Wednesday, 15 February 2023

US Inflation. WW3? Covid Euthanasia?

Baltic Dry Index. 563 -53                Brent Crude 84.73

Spot Gold 1846                  US 2 Year Yield 4.60 +0.08

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

Deaths 53,103

Coronavirus Cases 15/02/23 World 677,904,307

Deaths 6,784,365

“This is why we are now in an endless war, in a confrontation whose outcome must be the collapse of one or the other.”

Emmanuel Todd, one of France’s leading intellectuals, during an interview with the Le Figaro newspaper.

French Historian: World War III Has Already Begun | ZeroHedge

In the stock casinos, yesterday’s US inflation figures came in slightly worse than expected but not enough to really disturb the punters.

China’s slow economic rebound, the crashing Baltic Dry [shipping] Index, another warning from the IMF and the first effects from the EUSSR boycott of Russian refined oil products, all spell economic trouble ahead.

But today’s big LIR story lies in the Covid-19 section. Did the UK medical profession, the National Health Service, start to  euthanise Covid patients early in the pandemic?

 

Inflation rose 0.5% in January, more than expected and up 6.4% from a year ago

Inflation turned higher to start 2023, as rising shelter, gas and fuel prices took their toll on consumers, the Labor Department reported Tuesday.

The consumer price index, which measures a broad basket of common goods and services, rose 0.5% in January, which translated to an annual gain of 6.4%. Economists surveyed by Dow Jones had been looking for respective increases of 0.4% and 6.2%.

Excluding volatile food and energy, the core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

----Rising shelter costs accounted for about half the monthly increase, the Bureau of Labor Statistics said in the report. The component accounts for more than one-third of the index and rose 0.7% on the month and was up 7.9% from a year ago. The CPI had risen 0.1% in December.

Energy also was a significant contributor, up 2% and 8.7%, respectively, while food costs rose 0.5% and 10.1%, respectively.

Rising prices meant a loss in real pay for workers. Average hourly earnings fell 0.2% for the month and were down 1.8% from a year ago, according to a separate BLS report that adjusts wages for inflation.

While price increases had been abating in recent months, January’s data shows inflation is still a force in a U.S. economy in danger of slipping into recession this year.

That has come despite Federal Reserve efforts to quell the problem. The central bank has hiked its benchmark interest rate eight times since March 2022 as inflation rose to its highest level in 41 years last summer.

----The next big data point will be retail sales, which hits Wednesday morning at 8:30 a.m. ET. Economists surveyed by Dow Jones expect the figure, which is not adjusted for inflation, will show that sales rose 1.9% in January from the prior month.

“The strength of core inflation suggests that the Fed has a lot more work to do to bring inflation back to 2%,” said Maria Vassalou, co-chief investment officer of multi-asset solutions at Goldman Sachs Asset Management. “If retail sales also show strength tomorrow, the Fed may have to increase their funds rate target to 5.5% in order to tame inflation.”

There’s widespread belief that the economy could tip into at least a shallow recession later this year or early in 2023. However, the latest tracking data from the Atlanta Fed puts expected GDP growth at 2.2% for the first quarter, following a relatively strong finish for 2022.

A New York Fed barometer which uses the spread between 3-month and 10-year Treasury yields to estimate the probability of a recession puts the chances at 57.1% over the next 12 months, the highest level since the early 1980s.

More

Consumer price index January 2023: (cnbc.com)

Asia markets fall after U.S. inflation comes in hotter than expected

UPDATED WED, FEB 15 202312:27 AM EST

Asia Pacific markets traded lower on Wednesday after the release of U.S. inflation data that came in hotter-than-expected. It further raised expectations that the U.S. Federal Reserve will continue to raise interest rates to curb inflation.

In Hong Kong, the Hang Seng index fell 1.38%, and the Hang Seng Tech index slid 0.61%. In mainland China, the Shenzhen Component fell 0.34% and the Shanghai Composite shed 0.26%.

In Australia, the S&P/ASX 200 fell 1.06% to close at 7352.2, as financials saw sharp losses after Reserve Bank of Australia’s governor Philip Lowe reiterated that inflation remains “too high.”

Japan’s Nikkei 225 traded 0.47% lower and the Topix dropped 0.32%, while the Kospi in South Korea fell 1.41%, and the Kosdaq slid 1.16% as investors digested the nation’s unemployment rate.

The U.S. consumer price index, which measures a broad basket of common goods and services, rose 0.5% in January, which translated to an annual gain of 6.4%.Economists surveyed by Dow Jones had been looking for respective increases of 0.4% and 6.2%.

Markets on Wall Street closed mixed, with the Dow Jones Industrial Average and  S&P 500 closing lower. However, the Nasdaq Composite ended the day higher, boosted by technology stocks, including Tesla and Nvidia.

Asia markets fall after U.S. inflation comes in hotter than expected (cnbc.com)

Stock futures slip on Tuesday night as investors process inflation data: Live updates

UPDATED TUE, FEB 14 2023 7:31 PM EST

U.S. stock futures slipped on Tuesday night following the release of January’s hotter-than-anticipated consumer price index.

Dow Jones Industrial Average futures declined by 60 points or 0.18%. S&P 500 and Nasdaq 100 futures fell by 0.24% and 0.28%, respectively. 

The Dow fell during the trading session and closed lower by more than 156 points. The S&P 500 remained relatively flat, dropping 0.03%, while the tech-heavy Nasdaq Composite shook off earlier losses to close 0.57% higher.

Inflation data for January came slightly above economists’ estimates, indicating a potentially longer path in the Federal Reserve’s fight against rising prices. The consumer price index increased by 0.5% for the month and 6.4% from the prior year, compared to estimates of 0.4% monthly and 6.2% annually, according to Dow Jones’ survey of economists.

Ed Yardeni, president of Yardeni Research, noted that while inflation remains above the Fed’s target rate of 2%, the higher-than-expected numbers weren’t entirely surprising. 

“The inflation came in with expectations, and I think that’s why the market took it in stride,” he said on CNBC’s “Closing Bell: Overtime.” Commenting on the monthly uptick in inflation data, Yardeni added, “I think we’re going to have some bumps along the road. But all in all, I think we are certainly seeing strong disinflation.” 

However, he added that despite anticipating a soft landing for the economy, he doesn’t expect the Fed to cut interest rates this year. 

More

Stock market today: Live updates (cnbc.com)

In other news, China’s economic rebound is off to a unexpectedly slow start.

 

China’s economic recovery is off to a slow start

BEIJING — China’s economic recovery is off to a modest start.

Migrant workers have mostly returned to work after China’s biggest holiday of the year, and children went back to school this week.

But preliminary data indicate overall growth isn’t roaring back on all cylinders yet, despite mainland China ending its Covid controls in early December.

For example, official loan data for January showed year-on-year growth in loans to businesses, but a sharp drop in that to households.

“The mixed data send a clear message that markets should not be too bullish about growth this year,” Nomura’s chief China Economist Ting Lu said in a report Monday.

“This pattern has rich implications for different asset classes and commodity types, so closely tracking these high frequency data is warranted,” he said.

Road and subway traffic in cities is back above pre-pandemic levels in 2019, the Nomura report said, citing mid-February data. Turnover in freight transport is still down from a year ago, the report said.

It pointed out that new home sales remained below last year’s levels, mostly dragged down by falling sales in mid-sized cities, and weighing on construction activity.

Sluggish demand for mortgages showed up in a slightly steeper drop in medium- and long-term household loans than short-term ones.

The “unemployment rate is still high which keeps household confidence weak,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note about January’s loan data. “I’d expect household confidence to improve as well in the coming months, but it will likely be a gradual process.”

China’s National Bureau of Statistics does not break out retail sales, industrial production or fixed asset investment data for January due to distortions from the Lunar New Year. The holiday’s dates on the Gregorian calendar vary each year.

However, the bureau released inflation data for January, which showed tepid demand as consumer prices went up by 2.1% from a year ago — slightly less than what analysts polled by Reuters had expected. Excluding food and energy, the so-called core consumer price index rose by 1% in January, recovering to the same pace as June 2022.

The producer price index that measures input costs for factories dropped by 0.8% in January from a year ago, more than the 0.5% decline forecast by a Reuters’ poll.

More

China's economic recovery is off to a slow start (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.

Is this why global central banks bought a record amount of gold last year?

 We have gold because we cannot trust governments.

Herbert Hoover.

‘Think of the unthinkable’: IMF chief warns world is a very different place after crises like Covid

PUBLISHED TUE, FEB 14 2023 4:40 AM EST

The Managing Director of the IMF warned that we need to “think of the unthinkable,” as we live in “a more shock-prone world” impacted by the Covid-19 pandemic, Russia’s invasion of Ukraine and the recent earthquake across Syria and Turkey.

“We all have to change our mindset to be much more agile and much more oriented towards building resilience at all levels, so we can handle the shocks better,” Kristalina Georgieva said Tuesday, during a World Government Summit panel hosted by CNBC’s Hadley Gamble.

“What we are very concerned [about] is the unexpected,” Georgieva said.

The IMF chief signaled the need for resilience in our planet, in societies that must allow equal opportunities, and in people, who must benefit from education, health and good social protection.

“We are not where we should be in being good stewards of our planet for our children,” Georgieva added.

In a previous interview with CNBC, Georgieva said that more private investments were needed to help developing countries meet their climate change goals, which cannot be sufficiently covered by public aid and local government funding.

Ukrainians are “fighting for the right of every nation to exist”

On the topic of Russia’s invasion of Ukraine, Georgieva said the world lost “a very precious peace dividend,” prompting nations to spend more on defence and less on domestic concerns, such as healthcare and infrastructure.

“We cannot take peace for granted anymore,” she said.

Georgieva praised the international response to the war as “quite remarkable” and stressed the global implications of the conflict:

“Everyone got some sense of sympathy for a problem that today is Ukraine’s problem, but tomorrow can be a problem for many other countries – that you can be invaded by your stronger neighbor,” Georgieva said. 

“In Ukraine, people strongly believe they are fighting not just for themselves, they are fighting for the right of every nation to exist and run its own affairs,” she added.

Georgieva said that the IMF has to play a “stabilizing role” in the war in Ukraine, and that the country needs between $40 billion and $48 billion to function this year.

The IMF chief previously described the invasion of Ukraine as the “single most important negative factor” for the economy in 2022.

The global economy is set to grow 2.9% this year, according to forecasts by the financial agency.

'Think of the unthinkable': IMF chief warns world is a very different place after crises like Covid (cnbc.com)

Cost of Shipping Gasoline Jumps 405% After Russia Sanctions

·         Tankers earmarked for Russian trading reduces supply elsewhere

·         Surge in cargoes to Europe before imports ban curb capacity

10 February 2023 at 12:09 GMTUpdated on10 February 2023 at 17:18 GMT

Oil Price, Russia Sanctions: The Cost of Shipping Gasoline Is Soaring - Bloomberg

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.

Today, did the UK medical profession euthanise Covid patients early in the pandemic?  Approx. 8 minutes, short version. Approx 20 minutes, long version.

Deaths in the pandemic

Deaths in the pandemic - YouTube

Pandemic unnecessary deaths, the data

Pandemic unnecessary deaths, the data - YouTube

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.

Today, something a little different.

New compound inhibits influenza virus replication

Date:  February 9, 2023

Source:  University of Bonn

Summary:  Viruses use the molecular repertoire of the host cell to replicate. Researchers want to exploit this for the treatment of influenza. The team identified a compound that inhibits the body's own methyltransferase MTr1, thereby limiting the replication of influenza viruses. The compound proved effective in lung tissue preparations and mouse studies and showed synergistic effects with already approved influenza drugs.

Viruses use the molecular repertoire of the host cell to replicate. Researchers from the Cluster of Excellence ImmunoSensation2 at the University of Bonn, together with Japanese researchers, want to exploit this for the treatment of influenza. The team led by Prof. Hiroki Kato from the Institute of Cardiovascular Immunology at the University Hospital Bonn has identified a compound that inhibits the body's own methyltransferase MTr1, thereby limiting the replication of influenza viruses. The compound proved effective in lung tissue preparations and mouse studies and showed synergistic effects with already approved influenza drugs. The study is now published in the journal Science.

To replicate, viruses need a host cell. There they introduce their genetic information in the form of the nucleic acids DNA or RNA. These molecular blueprints are used in the host cell to produce new viruses. In order to distinguish foreign from its own nucleic acids, the cell uses a kind of labeling system. Own RNA, for example, is tagged with a molecular cap that identifies it as non-hazardous. This enables the immune system to react specifically to threats.

The stolen cap

The molecular cap is a methylated nucleoside: A small molecule attached to the end of the RNA chain. Tagged in this way, the RNA does not trigger an immune response. However, if there is RNA in the cell that lacks the cap structure, it is recognized by the immune receptor RIG-I, and the immune system is alerted. To escape this, influenza viruses have developed a special mechanism. They steal the molecular cap from cellular RNA molecules and transfer it to their own RNA. This process is called cap-snatching.

More

New compound inhibits influenza virus replication -- ScienceDaily

Gold is money. Everything else is credit.

 J. P. Morgan. 

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