YOUR GEOPLITIX BOTTOM LINE

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GEOPOLITICAL RISK+GLOBAL MARKETS

US-AMERICAS IMPACT + OPPORTUNITY

David Malpass says he doesn’t see need to reorganize the global institution -Market Watch

“I think they like the U.S. having a very involved, engaged role in the World Bank”

You Say Democracy, I Say Republic The terms are interchangeable descriptions of the American political system, yet a fight over their meaning could have outsize consequences. -Bloomberg

The Taiwan Relations Act at 40: It’s Time to Deepen Ties The geostrategic rationale for keeping Taiwan at arms’ length no longer applies. We need to revisit the TRA not just in terms of security, but across economics, politics, and society as well. -The American Interest

China hawks call on America to fight a new Cold War -The Washington Post

GLOBAL BUSINESS

How Regulation Threatens Not Just Tech Giants’ Business but Their Popularity Too Public anger at any restrictions on services is more likely to hit the brands than the lawmakers behind the push -Morning Consult

AYN RAND REJOICES Automakers Plan for Their Worst Nightmare: Regulatory Chaos After Trump’s Emissions Rollback As the Trump administration prepares to drastically weaken Obama-era rules restricting vehicle pollution, nervous automakers are devising a strategy to handle their worst-case scenario: a divided American auto market, with some states following President Trump’s weakened rules while others stick with the tougher ones. -NYT

Tech Is Splitting the U.S. Work Force in Two A small group of well-educated professionals enjoys rising wages, while most workers toil in low-wage jobs with few chances to advance. -NYT

Amazon's Bezos challenges retail rivals to raise minimum wages -Reuters

Uber IPO Filing Shows $10 Billion in Operating Losses Since 2016 -Bloomberg

To Answer Critics, YouTube Tries a New Metric: Responsibility The largest online video service is trying to reward “quality” content, not just clips that keep people glued to their phones. -Bloomberg 

Ad Industry Trade Groups Unite in New Privacy-Focused Lobbying Effort Privacy for America set to meet with lawmakers, regulators and the White House -Morning Consult

OFAC WATCH OFAC Begins to Solidify Long-Awaited Guidance on Expected Elements for OFAC Compliance Programs The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is known for imposing hefty penalties for violations of US economic sanctions, with individual violations amounting to up to US $295,141 or twice the value of the transaction, whichever is greater, per prohibited transaction, and overall penalties sometimes running into the hundreds of millions, or even billions, of dollars. -Crowell

“OFAC also noted that foreign acquisitions pose “unique risks,” and explained its expectation that U.S. companies will conduct substantive sanctions-related diligence before and after mergers and acquisitions, including “appropriate steps to audit, monitor, and verify newly acquired subsidiaries and affiliates for OFAC compliance.” 

37 Chinese firms and universities added to US ‘unverified list’ telling suppliers to handle them with care

·        US Commerce Department warns that it cannot verify that organisations in question are abiding by export administration regulations

·        As well as 37 mainland bodies, six Hong Kong firms also included on list as Beijing claims US is abusing its rules

Why the U.S. Is Targeting Iran’s Revolutionary Guard -Bloomberg

Russian Court Orders Release of Michael Calvey, American Businessman A court in Moscow on Thursday released from pretrial detention one of the most prominent American businessmen working in Russia, whose arrest earlier this year had spooked foreign investors. -NYT

Newmont shareholders OK $10 billion Goldcorp takeover, creating biggest gold producer About 98 percent of votes at a special meeting were in support of Newmont’s proposal to issue new stock to fund its takeover of Goldcorp, the Denver-based company said in a statement. Goldcorp’s investors voted to approve the acquisition last week. Which is set to create the world’s biggest gold producer with assets across the Americas, Africa and Australia. -Reuters

GLOBAL MACRO

How the Market Is Betraying Advanced Economies As lifestyles in the world's developing economies improve drastically, many in the advanced economies are seeing their wellbeing deteriorate – a trend that automation will only exacerbate. Without fundamental change in the framework of public policymaking, it is difficult to imagine a prosperous future in these societies. -Project Syndicate

How not to weaken central banks’ independence There are different ways to politicise monetary policy, and Mr Trump’s is particularly poisonous. -The Economist

Moore and Cain Could Fix the Federal Reserve The central bank has suffered from groupthink for too long. -Bloomberg

Is the Fed in retreat? On an important 'too big to fail' reform, the central bank seems to be unilaterally disarming. After nine years of pitched battle with the banks over stress tests, the Fed has decided to retreat and, in the process, weakened its capacity to hold them accountable for dangerously bad practices. -Politico

Proponents of Anti-OPEC Bill Say Risk of Retaliation Is Exaggerated -Bloomberg

'Confidence in Mexico': U.S. and Mexican top brass to talk business, border -Reuters

To Halt Energy Slide, Mexico Turns to a Trusted Provider: Mexico President Andrés Manuel López Obrador, who took office in December, has said he intends to restore Mexico’s national oil company, Petróleos Mexicanos, or Pemex, to its former prosperity. -NYT