Baltic Dry Index. 1083 +18 Brent Crude 88.95
Spot
Gold 1939 US 2 Year Yield
4.87 +0.02
My object in life is to dethrone God and destroy capitalism.
Karl Marx.
As the US casinos reopen from yesterday’s Labor Day holiday, Asian markets wobble again as the China property sector “bailout” comes under scrutiny, Europe’s markets head for a difficult opening.
In better news, Turkey’s President Erdogan thinks a new Baltic grain deal is possible and close. Well maybe.
In less good news, global wage price demands are soaring, with strikes threatened if not met. If met, expect another round of increased inflation in the USA and Europe before China’s new export of deflation hits early next year.
Better pray for another mild northern hemisphere
winter in Europe again this winter as social disorder is likely only a hard
winter away.
Asia markets fall
as Australia holds rates; inflation, business activity data expected
UPDATED TUE, SEP 5 2023 12:36 AM EDT
Asia-Pacific
markets fell as Australia’s central bank’s held its benchmark policy rate at
4.1% for the third straight month in a row and investors assessed inflation and
business activity readings from across the region.
The Reserve Bank of Australia’s
decision was in line with expectations from economists polled by Reuters. The S&P/ASX 200 slid
0.33% after the announcement.
Elsewhere, South Korea’s inflation rate for
August came in higher than expected at 3.4%. Thailand and the Philippines are
also expected to release inflation data Tuesday.
Investors will also be monitoring
purchasing managers index readings from China, India and Hong Kong.
South Korea’s Kospi slid
0.2%, while the Kosdaq saw a larger loss of 0.37%. Japan’s Nikkei 225 and
Topix were lower by 0.13% and 0.31% respectively.
Hong Kong’s Hang Seng index led
losses in Asia and fell 1.06%, while mainland Chinese markets are also in
negative territory, with the CSI 300 down 0.24%.
U.S. markets were closed on
Monday for the Labor Day holiday, but futures for the three major indexes were
little changed, with Dow Jones Industrial Average and S&P 500 futures both marginally below the
flatline and Nasdaq Composite slightly above.
Asia
stock markets today: Live updates (cnbc.com)
European
markets head for lower open as sentiment sours slightly
UPDATED TUE, SEP 5 2023 12:34 AM
EDT
European
markets are heading for a negative open Tuesday as sentiment gradually soured
in Monday’s trading session.
European stock markets closed
flat, losing momentum throughout the session after appearing to shake off
recent negativity.
German
trade data showed a 0.9% month-on-month fall in exports in
July, while imports rose by 1.4%. Economists polled by Reuters had forecast a
1.5% month-on-month decline in July exports for Europe’s largest economy, which
is slowing
in many areas.
Elsewhere, the President of the
European Central Bank Christine Lagarde said it will be “critical” for central
banks to pin their inflation targets at a period where fluctuations in the
likes of energy prices and geopolitical activity are factored in, Reuters
reported.
Data releases Tuesday include
final purchasing manager’s index (PMI) data, measuring business activity in the
manufacturing and services industry, from the euro zone and U.K. for August.
European
markets live updates: Latest news, stock moves and data (cnbc.com)
Germany is the ‘sick man of Europe’ — and it’s
causing a shift to the right, top economist says
PUBLISHED MON, SEP 4 2023 5:09 AM EDT
Germany is once again the “sick man of Europe,”
according to Hans-Werner Sinn, president emeritus at the Ifo institute, and the
challenges that poses, particularly in terms of the country’s energy strategy,
could serve to benefit increasingly popular right-wing parties.
The “sick man of Europe” moniker has resurfaced in recent weeks as manufacturing output continues to stutter in the
region’s largest economy and the country grapples with high energy prices. The
label was originally used to describe the German economy in 1998 as it
navigated the costly challenges of a post-reunification economy.
“It is not a short-term phenomenon,” Sinn told CNBC’s Steve
Sedgwick at the Ambrosetti Forum in Italy on Friday.
It “has to do with the automobile industry, which
is the heart of the German industry and many things hinge on that,” he said.
Cars were Germany’s main export product last year, accounting for 15.6% of the
value of goods sold abroad, federal statistics office data shows.
Germany reported a foreign trade deficit for the first time in decades in May 2022, totaling 1
billion euros ($1.03 billion). The country had briefly shifted from a trade
surplus to importing more than it exports.
Germany has since returned to a trade surplus,
which came to 18.7 billion euros in June 2023, according to the federal statistics office, but exports remain sluggish.
Sinn said investor doubts about the feasibility of
Germany’s sustainability goals also play into the description of the country as
the “sick man of Europe.”
One target currently in the sights of the German
government is becoming carbon neutral by
2045. These plans came into sharp focus as Europe looked to detach itself from Russian gas supplies following the Kremlin’s full-scale invasion of Ukraine, and prices shot up.
Some described Germany’s ambitions to move away
from Russian gas as “wildly optimistic,”
particularly in light of the country’s climate targets.
----Germany could lose 2% to 3% of its current
industrial capacity as companies move operations to countries where gas and
electricity are cheaper, such as the U.S. or Saudi Arabia, according to a research note released in August by Berenberg.
Uncertainty about energy prices has likely
contributed to a “plunge” in business sentiment, Holger Schmieding, chief
economist at Berenberg, wrote in the note. He added that “the current policy
uncertainty and the dismay about half-baked government plans are not structural
factors that look set to hold back the German economy for long.”
More
Finally, with Ukraine barely able to export grain, Egypt has to buy Russian wheat financed probably by the UAE.
What genius in Washington, District of Crooks thought it was a good idea to set off a new European war in the bread basket feeding of much of the poorest countries in the world?
Not that anyone outside of Africa is trying
to bring this needless war to an end. Instead Washington, London and NATO
Brussels are still trying to widen out the war.
Exclusive: Egypt buys nearly half a million tons of Russian
wheat in private deal
September 4, 20237:10 AM GMT+1
CAIRO, Sept 4 (Reuters) - Egypt's state
grains buyer bought about a half a million metric tons of Russian wheat in a
private deal, four traders told Reuters, succeeding in negotiating lower prices
than those offered in the more traditional tenders.
One of the world's biggest importers of
wheat, Egypt last year started shifting towards direct purchases instead of
tenders after the war in Ukraine disrupted its buying.
The General Authority for Supply
Commodities (GASC) bought about 480,000 metric tons of Russian wheat from
trading firm Solaris on Friday, at a price of about $270 a ton on a cost and
freight basis (C&F), the traders said.
GASC was not immediately available for
comment.
Traders have told Reuters the price
could possibly be below an unofficial floor set by Russia's government to
control domestic wheat prices.
Other Russian wheat suppliers submitted
offers on Friday at a free-on-board price of $265 per metric ton, believing it
to be the set price floor, and a C&F price that exceeded $270 per ton.
Traders told Reuters the price floor
was not legally binding but that suppliers were expected to follow instructions
from Russia's agriculture ministry.
There is a lack of clarity in the
market about the level of the Russian minimum floor price.
Traders say there are different minimum
prices for private sales and sales in public tenders, as well as different
prices for sales in each month between September and December and discounts for
lower protein wheat grades.
In a tender last week, all Russian
suppliers had submitted bids at a price floor set at $270 per metric ton on a
FOB basis, with C&F prices ranging between $286.25 and $291 per metric ton.
Traders told Reuters at the time that
this had weighed on Russian wheat's competitiveness, with GASC buying cheaper
Romanian and French wheat instead.
GASC had also privately bought one
cargo of Bulgarian wheat at $270 per ton C&F on Friday.
After the war in Ukraine disrupted the
country's wheat exports, Egypt had been mainly relying on the relatively cheap
Russian grain.
Last year Egypt's supply minister said
purchasing directly from suppliers enabled it to negotiate better prices at
times of uncertainty.
The North African
country has been suffering from a foreign currency crunch after the Ukraine war
delivered a broad shock to its economy, causing it to start deferring wheat
payments.
The government had
recently signed a
$500 million loan agreement with the Abu Dhabi Exports Office (ADEX) to buy
imported wheat from UAE-based agribusiness Al Dahra.
Exclusive: Egypt buys nearly half a million tons of
Russian wheat in private deal | Reuters
Putin tells Turkey's
Erdogan: we're ready to discuss the grain deal
September 4, 20231:35 PM GMT+1
MOSCOW, Sept 4 (Reuters) - President
Vladimir Putin told Turkey's Tayyip Erdogan on Monday that Russia was open to
discussions about the Black Sea grain deal, an agreement that helped get
Ukraine's grain to market and thus ease a global food crisis.
Russia quit the deal in July - a year
after it was brokered by the United Nations and Turkey - complaining that its
own food and fertiliser exports faced obstacles and that not enough Ukrainian
grain was going to countries in need.
Erdogan, who previously played a
significant role in convincing Putin to stick with the deal, and the United
Nations are trying to get Putin to return to the deal.
Speaking at the opening of their
meeting in the Black Sea resort of Sochi, Putin told Erdogan that he hoped they
would wrap up talks on a natural gas hub in Turkey and said they would also
discuss the grain deal.
"I know that you intend to raise
the issue of the grain deal," Putin told Erdogan. "We are open to
negotiations on this question."
Erdogan said the world was waiting for
news on the grain corridor issue.
"Everyone is waiting for what will
come out of our meeting today," he said. "I believe that the message
at the press conference after the meeting will be an important step for the
whole world, especially for African countries."
Russia and Ukraine are two of the
world's key agricultural producers, and major players in the wheat, barley,
maize, rapeseed, rapeseed oil, sunflower seed and sunflower oil markets.
Ahead of the Erdogan
talks, Ukrainian officials said Russia launched an overnight
air attack on one of Ukraine's major grain exporting ports.
Romania
denied a Ukrainian statement that Russian drones fell and detonated on
the NATO member's territory.
----U.N. Secretary-General António
Guterres said on Thursday that he had sent Russian Foreign Minister Sergei
Lavrov "a set of concrete proposals" aimed at reviving the deal.
One of Moscow's main demands is for the
Russian Agricultural Bank to be reconnected to the SWIFT international payments
system. The EU cut it off in June 2022 as part of sweeping sanctions imposed in
response to the invasion.
Russian foreign ministry spokeswoman,
Maria Zakharova, said on Saturday that things that were implied by the
agreement had not been implemented last time, without specifying. In its report
on the Erdogan meeting, Russian state television said promises made to Russia
must be implemented.
More
Putin tells Turkey's Erdogan: we're ready to discuss
the grain deal | Reuters
Turkey's Erdogan says
Black Sea grain deal can be restored soon
September 5,
20232:27 AM GMT+1
MOSCOW, Sept 4 (Reuters) - Turkish President
Tayyip Erdogan said after talks with Russia's Vladimir Putin on Monday that it
would soon be possible to revive the grain deal that
the United Nations says helped to ease a food crisis by
getting Ukrainian grain to market.
Russia quit the deal in
July - a year after it was brokered by the United Nations and Turkey -
complaining that its own food and fertiliser exports faced serious obstacles.
Erdogan, who previously played a significant
role in convincing Putin to
stick with the deal, and the United Nations are both trying to get Putin to
return to the deal.
"As
Turkey, we believe that we will reach a solution that will meet the
expectations in a short time," Erdogan said in the Black Sea resort of
Sochi after his first face to face meeting with Putin since 2022.
Erdogan
said that Russia's expectations were well-known to all and that the
shortcomings should be eliminated, adding that Turkey and the United Nations
had worked on a new package of suggestions to ease Russian concerns.
Erdogan
said Ukraine should soften its negotiating position against Russia in talks
over reviving the deal and export more grain to Africa rather than Europe.
More
Turkey's
Erdogan says Black Sea grain deal can be restored soon | Reuters
Nothing contributes so much to the prosperity and happiness of a country as high profits.
David Ricardo.
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.
As
US car workers prepare to strike for a 46 percent increase in wages, more sign
of rising global wage price inflation from Australia.
Chevron
faces two-week total strike at Australia LNG projects
By Renju Jose September 5, 20232:51 AM GMT+1
SYDNEY,
Sept 5 (Reuters) - Workers at Chevron's (CVX.N) Gorgon
and Wheatstone liquefied natural gas (LNG) projects in Australia plan a total
strike for two weeks from Sept. 14, a union alliance said on Tuesday, a
significant escalation on disputes over pay and conditions.
The
decision comes amid mediation
talks hosted by the Fair Work Commission (FWC), Australia's industrial
arbitrator, which began on Monday and is scheduled to run every day this week,
and ahead of brief work stoppages called by the union from Thursday.
"The
Offshore Alliance is escalating protected industrial action to demonstrate that
our bargaining negotiations are far from 'intractable'," the union
alliance said in a Facebook post.
Chevron did not
immediately respond to a request for comment.
Australia is the
world's biggest LNG exporter and the ongoing dispute has stoked volatility in
natural gas markets, as traders worry about the risk of long-term disruption.
Prolonged
industrial action could disrupt LNG exports and likely increase competition for
the super-chilled fuel, forcing Asian buyers to outbid European buyers to
attract LNG cargo.
The latest move
by the union could be a sign that the mediation talks were not
"progressing well", ING said in a research note.
"This is
likely to provide some support to gas prices today and comes at a time when
there is ongoing maintenance work at the Norwegian gas field, Troll, which has
seen flows from Norway falling," ING said.
---- The union
has already called for industrial action at the U.S. energy major's Gorgon and
Wheatstone projects, which account for more than 5% of global LNG capacity, for
seven days from Thursday Sept. 7, if parties cannot find a resolution.
Employees plan
work stoppages of up to 11 hours in two blocks and will stop performing certain
tasks until Sept. 14.
But in its
latest update, the offshore alliance said the work bans could be extended until
at least the end of the month. It said Chevron would be forced to finally agree
to their terms "but not before they lose a few $Billion."
More
Chevron faces two-week total strike at Australia LNG projects | Reuters
German exports down
in July
September 4, 2023
BERLIN (Reuters)
-German exports fell in July as global demand continues to falter, data from
the federal statistics office showed on Monday.
German exports
fell in July by 0.9% on the previous month. A Reuters poll had predicted a
month-on-month decrease of -1.5%.
Imports rose
1.4% on the month, the statistics office data showed.
The foreign
trade balance showed a surplus of 15.9 billion euros ($17.15 billion) in July,
down from a 18.7 billion euros the previous month.
Exports to
European Union countries were up 0.5% on the month, while exports to non-EU
countries declined 2.5% compared with the previous month, the office said.
German exports
expectations have deteriorated slightly due to weak foreign demand, an Ifo
survey showed in August.
German exports
down in July (msn.com)
Italy sees 2023
deficit above target due to home incentives, sources say
September 4, 2023
ROME (Reuters) - Italy is preparing to raise
its 2023 budget deficit above the target of 4.5% of gross domestic product
(GDP) set in April due to the impact of costly fiscal incentives for home
improvements, two sources close to the matter told Reuters on Monday.
Early this year, a ruling by the
European Union's statistics agency Eurostat over the ways tax credits should be
classified in state accounts forced Italy to revise up its deficits from 2020
and 2022.
The government already acted to
curtail the incentives in order not to undermine this year's state finances,
despite the contribution they had provided to the construction sector and the
economy in general during the COVID-pandemic.
However, the take-up of schemes is
still hitting Italy as billions of euros in outstanding credits are expected to
meet Eurostat's criteria to be added to this year's budget deficit, the sources
said, asking not to be named due to the sensitivity of the matter.
The impact on 2024 budget is still to
be assessed and the government could take action again to prevent further
deviations from targets, the sources added.
One of the programmes, the so-called
Superbonus offering generous incentives for energy saving home improvements, is
approaching 100 billion euros ($108 billion) since it was originally introduced
in 2020.
"Thinking about the Superbonus
makes me sick to my stomach as it has a negative effect on public accounts,
engulfs economic policy and leaves no room for other interventions,"
Economy Minister Giancarlo Giorgetti said on Sunday.
He described the Superbonus as a
banquet where everyone had a meal and the state was left with the bill.
Italy had already hinted in July that
it was studying changes to these tax incentives as part of talks with European
Union authorities to revamp the country's post-COVID national recovery Plan.
The government will update a raft of
economic projections by Sept. 27 through the Treasury's Document of economy and
finance (DEF).
With Italy preparing a difficult 2024
budget amid a darkening economic outlook, Giorgetti reiterated the commitment
to keeping the deficit and debt on a downward trend, leaving little leeway for
stimulus. ($1 = 0.9273 euros)
Italy sees 2023 deficit above target due to home
incentives, sources say (msn.com)
Low US heating oil
stockpiles could cause winter sticker shocks
By Shariq Khan September
4, 202311:03 AM GMT+1
Sept
4 (Reuters) - Americans could face a sticker shock with their heating bills
this winter, especially if it is a chilly one, due to unusually low U.S.
stockpiles of distillate fuels following OPEC+ crude supply cuts and higher
demand from Europe, analysts said.
Distillate inventories, which include diesel
and heating oil, were by late August about 15% below the
five-year average for this time of year, according to the Energy Information
Administration.
At
below 118 million barrels, stocks represented around 31 days of supply.
"We
are living barrel to barrel and there is just no room for errors in the
system," Price Futures Group analyst Phil Flynn said. "If we get a
cold winter, there are going to be significant price shocks."
Refiners have failed to build sizable stocks
ahead of the seasonal surge in demand due to tight supplies of medium
and heavy crude oil grades that are distillate-rich.
Production
cuts by the Organization Petroleum Exporting Countries and its allies, known as
OPEC+, have already squeezed global market for medium sour crude and middle
distillates, which will be further tightened by Saudi Arabia's unilateral cuts,
said Bjarne Schieldrop, chief commodity analyst at SEB.
In
addition, U.S. exports have helped to deplete stockpiles of the fuel amid
strong demand from Europe after Russia's invasion of Ukraine last year led to
sanctions on Moscow's energy trade.
Inventories have also failed to build despite
lackluster U.S. demand in the first half of this year as consumer spending shifted to services
over goods.
Weekly
distillates products supplied, a proxy for demand, has averaged 4% lower
year-on-year and below the previous five-year average, according to EIA data.
Reflecting the tightness in the market, U.S.
diesel futures briefly jumped to a seven-month high on Aug. 25 after a fire at
Marathon Petroleum's (MPC.N) 596,000 barrel per day
(bpd) refinery in Garyville, Louisiana, the third largest in the U.S.
These
outages are also a sign that U.S. refineries are due for heavy maintenance
through autumn, Mizuho analyst Robert Yawger said. Seasonal overhauls could
take out around 2 million bpd of the country's 18.1 million bpd refining
capacity, he said.
Distillate
prices, and refiners' profits from making it, will likely will rise further
over the near-term on the weak inventories, Bank of America analysts said last
week.
"Even
with soft demand, diesel inventories are stubbornly low, and cracks have
rallied in search of supply or demand-side relief before winter," the
analysts said.
Low US heating oil stockpiles could cause winter
sticker shocks | Reuters
Covid-19 Corner
This section will continue until it becomes unneeded.
COVID Mask Wearers Could Be
Exposed to Toxic Chemicals: Study
Aug 29 2023
Some have heralded masks as the gold standard of
protective gear against COVID-19. However, they may be causing more problems
than expected.
Results from a study published in the Journal of Ecotoxicology and
Environmental Safety in May have indicated that masks pose
significant risks to wearers due to toxins emitted by the tight-fitting face
coverings.
Researchers from South Korea measured the number and
concentration of volatile organic compounds (VOCs) emitted from several
different masks, including cotton masks and KF94 masks—a popular type of
disposable mask similar to the N95 mask.
Four types of VOCs were detected in KF94 masks at
22.9–147 times higher concentrations compared to other masks comprised of
fabrics like cotton. The total number of VOC particles was 14 times
that in cotton masks. In some KF94 masks, numbers reached a threshold high
enough to pose a serious risk to human health.
According to the U.S. Environmental Protection
Agency (EPA), VOCs are manmade chemicals that can evaporate at room
temperature and are often “used and produced in the manufacture of paints,
pharmaceuticals, and refrigerants.”
Inhaling them may cause the following:
·
Eyes, nose, and throat irritation.
·
Difficulty breathing.
·
Headaches.
·
Nausea.
·
Damage to the central nervous system and other organs.
·
Cancer (some cases in animals, and suspected or known cases in
humans).
VOC Concentrations Worse at Certain Times and Temperatures
Researchers found that VOC concentrations fluctuated
depending on environmental temperature and when the KF94s were removed from
their packaging. When the temperature of the KF94 masks was raised to 104
F (40 C), concentrations increased by 119 to 299 percent. Levels decreased by
80 percent 30 minutes after removing the masks from the packaging.
Risks can be mitigated to reduce harm, the study
authors noted.
“It is clear that particular attention must be paid to
the VOCs associated with the use of KF94 masks [and their] effects on human
health,” they wrote.
“Based on our findings, we suggest that prior to wearing
a KF94 mask, each product should be opened and not worn for at least 30 min,
thereby reducing total VOC concentrations to levels that will not impair human
health,” the authors concluded.
More
COVID Mask Wearers Could Be Exposed to Toxic
Chemicals: Study (theepochtimes.com)
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.
Sharp Rise in Small Cells After
5G Rollout: A Concern for Microwave Syndrome and Ways to Prevent
EMF: The Invisible Hazard (Part 7)
Sep 2 2023
---- The Molnars are
just two of the millions of Americans with electromagnetic sensitivity, also
known as microwave syndrome.
Individuals with microwave syndrome may develop symptoms like dizziness, insomnia, pain, and mood and memory
problems when exposed to electromagnetic fields (EMFs) from power sources and
wireless signals transmitted by phones, cell towers, and emerging small cells.
5G and the Rise of Small Cells
Wireless facilities, especially small cells, have started
popping up like mushrooms after rain in both residential and commercial areas.
There are two types of wireless facilities. Cell towers,
or macro cells, can reach 200 feet in height, may have up to 20 antennae, and
maintain coverage for miles of radius. Small cells, on the other hand, are much
more compact, and they relay signals and maintain coverage between a few
hundred yards up to about 2 miles.
Small cells are the backbones of the 5G network.
Though their frequencies overlap with 4G, 5G signals
generally have a higher upper frequency, making them less penetrative;
therefore, they need antennae at closer proximities to maintain connections.
Small cells were rapidly installed during the 5G rollout.
People have discovered them outside their homes, on lamp posts, and utility
poles along the sidewalk.
In 2020, there were over 417,000 wireless facilities; by the end of 2022, there
were around 1.5 million in operation.
Apart from emitting 5G signals, small cells also emit 3G
and 4G signals; both are shown to be harmful. This means people are exposed to denser and stronger
wireless radiation, increasing potential health risks.
Numerous papers have
documented these signals’ adverse health effects on residents.
Retired oncologist Dr. Lennart Hardell from Orebro
University Hospital in Sweden has published three case studies (pdf)
involving residents living near newly installed 5G small cells or base
stations.
One of the studies was published in January. Two previously healthy
people, a 63-year-old man and a 62-year-old woman, developed symptoms of
fatigue, insomnia, tinnitus, distress, skin disorders, and irregular blood
pressure after the installation of a 5G small cell on the roof of their
apartment.
Dr. Hardell found that after the new base station was
installed, the strength of the radiofrequency signals increased.
“Due to the severity of symptoms, the couple left their
dwelling and moved to a small office room [with lower radiation strength].
Within a couple of days, most of their symptoms alleviated or disappeared
completely,” Dr. Hardell wrote.
More
We have no compassion and we ask no compassion from you. When our turn comes, we shall not make excuses for the terror.
Karl Marx.
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