Baltic Dry Index. 1295 -53 Brent Crude 78.33
Spot Gold 1958 US 2 Year Yield 4.31 +0.05
Coronavirus
Cases 01/04/20 World 1,000,000
Deaths 53,103
Coronavirus Cases 25/05/23 World 689,199,205
Deaths 6,882,035
Everybody was saying we must have more leisure. Now they are complaining they are unemployed.
Prince Philip.
It is getting very late for team Biden to cut a deal with the US House Republicans, to avoid a financial crash in early to mid June.
The stock casinos are still betting that a compromise debt ceiling raise deal will be done at the last minute, but are getting increasingly nervous that team Biden might over play his weak hand that gets weaker with each passing day.
While no one believes Treasury Secretary Yellen’s scaremongering over June one, at some point in June incoming taxes and duties will be insufficient to meet all US federal government obligations.
When that happens President Biden and Treasury Secretary Yellen must decide who gets paid, who gets delayed and who gets unpaid.
Team Biden-Yellen are elderly, to say the least and perhaps still not fully aware of just how weak their hand is. Waiting for something to turn up, or the House Republicans to lose their nerve, is not a rational policy and risks a humiliating climb down or financial calamity in June.
Someone in JP Morgan needs to get on the
phone to Washington and fast. If calamity
hits in June, how many more banks can JP Morgan “rescue” in a matter of days?
Dow futures
slip as Fitch places United States’ AAA rating on negative watch: Live updates
UPDATED WED, MAY 24 2023 7:35 PM
EDT
Dow futures slipped Wednesday night after Fitch
Ratings placed the United States’ AAA rating on a negative rating watch.
Meanwhile, Nasdaq 100 futures rallied after a strong earnings beat from Nvidia.
Dow Jones Industrial Average
futures fell 60 points, or 0.18%. Meanwhile, Nasdaq 100 futures jumped 1.4%,
and S&P 500 futures gained 0.45%.
Fitch Ratings put the U.S.′ AAA
long-term foreign-currency issuer default rating on
a negative watch. The rating agency said the ongoing debt
ceiling negotiations have raised the risks that the government
could miss payments on some of its obligations. However, Fitch said it still
expects a resolution before the X-date.
Nvidia shares
surged 25% in extended trading after the artificial intelligence beneficiary gave
stronger-than-expected revenue guidance for its fiscal second
quarter, while also reporting beats on the top and bottom line in the previous
quarter.
On the other hand, Snowflake shares
tumbled 12% after hours. The cloud computing company gave weaker-than-expected product
revenue guidance for the fiscal second quarter.
Those moves follow a down day for the major
averages, with the Dow Jones Industrial
Average on
Wednesday posting a fourth
straight day of losses. The 30-stock index dropped
255.59 points, or 0.77%. The S&P 500 ended
the day lower by 0.73%, while the Nasdaq Composite fell
0.61%.
Debt ceiling negotiations
continued to weigh on the major averages. The talks hit a hurdle earlier
Wednesday. Later, House Speaker Kevin McCarthy indicated negotiations were making
progress.
“We play this political game
leading up and into the limit,” Atlas Merchant Capital CEO Bob Diamond said
Wednesday on CNBC’s “Closing
Bell: Overtime.” “I think there’s no question that it would be a
terrible, terrible, terrible decision to default for the dollar, for U.S.
Treasurys, for our brand and reputation. I think the chances of that happening
are extremely light.”
Meanwhile, minutes
released Wednesday from the Federal Reserve’s latest meeting suggested
central bank leaders were uncertain how to proceed with their rate hiking
campaign.
In corporate earnings, retailers Best Buy, Dollar Tree and Ralph Lauren will
report Thursday before the open.
Traders can expect the second
reading on gross domestic product in the first quarter before the open on
Thursday, as well as the latest weekly jobless claims data.
April pending home sales data is
also on deck after the open. Economists polled by Dow Jones expect a rise of
0.8%, up from the decline of 5.2% the prior month.
Stock
market today: Live updates (cnbc.com)
Asian
stocks slide to two-month low on debt ceiling jitters
May 25, 20235:30 AM GMT+1
SINGAPORE, May 25 (Reuters) - Asian
shares stumbled to a two-month low on Thursday, and the U.S. dollar rose as the
impasse in negotiations to raise the U.S. debt ceiling undermined risky assets
on worries about the hit to the global economy if the U.S. government defaults.
MSCI's broadest index of Asia-Pacific
shares outside Japan (.MIAPJ0000PUS) fell 0.84% to 503.93,
the lowest since March 21, and was on track for second straight month of
losses.
China shares (.SSEC) fell
0.53% while Hong Kong's Hang Seng index tumbled 2% to their weakest in 2023.
The drop in these two markets weighed on MSCI's Asia ex-Japan index, whose top
10 constituents include Tencent Holdings (0700.HK), Alibaba Group Holding (9988.HK), AIA Group (1299.HK) and Meituan (3690.HK).
Tokyo's Nikkei remained an outlier in
the region and was up 0.5%.
Negotiators for Democratic President
Joe Biden and top congressional Republican Kevin McCarthy held what both sides
called productive talks on Wednesday as they
race to reach a deal to raise the debt ceiling.
But with no resolution in sight traders
remained wary of a possible and catastrophic default with U.S. Treasury
Secretary Janet Yellen maintaining early June as a debt ceiling default
deadline.
"There's a beginning of a sense
that maybe this time is a little bit different," said Rob Carnell, ING's
regional head of research, Asia-Pacific.
"Despite the comments that
progress keeps being made, you just wonder, McCarthy gets a deal (and) whether
even his own party will support it," he said. "So that's a
concern."
More
Asian
stocks slide to two-month low on debt ceiling jitters | Reuters
Debt ceiling
talks make progress, but House will leave town with no deal
WASHINGTON — House Speaker Kevin McCarthy said
Wednesday that negotiations over raising the U.S. debt limit were progressing
toward a deal despite disagreements over spending, with only eight days before
the government could face an unprecedented default.
That urgency became more apparent
later Wednesday. Fitch Ratings, one of the big three ratings agencies, placed
the United States’ triple-A status on “rating
watch negative.”
Fitch said it still thinks there will be a resolution to the
situation, but added, “The brinkmanship over the debt ceiling, failure of the
U.S. authorities to meaningfully tackle medium-term fiscal challenges that will
lead to rising budget deficits and a growing debt burden signal downside risks
to U.S. creditworthiness.”
The warning came after McCarthy projected hope
that negotiators would reach a deal in time to avoid default.
“I wouldn’t scare the markets in
any shape or form,” McCarthy said on Fox Business after negotiations at the
White House ended for the day.
“We will come to an agreement
worthy of the American public and there should not be any fear,” he added.
“Money’s coming in [to the Treasury] every day.”
But McCarthy’s optimism stood in
contrast to guidance given to members of the House an hour later, as
representatives were informed they would not be required to remain in
Washington over the weekend to vote on a debt ceiling deal.
Instead, Rep. Steve Scalise, R-La.,
announced on the House floor that the chamber’s weeklong Memorial Day recess
would begin Thursday, as planned.
“If some new agreement is reached
between President [Joe] Biden and Speaker McCarthy, members will receive 24
hours notice in the event we need to return to Washington for any additional
votes, either over the weekend or next week,” said Scalise.
The decision to let members fly
home for the week is a tacit acknowledgment by House leadership that a deal to
raise the debt ceiling does not appear to be imminent.
The parties face a June 1 deadline
at which point the country will face significant risk that it won’t to be able
to pay its bills, according to Treasury Secretary Janet Yellen.
Yellen said Wednesday that she was
already seeing “some stress in financial markets,” driven by fears that the
U.S. could stumble into a first-ever debt default.
More
Debt
ceiling negotiations updates between Biden, McCarthy (cnbc.com)
Debt-Limit Talks
Stall as Time Runs Short to Avert US Default
Wed, May 24, 2023 at 3:35 PM GMT+1
(Bloomberg) -- Debt limit talks in
Washington have hit a fresh impasse with negotiators far apart on key issues,
especially the spending cuts demanded by Republicans, as time runs short to
avert a historic US default.
Speaker Kevin
McCarthy said he had spoken to White House negotiators early Wednesday and that
discussions would continue. Treasury Secretary Janet Yellen also told a Wall
Street Journal forum Wednesday morning that the two sides are still trying to
reach a deal.
House
Republicans have escalated their accusations that Biden lacks urgency in
negotiations, while a Democratic aide called McCarthy unwilling to compromise
across a wide spectrum of disputed points, threatening the legislative
prospects of a deal.
Republican
negotiator Representative Garret Graves said in an interview there was no
meeting set and not much progress was being made. But he did not rule out a
deal coming together.
“We’re just
going to keep working,” he said.
It is not
unusual for Congress to strike budget deals at the last minute when the
pressure becomes great enough to force negotiators to make painful choices.
Yellen said
Wednesday that the world is just seeing the beginnings of the potential market
stress if the debt crisis continues.
US stocks are
showing increasing signs of concern over the standoff, with the S&P 500
index down 0.8% in early trading Wednesday, after a 1.1% slump on Tuesday. In
the Treasuries market, investors are demanding ever-higher premiums on bills
that mature when the government is seen most at risk of default. Rates on
securities due June 1 and June 6 surpassed 6%.
More
Debt-Limit
Talks Stall as Time Runs Short to Avert US Default (yahoo.com)
Default on U.S. Debt Risks ‘Permanently’ Denting Nation’s
Credit Rating
May 24, 2023
If
the U.S. government defaults on its debt even for just a few hours next week,
it could have long-lasting consequences for the nation’s future. Three major
ratings companies — S&P Global Ratings, Moody’s and Fitch Ratings — play a
big role in how damaging those consequences can be.
Because the financial fallout of a default would be severe, the agencies expect lawmakers to
come to an agreement before the government runs out of cash to pay its
bills, which could happen as early as
next month. But if the government
ends up missing a debt payment, all three companies have vowed to lower the
rating of the United States as a borrower, and they may be reluctant to restore
it to its previous level, even if a deal is reached soon after the default.
The
United States has never deliberately reneged on its debt in the modern era, but
even a brief default would alter the perception of debt-ceiling brinkmanship as
political theater and turn it into a real risk to the creditworthiness of the
government, Moody’s has warned.
“Our
view is that we would need to reflect that permanently in the rating,” said
William Foster, the lead analyst for the United States at the rating agency.
The agency has said that if the Treasury Department misses one interest
payment, its credit rating would be lowered by a notch. For the United States
to regain its previous top rating, according to Mr. Foster, lawmakers would
have to significantly alter the debt limit or remove it entirely.
Credit
ratings, which range from D or C (for S&P and Moody’s scales) to AAA or Aaa
for the most pristine borrower, are embedded in financial contracts around the
world, at times dictating the quality of debt that pension funds and other
investors can hold or the types of assets that can serve as collateral to
secure transactions. Ratings also signal the soundness of a nation’s finances,
with lower-rated countries tending to face higher borrowing costs.
More
Default on U.S. Debt Risks ‘Permanently’ Denting Nation’s Credit Rating – DNyuz
Finally, will the ECB be the first major central bank to issue a Central Bank Digital Currency?
Ready for a digital euro? At 25, European Central
Bank preps for future of money
May 24, 2023
FRANKFURT, Germany (AP) — As it marks its 25th anniversary
Wednesday, the European Central Bank is readying a proposed design for a
digital version of the euro, responding to pressure from developing technology
that could change how money is used over the bank’s next decades.
ECB President Christine Lagarde says a digital euro could
offer a way for people to buy things without depending on payment service
providers controlled by non-European companies. Those could include Mastercard,
Visa, Apple Pay and Google Pay.
The European Union’s executive Commission is expected to
come up with proposed legislation on the idea in the next several weeks, ECB
officials say, while the central bank will publish a detailed proposal for the
design of a digital currency in October.
Central banks worldwide, including the U.S. Federal
Reserve, are cautiously studying digital currencies as cash increasingly gives way to electronic
payments. Some smaller economies such as Nigeria, the Bahamas and Jamaica already have introduced digital currencies, while China is holding trial runs.
Central banks also are responding to the emergence
of cryptocurrencies, which have
raised concerns that someday people could turn to rival forms of digital money
that would undercut national currencies.
Digital currency backed by a central bank would be a safe
and stable means of payment — unlike voltatile crypto, whose price crashes over
the past year and collapses of exchanges like FTX have spurred calls for regulation. The EU became a
global leader by giving final approval last week to rules for the freewheeling crypto sector.
As Europe considers its own central bank-based digital
currency, the biggest question is: How would it improve on what’s already
available for consumers?
“Nobody is able to answer this question, not even the
ECB,” said Philipp Sandner, head of the Blockchain Center at the Frankfurt
School of Finance & Management.
“As
the user I ask myself, ‘What is the benefit, why do we need another solution?’”
he said.
More
Ready for a digital euro? At 25, European Central Bank preps for future of money | AP News
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.
[UK] Inflation falls
to lowest level in over a year
May
24, 2023
Inflation fell
to 8.7 per cent in April - down from 10.1 per in the previous month, official
figures show.
The
Office for National Statistics said the drop was driven by a fall in sky-high
gas and electricity costs.
The
fall in inflation, or rising prices, will be welcome news for households across
the country struggling with the cost of living squeeze.
Inflation
is now at its lowest level since March last year but still above the 8.2 per
cent economists predicted it would drop to back in April.
Food
price inflation, meanwhile, remains near 20 per cent.
ONS
chief economist Grant Fitzner said: "The rate of inflation fell notably as
the large energy price rises seen last year were not repeated this April, but
was offset partially by increases in the cost of second-hand cars and
cigarettes.
"However,
prices in general remain substantially higher than they were this time last
year, with annual food price inflation near historic highs."
----
Chancellor Jeremy Hunt said: "Although it is positive that it is now in
single digits, food prices are still rising too fast.
"So as
well as helping families with around £3,000 of cost-of-living support this year
and last, we must stick resolutely to the plan to get inflation down."
The figures
showed food CPI inflation at 19.3 per cent, down only slightly on March’s
eye-watering 19.6 per cent.
Inflation falls to lowest level in over a year (msn.com)
Corporate bankruptcies are creeping up as pressures in the economy grow
May 23, 2023
Corporate
bankruptcies are edging back up after a two-year lull as pressures in the
economy grow, a situation sure to worsen if the nation’s political leaders fail
to reach a deal to prevent the government from defaulting on its debt.
The increase
is most visible among large companies, where there were 236 bankruptcy filings
in the first four months of this year, more than double 2022 levels, according
to S&P Global Market Intelligence.
Several
large recognizable companies with hundreds or thousands of workers have filed
for bankruptcy protection in recent weeks, including Bed Bath & Beyond and Vice Media, although their financial troubles predated the
recent economic turmoil.
Among
all types of companies, large and small, the increase in bankruptcies is much
more muted, with filings remaining below pre-pandemic levels and historic
norms, according to Mark Zandi, chief economist at Moody’s Analytics. The total
numbers are still “very, very low,” he said.
Yet filings
are creeping up as interest rates rise, pandemic-era government support dries
up and sales growth slows amid a cooling economy.
“The era of
low interest rates and pandemic-related government support programs helped keep
companies afloat that may have otherwise had few other options," S&P
analysts said of their large-company data. “Now that interest rates are back to
pre-Great Recession levels and pandemic support programs are largely over,
we’re seeing a fresh uptick in a possible sign that companies are running out
of time.”
Any failure to reach a deal on the debt
ceiling and avoid a government default
would clearly worsen the problem, Zandi said.
Even a short-lived failure to pay government debts
would push the economy into recession, he said. “That means businesses are
going to be struggling with weaker sales. They’re probably not going to be able
to get credit,” he said. “So very quickly, you will be running out of cash and
having to make some pretty hard choices — layoffs, slashing investment and
ultimately bankruptcy.”
Any long-lasting default would be “catastrophic” and
cause a “tsunami of bankruptcies,” he added.
More
Corporate bankruptcies are creeping up as pressures in the economy grow (msn.com)
Covid-19 Corner
This
section will continue until it becomes unneeded.
COVID Vaccine-Injured Sue Biden
Administration Over Censorship
May 22, 2023 Updated: May 23, 2023
A woman who suffered severe nerve damage after
receiving a COVID-19 vaccination and four others with confirmed or suspected
COVID-19 vaccine injuries launched a lawsuit against President Joe Biden and
his administration on May 22.
Top government officials violated the plaintiffs’
rights to free speech and peaceful assembly when they pressured Big Tech companies
to crack down on people sharing their experience after receiving the COVID-19
vaccines, Brianne Dressen, the woman, and the other plaintiffs say.
“Through threats, pressure, inducement, and coercion,
Defendants now work in concert with social media companies to censor content
the government deems ‘disinformation,’ ‘misinformation,’ and ‘malinformation’—a
feat that the government could never lawfully accomplish alone,” the 124-page suit, filed in U.S. court in southern Texas,
states.
In addition to Biden, defendants include Rob
Flaherty, a top adviser to Biden; White House press secretary Karine
Jean-Pierre; the Department of Homeland Security; the Centers for Disease
Control and Prevention (CDC); and Surgeon General Vivek Murthy.
The CDC declined to comment. The other defendants did
not respond to requests for comment, or could not be reached.
Dressen hailed the lawsuit as a major development for
those reporting to be suffering from vaccine injuries.
“People injured by the COVID vaccines in the United
States have not been able to file suit anywhere, under any circumstance,” she
told The Epoch Times. “So this is a landmark case for Americans injured by the
COVID vaccine.”
COVID-19 vaccine manufacturers are largely immune
from litigation in the United States due to the Public Readiness and
Emergency Preparedness Act declaration entered by the Trump administration in
early 2020. Most other vaccine manufacturers are also shielded from liability
under the National Childhood Vaccine Injury Act.
---- Another plaintiff, Nikki Holland, meanwhile, posted videos on TikTok regarding
her experiences after being vaccinated, including the injuries she suffered.
TikTok said the videos violated guidelines such as one against posting “violent
and graphic content.”
“When I really started to share and open up about
things, I started to notice that a lot of stuff was being taken down and
censored,” Holland told The Epoch Times. “That adds a whole new world of
questioning to motive and what’s really going on because … why would you
censor something you might need to look into to protect millions of others?”
TikTok did not immediately return a query.
The other plaintiffs are Shaun Barcavage, a former
nurse who has been on disability leave since suffering medical problems after
receiving Pfizer’s COVID-19 vaccine; Kristi Dobbs, a dental hygienist who
suffered “debilitating medical injuries” after a shot of Pfizer’s vaccine; and
Suzanna Newell, who is also on disability leave due to problems following
vaccination.
The right to peacefully assemble was also violated
when Facebook and other big tech platforms disbanded groups where those with
suspected or confirmed adverse reactions following vaccination gathered,
according to the suit.
More
COVID
Vaccine-Injured Sue Biden Administration Over Censorship (theepochtimes.com)
One-Third of Americans ‘Worse
Off Financially’ in 2022 Amid Inflation: Federal Reserve
May 23, 2023 Updated: May 23, 2023
The percentage of U.S. adults reporting they were
worse off financially climbed to 35 percent in 2022, the highest level since
the Federal Reserve (Fed) started tracking this data in 2014.
The Federal Reserve Board published its “Economic
Well-Being of U.S. Households in 2022” report on May 22, an annual assessment of the financial well-being of
adults and their families that draws from the Survey of Household Economics and
Decisionmaking (SHED). Fed Governor Michelle Bowman says this data is crucial
to help “refine our understanding of the economic challenges facing U.S.
households.”
Fed data highlighted that rampant price inflation
impacted households the most and made a dent in their overall economic health
from the previous year, despite a strong labor market.
Seventy-three percent of adults said they “were doing
at least okay financially in 2022,” down 5 percent from the previous year.
Thirty-five percent of adults admitted to being worse off financially, the
highest figure since the series began nearly a decade ago.
In addition, more adults endured spending increases
than income gains, as 40 percent told the central bank that their family’s
monthly expenses rose from the previous year, compared to 33 percent that
reported a monthly income boost. Nearly one-quarter (23 percent) of adults
conceded that their spending jumped, but their income was flat.
Inflation altered consumers’ spending and saving
choices, with most saying they stopped consuming a product or used less due to
price pressures. Over half (51 percent) trimmed their savings amid the
inflationary climate.
The share of respondents
who confirmed that they would cover a $400 emergency expense using cash or its
equivalent was 63 percent, down 5 percentage points.
The 2022 economic
environment also affected retirement goals, with 31 percent of non-retirees
thinking their retirement savings plan was on track, down from 40 percent in
2021.
More
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.
HydroGraph's Graphene
Outperforms Leading Cathode Catalyst in Li-O2 Battery Study
Wed, May 24, 2023 at 12:30 PM GMT+1
VANCOUVER, British Columbia, May
24, 2023 (GLOBE NEWSWIRE) -- HydroGraph Clean Power Inc. (CSE: HG) (OTCQB:
HGCPF) (the “Company” or “HydroGraph”), a
manufacturer of high-quality nanomaterials, today announced a groundbreaking
achievement in the field of energy storage. According to a study published in
the Journal of Electrochemical Energy Conversion and Storage,
HydroGraph's graphene surpassed the performance of the leading cathode carbon
materials in a lithium-oxygen (Li-O2) battery test.
Lithium-oxygen batteries have
emerged as one of the most promising energy storage solutions, but global
adoption has been hampered in achieving efficient electrocatalysis, which
impacts a battery’s performance. Using HydroGraph's patented high-purity
fractal graphene, battery scientists have overcome performance challenges,
allowing for a better performing battery at a lower cost compared to the
incumbent.
HydroGraph's graphene offers not
only superior performance but also better economics, at a significantly lower
cost. Extensive testing and analysis have demonstrated that HydroGraph's
graphene delivers exceptional results, including the highest discharge
capacity, superior cycling stability, and promising performance at higher
current densities.
"This achievement marks a
significant turning point in Li-O2 battery technology," said Ranjith
Divigalpitiya, Chief Science Officer for HydroGraph. "Our graphene
material showcases improved performance, surpassing the industry's leading
catalyst and providing battery manufacturers and investors with renewed hope
and confidence."
"We are incredibly proud of
the breakthrough our team has achieved," stated Dr. Xianglin Li, the
corresponding author of the publication and Associate Professor at the
Department of Mechanical Engineering and Materials Science, Washington
University in St. Louis. This work was done while Dr. Li was an Associate
Professor at the University of Kansas.
"HydroGraph's graphene
showcases unparalleled capabilities in electrocatalysis, unlocking new
possibilities for Li-O2 batteries and accelerating the transition to cleaner
energy solutions," said Dr. Li.
Read more about Dr. Xianglin Li’s
work involving HydroGraph’s high-performance graphene in The Journal
of Electrochemical Energy Conversion and Storage found here.
More
HydroGraph's
Graphene Outperforms Leading Cathode Catalyst in Li-O2 Battery Study
(yahoo.com)
We don't come to Canada for our health. We can
think of other ways of enjoying ourselves.
Prince Philip.
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