Friday 16 November 2018

Nvidia. Crypto Collapse. PG&E. Brexit.


Baltic Dry Index. 1020 +11   Brent Crude 67.13

 'You just never know. That unpredictability is the great thing about life. You change. The world changes. You live in a country where we are still blessed with enormous opportunity. Leave yourself open to the world of possibility. You have the ambition, you have the smarts and you have the toughness. So, turn the page on your biography - you have just started a new chapter in your lives.'

Lloyd Blankfein, “Mr. Goldman Sacks,” CEO of Goldman Sachs unintentionally backs Brexit in a US speech to graduates, mid 2016.


The crypto currency collapse, has collapsed bitcoin mining, which in turn seems to have collapsed US chipmaker Nvidia. How far, if at all, will the contagion spread? We will likely find out later today.

In California, the land of fruits and nuts, as its called, will PG&E get bailed out by the taxpayers of California? The speculators are betting heavily they will. Buy why? The taxpayers didn’t start the CA wild fires, PG&E seems to be admitting it started the biggest. Why should the stock and bond holders get a free ride?

In Brexit yesterday, UK Prime Minister May’s day crashed and burned. The longer she spoke in the Commons, the longer her nose grew and grew. No one will sign up to a 585 page Brussels contract, nor should they. For a second time in two years the EUSSR has brought down a GB Prime Minister. The EUSSR just shot itself in the other foot. An interesting weekend now lies ahead in London and Brussels. With the lower Pound, a tourist shopping boom is set for Dear Olde London Town.

Asia mood soured by Nvidia slide, sterling scarred by Brexit chaos

November 16, 2018 / 12:56 AM
SYDNEY (Reuters) - Asian shares shed early gains on Friday after disappointing results from U.S. chipmaker Nvidia Corp hammered its stock and sent selling rippling through the entire tech sector.

The British pound also lay battered and bruised after a bout of political turmoil fanned fears the country could crash out of the European Union without a divorce deal.

Asian shares had started firm after hopes for a thaw in Sino-U.S. trade relations gave Wall Street a fillip, but a near 17 percent plunge in Nvidia’s (NVDA.O) stock soured the mood.

The chip designer on Thursday forecast disappointing sales for the holiday quarter, pinning the blame on unsold chips piling up with distributors and retailers after the evaporation of the cryptocurrency mining boom.

Also falling in after-hours trading were shares of Advanced Micro Devices (AMD.O) and Intel (INTC.O).

Losses in semi-conductor shares dragged Japan's Nikkei .N225 down 0.2 percent, while Nasdaq futures NQc1 fell 0.6 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS erased early gains to go flat, then edged up 0.1 percent.

“It started with Apple, then Nvidia... Since performances of these companies set the tone for the global tech and chip industries, related Japanese stocks will likely be sluggish for a while,” said Takatoshi Itoshima, a strategist at Pictet Asset Management.
More

‘Crypto hangover’ has Nvidia staggering into holidays with a big headache

By Jeremy C. Owens Published: Nov 15, 2018 8:32 p.m. ET
Nvidia Corp. is suffering a “crypto hangover” that will be hard to cure, thanks to a glut of new and used gaming cards on the market amid the launch of the company’s newest technology that replaces them.

In an earnings report released Thursday afternoon, Nvidia NVDA, +2.64%  predicted a decline in revenue in the fourth quarter, both sequentially and year-over-year, thanks to an inventory backlog of its Pascal-based gaming cards. Executives explained that the end of a cryptocurrency mining boom that had created high demand for the company’s graphics chips caused demand to dry up, and prices did not come down quickly enough to draw customers who may have been waiting for cheaper and freely available gaming cards.

“The crypto hangover lasted longer than we expected and we were surprised by that, but it will pass,” Chief Executive Jensen Huang said in an interview with MarketWatch on Thursday afternoon.

Don’t miss: Nvidia has a Pascal problem, and its stock is plunging after earnings

The numbers are rather staggering. Nvidia’s forecast for the fiscal third quarter, which is under way and includes the holiday-shopping period, projects a 30%-plus sequential decline in gaming sales, Nvidia’s biggest business by far. Nvidia shares dropped 16.8% in extended trading Thursday, which would take shares to their lowest prices since September 2017 if it holds into Friday’s regular session, and took GPU competitor Advanced Micro Devices Inc. AMD, +3.27%  down with it. Nvidia shares were already down 28% this quarter, as the S&P 500 index SPX, +1.06%  has declined 6.3%.
More

Hedge-fund boss who predicted ‘87 crash says get ready for some ‘really scary moments’

By Mark DeCambre  Published: Nov 15, 2018 10:07 p.m. ET
Paul Tudor Jones, a hedge-fund luminary, said he’s stress-testing his portfolio of corporate debt because he expects a tumultuous road ahead on the back of the Federal Reserve’s apparent commitment to normalizing interest rates and buttressed by corporate tax cuts from the Trump administration.

Speaking at an economic forum in Greenwich, Conn., a hotbed for hedge funds, Jones said the Fed faces real challenges amid “the end of a 10-year run” of economic growth that many anticipate will soon come to a screeching, cyclical end.

Jones is widely credited with predicting, and profiting, from the stock-market crash on Oct. 19, 1987, which saw the Dow Jones Industrial Average DJIA, +0.83% lose nearly 23% of its value, marking the largest one-day percentage decline for the blue-chip benchmark in its history.
More

PG&E shares surge 40 pct on report regulator wants to avoid bankruptcy from wildfire

November 16, 2018 / 12:48 AM
SAN FRANCISCO/LOS ANGELES (Reuters) - PG&E Corp (PCG.N) shares soared 40 percent in after-hours trade on Thursday following a report that a regulatory official told investors the agency does not want the utility to go into bankruptcy should it be found responsible for this month’s deadly wildfire in northern California.

Bloomberg reported the comment by a California Public Utilities Commission (CPUC) official on a call hosted by Bank of America Corp (BAC.N), citing a person familiar with the matter.

A CPUC spokesman said he could not confirm the remarks and Bank of America declined to comment. CPUC issued a statement emphasizing that state law requires it to consider a utility’s financial health when weighing a request to cover costs associated with wildfires.

“A utility filing bankruptcy is not in the best interest of consumers, but that decision is not the CPUC’s,” a CPUC spokeswoman told Reuters.

Late on Thursday, Moody’s cut parent PG&E’s credit rating to one notch above junk, although many of the company’s bonds were already trading at non-investment grade levels earlier in the day.

S&P Global Ratings, citing rising risks that the company may face from the wildfire, also lowered its rating on PG&E by one notch to BBB-minus.

It placed the company on CreditWatch with negative implications, saying the risks increase the probability of another downgrade over the next few months.

Investors are watching for clues about whether California’s government will step in to save PG&E should it eventually be found responsible for the Camp Fire, which destroyed the town of Paradise a week ago, and should any potential liability exceeds the utility’s resources.
More

Finally, in Brexit news, Prime Minister May slips on a 585 page, Brussels banana skin. Who in their right mind would sign a 585 page contract written in Brussels?  Prime Minister May apparently! My money is on her not getting the chance.

“No democratic nation has ever signed up to be bound by such an extensive regime, imposed externally without any democratic control over the laws to be applied.”

Dominic Raab, ex Brexit Secretary.

Tory deal with DUP over unless May replaced - Daily Telegraph

November 15, 2018 / 11:03 PM
(Reuters) - The Conservative Party’s deal with Northern Ireland’s DUP on Brexit is over unless Prime Minister Theresa May is replaced with a new leader, the Daily Telegraph reported. 

The DUP would vote down the withdrawal agreement in Parliament, adding that its support now “depended on who the leader of the Conservative Party is,” the newspaper reported, citing sources close to DUP leader Arlene Foster.

Who wants to be Britain's next prime minister?

November 15, 2018 / 6:23 PM
LONDON (Reuters) - Prime Minister Theresa May’s position as leader of the ruling Conservative Party is under assault by eurosceptic MPs who reject her EU exit strategy and want a more pro-Brexit leader.

May has vowed to fight on to the next election in 2022, but if enough MPs demand her resignation she will face a confidence vote.

Below is a summary of some of those who could be in the frame to replace May:

BORIS JOHNSON, 54

The former foreign minister is May’s most outspoken critic over Brexit. He resigned from the cabinet in July in protest at her handling of the exit negotiations.
More


Anon.


Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.

No banksters today, they’ll be back next week in droves. Today, Wikileaks and the US Pentagon. To no one’s surprise, the Pentagon failed its first audit.

Well fancy giving money to the government! Might as well have put it down the drain.
Fancy giving money to the government! Nobody will see the stuff again.

A. P. Herbert.

U.S. Is Optimistic It Will Prosecute Assange

Over the past year, U.S. prosecutors have discussed several types of charges they could potentially bring against the WikiLeaks founder

By Aruna Viswanatha and Ryan Dube
Nov. 15, 2018 6:05 p.m. ET
The Justice Department is preparing to prosecute WikiLeaks founder Julian Assange and is increasingly optimistic it will be able to get him into a U.S. courtroom, according to people in Washington familiar with the matter.

Over the past year, U.S. prosecutors have discussed several types of charges they could potentially bring against Mr. Assange, the people said. Mr. Assange has lived in the Ecuadorean embassy in London since receiving political asylum from the South American country in 2012.

The people familiar with the case wouldn’t describe whether discussions were under way with the U.K. or Ecuador about Mr. Assange, but said they were encouraged by recent developments.

Ecuador’s relationship with Mr. Assange has deteriorated sharply since last year’s election of President Lenin Moreno, who has described him as a “stone in our shoe” and said his continued presence at the embassy is unsustainable.

An indictment from special counsel Robert Mueller that portrayed WikiLeaks as a tool of Russian intelligence for releasing thousands of hacked Democratic emails during the 2016 presidential campaign has made it more difficult for Mr. Assange to mount a defense as a journalist. Public opinion of Mr. Assange in the U.S. has dropped since the campaign.

Prosecutors have considered publicly indicting Mr. Assange to try to trigger his removal from the embassy, the people said, because a detailed explanation of the evidence against Mr. Assange could give Ecuadorean authorities a reason to turn him over.

The exact charges Justice Department might pursue remain unclear, but they may involve the Espionage Act, which criminalizes the disclosure of national defense-related information.
More

Pentagon fails its first-ever audit, official says

November 15, 2018 / 6:26 PM
WASHINGTON (Reuters) - The Pentagon has failed what is being called its first-ever comprehensive audit, a senior official said on Thursday, finding U.S. Defense Department accounting discrepancies that could take years to resolve.

Results of the inspection - conducted by some 1,200 auditors and examining financial accounting on a wide range of spending including on weapons systems, military personnel and property - were expected to be completed later in the day. 

“We failed the audit, but we never expected to pass it,” Deputy Secretary of Defense Patrick Shanahan told reporters, adding that the findings showed the need for greater discipline in financial matters within the Pentagon.

“It was an audit on a $2.7 trillion dollar organization, so the fact that we did the audit is substantial,” Shanahan added.

The U.S. defense budget for the 2018 fiscal year that ended on Sept. 30 was about $700 billion. The Pentagon is a huge agency with multiple branches of the military, costly weapons systems, large personnel needs, numerous military bases of various sizes at home and abroad and troops deployed in far-flung locales.

Shanahan said areas the Pentagon must improve upon based on the audit results include compliance with cybersecurity policies and improving inventory accuracy. In a briefing with reporters, he did not provide a figure detailing how much money was unaccounted for in the audit.

---- A 1990 federal law mandated that U.S. government agencies be audited, but the Pentagon had not faced a comprehensive audit until this one was launched in December.
More

Technology Update.
With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported. Is converting sunlight to usable cheap AC or DC energy mankind’s future from the 21st century onwards?

Fusion breakthrough as China's "artificial sun" reaches 100 million degrees

David Szondy 15 November 2018
The day of clean, limitless energy from nuclear fusion has taken another step closer thanks to China's Experimental Advanced Superconducting Tokamak (EAST). During a four-month experiment, the "Chinese artificial sun" reached a core plasma temperature of over 100 million degrees Celsius – that's more than six times hotter than the interior of the Sun – and a heating power of 10 MW, enabling the study of various aspects of practical nuclear fusion in the process.

Beginning operations in 2006, the Chinese designed and developed EAST is located at the Hefei Institutes of Physical Science of the Chinese Academy of Sciences (CASHIPS) and is billed as an open test facility for conducting steady-state operations and ITER-related physics research by both Chinese and international scientists. And, like many other fusion experiments, the ultimate goal is to produce a practical nuclear fusion power reactor.

EAST is a tokamak reactor, which consists of a metal torus or doughnut that is exhausted to a hard vacuum and then injected with hydrogen atoms. These atoms are then heated by a number of different methods to create a plasma that is then compressed using a series of powerful superconducting magnets.

Eventually, the plasma becomes so hot and so compressed that the conditions inside the reactor mimic those found inside the Sun, causing the hydrogen atoms to fuse, releasing tremendous amounts of energy. The hope is that eventually a reactor can be built where the fusion reaction is self-sustaining, and the reactor generates more energy than it consumes.

EAST produced its breakthrough temperatures and densities for around 10 seconds by combining four different heating methods to create the plasma and spark the fusion process. In this case, the methods were lower hybrid wave heating (oscillating the ions and electrons in the plasma), electron cyclotron wave heating (using a static magnetic field and a high-frequency electromagnetic field), ion cyclotron resonance heating (accelerating ions in a cyclotron), and neutral beam ion heating (injecting a beam of accelerated neutral particles into the plasma).

However, the purpose wasn't just to peg the meter, but to also study how to maintain plasma stability and equilibrium, how to confine and transport it, and how the plasma wall interacts with energetic particles. In addition, EAST is used as a demonstrator of how to use radio frequency wave-dominant heating, maintain a high level of plasma confinement with a high degree of purity, maintain magnetohydrodynamic stability, and how to exhaust heat using an water-cooled tungsten divertor.

CASHIPS says EAST is being used to explore how to maintain electron temperatures of over 100 million degrees over long periods to further knowledge and aid the development of advanced reactors like the International Thermonuclear Experimental Reactor (ITER) being built in France, the Chinese Fusion Engineering Test Reactor (CFETR), and the proposed DEMO (DEMOnstration Power Station). Achieving temperatures in excess of 100 million degrees Celsius – even if only for around 10 seconds – proves that it is possible to reach the temperatures required for nuclear fusion.

Another weekend and who will be GB Prime Minister on Monday? Mrs May, in office but not in power? Ex Foreign Secretary, arch-brexiteer Johnson? Any of the seven Tory dwarfs?  Comrade Agent Corbyn?

There hasn’t been this much fun in London since Prime Minister Major and Chancellor Lamont caused the Pound to crash out of the Exchange Rate Mechanism in 1992, vastly enriching George Soros along the way. I wonder which way George has bet this time. Have a great weekend everyone.

Brexit Joke of the Century.

Pythagoras's theorem - 24 words.
The Lord's Prayer - 66 words.
Archimedes's Principle - 67 words.
The 10 Commandments - 179 words.
The Gettysburg address - 286 words.
U.S. Declaration of Independence - 1,300 words.
U.S. Constitution with all 27 Amendments - 7,818 words.
EU regulations on the sale of cabbage - 26,911 words.

Brexit leaving contract, 585 pages of enslaving Brussels legalese.

Time to leave the EUSSR on WTO rules.

The monthly Coppock Indicators finished October.

DJIA: 25,116 +176 Down. NASDAQ: 7,306 +232 Down. SP500: 2,712 +146 Down. All three slow indexes went sharply down in October, suggesting there’s more of the correction to come.

No comments:

Post a Comment