biden has sought to present to the world in his attempt to counter the rise of authoritarian regimes.
European stocks fell on Wednesday, with investors spooked by policymakers in Washington failing to agree on a deal to increase the US’ spending limit. US futures were holding gains, with S&P 500 and Nasdaq 100 contracts tracking up 0.2% and 0.1% respectively prior to the New York open. However, Jefferies’ Mohit Kumar warned that markets will start to price in debt ceiling concerns toward mid-June. Treasury Secretary Janet Yellen has warned the US could default on its debt as early as next month if lawmakers fail to reach a compromise. The dollar index was up 0.3% on Tuesday’s close and bond yields edged higher as uncertainty grew over the US situation.
Leaders from Japan, South Korea and the US will discuss strengthening ties as a response to North Korea and Chinese assertiveness during a meeting today on the sidelines of the Group of Seven (G7) summit in Hiroshima. Top of their agenda will be North Korea's growing nuclear and missile threat, with tensions increasing after a string of missile tests, including five ballistic missile launches last month. The three countries have doubled down on deterrence measures, such as the linking of radars for tracking North Korean missiles, and will discuss details of the real-time intelligence-sharing plans during their meeting in Hiroshima. They will also discuss economic security, strengthening supply-chains and "friendshoring" while looking to reduce dependence on China for critical materials. Earlier this month, officials from Tokyo and Seoul held their first consultation on economic security.
US President Joe Biden has cancelled plans to visit Papua New Guinea (PNG), after announcing that he will focus on debt limit talks at home. Biden was expected to make a brief three-hour stopover as part of his tour of the region, making it the first visit by a US president to any Pacific Island nation. His planned trip coincided with a meeting of the Indian prime minister and Pacific Islands leaders to discuss economic cooperation, which will still take place. China has begun to exert influence in the Papua New Guinea region though providing infrastructure and services.
A man entered the home of US President Joe Biden's national security adviser, Jake Sullivan, in the middle of the night without being detected by his Secret Service detail, a major breach that is under investigation. The individual appeared confused and was asked to leave by Sullivan. There were no immediate reports of a motive or arrest, and Sullivan was physically unharmed. The Secret Service has launched a mission assurance investigation.
Democrats and the majority of voters believe that President Joe Biden, who will turn 81 in November, should not run for a second term. However, those questioning Biden's age must consider that the vice-president - Kamala Harris - could also attract scrutiny when she runs. Democrats and much of the “mainstream” media are working off an invisible memo that tells them to avoid talking about Biden's age, however this cannot last. Biden must now elevate Harris's role to become a bigger factor next year and focus on key issues that will appeal to voters.
US President Joe Biden will continue discussions with congressional leaders over America's debt limit after his visit to the G7 summit this week. The President, who had a successful hour-long meeting with House Republican Speaker Kevin McCarthy this week, plans to telephone top lawmakers during his trip to Japan, said White House spokeswoman Karine Jean-Pierre. The Republican bullet points including health care cuts and increased poverty in parts of the country, which the Democrats oppose. Biden hopes to reach a bilateral budget agreement next week that can be signed into law.
US President Joe Biden’s decision not to visit Australia for the Quad meeting risks sending a damaging message to the Asia-Pacific region about the US’ commitment to the area as it competes with China for influence. Biden cancelled his visit to Australia to attend Washington’s regular debt-ceiling and attend a G7 summit in Japan. His decision was influenced by the US Treasury warning it could run out of money to pay bills by June 1. Far more important than any hurt feelings caused, Australia’s hurt over Biden’s withdrawal from the Quad meeting and decision to snub the country along with Papua New Guinea provides weight to arguments that arrangements such as AUKUS and the Quad rely on US domestic politics and are not treated with due seriousness. Biden’s decision to cancel the visit was “a calculated snub to a friend and a gift to a rival,” and was a “slap in the face” to Australian Prime Minister Anthony Albanese who had staked much on the visit.
The US House Natural Resource Committee will discuss a plan this week to protect California’s giant sequoias from fires and climate change. The Save Our Sequoias Act is a bipartisan piece of legislation that offers over $300m and further emergency protection options for US Forest Services to tackle the effects of climate change and wildfires on the world’s largest trees, which are going extinct. However, many Democrats and environmental advocacy groups have opposed the bill, stating that the plan could weaken environmental laws such as the National Environmental Policy Act (NEPA). The legislation would allow environmental projects to move ahead under emergency conditions before being assessed for their potential environmental impact. The outcome of the vote will directly impact the future of protecting the Sequoia National Forest and the balance between environmental protection and climate change mitigation.
Texas magistrate judge Irma Carrillo Ramirez has been announced as the Biden administration's nominee to the 5th US Circuit Court of Appeals after being recommended by Texas' two Republican senators. If confirmed, she would be the first Hispanic woman and only active Hispanic judge on the court. Her nomination is seen as an example of how Democrats and Republicans can work together to advance judicial nominees. Republicans have previously been accused of exploiting the "blue slip" tradition to stall nominations, a practice that Democrats are urging the Senate to do away with.
US President Joe Biden believes that a potential US debt default can be avoided by making a deal with Congress. Biden shared that his recent meeting with Kevin McCarthy, Republican Speaker, was “civil and respectful". He said that all parties understood the “consequences of the failure to pay our bills”. Janet Yellen, Treasury Secretary, has already warned that a default could happen as early as 1 June if Congress did not take any action to increase the borrowing limit. The fiscal stand-off had become a critical threat to the global economy and finance systems. Biden shortened his international trip to Japan to work on the debt limit negotiations in Washington. The White House and Republicans in Congress are discussing a fiscal deal with limits to discretionary spending over the next several years. Republicans are putting pressure on adding new work requirements for the government's large anti-poverty schemes.
Biden off to Japan for Group of Seven summit, says there’s ‘work to do’ on global stage
The Toronto Star
23-05-17 17:05
US President Joe Biden has warned that there is “work to do” on the global stage, amid high-stakes negotiations in Washington over a federal default and geopolitical concerns over Russia’s invasion of Ukraine and China’s assertiveness in the Pacific. Although Biden pledged to remain in contact with negotiators in the capital while travelling overseas, his trip has already been cut short. Speaking before leaving the White House, Biden stated that he had made “clear America is not a deadbeat nation”, amid concerns that a federal default would not just spark a deep recession but could also weaken its standing on the international stage.
President Joe Biden has gone to Japan for a summit with allied powers focusing on issues such as Russia's invasion of Ukraine and China’s actions in the Pacific. As he departed Washington on Wednesday, talks were ongoing to head off a federal default. Biden is pledging to remain in contact with negotiators in Washington while conducting international diplomacy. Biden had also planned to visit Papua New Guinea and Australia amid the showdown over raising the federal debt limit, but has scrapped these plans. The president is expected to attend the annual G7 summit in Hiroshima to discuss global economic issues, climate change and development.
A group of 25 US states led by Republicans has asked a federal judge in Texas to scrap a Biden administration rule allowing socially conscious investing by retirement plans. Lawyers contend that it will imperil Americans' retirement savings. Congress voted in March to repeal the rule, but Democratic President Joe Biden rejected the proposal in the first veto of his presidency. The Department of Labor says the rule failed to account for the positive impact of ESG investing can have on returns. The case is with U.S. District Judge Matthew Kacsmaryk, a conservative appointee of former Republican President Donald Trump.
Leaders from the Group of 7 (G7) countries are to meet and discuss the global economy this week at the annual G7 summit in Japan. However, the US’ nearing debt default of two weeks may be cause for concern. President Joe Biden hopes to promote an optimistic tone after the White House sent two special aids to negotiate with Republicans to raise the debt. Upcoming discussions are also set to focus on Ukraine and China. European allies are pressing the US administration to give American-made F-16 jets to Ukraine after gaining territory around the city of Bakhmut. Nevertheless, the Biden administration is worried about escalating the situation and the potential costs and time issues that would arise. Discussions on China will focus on handling the threat of its economic, technological and military rise. The summit will also include talks on how to stabilise the global economy and limit devaluations of currencies.
