Tuesday, 24 January 2023

While The Cat’s Away…

 Baltic Dry Index. 740 -23           Brent Crude 87.92

Spot Gold 1935             US 2 Year Yield 4.21 +0.07

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

Deaths 53,103

Coronavirus Cases 24/01/23 World 673,507,907

Deaths 6,748,120

Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape from the state.

William F. Rickenbacker

While the cat’s away the mice will play and so with many of the Asian stock casinos closed for the Lunar New Year celebrations, what better time to mount a short squeeze in a bear market.

Asia-Pacific markets rise as most of the region observes Lunar New Year holidays

UPDATED MON, JAN 23 2023 11:28 PM EST

Markets in the Asia-Pacific traded higher as Lunar New Year holidays were observed in most of the region.

In Australia, the S&P/ASX 200 rose 0.17% in Asia’s morning trade, following Wall Street’s tech-fueled rally ahead of major earnings reports. New Zealand’s S&P/NZX 50 traded slightly above the flatline.

The Nikkei 225 rose 1.61% and the Topix gained 1.08%. The Japanese yen continued to trade above 130 against the US dollar for the second consecutive day and last stood at 130.53.

The yield on the 10-year Japanese Government Bonds continued to trade below the central bank’s upper ceiling of its tolerance range and last stood at 0.39%.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index will be released later in the day. Markets in China, Hong Kong, Taiwan, South Korea, Malaysia and Singapore are closed for a holiday.

The Nasdaq Composite rose more than 2% in the U.S. on optimism the Federal Reserve may slow down its interest rate hikes. Last week, economic data showed a decline in wholesale prices and retail sales.

Asia markets: Australia PMI, Japan Jibun Flash PMI, Lunar New Year holidays (cnbc.com)

Stock futures are little changed as Wall Street looks to build on back-to-back gains

UPDATED MON, JAN 23 2023 7:04 PM EST

Stock futures were largely flat on Monday evening as investors looked to continue a strong start to the week during a busy stretch of corporate earnings.

Futures tied to the Dow Jones Industrial Average dipped 4 points, or less than 0.1%. S&P 500 futures and Nasdaq 100 futures were each lower by less than 0.1%.

The muted move in futures comes after a solid start to the week on Wall Street. On Monday, the Nasdaq Composite led with a gain of 2.01%. The S&P 500 and Dow gained 1.19% and 0.76%, respectively. It was the second straight positive day for the major averages, and all three are up in 2023.

The gains have come despite an underwhelming start to earnings season and more signs that the U.S. economy is slowing.

“It is possible that for this quarter, for Q4, we could see some upside surprises because the economy was holding up well,” said Angelo Kourkafas, investment strategist at Edward Jones.

“However, the focus will be on any kind of guidance and the outlook, and the leading economic indicators and market indicators that we look at are all pointing toward the same thing — that a slowdown and a weakening of the economy is coming.”

On Tuesday, General Electric, Johnson & Johnson and Verizon are among the key companies reporting earnings before the bell. Software giant Microsoft is scheduled to report on Tuesday afternoon.

Stock futures are little changed as Wall Street looks to build on back-to-back gains (cnbc.com)

Back in the real world, things don’t look quite so rosy. Will China’s reopening from ludicrous Covid-19 lockdowns be enough to save the global economy from a 2023 recession?

If yes, how high will crude oil prices rise even if President Biden opts for never refilling the US strategic petroleum reserve.

Japan's factory activity extends declines for third straight month - PMI

TOKYO, Jan 24 (Reuters) - Japan's manufacturing activity contracted for a third straight month in January as export weakness persisted amid a worsening global outlook, a corporate survey showed on Tuesday.

The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) was at a seasonally adjusted 48.9 in January, unchanged from the final reading in the previous month.

The soft factory activity clouds policymakers' hopes that key wage talks in the months ahead will offset the squeeze to consumers from 41-year-high inflation and help sustain the fragile post-pandemic recovery.

The index stayed below the 50-line that separates contraction from expansion for a third straight month, after December's final figure marked the fastest fall in 26 months.

Factory output and new orders decreased for a seventh consecutive month, although at slower paces than last month, the sub-index data showed.

The Reuters Tankan survey last week showed the first negative reading for business confidence at big Japanese firms in two years amid worsening overseas conditions and rising living costs.

By contrast, service-sector activity extended growth for a fifth month, thanks to a tourism boom and relaxation of COVID-19 curbs.

The au Jibun Bank flash services PMI rose to a seasonally adjusted 52.4 in January from the previous month's 51.1 final, hitting a three-month high.

"Similar to trends recorded over much of the past six months, a divergence between the manufacturing and services sectors has remained," said Laura Denman, economist at S&P Global Market Intelligence, which compiles the survey.

On the outlook, however, service operators were less optimistic, with a business sentiment sub-index hitting the lowest in 24 months. While input prices rose at a faster pace than the previous two months, output price inflation was the slowest in five months, squeezing profitability.

Overall, the au Jibun Bank Flash Japan composite PMI rose to 50.8 in January, up from last month's final 49.7 and emerging above the break-even 50 line for the first time in three months.

Japan's factory activity extends declines for third straight month - PMI | Reuters

Finally, in crypto news, would the last one out please turn out the lights. How long before Gemini follows Genesis into bankruptcy?

In other crypto news, did/is Uncle Scam buying bitcoin to pay-off an aviation hack that grounded all US flights recently? Of course not, officially, the “hack” was just a programing error during an “upgrade” gone wrong, but the rumour still has legs.

Crypto exchange Gemini lays off 10% of workforce in its latest round of cuts

Crypto exchange Gemini will reduce its headcount by 10%, a spokesperson told CNBC on Monday.

It’s at least the third round of cuts in less than a year for Gemini, which was co-founded by twins Cameron and Tyler Winklevoss, and unlike many of its peers, is subject to New York banking regulation.

Gemini had 1,000 employees as of November 2022, according to PitchBook data, suggesting around 100 people lost their positions. TechCrunch reported that Gemini had previously trimmed its headcount by 7% in July 2022, following a 10% staff a month earlier.

Other crypto firms like Crypto.comCoinbaseKraken, and Genesis have eliminated positions since Nov. 11, the day that Sam Bankman-Fried’s crypto exchange FTX filed for bankruptcy. In early January, Coinbase slashed 20% of its workforce in a second major round of job cuts in an effort to preserve cash during the crypto market downturn.

“It was our hope to avoid further reductions after this summer, however, persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other choice but to revise our outlook and further reduce headcount,” wrote Cameron Winklevoss in an internal message obtained by The Information.

Gemini has endured a battle over customer funds in recent weeks. The exchange also faces a legal fight with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities in connection with its partnership with Barry Silbert’s bankrupt company, Genesis.

Gemini has been embroiled in an intense spat with Silbert’s Genesis Trading, a crypto lending firm that generated rich returns for Gemini clients through Gemini’s high-yield lending product, which is known as Gemini Earn.

The relationship soured when FTX filed for bankruptcy. Genesis subsequently froze lending and redemptions shortly thereafter, leaving Gemini customers short an estimated $900 million. The chain of failures also forced the Gemini Earn product to quickly follow suit with its own temporary suspension.

In the months since the Earn product was halted, Gemini’s 340,000 customers have grown increasingly frustrated. Some have banded together in a class action lawsuit against the exchange.

Genesis filed for bankruptcy protection on Jan. 19. The filing lists the 50 largest unsecured creditors, with Gemini topping the list at $765.9 million — more than $300 million higher than the next creditor.

Crypto exchange Gemini lays off 10% of workforce (cnbc.com)

Bitcoin’s 2023 rally gathers steam as cryptocurrency briefly tops $23,000

Bitcoin has kicked off 2023 on a positive note, with investors hoping for a reversal in the monetary tightening that spooked market players last year.

The Fed and other central banks began cutting interest rates in 2022, shocking holders of risky asset classes, like stocks and digital tokens. Publicly-listed tech stocks and private venture capital-backed start-ups particularly took a beating, as investors sought protection in assets perceived as safer, such as cash and bonds.

With inflation now showing signs of cooling in the U.S., some market players are hopeful that central banks will start easing the pace of rate rises, or even slash rates. Economists previously told CNBC they predict a Fed rate cut could happen as soon as this year.

“Fed tightening seems to be lighter and inflation less of a risk,” Charles Hayter, CEO of crypto data site CryptoCompare, said in emailed comments to CNBC. “There is hope there will be more caution to rate rises globally.”

The Fed is likely to keep interest rates high for the time being. However, some officials at the bank have recently called for a reduction in the size of quarterly rate hikes, wary of a slowdown in economic activity.

The world’s top digital currency, bitcoin, is “increasingly looking like it has put in its bottom,” according to Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno.

Bitcoin short sellers have been squeezed by sudden upward moves in prices, according to Ayyar. Short selling is an investment strategy whereby traders borrow an asset and then sell it in the hope that it will depreciate in value.

A wipe-out of those short positions sparked by the rising price of bitcoin has added “fuel to the fire,” Ayyar said, as short sellers are forced to cover their bets by buying back the borrowed bitcoin to close them out.

Investors don’t seem to have been greatly perturbed by the collapses of top crypto companies, stemming from the fallout of digital currency exchange FTX’s insolvency in November.

More

Bitcoin 2023 rally gathers steam as cryptocurrency tops $23,000 (cnbc.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.

Where investors might want to look if interest rates and inflation persist

Mon, January 23, 2023 at 11:00 AM GMT

Given just how sensitive the market is to interest rates these days, it isn’t a surprise that all eyes remain focused on central bankers trying to figure out when they will not only slow the pace of their hikes, but cut them and return to the good old days of quantitative easing and easy money.

For example, we’ve read that the bond market is currently factoring in a 70-per-cent chance of a 25-basis-point rate hike this week by the Bank of Canada, with its first rate cut coming in September, after last week’s Canadian consumer price index print of 6.3 per cent.

The probability of a recession in the United States stands at 65 per cent among analysts, according to Goldman Sachs Group Inc. Not surprisingly, 20 per cent believe the U.S. Federal Reserve will cut rates this year while 52 per cent are expecting a rate cut the first half of 2024.

----What happens if the global economy does not enter a deep recession or even a recession at all, and inflation moderates but not below the targeted two per cent and stays in the four-to-five-per-cent range? Why would central bankers reduce interest rates should this play out? Why is their target two per cent? Isn’t it about having positive real rates?

We think with China’s economy reopening, continuing wage hikes due to demographic trends and persistent large fiscal-deficit spending by left-leaning governments in the developed world will all provide a floor to just how low inflation will fall and, with it, interest rates without sending the world into a recession.

We are already seeing hints of this taking shape.

The stock price of Caterpillar Inc., which is a go-to bellwether of the health of the global economy, is now back to all-time highs. During its third-quarter conference call, management indicated it is witnessing increased sales across all regions and business lines. Shares of LVMH Moet Hennessy Louis Vuitton SE, the Paris-based conglomerate specializing in luxury goods, are also setting new all-time highs.

While in the early stages, global commodities are showing some strength, with copper now up more than 25 per cent from its July 2022 lows, SGX TSI Iron Ore up nearly 60 per cent from November, and RBOB Gasoline Futures up over 23 per cent from December.

More

Where investors might want to look if interest rates and inflation persist (yahoo.com)

Recession to be more than twice as bad as first feared, forecasters warn

January 23 2023

The much touted coming recession in Britain will be twice as bad as first feared, new forecasts out today reveal.

Soaring prices coupled with the Bank of England’s efforts to tame them are set to deal a heavier blow to GDP than projected just a few months ago.

According to the EY Item Club, the economy will shrink 0.7 per cent this year, worse than the 0.3 per cent the organisation forecast in October.

The cumulative lost GDP will be about the same amount shed during the recession in the early 1990s that saw house prices collapse and the UK crash out of the European Exchange Rate Mechanism.

The recession will be a lot shallower than the ones sparked by the financial crisis and Covid-19 pandemic.

The UK economy unexpectedly grew 0.1 per cent in November, ONS figures earlier this month revealed, raising hopes that the country narrowly avoided a technical recession – two back-to-back quarters of contraction – at the end of 2022.

But, the government reining in energy bill support and raising taxes has put the economy on a weaker long term path.

The EY Item Club slashed its forecasts for each of the next three years, down to 1.9 per cent from 2.4 per cent  in 2023 and to 2.2 per cent from 2.3 per cent in 2025.

Inflation is on track to decline quickly this year, pushed lower by international energy prices falling back to their pre-Russian invasion of Ukraine levels, to under four per cent, still nearly double the Bank of England’s two per cent target.

Living costs have climbed more than 10 per cent over the last year, the quickest acceleration in 40 years, leaving wages in their wake. This means households have less capacity to buy goods and services.

More

Recession to be more than twice as bad as first feared, forecasters warn (msn.com)

 

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.

Will Covid reinfections pose increased health risks? Experts aren’t sure

A study found that repeat infections increases the possibility of hospitalization or death, but some experts refute those findings

Mon 23 Jan 2023 08.30 GMT

A recent study states that Covid-19 reinfections could pose additional risks to people’s long-term health – as compared to only getting Covid once – however some infectious disease experts in the US disagree that there is evidence showing repeat infections are more dangerous.

The issue of the impact of repeated infections is becoming a crucial one in the United States as the Covid-19 pandemic is now tailing off amid a widespread relaxation of any social distancing or restrictions, which has seen many people catch the virus two or more times.

A second or more Covid infection increases a person’s risk of death, hospitalization and various adverse health outcomes, including diabetes and neurological disorders, according to the study published in the Nature Medicine journal that looked at the healthcare database from the US Department of Veterans Affairs.

“Reinfection is consequential in the sense that if you get Covid again, even if you have had it before and even if you have been vaccinated, that still could put you in the hospital, that still in some cases, can result in death,” said Dr Ziyad Al-Aly, an author of the study who works as a clinical epidemiologist at Washington University and as chief of research at the Veteran Affairs St Louis Healthcare system.

But Dr Celine Gounder, an infectious disease epidemiologist and editor-at-large at Kaiser Health News, is among those who said that immunity from a first infection means that a subsequent infection poses a lower risk of such outcomes.

“There is nothing about a reinfection that is more dangerous than an original infection, and if anything, a reinfection is going to be lower risk because you have some immunity baseline at the time of reinfection,” said Gounder.

The debate over the risks of reinfections – which experts say are likely to continue – could determine what precautions people take against Covid and whether people worry unnecessarily at a time when the pandemic has already taken a toll on mental health.

The VA researchers decided to conduct the study because patients who had already been infected were coming to local clinics with this “air of invincibility about them”, Al-Aly said. “Some media actually started referring to these patients as ‘super immune’. ”

To determine if that was valid, the researchers compared health outcomes among more than 440,000 participants with no Covid reinfection with about 40,000 participants who had at least one reinfection. They found that the reinfection posed increased risk of mortality and adverse health outcomes during the acute phase and six months after infection.

As such, when people consider whether it’s worth taking precautions to protect themselves from reinfections, “the answer to that is a yes”, Al-Aly said.

But other infectious disease experts see potential problems with the study. For example, the VA patient population is mostly older and male.

“What might pop up in a database with a lot of sicker, older people won’t necessarily apply to younger, healthier people,” said John Moore, professor of microbiology and immunology at Weill Cornell Medical College.

More

Will Covid reinfections pose increased health risks? Experts aren’t sure | Coronavirus | 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.

Magnetic solution removes toxic "forever chemicals" from water in seconds

Michael Irving  January 22, 2023

Scientists in Australia have developed an intriguing new technique for removing toxic “forever chemicals” from water. Adding a solution to contaminated water coats the pollutants and makes them magnetic, so they can easily be attracted and isolated.

Per- and polyfluoroalkyl substances (PFAS) are a group of chemicals that have been in wide use around the world since the 1950s, thanks to their water- and oil-repelling properties. However, more recently PFAS chemicals have been linked to a concerning number of health problems, including increased risks of diabetes and liver cancer. Worse still, a recent study has found that their levels in rainwater almost everywhere on Earth exceed the EPA’s guidelines, and to cap it all off, these stable molecules are very hard to break down, earning them the nickname “forever chemicals.”

Now, researchers at the University of Queensland have developed a technique that could help remove PFAS chemicals from water. The team designed a solution called a magnetic fluorinated polymer sorbent which, when added to contaminated water, coats the PFAS molecules. This makes them magnetic, so then it’s a relatively simple process to use a magnet to attract the pollutants and separate them from the water.

In tests with small samples of PFAS-laden water, the team found that the technique could remove over 95% of most PFAS molecules, including over 99% of GenX – a particularly problematic chemical – within 30 seconds.

Plenty of teams have investigated ways to break down PFAS, usually involving catalysts triggered by UV light or heat. Others have made use of hydrogen or supercritical water.

But the researchers on the new study say their magnetic solution has a few advantages over existing PFAS removal techniques. The solution itself can be reused up to 10 times, it can work much faster than others, and doesn’t require any extra energy to trigger the reaction.

----The research was published in the journal Angewandte Chemie. The team describes the work in the video below.

Magnetic solution removes toxic "forever chemicals" from water in seconds (newatlas.com)

The inflated imitations of gold and silver, which after the rapture are thrown into the fire, all is exhausted and dissipated by the debt. All scrips and bonds are wiped out. At the fourth pillar dedicated to Saturn, split by earthquake and flood: vexing everyone, an urn of gold is found and then restored.

Nostradamus.

 

 

 

 

 

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