Baltic Dry Index. 1327 -53 Brent Crude 58.66
Spot Gold 1820
Coronavirus Cases 02/04/20 World 1,000,000
Deaths 53,100
Coronavirus Cases 04/02/21 World 104,916,327
Deaths 2,278,727
“Plus ça change, plus c'est la même chose “ – the more things change, the more they stay the same.
Jean-Baptiste Alphonse Karr. 1849.
In the central bankster funded stock casinos, a return of sorts to a new normality. But keep a watchful eye on US bond prices and rising crude oil prices.
Are both very early signals of a return of inflation?
Asian stocks ease on China liquidity worries, stimulus hopes lift U.S. bond yields
(Reuters) - Online brokerage app Robinhood, which is at the center of a Reddit-fueled rally in a handful of stocks heavily shorted by hedge funds, said on Wednesday it would allow investors to buy fractional shares in GameStop Corp and AMC Entertainment Holdings Inc.
The move allows buying parts of shares, often to encourage participation from smaller investors by reducing the size of the amount they have to bet.
Robinhood’s website showed on Wednesday trading restrictions were placed only on GameStop and AMC’s stock, while restrictions on others had been lifted.
Trading limit on GameStop’s shares was increased to 500 from 100. For AMC, the limit was set at 5,500 shares.
Last week, Chief Executive Officer Vlad Tenev said the app had temporarily curbed some transactions because a clearinghouse had asked for $3 billion in collateral.
The demand forced Robinhood to seek emergency funding from investors who poured in $2.4 billion on Monday, over and above the $1 billion the online brokerage raised last week.
Clearinghouses are intermediaries which ensure the completion of a stock trade even if one side of the deal goes bust.
Back in the real economy yet more signs of disruption and rising distress.
GM to idle 3 plants in North America due to semiconductor shortage
February 3, 2021
General Motors is idling three of its assembly plants in North America and running a fourth in South Korea at half capacity for one week as it struggles with the ongoing semiconductor shortage that has already impacted production at Ford Motor Co., Stellantis and others globally.
On Monday, GM will idle the following plants — which run two shifts — for a week:
- Fairfax Assembly and Stamping Plant in Kansas City, Kansas: About 2,000 hourly workers build the Chevrolet Malibu sedan and Cadillac XT4 SUV.
- CAMI, Ingersoll, Ontario Canada: About 1,500 hourly workers build the Chevrolet Equinox SUV.
- San Luis Potosí, Mexico: GM builds Chevrolet Equinox and Trax and GMC Terrain SUVs.
Some related GM plants that supply engines and other parts to the plants to be idled may be minorly impacted. For example, the engine plant at GM's Spring Hill Assembly complex will reduce a shift on one engine line next week because GM sends that engine to Fairfax.
In addition, GM will run its Bupyeong 2 assembly plant in South Korea at half capacity beginning the week of Feb. 8. GM builds the Chevy Malibu, Trax and Buick Encore SUV there for sale in the United States.
On Jan. 22, Business Korea reported that GM planned to cut vehicle production by suspending overtime and extra work at its Bupyeong plant because of the semiconductor shortage. It uses the chips in its electronic control units and infotainment systems.
---- The UAW reacted to GM's news by saying its leaders continue to work with major employers, the Biden administration, Congress and suppliers to address the semiconductor shortage.
"Over the past 30 years, production of semiconductors has been offshored to South Korea, Taiwan and more recently, China," said UAW spokesman Brian Rothenberg in a statement. "Today, the United States only controls manufacturing for about 14% of all semiconductors."
The union negotiated worker protection in the event of parts shortages interrupting production in its contract, he said. Union workers will receive supplemental pay and unemployment that pays 75% to 80% of salary and continued benefits.
More
Mazda may cut global vehicle output by 34,000 in February and March, sources say
February 3, 2021
TOKYO (Reuters) - Mazda Motor Corp is considering cutting its global output by a 34,000 vehicles in February and March due to a chip shortage, two sources familiar with the matter said on Wednesday.
Last week, Mazda was considering cutting output of models that include its CX-5 and CX-30 SUVs, as well as the Mazda 3 sedan, due to a shortage in supplies of chips used for brake systems and safety components, said the sources, who declined to be identified.
The company plans to reduce its domestic output of the CX-5 by around 3,900 vehicles this month, they said. As of last week, it was considering reducing production of the SUV by about 6,000 vehicles in March, the sources said.
The semiconductor shortage, which in some cases has been exacerbated by the former U.S. administration’s actions against chip factories in China, is now causing global automakers to curtail production and shut assembly lines.
Mazda is also considering an output cut in Japan, China and Mexico for the Mazda 3 and the CX-30 models, the sources told Reuters.
A Mazda spokesman confirmed the company expected to see an impact on its output in February, without elaborating on the size of any reduction.
“We are expecting a (global) impact on our output in February,” a Mazda spokesman said. “We continue to do our best to minimise the impact.”
He did not specify how many fewer cars will be made, adding the situation changes on a daily basis as the company continues to make adjustments with its suppliers.
Mazda will drop its production pace and is not planning to halt the lines at its plants, he said.
American Airlines sending 13,000 furlough warnings as pandemic pain persists
(Reuters) - American Airlines said on Wednesday that some 13,000 employees are at risk of furlough when a U.S. aid package for airline workers expires on April 1, blaming slow vaccine rollouts and new international travel restrictions for dampening demand.
“We are nearly five weeks into 2021, and unfortunately, we find ourselves in a situation similar to much of 2020,” Chief Executive Doug Parker and President Robert Isom said in a memo to employees which was also included in a regulatory filing.
Fort Worth, Texas-based American furloughed 19,000 workers when a previous round of government payroll support ended on Oct. 1 but recalled them in December after a fresh $15 billion for the industry through March.
Aviation unions are already pushing for another $15 billion in U.S. payroll assistance to protect jobs through the summer.
“The vaccine is not being distributed as quickly as any of us believed, and new restrictions on international travel that require customers to have a negative COVID-19 test have dampened demand,” American said, adding that the company will not fly all of its aircraft this summer as planned.
United Airlines has sent fresh furlough warnings to 14,000 employees, while Delta Air Lines Inc and Southwest Airlines Co have averted layoffs mostly thanks to voluntary leave programs.
American and United also offered voluntary deals to reduce staffing last year but were still forced to furlough.
American said it was launching a fresh round of exit packages in an effort to mitigate potential involuntary furloughs, similar to plans by United.
They are required by law to inform employees whose jobs are at risk, generally within 60 days
More
In post Brexit news, life goes on.
Swiss approve trading of Swiss stocks on UK exchanges
February 3, 2021 7:14 AM
ZURICH (Reuters) - The Swiss government has given the green light for trading of Swiss companies' shares on British exchanges to resume, the Swiss financial markets supervisor FINMA said here on Wednesday.
Brussels blocked European Union investors from trading on Swiss bourses in June 2019 after a treaty row, with Switzerland then banning EU exchanges from trading Swiss shares.
But Britain is no longer bound by EU rules since its full departure from the bloc, and the countries are working to rebuild bilateral ties. Switzerland is not a member of the European Union.
London platforms handled around 1.2 billion euros ($1.44 billion) daily in Swiss shares, or about 27% of the total volume in the run up to the EU ban, Cboe figures showed.
The return of Swiss trading will be a small boon for London’s equity markets, after Brexit meant billions of euros worth of daily share trading in EU stocks left the capital for platforms in Amsterdam and Paris.
Finally, only in America’s revolving door between the District of Crooks and Wall Street banksterism. The RMS Board of Trade whitewash enquiry into the sinking of the RMS Titanic comes to mind.
Exclusive: Treasury's Yellen calls top regulator meeting on GameStop volatility, consults ethics lawyer
February 3, 2021 1:46 AM By David Lawder, Trevor Hunnicutt
WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen is calling a meeting of top financial regulators this week to discuss market volatility driven by retail trading in shares of GameStop Corp , silver and other stocks favored on social media.
Yellen will convene the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission, the Treasury said on Tuesday.
Yellen sought and received permission from ethics lawyers before calling the meeting, according to a document seen by Reuters, along with clearance to engage on wide-ranging issues in the financial services industry.
Yellen's decision to seek the waiver followed a report here by Reuters that because of speaking fees she was paid by a key player in the GameStop saga, hedge fund Citadel LLC, she may need permission to deal with matters involving the firm.
A Treasury official, who declined to be identified by name, said the meeting would be held this week, possibly as early as Thursday.
“Secretary Yellen believes the integrity of markets is important and has asked for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” Treasury spokeswoman Alexandra LaManna said in a statement to Reuters.
Yellen’s action comes after days of gyrations in the shares of video-game retailer GameStop, headphone maker Koss Corp, cinema chain AMC Entertainment and other stocks and commodities favored on the Reddit social media site’s Wall Street Bets forum.
Retail traders last week bid up the shares to force short-sellers, who profit if a stock falls, to close their positions at massive losses, sending GameStop to a dizzying high of $483.
---- The SEC last week warned here that "extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence."
The Federal Reserve Board declined to comment and the SEC, New York Fed and CFTC did not respond to queries about the meeting late on Tuesday.
The saga is likely to expedite a regulatory review of the ever-larger role played by non-bank firms in the financial markets, regulatory experts say.
One of these is Citadel, which extended hedge fund Melvin Capital a $2.75 billion lifeline last week after the latter firm suffered massive losses in short positions.
Yellen earned more than $700,000 in speaking fees from Citadel, as recently as last fall. In an ethics agreement here, she pledged not to involve herself in specific matters involving the firm - as well as major banks including Citigroup, Barclays and Goldman Sachs - without first seeking authorization.
Treasury ethics attorneys have given Yellen flexibility to work on any related markets or broad financial services sector issues, with no limits on current or future matters, the Treasury official said. She may need to seek further authorization to deal with specific firms she listed.
In the memo granting Yellen permission to call the meeting of regulators, a Treasury ethics official, Brian Sonfield, said it would be “difficult, if not impossible” for Yellen to recuse herself from matters involving market volatility.
More
“When I used to read fairy tales, I fancied that kind of thing never happened, and now here I am in the middle of one!”
Fed Chairwoman Yellen, with apologies to Lewis Carroll and Alice.
Covid-19 Corner
This section will continue until it becomes unneeded.
Up first today, a science experiment right out of Frankenstein. What if we’re just training the virus how to mutate?
Britain trial to test combining Pfizer and AstraZeneca vaccines in two-shot regimen
LONDON (Reuters) - Britain on Thursday launched a trial to assess the immune responses generated if doses of the COVID-19 vaccines from Pfizer Inc and AstraZeneca Plc are combined in a two-shot schedule.
The British researchers behind the trial said data on vaccinating people with the two different types of coronavirus vaccines could help understanding of whether shots can be rolled out with greater flexibility around the world. Initial data on immune responses is expected to be generated around June.
The trial will examine the immune responses of an initial dose of Pfizer vaccine followed by a booster of AstraZeneca’s, as well as vice versa, with intervals of 4 and 12 weeks.
Both the mRNA shot developed by Pfizer and Biontech and the adenovirus viral vector vaccine developed by Oxford University and AstraZeneca are currently being rolled out in Britain, with a 12-week gap between two doses of the same vaccine.
It is expected more vaccines will be added to the trial when they are approved and rolled out.
Recruitment for the study starts on Thursday, with over 800 participants expected to take part, the researchers said. That makes it much smaller than the clinical trials that have been used to determine efficacy of the vaccines individually.
More
Scientists uncover potential antiviral treatment for COVID-19
News Release 2-Feb-2021 University of Nottingham
Researchers from the University of Nottingham have discovered a novel antiviral property of a drug that could have major implications in how future epidemics / pandemics - including Covid-19 - are managed.
The study, published in Viruses*, shows that thapsigargin is a promising broad spectrum antiviral, highly effective against Covid-19 virus (SARS-CoV-2), a common cold coronavirus, respiratory syncytial virus (RSV) and the influenza A virus.
Given that acute respiratory virus infections caused by different viruses are clinically indistinguishable on presentation, an effective broad-spectrum that can target different virus types at the same time could significantly improve clinical management. An antiviral of this type could potentially be made available for community use to control active infection and its spread.
The study is a collaborative project led by Professor Kin-Chow Chang and experts at the University of Nottingham (Schools of Veterinary Medicine and Sciences, Biosciences, Pharmacy, Medicine, and Chemistry), and colleagues at the Animal and Plant Health Agency (APHA), China Agricultural University and the Pirbright Institute.
In this ground-breaking study, the team of experts found that the plant-derived antiviral, at small doses, triggers a highly effective broad-spectrum host-centred antiviral innate immune response against three major types of human respiratory viruses - including Covid-19.
The key features based on cell and animal studies, which make thapsigargin a promising antiviral are that it is:
- effective against viral infection when used before or during active infection
- able to prevent a virus from making new copies of itself in cells for at least 48 hours after a single 30-minute exposure.
- stable in acidic pH, as found in the stomach, and therefore can be taken orally, so could be administered without the need for injections or hospital admission.
- not sensitive to virus resistance.
- at least several hundred-fold more effective than current antiviral options.
- just as effective in blocking combined infection with coronavirus and influenza A virus as in single-virus infection.
- safe as an antiviral (a derivative of thapsigargin has been tested in prostate cancer).
Professor Chang said: "Whilst we are still at the early stages of research into this antiviral and its impact on how viruses such as Covid-19 can be treated, these findings are hugely significant.
More
https://www.eurekalert.org/pub_releases/2021-02/uon-sup020121.php
Covid in UK mutating to mimic South African variant
Mutation of spike protein in original and newer Kent variant of virus is likely to render current vaccines less effective
Covid in the UK is mutating to mimic the South African variant, officials have discovered, with dozens of cases found across the country.
Genomic sequencing has identified a mutation of the spike protein, both in the original strain and the newer Kent variant of the virus, which is likely to render current vaccines less effective. The E484K mutation resembles that seen in the South African and Brizilian variants.
The discovery emerged the day after ministers ordered door-to-door testing in eight postcodes across England after cases of the South African type were discovered with no obvious link to recent travel.
Further "surge testing" was ordered on Tuesday for neighbourhoods of Bristol – where the E484K mutation was discovered in 11 cases of the Kent variant – and in Liverpool, where it was discovered in 32 cases of the original variant.
Despite the recent focus of officials having been on securing borders, experts warned on Tuesday night it was "inevitable" that the strains already in the UK would mutate as a result of natural selection. However, they said it was too early to determine whether the mutation would become dominant over other forms of Covid.
Matt Hancock, the Health Secretary, said: "In all these areas it is imperative that people must stay at home and only leave home where it is absolutely essential."
Michelle Donelan, the universities minister, went further, suggesting those living in areas where the South African variant is present should exercise inside and consider eating what they can find in their house rather than shopping for fresh supplies.
She told the BBC: "The time is now for them to have extra conversations with their employers, for them to consider do they really need to go to the shops or could they have what they have got in their house? Do they need to go outside to exercise, could they do that indoors – because we all have to be vigilant."
Dr Julian Tang, honorary associate professor at the University of Leicester, said the UK was now at risk of becoming "a melting pot" for emerging variants of Covid.
"Closing borders/restricting travel may help a little with this, but there is now probably already a sufficient critical mass of virus-infected people within the endemic UK population to allow this natural selection/evolution to proceed," he said.
So far, laboratory studies have indicated that the UK variant is similarly reactive to the current crop of vaccines as the original strain. However, if it increasingly displays the E484K mutation – in common with the South African variant – it is likely to be more resistant, rendering vaccines only 60 per cent effective.
It came as a study by Cambridge University suggested that the Pfizer vaccine works less well against cases involving E484k, requing 10 times the amount of antibodies to neutralise the virus. The findings also indicated that one dose of Pfizer jab was not enough to protect those aged 80 and over, and suggesting partial dosing might be fuelling mutations.
More
GSK, CureVac partnership eyes COVID-19 vaccine against multiple variants
February 3, 2021 7:34 AM
FRANKFURT (Reuters) - Britain’s GlaxoSmithKline and German biotech firm CureVac struck a 150 million euro ($180 million) deal to develop next-generation vaccines against COVID-19 that target several variants in one product.
In a joint statement on Wednesday, the partners said they were targeting a possible launch in 2022.
GSK, which holds a stake in CureVac, will also support the production of up to 100 million doses of CureVac’s first generation COVID-19 vaccine candidate in 2021, they said.
For GSK, the world’s largest vaccine maker by sales, it marks a fresh attempt to play a relevant role in fighting the pandemic after a COVID-19 alliance with Sanofi was hobbled by development delays and after a similar collaboration with China’s Clover Biopharmaceuticals was ended.
Vaccines may protect against severe disease even as variants evolve, Oxford's Pollard says
February 3, 2021 7:49 AM
LONDON (Reuters) - COVID-19 vaccines might offer protection against severe disease even as coronavirus variants evolve to better allow continued transmission between people, the head of the Oxford Vaccine Group Andrew Pollard said on Wednesday.
Asked how effective the Oxford/AstraZeneca will be against new variants, he said “they are making changes that allow them to avoid human immune responses, so that they can still transmit.”
“So, that does mean that it’s likely over time that the virus will find ways of adapting so that can continue to pass between people,” he told BBC TV.
“But that doesn’t mean that we won’t still have protection against severe disease... The virus is much more about the virus being able to continue to survive, rather than trying to cause harm to us.”
Recovered COVID patients likely protected for at least six months, study finds
February 3, 2021 12:04 AM
LONDON (Reuters) - Almost all people previously infected with COVID-19 have high levels of antibodies for at least six months that are likely to protect them from reinfection with the disease, results of a major UK study showed on Wednesday.
Scientists said the study, which measured levels of previous COVID-19 infection in populations across Britain, as well as how long antibodies persisted in those infected, should provide some reassurance that swift cases of reinfection will be rare.
“The vast majority of people retain detectable antibodies for at least six months after infection with the coronavirus,” said Naomi Allen, a professor and chief scientist at the UK Biobank, where the study was carried out.
Among participants who had tested positive for previous COVID-19 infection, 99% retained antibodies to SARS-CoV-2 for three months, the results showed. After the full six months of follow-up in the study, 88% still had them.
“Although we cannot be certain how this relates to immunity, the results suggest that people may be protected against subsequent infection for at least six months following natural infection,” Allen said.
She said the findings were also consistent with results of other studies in the United Kingdom and Iceland which found that antibodies to the coronavirus tended to persist for several months in those who have had the disease and recovered.
More
Next, some vaccine links kindly sent along from a LIR reader in Canada. The links come from a most informative update from Stanford Hospital in California.
World Health Organization - Landscape of COVID-19 candidate vaccines. https://www.who.int/publications/m/item/draft-landscape-of-covid-19-candidate-vaccines
NY Times Coronavirus Vaccine Tracker. https://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html
Stanford Website. https://racetoacure.stanford.edu/clinical-trials/132
Regulatory Focus COVID-19 vaccine tracker. https://www.raps.org/news-and-articles/news-articles/2020/3/covid-19-vaccine-tracker
Some other useful Covid links.
Johns Hopkins Coronavirus resource centre
https://coronavirus.jhu.edu/map.html
Rt Covid-19
Covid19info.live
Centers for Disease Control Coronavirus
https://www.cdc.gov/coronavirus/2019-ncov/index.html
The Spectator Covid-19 data tracker (UK)
https://data.spectator.co.uk/city/national
Technology Update.
With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported.
More follow up to peppering up Perovskite solar cells. Something we’ve covered before.
Chili Pepper Compound Increases Solar Cell Efficiency
Adding capsaicin, the chemical responsible for making chili peppers spicy, improved the efficiency of solar cells in experiments
smithsonianmag.com February 2, 2021 8:45AM
New research suggests spicy solar cells might work more efficiently. That’s right, scientists treated solar cells with capsaicin, the compound responsible for the mouth-burning heat of chili peppers, and found those cells became more efficient at turning solar energy into electricity, reports Karina Shah for New Scientist.
The findings, published last month in the journal Joule, apply to an up-and-coming type of solar cell utilizing materials called perovskites that often contain lead-based materials. Silicon has dominated solar panel construction for decades now, but perovskite solar cells have shown promise working in tandem with silicon solar cells to harvest even more energy, as well as on their own where they can be made thin and flexible, reported Andy Extance for Nature in 2019.
However, while perovskite solar cells beat silicon’s efficiency at absorbing sunlight, the technology has had issues turning that sunlight into electricity—instead losing it as heat, per New Scientist.
Qinye Bao, the study’s senior author and an electrical engineer at East China Normal University, were looking for some cheap, easy-to-find additive that could help alleviate this issue with perovskite solar cells. "Considering the electric, chemical, optical, and stable properties of capsaicin, we preliminarily found that it would be a promising candidate," says Bao in a statement.
When the researchers behind the new study added capsaicin to thin perovskite solar cells in the lab, the spicy chemical compound increased the solar cells’ efficiency. The untreated cells’ power conversion was 19.1 percent, but the capsaicin-treated cells converted 21.88 percent of the available solar energy, according to the study. Per the statement, the treated solar cells were also more stable, retaining more than 90 percent of their efficiency after 800 hours.
As Jon Major, a renewables researcher at the University of Liverpool, writes in the Conversation:
“Adding capsaicin expands the grains which make up the active material of the solar cell, allowing it to more effectively transport electricity. More importantly, the material goes from having a deficit of electrons to having an excess, changing how the cell operates and allowing more sunlight to be converted to electricity.”
Subsequent analysis using spectroscopy confirmed that the capsaicin somehow led to an increased number of free electrons on the solar cells’ surface and reduced heat loss, according to New Scientist. However, the researchers aren’t exactly sure how capsaicin did all that. Bao tells New Scientist that his team thinks the capsaicin molecules may react with lead ions inside the perovskite solar cells, freeing up electrons which are then available to carry a charge.
Perovskite cells can be cheaper and easier to make than silicon solar cells, according to Nature, and tricks like adding a bit of spice could make them into an even more promising part of a future that is less reliant on planet-warming fossil fuels.
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