Weekend Papers Summary
* NY TIMES (Saturday): Following Donald Trump’s firing of FBI director James Comey, law enforcement officials became so concerned by Trump’s behavior that they began investigating whether he was working on behalf of Russia against American interests; Trump opted against declaring a national emergency to fund his border wall, and now finds himself boxed in as he searches to end a political stalemate with Democrats; After a series of conflict of interest scandals, New York’s Memorial Sloan Kettering hospital will require executives to curb ties to the pharmaceutical industry, and will conduct a wide-scale review of other policies; The government shutdown is starting to affect air travel as a growing number of security agents refuse to work for no pay, though for now the impact on passengers has been limited; An MIT study found that dense cities that once offered better pay for low-skilled workers, as well as better kinds of jobs, no longer offer such economic advantage for workers without college educations;
(Sunday): The Veterans Administration will shift billions of dollars into private care, which could mean shorter waits, more choices, and fewer requirements for co-pays, but could curb other resources for the agency; A White House strategy to compete with China’s booming infrastructure presence in Africa has made little ground, but it’s unclear whether Beijing’s Belt and Road Initiative even poses a real threat to the U.S.; + Huawei: Company fired an employee who was arrested in Poland on charges of spying for the Chinese government, saying in a statement on Saturday that he has brought disrepute to the company; Sunday Business: Some entrepreneurs are rejecting venture capital, claiming there is a connection between VCs pushing too hard for growth and the tech industry’s myriad crises, or that VC expectations are too high.
* WSJ (Weekend): Poland’s arrest of a Huawei sales director on charges of espionage for China raises stakes over Western allegations the telecom equipment giant is a spying tool for Beijing; Japan revived its economy despite an aging demographic by encouraging the elderly and women to work and breaking a longstanding taboo against immigration; +/- AAPL: Tech giant will release three new iPhones this fall, including a successor to the struggling XR, but will stick with LCD technology already in the pipeline ahead of a planned switch to OLED in 2020; New U.S. regulations will allow railroads to operate passenger trains that can travel at speeds of as high as 220 mph, but for now no track in America can handle that kind of velocity; When he was a Fed governor in 2012, chairman Jerome Powell worried the bank’s bond purchases were distorting markets, and encouraged his colleagues to end the stimulus program; The current flu season appears less severe than the 2017-2018 season, which was particularly bad, but 7.3M people have still fallen ill so far, according to CDC data; The Navy will expand its role in the Arctic as climate change opens up more ocean waterways and the U.S. vies with Russia and China for influence in the far north; New York Democratic senator Kirsten Gillibrand is set to announce a 2020 presidential run, and is hiring key staff members and planning a trip to Iowa; Democratic-led states are quickly expanding public healthcare proposals in the wake of their November midterm victories, but their efforts face criticism from Republicans; +/- BA: The SEC and the Commerce department are looking into the company’s relationship with Global IP, a satellite startup backed by China’s China Orient Asset Management; H.O.T.S.: Legacy credit card companies are likely to retain their market position despite the proliferation of new ways to pay for things; Following disappointing sales of its “Destiny” franchise, ATVI needs to show investors it has potential successes in the pipeline; “Expectations have been lowered for banks, but perhaps not by enough as they head into earnings season.”
* FT (Weekend): Two Chinese retailers, JD and Suning, are reducing prices of the AAPL iPhone 8, 8 Plus, and XR in a bid to boost sales, though prices haven’t changed on Apple’s website; Donald Trump caught the technology and financial services industries off guard with a statement that he was preparing to make substantial changes to the visa regime for highly skilled workers; “The sudden departure of World Bank president Jim Yong Kim has triggered confusion among staff and raised questions about its future and Trump administration suspicions of international institutions”; Former Nissan chairman Carlos Ghosn faces at least several more months in jail following new charges of misleading investors and abusing his position; Lex Column: BUD’s well-received bond issuance and lengthening maturities not adding to the load underscores the company’s heavyweight status; Future tax changes in the U.S. may not be of much help to companies, because the first round of Trump tax reforms have strained public finances; As the Chinese luxury sector struggles, Richemont isn’t likely to rebound quickly; Comment: Triggering Article 50, supposedly irrevocable, weakened prime minister Theresa May’s negotiating hand with the EU but strengthened it when dealing with some MPs—yet it turns out the U.K. can simply revoke its notification to leave, says Tim Harford.
* NY POST (Saturday): + YUM: Taco Bell will add more meatless items to its menu, which includes the Vegan Crunchless Supreme, and will be testing its first, dedicated vegetarian menu in stores;
(Sunday): America’s wealthiest people are losing confidence in investing and may be set to move to the safety of CDs and other cash products as market losses amount, according to ET Intelligence Group; + BUD: Starting next month, packages of Bud Light beer will have prominent labels showing the calories and ingredients, as well as the amount of fat, carbs, and protein in a serving. Related ( RAGSX )