Thursday Briefing: China fumes over Australia's nuclear sub pact with U.S. and Britain

Thursday, September 16, 2021

by Linda Noakes

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France says Biden acted like Trump to sink its defense deal with Australia, the first all-civilian crew launches to orbit, and why China Evergrande's debt troubles pose a systemic risk

Today's biggest stories

U.S. President Joe Biden delivers remarks on a National Security Initiative virtually with Australian Prime Minister Scott Morrison and British Prime Minister Boris Johnson, inside the East Room at the White House, September 15, 2021. REUTERS/Tom Brenner

WORLD

The United States, Britain and Australia announced a new security partnership for the Indo-Pacific in a move hailed by regional allies but denounced by China as intensifying an arms race in the region. France accused U.S. President Joe Biden of stabbing it in the back and acting like his predecessor Donald Trump after Paris was pushed aside from a lucrative defense deal that it had signed with Australia for submarines.

French President Emmanuel Macron said that French military forces had killed Islamic militant Adnan Abu Walid al-Sahrawi, the leader of Islamic State in the Greater Sahara.

Hezbollah began bringing Iranian fuel into Lebanon via Syria, a move the Shi'ite Muslim group says should ease a crippling energy crisis but which opponents say risks provoking U.S. sanctions.

Thousands of Salvadorans took to the streets to protest against President Nayib Bukele, who they accuse of a power grab aimed at weakening democratic institutions and consolidating his grip. A the heart of their complaints is the recent law making bitcoin legal tender alongside the U.S. dollar and the firing in May of the judges on the constitutional panel of the Supreme Court.

Sporting dance moves on TikTok videos in his signature neon turbans, the leader of Canada's left-leaning New Democratic Party, Jagmeet Singh, is poised to recover from a 2019 election stumble and strengthen his position as kingmaker in the country's next government.

Asylum-seeking migrants walk near the International Bridge between Mexico and the U.S. in Del Rio, Texas, September 15, 2021. REUTERS/Go Nakamura

U.S.

U.S. authorities arrested more than 195,000 migrants at the Mexican border in August, according to government data, deepening the humanitarian and political challenge confronting Biden to curb the high numbers.

Republican lawmakers in Pennsylvania voted to subpoena the state's top election official in a review that joins widely criticized efforts in other battleground states aimed at fueling doubts about the 2020 election.

A former U.S. Marine from Florida became the latest defendant associated with the Oath Keepers militia group to plead guilty to criminal charges related to the January 6 Capitol riot. Workers have begun installing a fence around the Capitol ahead of a protest scheduled for September 18, and police asked the National Guard to be ready to help with security.

Biden threw his support behind the top U.S. military officer, Mark Milley, a day after a new book said he went around civilian leaders to place secret calls to his Chinese counterpart over concerns about then-President Donald Trump.

BUSINESS

China Evergrande Group's main unit, Hengda Real Estate Group, applied to suspend trading of its onshore corporate bonds following a downgrade, as the country's No.2 property developer wrestles with a liquidity crisis. We explain how China Evergrande's debt troubles pose a systemic risk.

Shares of Roger Federer-backed On Holding jumped more than 47% in their debut on the New York Stock Exchange, valuing the shoemaker at about $11.35 billion. With plenty of rivals on its heels and potential political headwinds in China, it may be priced for a sprint, not a marathon, says Breakingviews columnist Karen Kwok.

Cisco Systems forecast that within four years, about half its revenue will come from software and other recurring sales, but its chief financial officer told Reuters high chip prices in its hardware business will keep pressuring overall profits.

A New Jersey state treasury official said it is set to divest $182 million in Unilever stock and bonds held by its pension funds over the restriction of sales by the consumer giant's Ben & Jerry's ice cream brand in Israeli-occupied Palestinian territories. Ben & Jerry's said selling its products there was "inconsistent with its values."

General Motors recommended that Chevrolet Bolt electric vehicle owners parking in decks do so on the top floor or on an open level, at least 50 feet away from other vehicles, citing potential fire risks. GM in August widened its Bolt recall to more than 140,000 vehicles to replace battery modules.

Quote of the day

"I am literally begging. Diplomats are willing to become refugees"

Afghan diplomat in Berlin

Afghan envoys marooned abroad after Taliban's sudden return

Video of the day

Olympic gymnasts blast FBI for botched Nassar probe

Olympic gymnast Simone Biles held back tears as she told lawmakers how the FBI and U.S. gymnastic and Olympic officials failed to stop the sexual abuse that she and hundreds of other athletes suffered from former doctor Larry Nassar.

And finally…

First all-civilian crew launched to orbit aboard SpaceX rocket ship

A billionaire e-commerce executive and three less-wealthy private citizens chosen to join him blasted off from Florida aboard a SpaceX rocket ship and soared into orbit, the first all-civilian crew ever to circle the Earth from space.

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