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U.S. Getting Little Help From Mexico Amid Crisis

U.S. Getting Little Help From Mexico Amid Crisis

Your unbiased daily news brief

James Kratch
July 10, 2024

Good Wednesday morning. A hypercar that can reach a world record 311 mph is closer to becoming a reality. Two hurdles remain: Finding a suitable testing track and identifying rubber tires that can withstand the necessary wear and tear. Have a great day!

In Today’s Brief

James Inhofe: Dies at 89
Haiti: Major facility secured
Biden: Weathering the storm?
BYD: Chinese EV maker expands
Shrek 5: Plans announced

... and more

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Top Tips

1) Pulling back

Mexico's efforts to keep opioids from crossing the southern border have plummeted.

The news: Mexican federal forces only seized 286 pounds of fentanyl in the first half of 2024. That is 94% less YoY after Mexico seized over 5K pounds in 2023, despite U.S. pressure for help amid a national opioid crisis that sees about 70K overdose deaths annually.
Different emphasis: Methamphetamine seizures have become a focus in the meantime. Mexico’s Army and National Guard seized 168 tons of meth in the first six months of this year after nabbing over 400 tons last year. The meth trade is considered a bigger domestic issue for Mexico than fentanyl; feuds between rival drug cartels have also helped generate more leads for raids.
Big picture: Outgoing Mexican President Andres Manuel Lopez Obrador has denied his country produces fentanyl -- despite clear evidence to the contrary -- and written the epidemic off as a American problem. He has also been criticized for his handling of cartels. Incoming President Claudia Sheinbaum is expected to continue her mentor's approach when she takes office in October.

2) On the way

The Federal Reserve is not ready to cut interest rates, but that may change soon.

The news: Fed Chairman Jerome Powell testified before the Senate yesterday (he will appear before the House today). He reiterated the central bank needs to see more progress toward its goal of 2% inflation before cutting rates. But progress has been made against inflation, Powell said, and the labor market is no longer overheated.
Cause for concern: Powell conceded waiting too long to cut rates could have a negative impact on economic growth. While the Fed does not want to rush into cuts prematurely, he said it does not want to change policy too late or with less effect than is needed.
Big picture: Major indexes closed mixed (Dow -0.12%, Nasdaq +0.14%, S&P 500 +0.07%) following Powell's testimony. Most analysts interpreted his comments as another data point suggesting a rate cut could come in September. Powell has stressed the bank is above politics, but Democrats will likely pressure for cuts ahead of Election Day while Republicans will likely be less inclined.

3) Special relationship

The U.S. government has overruled a United Kingdom court on disputed, but technically British, soil.

What happened: A British Indian Ocean Territory court was scheduled to hold a hearing on whether Sri Lankan migrants are being unlawfully detained on Diego Garcia, a small island that hosts a joint U.S.-UK military base. U.S. officials abruptly withdrew access consent for lawyers and the BBC due to "security and operational concerns."
Key context: Several dozen asylum seekers have been stuck on the island, mostly in a confined area, for almost three years after arriving via boat. The United Nations has concluded they are being unlawfully detained, while U.S. and UK officials say they cannot be supported on the island and a third nation is needed to take them in.
Need to know: Diego Garcia is part of the Chagos Islands in the Indian Ocean. The UK took control of the chain from in 1965; former colony Mauritius maintains the islands belong to them and the United Nations has ordered the UK to end its "unlawful" possession. But while Diego Garcia is a British territory, the U.S. controls most of the island and has the ability to determine access.
Big picture: Efforts to reschedule the hearing are ongoing, with the UK working with the U.S. to faciliate it. The UK renewed talks with Mauritius last year. The base is considered key to U.S. military objectives in the Indo-Pacific region, but there are fears the UK's dispute could open the door for Chinese influence to rise.

Quick Tips

U.S. News

Former Oklahoma Sen. James Inhofe died at 89. The Republican was one of the most conservative members of the upper chamber, but was known for his bipartisanship; he was a defense spending advocate and climate change skeptic (More)
U.S. Deputy Marshals shot an armed carjacker outside Supreme Court Justice Sonia Sotomayor's Washington residence. The incident occurred last Saturday morning when the justice was not home; the suspect suffered non-life-threatening injuries and the officers were not hurt (More)
Colorado State University's hurricane season forecast has been revised upward. Meteorologists now expect 12 hurricanes and six major storms following the severity of Hurricane Beryl, which reached Category 5 status and killed at least 14 (More)

World News

Haitian officials said they have regained control of the nation's largest hospital. Prime Minister Garry Connille said the facility, which sits near the national palace, resembles a war zone after police overtook armed gangs amid ongoing violence in the Caribbean nation (More)
Air pollution can significantly decrease the success rate of IVF treatment, according to a new study. Researchers in Australia found pollutants can reduce fertility as much as 40%; almost 7M people died of air pollution in 2019 according to the World Health Organization (More)
An American man was found in Peru, 22 years after he was killed in an avalanche. William Stampfl's body and clothing was preserved in ice on Mount Huascaran, according to officials; one of his climbing partners remains missing (More)

Campaign News

President Joe Biden's standing as the Democratic presidential nominee appeared to stabilize somewhat yesterday. Only one additional lawmaker -- New Jersey Rep. Mikie Sherrill -- called for him to drop out after congressional caucus meetings (More)
Russia has begun attempts to meddle in November's elections, according to U.S. intelligence officials. Kremlin operatives are using social media and targeting public opinions in battleground states; undermining support of Ukraine is a focus (More)
Former South Carolina Gov. Nikki Haley released her delegates to vote for former President Donald Trump at next week's Republican National Convention. Haley, who was Trump's UN Ambassador, will not attend the event (More)

Business & Markets

Chinese electric vehicle manufacturer BYD will build a $1B plant in Turkey. The company is vying with Tesla to be the world's biggest EV producer; it is also building a factory in Hungary (More)
Disneyland's largest labor unit will hold a strike authorization vote. A work stoppage would impact 14K cast members at the California theme park; negotiations on wages and other issues have been ongoing since April (More)
Goldman Sachs bought a majority share of engineering firm TAIT, which designed Taylor Swift's Eras Tour stage. Terms were not disclosed, but the firm reportedly valued itself at $1.3B (More)

Entertainment & Sports

Shrek 5 is in development and will hit theaters in 2026. Mike Myers, Cameron Diaz and Eddie Murphy will all reprise their voice roles; it will be the first installment in the animated film series since 2010 (More)
Texas QB Arch Manning will be in the College Football 25 video game. The nephew of Eli and Peyton Manning initially declined to participate in order to focus on his second collegiate season (More)
New York prosecutors said Harvey Weinstein may face new sexual assault allegations. The disgraced Hollywood producer's 2020 rape conviction in the state was overturned in April; new witnesses will be presented to a grand jury before a retrial (More)

Quick Hitters

Feel Good: When her flight to Florida was canceled, a Pennsylvania woman who had recently ended breast cancer treatment decided to go home. She stopped and bought a lottery ticket on the way back — and won $5M.
Go Deep: Kids who attend childcare tend to get sick. A lot. Here are some tips for parents to keep their children (and themselves) healthy as we head into the fall and winter.
Be Well: Experts say hiking is tremendously beneficial for your health. Here is a look at the activity's benefits and what differentiates it from traditional walking.
Wise Wisdom: Benjamin Franklin traveled extensively. Here is what the "First American" learned on his journeys and how it can inform our treks today.
Life Hack: Most washing machines provide a litany of cleaning cycles. But a laundry expert says you only need to use one, no matter what you put into the wash.
OPTIMIZE ME: Researchers “found convincing evidence that higher intake of ultra-processed foods was associated with 50% increased risk of cardiovascular disease-related death, a 48% to 53% higher risk of anxiety and common mental disorders, and a 12% greater risk of type 2 diabetes.”

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Electric cars are extremely quiet. Too quiet in some cases.