Monday, 18 November 2019

That Hong Kong Standoff. The Morris JE Van.


Baltic Dry Index. 1357 -07 Brent Crude 63.33 Spot Gold 1466

Never ending Brexit now January 31, or maybe sooner.
Trump’s Nuclear China Tariffs Now in effect.
The USA v EU trade war started October 18. Now in effect.

Be wiser than other people if you can, but do not tell them so.

Lord Chesterfield, statesman.

Today, I suspect, it will all depend on what happens next in Hong Kong, and China and America’s reaction to it. If the Hong Kong university siege ends violently, it could all to easily undo the progress of the US v China trade talks.

Below, a tense and testy exchange between the USA and China over Hong Kong.

A tense and testy exchange between China and the USA over the South China Sea and Taiwan.

A good day to sit out developments in cash.

Asia shares hauled higher as China trims key repo rate

November 18, 2019 / 12:58 A M
SYDNEY (Reuters) - Asian shares ticked higher on Monday after Beijing surprised markets by trimming a key interest rate for the first time since 2015, stirring speculation that further stimulus was on the way for the world’s second-largest economy.

China’s central bank cut rates on seven-day reverse repurchase agreements by five basis points to 2.50%, a move that nudged the yuan higher while lowering bond yields. 

The news helped Shanghai blue chips recoup early losses to rise 0.8% .CSI300, though the initial reaction was cautious overall. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS moved 0.3% higher.

Japan's Nikkei .N225 firmed 0.3%, and was just short of its recent 13-month top. E-Mini futures for the S&P 500 ESc1 held steady, as did EUROSTOXX 50 futures STXEc1.

Beijing’s latest policy shift added to hopes it might also be more serious about making progress in trade talks with the United States.

On Saturday, Chinese state media said the two sides had “constructive talks” on trade in a high-level phone call that included Vice Premier Liu He, U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
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China calls on U.S. to 'stop flexing muscles' in South China Sea

November 18, 2019 / 3:53 AM
BANGKOK (Reuters) - China on Monday called on the U.S. military to stop flexing its muscles in the South China Sea and to avoid adding “new uncertainties” over Taiwan, during high-level talks that underscored tension between the world’s two largest economies.

The remarks by Chinese Defence Minister Wei Fenghe to U.S. Defense Secretary Mark Esper, recounted by a Chinese spokesman, came just two weeks after a top White House official denounced Chinese “intimidation” in the busy waterway. 

It also came a day after Esper publicly accused Beijing of “increasingly resorting to coercion and intimidation to advance its strategic objectives” in the region.

During closed-door talks on the sidelines of a gathering of defence ministers in Bangkok, Wei urged Esper to “stop flexing muscles in the South China Sea and to not provoke and escalate tensions in the South China Sea,” the spokesman, Wu Qian, said.

China claims almost all the energy-rich waters of the South China Sea, where it has established military outposts on artificial islands. However, Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims to parts of the sea.

The United States accuses China of militarising the South China Sea and trying to intimidate Asian neighbours who might want to exploit trillion of dollars worth of oil and gas reserves.

 The U.S. Navy regularly vexes China by conducting what it calls “freedom of navigation” operations by ships close to islands China occupies in the South China Sea.

Asked specifically what Wei sought for the United States to do differently, and whether that included halting such freedom of navigation operations, Wu said: “We (call on) the U.S. side to stop intervening in the South China Sea and stop military provocation in the South China Sea.”

Despite warm words exchanged in front of reporters, Wei and Esper also discussed the thorny issues, including Chinese-ruled Hong Kong, which has seen months of anti-government protests.

They also talks about democratic Taiwan, which is claimed by China as a wayward province and is the Communist Party’s most sensitive and important territorial issue.

Fenghe underscored to Esper China’s position that it would “not tolerate any Taiwan independence incident,” Wu said, adding that it opposed any official or military contact with Taiwan.
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https://uk.reuters.com/article/uk-china-usa-military/china-calls-on-u-s-to-stop-flexing-muscles-in-south-china-sea-idUKKBN1XS09T?il=0

Besieged Hong Kong protesters prepare for bloody crackdown as U.S. urges restraint

November 17, 2019 / 5:32 PM / Updated 42 minutes ago
HONG KONG (Reuters) - Hong Kong police lay siege on Monday to a university where hundreds of anti-government protesters were bunkered down with petrol bombs and other homemade weapons, amid fears of a bloody crackdown and U.S. calls for restraint.

Police fired volleys of tear gas and rubber bullets to force back dozens of protesters who tried to escape the besieged campus of Polytechnic University, after a night of mayhem in which major roads and a police armoured van were set alight and a police officer was shot with an arrow. 

Dozens of protesters were arrested near the university on Monday morning, public broadcaster RTHK reported, while in the nearby commercial area of Nathan Road activists stopped traffic and forced shopping malls and stores to shut.

“We’ve been trapped here for too long. We need all Hong Kongers to know we need help,” said Dan, a 19-year-old protester on the campus, as he burst into tears.

“I don’t know how much longer we can go on like this. We may need international help.”

Thirty eight people were injured overnight on Sunday, the city’s Hospital Authority said. Reuters witnesses saw some protesters suffer burns from chemicals in the jets fired from police water cannons.

“Remember you have life in your hands. Why do you need to push us to death?” one person shouted at police from a campus rooftop as protesters wearing gas masks and clutching umbrellas looked for ways to escape the university.

---- Police said they fired three live rounds when “rioters” attacked two officers who were attempting to arrest a woman. No one was injured in the incident and the woman escaped.

Police had earlier warned they were ready to use live bullets if “rioters” continued to used lethal weapons, amid a dramatic escalation of the unrest that has plunged the Asian financial hub into chaos for almost six months.

Demonstrators angry at what they see as Chinese meddling in the former British colony have said they are responding to excessive use of force by police.
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U.S. condemns "unjustified use of force" in Hong Kong: senior official

November 18, 2019 / 2:43 AM
WASHINGTON, Nov 17 (Reuters) - The United States condemned the “unjustified use of force” in Hong Kong and called on Beijing to protect Hong Kong’s freedom, a senior official in President Donald Trump’s administration said Sunday, as protesters battled Hong Kong police who had trapped them inside a major university.

“We condemn the unjustified use of force and urge all sides to refrain from violence and engage in constructive dialogue,” the senior U.S. official said. 

“As the President has said, the United States expects Beijing to honor its commitments under the Sino-British joint Declaration and to protect Hong Kong’s freedom, legal system and democratic way of life,” the official said.

Hong Kong police sealed off the Polytechnic University and demonstrators rampaged through a tourist district, after almost two straight days of standoffs that have raised fears of a bloody showdown. (Reporting by Susan Cornwell Editing by Shri Navaratnam)

Asian airlines slash flights to Hong Kong as unrest escalates

November 18, 2019 / 5:11 AM
SYDNEY (Reuters) - Several Asian airlines have cut flights to Hong Kong over the coming weeks, according to industry scheduling publication Routes Online, as anti-government protests in the city grow increasingly violent and disrupt daily life.

Routes online said latest schedules showed cancellations from PT Garuda Indonesia (Persero) Tbk (GIAA.JK), India’s SpiceJet Ltd SPJT.NS, Malaysia’s AirAsia Group Bhd (AIRA.KL), and the Philippines’ PAL Holdings Inc (PAL.PS) and Cebu Air Inc (CEB.PS).

The cuts come as Hong Kong police on Monday fired tear gas at protesters trying to escape a besieged university, while others armed with petrol bombs awaited an expected operation to oust them.

---- On Monday, Routes Online showed Garuda has reduced weekly flights to Hong Kong to four from 21 through mid-December, SpiceJet has suspended its Mumbai-Hong Kong route through Jan. 15 and AirAsia has cut flights from Kuala Lumpur and Kota Kinabalu in December and January.

---- Airport Authority Hong Kong on Sunday reported an October decline of 13% in passengers and 6.1% in the number of inbound and outbound flights - the steepest falls since the unrest began. It said a growing proportion of travellers were using Hong Kong as a transit point rather than a destination.
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Some foreigners with full bellies and nothing better to do engage in finger-pointing at us. First, China does not export revolution; second, it does not export famine and poverty; and third, it does not mess around with you. So what else is there to say?

Xi Jinping

Crooks and Scoundrels Corner.

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

Today, more on America’s growing farm recession. While the Fed fuels the Wall Street bubble, in the real economy, manufacturing, farming, mining and freight are all in recession.

U.S. stock market at record but farm bankruptcies at highest since 2011

By Clive McKeef  Published: Nov 16, 2019 4:55 p.m. ET
While U.S. stock market is soaring to new record highs, with the Dow Jones Industrial Average DJIA, +0.80%  hitting 28,000 on Friday, farmers are having trouble paying their bills in the heart of America’s agricultural sector.

Farms incomes are falling in Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico, according to the Kansas City Federal Reserve. 

Farm income fell in each state within the district from a year ago and credit conditions in the Federal Reserve’s Tenth District deteriorated in the third quarter despite an increase in the price of certain commodities and additional government aid to farmers.

Farm household spending and capital spending both declined, with bankers in the Kansas Fed’s region saying they expect the trends to continue.

See also: U.S. stocks climb to fresh records on revived hope for U.S. - China trade deal

Farmers have struggled to escape a downturn that began in 2013, a slump made worse by President Trump’s trade war with China, Mexico and Canada that cut exports and depressed already low prices, while extreme weather including flooding, a freeze, and drought early in 2019 added to farming woes.

In other districts such as Iowa, farm finances are also faltering. About 85% of Iowa land is used for farmland and it’s ranked first in U.S. corn and egg production and one-third of the country’s hogs are raised in Iowa.

Iowa farm debt hit $18.9 billion in the second quarter, the highest level in the nation, according to Ohio State University agricultural lending data.

Despite President Trump’s agriculture bailouts, Iowa farmers continue to see their financial condition erode, with 44% of producers last year struggling to cover their bills, an Iowa State University report shows.

“It’s very, very concerning,” said Alejandro Plastina, the Iowa State agricultural economist who conducted the study. “It’s getting harder and harder for farm operations to cash-flow their business.”

Plastina expects farmers’ struggles to continue this year, with a tough growing season and dim prospects for improved prices. Record spring rain hampered planting, leaving nearly 464,000 acres unplanted. And the fall harvest has been slowed by rain, sub-freezing temperatures and snow.

The Trump administration rolled out a total of $28 billion in farm assistance packages over the past two years to offset losses due to the trade war, but Plastina said the assistance Iowa farmers received has only slowed, but not reversed, the trend of financial decline for farmers.

Farmers have worked to lower costs and restructure debt, shrinking payments and freeing up cash. Some growers also have sold unneeded equipment and land to keep operations afloat.

Nationwide U.S. farm bankruptcies in September surged 24% to their highest level since 2011 amid strains from President Trump’s trade war with China and a year of wild weather.

In the 12 months through September, there were 580 Chapter 12 farm bankruptcy filings, the most since 2011, the American Farm Bureau Federation reports. Wisconsin, which was among the top five milk-producing states in 2018, had the highest number: 48.
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We will never allow anyone, any organization, or any political party, at any time or in any form, to separate any part of Chinese territory from China.

Xi Jinping

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?
Today, for the EV enthusiast with money to burn.

Morris JE van among the most adorable electric vehicles this lifetime

November 14, 2019

We knew the all-electric Morris J-type redux was going to be cool, but we weren't quite prepared for just how much we want to pinch its chubby little fenders. Combine those fenders with the buttery-smooth, arched roof, body-color wheels, beady headlights and creased windshield, and you have a van that's delightfully British retro. Below its mid 20th century-influenced skin, the JE packs a cutting-edge electric powertrain and modular chassis that could lead to additional variants, including a pickup truck and camper van. Yes, please.

Rather than simply recreate the original J-type, a van it likens to the Mini and Land Rover Defender in terms of legendary Britishness, Morris Commercial reimagines the classic as a proper modern-day light commercial vehicle, pulling out creases and rounding corners with ultralight carbon fiber construction.

The pear-shaped grille is there, but not quite so large and a little smoother than the original. The split windshield is also subtler, an off-color crease rising to a slight spine that splits the rounded roof. The profile is cleaner, the inset sliding curbside door replaced by a flush combination of front passenger door and sliding rear cabin door. The fenders and headlamps are as distinctive as ever, but more cleanly integrated into the greater body aesthetic.

The original Morris J-type relied on a forward-control engine layout for its hoodless front-end and tiny overhang, but the new JE steps into the present with a decentralized electric powertrain. Power is supplied by a lithium-ion battery offering up to 200 miles (322 km) of range with help from the lightweight carbon fiber design.

Morris believes the JE will quickly find a passionate customer base among companies looking to stand out from the pack with a unique, eco-friendly promotional or utility van. The 2.5-tonne van offers a payload of 1 tonne (2,200 lb), with 5.5 cu m (194 cu ft) of storage accessed straight through the rear double doors.

Morris debuted the JE on Tuesday at The Design Museum in London. It plans to begin production in late 2021, selling the JE for a base price of £60,000 (approx. US$77,275). About those other body styles, Morris says: "The vehicle benefits from a lightweight, modular chassis, making it highly adaptable for future derivatives, such as a pickup, minibus or camper van." It also vows to never produce an ICE-based vehicle, so any future models will also be electrified.

$60K plus the cost of conversion might be a bit rich in a market that sells sweet camper vans like the Le-Tour for under £35,000, but the JE certainly would make a stylish, little pop-top with the ability to glamp up the campsite by using extra battery power for accessories like TVs and electric cooking appliances.

Pictures.
Source: Morris Commercial

Capital is that part of the wealth of a country which is employed in production and consists of food, clothing, tools, raw materials, etc., necessary to give effect to labour.

David Ricardo, economist.

The monthly Coppock Indicators finished October

DJIA: 27,046 +59 Up. NASDAQ: 8,292 +67 Up. SP500: 3,038 +67 Up.

Another inconclusive month, but all three continued to move up weakly

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