Friday, 31 March 2023

Dress Up Friday, Month, Quarter 2023

 Baltic Dry Index. 1403  -04          Brent Crude 79.08

Spot Gold 1980               US 2 Year Yield 4.10 +0.02

Coronavirus Cases 01/04/20 World 1,000,000

Deaths 53,103

Coronavirus Cases 31/03/23 World 683,779,273

Deaths 6,830,463

Nothing is so admirable in politics as a short memory.

John Kenneth Galbraith.

It is month-end and end of first quarter 2023. Despite the continuing banking crisis, it’s time to dress up the stock casinos and stock indexes once again.

The banksters and professional money manager sharks, quarterly bonuses depend on share prices forever moving higher. “Whatever it takes,” as they say at the ECB.

Look away from rising interest rates, inflation and events in the real global economy now.

 

Asia-Pacific markets climb after tech stocks led gains on Wall Street

UPDATED FRI, MAR 31 2023 12:06 AM EDT

Markets in the Asia-Pacific traded higher on Friday as technology stocks continued to see renewed interest and led gains on Wall Street, with some shaking off concerns of a further banking crisis.

Investors also looked ahead to the U.S. personal consumption expenditure price index, the Federal Reserve’s preferred measure of inflation, which is slated for release later in the day.

The Hang Seng index in Hong Kong rose 1.85%, leading gains in the region and the Hang Seng Tech index jumped 1.77%. In mainland China, the Shenzhen Component gained 0.2% and the Shanghai Composite inched up 0.14%

In Japan, the Nikkei 225 rose 0.97% and the Topix rose 1% as Tokyo’s inflation print continued to show lower levels from its recent peak of 4.3% seen in December. The S&P/ASX 200 in Australia rose 0.7%.

South Korea’s Kospi also rose 1.01% while the Kosdaq fell marginally. Hang Seng futures also pointed to a higher open at 20,563 against the index’s last close at 20,309.13.

Overnight in the U.S., weekly jobless claims rose by 7,000 to 198,000, adding to hopes that the Federal Reserve could slow down its tightening campaign on a cooling labor market.

The S&P 500 added 0.57%, and touched its highest level since March 7 mid-session. The Nasdaq Composite also rose and marked an increase of more than 4% for the month and the Dow Jones Industrial Average added 0.43%.

China’s March official manufacturing PMI reading beats expectations

China’s official manufacturing purchasing managers index for March was 51.9, data from the National Bureau of Statistics showed.

That’s slightly above expectations of 51.5 by analysts polled by Reuters, but lower than 52.6 seen in February.

Most components eased from February, while output, new orders and exports remained in expansion territory, government data showed.

Non-manufacturing PMI meanwhile was 58.2, higher than February’s reading of 56.3 alongside notable rises in activity in the construction sector.

Asia-Pacific markets climb after tech stocks led gains on Wall Street (cnbc.com)

Stock futures are flat Thursday evening: Live updates

UPDATED THU, MAR 30 2023 7:28 PM EDT

U.S. stock futures were flat on Thursday night.

Dow Jones Industrial Average futures added 14 points, or 0.04%. S&P 500 futures rose 0.09%, while Nasdaq 100 futures gained 0.05%.

The Dow gained more than 141 points or 0.43% during regular trading Thursday. The S&P 500 rose 0.57%, and the tech-heavy Nasdaq gained 0.73%. 

The three major averages are also on pace for a positive week. The Dow is up 1.93%, and the S&P 500 has a 2% gain. Both indexes are on track for their best weekly performance since January. The Nasdaq is up 1.6% for the week.

Thursday’s gains come after the number of weekly jobless claims reached 198,000, up 7,000 from the prior week. The cooldown in the labor market added to Wall Street’s optimism that the Fed will soon bring an end to its rate hike cycle. Semiconductors enjoyed a strong day, with AMD and Nvidia up more than 1%.

The recent rally is “helping to confirm the market’s perception that the problems that brought the market to a crisis of confidence could very well be contained,” said Quincy Krosby, chief global strategist for LPL Financial. 

“The semiconductors, [which] have come to be viewed as an important bellwether for global growth, delivered a strong performance,” Krosby continued.

However, she noted that the markets are not yet completely in the clear from an economic downturn. 

“Economic concerns enveloping recession fears haven’t vanished as the yield curve still represents a counter to the market’s climb higher,” Krosby added.

The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures index, is due to be released at 8:30 a.m. ET on Friday. Economists polled by Dow Jones expect that the core PCE, which excludes energy and food costs, gained 0.4% in February from the prior month and added 4.7% on an annualized basis.

Personal income data and consumer spending will also be issued Friday morning. The final March reading of the University of Michigan’s consumer sentiment index is due at 10 a.m. ET.

Several central bank officials are also scheduled to speak Friday, including Fed Governors Lisa Cook and Christopher Waller.

Stock market today: Live updates (cnbc.com)

Finally, in other news, more food price inflation seems likely in 2023. Buy now for Christmas 2023?

Virgin’s moon shot crashes back to Earth.

 

Macron to introduce water levy as France suffers worst drought in years

March 30, 2023

Emmanuel Macron has pledged to tax water usage in France to tackle a major drought, with the move coming amid a public uprising over pension reforms and the cost of living.

The move was announced in a 53-point plan after last summer’s devastating heatwave and record low rainfall this winter. On March 1, groundwater levels in France were 80 per cent lower than average.

Climate change had turned water into a “strategic issue for the nation”, said Mr Macron, who warned that the climate crisis would deprive France of 30-40 per cent of its available water by 2050.

Speaking in the Alpine town of Savines-le-Lac, on the shores of western Europe’s largest fresh water reservoir, the president unveiled the new water-saving measures as he sought to dismiss political and social unrest.

“There is contestation over a reform, but it doesn’t mean everything else should grind to a halt. We need to continue working,” he said as critics accused him of timing the water plan to divert attention from the anger. Around 200 protesters turned out, and there were two arrests.

----The president said France would impose “gradual and responsible tariffs” on water usage that would apply “to everyone”.

“The first cubic metres will be billed at a modest rate, close to cost price” but “beyond a certain level, the price per cubic metre will be higher”, he said, without providing further details.

But he denied that this would lead to higher water bills for the average French person, saying rates in France were at “middling” levels in Europe.

Mr Macron said he wanted 10 per cent of all water in France to be reused by 2030, up from the current one per cent, adding: “We want to reuse 300 million cubic metres – that is three Olympic swimming pools or 3,500 bottles of water – per French person per year.”

He pledged €180 million to plug water leaks, saying these were responsible the loss of one in every five litres of water in France. Much of the funds would go towards 170 problem areas where water loss from leaks was at 50 per cent.

Nuclear power plants will have to adapt to reduce their reliance on water to cool down, he said. Some 58 per cent of the water used in France goes to farming, 26 per cent to drinkable water, 12 per cent to cool down nuclear reactors and four per cent to industrial uses.

Despite their huge water consumption, French farmers would not be asked to reduce their overall water consumption but would need to share the volumes out over larger areas in future “due to climate change”, said Marc Fesneau, the agriculture minister.

The proposals will also create a new app to inform residents if water usage in their area has reached a critical level, on the model of the Ecowatt app for electricity use that was launched to encourage savings this winter.

Macron to introduce water levy as France suffers worst drought in years (msn.com)

Sugar Getting Even Pricier Poses Threat to Food Inflation

Decline in Indian exports is tightening world supplies

More sugar cane output is being used to make biofuel

By Mumbi Gitau and Pratik Parija

Updated on

More Expensive Sugar, With Lower India Exports, Is New Threat to Food Inflation - Bloomber


Virgin Orbit fails to secure funding, will cease operations and lay off nearly entire workforce

Virgin Orbit is ceasing operations “for the foreseeable future” after failing to secure a funding lifeline, CEO Dan Hart told employees during an all-hands meeting Thursday afternoon. The company will lay off nearly all of its workforce.

“Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company,” Hart said, according to audio of the 5 p.m. ET meeting obtained by CNBC.

“We have no choice but to implement immediate, dramatic and extremely painful changes,” Hart said, audibly choking up on the call. He added this would be “probably the hardest all-hands that we’ve ever done in my life.”

The company will eliminate all but 100 positions, amounting to about 90% of the workforce, Hart said, noting the layoffs will affect every team and department. In a securities filing, the company said the layoffs constituted 675 positions, or approximately 85%.

“This company, this team — all of you — mean a hell of a lot to me. And I have not, and will not, stop supporting you, whether you’re here on the journey or if you’re elsewhere,” Hart said.

Virgin Orbit will “provide a severance package for every departing” employee, Hart said, with a cash payment, extension of benefits, and support in finding a new position — with a “direct pipeline” set up with sister company Virgin Galactic for hiring.

More

Virgin Orbit funding plans fail, will stop operations, conduct layoffs (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.

Ford hikes F-150 Lightning's price again to battle high costs

March 30 (Reuters) - Ford Motor Co (F.N) has raised the base price of its popular F-150 Lightning electric pickup truck again, the automaker's website showed on Thursday, the latest in a series of price hikes aimed at offsetting high costs.

Shares of Ford were up 2% in afternoon trade.

The base variant of Ford's electric F-150 truck now starts at $59,974, excluding shipping and taxes, up nearly 50% from its starting price when launched last year.

The Detroit automaker resumed production of the F-150 Lightning earlier this month after recalling 18 electric trucks due to a battery-cell manufacturing defect.

Ford's hike comes after EV maker Tesla Inc (TSLA.O) ignited a price war this year by aggressively trimming prices.

A week earlier, Ford said its electric-vehicle business unit was expected to lose $3 billion this year, but remained on track to achieve a pretax margin of 8% by late 2026.

The company was not immediately available for further comment on the price increase, which was first reported by Automotive News on Thursday.

Ford hikes F-150 Lightning's price again to battle high costs | Reuters

Supply shortages threaten U.S. infrastructure and war efforts

LOS ANGELES, March 29 (Reuters) - Manufacturers of everything from pickup trucks to homes are still grappling with tight supplies of microchips and cement - shortages that could translate into delays and higher costs for federal efforts to arm Ukraine against Russian aggression and rebuild U.S. crumbling infrastructure and manufacturing.

The supply chain woes that sent costs soaring and spurred shortages of everything from toilet paper to passenger cars are easing for retail-focused industries, but remain stubbornly persistent in important growth sectors like autos, machinery, defense and non-residential construction, experts said.

"For sectors where demand is still strong, we are still seeing issues of materials shortages, and these problems will take additional time to resolve," said Jason Miller, associate professor of logistics at Michigan State University's business school.

"One of the big issues as we're trying to ramp up the military industrial base is having enough electronic components," Miller said.

Companies that make war weapons like shoulder-fired Javelin and Stinger missiles are awaiting U.S. funding before starting new production for Ukraine. When the defense industry gets that greenlight, their scramble to source semiconductors and other hard-to-find electronic components could usher in a new wave of supply chain snarls that disrupt production and drive up costs.

"Any general shortage in semiconductors will affect defense," said Brad Martin, director of Rand Corp's National Security Supply Chain Institute.

The problem has eased in some areas. Supplies of semiconductors for personal computers improved after kids went back to the classroom and parents returned to their offices - crushing sales of new machines.

On the other hand, ongoing demand for auto and farm equipment has kept stocks of microchips that act as electronic brains in that machinery tight.

Farm and construction equipment maker Caterpillar Inc (CAT.N) is still competing with car makers to get its hands on limited supplies, Caterpillar CEO Jim Umpleby said at a March 14 conference in Las Vegas.

"It's gotten a bit better, but it's still not what it was pre-pandemic," said Umpleby.

General Motors (GM.N) last week reopened its Silao, Mexico, plant that turns out Chevrolet Silverados and GMC Sierras after halting production for more than a week due to hiccups in semiconductor availability that the company is working to resolve.

More

Supply shortages threaten U.S. infrastructure and war efforts | Reuters

Covid-19 Corner

This section will continue until it becomes unneeded.

Nothing, of course, to do with soaring adverse reaction cases, continuing excess deaths across Europe and America, plus lawyers across GB and Europe starting to figure out ways to get around big pharma’s immunity from vaccine harm clauses, then.

In the UK, some very clever lawyers seem to think that the Consumers Protection Act of 1987 trumps the vaccine legal immunity given to big pharma, since the product, i.e. the vaccine, was defective, not up to the standard the consumer was led to believe and entitled to expect.

WHO experts revise Covid-19 vaccine advice, say healthy kids and teens low risk

March 29, 2023

The World Health Organization’s vaccine experts have revised their global Covid-19 vaccination recommendations, and healthy kids and teenagers considered low priority may not need to get a shot.

The updated roadmap is designed to prioritize Covid-19 vaccines for those at greatest risk of death and severe disease, according to the World Health Organization’s Strategic Advisory Group of Experts on Immunization (SAGE).

It is being issued to reflect the Omicron stage of the pandemic and because of countries’ high population immunity levels due to vaccines and infection, the group announced following a recent meeting.

The new streamlined recommendations focus on high-, medium- and low-risk groups.

SAGE recommends additional booster doses of Covid-19 vaccine for high-priority groups such as older people, immunocompromised people of all ages, front-line health workers and pregnant people six or 12 months after their last booster dose.

For those at medium risk, the group recommends primary vaccinations and first booster doses but does not recommend routine additional boosters. This group includes children and adolescents with health risks and healthy adults under the age of about 60.

For healthy kids six months to 17 years old, the group said countries should consider vaccinating based on factors such as disease burden and cost-effectiveness.

“The public health impact of vaccinating healthy children and adolescents is comparatively much lower than the established benefits of traditional essential vaccines for children – such as the rotavirus, measles, and pneumococcal conjugate vaccines,” SAGE said in a press release.

The group said its vaccine guidance is based on current epidemiological conditions and could change if the pandemic evolves.

It also comes as countries are making their own choices about vaccine recommendations based on their vaccine supply and progress.

US officials, for example, are weighing whether to offer people who are at high risk of severe Covid-19 the chance to get another bivalent booster. The United Kingdom and Canada have already begun allowing certain people to get another bivalent booster.

Experts also acknowledged competing health priorities when it comes to vaccinations.

More

WHO experts revise Covid-19 vaccine advice, say healthy kids and teens low risk (msn.com)

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.

Well if they say so, I suppose, but it sounds like a coming pitch for a taxpayer subsidy to me.

Recycling Broken Wind Turbine Parts Could Create 20,000 UK Jobs and Multi-billion-pound Supply Chain

Mar 29 2023

Tens of billions of pounds could be generated for the UK economy from the re-use, refurbishment and re-engineering of broken wind turbine parts, according to a new coalition set-up to drive the creation of a circular supply chain for renewables in the UK.

​​​​​​​Building the capabilities to refurbish wind turbine parts in the UK could also generate more than 20,000 full-time equivalent jobs by 2035, and prevent more than 800,000 tonnes of parts from being scrapped.

The group, which so far comprises Scottish-headquartered energy company SSE Renewables, the University of Strathclyde, the National Manufacturing Institute Scotland (NMIS) and Renewable Parts Ltd, made the statement as they launched CWIC, the new Coalition for Wind Industry Circularity today (March 28).

Responding, Nick Sharpe, Director of Communications and Strategy at Scottish Renewables, said:

“As we approach 2030, a significant number of our wind farms will reach the end of their 20 to 25 year lifespans.

“We know that 80% of a modern wind turbine is recyclable so there are clear opportunities for wind farm operators to harness a circular economy by increasing the reuse of component parts from decommissioned projects.

“The formation of the Coalition for Wind Industry Circularity sends a clear signal that the wind industry is committed to delivering a renewable energy circular economy for Scotland, and we look forward to working with more of our members as they join the Coalition and this initiative gathers pace.”

Source: https://www.sserenewables.com/

Recycling Broken Wind Turbine Parts Could Create 20,000 UK Jobs and Multi-billion-pound Supply Chain (azocleantech.com)

Another weekend and hopefully a weekend without another bankster crisis.  However, the gap between our stock casinos, and our increasingly fragile developed economies is widening again. Q2 23 looks to be interesting, to say the least. More fallout from rising interest rates, high food price inflation and the soaring social discontent it generates, is all to likely to bring on trouble with a big T. Have a great weekend everyone.

There can be few fields of human endeavour in which history counts for so little as in the world of finance. Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present.

John Kenneth Galbraith.

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