Friday, 9 September 2022

The End Of An Elizabethan Age.

 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.”

Hong Kong's Hang Seng rises 2%, leads Asia markets higher after Powell's inflation comments (cnbc.com)

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

By Pratik Parija and Swansy Afonso

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

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

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

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

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

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 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 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.

Graphene Market Size, Share, Growth, Demand, Applications, Opportunities And Forecast To 2030

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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