The Evening CSIS July 8 2015
July 8, 2015
Welcome to The Evening CSIS—my daily guide to key insights CSIS brings to the events of the day plus HIGHLY RECOMMENDED content from around the world. To subscribe, please click here and if you want to view this in your browser, click here.
The Dow fell sharply on China fears today , and a technical glitch that suspended trading for over three hours didn’t help either, as the Wall Street Journal reports.
Secretary of Homeland Security Jeh Johnson sought to allay fears that the suspension of trading was merely a glitch and not a cyber attack at a speech today at CSIS, as Politico reports.
Secretary Johnson’s entire speech can be viewed on demand, and a transcript of his remarks is also available .
Dive Deeper: “When push comes to shove Beijing will always choose administrative intervention rather than markets,” writes CSIS’s Scott Kennedy in a commentary published this week: “Crisis Averted in China’s Stock Markets for Now.”
Vietnam's Communist Party Leader Speaks at CSIS
President Obama has come under fire from some lawmakers on Capitol Hill for meeting yesterday with Nguyễn Phú Trọng , general secretary of the Vietnamese Communist Party, as the Hill’s Julian Hattem reports.
Today, the general secretary delivered historic remarks at CSIS , his first at a US think tank. As Matthew Pennington of the Associated Press reports, Trong said that differences with the United States on human rights should not be allowed to obstruct the deepening of relations between the former enemies.
Dive Deeper: You can watch his remarks here.
In that Number
The Dow Jones Industrial Average dropped 261 points today after a more than three-hour shutdown due to technical issues.
Source: USA Today.
Asked: What are the dangers to China’s intervention in its stock markets?
Answered: Scott Kennedy, director, CSIS Project on Chinese Business and Political Economy:
The intervention comes with some real costs that will not be easy to overcome. The scale and aggressiveness of these measures make a mockery of the leadership’s claim to allow the market to play a “decisive role” in determining the allocation of resources and the direction of the economy. Granted China needed to avoid a full-blown crisis, but these actions reinforce the distinct impression that when push comes to shove, Beijing will always choose administrative intervention rather than markets, signaling once again to investors (and local officials) that they can take excessive risks because someone else (higher up the system) will always clean up the mess. Over the past two years, Beijing has started to permit corporate bonds to default as a way of signaling that there is genuine risk that issuers and investors need to heed. Breaking the vicious cycle of moral hazard necessary to have a financial system operate efficiently on a commercial basis is now that much harder, as the stock market rescue may reinforce the older lessons Beijing was trying to unteach.
One to Watch
Neil Irwin (@Neil_Irwin) is senior economic correspondent at the New York Times’s “The Upshot” blog and author of The Alchemists: Three Central Bankers and a World on Fire (Penguin, 2013). I highly recommend watching what Neil has to say these days…
Incredible photo essay by Reuters on the Pope’s visit to Latin America.
The Washington Post’s Ishaan Tharoor writes for the Post’s “World Views” blog that “Tunisia plans to build a really long wall to keep out terrorists.”
As well as the major events mentioned above, CSIS hosted BHP Billiton’s chief commercial officer for an informative discussion on global commodity trends and analysis of consumption and demand around the world, with a special focus on China.
In the morning, CSIS will host a discussion with Assistant Secretary of the Air Force William Laplante on the future of Air Force acquisition.
In the afternoon, CSIS will host a maritime security dialogue with Vice Admiral Thomas S. Rowden (USN) on the state of the US Navy’s surface fleet and it’s challenges in the near and long term.
And as part of the China Reality Check Series, CSIS will host a conversation on “ The 7th U.S.-China Strategic & Economic Dialogue: Process, Achievements and the Road Ahead,” with leading officials from the US Departments of State and Treasury.
This Town Tomorrow
The Wilson Center will host a timely event on “Middle East Energy: Beyond an Iran Nuclear Deal” looking at how a potential agreement will impact the oil and gas sector.
CSIS on Demand
On Tuesday, CSIS hosted leading think tank experts for a discussion on Japanese–South Korean cooperation on North Korea policy and other issues in the region following the 50th anniversary of the normalization of diplomatic relations between the two countries. Watch it here.
Great report by Federal News Radio executive editor Jason Miller, who explores the growing complexity between data and information.
I Like It Like That
The Panama Canal’s expansion is almost complete. My friend Solly down in Panama has been keeping me posted and referred me to this official website that is tracking the expansion . I dig it.
Encore #2. The Grateful Dead were famous for multiple encores—that’s when they would really heat up and really wind down. I know of no better way to wind down their 50-year saga than with the encore you are about to see.
Music is a truly global language that knows no boundaries. Bob Marley’s producer Chris Blackwell once told me that you can go to any corner of this earth and people will know who Marley was and know his music.
The Grateful Dead might not be as global as Bob Marley. But watch this astounding video of musicians around the world performing “Ripple,” a song penned in 1970 by the Dead’s Jerry Garcia and Robert Hunter.
It’s a medley that includes artists you’ve heard of like Jimmy Buffett and David Crosby and a whole bunch from around the US and the world that you might not have ever seen. It was produced by the nonprofit “Playing for Change,” an organization “created to inspire, connect, and bring peace to the world through music.” It’s the perfect final encore for the Grateful Dead…Let their song fill the air and smile.
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