The US cannot possibly direct all its protectionist firepower towards Beijing - Financial Times

Sept. 10, 2018.

Donald Trump’s China pivot
The US cannot possibly direct all its protectionist firepower towards Beijing

China's president Xi Jinping, left, and US president Donald Trump in Beijing last year © AFP

James Politi in Washington
Hello to all readers of the FT’s Free Trade. I’m James Politi and I have taken over as World Trade Editor based in Washington — after four years as Rome Bureau Chief, covering the rise of populism in the heart of Europe.

It’s a daunting and fascinating time to be covering trade, as the Trump administration rewrites the rules of global commerce and clashes with America’s main commercial partners. One of my jobs will be to shepherd the Free Trade newsletter — writing columns and bringing in writers from around the FT network to offer their perspective and insights outside the DC bubble, or “Crazytown”, as Bob Woodward’s new book describes the place.

I am very keen for any feedback about the newsletter, for better or for worse. I would also love to get your tips or commentary on any aspect of international trade policy — and please send me any interesting research you may be working on. Email me at james.politi@ft.com. And if you’re in DC, let’s grab a coffee. Thanks for being loyal FT readers.

As US president Donald Trump prepared to enter the heat of battle in his trade war with China — with the imposition of a planned new round of tariffs on $200bn worth of imports — Larry Kudlow, his chief economic adviser, went on CNBC to offer a soothing message to investors.

A deal to overhaul Nafta was close to being completed, and a detente with the EU was solidly under way. The fights with America’s traditional allies would be on the backburner, and they could forge a “trade coalition of the willing” to confront Beijing.

“[The] EU would rather do business with the US than it would with China. I think the same is true with Japan. I think the same is true with Mexico,” Mr Kudlow said. “I think the Chinese, you know, may find themselves more isolated if they don’t come into the global process . . . and begin to say yes to the asks of President Trump.”

The notion that the Trump administration can successfully perform a “pivot to China” on trade policy, directing all of its protectionist firepower towards its giant trading partner and strategic rival across the Pacific Ocean, is tantalising in Washington but questionable in practice. There is still no guarantee that a Nafta deal can be successfully completed in the coming weeks, with Canadian and US officials still at odds on issues ranging from agriculture to dispute settlement, and Mr Trump launching angry tweets at Ottawa earlier this month.

Robert Lighthizer, the US trade representative, heads to Brussels on Monday to try to build on the July truce between Mr Trump and Jean-Claude Juncker, the president of the European Commission. But among EU officials there are still deep misgivings about US intentions on trade, and fears that Washington could at any point revert to threatening new national security-based tariffs on cars, on top of those introduced on steel and aluminium this year.

EU and Japanese officials did meet American trade negotiators at the end of August to begin discussing common ways to tackle Chinese unfair practices, and there is a clear common interest there. But there is little confidence that Mr Trump will be able to stick to any easing of trade hostilities with his closest allies, let alone forge a united front that draws broader support at the World Trade Organization, and truly have an impact on Chinese policymakers.

The doubts are fuelled not just by concerns about Mr Trump’s erratic style and frequent U-turns, but also the fact that trade hardliners have gained the upper hand in the administration’s internal battles over commercial policy. For Mr Lighthizer, as well as Peter Navarro, the chief trade hawk in the White House, the goal is not only to disentangle the US from its Chinese supply chains, and to shift production back home, but to do the same with the rest of America’s traditional trading partners as well.

Moreover, the top US trade officials are disdainful of any supranational bodies that might constrain US sovereignty — from WTO rules and dispute settlement panels, to arbitration tribunals used by companies to challenge unfair government policies when they invest abroad.

Then there is the matter of Mr Trump’s own views on trade. Revelations in Fear, a book by veteran Washington Post journalist Bob Woodward, will not be of much comfort, suggesting Mr Trump’s protectionist instincts may be even stronger than previously thought, preventing him from making commercial peace with traditional allies. One anecdote noted that Mr Trump scribbled “TRADE IS BAD” as he worked on a speech on the way back from the G20 meeting in Hamburg last year. In another, Gary Cohn, his former top economic adviser, is said to have snatched a draft notification of America’s intention to withdraw from a trade deal with South Korea off Mr Trump’s desk, successfully preventing the president from moving ahead with the plan.

But even for a US administration — and a president — enamoured with unilateralism, single-handedly taking on China is a very risky endeavour.

Chart of the day
After Mr Trump threatened China with a further $267bn in tariffs on top of the $50bn already implemented and $200bn under consideration, the Geneva-based Trade News Centre has shown how profoundly the third round would affect US consumers, and just before Christmas.

Hiccups — or more — on China’s Belt and Road Initiative, as both Malaysia and Pakistan are questioning major projects.
China is seeking to enlist Wall Street leaders to sway Mr Trump into easing up on the tariffs.
India is taking a tougher line on open data flows.
Two very useful trade podcasts from inside the Beltway — both of which focused on Nafta in their latest episodes. One is by Scott Miller and Bill Reinsch of the Center for Strategic and International Studies — the other is by Chad Bown of the Peterson Institute for International Economics and Soumaya Keynes of The Economist.
The Wall Street Journal looks at the US-China race for primacy in 5G. Last week Cisco warned that the US could lose if it placed tariffs on imported networking equipment.

John Lewis Christmas advert: Elton John reportedly paid £5m to star in 2018 edition - Independent

Sept. 10, 2018.

John Lewis Christmas advert: Elton John reportedly paid £5m to star in 2018 edition
The report claims that the singer's track 'Your Song' will soundtrack the advert

Jack Shepherd
@JackJShepherd

The Independent Culture

Sir Elton John has reportedly been paid £5 million to appear in this year's John Lewis Christmas advert.

Sources close to the production told The Mail on Sunday that Elton's fee makes up half of the advert's budget (£10 million).

The report claims that the singer's track "Your Song" will soundtrack the advert while Elton himself will appear onscreen playing the piano.

A source close to the set allegedly told the paper that the advert will chart the course of Elton's life.

"It’s a tear-jerker but also very sweet, and follows Elton from a child, through his teenage years, into how he is today," they told the publication.

"It is all very, very charming and the exciting crescendo at the end will be Elton playing his famous piano."

They added: "John Lewis wanted to win the battle of the Christmas adverts this year and it has cost them a significant sum to do it, but they think having Elton on board will guarantee its popularity and blow Marks & Spencer out of the water."

Filming is said to have taken place over four days at Pinewood Studios, Buckinghamshire.

Elton John announces UK dates of farewell tour
Ellie Goulding's cover version of 'Your Song' was previously used on the 2010 John Lewis advert, the song managing to reach number two in the charts.

A spokesperson for John Lewis said of the report: "We are lucky enough to enjoy lots of speculation around our TV ads, much of which is wildly inaccurate, and our one rule is to never comment on any aspect simply because we want to keep the magic."

The department store often employs lesser known artists to perform covers of popular songs. These have previously included Gabrielle Aplin, Lily Allen, Tom Odell, Aurora, Vaults, Elbow, and Slow Moving Millie.

Elton began his Farewell Yellow Brick Road tour yesterday (8 September) and recently announced a stretch of UK dates.

Representatives for Elton have been contacted by The Independent.

9/11 attack: New York City subway station reopens after 17 years - BBC News

9/11 attack: New York City subway station reopens after 17 years
9 September 2018

The first train arrives at the reopened station after 17 years
A New York City subway station has reopened for the first time since it was destroyed 17 years ago in the 11 September 2001 terrorist attack.

Cortlandt Street on the 1 line was buried under debris when the two World Trade Center towers collapsed after hijackers crashed planes into them.

On Saturday, people were welcomed into the newly renamed WTC Cortlandt station as the first train rolled in at midday.

Nearly 3,000 people died and thousands more were injured in the 2001 attack.

9/11 victim identified 16 years on
Remains returned to 'Ground Zero'
9/11 memories from the wreckage
"WTC Cortlandt is more than a new subway station," said New York City's Metropolitan Transportation Authority (MTA) chairman Joe Lhota in a statement.

The MTA only began to build the new station - which cost $181.8 million - in 2015
"It is symbolic of New Yorkers' resolve in restoring and substantially improving the entire World Trade Center site."

The new fully accessible station, which cost $181.8 million (£140.7 million) according to the New York Times, required an entirely new ceiling to be built and 365 metres (1,200 ft) of track to be replaced.

It now boasts state-of-the-art technology, like a new air ventilation system to keep the platform cool, and fewer columns to help with passenger flow.

Its walls are adorned with a white marble mosaic, spelling out text from the US Declaration of Independence and the 1948 United Nations Universal Declaration of Human Rights.

Pence says he's willing to sit for an interview with special counsel Robert Mueller - CBS News

CBS NEWS September 9, 2018, 9:00 AM
Pence says he's willing to sit for an interview with special counsel Robert Mueller

Vice President Mike Pence says he would be willing to sit down with special counsel Robert Mueller and his team of investigators as part of their ongoing probe into Russian interference in the 2016 election.

In an interview with "Face the Nation" moderator Margaret Brennan at the vice president's residence at the U.S. Naval Observatory on Saturday, Pence said that he's "fully cooperated" with Mueller's team over the past year and would be "more than willing to continue to provide any and all support" to aid the investigation.

He said Mueller has not requested an interview.

"We've provided any and all information, and we'll continue to do that," he said, adding that he would consult with his outside legal team if Mueller requests a meeting.

Pence denies discussing invoking 25th Amendment
Pence maintained that President Trump has "strongly affirmed our commitment to the rule of law," despite his public attacks against Attorney General Jeff Sessions for his decision to recuse himself from Mueller's investigation,

"This president has reflected that throughout the policies of this administration. But look, he's always going to be transparent about how he feels about things. And, as I said, there's longstanding Department of Justice guidelines that have to do with making sure that actions are not taken that inadvertently impact the electoral process," Pence added. "But all of that being said, I really do believe the president's candor is one of the reasons why the American people appreciate him."

After a lengthy back and forth with Mueller's office about an interview with the president, Mr. Trump's legal team has agreed to written questions about only after it reviews them. The team is not willing to commit to anything beyond that at the moment.

While Mueller has agreed to accept written answers from Mr. Trump, investigators have reserved the right to seek answers to questions related to obstruction of justice in a deposition. But Mr. Trump's attorney Rudy Giuliani told CBS News that "no commitment" has been given about whether Mr. Trump would answer any questions about obstruction. "Let's see how the first round goes," Giuliani said.

It's unclear if Mr. Trump himself has endorsed the plan of action, as the president has said publicly he would like to answer questions under oath and has lambasted Mueller as "disgraced" and "looking for trouble" in the ongoing probe.

May wraps 'suicide vest' around UK over Brexit, says Johnson - CNBC News ( source : Reuters )

Sept. 10, 2018.

May wraps 'suicide vest' around UK over Brexit, says Johnson
Johnson pressed his attack on May's so-called Chequers plan to leave the EU, calling it "a humiliation" that opens "ourselves to perpetual political blackmail".
"We have wrapped a suicide vest around the British constitution — and handed the detonator to (EU chief negotiator) Michel Barnier," Johnson wrote.
Alan Duncan, a minister at the Foreign Office, said Johnson's comments marked "one of the most disgusting moments in modern British politics".

Conservative MP Boris Johnson speaks as he visits Bristol on May 14, 2016 in Bristol, England.
Prime Minister Theresa May's Brexit deal wraps "a suicide vest around the British constitution" and hands the detonator to the European Union, former foreign secretary Boris Johnson said in comments that drew strong criticism.

In an article in the Mail on Sunday newspaper, Johnson pressed his attack on May's so-called Chequers plan to leave the EU, calling it "a humiliation" that opens "ourselves to perpetual political blackmail".

May is under fire from all sides of the divisive Brexit debate, with Johnson, favorite to succeed her, leading a push by euroskeptic MPs for the government to "chuck Chequers" and pursue a clean break with the bloc.

But so far, May has signaled she will not drop her blueprint for Britain's future ties with the bloc after Brexit — the biggest shift in the country's foreign and trade policy for almost half a century.

"We have wrapped a suicide vest around the British constitution — and handed the detonator to (EU chief negotiator) Michel Barnier," Johnson wrote.

His words — particularly the reference to a suicide vest — drew condemnation from fellow members of the governing Conservative Party.

Alan Duncan, a minister at the Foreign Office, said Johnson's comments marked "one of the most disgusting moments in modern British politics".

"For Boris to say that the PM's view is like that of a suicide bomber is too much," he said on Twitter. "I'm sorry, but this is the political end of Boris Johnson. If it isn't now, I will make sure it is later."

Cricket - England v India - Fifth Test - Kia Oval, London, Britain - September 8, 2018 Boris Johnson in the stands Action Images via Reuters/Paul Childs

'Not news'
Johnson resigned as foreign secretary over the Chequers plan, named after May's country residence where the government agreed proposals to maintain close trade ties with the EU in July, and has attacked it as making Britain "a vassal state".

The prime minister's plans have also been criticised by EU supporters for offering the "worst of all worlds".

Frances O'Grady, general secretary of the Trades Union Congress, said her organization would back a second vote on Brexit if May failed to win a deal that supported workers.

But two ministers batted away Johnson's appeal for Britain to drop Chequers and negotiate a Canada-style trade deal instead, saying such an agreement would not solve the problem of a new border between Northern Ireland and EU member Ireland.

"It is not news that he has a difference of opinion with the prime minister and that's why he left government," Home Secretary Sajid Javid told the BBC's Andrew Marr show. "I think there are much better ways to articulate your differences."

Housing minister James Brokenshire urged Conservatives to move forward with the Chequers plan, which May has failed so far to win backing from her party, Britain's parliament and also EU negotiators.

Many of Johnson's supporters hope his increasingly vocal criticism of May signals that he will launch a leadership bid while other Conservatives suggest his Mail article was solely to distract attention away from his marital difficulties.

On Friday, Johnson said he had separated from his wife Marina Wheeler and that the couple would divorce.

Huge gold-encrusted rocks unearthed in Australia - BBC News

Sept. 10, 2018.

Huge gold-encrusted rocks unearthed in Australia

More than 2,400 ounces of gold were found in the largest rock, RNC Minerals says
Miners in Western Australia say they have discovered two huge gold-encrusted rocks that are each estimated to be worth millions of dollars.

The largest specimen, weighing 95kg (210lb), was found to contain more than 2,400 ounces of gold, Canadian miner RNC Minerals said.

The company said it had extracted gold worth about C$15m (£9m; $11m) from a mine near Kalgoorlie last week.

One mining engineer described the finds as "exceedingly rare".

"People do still record finding nuggets in the goldfields, but typically they are less than several ounces," said Prof Sam Spearing, director of the Western Australia School of Mines at Curtin University.

The mining company valued the largest rock at about C$4m. It said the second-largest - a 63kg specimen with an estimated 1,600 ounces of gold - was worth C$2.6m.

Giant gold nugget found in Scots river
How much gold is there in the world?
The rocks were otherwise made of quartz, the company said.

Miners in Australia often extract as little as 2g of gold per tonne of rock, Prof Spearing told the BBC. RNC Minerals said it had extracted 2,200g per tonne.

"Very, very seldom do we see results on that level. This is an exceedingly rare find and very exciting," Prof Spearing said.

He said that gold particles were often too small to be visible to the human eye.

Concentrations of gold seen in the Beta Hunt mine
The Beta Hunt mine had primarily been running as a nickel operation until last week's discovery.

The company had targeted the gold vein, located 500m (1,600ft) underground, after finding traces of gold closer to the surface in June.

RNC Minerals chief executive Mark Selby said the largest rocks would go to auction as collector items.

Swedish election: Main blocs neck and neck as nationalists gain - BBC News

Sept.10, 2018.

Swedish election: Main blocs neck and neck as nationalists gain

Social Democrat supporters in Stockholm. Their party finished first again, but its vote fell
The Swedish general election has left the two main political blocs almost tied, with the anti-immigration party making gains on its previous results.

With nearly all ballots counted, the governing centre-left coalition is marginally ahead of its centre-right Alliance rivals, with around 40% each.

The nationalist Sweden Democrats (SD) have won about 18% of the vote, up from 12.9% in the previous election.

A protracted battle to form a working coalition now looks certain.

Is Europe seeing a nationalist surge?
Both of the main blocs have refused to govern with the SD, although its leader said he was prepared to talk with all other parties.

"We will increase our seats in parliament and we will gain huge influence over what happens in Sweden during the coming weeks, months and years," Jimmie Akesson told a party rally.

He had hoped to gain the support of one in five, or even one in four, Swedes, which some polls had also predicted. However, the results were closer to one in six.

Other European countries have seen support rise for anti-immigration parties in recent years. Earlier this year, Italy installed a new coalition government run by the anti-establishment Five Star and the right-wing League. In 2017 the far-right Alternative for Germany won 12.6% of votes, and The Danish People's Party won 21% in 2015.

Who stands with whom?

Sweden has become accustomed to coalition governments and no one was expecting an outright winning party in this election.

The current coalition, headed by outgoing PM Stefan Lofven, is made up of his Social Democrats and the Green Party, and is supported in parliament by the Left Party.

On the other side, the centre-right Alliance is made up of four parties: the Moderates, the Centre, the Liberals and the Christian Democrats. It was formed in 2004 to counter decades of dominance by the Social Democrats.

The main party in the Alliance is the centre-right Moderates and they have proposed Ulf Kristersson as their candidate for PM.

What happens now?
Sweden uses a system of proportional representation, under which each party is allocated a number of seats in each constituency that is broadly in line with its share of the vote.

With 99% of votes counted, neither of the leading alliances has reached the threshold of 175 seats, which is needed to govern.

Mr Lofven's bloc holds 144 seats and the Alliance holds one less.

Overseas votes have not yet been counted and so final results are not expected until Wednesday.

Lengthy negotiations will follow to attempt to form a workable government. One option could be for one of the parties to switch alliances.

PM Stefan Lofven saw his party get its worst results in years
At a party rally on Sunday night, Mr Lofven refused to quit. "We have two weeks left until parliament opens. I will work on calmly, as prime minister, respecting voters and the Swedish electoral system," he said.

Who are the Sweden Democrats?
The SD was linked for years to neo-Nazis and other far-right groups, only entering parliament in 2010.

It has been working to rebrand itself, changing its logo from a flaming torch (similar to the one used by the UK far-right National Front) to a blue-and-yellow daisy, the colours of the Swedish flag.

Jimmie Akesson said the SD now had "huge influence"
Traditionally appealing to working-class men, it wants to attract more women and higher-income voters.

Mr Akesson says there is zero tolerance towards racism in the party and several members have been expelled.

However, the party has still been embroiled in various racism scandals.

One municipal candidate shared a song on Facebook with the lyrics "Swedes are white and the country is ours", according to a report in tabloid Aftonbladet.

What were the key issues?
Sweden's economy is booming but many voters are concerned that housing, healthcare and welfare services have come under pressure from a wave of immigration during the 2015 migrant crisis.

The campaign has been dominated by immigration issues
That year Sweden took in a record 163,000 asylum seekers - the highest such intake in the EU, per head of population.

Sweden's traditional parties have since hardened their tone to reflect concerns about integration.

Many voters are also concerned about violence. The SD links a rise in shootings to increased immigration, although official figures show no correlation.

Is Malmo the 'rape capital' of Europe?
The SD also wants to leave the European Union and has proposed a "Swexit" referendum. However, the centrist parties all oppose such a vote, so it is unlikely to go ahead.

Aside from immigration, climate change is an issue many Swedes care about - particularly after a long, hot summer and severe forest fires.

During the heatwave, around 25,000 hectares of forest burned in wildfires. Support for the Green party, which had been struggling after various internal scandals, has crept up across the country.