Baltic Dry Index. 1178 +45 Brent Crude 89.88
Spot Gold 1721 US 2 Year Yield 3.48 +0.03
Coronavirus
Cases 02/04/20 World 1,000,000
Deaths 53,100
Coronavirus Cases 09/09/22 World 612,654,720
Deaths 6,512,640
Rest In Peace Queen Elizabeth I and II after a lifelong service to GB and much of the world.
With the death of Queen Elizabeth dominating main stream media this morning, we will cover the less important business news of the day.
The ECB as expected, yesterday raised their interest rate by 0.75 percent to 0.75 percent, hopelessly behind EU inflation running just shy of 10 percent.
The UK announced plans to subsidise electricity to businesses for 6 months and residents for two years, with the cost, at least initially to be covered by borrowing.
The EU meets later today to decide on their plan to mitigate the high cost of the region’s electricity bills.
India, the world’s leading rice exporter imposed bans on some rice exports and export taxes on others.
In the stock casinos, more bear market exit rally as the greater fool bubble starts to meet up with the new global recession arriving.
Hongi Kong’s Hang
Seng rises 2%, leads Asia markets higher after Powell’s inflation comments
UPDATED FRI, SEP 9 2022 12:35 AM EDT
Markets in Asia-Pacific were higher as investors
digested Federal Reserve Chair Jerome Powell’s latest comments as he vowed
to raise rates to tackle inflation “until the job is done.”
In Japan, the Nikkei 225 rose
0.49% and the Topix rose 0.38%. In South Korea, the Kospi was up 0.33% and the
Kosdaq rose 1.25%. In Australia, the S&P/ASX 200 also
gained 0.6%.
In Hong Kong, the Hang Seng Index
rose 2.59% and its tech index also rose 2.76%. In mainland China, the Shanghai
Composite rose 0.7% and then Shenzhen Component was up 0.76%.
China’s consumer inflation came in at 2.5% in
August, lower than the 2.7% recorded in July.
“China’s weak growth outlook and
accommodative monetary policy stance against the aggressive tightening underway
by the FOMC will keep USD/CNH well supported,” Commonwealth Bank of Australia’s
FX strategist Kristina Clifton said in a note, referring to the offshore yuan.
The offshore yuan stood at 6.95,
while the Japanese yen was at 143.85 and the Korean won stood at 1,383.11
against the greenback.
China’s latest
inflation figures give the People’s Bank of China room to maintain its current
monetary stance, HSBC said in a note.
“The moderation in
price pressures gives the PBOC room to stay accommodative,” greater China
economist Erin Xin said.
Xin added that the
central bank is likely to further ease using structural tools such as
“additional re-lending quotas for focus areas like manufacturing and green
investment.”
Fed Chair Powell vows to raise rates to fight inflation ‘until the
job is done’
Federal Reserve Chair
Jerome Powell in an appearance Thursday emphasized the importance of getting
inflation down now before the public gets too used to higher prices and comes
to expect them as the norm.
In his latest
comments underlining his commitment to the inflation fight, Powell said
expectations play an important role and were a critical reason why inflation
was so persistent in the 1970s and ’80s.
“History cautions strongly against prematurely loosening policy,”
the central bank leader said in a Q&A presented by the Cato Institute, a
libertarian think tank based in Washington, D.C. “I can assure you that my
colleagues and I are strongly committed to this project and we will keep at it
until the job is done.”
The event was Powell’s last scheduled public
appearance before the Fed’s next meeting on Sept. 20-21.
Markets largely took the comments
in stride, with major averages little
changed in the early going on Wall Street. Treasury yields were
mostly higher, with the two-year note, the most sensitive to Fed rate hikes,
rising by nearly five basis points to 3.49%. A basis point equals 0.01
percentage point.
The Fed has raised benchmark
interest rates four times this year, with the fed funds rate now set in a range
between 2.25%-2.50%.
Markets widely expect
the rate-setting Federal Open Market Committee to enact a third consecutive
0.75 percentage point increase this month. In fact, that probability rose to
86% during Powell’s remarks, according to the CME Group’s FedWatch tracker of
fed funds futures bets. Both Goldman Sachs and Bank of America told clients to
expect that three-quarter point hike.
One reason for acting
aggressively is to make sure that inflation running around its highest rate in
more than 40 years doesn’t become ingrained in the public consciousness, Powell
said.
More
Powell
vows to raise rates to fight inflation 'until the job is done' (cnbc.com)
Top
Rice Exporter India Curbs Shipments in Threat to Inflation
·
Government
bans broken rice exports and taxes other varieties
·
Move will
send shock waves through global agricultural markets
Updated onSeptember 9, 2022 at 5:19 AM GMT+1
India
Imposes 20% Tax on Some Rice Exports - Bloomberg
Up
next, an early warning that “fintech” might become the next Lehman.
U.S. bank regulator warns of crisis risk from fintech proliferation
September 8, 2022 12:19 AM GMT+1
NEW YORK, Sept 7
(Reuters) - The rise of fintech services and digital banking could spur financial
risks and potentially a crisis over the long term, Michael Hsu, Acting
Comptroller of the Currency, a major U.S. bank regulator, warned on Wednesday.
"I believe
fintechs and big techs are having a large impact and warrant much more of our
attention," Hsu told a New York conference, noting the encroachment of
fintech companies into the traditional financial sector, including via
partnerships with banks, was creating more complexity and
"de-integration" across the banking sector.
"My strong
sense is that this process, left to its own devices, is likely to accelerate
and expand until there is a severe problem, or even a crisis," Hsu said.
Banks and tech
firms, in an effort to provide a seamless customer experience, are teaming up
in ways that make it more difficult for regulators to distinguish between where
the bank stops and where the tech firm starts, said Hsu. And with fintech
valuations falling as financing costs rise, bank
That could create
IT risks around information security and resilience, and also raises customer
protection issues, said Hsu.
"I worry
increasingly about the 'unknowns' and am concerned that the less familiar risks
of this digital transition are unlabeled and thus unseen. As we learned from
the 2008 financial crisis, risks that are unseen have a tendency to grow and
later to be the source of nasty surprises," said Hsu.
Earlier, Gene
Ludwig, a former Comptroller of the Currency, also warned that regulations for
fintechs are much less strict than those that govern banks.
"The
non-banking industry is getting away with murder," said Ludwig, who is now
a managing partner of Canapi Ventures, a venture capital firm.
Ludwig predicted
non-banks "will get us into the next financial crisis if we don't do
something about it."
More
U.S. bank regulator warns of crisis risk from fintech proliferation | Reuters
Finally,
in Ukraine grain trade news, Ukraine eases the rule for Ukraine seamen. Turkey’s
Erdogan sides with Putin.
Ukraine
sailor permits seen crucial for grain exports, global shipping
September
7, 2022
KYIV (Reuters) - Ukraine's decision
to allow its seafarers to leave the country despite wartime restrictions will
free up vital manpower for both Ukrainian grain exports and the wider global shipping
industry, industry figures told Reuters.
The move, officially confirmed this
week, is part of efforts by Ukraine to maximise its grain shipments via a
UN-brokered corridor through the Black Sea, which lifted a Russian blockade of
Ukraine's south coast when came into effect in early August.
"We understand that the grain
corridor depends on them (seafarers) and the world of international logistics
also depends on them," Viktor Vyshnov, deputy head of Ukraine's Shipping
Administration, told Reuters.
Industry figures said in late July,
shortly after the grain export deal was agreed, that finding enough seafarers
to crew the estimated 80 vessels stuck in Ukrainian ports since the start of
Russia's invasion in February would be a challenge.
While able-bodied Ukrainian men aged
18-60 are barred from leaving the country as fighting continues against
Russia's invasion, Ukraine's government has waived the ban for qualified
seafarers and those studying for a mariner qualification.
The move, first announced in late
August by Prime Minister Denys Shmyhal, was decreed into law by his cabinet
last Friday, according to a copy of the order published on Monday evening.
----Ukrainian seafarers make up 4% of the
total global mariner workforce of 1.89 million sailors, according to analysis
from trade associations the International Chamber of Shipping and BIMCO.
"They are vital cog in the
global supply chain when it comes to providing well qualified seafarers,"
Stephen Cotton, General Secretary of the International Transport Workers'
Federation (ITF) union, said.
Having Ukrainian seafarers back in
the global shipping market will be important in filling demand for qualified
sailors over the next four years, Natalie Shaw, director of employment affairs
at the International Chamber of Shipping, told Reuters.
"The (ICS/BIMCO) report predicts
that there will be a need for an additional 89,510 officers by 2026 to operate
the world merchant fleet, and Ukraine supplies over 76,000 of the current
workforce," she said.
"In the (2021) report ...
Ukraine was listed as the top country companies are likely to recruit
from," she added.
More
Ukraine sailor
permits seen crucial for grain exports, global shipping (msn.com)
Turkey's
Erdogan echoes Putin's gripes over grain exports
September 8, 2022 12:56 PM GMT+1
ISTANBUL, Sept 8
(Reuters) - Turkish President Tayyip Erdogan said on Thursday he wanted grain
from Russia to be exported too, adding Vladimir Putin was right to complain
that grain from Ukraine under a U.N.-backed deal was going to wealthy rather
than poorcountries.
The July grain deal
aimed to avert a global food crisis by guaranteeing the safe passage of ships
in and out of Ukrainian ports, allowing them to export tens of millions of
tonnes of grain. The deal also facilitates Russian exports.
"The fact
that grain shipments are going to the countries that implement these sanctions
(against Moscow) are disturbing Mr. Putin. We also want grain shipments to
start from Russia," Erdogan said at a news conference with his Croatian
counterpart.
"The grain
that comes as part of this grain deal unfortunately goes to rich countries, not
to poor countries," Erdogan said.
On Wednesday,
Russia's President Putin floated adding limits to Ukrainian grain
exports. read more
U.N. and Russian
officials met in Geneva Wednesday to discuss Russian complaints that Western
sanctions were impeding its grain and fertilizer exports despite the deal,
which was signed by Russia, Ukraine, Turkey and the United Nations. read more
Ismini Palla,
U.N. spokesperson for the Black Sea Grain Initiative, said a drop in global
wheat prices in August was partly due to exports resuming from Ukraine, and
ensuring food and fertilizer supplies was critical to maintain this
trend. read more
Turkey's Erdogan
echoes Putin's gripes over grain exports | 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.
Germany
to subsidise basic level of power for homes, businesses - ministry paper
September 8, 202211:00 AM GMT+1
BERLIN, Sept 8
(Reuters) - Germany plans to subsidise a basic level of electricity usage for
households and set aside cheaper power for small and medium-sized businesses,
according to measures set out in an Economy Ministry paper seen by Reuters on
Thursday.
Electricity
distributors would be required to grant households a certain electricity quota
at a discounted price per kilowatt hour, with a similar contingent planned for
small and medium-sized enterprises, the paper said.
The stated goal
is to decouple the price of electricity from the price of gas, which has
rocketed since the Ukraine war and subsequent plunge in Russian deliveries to
Germany.
The ministry also
detailed a planned cap on electricity prices for producers, with the difference
on the market price to go towards funding the relief.
Electricity
producers have benefited from high gas prices, which indirectly affect prices
on the electricity exchange, despite little change in the cost of generation.
The mechanism
suggested by the ministry differentiates between renewable energy, which would
have a spot market revenue cap, and energy from conventional power plants, such
as coal and nuclear, which would be required to pay a "crisis
contribution."
Based on a paper
agreed by the German cabinet and seen by Reuters, the mechanism could raise
revenues amounting to double-digit billions of euros. read more
Germany will push
the measures at the European Union level but is ready to implement them at the
national level should agreement not come quickly enough in Brussels, the
ministry said.
EU energy
ministers are set to meet on Friday to discuss a proposed price cap on Russian
gas as well as a ceiling on the revenue of non-gas power generators, among
other measures. read more
More
Germany to
subsidise basic level of power for homes, businesses - ministry paper | Reuters
Exclusive:
UK to announce dozens of new North Sea oil and gas licences
September 8, 2022 9:00 AM GMT+1
LONDON, Sept 8
(Reuters) - The British government is expected to announce dozens of new North
Sea oil and gas exploration licences in an effort to boost domestic production,
two sources familiar with the government's discussions said.
The exact number
of new licences was still to be confirmed, one of the sources, who spoke on
condition of anonymity, said. The other said it could be as many as 130. The
announcement could come as soon as Thursday.
Prime Minister
Liz Truss, who was appointed on Tuesday, is due to set out to parliament on
Thursday her government's plans for tackling soaring energy bills. During the
leadership campaign, she repeatedly said boosting domestic energy supply would
be part of her focus in seeking to bring down prices.
Truss's office did
not comment directly on the licences but noted that the prime minister had told
parliament the government would increase supply through North Sea resources and
more nuclear power stations.
The licensing
round will not offer any short-term relief to energy bills as it typically
takes between five to 10 years from initial exploration until oil and gas is
produced from a field.
Britain's last
offshore licensing round was in 2020.
Exclusive: UK to announce dozens of new North Sea oil and gas licences | 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
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 approves inhaled
Covid vaccine
6
September, 2022
China has become the first country
to approve an inhaled Covid vaccine.
Made by
CanSino, it has similar ingredients to its injected vaccine, using a harmless
adenovirus as a carrier for the genetic code that teaches the body how to fight
Covid.
Inhaled as a
fine mist, Convidecia Air can provide good protection after just one breath, the company says.
Other
researchers, including teams in the UK and the US, have been investigating
nasal spray vaccines.
Scientists say
these may give added immunity in the lining of the nose and upper airways,
where Covid typically enters the body.
The National
Medical Products Administration of China granted CanSino approval for its
inhaled vaccine to be used as a booster dose.
It can top up
protection in those who have previously had a jab, trials suggest.
Meanwhile, the latest Covid vaccine booster programme has begun in England, Wales and Scotland.
Infections are falling around the UK - but health bosses predict a resurgence of Covid and flu this autumn and winter.
They are urging
those eligible to protect themselves from serious illness by being vaccinated
against both.
China approves inhaled Covid vaccine - BBC News
Next, some vaccine links
kindly sent along from a LIR reader in Canada.
NY Times Coronavirus Vaccine
Tracker. https://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html
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
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.
Graphene
Market Size, Share, Growth, Demand, Applications, Opportunities And Forecast To
2030
9/6/2022 3:11:07 PM
Asia Pacific region emerged as the
largest market for the global graphene market with a 48.4% share of the market
revenue in 2020.
NEWARK, UNITED STATES, September 6,
2022 /EINPresswire.com / -- Global Graphene Market 2022 covers a complete
market structure across the world with the detailed analysis of major key
factors. This report provides strategic recommendations consulted by the
industrial experts including market forecasts, profit, supply, latest market
trends, demands and much more. The global market with the impact of future
aspects is well discussed further in every possible way.
Primary researches have been done
with the theories came out from surveys, interviews and the opinions of
seasoned analysts. Whereas the secondary researches done with the contents of
industry body databases, trade journals and reputable paid sources. Also the
strategic recommendations of business segments are made with the help of
current market estimations.
Get Free Sample Report + All Related
Table and Graphs @
Here are the key features of this
report for Graphene market as follows:
Basic market entities such as
challenges, limitations and drivers which help to share the dynamics of
Graphene market share assessment across the world according to the recent
trends
Detailed market segmentations and
directions of the parent market and the inherited market
Recent developments in the Graphene
market and competitive landscape
Strategic suggestions for new
entrants willing to enter the Graphene market
Following are the leading companies
that have been profiled in this report, which are currently operating in the
Graphene market: ACS Material Llc, Bluestone Global Tech, CVD Equipment
Corporation, Graphene Nanochem Plc, Graphenea S.A., G6 Materials, Haydale
Limited, Nanotek Instruments, Inc., Vorbeck Materials, XG Sciences
More
Graphene
Market Size, Share, Growth, Demand, Applications, O... | MENAFN.COM
Another weekend and a sombre weekend
in GB and a large part of the world. What comes next in GB and much of the
Commonwealth is an era of change, but first GB and Europe must get through a
difficult winter ahead. For much of the third world, a difficult time ahead
from a food crisis made worse by a soaring dollar and India’s rice export
restrictions yesterday.
Have a great Autumn/Spring weekend everyone.
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