BitGou: Tuesday Morning Briefing: China sets up Hong Kong crisis center in mainland

Highlights

Tightening control over efforts to manage the upheaval in Hong Kong, the Chinese leadership has set up a crisis command center on the mainland side of the border and is considering replacing its official liaison to the restive semi-autonomous city, people familiar with the matter said. Read the Reuters Exclusive. Hong Kong leader Carrie Lam acknowledged on Tuesday that the record turnout in local elections won by pro-democracy candidates highlighted dissatisfaction with her administration, while appealing for an end to violent protests.

Former White House counsel Don McGahn must testify in the impeachment inquiry against President Donald Trump, a federal judge ruled on Monday, rejecting the administration’s assertion of immunity for officials by declaring that “no one is above the law.”

Malta government chief of staff Keith Schembri resigned on Tuesday, Prime Minister Joseph Muscat told reporters, as police continued their investigation into the 2017 murder of journalist Daphne Caruana Galizia. The alleged murder plot middleman Melvin Theuma was granted a presidential pardon on Monday in return for information he had given about the case.

The poison of anti-Semitism “sanctioned from the top” has taken root in Britain’s opposition Labour Party, Chief Rabbi Ephraim Mirvis said in an article published on Monday, warning the “soul of our nation is at stake” in next month’s election. But Labour has squeezed the governing Conservatives’ opinion poll lead to 11 points from 18 over the last week, a survey by Kantar showed on Tuesday.

Top trade negotiators from China and the United States held a phone call on Tuesday morning, China’s Commerce Ministry said, as the two sides try to hammer out a preliminary “phase one” deal in a trade war that has dragged on for 16 months. Completion of a phase one deal had been expected in November, but trade experts and people close to the White House said last week it could slide into the new year.

Environment

Greenhouse gas emissions surged to a record level last year and world temperatures could rise by more than twice the globally agreed warming limit if nothing is done, a U.N. report showed on Tuesday. The “Emissions Gap Report” is one of several studies released ahead of U.N. climate talks in Madrid next week aimed at spurring world leaders to limit climate change.

Governments face a struggle at a United Nations summit in Spain next week to inject momentum into efforts to curb global warming, dogged by lack of consensus, U.S. scepticism and disruptive protests demanding more action. Read the Reuters Factbox on what's at stake at this year's U.N. climate talks.

Flames ripped through brush and woodland on hills above the Californian city of Santa Barbara early on Tuesday, forcing some residents to leave their homes, authorities said. The blaze, dubbed the “cave fire”, started near East Camino Cielo and Painted Cave Road in the forest.

Reuters photographer Denis Balibouse spent years shooting fast-moving subjects in fast-breaking events – the winning goal in a Europa League soccer clash, the confrontation in an Extinction Rebellion street protest. Then he found himself facing a different kind of challenge - how to capture a much slower story, the century-long retreat of Switzerland’s glaciers in the face of global warming. Read his account.

Business

Alibaba's Hong Kong shares rise 6.6% on debut in heavy volume

Alibaba’s Hong Kong shares closed their first trading session up 6.6% from the issue price after this year’s largest stock sale. Shares worth HK$13.99 billion ($1.78 billion) were traded, according to Refinitiv data, making it the third biggest debut on record for the Hong Kong market.

5 min read

Fiat Chrysler, PSA tell employees they will sign merger agreement in coming weeks

Fiat Chrysler and Peugeot-owner PSA told their employees they would sign a binding merger agreement in coming weeks. FCA and PSA are in talks to finalize a merger that would create the world’s fourth-largest carmaker.

2 min read

It's not just trade hopes fueling the U.S. stocks rally

Wall Street stocks have leap-frogged over a host of concerns, including a stall in corporate earnings and political controversy in Washington, on their way to record highs this month. The prospect of renewed economic growth and favorable monetary policy have arguably played greater roles than trade optimism in fueling the rally in U.S. shares, some say.

5 min read

Looking For Holiday Buys? Try E-commerce ETFs

First the bad news for your wallet: Americans are slated to spend more than they ever have this holiday season - around $730 billion in November and December, according to the National Retail Federation. Now the good news: There is money to be made on the other side of that trade.

5 min read