Jun 29, 2017

GE's new Indian factory shows globalization in retreat

Donald Trump isn't the only world leader making hey from protectionist rhetoric and policy — more than 800 new protectionist trade measures have been implemented around the globe since November 2008, including many "Buy American" provisions signed into law by President Obama. The Wall St Journal reports that this dynamic is forcing companies like GE to build factories abroad to win contracts, even if their U.S. operations are more efficient.

One example is a $2.5 billion contract the manufacturer won from Indian Railways, which the company says it couldn't have won without first building a factory complex there in 2014. And if it wanted what is now one of GE Transportation's largest-ever contracts, building a second facility in the remote town of Marhuara, India — a location handpicked by a powerful Indian politician for development reasons — was its only choice.

Why it matters: Once poor countries like China, India, and Indonesia are building infrastructure and human capital necessary to handle sophisticated manufacturing, and they are demanding that multinational firms hire domestically if they want to sell domestically.

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O'Brien rejects intelligence report of Russia effort to re-elect Trump

National Security Adviser Robert O'Brien. Photo: Chris Usher/CBS via Getty Images

White House national security adviser Robert O'Brien repeatedly rejected on ABC's "This Week" an assessment from a congressional briefing led by the Office of the Director of National Intelligence that Russia is interfering in the 2020 election to help President Trump get re-elected.

Why it matters: The report put the Trump administration under fresh scrutiny in regard to steps it has been taking to combat the kind of interference that the U.S. encountered in 2016.

Go deeperArrowUpdated 20 mins ago - Politics & Policy

Italy becomes site of largest coronavirus outbreak outside of Asia

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The novel coronavirus has spread to more nations as South Korea and Italy step up emergency measures in their countries amid rising case numbers on Sunday.

The big picture: COVID-19 has killed at least 2,462 people and infected almost 79,000 others, mostly in mainland China. South Korea increased the infectious disease alert to red, the highest possible, as its case numbers jumped to 602 and the death toll to five. Italy's government announced emergency measures as it confirmed a spike from three to 132 cases in matter of days, making it the largest outbreak outside of Asia.

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Iranian state TV: Hardliners win landslide victory in low-turnout election

Photo: Iranian Supreme Leader Press Office/Handout/Anadolu Agency via Getty Images

Iranian state TV announced Sunday that hardliners won a landslide victory in the country's parliamentary elections two days ago, including all 30 seats in Tehran, AP reports.

Why it matters: Voter turnout in the election only reached 42.57%, according to Iran's interior ministry, the first time turnout dipped below 50% since the 1979 Islamic Revolution. The low turnout may signal dissatisfaction with the Iranian government and the election system.

Go deeperArrow2 hours ago - World