Saturday, 20 August 2022

Special Update 20/8/22 Stocks Trading On Hopium. Easy Maths.

Baltic Dry Index. 1279 -72   Brent Crude 96.15

Spot Gold 1747       US 2 Year Yield 3.25 +0.03

Covid-19 cases 02/04/20 World 1,000,000

Deaths 53,100

Covid-19 cases 06/08/22 World 599,977,810

Deaths 6,469,911

 “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”

Sir Winston Churchill.

In the US stock casinos, more hopium that the bottom’s in. Well maybe, but my money is on maybe not.

To me, I see recession looming and arriving fast.

I see a northern hemisphere winter of fuel and food shortages, dismayed and distressed workers.

I see more global interest rate rises ahead in a mostly futile attempt to break the inflation cycle.

I see nothing good for most stocks ahead, probably all the way out to 2024.

Wall St Week Ahead: Summer rebound in U.S. stocks gains fans among chart-watching investors

NEW YORK, Aug 19 (Reuters) - The rebound in U.S. stocks is gaining believers among investors who study market trends, bolstering hopes for equities in the second half of 2022.

After notching its worst first half since 1970, the S&P 500 has bounced some 15% from its mid-June low, fueled by stronger-than-expected corporate earnings and hopes the economy can avoid a recession even as the Federal Reserve raises rates to tame inflation.

Past rallies in stocks have been short-lived this year and many market participants believe it is too early for optimism. Federal Reserve officials have gone out of their way to emphasize that the central bank has plenty of work to do in bringing down inflation, and the coming week’s symposium in Jackson Hole, Wyoming, could see them once again push back on expectations of a dovish monetary policy pivot, one narrative that has helped lift stocks. read more

The S&P 500 closed down about 1.29% on Friday, ending a streak of four straight weekly gains. read more

Still, those who look to market phenomena such as breadth, momentum and trading patterns to inform their investment decisions see a more optimistic picture, and are growing convinced the recent gains in equities are unlikely to fade.

Several indicators "really suggest that that low we had in June is certainly more durable than the low we had in May or March,” said Willie Delwiche, an investment strategist at market research firm All Star Charts. "It’s a rally that can be leaned in to, not one that needs to be feared at this point.”

---- One important technical indicator was hit earlier this month, when the S&P 500 recovered 50% of its bear market price decline. Since World War Two, the index has not gone on to make a new low after such a move, according to Sam Stovall, chief investment strategist at CFRA Research. read more

Some indicators do not support more gains. Analysts at BofA Global Research said that stocks have historically bottomed when the sum of inflation and trailing price/earnings was less than 20. That number currently stands at 28.5, the bank wrote on Wednesday.

At the same time, the U.S. Treasury yield curve typically steepens around market bottoms, according to Strategas' Sohn. The current shape of the curve, however, shows yields for shorter-dated bonds exceeding those for many longer-dated ones, a sign that has preceded past recessions. (LINK)

More

Wall St Week Ahead: Summer rebound in U.S. stocks gains fans among chart-watching investors | Reuters

European markets close lower as investors digest gloomy German data

UPDATED FRI, AUG 19 2022 11:36 AM EDT

European markets closed lower Friday, tracking global uncertainty as investors chart the course for monetary policy and continue to digest corporate earnings reports.

The pan-European Stoxx 600 provisionally ended 0.8% lower, with travel and leisure stocks leading losses, down 3%. Health care stocks, meanwhile, added 0.7%.

Investor sentiment has been tepid since mid-week after minutes from the Federal Reserve’s July meeting showed policymakers would not consider pulling back on interest rate hikes until inflation came down substantially, despite a slight slowing in inflation that had offered some hope for a less aggressive tightening path.

On the data front, European investors were digesting July’s U.K. retail sales and German producer prices on Friday.

Markets in Asia-Pacific were mixed on Friday, taking their cues from a muted Wall Street. Stocks slipped lower stateside as the summer rally appeared to falter, with the S&P 500 and Nasdaq Composite on pace to end the week on a sour note.

British cinema chain  saw shares plunge Friday on reports that it is preparing to file for bankruptcy after failing to entice viewers back to movie theatres following a pandemic lull.

The stock was down around 67% in mid-afternoon trade in London.

It comes after reports first cited in The Wall Street Journal that the company, which owns Regal Cinemas, has engaged a team of lawyers and consultants to advise on the bankruptcy process.

Cineworld is the latest casualty of the movie theater industry, which has struggled to regain its footing following coronavirus pandemic lockdowns, with viewers increasingly inclined to stream movie releases at home.

Europe markets: Tracking global caution (cnbc.com)

Record jump in German producer prices adds to gloomy outlook

PUBLISHED FRI, AUG 19 2022 4:54 AM EDT

The economic outlook for Germany is gloomy due to energy price rises and supply chain disruptions, the finance ministry said on Friday, a message underscored by a record jump in producer prices.

The German economy, Europe’s largest, stagnated in the second quarter, with the war in Ukraine, soaring energy prices, the pandemic and supply disruptions bringing it to the edge of a downturn.

“The outlook for the further development (of the economy) is currently noticeably gloomy,” the ministry said in its August monthly report, adding that it was marked by “a high degree of uncertainty”.

“The significantly lower gas supplies from Russia, the persistently high price increases for energy and, increasingly, other goods, as well as the longer-than-expected supply chain disruptions, also in connection with China’s zero-COVID policy, are weighing heavily on the economy’s development,” it said.

Producer prices, regarded as a leading indicator for inflation, saw their highest jumps on record both on the month and on the year in July, driven primarily by high energy prices, said the federal statistics office on Friday.

Energy prices as a whole were up 105% compared with July 2021, due mainly to higher prices for natural gas and electricity, the office said.

Feeding into already high energy costs, the German government will impose levies on gas consumers from Oct. 1 that will add several hundred euros to the average family’s annual energy bill. To cushion the blow, sales taxes on gas are set to be reduced to 7% from 19% while the levies are in place.

Higher energy prices mean inflation is unlikely to cool off anytime soon: Germany’s annual inflation rate in July was 8.5%, in line with the wider eurozone’s record rate of 8.9%.

The German government in April forecast 2022 inflation at 6.1%. It will present updated economic projections on Oct. 12, the finance ministry said.

Record jump in German producer prices adds to gloomy outlook (cnbc.com)

In other news, the world is fast splitting into two very different trading blocks.

China's July Russian coal imports hit 5-yr high as West shuns Moscow

SINGAPORE, Aug 20 (Reuters) - China's coal imports from Russia jumped 14% in July from a year earlier to their highest in at least five years, as China bought discounted coal while Western countries shunned Russian cargoes over its invasion of Ukraine.

China brought in 7.42 million tonnes of coal from Russia last month, data from the General Administration of Customs showed on Saturday. That was the highest monthly figure since comparable statistics began in 2017, up from 6.12 million tonnes in June and 6.49 million tonnes in July 2021.

Western countries were avoiding cargoes from Russia ahead of a European Union ban on Russian coal that came into force on Aug. 11, aimed at reducing the Kremlin's energy revenue over its February invasion. read more

The ban has forced Russia to target buyers such as China and India and sell at a steep discount.

Russian thermal coal with a heating value of 5,500 kilocalories (kcal) traded around $150 a tonne on a cost-and-freight basis in late July, while coal of the same quality at Australia's Newcastle port was assessed at more than $210 a tonne on a free-on-board (FOB) basis.

Some Chinese traders expect more Russian coal to flow into China in the fourth quarter when utilities in northern China build stocks for the winter heating season.

More

China's July Russian coal imports hit 5-yr high as West shuns Moscow | Reuters

Russia is China's top oil supplier for 3rd mth in July- customs data

Aug 20 (Reuters) - Russia held its spot as China's top oil supplier for a third month in July, data showed on Saturday, as independent refiners stepped up purchases of discounted supplies while cutting shipments from rival suppliers such as Angola and Brazil. read more

Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia's European and Far Eastern ports, totalled 7.15 million tonnes, up 7.6% from a year ago, data from the Chinese General Administration of Customs showed.

Still, Russian supplies in July, equivalent to about 1.68 million barrels per day (bpd), were below May's record of close to 2 million bpd. China is Russia's largest oil buyer.

Imports from second-ranking Saudi Arabia rebounded last month from June, which was the lowest in more than three years, to 6.56 million tonnes, or 1.54 million bpd, but still slightly below year-ago level.

Year-to-date imports from Russia totalled 48.45 million tonnes, up 4.4% on the year, still trailing behind Saudi Arabia, which supplied 49.84 million tonnes, or 1% below the year-ago level.

---- The strong Russian purchases squeezed out competing supplies from Angola and Brazil, which fell 27% year-on-year and 58%, respectively.

Customs reported no imports from Venezuela or Iran last month. State oil firms have shunned purchases since late 2019 for fear of falling foul of secondary U.S. sanctions.

Imports from Malaysia, often used as a transfer point in the past two years for oil originating from Iran and Venezuela, soared 183% on the year, to 3.34 million tonnes, and up from June's 2.65 million tonnes.

More

Russia is China's top oil supplier for 3rd mth in July- customs data | Reuters

 

Global Inflation/Stagflation/Recession Watch.     

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

Shell cuts output at German Rhineland refinery due to drought

FRANKFURT, Aug 18 (Reuters) - Oil major Shell (SHEL.L) on Thursday said it had to cut output at its German Rhineland refining facility, which makes fuels, heating oil and petrochemicals, citing low Rhine levels that have made the transport of goods via the river more challenging.

"Due to the low Rhine water level we have reduced the capacity of Shell Energy and Chemicals Park Rhineland. The situation regarding supply is challenging but carefully managed," the company said in an e-mailed statement.

The company did not say to what level capacity of the site which can process up to 17 million tonnes of crude oil a year, or 345,000 barrel per day, had been cut.

Continued extremely low water levels on the Rhine have inflated freight rates as some ships are touching the riverbed even when empty, said Lars van Wageningen at shipping consultancy Insights Global.

The water level at the Rhine chokepoint of Kaub near Koblenz was at 34 centimetres on Thursday, still near lows last seen in 2018. Vessels need about 1.5 metres to sail fully loaded.

Shell cuts output at German Rhineland refinery due to drought | Reuters

Low water levels on Danube reveal sunken WW2 German warships

PRAHOVO, Serbia, Aug 19 (Reuters) - Europe's worst drought in years has pushed the mighty river Danube to one of its lowest levels in almost a century, exposing the hulks of dozens of explosives-laden German warships sunk during World War Two near Serbia's river port town of Prahovo.

The vessels were among hundreds scuttled along the Danube by Nazi Germany's Black Sea fleet in 1944 as they retreated from advancing Soviet forces, and still hamper river traffic during low water levels.

However, this year's drought - viewed by scientists as a consequence of global warming - has exposed more than 20 hulks on a stretch of the Danube near Prahovo in eastern Serbia, many of which still contain tonnes of ammunition and explosives and pose a danger to shipping.

"The German flotilla has left behind a big ecological disaster that threatens us, people of Prahovo," said Velimir Trajilovic, 74, a pensioner from Prahovo who wrote a book about the German ships.

Workers in the local fishing industry are also at risk, including from Romania which lies just across the river.

Months of drought and record-high temperatures have snarled river traffic on vital arteries in other parts of Europe, including Germany, Italy and France. In Serbia, the authorities have resorted to dredging to keep navigation lanes on the Danube open. read more

By Prahovo, some of the hulks have narrowed the navigable section on this stretch of the Danube to just 100 metres (330 feet) from 180 metres.

Strewn across the riverbed, some of the ships still boast turrets, command bridges, broken masts and twisted hulls, while others lie mostly submerged under sand banks.

In March, the Serbian government invited a tender for the salvage of the hulks and removal of ammunition and explosives. The cost of the operation was estimated at 29 million euros ($30 million).

Low water levels on Danube reveal sunken WW2 German warships | Reuters

Below, why a “green energy” economy may not be possible, and if it is, it won’t be quick and it will be very inflationary, setting off a new long-term commodity Supercycle. Probably the largest seen so far.

The “New Energy Economy”: An Exercise in Magical Thinking

https://media4.manhattan-institute.org/sites/default/files/R-0319-MM.pdf

Mines, Minerals, and "Green" Energy: A Reality Check

https://www.manhattan-institute.org/mines-minerals-and-green-energy-reality-check

"An Environmental Disaster": An EV Battery Metals Crunch Is On The Horizon As The Industry Races To Recycle

by Tyler Durden Monday, Aug 02, 2021 - 08:40 PM

https://www.zerohedge.com/markets/environmental-disaster-ev-battery-metals-crunch-horizon-industry-races-recycle

Covid-19 Corner

This section will continue until it becomes unneeded.

Can COVID-19 cause hair loss? Doctors see an influx of patients with the symptom

Fri, August 19, 2022 at 11:05 AM

Clinicians are seeing an influx of patients experiencing an unsettling side effect after COVID-19: losing their hair.

Dr. Brian Abittan, the director of skin and hair rejuvenation at Mount Sinai Health System in New York, said that he sees multiple patients a week who have reported hair loss after COVID-19.

"A day doesn't go by that I don't get asked about it," Abittan told MedPage Today.

Although more patients are clearly reporting the symptom after COVID, there isn't robust data describing how many patients experience this phenomenon or what factors put someone at risk for it. While there are still many unanswered questions about COVID-related hair loss, experts say the good news is that it appears to be temporary and clinicians should reassure patients that their hair will very likely grow back.

Some evidence has shown that there is an increased risk of hair loss following COVID infection. A study published in Nature Medicine last month found that hair loss was one of a wide range of symptoms that post-COVID patients reported to their primary care physicians.

Patients with a history of COVID were nearly four times as likely to develop hair loss than those who weren't infected, the researchers found.

Additionally, a study in the Lancet journal estimated that 22% of patients who were hospitalized with COVID experienced hair loss after their illness.

The most common type of hair loss seen in post-COVID patients is telogen effluvium.

"The assumption is that COVID-related hair loss is very similar to stress-related hair loss," Abittan said.

More

Can COVID-19 cause hair loss? Doctors see an influx of patients with the symptom (yahoo.com)

World Health Organization - Landscape of COVID-19 candidate vaccineshttps://www.who.int/publications/m/item/draft-landscape-of-covid-19-candidate-vaccines

NY Times Coronavirus Vaccine Trackerhttps://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html

Regulatory Focus COVID-19 vaccine trackerhttps://www.raps.org/news-and-articles/news-articles/2020/3/covid-19-vaccine-tracker

Some more useful Covid links.

Johns Hopkins Coronavirus resource centre

https://coronavirus.jhu.edu/map.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.

Molecular Achilles' heel breaks down toxic PFAS "forever chemicals"

Michael Irving August 18, 2022

Toxic PFAS compounds earn themselves the nickname of “forever chemicals” thanks to their tendency to persist in the environment for decades. In a new study, chemists claim to have found an Achilles’ heel to these ultra-stable molecules, using a relatively simple chemical reaction to “decapitate” some kinds of PFAS into benign end products.

Per- and polyfluoroalkyl substances (PFAS) is an umbrella term for thousands of chemicals that have been commonly used for their water-repelling properties in products such as non-stick cookware, food packaging, waterproof clothing and firefighting foam. However, a growing body of research over the last few decades has linked PFAS chemicals to a range of health problems, such as diabetes, infertility, hypothyroidism, and kidney and liver cancer, leading the EPA to lower the safe threshold in drinking water to near zero.

Worse still, decades of widespread use coupled with an infamously long life means that exposure is hard to avoid. A recent study found that PFAS levels in rainwater all over the world exceed the EPA’s guidelines, even in samples taken from remote areas like Antarctica or the Tibetan Plateau.

Scientists have been investigating ways to break down the chemicals using boron nitride powders or photochemical reactions. In the new study, researchers at Northwestern University have found a new way to degrade PFAS compounds using simple and inexpensive chemicals and under mild conditions.

PFAS gets its incredible and frustrating stability from its molecular structure – it’s made up mostly of carbon and fluorine bonds, which are the strongest known to organic chemistry. But the team discovered a weakness at the head of the molecule, where charged groups of atoms like oxygen can be found.

The team targeted this area instead, by heating PFAS samples to between 80 and 120 °C (176 and 248 °F) in dimethyl sulfoxide as a solvent and sodium hydroxide as a reagent. And sure enough, this head group was “decapitated” from the molecule, leaving a reactive tail that cascaded through the structure.

“That triggered all these reactions, and it started spitting out fluorine atoms from these compounds to form fluoride, which is the safest form of fluorine,” said William Dichtel, lead author of the study. “Although carbon-fluorine bonds are super strong, that charged head group is the Achilles’ heel.”

Using this process, the team successfully broke down 10 different types of PFAS, including PFOA and a particularly problematic chemical known as GenX, degrading up to 100% within 24 hours. The researchers say future work will continue testing the method on other types of PFAS, of which there are thousands.

The research was published in the journal Science.

Molecular Achilles' heel breaks down toxic PFAS "forever chemicals" (newatlas.com)

This weekend’s music diversion.  Approx. 4 minutes.  

Handel: Solomon-Nightingale chorus

May no rash intruder disturb their soft hours;

Handel: Solomon-Nightingale chorus - YouTube

This weekend’s chess update. Approx. 9 minutes.

Pragg Beats Super GM in "10 Moves"!

Pragg Beats Super GM in "10 Moves"! - YouTube

This week’s “easy” maths update.  Approx. 38 minutes. Well, it is summer, and we’ve got to find something to do, after all.

Why is calculus so ... EASY ?

Why is calculus so ... EASY ? - YouTube

“Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing has happened.”

Sir Winston Churchill.

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