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Why Markets and Political Scientists Disagree on the G7 Contrary to the warnings of some political analysts, even after the recent debacle in Canada, the G7 can and will play a role – albeit a less important one – on the global stage. But that does not mean that the summit's failure was cost-free. -Project Syndicate

Merkel, Macron bridge differences on EU reform German and French leaders agree on joint plan for eurozone, migration and other issues ahead of crunch summit. -Politico.eu

Migration problems help populists prosper in Europe In many EU countries, right-wing populists are reaping the benefits of the unsolved migration problems. A European solution is becoming increasingly difficult, and countries are starting to go it alone. -DW

Angela Merkel has two weeks to keep Germany’s centre-right together The chancellor wins time to find a European solution to the immigration dispute rending her political alliance -The Economist

Commons set for Brexit vote showdown -BBC

Mr. Putin, Seize This Chance to Release Dissidents The World Cup is the perfect stage for Russia to show it respects human rights. -Bloomberg

Putin’s Economic Dilemma Despite Western sanctions and oil-price volatility, Russia is currently on sturdier economic footing than most of its critics ever could have imagined just a few years ago. But while prudent fiscal and monetary policies have laid the groundwork for long-term sustainable growth, the government must resist the temptation of short-term stimulus. -Project Syndicate

ELECTION WATCH On June 24, 2018, Turkey goes to the polls in critical presidential and parliamentary elections. The country’s Supreme Electoral Council has approved six candidates in the 2018 presidential race. If no candidate gets over 50 percent in the first round, the two leading presidential hopefuls face a runoff two weeks later. -France24

EMEA | MARKETS IMPACT+OPPORTUNITY

GLOBAL BUSINESS

EU committee approves new rules that could 'destroy the internet as we know it' -The Independent

Article 11 introduces a "link tax", requiring that internet companies get permission from publishers to use a snippet of their work. On websites like Google and Twitter, for instance, a small part of the article is usually shown before someone clicks into it entirely – but, under the new rule, those technology companies would have get permission and perhaps even pay to use that excerpt.

Web Giants Gird for Legal Headaches Under New EU Copyright Rules -Bloomberg

The biggest problem for tech is a widening transatlantic rift Europe and the US sing from clashing hymn sheets on privacy, taxation and antitrust policy. -Politico.eu

EU looks into extending import controls on Chinese solar panels The European Commission is examining whether to extend measures to control imports of solar panels from China, a move that could fuel tensions with Beijing which had welcomed plans to phase them out in September. -Reuters

U.K. Companies Face Pre-Brexit Tax Bombshell From EU -Bloomberg

Ford and Volkswagen eye strategic partnership The two auto industry behemoths are exploring the possibility of jointly developing and building a range of commercial vehicles, and want to cooperate more closely on serving "the evolving needs of customers." -BBC

Bayer's remorse? Über-acquisition brings über-headaches as Monsanto trial opens German chemical giant Bayer’s $63 billion purchase of US firm Monsanto is the largest ever by a German of a non-German company. But Bayer also takes on Monsanto’s problems, which the trial of Lee Johnson highlights. -DW

Exclusive: Taiyo Nippon, Carlyle frontrunners to buy Linde and Praxair assets – Reuters

As Western lenders retreat, African banks see an opportunity Their pan-continental plans have not paid off. Yet -The Economist

GLOBAL MACRO

Greece to get up to 15 billion euros after third bailout: German official -Reuters

OPEC Maths Reveals Gap Between Headlines and Real Barrels -Bloomberg

Saudi struggles for Gulf oil producers' support ahead of OPEC meeting Saudi Arabia is struggling to convince fellow OPEC members including Gulf allies on the need to raise oil output, sources familiar with the talks said on Wednesday, adding to complications ahead of an OPEC meeting this week. -Reuters

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Historical Atlas: 12 Maps Covering 12,000 Years of History -CSIS [h/t @Interneconomics]

What’s so controversial about China’s new anti-corruption body? Digging into the National Supervision Commission China's new National Supervision Commission is charged with fighting corruption, but it is answerable only to the Chinese Communist Party. As such, the operation of this new branch of government seems at odds with Xi’s law-based governance ambition -Brookings

New York, Paris ... Greater Bay Area? Beijing’s big idea to transform southern China The central government is close to revealing the details of a plan to weld nine cities, including Hong Kong and Macau, into an innovative engine of growth -SCMP

Don’t Fear China’s Industrial Juggernaut Efforts to make champions of entire sectors often fail, as Japan showed in the 1980s. -Bloomberg

S.Korea, U.S. to announce suspension of major military drills this week -Yonhap

Japan's defense minister says U.S.-South Korean military drills 'vital' -Reuters

Abe-led panel adopts new visa plan to accept 500,000 low-skilled laborers by 2025 Challenged by the ongoing population crisis, Japan may be finally and quietly trying to change its strict immigration policy to accept more low-skilled foreign laborers. -The Japan Times

What’s Next for the India-Russia Strategic Partnership? A closer look at the trajectory of an important relationship. -The Diplomat

Vietnam Upgrades Spratly Islands Outposts in Broiling South China Sea -The News Lens

APAC | MARKETS IMPACT + OPPORTUNITY

GLOBAL BUSINESS

YOUR TARIFF EXPOSURES USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices This list of products consists of two sets of U.S tariff lines. -USTR

THE FIRST SET contains 818 lines of the original 1,333 lines that were included on the proposed list published on April 6. These lines cover approximately $34 billion worth of imports from China. USTR has determined to impose an additional duty of 25 percent on these 818 product lines after having sought and received views from the public and advice from the appropriate trade advisory committees. Customs and Border Protection will begin to collect the additional duties on July 6, 2018.

List 1 here.

THE SECOND SET contains 284 proposed tariff lines identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies, including the “Made in China 2025” industrial policy. These 284 lines, which cover approximately $16 billion worth of imports from China, will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties.

List 2 here.

China cries foul and imposes its own 25% levy on US goods Beijing sees Washington as 'flip-flopping' on trade stance -Nikkei

US Senate showdown on Trump's ZTE deal set for Monday Congress seeks to keep ban on Chinese phone company over White House objections -Nikkei

LINKED Qualcomm-NXP deal still waiting for China nod: sources -Reuters

How startups should deal with the stringent cybersecurity laws in China Data transfer abroad must obey strict rules CIIOs must now undergo a thorough security self-assessment and seek authority approval prior to any cross-border personal data transfers. Network operators must also complete a security self-assessment, but unlike CIIOs, authority approval is not mandatory (the data volume is below a certain threshold). -Tech-in-Asia

DATA LOCALIZATION New cyberlaw puts pressure on foreign tech companies, sparks fears of censorship and market stifling (Vietnam). Legislators have voted for a controversial new internet security law that has set off concerns about online censorship and economic harm. It requires foreign tech companies like Facebook to store data of Vietnamese users in the country, open local offices, and comply immediately with government orders to take down content deemed offensive. -Reuters

Vietnam is home to approximately 55 million social media users, and is one of the most active countries for Facebook.

Grapes of wrath: dark clouds for Australian winemakers as China ties sour Diplomatic quarrels between Canberra and Beijing are spilling over into the business world, threatening to upset the rising star of Australian exports: wine -SCMP

Nissan doubles down on emerging markets as U.S. sales slow Nissan is now looking to China, the world’s biggest car market, and other regions such as the ones it clubs as Africa, Middle East and India, to boost growth while trying to improve profitability in North America. -Reuters

Japan's home-sharing landscape takes shape with new law Clarified rules bring in new entrants while others seek more profitable options -Nikkei

India farmers sow unapproved Monsanto cotton seeds, risking arrest -Reuters

Japanese firm cashing in on growing gas demand in Nepal Saisan Co., a distributor of liquefied petroleum gas, or LPG, has formed Gas One Nepal Pvt., a joint venture with a local partner, becoming the first foreign participant in Nepal’s LPG market besides firms from neighboring India. -The Japan Times

GLOBAL MACRO

Trade Wars Don't Matter, Unless You Think $2 Trillion Matters -Bloomberg

International fund managers turn to financials, tech as trade worries rise -Reuters

TECH SUPPORT Smartphone maker Xiaomi’s IPO poised to become fastest ever approved in China Analysts say the fast-track application is a clear sign that Beijing is determined to bolster domestic listings of big technology firms -SCMP

GEOPOLITICAL RISK IS A FICKLE FRIEND/FOE Hedge Funds Pick the Wrong Time to Go Big on Gold as Prices Drop Even rising trade tensions between the U.S. and China that sent equities and bond yields tumbling Friday weren’t enough to boost gold’s haven appeal as the metal fell the most in 18 months. Geopolitical risks that previously supported prices are also fading after President Donald Trump met with North Korean leader Kim Jong Un. -Bloomberg

Mekong nations get started on their own infrastructure fund China intimates that it must be involved in the five countries' efforts Situated in a strategic location between the Pacific and Indian oceans, the five Southeast Asian Mekong nations for decades have drawn investment and development aid from big countries outside the region. But much of this largess has come with political strings attached. -Nikkei

Under new leader Mahathir, China’s infrastructure projects in Malaysia are under threat -The Japan Times

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WORLD CUP AMERICAS = 2026 World Cup Puts Mexico and U.S. in Rare Position These Days: ‘Unified’ -NYT

White House 'exploring' Trump-Putin meeting, aide says -Politico

Post-summit, remember human rights — and China’s interests For one who has enthusiastically supported President Donald Trump’s unconventional approach to the China and North Korea challenges, optimism after the Singapore summit is now tempered by increased caution. -The Hill

U.S. Insists Sanctions Will Remain Until North Korea Denuclearizes Secretary of State Mike Pompeo told Asian powers on Thursday that President Trump was sticking to demands that North Korea surrender its nuclear weapons, as he sought to hold together a fragile consensus on maintaining tough sanctions against the North despite Mr. Trump’s declaration that it was “no longer a nuclear threat.” -NYT

The Republicans’ Protectionist Pedigree In recent decades, US Republicans have tended to embrace free trade more willingly than US Democrats. But, during most of its first century, the Republican Party was protectionist in both word and deed, and it has elected the four most aggressively protectionist presidents of the last 50 years. -Project Syndicate

Trump's tariffs pose risk to global trade, U.S. economy: IMF -Reuters

Why Trump’s Movie Trailer About North Korea Was Brilliant A president who loves to be flattered knows how to appeal to the vanity of dictators. -Politico

WATCH THE IT HERE Destiny Pictures

LISTEN Podcast of the Week The Origins of Western Identity -American Interest

READ On Grand Strategy, John Lewis Gaddis

US-AMERICAS | MARKETS IMPACT+OPPORTUNITY

GLOBAL BUSINESS

Trump Approves China Tariffs, Focuses More Closely on High Tech President Donald Trump has decided to impose tariffs on about $50 billion in Chinese imports, according to two people familiar with the matter, in a move likely to escalate trade tensions between the world’s two biggest economies. -Bloomberg

Canadians boycott US goods, Trump over tariffs Canadians have started to boycott U.S. goods in the wake of President Trump's war of words with Canadian Prime Minister Justin Trudeau and the recent steel and aluminum tariffs on Canada, the European Union, and Mexico. -The Hill

Exclusive: Mexico studies tariffs on billions of dollars of U.S. corn, soy -Reuters

AT&T closes $85 billion deal for Time Warner -Reuters

China regulators approve Qualcomm-NXP Semiconductors merger deal  -Reuters

ZTE Penalties Sought in Senate May Set Up Showdown With Trump -Bloomberg

Facebook’s New Political Algorithms Increase Tension With Publishers -NYT

Trump gets win at U.S. Supreme Court in China antitrust case The U.S. Supreme Court sided with the Trump administration and against China on Thursday on a disputed aspect of their fraught trade relationship, throwing out a lower court ruling that had allowed two Chinese vitamin C makers to escape $148 million in damages for violating American antitrust law. -Reuters

WhatsApp is upending the role of unions in Brazil. Next, it may transform politics. -The Washington Post

IHG to Open 30 New Hotels in Mexico InterContinental Hotels Group, the parent of such hotel brands InterContinental Hotels & Resorts, Kimpton Hotels & Resorts, avid hotels, Holiday Inn and Holiday Inn Express, has announced it will be opening more than 30 new hotels in Mexico over the next two years. -Travel Pulse

Chile and Argentina sign tourism deal -ITIJ

GLOBAL MACRO

Fed's Powell Just Wants to Be Understood The new chair dispenses with jargon and takes cues from monetary policy bloggers. -Bloomberg

SEC says Ether isn’t a security, but tokens based on Ether can be -Tech Crunch

“In cases where there is no… central enterprise being invested in or where the digital asset is sold only to be used to purchase a good or service available through the network on which it was created,” that digital asset is “out of the purview of U.S. securities laws”, according to William Hinman, the director of the division of corporation finance at the U.S. Securities and Exchange Commission.

Argentina Got a $50 Billion Loan and Peso Is in Free Fall Anyway -Bloomberg

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THE WORLD CUP What makes a country good at football? Wealth, size and interest in football explain almost half of countries’ international performance. The rest can be taught. -The Economist

EU to triple spending to €5bn a year targeting illegal migration New border infrastructure including number plate recognition systems will be prioritized -The Guardian

Italy uses migrant threat for domestic and diplomatic gain Interior Minister Matteo Salvini refused permission for a ship carrying 629 migrants to dock at Italy’s ports. -Politico.eu

Brexit: Theresa May avoids withdrawal bill upset after compromising with rebel MPs British lawmakers rejected a proposal that would have given them the power to reject Theresa May's final Brexit deal. The prime minister dodged defeat by pledging to strengthen parliament's powers in other ways. -DW

France battles to topple Britain as Europe’s top tech nation The two historic rivals are fighting a new war, this time on the tech scene. And Emmanuel Macron has the upper hand. -Politico.eu

What Spain owes the ejected Mariano Rajoy -The Economist

Norway to invite more U.S. Marines, for longer and closer to Russia -Reuters

Saudi Coalition Set for Yemen Port Siege as UN Warns of Disaster Yemeni forces and their Saudi-led allies are massing for an assault to retake the country’s aid lifeline, a siege that could dramatically exacerbate the humanitarian crisis without tipping the balance of the war. -Bloomberg

EMEA | MARKETS IMPACT+OPPORTUNITY

GLOBAL BUSINESS

EU investigates Deutsche Telekom's Dutch deal amid competition concerns Deutsche Telekom faces a four-month investigation into its bid to buy the Dutch business of Swedish peer Tele2 after EU antitrust regulators voiced concerns about the deal. -Reuters

Hit them in the Harleys: EU fights Trump tariffs -BBC

German businesses seek answers from Britain on post-Brexit relations The head of one of Germany's business groups warns that Britain and the EU could "sink into insignificance" if they stay divided. Businesses fear that Britain could crash out of the bloc in March 2019. -DW

French farmers block refineries over palm oil imports -France24

World Cup: Nike boots barred for Iran footballers amid US sanctions -BBC

French carmaker PSA to leave Iran over risk of US sanctions French automaker PSA said Monday that it would pull out of two joint ventures to sell its cars in Iran to avoid the risk of US sanctions after Washington withdrew from a key nuclear deal with Tehran. -France24

U.S. counterspy warns World Cup travelers' devices could be hacked -Reuters

GLOBAL MACRO

Why the G7 Is a Zero Since its creation in the 1970s, the Group of Seven has become increasingly irrelevant in a world of new emerging powers. An institution that excludes the BRICs while still including economic basket cases like Italy cannot possibly claim the legitimacy required to exercise global economic leadership. -Project Syndicate

The big Italy short was hiding in plain sight -Reuters

Italy’s new economy minister rules out leaving euro ‘No discussion’ in government about quitting single currency, Giovanni Tria says. -Politico.eu

How Turkey's currency turmoil and the uncertainty of the upcoming elections could affect its struggling economy The country’s challenges extend well beyond the currency markets: the population has been living under state of emergency laws since the coup attempt in July 2016. -The Independent

APAC MONDAYS

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Trump and Kim Arrive in Singapore for Historic Summit Meeting -NYT

Getting to Yes With Kim Jong-un There are of course no guarantees that Donald Trump’s upcoming summit with the North Korean leader will succeed. What is clear is that successful denuclearization will require a combination of bold political decisions – say, formally ending the Korean War, opening liaison offices, or relaxing some economic sanctions – and realistic prudence. -Project Syndicate

A test of wills between Washington and Beijing On Asia’s major flashpoints — North Korea, Taiwan and the South China Sea — the Trump administration is far less inclined than its predecessors to look the other way as threats have mounted. (A parallel economic pushback is under way with the imposition of sanctions for China’s unfair trade practices.) -The Hill

The Shape of Sino-American Conflict -Project Syndicate

2047 = AROUND THE CORNER Number of Hongkongers planning to leave for new lives in Canada jumps 30 per cent as experts warn of brain drain Fears over high cost of living and political changes in city among suggested motives for rise in emigration applications -SCMP

THE RHETORIC At Shanghai Cooperation Organization summit, Xi extols free trade as G7 meeting ends in disarray -The Japan Times

THE REALITY India refuses to endorse China’s Belt and Road Initiative in SCO summit statement China’s Belt and Road Initiative (BRI) is an ambitious multi-billion inter-continental connectivity mission. The 17-page joint SCO declaration said all other seven member countries had endorsed the project and agreed to work towards implementing it. -Hindustan Times

ELECTION WATCH JAPAN Ruling coalition-backed candidate wins Niigata gubernatorial election A candidate backed by the ruling coalition won the tight Niigata gubernatorial election Sunday, boding well for the administration of Prime Minister Shinzo Abe who is facing cronyism allegations and declining approval ratings. -Mainichi

ELECTION WATCH INDIA As election looms, Modi's popularity wanes in rural India -Reuters

New Government, New Opportunities in Far-From-Failing Timor-Leste After nearly a year of political deadlock following the 2017 parliamentary elections, on May 12 Timor-Leste’s citizens elected a new government, with Xanana Gusmao the likely new prime minister. The parliamentary power his Change for Progress Alliance coalition might wield is little different from the power it was prohibited from wielding under the previous government. -News Lens

APAC | MARKETS IMPACT + OPPORTUNITY

GLOBAL BUSINESS

U.S. security panel approves Oceanwide purchase of Genworth A U.S. panel that reviews foreign investments for potential national security threats has approved China Oceanwide Holdings Group’s [OWREAC.UL] purchase of insurer Genworth Financial (GNW.N), the two companies said on Saturday. -Reuters

Tencent tumbles, weighing on Hang Seng index as US takes aim at Google’s ties with Chinese firms -SCMP

Chinese academics say ZTE case should kill old notion of ‘breakable contracts’ More Chinese companies should examine their compliance practices in the wake of ZTE saga if they want to expand overseas -SCMP

Japan’s auto industry body ‘gravely concerned’ about Trump’s launch of national security probe -The New York Times

Airbnb's Japan purge threatens to trigger 30,000 cancellations US company sets aside $10m to soothe panicked travelers -Nikkei

Amazon Blasted Over China Echo Factory Conditions -Bloomberg

Vietnam protesters clash with police over new economic zones Protests have broken out in Vietnam against plans for three new economic zones, amid fears that Chinese investors will dominate the areas. -BBC

Another day, another alleged Indian crypto Ponzi scheme Amit Lakhanpal said he had a global empire, a Lamborghini and knew movie stars and royalty. Now allegedly he's on the run and $75 million is missing -The Asia Times

A wake-up call for Singapore’s blockchain companies In late May, the Monetary Authority of Singapore (MAS) issued a warning to eight digital token exchanges, prohibiting them from trading digital tokens that are securities or futures contracts without approval. -Tech-in-Asia

Malaysia Steps Up $4.5 Billion Corruption Inquiry The United States Department of Justice estimates that $4.5 billion went missing from the fund, 1 Malaysia Development Berhad, known as 1MDB, which was established and overseen by the former prime minister Najib Razak — including $731 million that it says was deposited into Mr. Najib’s own bank accounts. -NYT

Indonesia’s Booming Tourism Industry What growth in Indonesia’s tourism sector tells us about Jokowi’s economic policies. -The Diplomat

GLOBAL MACRO

China Factory Inflation Accelerates on Rising Commodity Prices Prices of products from crude oil and natural gas extractors surged 7.5 percent in May from a month earlier, while a robust steel market boosted metal prices, the NBS said in a statement released with the data. -Bloomberg

Foxconn leverages Xi's hopes to raise $4.2bn iPhone assembler's IPO coincided with US-China tech competition -Nikkei

India raises key rate for first time since 2014, retains 'neutral' stance -Reuters 

Rio Tinto moves into cleaner resources to chase electric vehicles Global miner shifts focus to lithium after exit from coal. -Nikkei

Bitcoin Tumbles Most in Two Weeks Amid South Korea Hack -Bloomberg

$1b Loans From ADB to Support Indonesia's Fiscal, Investment Reforms The Asian Development Bank has approved $1 billion in policy-based loans to support Indonesia's reforms in public expenditure, and to improve the country's investment climate. -Jakarta Post

US-AMERICAS FRIDAYS

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US-AMERICAS | GEOPOLITICAL RISK

G7 leaders set to clash with combative Trump over tariffs, trade -Reuters

BLOC QUÉBÉCOIS: 7 and Trump: Can’t live with him, can’t live without him As leaders of the world’s industrialized powers gather in Quebec, it’s everyone versus the US president. -Politico

Donald Trump’s demolition theory of foreign policy won’t work These gains would be striking from any American president. From a man who exults in breaking foreign-policy taboos, they would be truly remarkable. But are they likely? And when Mr Trump seeks to bring them about with a wrecking ball aimed at allies and global institutions, what is the balance of costs and benefits to America and the world? -The Economist

President Trump’s tariffs have united his opponents at home and abroad The domestic and diplomatic costs of picking trade fights -The Economist

POWER OF THE PRESIDENCY GOP waves white flag on Trump trade clash Senate GOP leaders are quashing a bid from Sen. Bob Corker to rein in Trump's tariffs. -Politico

Paul Ryan Promises House Immigration Bill in Election Season -NYT

Pioneers of the Next America The road to renewal in America begins with re-learning how to tell the story of our shared national destiny. -The American Interest

Trump Is No Reagan When It Comes to Union-Busting The economy today is very different. Opposing labor won’t be popular. -Bloomberg

Aiming at Trump strongholds, Mexico hits back with trade tariffs Mexico put tariffs on American products ranging from steel to pork and bourbon on Tuesday, retaliating against import duties on metals imposed by President Donald Trump and taking aim at Republican strongholds ahead of U.S. congressional elections in November. -Reuters

US pushes for Venezuela to be suspended from OAS The United States and six influential members of the Organization of American States urged the body Monday to reject Venezuela's elections and to begin moves to kick Caracas out of the club. -Yahoo News

US-AMERICAS | MARKETS IMPACT+OPPORTUNITY

GLOBAL BUSINESS

Senator queries Alphabet, Twitter on ties with Huawei -Reuters

Google Renounces AI Weapons; Will Still Work With Military -Bloomberg

Chinese phone maker ZTE saved from brink after deal with U.S. -Reuters

ZTE provides a lens into U.S.-China technology and data war The Chinese electronics giant ZTE finds itself in the middle of U.S.-China tariff and trade war tensions. The controversy is complex, involving trade sanction violations, punishment by the U.S. government and the surprise intervention of President Donald Trump to try to save the firm.-Marketplace

U.S. Senator Mark Warner at Code 2018 On Mark Zuckerberg’s Congressional hearings: “I thought, ‘Oh God, they’re going to leap to it.’ Then I was saying, ‘Oh my God. This is an embarrassment.’” -Recode Video

Exclusive: U.S. Justice Department probes T-Mobile-Sprint merger effect on smaller wireless companies -Reuters

K Street cash can’t kill tariffs from Macy’s to Ford to Facebook — are pushing back against the tariffs in an effort to prevent a trade war.  “But lobbyists are nonetheless struggling to sway White House decisions, or even predict them. They again risked looking feckless when the Trump administration said Thursday it would impose tariffs on steel and aluminum imports from Canada, Mexico and the European Union. -Politico

Airbus set to close deal for majority stake in Bombardier Cseries -Reuters

GLOBAL MACRO

Argentina Secures $50 Billion in IMF Backing to Bolster Economy Argentina secured a $50 billion stand-by arrangement from the International Monetary Fund to help restore investor confidence as the government takes aim at double-digit inflation and a widening budget deficit. -Bloomberg

Chile economic activity strongest in six years -NASDAQ

LIQUIDITY IS THE NEW LEVERAGE Why the toxic combination of bank regulation, algorithmic investing, and QT has put equity and bond markets at increased risk of a systemic event. -13D

Quebec Halts Bitcoin Mining Power Requests Amid Booming Demand -Bloomberg

Roll Up for the Great Permian Sale (While It Lasts) The sector has quickly gone from untouchable to M&A bait. -Bloomberg

BIG DATA DIVE Global gas and oil infrastructure. The Department of Energy’s National Energy Technology Laboratory has published what it says is the “first-ever database inventory of oil and natural gas infrastructure information from the top hydrocarbon-producing and consuming countries in the world.” The database contains tons of geospatial information and “identifies more than 4.8 million individual features like wells, pipelines, and ports from more than 380 datasets in 194 countries …” -EDX [h/t Data is Plural]

An Oil Auction Provides Brazil a Needed Boost -NYT

Oil prices rise on ongoing Venezuelan supply trouble -Reuters

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RIP, Post-World War II Global Order The Marshall Plan’s anniversary is time to reflect on what we’re losing. -Bloomberg

Does Europe Really Need Fiscal and Political Union? There is a growing sense in Europe, among conservatives and progressives alike, that fiscal and eventual political union is necessary to maintain the euro without damaging economic performance or democratic values. But there is also an alternative, much less ambitious view, according to which only banking union is needed. -Project Syndicate

New Italian PM is proud to be populist Giuseppe Conte says Europe is ‘our home’ as he sets out his agenda before parliament. -Politico.eu

U.S. pushes NATO to ready more forces to deter Russian threat -Reuters

Vienna calling Putin The Russian president is heading to Austria, where he’s sure to get a warm welcome. -Politico.eu

U.S. lawmakers seek to block Trump on tariffs Republican Senator Bob Corker, chairman of the Foreign Relations Committee, said legislation would be introduced on Tuesday or Wednesday that would pare back the president’s authority under Section 232 of the Trade Expansion Act of 1962. -Reuters

EMEA | MARKETS IMPACT+OPPORTUNITY

GLOBAL BUSINESS

Europe seeks U.S. sanction exemptions for its firms in Iran European signatories to a nuclear deal with Iran have written to top U.S. officials to stress their commitment to upholding the pact, which Washington has quit, and to urge the United States to spare EU firms active in Iran from secondary sanctions. -Reuters

Trump’s Shot Heard Round the Foot The imposition of steel tariffs on European producers was an unprovoked attack, to which the EU has vowed to retaliate. But instead of engaging in a costly strategy of escalation with their biggest trading partner, Europe’s leaders should swallow their pride and indulge its president's insistence on running the US economy into the ground. -Project Syndicate 

THE ANTI-MONOPOLISTS Google’s mobile web dominance raises competition eyebrows Media groups and software developers warn that the upcoming Android fine is already yesterday’s news. -Politico.eu

Uber jumps into European bicycle-sharing market -Reuters

Thailand's Minor plans 2.5 billion euro takeover bid for Spain's NH Hotels Thailand-based Minor International (MINT.BK) said on Tuesday it plans to launch a takeover bid for NH Hotels (NHH.MC) valuing the Spanish hotel group at up to 2.5 billion euros ($2.9 billion) after buying a stake from Chinese conglomerate HNA Group. -Reuters

G7 to uphold Russia sanctions: senior EU official -Reuters

GLOBAL MACRO

Euro boosted but bonds and stocks cautious after hawkish ECB comments -Reuters

Juncker: The euro is EU’s future Juncker’s comments follow the recent political crisis in Rome that rocked financial markets. -Politico.eu

How Draghi lost Italy Did the head of the European Central Bank plant the seeds for his country’s collapse? -Politico.eu

Markets rattled by Italian and Spanish political turmoil - as it happened -The Guardian

Saudi Aramco restructures non-oil assets ahead of IPO: sources -Reuters

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Talks end with China warning trade benefits at risk if U.S. imposes tariffs Ross says talks in China were 'friendly and frank' -Nikkei

Mattis Accuses Beijing of ‘Intimidation and Coercion’ in South China Sea -NYT

China’s Reform and Opening: 40 Years and Counting How far is the Chinese government willing to go in letting go of economic control? -The Diplomat

Calls for end to one-party rule will not cease, Hong Kong’s June 4 vigil organiser vows Annual event will kick off with ‘Resist Authoritarianism’ as one of its slogans while participants will also pay tribute to dissident Liu Xiaobo -SCMP

A North Korean Opportunity for America and China -Project Syndicate

Abe's Russia trip highlights foreign policy failings Japan's prime minister struggles for success abroad amid mounting difficulties at home -Nikkei

With ports, ships and promises, India asserts role in Southeast Asia -Reuters

India develops major-power diplomacy as Trump tears up status quo Modi steps up relations with China and Russia in quest for multipolar world order -Asian Review

Singapore, India to cut tariffs on 30 more products after trade pact review -The Straits Times

APAC | MARKETS IMPACT + OPPORTUNITY

GLOBAL BUSINESS

Global airlines issue warning over trade tensions Growing tension over international trade could damage the airline industry and the world economy, global airlines and aviation executives warned on Sunday. -Reuters

US memory chip maker Micron says Chinese officials visited its offices ‘seeking information’ in possible new trade war front Local media reported that visits may have been sparked by concern about continued price increases for memory chips -SCMP

Chinese firms working on belt and road projects at risk of international disputes, say lawyers Hong Kong has seen a huge jump in dispute resolution cases involving parties from nations covered by China’s global trade strategy -SCMP

Japan's automakers feel the chill as Trump-Abe bromance cools Industry suffers as U.S president combines attacks on cars and China -Nikkei

COORDINATED State-backed INCJ, DBJ to start investment talks on Toshiba Memory -The Japan Times

Japan's revised governance code takes on cross-shareholdings Tokyo bourse wants to see more diversity in the boardroom -Nikkei

Asia news roundup: Uber turns rare profit after Grab deal, while GrabFood replaces UberEats -Tech In Asia

Singapore start-up secures $12.3 billion in assets for blockchain platform FUSION, a Singapore-based crypto-finance start-up, has secured $12.3 billion in financial assets from three strategic partners that have committed to lock in those funds with the organization’s public blockchain platform, FUSION founder DJ Qian told -Reuters.

GLOBAL MACRO

BUYER BEWARE -- MSCI is not a quality guarantee Bending of index rules in hope of Chinese reforms is bound to lead to disappointment -Nikkei

Surging China demand gives boost to LNG investment in US Multiple gas plant construction projects start up after two-year slump -Nikkei

Indonesia faces up to emerging market turbulence Indonesia has been strengthening its resilience to external shocks, as it cannot be complacent as the global financial environment becomes even more troubled -SCMP

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GEOPOLITICAL RISK

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APAC | GEOPOLITICAL RISK

U.S. warships sail near South China Sea islands claimed by Beijing -Reuters

Why China Won’t Abandon Its Controversial Trade Policies Protectionist policies play a key role in China’s national strategy. -The Diplomat

Merkel calls for Germany and China to re-gear relations for digital era -Reuters

Abe continues balancing act with Putin as he chases peace treaty, disputed isles at Moscow summit -The Japan Times

After Snubbing Taiwan, Burkina Faso Establishes Diplomatic Ties With China -NYT

TO BE OR NOT TO BE China's fingerprints on summit's cancellation, so US must push back -The Hill

Trump’s On-Again, Off-Again Summit Style Unnerves Asian Allies -NYT

NOSTALGIA WORKS Malaysians look to Mahathir to bring back the good old days Nostalgia played a role in the country's first-ever change of government -Nikkei

BIG READ Managing Change: Executive Policymaking in Myanmar -The Asia Society

APAC | MARKETS

IMPACT + OPPORTUNITY

GLOBAL BUSINESS

IN THE FOG OF THE U.S.-CHINA TRADE WAR A simple plan: action, confusion, and retreat -The Diplomat

Addressing China’s Technology Policies: Beyond the Whiplash of a ZTE Deal -Lawfare

TRADE INVESTMENT + NATIONAL SECURITY In DC June 19th? Join Us! @GPL_Global for a spring roundtable on trade investment + national security -Register Here

China’s Hikvision hits out at US Congress over ‘baseless’ ban on using surveillance equipment over national security concerns Security camera manufacturer reacts after House of Representatives adds it to list of companies seen as threatening US national security -SCMP

Tencent chairman pledges to advance China chip industry after ZTE 'wake-up' call: reports -Reuters

THE PERILS OF INDUSTRIAL POLICY How China's state-backed companies fell behind Efficiency plummets over 10 years, exclusive data show -Nikkei

DANDONG BANK CASES STUDY Secondary Economic Sanctions: Effective Policy or Risky Business? -Atlantic Council

Qualcomm to meet China regulators in push to clear $44 billion NXP deal: sources -Reuters

Mahindra and Boeing team up to make F/A-18 fighters in India Hindustan Aeronautics also in deal to supply jets to Indian military -Nikkei

Taiwan Reaches Preliminary Deal to Upgrade 2 Diesel-Electric Subs The Taiwanese government and Dutch firm RH Marine reached a deal to upgrade two diesel-electric submarines. -The Diplomat

DEEP DIVE Taiwan’s Indigenous Defense Industry: Centralized Control of Abundant Suppliers -GTI

Alibaba’s Southeast Asia empire While Amazon has taken only baby steps into the fast-growing Southeast Asian market, Alibaba and its Ant Financial spin-off have marched in with all guns blazing. -Tech in Asia

ComfortDelGro-Uber deal is off Taxi giant ComfortDelGro Corp and ride-hailing firm Uber have agreed to dissolve the strategic agreement that they entered into last December. -The Straits Times

Go-Jek spending $500m for regional expansion The Jakarta-based company is spending US$500 million to move into Singapore, Thailand, Vietnam, and the Philippines – all countries where Grab is currently the dominant player. -Tech in Asia

GLOBAL MACRO

331 cryptocurrency traders in Japan logged over ¥100 million in income in 2017, tax returns show -The Japan Times

NEED A POLITICAL RISK POLICY? Cross-strait risks cannot be ignored, insurer warns offshore wind farm firms chasing lucrative Taiwan projects -SCMP

AMERICAS FRIDAYS

GEOPOLITICAL RISK + GLOBAL MARKETS

US-AMERICAS | GEOPOLITICAL RISK

FAREWELL SINGAPORE Trump cancels summit with North Korea's Kim, warns that military ready -Reuters

READ THE LETTER Trump’s Letter to Kim Canceling North Korea Summit Meeting, Annotated -NYT

GDPR, or Why Privacy Is Now Stronger in EU Than U.S. -Bloomberg

U.S. Sanction Power May Be Reaching Its Limit The response to the Iran decision shows the global economy won’t be bossed around forever. -Bloomberg

New Proposed Trade Legislation Contains Additional Trade and Investment Restrictions Involving China -Lexology  

WEIRD SCIENCE How China acquires ‘the crown jewels’ of U.S. technology The U.S. fails to adequately police foreign deals for next-generation software that powers the military and American economic strength. -Politico

TARIFFS + PUFFERY Canada PM raps possible U.S. auto tariffs, says linked to NAFTA A move by the United States to explore tariffs on auto imports is based on flimsy logic and is part of the pressure from Washington to renegotiate the NAFTA trade pact, Canadian Prime Minister Justin Trudeau said on Wednesday. -Reuters

Mexico's Pena Nieto 'optimistic' on NAFTA as country makes new offer -Reuters

US-AMERICAS | MARKETS IMPACT+OPPORTUNITY

GLOBAL BUSINESS

The Trump trade: Why corporate America loves Donald Trump American executives are betting that the president is good for business. Not in the long run -The Economist

GOVERNMENT STEPS IN WHERE MARKETS FAIL Exclusive: U.S. bill would force tech companies to disclose foreign software probes U.S. tech companies would be forced to disclose if they allowed American adversaries, like Russia and China, to examine the inner workings of software sold to the U.S. military under proposed legislation -Reuters

PODCAST OF THE WEEK Here's How to Regulate Facebook Productively! -Mercatus Center

Facebook and Twitter Plan New Ways to Regulate Political Ads -NYT

With CDD and Beneficial Ownership Rule in Effect, FinCEN Continues to Clarify and Refine Rules for Financial Institutions -Lexology

Time to Move the American ICT Supply Chain Out of China The Trump Administration’s trade strategy needs to focus on the threat posed by China’s activities in the information and communication technology arena. -The American Interest

NOTHING TO WORRY ABOUT HERE Here’s Amazon’s explanation for the Alexa eavesdropping scandal A couple says their device secretly recorded a private conversation of theirs and sent it to an acquaintance. -Recode 

OR HERE U.S. threatens autos with scorched-earth gambit The White House is threatening the automotive industry with a scorched-earth gambit. President Donald Trump on Wednesday asked Commerce Secretary Wilbur Ross to consider a so-called Section 232 investigation on all imports of vehicles and parts. That may well just be his fuel-injected bargaining chip for negotiations with partners in NAFTA, the North American trade pact. If the levies actually happen, though, it would leave domestic and foreign automakers reeling. -Reuters

GUN HO So you’re telling me my Subaru is a national security threat? -The Washington Post

GLOBAL MACRO

How Trump’s Obsession With China Could Turn America into Japan As a real estate mogul in the 1980s, Donald Trump railed against Japanese economics. Now, to counter China, he is fatefully emulating them. -Politico

GUSHES? US shale-based LNG gushes into Asia Japan follows South Korea, China and India in signing long-term contracts -Nikkei

Another Ship Bound for China Turns Around Halfway, Then Turns Around Again -The American Spector

Massachusetts Gains Foothold in Offshore Wind Power, Long Ignored in U.S. The wind farms have increasingly become mainstream sources of power in Northern Europe, but the United States has largely not pursued the technology. -NYT

DATA SET OF THE WEEK Wind Integration National Dataset Map -NREL [h/t Data Is Plural]

Latin America contagion from Argentina turmoil unlikely Turmoil in Argentina's financial markets is unlikely to spread to rest of Latin America, apart from possibly Uruguay, a top Latin America sovereign analyst at ratings agency Moody's said on Tuesday. -NASDAQ