Thursday, 19 February 2026

Another Iran War? The Best Laid Plans? Goodbye GB Plc?

Baltic Dry Index. 2063 -32     Brent Crude 70.46

Spot Gold  5014                        Spot Silver 77.82

US 2 Year Yield 3.47 +0.04

US Federal Debt. 38.705 trillion US GDP 31.167 trillion.

Reasonable men are not reasonable when you're in the bubbles which have characterized capitalism since the beginning of time.

Paul Samuelson

We open as usual with the stock casinos, but with America’s latest new war preparations against Iran now complete, is a diplomatic peace deal even possible without President Trump and the USA looking like they just blinked?

Everyone is betting on a quick Iran war and fast USA victory, with very little impact on crude oil prices. Well maybe, but what if the crude oil price surges?

“The best laid schemes o’ mice an’ men. Gang aft a-gley.”

South Korea’s Kospi jumps to record high as regional rally tracks Wall Street gains

Published Wed, Feb 18 2026 6:35 PM EST

South Korea’s Kospi hit a fresh record high Thursday, as the region tracked gains on Wall Street and several bourses in Asia resumed trading after the Lunar New Year holiday.

The Kospi index jumped 2.84% to a fresh record high, with index heavyweights Samsung Electronics and SK Hynix up 4.14% and 1.48%, respectively.

“After nearly doubling in 2025, Korea is again the leading market in Asia Pacific,” Goldman Sachs wrote in a recent note. “While many investors are asking if they should reduce positions after such strong performance, we think it is still too early.”

The investment bank forecasts 120% growth for Korean equity markets in 2026, after rising 36% in 2025.

The small-cap Kosdaq advanced 4.68%.

Australia’s S&P/ASX 200 rose 0.93%.

Hong Kong and mainland China markets remain closed for the Lunar New Year break.

Overnight in the U.S., the S&P 500 moved higher, supported by gains in key technology names, as traders weighed the release of the minutes from the Federal Reserve’s most recent policy meeting.

The broad-based index climbed 0.56% to end at 6,881.31, while the Nasdaq Composite added 0.78% to settle at 22,753.63. The Dow Jones Industrial Average added 0.26% to close at 49,662.66.

Asia-Pacific markets: Kospi, Nikkei 225, Nifty 50

Stock futures are little changed after major averages post gains; Walmart earnings loom: Live updates

Updated Thu, Feb 19 2026 7:25 PM EST

Stock futures traded near the flatline Wednesday night after the major averages posted a winning session. Investors also looked ahead to quarterly results from retail giant Walmart, due in the morning.

Futures tied to the Dow Jones Industrial Average lost 43 points, or 0.09%. S&P 500 futures slipped 0.09%, while Nasdaq 100 futures dropped 0.1%.

In the regular session, the S&P 500 closed higher by nearly 0.6%, while the Nasdaq Composite added 0.8%. The 30-stock Dow gained 129 points, or about 0.3%.

The indexes were buoyed by gains across the “Magnificent Seven” technology stocks and strength in financials and energy names. Nvidia added 1.6%, while Amazon rose 1.8%.

“A rebound in mega‑cap stocks, along with a pause in the rotation and broadening theme that has defined market performance this year, would not be surprising in the weeks ahead,” said Edward Jones senior global investment strategist Angelo Kourkafas.

“Selling has been broad and indiscriminate, and in some cases, valuations may already reflect a substantial degree of disruption risk relative to current fundamentals,” he added.

To be sure, Kourkafas said that even as pessimism in the tech sector has likely become overstated, the prospect of the group “regaining sustainable leadership remains doubtful” as the macroeconomic environment continues to favor cyclical stocks.

Geopolitical volatility on Wednesday pushed up oil prices by more than 4%. The move happened after Vice President JD Vance said that Iran did not address core U.S. demands in nuclear talks this week. He said that President Donald Trump maintains the right to use military force if diplomatic efforts do not stop Iran’s nuclear program. 

Elsewhere, investors weighed minutes from the Federal Reserve’s January meeting, which reflected a divide among central bank officials on the future outlook for monetary policy.

On the earnings front, Walmart’s fourth-quarter report is due on Thursday morning. The company’s results are often viewed as a bellwether for the U.S. economy and consumer spending. Shares of Walmart have been on a tear in 2026, up more than 13%. The retailer’s market capitalization recently put it in the $1 trillion club, which means the stock’s reaction could set the tone for the major averages.

Traders will also be watching for weekly jobless claims data due Thursday, as well as the pending home sales report. The major event in the way of economic releases this week will be Friday’s release of the personal consumption expenditures price index, a preferred inflation gauge for the Fed.

Stock market today: Live updates

U.S. Military Moves Into Place for Possible Strikes in Iran

President Trump has given no indication that he has made a decision about how to proceed, as diplomatic talks continue.

Feb. 18, 2026

The rapid buildup of U.S. forces in the Middle East has progressed to the point that President Trump has the option to take military action against Iran as soon as this weekend, administration and Pentagon officials said, leaving the White House with high-stakes choices about pursuing diplomacy or war.

Mr. Trump has given no indication that he has made a decision about how to proceed. But the drive to assemble a military force capable of striking Iran’s nuclear program, its ballistic missiles and accompanying launch sites has continued this week despite indirect talks between the two nations on Tuesday, with Iran seeking two weeks to come back with fleshed out proposals for a diplomatic resolution.

Mr. Trump has repeatedly demanded that Iran give up its nuclear program, including agreeing not to enrich any more uranium. Prime Minister Benjamin Netanyahu of Israel, whose country would potentially take part in an attack, has been pushing for action to weaken Iran’s ability to launch missiles at Israel.

Israeli forces, which have been on heightened alert for weeks, have been making more preparations for a possible war, and a meeting of Israel’s security cabinet was moved to Sunday from Thursday, according to two Israeli defense officials.

Many administration officials have expressed skepticism about the prospects of reaching a diplomatic deal with Tehran. The indirect talks on Tuesday in Geneva ended with what Iran’s foreign minister said was agreement on a “set of guiding principles.” U.S. officials said the two sides made progress but added that big gaps remain.

Mr. Trump has repeatedly threatened that Iran must meet his terms or face severe consequences. But another attack, eight months after a 12-day war in which Israel and the United States assaulted military and nuclear sites across Iran, would potentially carry substantial risks, including that Iran would respond with a ferocious barrage of missile strikes on Israel and on U.S. forces in the region.

For a president who ran for office promising to keep the United States out of wars, Mr. Trump is now considering what would be at least the seventh American military attack in another country in the past year, and his second on Iran. Last June, after striking three Iranian nuclear sites, Mr. Trump declared that Iran’s nuclear program had been “obliterated.” But now he is considering sending U.S. military back to continue the job.

The U.S. military buildup includes dozens of refueling tankers, rushed to the region by United States Central Command, more than 50 additional fighter jets, and two aircraft carrier strike groups, complete with their accompanying destroyers, cruisers and submarines, U.S. officials said.

The aircraft carrier U.S.S. Gerald R. Ford, fresh from the Caribbean where it was part of the naval fleet pressuring the Venezuelan government of President Nicolás Maduro, was approaching Gibraltar on Wednesday as it made its way to join the aircraft carrier U.S.S. Abraham Lincoln in the region.

More

As Trump Weighs Possible Iran Strikes, U.S. Military Moves Into Place - The New York Times

In other less war mongering news, higher US interest rates ahead?

Fed Displays a ‘Hawkish Tilt’ Amid Inflation Fear

February 18, 2026 at 10:56 PM GMT

Donald Trump has spent his second term pushing for Federal Reserve rate cuts he hopes will reignite an economy that a few years ago boasted unemployment lower than at any time since the Nixon administration.

A lot of that effort has focused on trying to push out the central bank’s current members with insults, threats, attempted firings and even an unprecedented criminal probe by his Justice Department. But even now, Fed officials are signaling renewed worries over inflation, with “several” policymakers suggesting the central bank may need to raise interest rates again.

“Several participants” said they would have preferred a statement that surfaced the possibility of raising the funds rate “if inflation remains at above-target levels,” minutes of the central bank’s Jan. 27-28 policy meeting showed.

That could put the Fed on a collision course not only with Trump, but his handpicked successor to be the next Fed chair. “The minutes carry a distinctly more hawkish tilt,” Gregory Daco, chief economist at EY-Parthenon, wrote in a note to clients. “This sets up an interesting dynamic if and when Kevin Warsh is confirmed as Fed chair.” David E. Rovella

Fed Displays a ‘Hawkish Tilt’ Amid Inflation Fear: Evening Briefing Americas - Bloomberg

Japan exports growth surges to over 3-year high, up nearly 17% in January, as shipments to China soar

Published Tue, Feb 17 2026 7:09 PM EST

Japanese exports climbed 16.8% year on year in January, sharply beating market expectations and growing at their fastest rate since November 2022 as shipments to Asia and Western Europe surged, government data on Wednesday showed.

Growth was higher than December’s 5.1%, and beat Reuters-polled economists’ estimates of 12%.

Value of exports to China, Japan’s largest trading partner, jumped 32%, after rising 5.6% in December at a time when the two countries are locked in a diplomatic standoff over Prime Minister Sanae Takaichi’s comments over Taiwan.

Shipments to the U.S. fell 5%, after declining 11.1% in December. Washington is Japan’s second largest trading partner.

Region-wise, a near 26% jump in shipments to Asia and over 25% to Western Europe helped accelerate exports growth, and more than offset the 3.3% decline in North America.

Food, machinery and electrical machinery — which includes chips — were commodities that saw the sharpest growth, up 31.3%, 14.3% and 27.3%, respectively.

Transport equipment, which contributed over 20% to exports, climbed by 0.8%. The segment, which includes cars and auto parts and has been a key growth driver for Japanese exports, has come under pressure following U.S. tariffs.

Japan’s Nikkei 225 stock index rose 0.9%, while the broader Topix gained 1.26%. The yen marginally strengthened to 153.43 against the U.S. dollar, while yield on benchmark 10-year government bonds was was down 1 basis point at 2.119%.

Imports in January fell 2.5% year on year, compared with Reuters estimates of a 3% rise, and a 5.1% jump in the prior month.

The stellar growth in outbound shipments will be a welcome start to the new year after Japan’s exports growth declined to 3.1% last year, compared to the 6.2% rise seen in 2024.

The Japanese economy expanded by just 0.1% year on year in the fourth quarter, supported by private demand, but net exports shaved 0.8 percentage point off growth. For the full year, GDP grew 1.1% year on year, also weighed down by net exports.

Japanese shipments fell during the middle of 2025, hit by U.S. tariff worries, but saw a rebound toward the end of the year after a trade deal with the U.S. was announced that saw duties slashed to 15%.

The U.S. on Tuesday announced projects valued at $36 billion, according to a Reuters report, including an oil export facility in Texas, an industrial diamonds plant in Georgia and a natural gas power plant in Ohio, to be financed by Japan as part of its $550 billion U.S. investment pledge.

“Our MASSIVE Trade Deal with Japan has just launched! Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America,” U.S. President Donald Trump said in a post on Truth Social.

Last week, Japan’s Economy Minister Ryosei Akazawa was quoted by public broadcaster NHK as saying he hoped the initial projects would be finalized before Takaichi and Trump met.

Trump had announced the meeting with Takaichi just before the Feb. 8 Lower House election, which saw Takaichi lead the ruling Liberal Democratic Party to a landslide victory.

Japan exports growth surges nearly 17% in January as shipments to China surge

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Today, more UK PM’s Starmer socialism at work.

UK high street crisis as 151 companies collapse into administration

18 February 2026

The number of UK businesses entering administration has surged in recent months, with over 150 businesses collapsing between December and January. According to official figures from the Insolvency Service, the number of company administrations jumped by 41% to 151 between December and January. This number is 14% higher than the same period last year.

The spike reflects mounting pressures on retail and hospitality businesses, where rising costs, online shopping and subdued consumer spending have created a challenging trading environment. Several high street giants have entered administration since the start of 2026.

Some of these include Claire'sThe Original Factory Shop, footwear retailer Russell & Bromley and Revolution Bars owner The Revel Collective who all entered administration last month. Clothing brand Quiz and LK Bennett brand went into administration this month.

Game Retail has also confirmed its intention to appoint administrators, while TGI Fridays was sold in a pre-pack deal to a subsidiary of Sugarloaf, the firm behind the global brand. However, 16 TGI restaurants were closed, resulting in 456 job losses.

Fast-food chain Leon was also hit and filed for administration in December leading to the closure of 22 locations and cutting 244 jobs as part of a major restructuring.

Sarah Rayment, managing director and global co-head of restructuring at Kroll, said: "The key question at this point in the year is whether distress and insolvencies will continue to rise given the pressures facing UK businesses.

"There are signs of resilience in the economy, inflation has steadied and markets expect interest rate cuts later in the year, but the picture is far from uniform"

She added: "There is understandable concern across the high street economy, particularly retail, leisure and hospitality, where the debate around business rates reform adds to an already difficult trading environment.

"But the reality is that every sector will face headwinds this year."

Despite the recent surge in administrations, overall company insolvencies in January rose 4% month-on-month but remained 14% lower than a year ago, according to the new figures.

Other figures also show the scale of the challenge facing UK businesses. According to the latest analysis from full-service law firm Shakespeare Martineau, published on January 9, 1,631 UK businesses went into administration in 2025.

Although this represents a 5% drop compared with 2024, it remains 22% higher than in 2022.

UK high street crisis as 151 companies collapse into administration

UK packaging companies plunge into administration - only bought in 2023

18 February 2026

Three UK-based companies have plunged into administration as the number of collapsing businesses surges across the country. Beltline Capital, a Manchester-based firm incorporated in April 2023, bought manufacturing firms Leighton Packaging and First Packaging in the same year. But the business, which acquired the two assets through a "buy and build" growth strategy, appointed administrators on February 18, alongside its two acquisitions.

Beltine also reportedly bought Bury-based Expert Packaging Ltd in August 2024, with the help of a £2.25 million funding package from Arbuthnot Commercial Asset Based Lending. Expert Packaging doesn't appear to have filed for administration, but the deal - which was heralded as a "step change in the group's revenue and profit profile" at the time - doesn't seem to have achieved its desired result.

The Joint Administrators, the firm appointed to Beltline Capital, and Expert Packaging Ltd have been contacted for comment.

It comes amid a spike in administration filings across the UK, with the number of collapsed firms surging by over 40% in January, according to the Insolvency Service.

Official figures suggest that the number of company administrations jumped by 41% to 151 between December and January, and also marked a 14% year-on-year rise.

As well as impacting sectors such as manufacturing and construction, the trend has hit major high street retailers, including Claire's, The Original Factory Shop and Russell and Bromley.

Firms have come under increasing pressure in recent months from soaring wage costs and subdued customer spending, with business rates also set to surge higher in April following reforms announced in last November's budget.

Sarah Rayment, managing director and global co-head of restructuring at financial advisory company Kroll, said: "The key question at this point in the year is whether distress and insolvencies will continue to rise given the pressures facing UK businesses.

"There are signs of resilience in the economy, inflation has steadied and markets expect interest rate cuts later in the year, but the picture is far from uniform. The reality is that every sector will face headwinds this year."

UK packaging companies plunge into administration - only bought in 2023

Historic UK construction company plunges into administration - after 142 years

Employees and suppliers were left shocked by the sudden closure.

08:39, Wed, Feb 18, 2026 Updated: 08:42, Wed, Feb 18, 2026

A UK construction company has collapsed into administration after operating for 142 years. It comes as a wide range of businesses, including fashion retailers, pubs, and restaurants, are suffering from  financial challenges, forcing owners to shut shop. 

Jerram Falkus Construction firm suddenly shut down this week, with the notice of appointment of an administrator confirmed on Tuesday, February 17. People have been left shocked and confused by the news, as the closure seemed to come out of the blue.

One supplier told the Construction Enquirer: "We turned up at one of their jobs to make a scheduled delivery on Monday, and the gates were locked.

"Their people seemed in total shock as to what's going on."

The established family-run business had been operating across London and the South-East since 1884, working on projects between £2 million and a staggering £40 million.

More

Historic UK construction company plunges into administration - after 142 years | UK | News | Express.co.uk

Luxury UK chocolate maker collapses into administration – 40 years in business

18 February 2026

A luxury UK chocolate maker has entered administration after 40 years in business.

Marasu’s Petit Fours was founded in 1986 by patissiers Rolf Kern and Gabi Kohler, who wanted to make premium chocolates for elite establishments. It was acquired by the Prestat Group in 2006 and has since supplied Prestat, Fortnum & Mason, Selfridges, and Harrods.

It was London's largest producer of premium chocolates with an annual production of more than 300 tonnes from its 25,000 sq ft facilities in Park Royal but it has faced difficult market conditions recently.

Marasu’s appointed administrators on February 6, and the specific reason for its collapse is not yet known, with Alessandro Sidoli and Jessica Barker of Xeinadin Corporate Recovery Limited named as joint administrators.

It follows Prestat also going into administration with a deal set to see it sold to L’Artisan du Chocolat, which is owned by Polus Capital Management. This agreement was arranged before administrators were formally appointed and means Prestat is expected to continue as an online-only brand.

The luxury chocolatier, founded in 1902, shut its historic Piccadilly shop in central London last week, following mounting financial pressure from poor sales and soaring cocoa prices, reported the Express.

In recent years, the chocolate industry has struggled with global cocoa prices surging to record highs in 2024 and cocoa crops being hit by disease and extreme weather, including flooding and droughts, in key producing countries such as Ghana and the Ivory Coast, which together account for about 60% of the world's production.

The company also reportedly faced difficulties after attempting to expand its market using premium cocoa varieties such as Criollo, leaving it vulnerable to cheaper competitors.

The closure comes as part of a prepack administration deal that will see Prestat taken over by chocolate maker L’Artisan du Chocolat, which is owned by Polus Capital Management.

Prestat held two Royal Warrants and counted the Royal Family, including Princess Diana, among some of its most famous customers. In 2003, The Economist magazine even named it as one of the top three chocolate shops in the world.

The Piccadilly shop inspired Roald Dahl, who referenced Prestat’s truffles in his novel My Uncle Oswald. The store, which was one of the few to continue making its own chocolates, is also said to have inspired the fantastical sweet shop in Charlie and the Chocolate Factory.

Luxury UK chocolate maker collapses into administration – 40 years in business

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section Updates as they get reported.

Nvidia is partnering with major Indian VC firms in search for the country’s next AI start-ups

Published Tue, Feb 17 2026 10:51 PM EST

American AI chip darling Nvidia is expanding its partnerships in India, including with venture capital firms, as it bets on the country’s AI ecosystem that has drawn massive Big Tech investments. 

The company in statement on Wednesday said it was working with several venture capital firms, including Peak XV, Z47, Elevation Capital, Nexus Venture Partners and Accel India to identify and fund AI startups.

This comes as venture capital investors have been increasingly showing interest in India’s technology startups, with the country’s strong initial public offerings market providing lucrative returns.

India is currently holding an AI summit that has seen major tech CEOs as well as heads of states participate in the event. Nvidia top boss Jensen Huang was also expected to attend it but withdrew due to “unforeseen circumstances.”

More than 4,000 AI startups in India’s have already joined Nvidia’s global startup program, which helps tech startups build, scale, and go to market, according to the chip designer.

The world’s largest company by market cap also said it was collaborating with government agencies and research institutions, as well as continuing efforts to build the country’s domestic data centers.

Nvidia’s efforts are framed around New Delhi’s “IndiaAI mission,” aimed at strengthening the country’s AI capabilities and free up funding for its AI entrepreneurs.

More broadly, Prime Minister Narendra Modi’s government has set goals for India to grow into a global tech superpower. As of September last year, New Delhi had approved $18 billion worth of semiconductor projects as it looks to build a domestic supply chain.

Nvidia has also partnered with Indian cloud providers such as Yotta, Larsen & Toubro, and E2E Networks to provide its AI chip clusters and help build data centers in the country.

A New Delhi official reportedly said Tuesday that the country expects as much as $200 billion in investments for data centers over the next few years.

India’s Adani has announced plans to invest $100 billion toward renewable energy-powered AI-ready data centers. American tech firms including hyperscalers Amazon, Microsoft and Google have committed more than $50 billion toward AI infrastructure and chips in the country.

Meanwhile, Nvidia said it was also supporting India’s AI companies through its “NVIDIA Nemotron models” — a family of Nvidia AI models that organizations can use to build new chatbots, agents, and speech systems. 

These Nvidia models can be used by Indian companies to train new AI systems on India-specific data and language, aligning with the the country’s goal of build sovereign AI.

Sovereign AI refers to a country’s ability to build artificial intelligence based on its own infrastructure, data and industry, so that increasingly critical AI systems don’t depend on foreign providers.

Nvidia is partnering with major Indian VC firms in search for the country's next AI start-ups

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

Macroeconomics, even with all of our computers and with all of our information - is not an exact science and is incapable of being an exact science.

Paul Samuelson

Wednesday, 18 February 2026

EVs From Boom To Bust. USA From Boom To Bust? Fiat Dollar Crisis.

Baltic Dry Index. 2095 -05     Brent Crude 68.26

Spot Gold  4954                        Spot Silver 75.64

US 2 Year Yield 3.43  +0.03

US Federal Debt. 38.700 trillion US GDP 31.164 trillion.

“The way to maximize production is to maximize the incentives to production. And the way to do that, as the modern world has discovered, is through the system known as capitalism—the system of private property, free markets, and free enterprise.”

Henry Hazlitt

Will today’s roaring 20s end in another 1929 style bust? No say the US stock casinos, though the AI bubble may well prove them wrong.

Yes, says the non-partisan Committee for a Responsible Federal Budget who see US federal debt rising to 56 trillion within a decade and the USA entering a debt spiral where the interest of the debt rises faster than the USA GDP.

The west could still save the declining dollar reserve standard but happily, no one in Washington District of Crooks remotely cares. Fiat dollars or gold and silver anyone.

Arriving about the same time as the US debt spiral, the Great Western State Water Crisis as the falling Colorado River level fails to keep up with western demand. Unhappily, no one in Washington D.C. remotely cares, either.

Asia stocks rise despite lingering AI worries, oil down after U.S.-Iran talks

Asian stocks pushed higher on Wednesday despite the renewed artificial intelligence worries gripping international markets, while oil prices were under pressure after Iran touted progress in nuclear negotiations with the United States.

The New Zealand dollar sank after the central bank said monetary policy needs to remain accommodative for some time to support the economic recovery.

Japan’s benchmark Nikkei 225 index rose 0.93% to 57,090.14, poised to snap a three-day skid, while Australia’s S&P/ASX200 was up 0.5%.

Mainland China, Hong Kong, Singapore, Taiwan and South Korean were among markets closed for Lunar New Year holidays.

The positive start in Asia followed a lackluster session on Tuesday on Wall Street as investors grappled with the outlook for the AI boom.

Concerns that companies are over-investing, along with angst about the extent to which the nascent technology could disrupt labor markets, have fueled investor jitters in recent weeks.

In the U.S. overnight, The Dow Jones Industrial Average .DJI rose 0.07% to 49,533.19, the S&P 500 was up 0.10% at 6,843.22 and the Nasdaq Composite gained 0.14% to 22,578.38. The S&P 500 fell 0.88% initially before making up ground to close in positive territory.

The yield on benchmark U.S. 10-year notes was flat at 4.054% on Wednesday. The 30-year bond yield fell 0.4 basis points to 4.6788%.

“AI uncertainty remains a source of volatility, both in terms of the difficulty in assessing which AI companies will be the winners and losers but also what sort of impact will AI have in other companies and sectors of the economy,” NAB analysts said.

Brent and West Texas Intermediate crude oil futures were little changed on Wednesday at $67.42 and $62.32 per barrel, respectively, after both slid to close at more than two-week lows in the previous session.

Following talks in Geneva on Tuesday, Iran’s foreign minister said Tehran and Washington reached an understanding on main “guiding principles” towards resolving their longstanding nuclear dispute, easing worries about a military conflict near the Strait of Hormuz that could disrupt global oil supply.

Gold as 0.2% weaker to around $4,867 per ounce and silver was down by around the same margin to around $73.30 per ounce.

“Gold prices dipped as a stronger U.S. dollar weighed on the market, with declining U.S. Treasury yields providing little support,” ANZ analysts said.

“Investors remained uncertain amid subdued trading in Asia. Prospects of easing geopolitical tension with positive outcomes from the Iran-US talks in Geneva weighed on haven demand for gold.”

The U.S. dollar index, which measures the greenback against a basket of major peers, was flat in Asia hours at 97.12.

The traditional safe-haven currency held its ground as geopolitical risks kept markets on edge and investors awaited minutes from the Federal Reserve’s January meeting, due later on Wednesday, for signals on the path for interest rates.

The euro edged down 0.1% to $1.1844, while sterling stabilised at $1.3563 following a 0.5% slide in the previous session.

The New Zealand dollar slid 0.6% to $0.6014. The Aussie dollar eased 0.2% to $0.7075.

The yen firmed 0.1% to 153.12 per dollar.

Japan’s annual bond issuance will likely surge 28% three years from now due to rising debt-financing costs, Reuters reported on Tuesday, citing a finance ministry estimate.

Japan would need to issue up to 38 trillion yen ($248.3 billion) worth of bonds in the fiscal year starting in April 2029 to fill a hole from expenditures surpassing tax revenues, up from 29.6 trillion yen in fiscal 2026, the report said.

Asia stocks rise despite lingering AI worries, oil down after U.S-Iran talks

$56 trillion national debt leading to a spiraling crisis: Budget watchdog warns the U.S. is walking a crumbling path

February 17, 2026, 12:24 PM ET

The United States is rapidly accelerating toward a definitive tipping point in its financial history, the Committee for a Responsible Federal Budget (CRFB) wrote in response to the latest 10-year outlook from the Congressional Budget Office. The nonpartisan budget watchdog issued a stark assessment: The current trajectory of borrowing, which is running at double the 50-year historical average, is simply mathematically unsustainable.

The CRFB cautioned that without immediate legislative intervention, the federal government faces a future defined by exploding interest costs, insolvent trust funds, and a national debt burden that will shatter post–World War II records within four years.

It amounts to a report card for the Trump administration’s first year back in office—potentially its last truly impactful year of President Donald Trump’s term, if midterm elections swing either or both of the House and Senate to Democrats. The CBO updated its projections to account for the One Big Beautiful Bill Act (OBBBA), Trump’s tariff regime, changes in immigration, and other factors. “With debt approaching record levels, interest costs exploding, trust funds approaching insolvency, and deficits expected to remain more than twice as large as the oft-discussed 3% of GDP target,” the CRFB argued, “lawmakers should come together to enact significant deficit reduction.”

The numbers: breaking records and breaking the bank

According to the new CBO projections, the federal debt held by the public is on track to reach a record 120% of gross domestic product (GDP) by 2036. In sheer dollar terms, the pile of money owed by the government is projected under the CBO’s baseline scenario to balloon from nearly $31 trillion today to a staggering $56 trillion over the next decade.

The speed of this accumulation is unprecedented in peacetime. The CRFB notes that debt held by the public currently hovers around 100% of GDP, which is already roughly double the 50-year historical average. Under the current baseline, federal debt is set to surpass the all-time record of 106% of GDP—set in the aftermath of World War II—by fiscal year 2030.

The driving force behind this surge is a structural mismatch between what the government spends and what it collects. Spending is projected to grow from 23.1% of GDP in 2025 to 24.4% by 2036. In contrast, revenue is trailing significantly, rising only marginally from 17.2% of GDP to 17.8% over the same period.

Consequently, the U.S. is facing a decade of massive deficits. The CBO projects annual budget deficits will total $24.4 trillion over the coming decade, exceeding $3 trillion annually by 2036. As a share of the economy, these deficits are expected to average 6.1% of GDP—more than twice the 3% target that economists and the CRFB suggest is necessary to place the national debt on a sustainable path.

It could easily get worse, too. If the Supreme Court strikes down much of Trump’s tariff regime, as expected, and if lawmakers make temporary previsions in the OBBBA permanent while reviving the Affordable Care Act health insurance subsidies, a core Democratic promise, the CRFB estimates debt spiking to 131% of GDP by 2036, rather than 120%. Under these conditions, the deficit would reach $3.8 trillion in 2036, and the risk of a full-blown fiscal crisis would grow exponentially.

The looming debt spiral

The most alarming aspect of the new outlook is the compounding danger of high interest rates interacting with high debt—the mechanics of what the CRFB calls a “debt spiral.” The CRFB warns that later in the decade, the average interest rate on all federal debt is projected to exceed the rate of nominal economic growth. Economists refer to this dynamic as “R>G” (rate > growth). When the cost of servicing past debt grows faster than the economy that supports it, debt accumulation becomes self-perpetuating, making a fiscal crisis increasingly likely.

More

$56 trillion national debt leading to a spiraling crisis | Fortune

Ford’s $5.8B Kentucky Battery Plant Goes Quiet Just Months After Opening, 1,600 Jobs Lost

Mon, February 16, 2026 at 9:00 PM GMT

Four months after it opened with fanfare and promises of stable, high paying jobs, a $5.8 billion battery plant backed by Ford Motor Company and South Korea’s SK On is now sitting idle in Glendale, Kentucky.

About 1,600 workers are out of a job, and a political firestorm has erupted over who is to blame.

The sprawling 1,500-acre site, known as BlueOval SK, was hailed in summer 2025 as a transformational investment for the region.

Local leaders described it as a cornerstone of the electric vehicle (EV) future, a magnet for suppliers, and a lifeline for families seeking long term employment in advanced manufacturing. The facility was designed to produce EV batteries, anchoring Ford’s ambitious EV expansion.

The Sudden Collapse

By December, that optimism had collapsed. Ford and SK On ended their joint venture at the site. Soon after, Ford confirmed it would idle the plant for roughly 18 months.

Instead of building batteries for cars and trucks, the company said it would pivot production toward energy storage systems aimed at utilities, data centers, and commercial customers.

Ford cited slowing EV demand in the United States and a shifting regulatory landscape as key reasons for the dramatic pause. Executives pointed to forecasts that once predicted EVs could account for as much as 45 percent of US auto sales by 2030.

Those projections have since been revised down to between 9 and 18 percent, reflecting softer consumer uptake and policy uncertainty.

The Political Blame Game

At the center of the political storm is Donald Trump. During his presidency, Trump weakened national vehicle emissions standards and sought to block California from enforcing stricter clean car rules.

He also vowed to scrap the federal tax credit that reduced the price of new EVs by up to $7,500 and to curtail government support for charging infrastructure.

Kentucky Governor Andy Beshear squarely blamed Trump’s policies for the shutdown. He argued that eliminating EV incentives drained consumer interest just as billions were being invested in domestic battery plants.

According to Beshear, the 1,600 layoffs were a direct consequence of federal policy decisions that undercut demand.

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Ford’s $5.8B Kentucky Battery Plant Goes Quiet Just Months After Opening, 1,600 Jobs Lost

In other news, UK socialism at work.

UK minimum wage is raising youth unemployment, Bank of England's Mann says

Reuters  Sun, February 15, 2026 at 11:12 AM GMT

LONDON, Feb 15 (Reuters) - A sharp rise in Britain's minimum wage for younger workers over the past three years has contributed to ‌an increase in unemployment for that age group, Bank of England ‌policymaker Catherine Mann said in a newspaper interview on Sunday.

The unemployment rate for 18-24 year olds ​in Britain was 13.7% in the three months to November, up from 10.2% three years earlier and its highest since the fourth quarter of 2020.

Over the same three-year period, unemployment for the whole workforce has risen to 5.1% from ‌3.9%.

Speaking to the Sunday Telegraph, ⁠Mann said she believed the rise in youth unemployment reflected disproportionately big increases in the minimum wage for that age ⁠group, rather than being a leading indicator for a broader rise in unemployment.

"I think we have to be very careful in the storyline about youth unemployment ​being the ​canary in the coal mine for a ​deeper deterioration in the labour ‌market," she said.

"The accumulation over three years of the rise in the National Living Wage for that group has been manifested in unemployment for that category of workers. Very unfortunate, but it is true. It is a fact," she added.

Britain's minimum wage rate for 21-22 year-old workers has risen by 33% ‌over the past three years to bring ​it in line with the 12.71 pounds ($17.35) hourly ​National Living Wage paid to ​older workers, while the rate for workers aged 18-20 has ‌risen 46% to 10 pounds an ​hour.

Britain's government has ​said it wants to bring the minimum wage paid to 18-20 year-old workers in line with older workers too.

Mann is a former chief economist ​at the Paris-based Organisation ‌for Economic Co-operation and Development and voted against the BoE's last ​three rate cuts due to concerns about inflation.

UK minimum wage is raising youth unemployment, Bank of England's Mann says

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Sterling falls as UK unemployment hits highest rate in five years

Published Tue, Feb 17 2026 1:16 AM EST

LONDON — Sterling dipped and British government bond yields fell Tuesday morning after data showed the U.K.’s unemployment rate rose to a five-year high while wage growth slowed.

The pan-European Stoxx 600 hovered above the flatline as of 8:47 a.m. GMT (3:47 a.m. ET), with Italy’s FTSE MIB also adding nearly 0.4%. France’s CAC 40 rose 0.2%, and Germany’s DAX was trading just below the flatline

The U.K.‘s FTSE 100 was up 0.3% shortly after the market opened. Sterling fell against the dollar, last down 0.5% to trade at $1.356, after the U.K.’s earnings and employment report showed that the number of payrolled workers fell 0.4% on a yearly basis to 30.3 million in January 2026.

That’s 134,000 fewer employees since January 2025 and down 11,000 from the previous month. Meanwhile, the unemployment rate rose to 5.2% in December, up from 5.1% a month earlier. The pound was last down 0.4% against the Euro.

UK unemployment is now at its “highest level” since January 2021, hitting a five-year high, Samuel Fuller, director of Financial Markets Online, said.

British government bond yields, known as gilts, were down following the release of the jobs data. The 10-year Gilt was down 3 basis points to 4.368%, while the 2-year Gilt shed 2 basis points to 3.563%.

---- Earnings remain in focus for investors. Miners Antofagasta and BHP Group released earnings on Tuesday, as well as InterContinental Hotels Group.

Meanwhile, German inflation came in at 2.1% in January, up from 1.8% the previous month, the German Federal Statistical Office reported on Tuesday.  “The rise in overall consumer prices intensified at the start of the year,” Ruth Brand, president of the Federal Statistical Office, said in the release.

Overnight, S&P 500 futures were near flat following two straight negative weeks for the benchmark; U.S markets were shut on Monday for Presidents’ Day.

Asian financial markets were treading carefully on Tuesday in holiday-thinned trading, with markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea closed on Tuesday for Lunar New Year.

European markets: Stoxx 600, FTSE, DAX, CAC, miner earnings, data

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section Updates as they get reported.

China’s tech shock threatens the U.S. AI monopoly and is ‘just getting started’

Published Mon, Feb 16 2026 7:30 AM EST

China’s rapid advancement in AI is threatening to shake up U.S. dominance in the market, with one analyst warning of a tech shock that is just getting started.

Rory Green, TS Lombard’s chief China economist and head of Asia research, told CNBC’s “Squawk Box Europe” on Monday that America’s “perceived monopoly” on tech and AI has been broken by China.

“I think the China tech shock is just getting started. It’s not just AI, DeepSeek, and electric vehicles. China is moving up the value chain very rapidly... It’s the first time in history that an emerging market economy is at the forefront of science and technology,” Green said in a conversation with CNBC’s Steve Sedgewick and Ben Boulos.

China is pairing dominant-market level tech with emerging-market production costs, backed by its massive supply chain, Green said. He added that with Xi Jinping being like a “tech bro” that is chucking money into these sectors, it makes for a powerful mix that is really rapidly accelerating the China tech story.

Indeed, Beijing quietly launched a 60.06 billion yuan ($8.69 billion) national AI fund last year, and has an initiative called “AI+” which will see the tech integrated across its economy, industries, and society.

China is quickly catching up to the U.S. in the AI arms race, developing highly advanced models powered by homegrown chips, particularly through massive Huawei chip clusters and abundant low-cost energy.

While U.S. chip giant Nvidia is viewed as the gold standard for semiconductors used to train AI models, Huawei is narrowing the gap by deploying larger volumes of chips and leveraging cheaper power to scale compute.

TS Lombard’s Green explained that a “China tech sphere” could easily form, as the world’s second-largest economy’s low-cost tech offerings may be more attractive to developing economies.

“China is a top trade partner for most of the world, particularly in emerging and frontier economies. What happens if that repeats on tech?” Green said.

Developing economies that don’t have a national security issue with China have a choice between “low-cost China tech, Huawei, 5G batteries, solar panels, AI, probably some cheap RMB financing,” or “high-cost American and European alternative,” he said.

“For these economies, I think the choice is fairly simple, and you could see easily a world where maybe most of the world’s population is running on a Chinese tech stack in five to 10 years time,” he added.

Additionally, Demis Hassabis, the CEO of Google DeepMind, one of the world’s leading AI labs, told CNBC in January that China’s AI models might be just “a matter of months” behind U.S. and Western rivals and are closer to those capabilities than “maybe we thought one or two years ago.”

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China's tech shock threatens U.S. AI monopoly: 'just getting started'

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

“The great danger to the consumer is the monopoly— whether private or governmental. His most effective protection is free competition at home and free trade throughout the world. The consumer is protected from being exploited by one seller by the existence of another seller from whom he can buy and who is eager to sell to him.”

Milton Friedman