Thursday, 20 October 2022

All PANIC.

Baltic Dry Index. 1871 -4       Brent Crude 93.08

Spot Gold 1648           US 2 Year Yield 4.55 +0.12

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

Deaths 53,100

Coronavirus Cases 20/10/22 World 631,541,371

Deaths 6,577,

Some cause happiness wherever they go; others whenever they go.

Oscar Wilde.

In the stock casinos, rising dismay. Nothing seems to work anymore, at least not like it used to.

China continues with its policy of Covid lock downs, disrupting global supply chains. 

Everywhere interest rates are rising but so far with negligible effect on global inflation.

The proxy war in Ukraine on Russia is going badly for all. Russia and Ukraine are basket cases of course, but this disastrous unnecessary war is fast unravelling continental Europe, fast draining the US Strategic Petroleum Reserve, and causing political chaos in the UK.

Well maybe not causing political chaos in the UK. His Majesty’s Government in the UK doesn’t appear to need any outside help in creating chaos, it’s doing a first class job all by itself.

 

Hong Kong’s Hang Seng index hits 13-year low; yen inches near 150 against U.S. dollar

UPDATED THU, OCT 20 2022 12:26 AM EDT

Shares in the Asia-Pacific traded lower on Thursday as economic fears weigh.

The Hang Seng index in Hong Kong fell 2.42% after briefly dropping 3%, hitting its lowest level since May 2009. The Hang Seng Tech index was 3.42% lower at the lunch break.

Kelvin Tay, regional chief investment officer at UBS, said the steep drop in Hong Kong markets is due to the government’s “unprecedented silence on key economic indicators.”

“It’s largely because of concerns over the economic outlook and a rise of Covid cases in the middle of the party congress in Beijing,” he said.

In Japan, the Nikkei 225 lost 1.38% and the Topix shed 0.91%. The S&P/ASX 200 in Australia declined 1.35%.

Mainland China’s Shanghai Composite fell 0.39% and the Shenzhen Component slipped 0.602%.

South Korea’s Kospi dipped 1.6% and the Kosdaq was 2.11% lower. The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.72%.

The offshore yuan touched a record low against the U.S. dollar overnight, weakening to 7.2745 per dollar. It last traded at 7.2612. The Japanese yen reached yet another fresh 32-year low of 149.95 against the greenback.

U.S. stocks fell as Treasury yields climbed on Wednesday stateside, with the benchmark 10-year yield touching 4.138%, the highest level since July 23, 2008.

The Nasdaq Composite shed 0.85% to close at 10,680.51, while the S&P 500 declined 0.67% to 3,695.16. The Dow Jones Industrial Average lost 99.99 points, or 0.33%, to finish the day at 30,423.81.

Asia markets: Stocks lower, Japanese yen nears 150 per dollar (cnbc.com)

 

Stocks snap two-day winning streak as 10-year yield hits highest level since 2008

UPDATED WED, OCT 19 2022 5:25 PM EDT

Stocks moved lower on Wednesday as Wall Street struggled to extend its rally amid a sharp rise in Treasury yields.

The Nasdaq Composite lost 0.85% to close at 10,680.51. The S&P 500 ticked down 0.67% to 3,695.16. The Dow Jones Industrial Average slipped 99.99 points, or 0.33%, to finish the day at 30,423.81. The losses ended a two-day winning streak, though all three averages are still up for the week.

Earnings season is off to a solid start, but Treasury yields remained elevated on Wednesday, suggesting that recession fears are still intact. The 10-year Treasury yield traded as high as 4.136%, the highest level since July 23, 2008.

---- The impact of higher rates is being shown sharply in the housing market, where housing starts fell faster than expected in September, the Census Bureau said on Wednesday.

The rate move also weighed on more speculative tech stocks. Among the biggest losers in the Nasdaq were Chinese tech stocks JD.com, falling more than 7%, and Baidu, sinking 8.8%.

The declines for the broader market came even as Netflix shares rallied more than 13% after the streaming giant posted earnings and revenue that beat estimates as well as strong subscriber growth for the third quarter. United Airlines climbed nearly 5% after its quarter also beat estimates on the top and bottom lines.

Stocks snap two-day winning streak as 10-year yield hits highest level since 2008 (cnbc.com)

Jeff Bezos is the latest to warn on the economy, saying it’s time to ‘batten down the hatches’

Washington: US President Joe Biden announced a plan on Wednesday to sell off the rest of his release from the nation's emergency oil reserve by year's end and begin refilling the stockpile as he tries to dampen high petrol prices ahead of midterm elections on Nov. 8.

Biden is seeking to add enough supply to prevent near-term oil price spikes that could punish Americans, and assure US drillers that the government will enter the market as a buyer if prices plunge too low.

He said 15 million barrels of oil will be offered from the Strategic Petroleum Reserve (SPR) — part of a record 180 million-barrel release that began in May, and added the United States is ready to tap reserves again early next year to rein in prices.

We're calling it a ready and release plan" Biden said at a White House event. This allows us to move quickly to prevent oil price spikes and respond to international events."

Biden's use of the federal government's reserve to manage oil price spikes and attempts to increase US production underscore how the Ukraine crisis and inflation have changed the policies of a president who came into office vowing to cut US dependence on the fossil fuel industry.

With President Biden's approval rating hovering in the 40s, he has not received a lot of invites to campaign with embattled Democrats.

But that is not stopping him from spending the week touting policies that he hopes will resonate with voters — though his stumping has mostly been in D.C. and without a candidate by his side.

On Tuesday, Biden announced the SPR release and brushed aside Republican claims that the move was political, noting that it was not the first time he'd ordered such a withdrawal.

More

US sells oil reserves as Biden tackles pump prices ahead of elections | Markets – Gulf News

 

UK interior minister quits with criticism of Truss as lawmakers row

LONDON, Oct 19 (Reuters) - Britain's interior minister quit on Wednesday with a broadside at Liz Truss before her lawmakers openly quarrelled in parliament, underscoring the erosion of the prime minister's authority after just weeks in the job.

The departure of Suella Braverman, over a "technical" breach of government rules, means Truss has now lost two of her most senior ministers in less than a week, both replaced by politicians who had not backed her for the leadership.

Hours after the resignation, lawmakers openly rowed and jostled amid confusion over whether a vote on fracking was a confidence vote in her administration.

Opposition parliamentarians complained that Truss's politicians were being manhandled to make them vote with the government, though two lawmakers from her Conservative party said they had not seen any such behaviour.

"Discipline is falling apart, we can't go on like this," one Conservative lawmaker told Reuters.

Another, Charles Walker, told BBC television he was "livid" at the "talentless people" who had put Truss into power, just because they wanted a job. "I think it is a shambles and a disgrace," he said, in a video that a couple of other Conservative lawmakers tweeted in agreement.

Truss, in power for just over six weeks, has been fighting for her political survival ever since Sept. 23, when she launched a "mini-budget" - an economic programme of vast unfunded tax cuts that sent shockwaves through financial markets.

A handful of lawmakers have openly called for her to quit, and others have discussed who should replace her. Following the scenes in parliament, there were reports that the person responsible for Conservative party discipline, and their deputy, had quit.

Business minister Jacob Rees-Mogg, asked on television if the reports were correct, said: "I'm not entirely clear on what the situation is."

Truss's office said later they both remained in their posts, but the episode illustrated the confusion in government and underscored the prime minister's faltering authority.

More

UK interior minister quits with criticism of Truss as lawmakers row | 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.

Inflation surges back to 40-year high after food prices soar

The Office for National Statistics said Consumer Prices Index inflation reached 10.1% in September, compared with 9.9% in August.

October 19 2022 06:22 AM

Inflation last month returned to the 40-year high it hit earlier this summer after food prices soared.

The Office for National Statistics (ONS) said Consumer Prices Index inflation reached 10.1% in September, compared with 9.9% in August.

It was above the expectations of economists, who had predicted a figure of 10%.

The figure matches the 40-year high inflation hit in July and remains well above the Government’s target of 2%.

The increase was driven by food prices, leaping by 14.5% compared with the same month last year, representing the largest annual rise since 1980, according to data modelling.

Meanwhile, housing and utilities costs leapt by 20.2% against the same month last year.

ONS director of economic statistics Darren Morgan said: “After last month’s small fall, headline inflation returned to its high seen earlier in the summer.

“The rise was driven by further increases across food, which saw its largest annual rise in over 40 years, while hotel prices also increased after falling this time last year.

“These rises were partially offset by continuing falls in the costs of petrol, with airline prices falling by more than usual for this time of year and second-hand car prices also rising less steeply than the large increases seen last year.

“While still at a historically high rate, the costs facing businesses are beginning to rise more slowly, with crude oil prices actually falling in September.”

Economists at the ONS said rising transport prices slowed significantly last month on the back of cheaper fuel costs.

The Bank of England warned last month that inflation is expected to peak in October at just below 11%, following Government support to freeze energy bills at £2,500 for an average household.

New Chancellor Jeremy Hunt said on Wednesday he would prioritise help for the vulnerable after the inflation increase was revealed.

More

Inflation surges back to 40-year high after food prices soar - BelfastTelegraph.co.uk

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. 

Lab-made COVID-19 hybrid sparks controversy

Tue, October 18, 2022 at 5:11 PM

Boston University scientists have created a hybrid version of the coronavirus that causes COVID-19. Their experiments sparked controversy, with heated headlines claiming that the researchers made the virus more lethal and university officials denouncing these claims as "false and inaccurate."

The new omicron spike-carrying virus — built by attaching the spike protein from an omicron version of the virus to the original SARS-CoV-2 virus — killed 80% of lab mice infected with it, making it more severe than the original omicron variant which didn’t kill any infected mice. Yet the hybrid virus was still less deadly than the original Wuhan variant of the virus, which killed 100% of infected lab mice.

Scientists at Boston University's National Emerging Infectious Diseases Laboratories (NEIDL) created the chimeric virus to study how omicron versions of the virus, which first appeared in 2021, evade immunity built up against past strains and yet cause a lower rate of severe infections. After exposing mice either to the chimeric virus or to the naturally-occuring omicron BA.1 virus, the researchers found that the mutated spike protein of the omicron virus did enable it to dodge immunity, but that the mutated spike wasn't responsible for making omicron less severe.

The researchers published their findings Oct. 14 on the preprint database bioRxiv, so it has yet to be peer-reviewed.

"Consistent with studies published by others, this work shows that it is not the spike protein that drives Omicron pathogenicity, but instead other viral proteins. Determination of those proteins will lead to better diagnostics and disease management strategies," lead author Mohsan Saeed, an assistant professor at NEIDL, said in a statement, according to STAT..

Although the research was conducted properly in a biosecurity level 3 laboratory and approved by an internal biosafety review committee and Boston's Public Health Commission, controversy is swirling around the study because the researchers did not clear the work with the National Institute of Allergy and Infectious Diseases (NIAID), which was one of its funders, STAT reported.

The scientists also didn't divulge to NIAID if their experiments could create an enhanced pathogen of pandemic potential (ePPP), according to STAT. To be awarded federal funding for research on viruses with pandemic potential, proposals have to pass through a committee process, called a P3CO framework, that assesses the pros and cons of the work.

More

Lab-made COVID-19 hybrid sparks controversy (yahoo.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.

‘World’s largest capacity floating wave energy device’ to be tested in Orkney

18 Oct 2022

A €19.6m project aims to design and test the ‘world’s largest capacity floating wave energy device’.

Using waves to drive trapped air through a turbine, the OE35 device was developed by Irish company OceanEnergy. The firm will now work with 13 other partners from industry and academia across the UK, Ireland, France, Germany and Spain to design a 1MW-rated OE35, up from the 500kW current version.

Known as Wedusea (Wave Energy Demonstration at Utility Scale to Enable Arrays), the partnership is being launched this week at the International Conference on Ocean Energy in San Sebastian, Spain.

Floating on the ocean’s surface, the OE35 incorporates a trapped air volume, with the lower part open to the sea. Wave pressures at the submerged opening cause the water to oscillate and drive the trapped air through a turbine to generate electricity. This energy can be exported to the grid or used in other offshore applications.

The first phase of the four-year project will focus on the design of a 1MW device. Innovations will focus on hull and turbine design, air flow control, power systems and moorings to increase reliability and power output.

That phase will be followed by a two-year grid-connected demonstration at the European Marine Energy Centre’s (Emec) Billia Croo wave energy test site in Orkney, Scotland.

The project aims to decrease the levelized cost of energy (LCOE) and create a technology deployment pathway for a 20MW pilot farm. The project will also explore a lifecycle analysis, looking at the circular economy and opportunities for reuse and recycling of components at the end of a device’s deployment.

“This rigorous technical and environmental demonstration will happen over a two-year period in Atlantic wave conditions,” said Professor Tony Lewis, chief technical officer at OceanEnergy. “We believe this will be transformational for the wave energy industry, with outcomes directly impacting policy, technical standards, public perception and investor confidence.

“Wave energy is the world’s most valuable and persistent renewable resource. However, it has yet to be fully realised. The project will demonstrate that wave technology is on a cost reduction trajectory, and will thus be a stepping stone to larger commercial array scale-up and further industrialisation. We predict that the natural energy of the world’s oceans will one day supply much of the grid.”

The project is funded by the EU Horizon Europe Programme and by Innovate UK.

“We are expecting Wedusea to take wave energy beyond the state of the art by the collaboration of partners with a multi-disciplinary background, and that it will contribute to the deployment of arrays of reliable wave energy devices to achieve the 1GW target for 2030, as presented in our Offshore Renewable Energy Strategy,” said Matthijs Soede from the European Commission.

“The current energy crisis shows that the use of multiple energy sources is important to improve the security of supply, and a breakthrough in ocean energy would be welcome.”

More

‘World’s largest capacity floating wave energy device’ to be tested in Orkney (imeche.org)

Now that the House of Commons is trying to become useful, it does a great deal of harm.

Oscar Wilde.

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