Thursday, 19 January 2023

Dow Dreams Burst. Oil In Other Currencies. Crypto Bust.

 Baltic Dry Index. 874 -47          Brent Crude 84.08

Spot Gold 1909             US 2 Year Yield 4.06 -0.12

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

Deaths 53,103

Coronavirus Cases 19/01/23 World 672,215,054

Deaths 6,736,076

“A good politician is quite as unthinkable as an honest burglar.”

H. L. Mencken.

Today we are again spoiled for choice. Below is only small sample of the increasingly dismal economic news.

Asia-Pacific stocks trade mixed after losses on Wall Street

UPDATED WED, JAN 18 2023 11:31 PM EST

Shares in the Asia-Pacific traded mixed on Thursday after tracking losses on Wall Street overnight.

In Japan, the Nikkei 225 and Topix traded down 1.28% and 0.81% respectively after Japan recorded another trade deficit for December, one day after the Bank of Japan surprised markets by keeping its yield curve tolerance band unchanged. The yen currently stands at at 128.43 against the U.S. dollar.

South Korea’s Kospi inched up 0.37%, while the Kosdaq traded flat. Australia’s S&P/ASX 200 edged up 0.57%.

Hong Kong’s Hang Seng index fell fractionally. Mainland China’s Shanghai Composite inched up 0.13% and the Shenzhen Component was down 0.44%.

Hong Kong and Australia are slated to post its unemployment rate reading for December and October to December respectively.

Overnight on Wall Street, major stock indexes stumbled, with the S&P 500 recording its worst day in more than a month.

Asia-Pacific stocks trade mixed after losses on Wall Street (cnbc.com)

European markets head for lower open as investor mood sours

UPDATED THU, JAN 19 2023 12:32 AM EST

European markets are heading for a negative open Thursday as investors gauge the economic outlook, a topic high on the agenda at the World Economic Forum in Davos this week.

CNBC will be speaking to a range of delegates at the World Economic Forum on Wednesday, including the CEOs of Enel, Merck, Rio Tinto and leaders of the Netherlands and Ireland, among many others.

The lower open in Europe comes after the Dow Jones Industrial Average tumbled more than 600 points on Wednesday as investors took profits on some of the strong January gains, and as a disappointing December retail sales reading in the U.S. raised concerns about a recession. Overnight, shares in the Asia-Pacific traded mixed on Thursday after tracking the losses on Wall Street.

European markets live updates: Data, news, stocks, WEF and earnings (cnbc.com)

S&P 500 posts worst day in more than a month, Dow closes 600 points lower

UPDATED WED, JAN 18 20235:20 PM EST

The Dow Jones Industrial Average tumbled more than 600 points on Wednesday as investors took profits on some of the strong January gains and as a disappointing December retail sales reading raised concerns about a recession. Shares of banks led the losses.

The Dow fell 613.89 points, or 1.81%, to 33,296.96. The S&P 500 lost 1.56% to close at 3,928.86, its lowest level since Dec. 15. The Nasdaq Composite slid 1.24% to end the day at 10,957.01, snapping a seven-day win streak.

---- JPMorgan, Bank of America and Wells Fargo fell as the 10-year U.S. Treasury yield slid to its lowest level since September. Shares of regional banks like Zions and Fifth Third posted bigger losses.

Elsewhere, Microsoft announced plans to lay off about 10,000 employees, which hurt investor sentiment. The stock fell, contributing to the Dow’s decline.

In economic data, investors digested the latest retail sales numbers, which showed a drop of 1.1% in December, slightly more than the 1% forecast. The report suggested consumers are slowing their spending, with department stores reporting a 6.6% decline and online sales dropping 1.1%.

Investors also weighed the latest reading on the producer price index, which measures input costs from companies. The PPI showed a 0.5% decline for December. Economists surveyed by Dow Jones expected a 0.1% decline.

More

S&P 500 posts worst day in more than a month, Dow closes 600 points lower (cnbc.com)

In other news, Saudi Arabia is ready to sell oil in other currencies to the dollar!

The Fed calls for higher for longer.

Another crypto crash.

Tomorrow will not be like today which was like yesterday. Tomorrow looks set to be very different.

Saudi Arabia Is Open To Discuss Non-Dollar Oil Trade Settlements

By Charles Kennedy - Jan 17, 2023, 10:00 AM CST

Saudi Arabia, the world’s largest crude oil exporter, is open to discussing oil trade settlements in currencies other than the U.S. dollar, Saudi Minister of Finance, Mohammed Al-Jadaan, told Bloomberg TV in an interview in Davos on Tuesday.

The Saudi signal that it could be open to talks about oil trade arranged in non-dollar currencies could be another threat to the current dominance of the U.S. dollar in global oil trade.

“There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal,” Al-Jadaan told Bloomberg TV.

“I don’t think we are waving away or ruling out any discussion that will help improve the trade around the world,” the Saudi minister added.

The Saudi riyal has been pegged to the U.S. dollar for decades, while the Saudi oil exports continue to support the petrodollar system from the 1970s in which the world’s top oil exporter prices its crude in U.S. dollars.

However, Saudi Arabia is willing to deepen its strategic cooperation in oil trade with China, the world’s largest crude oil importer.

Last month, China and Saudi Arabia agreed to expand crude oil trade as they upgraded their relations to a strategic partnership during the visit of Chinese President Xi Jinping in the Saudi capital Riyadh.

China, for its part, plans to make its own currency, the yuan, more prominent in international oil trade. 

During a visit to Saudi Arabia last month, Xi Jinping pledged to ramp up efforts to promote the use of the yuan in energy deals, suggesting at a summit in the Saudi capital that the Gulf Cooperation Council (GCC) countries should make full use of the Shanghai Petroleum and Natural Gas Exchange to carry out its trade settlements in yuan.   

Saudi Arabia Is Open To Discuss Non-Dollar Oil Trade Settlements | OilPrice.com

Fed policymakers call for further rate hikes to beat inflation

Jan 18 (Reuters) - Federal Reserve policymakers on Wednesday signaled they will push on with more interest rate hikes, with several supporting a top policy rate of at least 5% even as inflation shows signs of having peaked and economic activity is slowing.

"I just think we need to keep going, and we'll discuss at the meeting how much to do," Cleveland Fed President Loretta Mester said in an interview with the Associated Press.

The remarks appeared to reflect a widely shared view among her fellow policymakers, most of whom as of December had penciled in a 5.00%-5.25% policy rate in coming months.

Mester said that for her part she expects the Fed's policy rate to need to go "a bit higher" than that, and stay there for some time to further slow inflation.

The Fed's benchmark overnight lending rate currently sits in a target range of 4.25% to 4.50%, and investors expect the Fed to lift that rate by a quarter of a percentage point at the end of its Jan. 31-Feb. 1 meeting.

More

Fed policymakers call for further rate hikes to beat inflation | Reuters

Cryptocurrency news - live: Genesis to file for bankruptcy amid ‘major’ US crypto move

January 19, 2023

Cryptocurrency firm Genesis Global Capital is planning to file for bankruptcy as early as this week, Bloomberg reported today.

The bankruptcy filing has been expected since the November fall of the FTX cryptocurrency exchange.

Meanwhile, the US Justice Department has announced that Anatoly Legkodymov, the Russian operator of the China-based crypto exchange Bitzlato, has been arrested. Bitzlato was a crypto exchange that allegedly worked with the darknet blackmarket Hydra Market, which dealt in illicit trade and served as a safe haven for ransomware attackers, according to the DOJ.

The US Justice Department issued a vague statement on Wednesday that it would “announce a major, international cryptocurrency enforcement action”, and noted that the US Treasury Department would also be making its own statement.

The announcement comes at a time when former FTX crypto exchange CEO Sam Bankman-Fried is facing charges of wire fraud, securities fraud, and conspiracy. The DOJ stressed that criminals using the crypto space for scams and other criminal activity should be aware the agency will use “every tool” to crack down on their activities.

Mr Bankman-Fried’s company – long considered one of the biggest crypto exchanges alongside Binance – declared bankruptcy after allegedly using, and losing, customers’ funds as investment capital.

More

Cryptocurrency news - live: Genesis to file for bankruptcy amid ‘major’ US crypto move (msn.com)

Finally, in the USA, the world’s largest debtor, it’s time to fight over raising the debt ceiling again. Only in America, as they say. The real cut-off comes in June if no resolution comes before then.

Biden and McCarthy Square Off Over the Debt Ceiling

January 17 2022

House Speaker Kevin McCarthy (R-CA) called on Democrats to begin talks immediately on raising the debt ceiling, a critical requirement that Republicans plan to use as leverage in their effort to slash federal spending. “I would like to sit down with all the leaders and especially the president and start having discussions,” McCarthy said Tuesday at the Capitol.

Treasury Secretary Janet Yellen warned last week that the federal government would run up against the federal debt ceiling on this Thursday, forcing the Treasury to start taking “extraordinary measures” that would provide liquidity roughly through June. McCarthy said he wants to start talks before the cash crunch gets too close. “Who wants to put the nation through some type of threat at the last minute with the debt ceiling? Nobody wants to do that,” he said.

The White House, however, made it clear that President Joe Biden – who called Republicans “fiscally demented” in comments over the weekend — has no plans to negotiate on the issue, and is demanding instead a clean vote to raise the debt limit.

More

Biden and McCarthy Square Off Over the Debt Ceiling (yahoo.com)

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.

U.S. economy losing momentum as retail sales post biggest drop in 12 months

WASHINGTON, Jan 18 (Reuters) - U.S. retail sales fell by the most in a year in December, pulled down by declines in purchases of motor vehicles and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023.

The second straight monthly decrease in retail sales, which are mostly goods, is undercutting production at factories. Manufacturing output recorded its biggest drop in nearly two years in December, while monthly producer prices also tumbled, other data showed on Wednesday.

More

U.S. economy losing momentum as retail sales post biggest drop in 12 months | Reuters

New York State manufacturing plunges in January as orders collapse, employment growth stalls

January 17 2023

New York State manufacturing contracted sharply in January as orders collapsed and employment growth stalled, pointing to continued weakness in national factory activity, and little improvement was expected over the next six months.

The survey from the New York Federal Reserve on Tuesday offered an early read of conditions in one of the sectors hardest hit by the Federal Reserve’s fastest interest rate hiking cycle since the 1980s. It showed slumping demand and improved raw material supplies slowing inflation at the factory gate. National manufacturing has been shrinking since November, according to data from the Institute for Supply Management.

“A variety of manufacturing surveys have been weak across recent months and the Empire State survey suggests that this weakness continued, or perhaps intensified, early this year,” said Daniel Silver, an economist at JPMorgan in New York.

The New York Fed’s “Empire State” index on current business conditions plummeted to –32.9 this month from –11.2 in December. That was the lowest level since May 2020 and the fifth worst reading in the survey’s history. Economists polled by Reuters had forecast the index at –9.0.

A reading below zero signals the New York manufacturing sector is contracting. Forty-four per cent of respondents in the survey conducted between Jan. 3 and Jan. 10 reported that conditions had worsened, while only 11 per cent said they had improved.

A gauge of new orders tumbled 27.5 points to –31.1. The shipments index dropped 27.7 points to –22.4. Order backlogs are also drying up, while inventories are steadily rising.

Higher borrowing costs are weighing on demand for goods, which are mostly bought on credit. Spending is also shifting back to services. The dollar’s past appreciation and softening global demand are also hurting manufacturing, which accounts for 11.3 per cent of the U.S. economy.

The Fed last year raised its policy rate by 425 basis points from near zero to a 4.25 per cent-4.50 per cent range, the highest since late 2007. In December, the U.S. central bank projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023.

With orders collapsing and the pipeline of unfinished work slowing, employment growth in the region stalled this month, with a measure of number of employees falling 11.2 points to 2.8, the lowest level in more than two years. Factories also reduced hours for workers.

“Manufacturing conditions in the U.S. are deteriorating and the worse is likely ahead,” said Gurleen Chadha, a U.S. economist at Oxford Economics.

More

New York State manufacturing plunges in January as orders collapse, employment growth stalls - The Globe and Mail

 

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.

Are Athletes Dropping Dead From the COVID Jab?

Jan 17 2023

Despite ‘fact’ checkers’ best efforts to dismiss it as normal, the number of people in this group who died suddenly between January and April 2022 was 1,696% above the historical monthly norm. Is this the deadly combo that’s causing it?

 

----With every passing day, the list of people suffering tragic consequences from the COVID mRNA shots grows longer. As of December 23, 2022, the U.S. Vaccine Adverse Events Reporting System (VAERS) had received 33,334 reports of post-jab deaths, 26,045 cases of myocarditis and 15,970 heart attacks.1

 

Many of these people and their stories have remained hidden from public view as social media have universally censored these stories. As a result, people who only read mainstream media are largely unaware of the damage being done. However, there is a population of people whose injuries and deaths have been far more public.

 

Over the past two years (2021 through 2022), more than 1,6502,3,4,5,6,7 professional and amateur athletes have collapsed due to cardiac events and 1,1488 of them proved fatal. In his book “Cause Unknown: The Epidemic of Sudden Deaths in 2021 and 2022,”9 Edward Dowd writes extensively about the anomalous number of deaths now occurring among athletes, which, despite “fact checkers” best efforts to dismiss it as “normal,”10,11 is anything but.

More

Are Athletes Dropping Dead From the COVID Jab? (theepochtimes.com)

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.

World's first ammonia-electric semi packs as much energy as the Tesla

Loz Blain  January 17, 2023

Claiming a system-level energy density 5X higher than batteries, Amogy has rolled out "the world's first ammonia-powered, zero-emission semi truck." It holds about 900 kWh of energy, like the Tesla Semi, but you can refuel it in about eight minutes.

Ammonia does a better job of storing hydrogen than hydrogen itself, in many ways, and it could help clean up some difficult industries that require high-density energy. Brooklyn company Amogy has now presented a world-first ammonia-powered semi truck.

Ammonia has two chief advantages over hydrogen as an energy carrier. One is the fact that it's a liquid at ambient temperature and pressure levels, making it a ton easier to store, transport and handle; hydrogen either needs to be heavily compressed to around 700 bar, or else kept cryogenically cooled as a liquid, to just 20.28 K (−252.87 °C; −423.17 °F) – both of these are energy-intensive processes. The second is how much energy it carries: by volume, nearly three times as much as hydrogen gas, and by weight, more than 20 times as much as today's lithium batteries.

It can be produced cleanly, and it can be used as a fuel in many different ways, many of which create zero harmful or climate-relevant emissions. And while it does have certain drawbacks, green ammonia is viewed as a promising clean fuel alternative for industries like shipping, aviation and other applications where batteries and hydrogen gas simply can't carry enough juice to get the job done.

More

World's first ammonia-electric semi packs as much energy as the Tesla (newatlas.com)

Richard Wittington, an honest dreamer, travels to London “where the streets are paved with gold”. Fairy Bow Bells realises his destiny, and supplies him with an introduction to the leading London bitcoin gambler, Bernie Buymore, a 22 year old dropout from the London School of Economics, who’s fighting extradition to America over an unintended flash crash in shady Chicago.

With apologies to Richard Gauntlett author of pantomime scripts.

 

 

 

 

 

 

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