Saturday, 28 January 2023

Special Update 28/01/2023 To Be Or Not To Be A Da Vinci.

 Baltic Dry Index. 676 -01      Brent Crude 86.66

Spot Gold 1928       U S 2 Year Yield 4.19 +0.02

Covid-19 cases 02/04/20 World 1,000,000

Deaths 53,100

Covid-19 cases 28/01/23 World 674,538,489

Deaths 6,758,838

“I did not attend his funeral, but I sent a nice letter saying I approved of it.”

 Mark Twain.

With both the Fed and Bank of England due to set their key interest rates for February next week, stocks look set to boom or bust.

But with inflation easing slightly, the stock casinos have already priced in boom.

So with a lively week expected next week, this weekends LIR focuses on that famous so called “Last Da Vinci,”  the Salvator Mundi.

For more on that, scroll down to today’s last, very intriguing section.

 

Stocks close higher Friday, Nasdaq posts fourth week of gains

UPDATED FRI, JAN 27 2023 5:07 PM EST

Stocks rose Friday and capped off a winning week fueled by better-than-expected economic growth and a pop in Tesla shares.

The Nasdaq Composite jumped 0.95% to settle at 11,621.71, while the S&P 500 gained 0.25% to close at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to finish at 33,978.08.

All the major averages posted a positive week and are on pace for a month of gains. The tech-heavy index rose 4.32% and closed out its fourth week of gains. It’s on pace for its best monthly performance since July. The S&P and Dow added 2.47% and 1.81%, respectively, this week.

Earnings season pressed on, with strong guidance boosting American Express shares by 10.5% despite a top-and bottom-line miss. Some chip stocks rose even as Intel slumped more than 6% on a dismal earnings report that missed expectations.

Tesla rose 11% Friday, and more than 33% for the week after reporting record revenue. It marked the electric vehicle stock’s best weekly performance since May 2013.

So far this year, markets have bucked 2022′s selloff trend. The Dow is up 2.5%, while the S&P has gained 6%. The Nasdaq has surged 11%.

“We’re putting the final touches on an extremely strong January on the heels of lower inflation, and an economy that’s hanging in there,” said Ryan Detrick, chief market strategist at Carson Group. “We’re not out of the woods though. We’ve still got the Fed next week, and they might want to throw some water on this rally.”

Investors weighed more economic data Friday ahead of next week’s Federal Reserve policy meeting. The personal consumption expenditures price index, excluding energy and food, showed prices rose 4.4% from a year ago, the Commerce Department said, and in line with the Dow Jones estimate. So-called PCE is a preferred inflation gauge for the Fed.

A better-than-expected fourth-quarter gross domestic product report Thursday also helped stoke hopes that the Fed may manage a soft landing.

These are some of the last data points before the central bank’s widely expected 25 basis point hike.

Stocks close higher Friday, Nasdaq posts fourth week of gains (cnbc.com)

 

Your Evening Briefing: Key Fed-Favored Measure Shows Cooling Inflation

January 27 2023

The US Federal Reserve’s preferred inflation measures eased in December to the slowest annual pace in over a year while consumer spending fell, helping pave the way for policymakers to further scale back interest-rate hikes. The figures added to mounting evidence that the worst bout of inflation in a generation has passed as the Fed’s aggressive tightening campaign works its way through the economy. Officials are widely expected to once again slow the pace of rate hikes, to a quarter point next week, and will discuss how much higher they need to go to ensure prices are cooling for good. 

But as always, there’s bad news, too. Another key gauge of the health of the American economy is showing stress. There’s a growing cohort of Americans facing auto repossessions, often an ominous sign. During the pandemic, a surge in used car prices forced buyers to take out bigger loans for their vehicles. The monthly payments may have been more manageable amid lockdown bailout checks, a tight labor market and surging stocks. But that’s changing for many people as inflation, though cooling, eats into their budgets. 

Wall Street on Friday brushed off disappointing outlooks from big tech companies, as well as predictions that an earnings recession would overshadow Fed success on the inflation front. 

More

Bloomberg Evening Briefing: Key Fed-Favored Measure Shows Cooling Inflation - Bloomberg

Bank of England boss Andrew Bailey set to stage U-turn as he is expected to row back on 'grossly exaggerated' forecasts about UK's looming recession

27 January 2023

Andrew Bailey will stage a humiliating U-turn next week as he is expected to row back on 'grossly exaggerated' forecasts about the UK's looming recession.

The Bank of England will publish its latest quarterly Monetary Policy Report on Thursday setting out the projections used by policymakers to set interest rates.

In November, Bailey warned the country faces the longest recession on record and soaring unemployment. The Bank said the UK was at the start of a painful slump that could leave an extra 1m workers jobless.

But ahead of next week's update a top fund manager said Bailey will backtrack on his comments, producing a 'relatively improved outlook'. 

Toscafund chief economist Savvas Savouri said: 'The BoE's grossly exaggerated expectations for UK unemployment and inflation contributed in no small way to the dire GDP forecasts it published in the Monetary Policy Reports of August and November 2022. Expect for Bailey to suggest the UK still faces recession, but one shorter and milder than the one he had outlined through last year. We expect the length of his recession forecast to be cut in half – a 'softer landing'.'

More

Bank of England boss Andrew Bailey set to stage U-turn as he is expected to row back on 'grossly exaggerated' forecasts about UK's looming recession (msn.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.

Column: Recession now or later? Unenviable alternatives for 2023

LONDON, Jan 26 (Reuters) - Optimistic investors are hoping for a soft landing in 2023 - with inflation decelerating while the business cycle slows but avoids outright recession.

However, this middle way is actually the least likely outcome given the lack of spare capacity in global supply chains and job markets to absorb continued output growth.

Two other scenarios are more likely: (1) inflation fades because the economy slides into recession, or (2) continued growth sparks a fresh round of price increases, forcing central banks to raise interest rates further.

The first scenario is consistent with a recession starting in early 2023, the second with a recession deferred until late 2023 or early 2024 when inflation and interest rate rises induce a slowdown.

CYCLICAL EXTREMES

During a typical economic cycle, output growth alternates between expansions well above the long-term trend rate and contractions well below trend; growth is close to trend only for relatively short periods.

In the last 40 years, U.S. manufacturing output growth was within ± 1.0 percentage points of the prior ten-year trend only 30% of the time and within ± 0.5 percentage points only 16% of the time.

By contrast, growth was well above trend (>1.0 percentage points) for 39% of the time and well below trend (<1.0 percentage points) for 30% of the time.

Moderate growth close to trend is not the norm.

Instead, recessions create substantial slack in manufacturing, supply chains and labour markets that provide conditions for faster post-recession growth.

Eventually, the cyclical slack is absorbed and continued above-trend growth creates inflationary pressure until central banks raise rates to induce a slowdown and bring prices under control.

But there is almost no cyclical slack in the major economies at present, which implies the potential for non-inflationary growth in 2023 is limited.

DIESEL SHORTAGE

Diesel is the workhorse of the industrial economy. Most diesel is used in freight transport, manufacturing, construction, mining, and oil and gas production, so consumption and inventories track the cycle closely.

Global diesel inventories are currently close to multi-year lows in North America, Europe and Asia, illustrating the lack of spare capacity:

More

Column: Recession now or later? Unenviable alternatives for 2023 | 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.

Why no investigation by anyone? Approx. 16 minutes.

Excess deaths in 30 countries

Excess deaths in 30 countries - YouTube

FDA Quietly Changes End Date for Study of Heart Inflammation After Pfizer COVID Vaccination

January 27, 2023 Updated: January 27, 2023

The U.S. Food and Drug Administration (FDA) has changed the end date for a key study on post-vaccination heart inflammation without notifying the public.

Pfizer was supposed to complete a study on the occurrence of subclinical myocarditis, or heart inflammation, after receipt of its COVID-19 vaccine. The completion date was listed by the FDA in 2021 as June 20, 2022. Pfizer was also supposed to submit the results of the study to the FDA by the end of 2022 as part of a list of requirements the FDA imposed as a condition of approving Pfizer’s jab.

But after the deadline passed, the FDA quietly changed the date.

Under a list of postmarketing requirements for the Pfizer-BioNTech vaccine, the FDA now says the same study has an “original projected completion date” of June 30, 2023.

The current status of the study is listed as “pending.”

The FDA and Pfizer did not respond to requests for comment.

Jessica Adams, a former regulatory review officer at the FDA, said the wording amounts to misinformation.

“By definition, ‘original’ dates can’t change,” she wrote on Twitter, tagging the agency. “Please correct this ‘misinformation.'”

Dr. Vinay Prasad, who has increasingly criticized the FDA over its decisions during the pandemic, said the new timeline “is so slow it will be entirely moot.”

----The study is one of nine Pfizer was to complete to examine post-vaccination adverse events.

The study is designed to “prospectively assess the incidence of subclinical myocarditis” after receipt of a third dose, or a booster, in people aged 16 to 30.

More

FDA Quietly Changes End Date for Study of Heart Inflammation After Pfizer COVID Vaccination (theepochtimes.com)

World Health Organization - Landscape of COVID-19 candidate vaccineshttps://www.who.int/publications/m/item/draft-landscape-of-covid-19-candidate-vaccines

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 more useful Covid links.

Johns Hopkins Coronavirus resource centre

https://coronavirus.jhu.edu/map.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, I’ve added this section.

With Fed week coming up, no technology update this weekend.  What would central banksters do with technology but print more fiat money.

This weekend something different. The Great “Last Da Vinci” hoax? Part 1, approx. 13 minutes.

The Strange Saga of the Salvator Mundi | Part 1

The Strange Saga of the Salvator Mundi | Part 1 - YouTube

This weekend’s Great “Last Da Vinci” hoax? Part 2? Approx. 13 minutes.

The Strange Saga of the Salvator Mundi | Part 2

The Strange Saga of the Salvator Mundi | Part 2 - YouTube

This weekend’s Great “Last Da Vinci” hoax? Part 3.  Approx. 7 minutes.

The Strange Saga of the Salvator Mundi | Part 3

The Strange Saga of the Salvator Mundi | Part 3 - YouTube

I have never viewed the Salvator Mundi, but I have viewed the Mona Lisa in Paris. To me, the Salvator Mundi is no Da Vinci, not even on his worst ever day in the studio, after a long night out on the town.

Normal weekend service next weekend.

“I am enclosing two tickets to the first night of my new play; bring a friend ... if you have one."
— George Bernard Shaw, playwright (to Winston Churchill)


"Cannot possibly attend first night; will attend second, if there is one."
— Churchill's response

 

 

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