US–China Competition in Micronesia Heats Up
Commentary
In late May, a state-linked Chinese company broke ground on the renovation of a World War II-era airstrip on Woleai, a remote atoll about 400 miles south of Guam. The project is part of Beijing's Southern Link strategy, which aims to connect Asia to South America through Pacific hubs designed for transit, logistics, and influence projection.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
GOP lawmakers uneasy about package to codify DOGE cuts ahead of House vote this week
Multiple Republican lawmakers are voicing concerns about backing a high-profile measure later this week to codify Elon Musk's DOGE cuts – raising questions about whether it can pass the House at all. Two Republicans – Reps. Mark Amodei of Nevada and Nicole Malliotakis of New York – separately told CNN they have concerns with the White House's push to defund the Corporation for Public Broadcasting. 'Still mulling,' Amodei said when asked if he would support the package of cuts. 'The impact on local PBS stations appears to be significant.' Other Republicans have heartburn about how it could cut the Bush-era program, PEPFAR, devoted to fighting HIV and AIDS globally. 'If it cuts PEPFAR like they're saying it is, that's not good,' GOP Rep. Don Bacon of Nebraska told CNN last week. House GOP leaders plan to put the package of cuts, totaling $9.4 billion, on the floor as soon as Thursday, according to two people familiar with the plans. But Speaker Mike Johnson will need near unanimity in his conference for the package to pass the House, where he can only lose three votes. Johnson said on Monday that he's 'working on' getting enough votes for the Department of Government Efficiency spending cuts package he hopes to bring to the floor this week. 'The only concern I heard initially was some wanted a little more specificity and detail on what was in the package,' Johnson continued. Asked how he would persuade members that wanted more specificity in the package, Johnson replied, 'I'm gathering up all their questions and we'll try to get them all answered. I mean, that's what we do in every piece of legislation.' If it can survive the House, it will face major obstacles in the Senate. Sen. Susan Collins of Maine told CNN on Monday that she has major misgivings about the global health cuts, including PEPFAR. 'I think we can change it. We're still figuring out what the set rules are,' Collins said. The White House sent its long-awaited spending cuts request to Congress as it seeks to formalize a slew of DOGE slashes to federal funding. The $9.4 billion package – known as 'rescissions' on Capitol Hill – would claw back previously appropriated government funding. The move to cancel the funding through Congress would insulate the administration from legal challenges related to its cuts to federal funding. Johnson said on Monday, 'We'd like to do multiple rescissions packages, and this first one I'm sure will be successful.' This initial request, however, is far more limited in scope than the more than $1 trillion in spending cuts that DOGE has promised. The lengthy time it took the White House to send over a first round of cuts underscores the uphill battle for even a Republican-led Congress to codify DOGE's work. CNN's Molly English contributed to this report.
Yahoo
36 minutes ago
- Yahoo
Posthaste: Why the Canadian dollar is going up when the economy is going down
A funny thing has been happening to the Canadian dollar lately. Despite evidence that the economy is weakening, the currency has been going up, not down, rising 3 per cent against the U.S. dollar since President Donald Trump's Liberation Day. That's not usually how it works, but some strategists think this is more than just a temporary overshoot. Desjardins Group expects the divergence will continue to widen in coming months, with the loonie rising to 74 cents U.S. by the end of this year and to almost 77 cents U.S. by the end of the next. It was trading up at 73.08 this morning. The forecast is based on the U.S. dollar losing strength rather than the Canadian dollar gaining it, said Mirza Shaheryar Baig, a foreign exchange strategist with Desjardins. The loonie's performance against other major currencies has not been stellar. 'Net-net, a strong loonie is the result of a shift in global capital flows leading to a broadly weaker U.S. dollar,' he said. Since Liberation Day the U.S. dollar has become positively correlated with stocks. 'In other words, it has lost its safe haven appeal. This matters because many Canadian institutional investors who did not hedge the currency risk on their U.S. investments are now being forced to raise their hedge ratios,' said Shaheryar Baig. The outlook for the U.S. economy is also weakening. Coming out of the pandemic, it grew faster than other economies, but that has changed. Expectations for U.S. growth have dropped and are now in line with other advanced economies, he said. The Organisation for Economic Co-operation and Development warned last week that Trump's tariff war will sap global growth in 2025 and it gave the United States the biggest downgrade among G7 nations. The OECD sees its growth slowing sharply from 2.8 per cent in 2024 to 1.6 per cent this year, and 1.5 per cent next. Trump's tactics to raise the income share of American workers is also unnerving investors, said Shaheryar Baig. Telling Walmart Inc. 'to eat the tariffs' and threatening Apple Inc. with duties on products made out of the country does not help boost the profits investors are looking for. 'To many investors, American capitalism now resembles Chinese 'common prosperity,'' he said. Desjardins admits its forecast has risks. America dodged a widely expected recession in 2023 and its economy could surprise again. Carry trade in the U.S. dollar, which has the highest deposit yields in the G7, could also revive, he said. The downside of a strong Canadian dollar against the greenback is that it makes exports more expensive, a drag on Canada's already fragile economy. Desjardins believes this will force the Bank of Canada to cut its interest rate another 75 basis points to 2 per cent this year. to get Posthaste delivered straight to your manufacturing sector has been slammed by tariffs, but now new data shows that services, which makes up a much bigger share of the economy, are suffering too. S&P Global's Services PMI for May shows this sector is not only in contraction, but is also the weakest of all 14 countries covered, said National Bank of Canada economists. Earlier last week S&P Global's manufacturing PMI put Canada as the lowest among 30 countries. 'That's dead last in manufacturing and dead last in services, leaving Canada as clear outlier in this sample of key peers,' said National. Prime Minister Mark Carney will be in Toronto today to make an announcement related to 'defence and security priorities.' Today's Data: United States wholesale trade What is the bond market and why is everybody so worried about it? The robots are coming! 10 predictions on what AI means for your mortgage and home Canada's unemployment rate hits 7%, highest since 2016 outside the pandemic The bond market has been making headlines lately as Donald Trump's 'big beautiful' bill raises concern about the state of America's finances. But just what is the bond market, how does it work and why is it such a problem when investors get jittery about it? The Financial Post explains. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ These three provinces are most at risk as cracks appear in Canada's economy Homeowners up for renewal are in for a wake-up call Sign in to access your portfolio
Yahoo
41 minutes ago
- Yahoo
US exaggerating Huawei's AI chip achievements, China state media quotes CEO as saying
BEIJING (Reuters) -The United States is exaggerating Huawei's achievements when it comes to the Ascend AI chip, the chief executive of China's Huawei Technologies said, according to Chinese state media. Huawei's founder Ren Zhengfei said the company uses group computing to supplement single chips, according to an article by the People's Daily on Tuesday. The U.S. Commerce Department last month published guidance warning that companies risked violating U.S. export controls by using Huawei's Ascend AI chips, the Shenzhen-based tech company's most advanced semiconductor series.
