Baltic Dry Index. 466 -21 Brent Crude 54.90 Spot Gold 1572
Brexit Freedom Underway
Trump’s Nuclear China Tariffs Now in effect.
Coronavirus Cases 4/2/20 China 20,667
Deaths 427
In central banking as in diplomacy, style, conservative
tailoring, and an easy association with the affluent count greatly and results
far much less.
John Kenneth Galbraith
With coronavirus still uncontained, we have entered the
even more bizarre world of rigged stock markets. Our central banksters and
politicians think that by supporting stocks they can stop a correction in
stocks, or far worse a new bear market. Maybe they can, but I wouldn’t bet on
it. Far bigger forces are now in play in the stock and commodity markets.
If central banksters want to buy overpriced stocks,
experience tells me this is the time to sell out to them, take their cash and
convert it into tangible assets with long term intrinsic value.
Whether this new coronavirus outbreak stops at today’s
latest figure of 20,000 (unlikely) or goes on to 20 million or higher, is
anyone’s guess, but the global economy as we new it is rapidly changing, and
not for the better.
Copper, oil, the Baltic Dry Index, manufacturing, all
suggest a new recession has arrived unnoticed by our central banksters.
Asia stocks find footing as China markets recoup some losses
February 4, 2020 / 12:38 AM
SYDNEY/TOKYO
(Reuters) - Asian stocks bounced on Tuesday with Chinese markets reversing some
of their previous plunge amid official efforts to calm virus fears, although
sentiment remained fragile with oil near 13-month lows.
The total number of coronavirus deaths in China reached 425 as of the end of Monday, from 20,438 cases.
China’s central bank has flooded the economy with cash while trimming some key lending rates, but analysts suspect more will have to be done to offset the economic fallout from the virus.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.0%, led by gains in South Korea .KS11 and Australia . Japan's Nikkei .N225 inched up 0.1%.
“Given the extent of the shutdowns in China as well as the rapid rise in the virus that is likely to continue through March or April, a significant hit to China and regional growth is very likely,” said JPMorgan economist Joseph Lupton.
“We would assume that in addition to bridging any funding stresses, fiscal policies will need to be ramped up to support growth once the contagion gets under control.”
The Shanghai Composite .SSEC stood flat in choppy early trading, while the blue-chip CSI300 .CSI300 rebounded 0.9%, one day after an almost 8% slide on Monday as markets resumed from the Lunar New Year holiday. Hong Kong's Hang Seng .HSI advanced 0.7%.
“Chinese authorities have been providing a lot of support for the financial markets. There’s a level of assurance that the rout would not be allowed to go on much further than necessary,” Christy Tan, head of markets strategy for Asia at National Australia Bank in Singapore.
“This could prove to be temporary if we see worse news or little sign of reaching containment of the (coronavirus) situation,” she added.
In an effort to stop the rout, China’s state-backed Securities Times published an op-ed on Tuesday to call on investors not to panic.
That followed moves by China’s securities regulator on Monday to limit short selling and stop mutual fund managers selling shares unless they face investor redemptions, according to Reuters.
More
https://uk.reuters.com/article/us-global-markets/asia-stocks-find-footing-as-china-markets-recoup-some-losses-idUKKBN1ZY02N
China tries to reassure on outbreak amid growing travel curbs
February 4, 2020
/ 1:08 AM
BEIJING (Reuters) - Beijing is stepping up diplomatic efforts to
reassure countries around the world it can control the coronavirus outbreak
that has killed more than 420 people so far, seeking to prevent more travel
bans placed against travellers from China.
Chinese state councillor Wang Yi spoke with foreign ministers of seven
countries including Germany, Malaysia Sudan and Saudi Arabia in recent days,
statements released by the Chinese foreign ministry on Sunday and Tuesday show.
Wang reiterated in the calls that China was confident of being able to control
the outbreak and in some cases spoke out against any travel curbs.
“The WHO (World Health Organization) explicitly recommended that
countries should not take unnecessary travel and trade restrictions,” Wang was
quoted as telling Saudi Arabian Foreign Minister Faisal bin Farhan Al Saud in a
statement released by China on Tuesday.
“I believe Saudi Arabia will always stand with us in the fight against
the epidemic. The epidemic is only temporary, and our cooperation and
friendship are long-lasting,” Wang was quoted as saying.
China is facing mounting isolation as a growing number of airlines
suspend flights to its mainland cities and some nations, including the United
States and Singapore, enact travel curbs against foreign travellers who
recently visited the country. Beijing has spoken out against such measures,
with anger directed in particular towards the United States.
Chinese foreign ministry spokeswoman Hua Chunying repeated criticisms
against the United States in a statement issued on Tuesday, calling on
Washington to “refrain from over-reacting” and cooperate with China in
controlling the outbreak.
The death toll from the epidemic, which has infected more that double
the number of people globally than the 2002/2003 SARS oubtreak that also
originated in China, now stands at 427. All but one of these deaths have
occurred on Chinese soil.
https://uk.reuters.com/article/uk-china-health-usa-aid/china-tries-to-reassure-on-outbreak-amid-growing-travel-curbs-idUKKBN1ZY03P?il=0Commodities Hammered in China by Virus-Driven Demand Fears
Bloomberg News
February
3 2020.
·
·
China catching up with global markets gripped by
virus fears
Hong Kong recession deepens as virus outbreak darkens outlook
February 3, 2020 /
4:15 AM
HONG KONG
(Reuters) - Hong Kong’s economy contracted for the first time in a decade in
2019 as violent anti-government protests and trade tariffs between Washington
and Beijing took more steam out of the economy in the final quarter of last
year.
The worst is yet to come, with no end in sight to the protests in the
Chinese-ruled city and a new coronavirus outbreak in mainland China.
“The coronavirus outbreak will probably keep the city in recession for a
while longer,” said Martin Rasmussen, China economist at Capital Economics.
Hong Kong, which has so far seen 15 confirmed cases of the virus, has
taken measures to reduce the flow of visitors from China where the death toll
has risen to 361. The city’s retail and tourism sectors rely heavily on
spenders from the Chinese mainland.
The economy shrank by a seasonally adjusted 0.4% in October-December
from the previous quarter, versus a revised 3.0% contraction in July-September.
On an annual basis, the economy shrank 2.9%, compared with a revised 2.8% fall
in the third quarter.
More
Cruise ships to ban recent China visitors: global industry body
Issued on: 03/02/2020 - 11:28
Cruise lines worldwide will deny boarding to passengers and crew who
have recently travelled to China, a global industry body said Monday, as fears
grow over the deadly new coronavirus.
In a statement, the Cruise Lines International Association (CLIA) said
its members were taking extra precautions to prevent an outbreak of the virus
on board cruise ships, where infections can spread rapidly.
"CLIA Members have suspended crew movements from mainland China and
will deny boarding to any individual, whether guest or crew, who has travelled
from or through mainland China within the previous 14 days," the body's
Hamburg office said.
CLIA represents some of the world's largest and best-known cruise lines,
including TUI, AIDA, MSC, Costa, Royal Caribbean and Carnival Cruises.
The cruise companies were also carrying out careful screening of
passengers and crew before boarding, and changing itineraries where necessary,
CLIA said.
The industry body added that cruise ships were well equipped to deal
with health emergencies.
"The cruise industry is one of the most well-equipped and
experienced when it comes to managing
and monitoring health conditions of
passengers and crew," the statement said.
All ships are fitted with medical facilities and have medical
professionals "available around the clock", it added.
The SARS-like virus that first emerged in the Chinese city of Wuhan last
month has infected more than 17,000 people and killed over 360 so far.
It has spread to more than 24 countries, including Australia, Germany
and Japan.
In a sign of growing anxiety, more than 6,000 tourists were temporarily
confined to their cruise ship at an Italian port last week after two Chinese
passengers fell ill.
They later tested negative for the coronavirus.
Japan quarantines cruise ship to test 3,700 on board after Hong Kong coronavirus case
February 4, 2020 /
3:56 AM
TOKYO (Reuters) -
Japanese officials began screening more than 3,700 passengers and crew on a
cruise ship quarantined off the port of Yokohama near Tokyo on Tuesday after a
Hong Kong man who sailed on the vessel last month tested positive for
coronavirus.
The 80-year-old man flew to Japan and boarded the ship, the Diamond
Princess, run by Carnival Japan Inc, in Yokohama on Jan. 20 and disembarked in
Hong Kong on Jan. 25, the company said.
Photographs and video posted on Twitter by a passenger with the handle
@daxa_tw showed health workers in full-length plastic gowns with white caps and
face masks walking down a deserted corridor as well as views of empty lounges
and a deserted deck.
Guests were asked to stay in their rooms to await screening. “This could
take some time, but it is necessary so we ask for your understanding and
cooperation,” an announcement said.
More
SportS Events affected due to coronavirus epidemic
February 3, 2020
/ 2:57 AM
(Reuters) - The following is a list of international sports
events affected by the coronavirus, which has killed over 300 people and
infected more than 14,000 in China after it first emerged in Wuhan, Hubei
province, late last year: ATHLETICS
- The World Athletics Indoor Championships, which had been scheduled for Nanjing from March 13-15, were postponed until next year. World Athletics is working with organisers to settle on a date to host the biennial event in 2021.- The Asian Athletics Association cancelled its Feb. 12-13 indoor championships in Hangzhou.
SOCCER
- Australian officials are seeking to reschedule AFC Asian Champions League matches after their government imposed a travel ban on foreign nationals arriving from China.Shanghai Shenhua and Shanghai SIPG were due to play Perth Glory and Sydney FC next week.
- A four-team women’s Olympic soccer qualifying tournament involving China, Australia, Taiwan and Thailand was moved from Wuhan and rearranged to be held in Australia by the AFC.
Organisers were also forced to change the match schedule after China’s team, which arrived in Australia on Jan. 29, was placed in quarantine in Brisbane until after Feb. 5.
- The Chinese Football Association said domestic games at all levels would be postponed.
FORMULA E
- The all-electric Formula E motor racing series abandoned plans for a race in Sanya on March 21.The move puts Formula One in the spotlight, with Shanghai due to host the Chinese Grand Prix on April 19.
More
Some exhibitors pull out of Singapore Airshow due to coronavirus
February 3, 2020
/ 3:14 AM
SYDNEY/MONTREAL (Reuters) - Some aerospace companies including business
jet manufacturers Textron Inc and General Dynamics Corp’s Gulfstream division
said they no longer planned to attend the Singapore Airshow due to the new
coronavirus epidemic.
The trade portion of Asia’s biggest airshow, held every two years, is
set to begin on Feb. 11 under the shadow of the fast-spreading virus that has
prompted Singapore to deny entry to all Chinese visitors and foreigners with a
recent history of travel to China, where the virus originated.
The death toll from the coronavirus has risen to 361 in China, bringing
the number of confirmed infections to 17,205. The flu-like virus, which can be
transmitted from person to person, has spread to more than two dozen other
nations and regions.
Experia Events, the organizer of the Singapore Airshow, said last week
the show would continue as planned, but the government measures meant it would
“undoubtedly see a reduction in terms of the number of expected exhibitors and
visitors this year”.
The organizer said there would be doctors and medics on standby to
attend to visitors who were feeling unwell.
More
Passengers sprayed with hoses on runway after flying from coronavirus epicentre
People disembarking from a plane that
had flown from Wuhan in China to Batam in Indonesia were sprayed by hazmat suit
wearing officials before being taken for two weeks of treatment
· 14:19, 3 FEB 2020 ·
Updated14:30, 3 FEB 2020
A group of people were sprayed by officials wearing hazmat suits as they
disembarked their plane from the epicentre of the coronavirus outbreak.
The travellers had flown from Wuhan in China to the Indonesian city of
Batam where they were greeted by the hose brandishing officials.
As soon as they walked down the steps they were doused in disinfectant
by five yellow suit wearing health workers.
The plane landed in Batam yesterday, The Jakarta posted reported.
More
Staycation time 2020.
Crooks and Scoundrels Corner.
The bent, the seriously bent, and the totally doubled
over.
Today, coronavirus and trade from China’s
perspective. China issues a rebuke to the USA.
Virus won’t give the US more leverage in phase two talks
Source:Global
Times Published: 2020/2/2 22:39:22
As
China wages a nationwide battle against the outbreak of the novel coronavirus
(2019-nCoV) that has killed more than 300 people and infected over 14,000 more
and the world scrambles to cope with another potentially heavy blow to the
world economy, some in the US appear to be calculating that the epidemic, which
is expected to further drive down growth in China, would give the US extra
leverage in negotiations for a phase two trade agreement.
Needless to say, such moves are wrong on so many levels, including on a moral level. Also important is that if US officials are counting on the epidemic to gain more leverage for the phase two trade negotiations, they are gravely mistaken.
The coronavirus outbreak will pose a serious challenge for the Chinese economy, with some predicting the epidemic will slash growth in the first quarter by two percentage points. But China will not and cannot give ground on core issues of national interests in the trade talks, particularly at such a difficult time. Also important to note is that China is now even more unlikely to rush into phase two talks as it has diverted its full focus onto containing the outbreak and its impact on the domestic economy.
During a recent interview, an anchor for the Fox Business Network asked White House economic adviser Larry Kudlow if the virus will give the US more leverage in the phase two negotiations. While Kudlow said that the outbreak is "completely separate from trade, jobs and all the rest," it was telling that some in the US are calculating such a scenario.
Last week, US Commerce Secretary Wilbur Ross made a shocking statement, suggesting that the epidemic in China could "help to accelerate" the return of jobs to the US and predicating that businesses could shift their supply chain out of China due to the virus.
US officials have long been very anxious to launch negotiations for a phase two trade agreement, as US President Donald Trump faces a heated general election and continues to be engulfed in constant domestic political battles. Even before the phase one deal was inked, Washington said phase two talks would start immediately and have even indicated that tariffs could be reserved for a phase two deal.
Chinese officials have been reluctant to rush into talks for a phase two deal and have instead stressed the implementation of the phase one agreement. With their full attention now on stopping the virus outbreak, they are unlikely to commit to trade negotiations anytime soon, let alone giving ground on core issues.
However, the coronavirus outbreak, despite its deadly nature and negative impact, poses a rare opportunity for China and the US to cooperate to ease their tensions, which is also the goal of the trade talks. For instance, China has a huge demand for healthcare products and services in the fight against the epidemic, which the US could supply. China's increasing import of US products, including medical instruments, is already part of the phase one deal.
Instead of calculating how to gain more leverage in the elusive phase two negotiations, the US should work with China to fight the virus that poses risks for not just the Chinese economy but also the global economy. That is conducive to carrying out the phase one deal and paving the way for phase two talks, which US officials so crave.
Needless to say, such moves are wrong on so many levels, including on a moral level. Also important is that if US officials are counting on the epidemic to gain more leverage for the phase two trade negotiations, they are gravely mistaken.
The coronavirus outbreak will pose a serious challenge for the Chinese economy, with some predicting the epidemic will slash growth in the first quarter by two percentage points. But China will not and cannot give ground on core issues of national interests in the trade talks, particularly at such a difficult time. Also important to note is that China is now even more unlikely to rush into phase two talks as it has diverted its full focus onto containing the outbreak and its impact on the domestic economy.
During a recent interview, an anchor for the Fox Business Network asked White House economic adviser Larry Kudlow if the virus will give the US more leverage in the phase two negotiations. While Kudlow said that the outbreak is "completely separate from trade, jobs and all the rest," it was telling that some in the US are calculating such a scenario.
Last week, US Commerce Secretary Wilbur Ross made a shocking statement, suggesting that the epidemic in China could "help to accelerate" the return of jobs to the US and predicating that businesses could shift their supply chain out of China due to the virus.
US officials have long been very anxious to launch negotiations for a phase two trade agreement, as US President Donald Trump faces a heated general election and continues to be engulfed in constant domestic political battles. Even before the phase one deal was inked, Washington said phase two talks would start immediately and have even indicated that tariffs could be reserved for a phase two deal.
Chinese officials have been reluctant to rush into talks for a phase two deal and have instead stressed the implementation of the phase one agreement. With their full attention now on stopping the virus outbreak, they are unlikely to commit to trade negotiations anytime soon, let alone giving ground on core issues.
However, the coronavirus outbreak, despite its deadly nature and negative impact, poses a rare opportunity for China and the US to cooperate to ease their tensions, which is also the goal of the trade talks. For instance, China has a huge demand for healthcare products and services in the fight against the epidemic, which the US could supply. China's increasing import of US products, including medical instruments, is already part of the phase one deal.
Instead of calculating how to gain more leverage in the elusive phase two negotiations, the US should work with China to fight the virus that poses risks for not just the Chinese economy but also the global economy. That is conducive to carrying out the phase one deal and paving the way for phase two talks, which US officials so crave.
US immoral to attack China's fight against virus
Source:Global Times Published: 2020/2/2
22:37:56
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?
Hyundai aims to be Europe's top EV producer
30 January, 2029.Hyundai aims to be the biggest producer of electric cars in Europe this year after launching output of a battery-powered version of the Kona at its Czech Republic plant.
Hyundai will begin production of the Kona Electric in March at its factory in Nosovice 380 km (236 miles) east of Prague, the company said in a news release on Thursday.
Gasoline, gasoline-electric hybrid and diesel versions of the small SUV will continue to be imported into Europe from Korea.
The automaker will also increase supplies to Europe of the Kona Electric from its Ulsan plant in South Korea.
The moves will triple the availability of its Kona Electric for customers in Europe and drastically reduce delivery times, Hyundai said.
"Since going on sale in 2018, demand for the Kona Electric has surpassed expectations, and the increased capacity is intended to keep up with rising demand," Hyundai said.
Hyundai said this year it will provide more than 80,000 units of zero-emissions vehicles to European customers, including the Kona Electric, Ioniq Electric and the Nexo fuel cell car.
More than 60,000 of these vehicles could be the Kona Electric, Hyundai said.
"With this development, Hyundai expects to become the biggest provider of zero-emissions vehicles in Europe in 2020," the company said
More
https://europe.autonews.com/automakers/hyundai-aims-be-europes-top-ev-producer
Toyota-Panasonic venture to start EV battery development in April
TOKYO (Reuters) - Toyota Motor Corp (7203.T) and Panasonic Corp (6752.T) have agreed to set up a joint venture that will begin developing electric vehicle (EV) batteries from April, as the Japanese companies gear up for an expected surge in demand.The new company, called Prime Planet Energy and Solutions, will develop prismatic - or square-shaped - batteries that will be available to any automaker, the two companies said in a statement on Monday.
It will begin operations on April 1 with more than 5,000 employees, with Toyota owning 51% and Panasonic holding the remainder, the pair said.
More
https://www.reuters.com/article/us-toyota-panasonic-battery/toyota-panasonic-venture-to-start-ev-battery-development-in-april-idUSKBN1ZX0LW
China's CATL signs battery supply agreement with Tesla
SHANGHAI (Reuters) - China’s top electric vehicle battery maker CATL (300750.SZ) said on Monday it has signed a battery supply agreement with Tesla (TSLA.O).Tesla will determine the battery purchase volume between July 2020 and June 2022, according to its own needs, CATL said in a stock exchange filing, adding the agreement does not impose restrictions on Tesla’s purchase volume.
Tesla, which has a long-standing battery supply agreement with Japan’s Panasonic Corp (6752.T), said during its earnings call last week that its pact with LG Chem (051910.KS) and CATL was at a smaller scale.
More
https://www.reuters.com/article/us-tesla-catl-battery-electric/chinas-catl-signs-battery-supply-agreement-with-tesla-idUSKBN1ZX02D
“It is difficult not to marvel at the imagination which was implicit in this gargantuan insanity. If there must be madness something may be said for having it on a heroic scale."
John Kenneth Galbraith. The Great Crash: 1929.
The monthly Coppock Indicators finished January
DJIA: 28,256 +97 Up. NASDAQ: 9,151 +152 Up.
SP500: 3,226 +130 Up.
All higher again, but it’s not a buy signal I would take.
The rally is all down to the Fed monetizing at a rate of about 100 billion a
month. I continue to look on the Fed’s latest stock bubble as an exit rally,
made all the more urgent by the rising economic threat from the coronavirus
crisis.
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