Tensions Flare Between the U.S. and Iran After Oil Tanker Attacks
Whatever you and your employees are working for ADP, designing better ways to help you achieve it from HR talent, and time management to benefits and payroll. That's ADP. Always designing for people. Sarah Sanders will leave the White House at the end of the month. Rumors have been rampant for months that Sarah would be leaving. It's very grueling job and devote today at a V W plant, and Chatanooga, Tennessee has big implications for the car industry is full become a union Platt, that would send the signal throughout the south last attacks in the Gulf of Oman, escalate tensions between the US and Iran. This is what's news from the Wall Street Journal on Kim Gittleson. Let's get started. Now, before we get into our main story of the morning, the fallout from yesterday's attacks onto oil tankers in the Gulf of Oman. Here's what you missed. White House press secretary Sarah Sanders is stepping down. She'll leave her job at the end of the month to return to Arkansas, the move was, of course announced in a tweet by President Trump late yesterday from Washington, Vivian Salomo has more in the eyes of the president. I will say that, that the, the, the successor has big shoes to fill President Trump was very fond of Sarah Sanders is very fond of Sarah Sanders. I should say he believes that she was an effective person to communicate his message, even if the press briefings got fewer, and fewer Sarah was taken into the fray more and more. She was really given such incredible access to the president and his daily operations his dealings he would often. Call her into meetings that he was having to. Her advice on something or to ask her to help him out with something. And so she really became more than a press secretary over the course of last couple of months, and certainly when the president stood at an event later, after his tweet went out the president was hosting an event at the White House on criminal Justice reform, and he called Sarah up to the stage, Sarah herself got pretty choked up, talks about being a mom, and how that's the most important job in her life. And this one was second to that, and how she really intends to spend more time with her kids, but you could tell even when President Trump delivered his remarks about Sarah, that he felt he was really losing quite an asset to his administration and Hong Kong's status, global financial center may be under threat. This has to do with the proposed law that would allow those accused of serious crimes to be extradited to mainland China, the government's decision to press ahead with the law. Spurred riots this week that led to violent clashes with the police from Hong Kong. Mike Byrd explains. I think investors are worried about Hong Kong sort of legal integrity. It's for a long time been a financial center, so Hong Kong's well-placed in terms of being pulled the access to southern China. It's massively benefited from China's rise as an economic power, but also it's got its own side of prosperity, which has been, you know, this sort of relatively open. It calls self Asia's world city, the access to finance has been notice smallpo- of why the city is rich in the first place and a large part of that has been based on, it's got a different legal system to mainland China since nineteen Ninety-seven, it's had a system well, framework called one country, two systems to legal frameworks, one in mainland China. I'm one in Hong Kong despite them being different countries, and that was designed in some ways to keep international investors relatively happy. Keep international financial institutions relatively chilled out is a common law system. It's very recognizable. If you're. An expert in British law banks understood it, they knew that it wouldn't be subject to sort of political vagaries, and things like that things that bankers and fund managers don't really like and yeah. That Stephanie under threat now for the knee law and another day, another historic sports victory. Here's a taste from last night's NBA finals where the Toronto Raptors won their first championship with a game six defeat over Oakland's Golden State Warriors. Toronto Canada, we the north or now we the champions read this to say it was joyous scene in Toronto where fans chanted the team slogan late into the night. We write that for most of the teams history, a championship seemed less like a dream, and more like a hallucination since we can't resist a good, fun fact. Here's some trivia about their name when the team was created the owners asked all of Canada for ideas since it was nineteen Ninety-four Jurassic Park was in its first heyday and somehow that meant that it made perfect sense to name an NBA team from Toronto after a dinosaur. Now, our main story this morning, the fallout from yesterday's attack onto oil tankers in the Gulf of Oman, late yesterday. The US military is central command released, a video that it says shows Iranian forces removed in mind from one of the two ships earlier secretary of state. Mike Pompeo blamed Iran for the attacks the assessment of the United States government that the Islamic Republic of Iran is responsible for the attacks that occurred in the Gulf of Amman, these unprovoked attacks present a clear threat to international peace and security, a blatant assault on the freedom of navigation and an unacceptable campaign of escalating tension, but run, however, Iran has denied responsibility. And instead suggested the attacks might be the work of actors seeking to draw the region into chaos, there are a lot of outstanding questions, but the attacks have already led oil prices to spike something we'll discuss later in our market segment. And they've. Raised concerns about a crucial shipping route. Our reporter Ben WAFA Khan is in London. He's on the street, so apologies for the sound Ben wa first things first, what's the latest about these attacks? What do we know? This stage. We have to rely, I mean, we know there was a damage from a potentially the project title or you know something that hate. Coast. That happened in the Gulf in the man, either in Iranian waters, very close by so tell me a little bit more about where the attack took place. It's a key shipping route. So why are talks in this region so worrisome? What is because it's one third of the world's seaborne own exports going that would and so, so very cheap prolific all to global markets. I mean remember US shell is very is very rich all patched, but he's also expensive to extract. So if it's one eighty very cheap oil you go you go to the personal. And this is the second attack. We've seen in the region. Why are they happening? Do we know what's behind this? She consensus starts, someone who is covering these two attacks will carry these two attacks. I mean but then she these two would be the same player. I mean, the emeritus of said they were state actors based on the modest Burundi, and it would be Oviously someone that wants to do two things I showed these routes is very vulnerable and is easy to disrupt and to potentially create and his relation toward the war beyond that it's very difficult to final assessment on who did it. So if we're not sure why did secretary of state Mike Pompeo seem so certain yesterday when he said that Iran was behind these attacks. What they the main who obviously, is that a lot of people, I mean, the Iran denies being behind this attack. And a lot of people are skeptical. The state that because the US obviously, is an initial very strong agenda towards Iran. So what is expected and even cold for, including by the US and, and the Saudis. Typically is an international investigation. I mean, already in the case of Fujiwara, the US asks the French and others to investigate so that they would provide would be seen as an internationally recognized commission. If both sides have said, they don't want more, but Iran and the US, and we're waiting for this international conclusion, how safe is this straight have have has anyone made any attempt to sort of reroute their oil shipments? We noted where any attempts so far, too. I mean what could happen is more delays resident rerouting because at the end of the day, it's a very profitable business and remember doing the first Gulf war. Actually doing the war between Iran and Iraq vessel shipments continue, despite the fact, several vessel Rex three completely destroyed not by the US during the war. So I think it's a risky business that people will be ready to take. You can find our full coverage of the fallout from the attacks and the investigation into who's behind them on WSJ dot com. Here. The extraordinary secrets of how to thrive in disrupted world old rules of merged inaugurating creeks anymore. So what works making a wise proven, pivot to the future, will I am and Omar Abba, subscribe wherever you get your podcasts. On to markets, like I mentioned, we'll stay with the fallout from yesterday's attacks. But now turn our attention to oil prices, they spiked in the wake of the attacks just a week after US oil briefly entered a bear market. That's when prices fall twenty percent from peak to explain what's going on our European finance editor Alex rang goes has more oil prices are very, very cheap, because there's just a ton of oil, the US had reported the day before these attacks that the inventories of oil or you know, it was very high and the increase in prices after the attack was as much as four percent, which in the grand scheme of things isn't a lot. You know, oil market is a big global market. So when there's a disruption in one region and other region can pick up the slack. And right now, the US is the place where there's tons of oil. And so, you know, prices will go up a little bit on these risks, but it's not something necessarily unless they get a lot lot worse that will cause oil prices to necessarily go through the roof or anything. And now the skied, here's what to look forward to later today. The United Auto Workers union is taking another shot at organizing Volkswagen's factory, and Chattanooga Tennessee. The vote today comes five years after a similar measure, failed, even with the support of Volkswagen. The plant is the German carmakers only non unionized factory outside of China from Berlin. William Boston has more over the past decade, or so the foreign manufacturing auto manufacturing companies have gone from being a niche player in the United States to actually of making more automobiles in the United States than the big three Detroit automakers the other side of this is that none of the foreign automakers in the United States, are unionized, and that means that half of the manufacturing of automobiles in, in the United States is taking place non union shops. And so if folks hug were to become a union class. That, that would send a signal throughout the south and potentially, you know, have a ripple effect in all of these plants begin a kind of a chain reaction where one plant after the other becomes a U A W factory that, look, the politicians in south are really afraid of that VW would send a signal that would sort of begin a movement that was breakdown. They're very staunch anti union policies which they feel would make the south of much less attractive place for businesses to invest and Facebook is preparing to unveil its very own crypto currency next week with the help of some pretty big names, visa PayPal MasterCard and Uber. Those companies along with venture capitalists. And telecommunications firms have all tentatively signed on to invest about ten million dollars. Each in the coin according to people familiar with the matter. The crypto currency will be governed by a consortium, and it will be pegged to a basket. Of government issued currencies. That's in the hopes of preventing wild price swings. The coin which will be known as libra is set to launch next year Facebook declined to comment. But we want to know would you use it EMAS? What's news, all one word, wsJcom or tweet us at WSJ podcasts? That's what's news from the Wall Street Journal. Thanks for listening and have a great weekend.