Washington Urges Taiwan To Halt Chip Sales To Huawei

Washington Urges Taiwan To Halt Chip Sales To Huawei

Washington has demanded that the Taiwanese government immediately force export bans on Taiwan Semiconductor Manufacturing Company (TSMC) to stop it from selling semiconductors to Huawei, a move that would absolutely make Beijing furious, and could intensify the trade war. 

There are reports that Beijing and Washington are close to signing a “Phase 1” of the US-China trade deal, but Beijing even said several weeks ago that signing a whole agreement with the Trump administration was unlikely.

US officials told Taiwanese diplomats that semiconductors produced by TSMC, then bought by Huawei, were ending up in Chinese missile guidance systems that were aimed at Taiwan, reported Finacial Times (FT).

“US officials often have conversations with Taiwan interlocutors about the security and end-use of their technology supply chains. We have similar general export control and non-proliferation conversations with many partners,” the official said.

“In this particular case, we have a partner that is under a direct military threat from China, and is also one of the few places that produce certain technologies China needs to support its military ambitions.”

Randy Abrams, head of regional semiconductor research at Credit Suisse, said TSMC saw a modest boost in sales after Washington limited Huawei from selling its products in key US markets.

Abrams said China accounted for 20% of TSMC’s revenue in Q3, and Huawei was at least half of that. “If the Taiwan government were to force TSMC to drop Huawei as a customer, the stock market would react unfavorably.”

Tech experts told FT that Washington’s ability to force Taiwan to intervene in free markets and halt TSMC from selling semiconductors to Huawei would be challenging.

“Given Washington’s focus on competition with China and the role of semiconductors in things like 5G and advanced military capabilities, I expect the administration and Congress to increase their scrutiny of the export of advanced chips to China from Taiwan and other countries like Japan and South Korea,” said Eric Sayers, vice-president at Beacon Global Strategies.

Washington has been desperately running around the world, generating Sinophobia in countries that surround China to countries across the Eurozone. Washington’s agenda is clear: decouple the world from China. But that very mission will likely not succeed, due to China’s already significant presence globally.

China’s isn’t going anywhere — and Washington elites, along with corporate America, have to get used to the idea of a multi-polar world. 


Tyler Durden

Mon, 11/04/2019 – 11:05

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Trump Can’t Block Subpoena For Tax Records: Appeals Court

Trump Can’t Block Subpoena For Tax Records: Appeals Court

President Trump can’t block a subpoena for his tax returns, according to the US Second Circuit Court of Appeals in New York, which granted a temporary stay in the matter last month.

The three-judge panel rejected Trump’s argument that he is immune from criminal investigation while in the White House, according to CNBC.

In August, New York state prosecutors in Manhattan subpoenaed Trump’s accounting firm, Mazars USA, demanding eight years of his personal and corporate tax returns – just one month after the Manhattan DA’s office launched a criminal investigation into hush-money payments made to porn star Stormy Daniels (real name Stephanie Clifford) by former Trump attorney Michael Cohen – who is currently serving a three-year prison sentence on charges which include breaking campaign finance laws.

Manhattan D.A. Cyrus R. Vance Jr. (who took money from Harvey Weinstein while declining to prosecute him for sexual assault – and who sought a reduced sex-offender status for Jeffrey Epstein) wants to see if Trump’s reimbursement of Cohen violated any laws in New York, and whether Trump’s accounting firm falsely accounted for the reimbursements as a legal expense.

The president’s lawyers have called the investigation by Mr. Vance, a Democrat, politically motivated.


Tyler Durden

Mon, 11/04/2019 – 10:49

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The 2020 Election Is Guaranteed to Leave Many Americans Bitterly Unhappy

Do Americans support the push to impeach President Donald Trump? Do they see the Democratic Party as embracing extremism in its frantic efforts to take control of the federal government?

It probably won’t surprise you to learn that citizens of these disunited states of America are deeply divided in their opinions of efforts to oust the president and of the ideological positioning of his main political opponents. They also don’t have high opinions of either of the main political parties. Then again, Americans like each other even less than ever when it comes to politics, agreeing only that their opponents are awful while sharing mutual glares.

It’ll be interesting to see whether the victors in next year’s election can begin to reconcile with the large numbers of fellow citizens who view them with outright hostility—or if they even try to make the effort.

Presidential impeachment draws 48.3 percent support in FiveThirtyEight’s average of polls on the issue, while opposition draws a close 44.1 percent. Unshockingly, in these tribal times, Democrats back efforts to oust the president to the tune of 83.8 percent, while only 10.9 percent of Republicans feel the same way. Independents split the difference at 44.6 percent.

Those sentiments were reflected in an initial House impeachment vote on Halloween, which saw no Republicans vote in favor of a resolution setting out rules for the impeachment process and only two Democrats break ranks to oppose the measure.

But disagreement isn’t confined to Democrats’ efforts to unseat the president—it also revolves around their party’s overall shift to the progressive left on issues ranging from health care to gun control to identity politics.

A whopping 47 percent of Americans surveyed by Quinnipiac University in October said the Democratic Party has moved “too far left.” By contrast, only 37 percent say the GOP has moved “too far right” even after the party’s much-publicized embrace of populism.

Not that Americans as a whole are huge fans of either of the legacy political parties. Both the Democratic and Republican parties draw higher negatives (51 percent for Republicans and 47 percent for Democrats) than positives (35 percent for Republicans and 41 percent for Democrats) in the Quinnipiac survey. And, yes, those numbers do break very starkly along partisan lines—with both parties viewed negatively by more independents than see them in a positive light.

The political polarization and hostility that has occupied pundits’ attention in recent years seems to be getting worse.

“Three years ago, Pew Research Center found that the 2016 presidential campaign was ‘unfolding against a backdrop of intense partisan division and animosity,'” Pew Research noted last month. “Today, the level of division and animosity – including negative sentiments among partisans toward the members of the opposing party – has only deepened.”

That divide, Pew emphasizes, extends well beyond views of specific politicians, policy preferences, or even over-arching economic systems. It involves complete alienation between the camps and dismissal of opponents’ basic decency.

“For example, 55% of Republicans say Democrats are ‘more immoral’ when compared with other Americans; 47% of Democrats say the same about Republicans,” Pew reports. “Majorities in both parties say those in the opposing party do not share their nonpolitical values and goals.”

That echoes language from a paper published earlier this year that found over 40 percent of Americans say the political opposition is “downright evil.” Against such evil opponents, “violence would be justified” if the opposing party wins the 2020 presidential election, according to 18 percent of Democrats and 13 percent of Republicans. Anticipating an election win increased support for violence among strong partisans.

With more than a year to go before the election, political antagonists are already throwing accusations of “treason” at one another, raising the question of where the rhetoric goes from here. It’s hard to see how the divisions don’t continue to deepen—and even harder to imagine election day victors building bridges and putting everything back together as if this was all just a game.

With the legacy political parties and the president (whose approval has never exceeded 50 percent) held in such low esteem by so many of the people over whom they wield power, it would seem a perfect time for alternative parties and candidates to enter the scene and try to capitalize on widespread discontent with the Democrats and Republicans.

The problem is that Americans have wedded themselves to their political tribal divisions—people may strongly dislike both legacy parties and the president, but all still retain large loyalist bases. And those loyalist bases hate each other as much as they despise the politicians of the opposing parties. They’re not looking for new political options—they want to emulate Arnold Schwarzenegger’s Conan and totally crush and humiliate their enemies.

The only possible bandage for that gaping political wound is to assures partisans that they won’t be subject to the whims of “immoral” and “downright evil” opponents. A promise that whoever wins will just let them alone might leave Americans still contemptuous of one another, but with less to fear from the victory of opponents. But for this to happen, politicians would have to stop talking about fundamentally transforming the country over dissenters’ protest and instead confine themselves to more modest goals. That’s asking a lot of the creatures vying for government office.

Failing an adoption of such limited political ambitions, we enter a high-stakes election year with a deeply divided country, hard feelings, mutual contempt, and choices that are guaranteed to leave whoever loses the election bitterly unhappy with the winners.

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The 2020 Election Is Guaranteed to Leave Many Americans Bitterly Unhappy

Do Americans support the push to impeach President Donald Trump? Do they see the Democratic Party as embracing extremism in its frantic efforts to take control of the federal government?

It probably won’t surprise you to learn that citizens of these disunited states of America are deeply divided in their opinions of efforts to oust the president and of the ideological positioning of his main political opponents. They also don’t have high opinions of either of the main political parties. Then again, Americans like each other even less than ever when it comes to politics, agreeing only that their opponents are awful while sharing mutual glares.

It’ll be interesting to see whether the victors in next year’s election can begin to reconcile with the large numbers of fellow citizens who view them with outright hostility—or if they even try to make the effort.

Presidential impeachment draws 48.3 percent support in FiveThirtyEight’s average of polls on the issue, while opposition draws a close 44.1 percent. Unshockingly, in these tribal times, Democrats back efforts to oust the president to the tune of 83.8 percent, while only 10.9 percent of Republicans feel the same way. Independents split the difference at 44.6 percent.

Those sentiments were reflected in an initial House impeachment vote on Halloween, which saw no Republicans vote in favor of a resolution setting out rules for the impeachment process and only two Democrats break ranks to oppose the measure.

But disagreement isn’t confined to Democrats’ efforts to unseat the president—it also revolves around their party’s overall shift to the progressive left on issues ranging from health care to gun control to identity politics.

A whopping 47 percent of Americans surveyed by Quinnipiac University in October said the Democratic Party has moved “too far left.” By contrast, only 37 percent say the GOP has moved “too far right” even after the party’s much-publicized embrace of populism.

Not that Americans as a whole are huge fans of either of the legacy political parties. Both the Democratic and Republican parties draw higher negatives (51 percent for Republicans and 47 percent for Democrats) than positives (35 percent for Republicans and 41 percent for Democrats) in the Quinnipiac survey. And, yes, those numbers do break very starkly along partisan lines—with both parties viewed negatively by more independents than see them in a positive light.

The political polarization and hostility that has occupied pundits’ attention in recent years seems to be getting worse.

“Three years ago, Pew Research Center found that the 2016 presidential campaign was ‘unfolding against a backdrop of intense partisan division and animosity,'” Pew Research noted last month. “Today, the level of division and animosity – including negative sentiments among partisans toward the members of the opposing party – has only deepened.”

That divide, Pew emphasizes, extends well beyond views of specific politicians, policy preferences, or even over-arching economic systems. It involves complete alienation between the camps and dismissal of opponents’ basic decency.

“For example, 55% of Republicans say Democrats are ‘more immoral’ when compared with other Americans; 47% of Democrats say the same about Republicans,” Pew reports. “Majorities in both parties say those in the opposing party do not share their nonpolitical values and goals.”

That echoes language from a paper published earlier this year that found over 40 percent of Americans say the political opposition is “downright evil.” Against such evil opponents, “violence would be justified” if the opposing party wins the 2020 presidential election, according to 18 percent of Democrats and 13 percent of Republicans. Anticipating an election win increased support for violence among strong partisans.

With more than a year to go before the election, political antagonists are already throwing accusations of “treason” at one another, raising the question of where the rhetoric goes from here. It’s hard to see how the divisions don’t continue to deepen—and even harder to imagine election day victors building bridges and putting everything back together as if this was all just a game.

With the legacy political parties and the president (whose approval has never exceeded 50 percent) held in such low esteem by so many of the people over whom they wield power, it would seem a perfect time for alternative parties and candidates to enter the scene and try to capitalize on widespread discontent with the Democrats and Republicans.

The problem is that Americans have wedded themselves to their political tribal divisions—people may strongly dislike both legacy parties and the president, but all still retain large loyalist bases. And those loyalist bases hate each other as much as they despise the politicians of the opposing parties. They’re not looking for new political options—they want to emulate Arnold Schwarzenegger’s Conan and totally crush and humiliate their enemies.

The only possible bandage for that gaping political wound is to assures partisans that they won’t be subject to the whims of “immoral” and “downright evil” opponents. A promise that whoever wins will just let them alone might leave Americans still contemptuous of one another, but with less to fear from the victory of opponents. But for this to happen, politicians would have to stop talking about fundamentally transforming the country over dissenters’ protest and instead confine themselves to more modest goals. That’s asking a lot of the creatures vying for government office.

Failing an adoption of such limited political ambitions, we enter a high-stakes election year with a deeply divided country, hard feelings, mutual contempt, and choices that are guaranteed to leave whoever loses the election bitterly unhappy with the winners.

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Mish: Chicago Headed For Insolvency, Get The Hell Out Now!

Mish: Chicago Headed For Insolvency, Get The Hell Out Now!

Authored by Mike Shedlock via MishTalk,

Chicago Mayor Lori Lightfoot and the Teachers Union reached agreement on a deal sure to send Chicago over the cliff.

The Wall Street Journal Editorial Board blasts Chicago Mayor Lori Lightfoot for her deal with the Chicago Teachers Union (CTU). The deal will further wreak havoc on the already insolvent school system.

Who will be hurt most?

The WSJ answers the question this way: Union Routs Students in Chicago.

Contract Details

  1. 16% raise over five years (not including raises based on longevity)

  2. Three-year freeze on health insurance premiums

  3. Lower insurance copays

  4. Caps on class sizes

  5. More than 450 new social workers and nurses.

  6. New job protections for substitute teachers who going forward may only be removed after conferring with the union about “performance deficiencies.”

  7. Chicago Public Schools will become a “sanctuary district,” meaning school officials won’t be allowed to cooperate with the Immigration and Customs Enforcement without a court order.

  8. Employees will be allowed 10 unpaid days for personal immigration matters.

  9. Under the new contract, a joint union-school board committee will be convened to “mitigate or eliminate any disproportionate impacts of observations or student growth measures” on teacher evaluations.

  10. Instead of student performance, teachers will probably be rated on more subjective measures, perhaps congeniality in the lunchroom.

  11. The new union contract caps the number of charter-school seats, so no new schools will be able to open without others closing.

Get the Hell Out

The WSJ commented “Michelle Obama the other day complained that white people were leaving the city to escape minorities who are moving in. No, they’re fleeing Chicago’s high taxes and lousy schools—and so are minorities.”

Chicago Public School Bond Ratings

Chart from CPS Credit Ratings.

You can kiss those positive and stable outlooks goodbye. The system is insolvent and this contract will further weaken the outlook.

Bond Rating Comparison

Chart from Wikipedia, yellow highlights mine.

S&P already has CPS bonds in the “highly” speculative area, five steps into its junk ratings.

Pension Spiking

Chicago Teacher’s Pension is based on your years of service and a pension percentage (up to 75%), multiplied by your final average salary. Their union notes “There are ways to increase these factors to enhance your pension or meet eligibility requirements.”

Let’s Discuss Pensions

Wirepoints asks Chicago Teachers Strike: Why is No One Talking About Pensions?

The average retired CPS teacher already receives a pension of nearly $55,000 a year, according to a 2019 FOIA request to the Chicago Teachers’ Pension Fund.

However, looking at the pension of an average teacher far understates the true size of CPS pensions. The “average” benefit includes teachers who only worked a few years for CPS, which brings down the average.

To get a more accurate picture of what pensions are really worth, look at career teachers. Over half of all currently retired CPS teachers worked 30 years or more. On average, they receive a $72,000 annual pension and began drawing benefits at age 61.

In comparison, the average annual Social Security payment in Chicago is just $16,000 and the maximum benefit for someone retiring at age 62 is $26,500.

C-O-L-A Cola, la la la Payola

The average career CPS pension will grow by 3 percent, compounded annually, due to the COLA benefits teachers get. That will double a teacher’s annual benefit to over $140,000 in 25 years.

Teacher Contributions

Wirepoints Projections

Those projections were based on the proposed contract. The CTU held out for even more benefits and got them.

Pension Funding Level

The Chicago Tribune notes that the end of 2018, City Hall’s pension funds had only 23% of what they should have.

By 2023, Lightfoot must find an additional $989 million a year for pensions, according to the Tribune’s Hal Dardick and Juan Perez Jr. Thank you, former mayors and aldermen, for promising more pension benefits than Chicagoans could afford.

Who Will Pay?

That one is easy.

  • The kids will suffer because charter schools are reined in, grading standards lowered, and incompetents were given further projections.

  • Taxpayers will face higher property taxes, higher gas taxes, and higher sales taxes with every penny going to pensions.

Get the Hell Out

On October 5, I commented Escape Illinois: Get The Hell Out Now, We Are

Goodbye Illinois. Hello Utah. See my reasons for Utah above.

If you can’t get out of Illinois, do the second best thing, Get the Hell Out of Chicago.

By the way, Chicago is not “headed” for insolvency, it’s already there, but it is just not recognized yet.


Tyler Durden

Mon, 11/04/2019 – 10:45

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Market Rallies As Chinese Media Talks Down ‘Phase 1’ Deal

Market Rallies As Chinese Media Talks Down ‘Phase 1’ Deal

While yuan is weakening following SCMP headlines talking down the US-China trade deal, it appears the US equity algos only saw one thing ‘deal’ and rallied…

SCMP reports that:

“Chinese government its reportedly taking a cautious approach in choosing a venue for the US-China Phase 1 deal signing and will avoid giving too many concessions according to sources and diplomatic observers…

And MNI adds

China will not fully acquiesce to key U.S. trade demands in areas such as intellectual property rights protection…

…China’s Ministry of Commerce also cast doubt on claims President Trump that China could buy up to $40 billion to $50 billion of American agricultural products a year, noting that the peak for Chinese imports of U.S. farm goods was $29 billion in 2013.”

But “investors” bought US stocks on that?

Let’s see what happens next

 

 


Tyler Durden

Mon, 11/04/2019 – 10:39

via ZeroHedge News https://ift.tt/2JIRF1t Tyler Durden

The Largest Single-Day Commutation in History

Hundreds of low-level offenders in Oklahoma will be reunited with their families today, now that the state’s Pardon and Parole Board has recommended the largest single-day commutation order ever seen in the country. The state estimates that this will save taxpayers $11.9 million in money that otherwise would go to housing and otherwise supporting the prisoners.

According to a Friday press release from the office of Gov. Kevin Stitt, a Republican, the Pardon and Parole Board voted unanimously to commute 527 sentences. By the end of the day, Stitt had hand-delivered the signed certificates for each commutation to the state’s Department of Corrections.

Prior to the recommendation, Oklahoma leadership teamed up with local nonprofits and others in the community to host transition fairs. These fairs provided inmates with services to help them reintegrate into society upon release.

One person released by the order is Calista Ortiz, whose story was highlighted by the Department of Corrections. Ortiz was sentenced to eight years in prison on drug charges. While behind bars, she committed herself to a rehabilitation program, participated in a prison fellowship, and started a food pantry for her cellmates.

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Trump-Ukraine Whistleblower Agrees To Answer Written Questions; GOP Calls ‘Sunday Narrative Ambush’

Trump-Ukraine Whistleblower Agrees To Answer Written Questions; GOP Calls ‘Sunday Narrative Ambush’

The CIA employee whose whistleblower complaint is at the heart of Democrats’ impeachment proceedings has finally agreed to speak with lawmakers in writing after he reportedly got cold feet last week.

According to the Washington Examiner, the whistleblower’s attorney Mark Zaid said that he had contacted Rep. Devin Nunes (R-CA) “to submit through legal team written questions to WBer.” Zaid says that the questions “cannot seek identifying info.”

This comes after RealClearPolitics‘ Paul Sperry outed the whistleblower as 33-year-old Eric Ciaramella – an Obama administration holdover who worked with former CIA Director John Brennan.

Zaid told CBS on Saturday night that his client wants to be as bipartisan as possible throughout this process while remaining anonymous. The attorney noted that accepting written questions will allow the whistleblower to protect his or her identity from Republicans, who have asked that the whistleblower be identified. –Washington Examiner

According to Congressional Republicans, however, the whistleblower’s new offer was nothing more than a ploy to make headlines in a “Sunday narrative ambush” timed for discussion on national morning shows.

“I have never received that offer, and I’m the lead Republican,” said House minority leader Kevin McCarthy (R-CA), noting that Nunes hadn’t notified him of any letter as of Sunday morning.

McCarthy also thinks House Intelligence Committee Chair Adam Schiff (D-CA) should be forced to testify, as Ciaramella met with Schiff’s staff (a contact Schiff lied about).

Last week the Examiner reported that Ciaramella’s attorneys had broken off discussions with lawmakers regarding testimony in the case.

On Sunday, President Trump tweeted that the whistleblower “must come forward” to explain their concerns over a July 25 phone conversation between Trump and Ukraine’s President Volodomyr Zelensky, in which Trump asked that Ukraine investigate the Biden family and other matters.

“Reveal the Whistleblower and end the Impeachment Hoax!” Trump tweeted Sunday.

More on Ciaramella and his connections:


Tyler Durden

Mon, 11/04/2019 – 10:13

via ZeroHedge News https://ift.tt/2NDlP7x Tyler Durden

The Largest Single-Day Commutation in History

Hundreds of low-level offenders in Oklahoma will be reunited with their families today, now that the state’s Pardon and Parole Board has recommended the largest single-day commutation order ever seen in the country. The state estimates that this will save taxpayers $11.9 million in money that otherwise would go to housing and otherwise supporting the prisoners.

According to a Friday press release from the office of Gov. Kevin Stitt, a Republican, the Pardon and Parole Board voted unanimously to commute 527 sentences. By the end of the day, Stitt had hand-delivered the signed certificates for each commutation to the state’s Department of Corrections.

Prior to the recommendation, Oklahoma leadership teamed up with local nonprofits and others in the community to host transition fairs. These fairs provided inmates with services to help them reintegrate into society upon release.

One person released by the order is Calista Ortiz, whose story was highlighted by the Department of Corrections. Ortiz was sentenced to eight years in prison on drug charges. While behind bars, she committed herself to a rehabilitation program, participated in a prison fellowship, and started a food pantry for her cellmates.

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US Factory Orders Slump In September, Biggest Contraction Since July 2016

US Factory Orders Slump In September, Biggest Contraction Since July 2016

After August’s contraction, Factory Orders in September were expected to accelerate their decline, but the 0.6% MoM drop was more than expected. This sent the year-over-year contraction in factory orders down to -3.5% – the worst since July 2016…

Source: Bloomberg

Additionally the final durable goods orders print for September worsened, dropping 1.2% MoM and down 4.0% YoY…

Source: Bloomberg

Of course, everyone assumes that September was the inflection point and that October (and now November) will be awesome because of trade-deal hope?

 


Tyler Durden

Mon, 11/04/2019 – 10:05

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