YOUR GEOPOLITIX BOTTOM LINE

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GEOPOLITICAL RISK+GLOBAL MARKETS

US-AMERICAS IMPACT + OPPORTUNITY

QUESTION PRESENTED Whether Section 232 of the Trade Expansion Act of 1962, 19 U.S.C. 1862, which empowers the President to take action to adjust imports that threaten to impair the national security, impermissibly delegates legislative power to the President. -Brief for The Respondents (DOJ) in Opposition

Trump announces tariffs on Mexico over immigration The punitive measure, starting at 5 percent on all goods, is aimed at stemming the tide of Central American migrants crossing the U.S. border -Politico

Grassley slams Trump tariffs on Mexico: 'A misuse of presidential tariff authority' -The Hill

Henry Kissinger is still brilliant — and still wrong about China -The Hill

GLOBAL BUSINESS

Trade War Starts Changing Manufacturers in Hard-to-Reverse Ways ControlTek, which makes circuit boards in Vancouver, Wash., has begun shifting supply chains out of China and designing products that don’t require Chinese parts. -NYT

Trade can no longer anchor America’s relationship with China The world should be worried about that -The Economist

Disney CEO says it will be 'difficult' to film in Georgia if abortion law takes effect Walt Disney Co Chief Executive Bob Iger told Reuters on Wednesday it would be “very difficult” for the media company to keep filming in Georgia if a new abortion law takes effect because many people will not want to work in the U.S. state. -Reuters

Internet service providers spent over $80 million on lobbying in 2018 -The Hill

A Tough Task for FTC: Regulating Instagram When Anyone Can Be an Influencer Lack of resources at regulator, platform's seamless ad design make it difficult to monitor what people are hawking -Morning Consult

Trump Pushes USMCA Approval Plan in Move That Irks Pelosi White House officials submitted a so-called Statement of Administrative Action, a step toward introducing legislation that would bring the United States-Mexico-Canada Agreement into force. The move starts a minimum 30-day period for consultations between the White House and Congress to finalize the bill before a vote can take place. -Bloomberg

Pence protests China’s detention of Canadians and pledges to ‘stand with’ Canada -The Toronto Star

China says hopes Canada understands consequences of siding with U.S. China hopes Canada understands the consequences of siding with the United States and doing its bidding, China’s foreign ministry said on Friday, after U.S. Vice President Mike Pence called for the release of two Canadians detained in China. -Reuters

GLOBAL MACRO

Fed May Consider Lower Rates if Inflation and Global Risks Worsen -NYT

China Puts U.S. Soy Buying on Hold as Tariff War Escalates China, the world’s largest soybean buyer, has put purchases of American supplies on hold after the trade war between Washington and Beijing escalated, according to people familiar with the matter. -Bloomberg

Clamping down on U.S. soybean purchases is a direct strike at Trump’s political base. In the 2016 election, Trump carried eight of the 10 states with the largest soybean production, all of them in the Midwest. Iowa, the country’s second-largest soybean producer after Illinois, swung from Democrat to Republican in 2016 and could swing back again in 2020

Maybe the Economy Won’t Re-Elect Trump After All Several indicators are moving in the wrong direction. -Bloomberg

Mexican peso tumbles as Trump jolts markets with new tariffs, yen gains The Mexican peso sank to three-month lows against the dollar early on Friday after Washington unexpectedly said it will slap tariffs on all goods coming from its southern neighbor. -Reuters