Wednesday 29 December 2021

January, A Critical Month?

 Baltic Dry Index. 2217 -02  Brent Crude 79.05

Spot Gold 1807

Coronavirus Cases 02/04/20 World 1,000,000

Deaths 53,100

Coronavirus Cases 29/12/21 World 283,223,145

Deaths 5,431,077

You will find that the State is the kind of organization which, though it does big things badly, does small things badly, too.

John Kenneth Galbraith.

As the central bankster fueled stock casinos hurtle towards the New Year celebrations, something else is hurtling towards the New Year celebrations too, omicron infections.

Already resuming cruise line operations is looking to have been a reckless mistake. 

With omicron highly transmissible, the stock casinos are now starting to worry over how the rapidly rising global omicron cases might impact the global economy next month.

Will January be critical to continued global recovery? We are all about to find out.

Asia-Pacific stocks mixed as investors monitor omicron variant developments

 SINGAPORE — Shares in Asia-Pacific were mixed in Wednesday trade as investors assessed the impact of the omicron Covid variant.

The Nikkei 225 in Japan slipped 0.67% while the Topix index also declined 0.42%. South Korea’s Kospi fell 0.92%.

Mainland Chinese stocks declined, with the Shanghai composite down 0.79% while the Shenzhen component shed 1.13%. Hong Kong’s Hang Seng index fell 0.88%.

Australian stocks, which returned to trade following holidays on Monday and Tuesday, rose as the S&P/ASX 200 jumped 1.26%. The Straits Times index in Singapore also gained 0.23%.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.29%.

Investors in Asia-Pacific continued monitoring developments surrounding the omicron variant. A study from South Africa found the immune response of people infected with the omicron Covid variant appears to increase protection against delta more than fourfold and could displace it.

Overnight stateside, the S&P 500 declined 0.1% to 4,786.35, falling from the record close it saw on Monday. The Nasdaq Composite also shed 0.56% to 15,781.72. The Dow Jones Industrial Average outperformed, rising 95.83 points to 36,398.21.

 

More

https://www.cnbc.com/2021/12/29/asia-markets-omicron-covid-variant-currencies-oil.html

Japan's factory output soars as car production returns

TOKYO, Dec 28 (Reuters) - Japan's factory output jumped at the fastest pace on record in November, as easing global supply chain bottlenecks helped car production leap out of its recent slump, lifting prospects for a strong fourth-quarter economic rebound.

But while improved manufacturing conditions provide some relief for policymakers, persistent global semiconductor shortages and new risks from the Omicron coronavirus variant are expected to cloud the outlook for the world's third-largest economy.

Factory production gained 7.2% in November from the previous month, posting its largest jump since 2013 when comparable data first became available, thanks to rising output of motor vehicles and plastic products.

That meant production rose for the second straight month after increasing 1.8% in October and posted a faster rise than the 4.8% gain expected in a Reuters poll.

"Output recovered to where it was previously because car production rebounded," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"But seen from a global perspective, supply bottlenecks and especially the chip shortage are likely to be prolonged so that will slow down the recovery pace of output."

The data showed output of cars and other motor vehicles surged 43.1% from the previous month in November, also a record, while plastic products production rose 9.5%.

Despite the stronger output, Japanese automakers are still unable to completely shake off the drag from persistent global parts and chip supply issues.

Japan's top automaker Toyota Motor Corp (7203.T) said last week it would suspend production at five domestic factories in January due to supply issues and the health crisis. read more

More

https://www.reuters.com/markets/europe/japans-nov-factory-output-surges-jump-car-production-2021-12-28/

 

Global Inflation/Stagflation Watch.

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

Oil prices climb as worries over fuel demand recede

NEW DELHI, Dec 28 (Reuters) - Oil prices extended gains on Tuesday with prices trading near the previous day's one-month high on hopes that the Omicron coronavirus variant will have a limited impact on fuel demand.

Brent crude rose 7 cents, or 0.1%, to $78.67 a barrel, by 0728 GMT. U.S. West Texas Intermediate (WTI) crude rose 17 cents, or 0.2%, to $75.74 a barrel, gaining for a fifth straight session.

"Worries regarding Omicron are easing across the globe, resulting in some optimism over demand ... Prices are expected to trade with positive bias," said Abhishek Chauhan, head of commodities at Swastika Investmart Ltd.

England will not get any new COVID-19 restrictions before the end of 2021, British health minister Sajid Javid said on Monday, as the government awaits more evidence on whether the health service can cope with high infection rates. read more

However, the upside to prices remained limited after more than 1,300 flights were cancelled by U.S. airlines on Sunday as COVID-19 reduced the number of available crews while several cruise ships had to cancel stops. read more

---- Oil prices have risen around 50% this year, supported by recovering demand and supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+.

"Volumes are thin because of holidays, and markets have already digested Omicron concerns. So, the focus is on the January 4 meeting of OPEC+," Ajay Kedia, director at Kedia Commodities said.

Investors are awaiting an OPEC+ meeting on Jan. 4, at which the alliance will decide whether to go ahead with a planned 400,000 barrels-per-day production increase in February.

At its last meeting, OPEC+ stuck to its plans to boost output for January despite Omicron.

More

https://www.reuters.com/markets/commodities/oil-near-one-month-high-easing-concerns-over-omicron-2021-12-28/

These food items are getting more costly in 2022

This is the latest sign that consumers will continue to face higher costs in 2022

December 27, 2021

Everything from coffee to mustard is getting more expensive next year.

Many food manufacturers say they plan to raise prices in 2022 for a range of products from macaroni-and-cheese to snacks, the latest sign that consumers will continue to face higher costs at the supermarket.

"There’s nothing immune from price increases," said Tony Sarsam, chief executive officer of food retailer and distributor SpartanNash Co., adding that produce, dairy and packaged food such as bread and juice are among many items set to become more pricey next year.

Food prices are estimated to rise 5% in the first half of 2022, according to research firm IRI, though the level of increases will vary by grocers and regions.

Mondelez International Inc. said recently that it was raising prices across cookies, candy and other products sold in the U.S. by 6% to 7% starting in January. General Mills Inc. and Campbell Soup Co. said their price increases also would take effect in January. Kraft Heinz Co. told retailer customers that it would raise prices across many of its products including Jell-O pudding and Grey Poupon mustard, with some items going up as much as 20%, according to a memo viewed by The Wall Street Journal.

The increases follow others that food manufacturers imposed in 2021, and are part of what businesses and economists call the highest inflation in decades. Higher wage, material and freight costs are prompting industries from manufacturing to retail to raise prices of goods, creating an environment in which some executives say they have room to charge more.

Kraft Heinz said the average price increase on its products will be 5%, adding that it wasn’t passing all of its cost increases to customers. Production costs of Grey Poupon rose 22%, and the company is raising it by 6% to 13% for customers, the company said.

Mondelez, General Mills and Campbell had no additional comment.

---- Coming price increases in 2022 range from as low as 2% to 20%, hitting all sections of the grocery store including produce and packaged goods. Potatoes, celery and other heavier vegetables will have higher price tags next year in part because of higher freight costs, supermarket executives said. Wine, beer and liquor are also likely to get more expensive, they said, especially those that are imported.

Pantry staples such as mayonnaise and frozen meals are expected to be more pricey partly because of higher labor, logistics and packaging costs, some executives said.

Consumers remain willing to spend on groceries even as prices rise, some companies say, though that is starting to change. As shoppers become more price-sensitive, they are buying cheaper versions of meat and cooking oil, among others, industry executives said. Supermarkets say they are taking various approaches to combat price increases as consumers react to prices, including discontinuing certain items.

More

https://www.foxbusiness.com/markets/these-food-items-more-costly-2022

Half of all UK small businesses to raise prices in 2022 while one in three plan redundancies as furlough has ended

Tuesday 28 December 2021 8:25 am

Half of small and medium-sized enterprises in the UK plan to raise their prices next year, with supply chain disruption being the key driver.

Moreover, one in three owner-managed businesses plan to make redundancies now the safety net of furlough has been removed, according to new research shared with City A.M. this morning.

Those businesses planning to make redundancies are on average considering shedding 45% of their workforces over the next six months, accountancy network Moore UK found.

Owner-managed businesses in London are more likely than those in any other part of the UK to be planning redundancies, with 42 per cent considering laying off staff.

Moore said that this likely reflects the effects of the pandemic on the finances of restaurants, hotels and pubs, which make up a significant part of London’s economy.

Maureen Penfold, Chair of Moore UK, says that while a wave of redundancies did not materialise at the end of furlough on September 30, many businesses are now waiting to see whether layoffs become necessary over the coming months.

“It’s surprising to see so many businesses are considering reducing staffing numbers so substantially. Policymakers should be careful not to assume that the economy is back in rude health – especially taking into account how the new restrictions just implemented may further impact businesses.”

“No business wants to lay off staff if it can be avoided and it seems like many are still waiting to see if they need to press that button. Their cash flow might allow them to keep their full workforces employed for now but they have plans in place to quickly make redundancies if they need to,” Penfold concluded.

https://www.cityam.com/half-of-all-uk-small-businesses-to-raise-prices-in-2022-while-one-in-three-plan-redundancies-as-furlough-has-ended/

 

Covid-19 Corner

This section will continue until it becomes unneeded.

Omicron infection appears to protect against Covid delta variant and could displace it, South Africa study finds

People infected with the heavily mutated omicron variant of Covid-19 may have increased immune protection against delta, a new study says.

As a consequence, omicron could displace delta, according to the small study published by South African scientists this week.

The findings could have significant implications for nations such as the United States where omicron infections are rapidly increasing but the delta variant, which has caused an increase in hospitalizations, is still widespread.

“These results are consistent with Omicron displacing the Delta variant, since it can elicit immunity which neutralizes Delta making re-infection with Delta less likely,” the team of scientists, led by Khadija Khan at the Africa Health Research Institute, wrote in their findings.

If omicron displaces delta and proves more mild than past variants, “the incidence of Covid-19 severe disease would be reduced and the infection may shift to become less disruptive to individuals and society,” according to the scientists’ findings.

Omicron was first identified by South Africa and Botswana in November.

The study has not yet been peer-reviewed. Researchers have been publishing their findings before they are evaluated by other experts in the field due to the urgent nature of the pandemic.

The study followed 13 people, 11 of whom had been infected with the omicron variant. Seven of the participants were vaccinated: three people who received two doses of the Pfizer and BioNTech vaccine and four who received the Johnson & Johnson shot.

The antibody response of people infected with omicron appeared to increase protection against the delta variant more than fourfold two weeks after the participants enrolled in the study. Participants also showed a fourteenfold increase in the ability of antibodies to block omicron reinfection.

However, the scientists cautioned that it is unclear whether increased protection is due to omicron-induced antibodies, vaccination or immunity from a previous infection. Vaccinated individuals demonstrated stronger protection.

More

https://www.cnbc.com/2021/12/28/covid-omicron-appears-to-protect-against-delta-could-displace-it-study.html

Nearly 90 cruise ships report coronavirus cases and the rate of home-price growth is slowing

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