Tuesday, 9 August 2022

The Casino’s Adventures In Wonderland.

Baltic Dry Index. 1566 +06    Brent Crude 96.46

Spot Gold 1786         US 2 Year Yield 3.21 -0.03

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

Deaths 53,100

Coronavirus Cases 09/08/22 World 590,372,133

Deaths 6,438,852

“Why, sometimes I've believed as many as six impossible things before breakfast.”

Lewis Carroll, Alice in Wonderland.

In the stock casinos, more driving by looking at the rear view mirror. Who’s to blame the punters? The view out of the windscreen is worrying to say the least.

And with yet more interest rate hikes to come globally, the US yield curve inverted from the one year at 3.30 out to the 30 year at 3.00, and Brent crude still trading close to 100 dollars a barrel, nothing good lies ahead for the remainder of 2022.

 

Japan’s Nikkei leads losses in mixed Asia markets; SoftBank shares drop 6% after earnings losses

SINGAPORE — Shares in the Asia-Pacific were mixed Tuesday on a quiet data day as markets continue to digest last week’s stellar U.S. jobs report.

 stock fell more than 6% after its Vision Fund reported a 2.93 trillion Japanese yen ($21.68 billion) loss for the June quarter on Monday after the market close. The tech-focused fund has suffered as central banks raise interest rates to fight inflation.

The  in Japan dropped 0.87% and the Topix index was down 0.66%.

South Korea’s Kospi was about 0.13% higher, while the Kosdaq was near flat.

In Australia, the S&P/ASX 200 rose fractionally.

Hong Kong’s  was rose nearly 1%, with heavyweight  climbing 2.53%.

Alibaba has applied to change its Hong Kong listing status to primary from secondary, the company said in a statement on the Hong Kong Exchange. The Hong Kong Stock Exchange acknowledged the application on Aug. 8. The change will likely take effect before the end of 2022.

The tech giant first announced its plans for a dual primary listing in Hong Kong last month.

Mainland China markets advanced. The  gained 0.31% and the  added 0.195%.

Intelligent transport firm Zhengzhou Tiamaes Technology stock soared nearly 20% after China’s ministry of transport released draft rules for self-driving vehicles that could lead to a legalization of such vehicles on public roads.

ShenZhen RoadRover Technology’s shares jumped 10%, hitting its trading limit, according to Chinese media.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.31% higher.

China’s continued military drills around Taiwan have not impacted markets much, according to Tapas Strickland, an economist at National Australia Bank.

“Markets instead have been mulling over Friday’s strong payrolls report with a few more US banks calling a 75bp hike in September,” he said in a note on Tuesday.

In economic data, investors are looking ahead to the U.S. consumer price index data due Wednesday stateside.

Singapore and India markets are closed for a holiday on Tuesday.

Overnight in the U.S., the S&P 500 dipped 0.12% to 4,140.06 and the Nasdaq Composite shed 0.1% to 12,644.46. The Dow Jones Industrial Average rose slightly to close at 32,832.54.

More

Asia markets: Stocks trade lower; SoftBank falls after earnings report (cnbc.com)

 

Slowing demand in the U.S., Europe and China could hurt Asian exporters, HSBC says

Asian exporters will face significant challenges as demand from major markets like the U.S., Europe and China slow down in the coming months, according to the chief Asia economist of HSBC.

Manufacturers in Europe are already pulling back quite significantly, namely in Germany, Frederic Neumann told CNBC’s “Squawk Box Asia” on Monday.

“Remember that Europe is a major export market for Asian exporters,” the economist pointed out.

“We also expect essentially a decline in shipments coming through the second half of the year, which complements the pivot in U.S. spending away from goods. Both of the U.S. and Europe slowing down is going to be headwinds for Asian exporters,” he added. 

The slowdown in China’s economy will further add to the problems facing exporters in the region, Neumann said.

“Very clearly the trade data… shows this weakness in domestic demand. China is the third big export market that we really need to be humming — that too looks like it’s not really picking up steam. From that perspective, a trade recession cannot be ruled out at this point,” he added.

China’s weak growth

China’s official manufacturing purchasing managers’ index fell to 49.0 in July from 50.2 in June, the National Bureau of Statistics (NBS) said last week.

PMI readings are sequential and represent month-on-month expansion or contraction. A reading above 50 suggest growth while anything below 50 indicates contraction.

China, which saw its economy grow only 0.4% year-over-year in the second quarter, is a key export market for many Asian countries. Therefore, a slowdown in the world’s second largest economy will have an overall impact on the entire region.

“The manufacturing sector is really the most brittle part of the global economy at the moment,” said Neumann.

“That’s where we’re seeing the first signs of weakness coming through whether in the U.S., whether in mainland China, whether in Europe,” he said, adding the slowdown will have a trickle down effect on Asia’s growth.

More

US, Europe, China slowdown could hurt Asian exporters: HSBC (cnbc.com)

In other news, Ukraine’s grain exports are likely to little to help much, especially as Europe’s drought is heavily impacting corn and olive oil production.

Ukraine grain shipments offer hope, not fix to food crisis

August 6, 2022

BEIRUT (AP) — A ship bringing corn to Lebanon’s northern port of Tripoli normally would not cause a stir. But it’s getting attention because of where it came from: Ukraine’s Black Sea port of Odesa.

The Razoni, loaded with more than 26,000 tons of corn for chicken feed, is emerging from the edges of a Russian war that has threatened food supplies in countries like Lebanon, which has the world’s highest rate of food inflation — a staggering 122% — and depends on the Black Sea region for nearly all of its wheat.

The fighting has trapped 20 million tons of grains inside Ukraine, and the Razoni’s departure Monday marked a first major step toward extracting those food supplies and getting them to farms and bakeries to feed millions of impoverished people who are going hungry in Africa, the Middle East and parts of Asia.

“Actually seeing the shipment move is a big deal,” said Jonathan Haines, senior analyst at data and analytics firm Gro Intelligence. “This 26,000 tons in the scale of the 20 million tons that are locked up is nothing, absolutely nothing ... but if we start seeing this, every shipment that goes is going to increase confidence.”

The small scale means the initial shipments leaving the world’s breadbasket will not draw down food prices or ease a global food crisis anytime soon. Plus, most of the trapped grain is for animal feed, not for people to eat, experts say. That will extend the war’s ripple effects for the world’s most vulnerable people thousands of miles away in countries like Somalia and Afghanistan, where hunger could soon turn to famine and where inflation has pushed the cost of food and energy out of reach for many.

More

https://apnews.com/article/russia-ukraine-inflation-africa-lebanon-1eafa6d440e9f50aeb051ac6fe605a76

First Crop Ship to Leave Ukraine Is Stuck Without a Buyer

Ukrainian embassy says cargo rejected by its buyer in Lebanon

Razoni was the first ship to transit new grain-export corridor

August 8, 2022 at 3:31 PM GMT+1Updated onAugust 8, 2022 at 6:08 PM GMT+1

Ukraine Grain Onboard Razoni Cargo Ship Rejected by Lebanon Buyer - Bloomberg

 

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.

'Very critical situation': Almost half of EU countries suffering from drought

7 August 2022

Almost half of European Union land is currently under a drought warning or more severe "alert" level, hampering agriculture, energy production and water supply, the European Commission has confirmed.

From France in the west and Romania in the east, to western Germany and southern Greece, a "wide and persistent" lack of rain, combined with heatwaves, makes for an alarmingly long list of countries where drought is getting worse.

New data from the European Drought Observatory (EDO) shows some 45% of the bloc's territory under "warning" conditions, the second of three drought categories, during the 10 days leading to 20 July.

Meanwhile, 15% of land has moved into the most severe "alert" state, meaning not only is land drying out after low rain, but plants and crops are impaired too.

The figures show little improvement from the previous 10-day period, which saw 46% of land at "warning" level with dried out soil, and 13% in "alert" territory.

Further dry weather forecasts for many countries in August and September "add concerns to the already very critical situation and, if confirmed, will exacerbate drought severity and the impacts on agriculture, energy and water supply", EDO warned in July.

Crisis team

France's worst drought on record has left parched villages without safe drinking water, farmers warning of a milk shortage in winter and corn harvests on course to be 18.5% lower than last year.

Prime Minister Elisabeth Borne's office on Friday set up a crisis team as the country braced for its fourth heatwave of the summer.

"Widespread stress on vegetation" has hit the Italian lowlands, much of France, central Germany, eastern Hungary, Portugal and northern Spain, the EDO said, just as Europeans grapple with higher food prices as a result of the war in Ukraine.

Farmers in Tuscany, the heart of Italy's prized wine and olive oil industry, are battling to salvage as much as they can of this year's crop from the ravages of drought and heatwave.

Professor David Hill, former deputy chair of Natural England, said intensive farming practices have worsened droughts by making the soil less able to retain water and therefore dry out or be washed away more easily.

"Where you have large scale agricultural intensification, you end up with simple ecosystems that cannot withstand shock," he told Sky News. "Massive farms are far less resilient to environmental change than a mosaic of different types."

More

'Very critical situation': Almost half of EU countries suffering from drought (msn.com)

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.

With Covid-19 starting to become only endemic, this section is close to coming to its end.

China's Hainan beach resort expands COVID-19 lockdowns

August 8, 2022

BEIJING (AP) — The capital of China's Hainan province has locked down its residents for 13 hours on Monday as a COVID-19 outbreak grows on the tropical island during the summer school holidays.

The temporary lockdown of Haikou city from 7 a.m. to 8 p.m. follows an ongoing and indefinite lockdown of the beach resort of Sanya since Saturday — which is confining vacationers to their hotels for a week — and lockdowns that started in four other cities in Hainan on Sunday.

More than 470 new cases were recorded in the province on Sunday, of which 245 did not show symptoms. Overall, China reported more than 760 new daily cases, the National Health Commission said Monday.

Some 80,000 tourists have reportedly been stranded by the lockdown in Sanya. Those wanting to depart have to test negative five times over seven days.

China has stuck steadfastly to a “zero-COVID” policy, despite the economic and social costs. It has credited that approach with keeping hospitalization and death rates lower than in other countries that have opened up amid high vaccination rates and more effective treatments.

Hong Kong, a semi-autonomous Chinese city, announced Monday that it would reduce a mandatory hotel quarantine for overseas arrivals to three days from the current one week. The new policy takes effect Friday.

China's Hainan beach resort expands COVID-19 lockdowns (msn.com)

 

Next, some vaccine links kindly sent along from a LIR reader in Canada.

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 other useful Covid links.

Johns Hopkins Coronavirus resource centre

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

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, among other things, I’ve added this section. Updates as they get reported.

AUGUST 5, 2022

Graphene oxide membranes reveal unusual behaviour of water at the nanoscale

The researchers observed that a density of pores doesn't necessarily lead to higher water permeability—in other words, having more tiny holes doesn't always allow water to flow through at the nanoscale. The study, supported by the European Union and Humboldt Research Foundation funding, shines new light on the mechanisms that govern water flow through GO membranes.

"If you create more and more holes in a sieve, you expect it to become more permeable to water. But surprisingly, that is the opposite of what happened in our experiments with graphene oxide membranes," says Associate Professor Rakesh Joshi, senior author of the study from the School of Materials Science & Engineering, UNSW Science.

---- In chemistry, molecules can have what's known as "functional groups" that are either hydrophobic (water repelling) or hydrophilic (water-attracting). The pores in graphene can also be hydrophobic or hydrophilic.

"Surprisingly, more important for the water flux (flow of water through a membrane) isn't the number of pores, but whether the pores are hydrophobic or hydrophilic," says Tobias Foller, UNSW Scientia Ph.D. candidate and lead author of the study. "That's very unexpected as the GO layers are only one atom thick. One expects the water to just pass through the pores, no matter if they attract or repel water."

---- Ultrafine sieves made of different materials have a diverse range of applications. The researchers say their findings will help scientists fine-tune liquid transport in atomic sieves and could advance developments like highly precise water filtration systems.

"By understanding which parameters will increase or decreases water flux, we can optimize many possible applications of graphene oxide for water purification, energy storagehydrogen production and more," Mr. Foller says. "We hope other engineers and scientists can use this new knowledge to improve their own devices, and lead to new developments in the future."

 

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