Wednesday, 30 November 2022

Window Dressing. A Crypto Nightmare.

 Baltic Dry Index. 1327 -20    Brent Crude 83.90

Spot Gold 1754          US 2 Year Yield 4.48 +0.02

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

Deaths 53,1030

Coronavirus Cases 30/11/22 World 647,007,869

Deaths 6,638,691

Christmas is coming and the geese are getting fat, Please put a trillion in the banksters’ hat. If you haven’t got a trillion a billion will do, If you haven’t got a billion, God damn you!

Ebenezer Squid

It is the month-end of November 2022, time to dress up stocks and stock indexes for the all important money manager bonuses of month-end accounting.

But 2023 looms and more interest rate hikes are coming in a few days. In better news, though, the inverted US yield curve flattened slightly, though one swallow doesn’t make for a summer. Still it wants watching.

In the ever collapsing, fraud ridden, crypto-bubble, no amount of window dressing will undo the damage caused by the FTX/FTT/SBF/Democrat Party scandal. More below.

More final 2022 exit rally ahead of the Great Biden Bust of 2023.

 

European markets head for higher open as investors await euro zone inflation data

UPDATED WED, NOV 30 2022 12:27 AM EST

European markets are heading for a higher open on Wednesday as regional markets await the latest inflation data from the euro zone in November.

Elsewhere overnight, Asia-Pacific shares were mostly higher on Wednesday as the reading for China’s November factory activity fell short of expectations, dropping to the lowest reading since April.

Chinese health officials on Tuesday announced measures to boost vaccination among the elderly, an indicator seen as important for reopening the economy. When asked if recent unrest would lead to a shift in its zero-Covid policy, they said they were “closely watching the virus” for developments.

Meanwhile, U.S. stock futures inched up Wednesday morning as investors await a speech later today from Federal Reserve Chair Jerome Powell that may give further insight into future interest rate hikes.

European markets await euro zone inflation data (cnbc.com)

 

China’s factory activity at lowest reading since April; Asia markets largely higher

UPDATED WED, NOV 30 2022 12:21 AM EST

Asia-Pacific shares were mostly higher on Wednesday as the reading for China’s November factory activity fell short of expectations, dropping to the lowest reading since April 2022.

Hong Kong’s Hang Seng index traded 0.22% higher, the Shanghai Composite rose 0.21%, while the Shenzhen Component was 0.38% higher.

Chinese health officials on Tuesday announced measures to boost vaccination among the elderly, an indicator which is seen as important for reopening the economy, while saying it is “closely watching the virus” for developments when asked if the ongoing unrest would lead to a shift in its zero-Covid policy.

In Australia, the S&P/ASX 200 pared earlier losses and traded 0.43% higher after its monthly inflation indicator showed some slowing for October. The Nikkei 225 and the Topix in Japan slipped 0.43% and 0.48%, respectively.

South Korea’s Kospi reversed losses to rise 0.81%. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5%.

Japan’s Fast Retailing and electric-vehicle maker Xpeng are set to report earnings, and Fed Chair Jerome Powell will be delivering a speech at the Brookings Institution on Wednesday.

Overnight in the U.S., major indexes ended the session lower.

China's factory activity at lowest reading since April; Asia markets largely higher (cnbc.com)

‘Wild ride’: Morgan Stanley’s Mike Wilson predicts double-digit percentage drop will hit stocks in early 2023

Investors may be on the doorstep of a deep pullback.

Morgan Stanley’s Mike Wilson, who has an S&P 500 year-end target of 3,900 for next year, warns corporate America is getting ready to unleash downward earnings revisions that will pummel stocks.

“It’s the path. I mean nobody cares about what’s going to happen in 12 months. They need to deal with the next three to six months,” he told CNBC’s “Fast Money” on Tuesday. “That’s where we actually think there’s significant downside. So, while 3,900 sounds like a really boring six months. No... it’s going to be a wild ride.”

Wilson, who serves as the firm’s chief U.S. equity strategist and chief investment officer, believes the S&P could drop as much as 24% from Tuesday’s close in early 2023.

“You should expect an S&P between 3,000 and 3,300 some time in probably the first four months of the year,” he said. “That’s when we think the deacceleration on the revisions on the earnings side will kind of reach its crescendo.”

On Tuesday, the S&P 500 closed at 3,957.63, a 17% decline so far this year. Wilson’s year-end price target was 3,900 for this year, too.

“The bear market is not over,” he added. “We’ve got significantly lower lows if our earnings forecast is correct.”

And he believes the pain will be widespread.

More

Double-digit percentage drop will hit stocks in 2023: Morgan Stanley (cnbc.com)

Finally, great news for FTX employees, not so good news for FTX creditors and depositors. Would the last person out of crypto-land please remember to switch off the lights. 

 Collapsed crypto exchange FTX to resume salary payments

November 28, 2022

(Reuters) -Crypto exchange FTX and its affiliated companies, which have filed for U.S. bankruptcy court protection, said on Monday most subsidiaries would resume ordinary course payment of salary and benefits to employees worldwide.

The relief includes cash payments with respect to both pre-petition and post-petition periods, subject to limits established by the orders of the Bankruptcy Court.

"With the Court's approval of our First Day motions and the work being done on global cash management, I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world," Chief Executive John Ray said in a statement.

The relief includes cash payments with respect to both pre-petition and post-petition periods, subject to limits established by the orders of the Bankruptcy Court.

"With the Court's approval of our First Day motions and the work being done on global cash management, I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world," Chief Executive John Ray said in a statement.

Collapsed crypto exchange FTX to resume salary payments (msn.com)

Bitcoin: China causes BTC to slip - 2-year low in sight

28 November 2022

Investing.com - Like most "risk" assets, Bitcoin is starting this new week in the red, with a recent low of around $16,050, while the cryptocurrency spent most of yesterday around the $16,500 mark.

At the time of writing, BTC/USD is thus showing a drop of almost 2% since yesterday, to $16,200, and remains stable over a week.

As is the case with stock markets, this weakness in Bitcoin is linked to the risk-averse sentiment hovering over global markets on Monday, as rare protests in China worry investors around the world.

----In more Bitcoin-specific news, and more positive for the cryptocurrency, we note that data from blockchain data analysis company Santiment shows that the amount of Bitcoin present on crypto platforms has fallen below the threshold of 6.95% of the total supply.

This is the first time since November 2018 that this figure has fallen below 7%. This is a positive factor in the long term, as investors' retention of their bitcoins outside of platforms suggests a long-term holding intention. In contrast, an increase in the amount of bitcoin present on platforms is interpreted as an imminent intention to sell.

Santiment noted that the trend of taking Bitcoins off of exchange platforms and storing them on crypto wallets has been around since March 2020, but was significantly accelerated by the FTX bankruptcy case.

More

Bitcoin: China causes BTC to slip - 2-year low in sight (msn.com)

U.S. crypto broker Genesis says it is working to avoid bankruptcy filing

Nov 29 (Reuters) - U.S. cryptocurrency brokerage Genesis said it was seeking to avoid bankruptcy after Bloomberg news reported on Tuesday that creditors to the firm are organizing with restructuring lawyers to prevent insolvency.

Citing people with knowledge of the situation, the report said law firms Proskauer Rose and Kirkland & Ellis are being consulted by creditor groups, who are seeking to avoid a situation similar to crypto exchange FTX's rapid descent into bankruptcy.

"Our goal is to resolve the current situation in the lending business without the need for any bankruptcy filing," a Genesis spokesperson said.

Representatives for Proskauer and K&E did not immediately respond to requests for comment.

"We've begun discussions with potential investors and our largest creditors and borrowers, including Gemini and DCG, to agree on a solution that shores up our lending business' overall liquidity and addresses clients' needs," Genesis' interim chief executive Derar Islim told clients in a letter seen by Reuters.

The report comes as U.S. state securities regulators are investigating Genesis Global Capital as part of a wide-ranging inquiry into the interconnectedness of crypto firms, Barron's reported last week, citing a comment from the Alabama Securities Commission director.

---- The crypto lending arm of U.S. digital asset broker Genesis Trading suspended customer redemptions earlier this month, citing the sudden failure of FTX, where its derivatives business has approximately $175 million in locked funds, the company had said.

Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis' crypto lending arm, Digital Currency Chief Executive Barry Silbert told shareholders this month.

U.S. crypto broker Genesis says it is working to avoid bankruptcy filing | Reuters

FTX, that bankruptcy filing explained in detail. Approx 30 minutes.

 

FTX New CEO Has To Say About Sam Bankman-Fried

FTX New CEO Has To Say About Sam Bankman-Fried - YouTube

 

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.

Rates and recession: European shares face rocky start to 2023 - Reuters poll

MILAN, Nov 29 (Reuters) - Tightening financial conditions and the prospect of an economic recession are going to be a toxic brew for European shares going into 2023 with a key regional benchmark seen sliding towards October lows, a Reuters poll has found.

The poll of fund managers and strategists surveyed over the past two weeks forecasts the STOXX 600 (.STOXX) equity benchmark to reach 408 points by mid of next year, a near 8% drop from Friday's close.

Even as Europe has joined a recent global stock market recovery, fuelled by hopes of a pause in U.S. interest rate hikes, the STOXX 600 remains on course for its biggest one-year drop since 2018, down around 10% year-to-date.

"The impact of aggressive rate hikes will be felt on the real economy and hence earnings growths in the next few quarters. Based on our economists, we expect a shallow recession in Europe which leads to forecast an earnings decline of 12%" next year, said Barclays strategist Emmanuel Cau in London.

The index could recover in the second half, aided by expectations of peaking rates and reach 434 points by end-2023, down 1.5% from Friday's close and over 12% away from the lifetime high hit in January, according to the poll.

"The rise in risk premiums across asset classes will eventually reach a tipping point where a shift to more return-oriented investments will be warranted," said Tomas Hildebrandt, Senior Portfolio Manager at Evli in Helsinki.

"Things could change, for example, if the inflation outlook were to start improving significantly or if at least a ceasefire is achieved in Ukraine."

For the coming months, though, investors fear euro zone equities could lag other markets. The region's economy is seen as particularly vulnerable due to an energy crisis exacerbated by the Ukraine war and as the European Central Bank is steadily raising interest rates to fight price pressures in the bloc.

"The economic outlook looks challenging as our economists forecast a recession in the euro zone," said Marc Haefliger, Head of Global Equity Strategy at Credit Suisse in Zurich.

"We expect earnings to deteriorate and see the region underperforming on our tactical horizon. The economic slowdown will hit the cyclical euro zone market disproportionately," he added.

More

Rates and recession: European shares face rocky start to 2023 - Reuters poll | Reuters

Gazprom says European gas prices could pass $3,000 per thousand cubic metres

Nov 29 (Reuters) - The export arm of Russia's Gazprom (GAZP.MM) said on Tuesday that gas prices in Europe could surpass $3,000 per thousand cubic metres, the Interfax news agency reported.

Gazprom says European gas prices could pass $3,000 per thousand cubic metres | 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 targets older people in Covid-19 vaccination drive

Plan to accelerate vaccine rates among people over 80 comes as police crack down on protests against country’s zero-Covid policy

Tue 29 Nov 2022 10.52 GMT

Chinese health officials have announced a drive to accelerate vaccinations of older people against Covid-19, as police patrolled major cities to stamp out protests against the country’s strict zero-Covid policy.

The low vaccination rate among older people is one of the major hurdles to easing the zero-Covid policy, which has eroded economic growth, disrupted the lives of millions, and sparked three days of unprecedented protests.

At a regular press conference on Tuesday, officials said just 76.6% of people over 80 had received two vaccine doses, compared with more than 90% of the general population, and only 65.8% had received a booster jab.

The National Health Commission (NHC) said it would target more vaccinations at people older than 80, and reduce to three months the gap between basic vaccination and booster shots for elderly people.

Under a new plan for “strengthening coronavirus vaccination of the elderly”, the National Health Commission (NHC) said it would target more vaccinations at people older than 80 and reduce to three months the gap between basic vaccination and booster shots for elderly people.

Local authorities were ordered to improve vaccine promotion and delivery to older age groups, who have been far more averse to vaccination than younger generations. Some individuals who have refused vaccination would start having to explain why, officials said.

China has not yet approved mRNA vaccines, proven to be more effective, for public use. Health experts have expressed fears that lifting the zero-Covid policy while swathes of the population remain not fully immunised could overwhelm China’s healthcare system.

China logged 38,421 domestic infections on Tuesday, slightly down from record highs seen over the weekend and low when compared with caseloads seen in western countries during the height of the pandemic.

More

China targets older people in Covid-19 vaccination drive | China | The Guardian

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.

Researchers construct nanochannels from graphene oxide nanosheets to harvest ocean osmotic energy

NOVEMBER 28, 2022

 

When thinking of renewable energy sources, it is often solar or wind that spring to mind first—but what about ocean energy?

 

The ocean covers more than 70% of the Earth's surface—providing enormous potential for renewable and clean energy. Institute for Frontier Materials (IFM) researchers hope to unlock this potential.

In a paper published in the Journal of the American Chemical Society, IFM researchers have demonstrated how new advanced two-dimensional (2D) nanomaterial membrane technology can improve blue energy harvesting processes. Blue energy harvesting is a renewable energy that uses the salt content difference between river water and seawater to generate electricity.

Ocean energy is made up of five forms—tidal, water waves, ocean currents, temperature gradients and salinity gradient energy, offering a potential alternative, limitless energy resource," says Associate Professor Weiwei Lei, who is leading the sustainable energy generation project at IFM.

"Therefore, harvesting ocean energy through artificial devices has attracted tremendous interest. In particular, salinity gradient energy, also called 'osmotic energy' or 'blue energy,' provides significant promise for the development of renewable energy.

"It has a potential 1 TW energy (8500 TW h in a year), which exceeds the sum of hydraulic, nuclear, wind and solar energy in 2015.

"With the development of nanotechnology and 2D nanomaterials, novel 2D nanomaterials' membranes with nanopores and nanochannels were designed for blue energy harvesting.

"However, the energy harvesting efficiency of these membranes is still too low to meet the demands of practical applications due to their high internal resistance and low selectivity of ions.

"New advanced 2D nanomaterial membranes with novel and robust properties will solve this problem, which is in high demand now."

Assoc. Prof. Lei and his team members introduced a strategy to optimize the nanochannels within the 2D nanomaterial membranes to harvest more energy through higher volumes of water.

More

Researchers construct nanochannels from graphene oxide nanosheets to harvest ocean osmotic energy (phys.org)

Some of the queries Quakers are asked to consider, are: "Do you maintain strict integrity in your business transactions and in your relations with individuals and organizations? Are you personally scrupulous and responsible in the use of money entrusted to you, and are you careful not to defraud the public revenue?"

Probably why there a no Quakers on Wall Street, in the City of London or in Parliament.

 

 

 

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