Monday, 11 September 2023

India. China. A US Auto Strike. A Wobble In Hanoi.

 Baltic Dry Index. 1186 +45             Brent Crude 90.54

Spot Gold 1927                  US 2 Year Yield 4.98 +0.04

“Because the lenders sold many—though not all—of the loans they made to other investors, in the form of mortgage bonds, the industry was also fraught with moral hazard. “It was a fast-buck business,” says Jacobs. “Any business where you can sell a product and make money without having to worry how the product performs is going to attract sleazy people.”

Michael Lewis, The Big Short: Inside the Doomsday Machine.

In the global stock casinos, something of a crowded week.  On Wednesday and Thursday the US releases its latest inflation figures, both of which might affect the upcoming Fed meetings on the 19th and 20th.

But those meetings will be overshadowed if  America’s auto union goes on strike on September 14th.

In Asia, the stock casinos will be busy digesting the economic news out of India and on Friday, China. The casinos will be looking for signs that China’s property crisis is abating.

But China has a growing news crisis in manufacturing. For more on that scroll down to the next section.

Finally, in Asia, was President Biden just jet lagged in his press conference in Hanoi, Vietnam, or something more?  A worrying development for an octogenarian hoping to run for President again in 2024’s November Presidential election.

 

Asia stocks start the week mostly lower, ahead of key data from China and India this week

UPDATED MON, SEP 11 2023 12:19 AM EDT

Most Asia-Pacific markets were mostly lower at the start of a week where key economic data from major economies will take center stage.

On Tuesday, India will release its inflation and industrial output figures for August, while China will announce its industrial output, retail sales, and most notably, house sale prices on Friday.

Hong Kong’s Hang Seng index tumbled 1.68%, leading losses in Asia, but mainland Chinese markets were in positive territory, with the CSI 300 rising 0.31%.

In Australia, the S&P/ASX 200 rose marginally, while Japan’s Nikkei 225 was down 0.46% and the Topix fell 0.1%.

South Korea’s Kospi hovered just below the flatline, while the Kosdaq was down 0.37%.

On Friday in the U.S., stocks rose slightly, but logged a losing week amid renewed worries that the Federal Reserve may raise rates more than previously expected.

The S&P 500 edged up 0.14% on Friday to snap a three-day losing streak, while the Dow Jones Industrial Average added 0.22% and while the Nasdaq Composite eked out a 0.09% gain.

Asia stock markets today: Live updates-China, India economic data (cnbc.com)

 

Shares of Alibaba tumble over 3% after outgoing CEO unexpectedly quits cloud business

Shares of Chinese tech giant Alibaba fell 3.5% on Monday, after the company said in a surprise move that outgoing CEO Daniel Zhang will also be stepping down as chairman and CEO of its cloud business.

The move comes months after Alibaba said in June that Zhang was departing as chairman and CEO of Alibaba Group to focus on the cloud intelligence unit.

Eddie Wu, who was set to take over from Zhang as CEO and director of Alibaba Group from September, will now also be chairman and CEO of the cloud business on an interim basis, the company said in a statement to the Hong Kong exchange on Sunday.

Co-founder Wu would become CEO and director, while another co-founder, Joseph Tsai, will be chairman from September, the e-commerce giant said at that time.

Zhang was Alibaba Group CEO since 2015 and the group chairman since 2019. He has also been chairman and CEO of the Alibaba Cloud Intelligence Group since 2022.

More

Alibaba shares tumble after Daniel Zhang unexpectedly quits cloud business (cnbc.com)

Stock futures are little changed ahead of key inflation data: Live updates

UPDATED SUN, SEP 10 2023 7:02 PM EDT

Stock futures were little changed Sunday night as investors awaited a batch of economic data in the week ahead and earnings from two major tech companies.

Futures tied to the Dow Jones Industrial Average ticked lower by 2 points, or 0.01%. S&P 500 futures and Nasdaq 100 futures edged higher by 0.06% and 0.1%, respectively.

On Friday stocks finished a down week on a high note. The Dow gained 75.86 points, or 0.22%, to close at 34,576.59, while the S&P edged higher by 0.14% to snap a three-day losing streak and finish at 4,457.49. The Nasdaq Composite eked out a 0.09% gain and settled at 13,761.53. All three indexes posted a losing week, however. It was the first negative week in three for the S&P and Nasdaq.

Investors are looking forward to key inflation data in the week ahead after a string of stronger-than-expected economic data points last week renewed worries that the Federal Reserve could raise rates more than previously expected. Traders are pricing in a roughly 4 in 10 chance of an increase in November after an anticipated pause in September, according to CME Group’s Fed Watch tool.

“Overall, the market will be looking for direction amid recent choppiness and concern that the economy is set to slow down in the coming quarters,” Yung-Yu Ma, chief investment strategist at BMO Wealth Management, told CNBC.

Wednesday and Thursday bring the latest consumer price index and producer price index readings, respectively. Investors are hoping for low readings, although both are expected to jump due to energy cost pressures.

“Both CPI and PPI inflation reports will highlight the importance of oil price, which has pushed toward the upper end of its one-year trading range,” Ma said. “A break above $90/barrel for WTI would start to cause concerns for future price pressures in the economy.”

Retail sales data is also expected Thursday and the University of Michigan’s Consumer Sentiment Survey will be released on Friday, which should give insight on how well spending could hold up for the rest of the year.

More

Stock futures are little changed ahead of key inflation data: Live updates (cnbc.com)

In other news:

 

Biden Announces ‘I’m Going to Bed’ Before Being Cut Off Mid-Sentence After Several Weird Outbursts at Troubling Vietnam Presser

President Joe Biden delivered remarks and took questions at a presser in Vietnam on Sunday and, among several remarks that sent social media spinning, randomly stated that he was “going to bed” after tapering off during a question about President Xi Jinping of China. And that is just one of several odd moments that took place.

 

The President was in India for the G20 summit and held a presser in Hanoi, Vietnam during which the pre-selected reporters he called on all had at least one thing in common.

 

Toward the end he was asked about U.S.-China relations by VOA correspondent Anita Powell, and specifically that he hasn’t spoken with Xi in 10 months.

 

Biden’s answer went on about how Xi is facing many crises at home, and he said he doesn’t see the lack of recent communication as having a negative impact on relations.

“As a matter of fact,” he said. “I think it’s less likely to cause that kind of conflict.”

“And look, nobody likes having celebrated international meetings, if you don’t know what you want at the meeting. If you don’t have a game plan. He may have a game plan. He just hasn’t shared it with me,” said Biden haltingly. “But I tell you what, I don’t know about you, but I’m going to go to bed.”

The odd comment went viral on X (formerly Twitter) on Sunday, but it wasn’t the only Biden comment that did so.

More

Biden Cut Off Mid-Ramble At Vietnam Presser Where He Announced 'I'm Going to Bed' (mediaite.com)

Country Garden faces fresh test for onshore bond extensions

By Xie Yu 

HONG KONG, Sept 11 (Reuters) - Embattled developer Country Garden faces a new round of voting by creditors to extend several debt maturities on Monday, after having avoided default at the last minute twice this month to bring some respite to the crisis-hit Chinese property sector.

The voting, due to conclude by 10 p.m. Hong Kong time (1400 GMT) on Monday, will have onshore creditors decide on approving a proposal by Country Garden (2007.HK) to extend repayments of eight onshore bonds by three years.

 

The latest voting comes after the country's largest private developer on Sept. 1 won approval from creditors to extend payments by three years for a 3.9 billion yuan ($533 million)onshore private bond.

That voting was delayed by two times before Country Garden's proposal won support from 56.08% of participating creditors. It also managed to avoid default in the offshore market, with a last-minute bond coupon payment last week.

Country Garden's bondholders on Monday will vote separately on proposals to extend maturities of eight onshore bonds, which were issued by the developer and a subsidiary and were set to mature and be puttable in 2023 and 2024.

Country Garden did not immediately respond to request for comment.

Country Garden, one of the few large Chinese developers that have not defaulted on debt obligations, has been facing liquidity pressure with reduced available funds as sales plunged, its interim financial statements show.

It faces 108.7 billion yuan ($14.9 billion) worth of debts due within 12 months, while its cash level are around 101.1 billion yuan as of end-June, according to the company's interim financial statement.

In the offshore market, Country Garden has at least five coupon payments due this month, including two relatively sizable dollar bond coupons worth $15 million due on Sept. 17, and $40 million on Sept. 27, each with a 30-day grace period.

Any default by Country Garden would exacerbate the country's spiralling real estate crisis, put more strain on its struggling banks and could delay the recovery of not only the property market, but the overall Chinese economy.

More

Country Garden faces fresh test for onshore bond extensions | Reuters

Tropical storm rains batter China for seventh day

September 11, 20235:50 AM GMT+1

BEIJING, Sept 11 (Reuters) - Heavy rains from former typhoon Haikui, now a tropical storm, kept southern China drenched for the seventh day as slow-moving storm clouds drifted from Guangdong on the coast to Guangxi, flooding low-lying areas, blocking roads and trapping residents.

In the rural county of Bobai in Guangxi region, rescuers on assault boats have scrambled to pull people to safety since Sunday night as water more than 2 metres (6.6 feet) deep stranded residents in low-rise homes, state media reported on Monday.

In hillier areas, landslides destroyed roads and bridges collapsed. At one weather station in Bobai, local records were shattered when rainfall reached 511.2 mm (20 inches), more than a quarter of the region's annual precipitation.

Haikui has weakened from a typhoon to a tropical storm since making landfall in Fujian province on Sept. 5, but its residual vortex has continued to wreak havoc in southern China, with the populous city of Shenzhen deluged by the heaviest rain since records began in 1952. Neighbouring Hong Kong was pelted by the worst storm in 140 years.

Scientists warn that typhoons hitting China are becoming more intense and their paths growing more complex, escalating risk of disaster, even in coastal cities such as Shenzhen that regularly brave tropical cyclones and already have strong flood defence capabilities.

"Typhoons that move far inland affect regions historically less exposed to heavy rainfall and strong wind, often with lower disaster resilience, leading to more severe losses," said Shao Sun, a climatologist at the University of California, Irvine.

"In this case of Shenzhen, the disaster was mainly due to the slow westward movement of Haikui's residual circulation, which nearly stagnated in its spatial position from the afternoon of Sept. 7 to the early hours of Sept. 8, and a "train effect" of heavy rainfall occurred, causing the event to exceed its expected intensity."

A so-called "train effect" refers to the cumulative effect of multiple convective cloud systems passing over an area in succession, resulting in a significant accumulation of rainfall accumulation and sharply raising the potential for heavy or even extreme rainfall.

Heavy rain is expected to persist in Guangxi over the next few days.

Tropical storm rains batter China for seventh day | Reuters

Finally, the IMF needs more other people’s money. Not to worry though, it’s not real money, convertible metallic money, with intrinsic value, it just more fiat money with no intrinsic value, created out of thin air at the push of a computer button in any one of the G-20 central banks.

IMF urges pact to boost its resource quota, strengthen world economy

By Swati Bhat 

NEW DELHI, Sept 10 (Reuters) - It is vital to increase quota resources for the International Monetary Fund (IMF) before year-end, its chief, Kristalina Georgieva, said on Sunday, while urging members of the G20 bloc to deliver on a promise of $100 billion a year in climate funds.

In a declaration at its summit in New Delhi this weekend, the grouping vowed to tackle debt vulnerabilities in low and middle-income countries "in an effective, comprehensive and systematic manner", but offered no fresh plan of action. "G20 members must lead by example in delivering on the promises of $100 billion per year for climate finance, supported by strengthening the multilateral development banks," Georgieva said in a statement at the end of the two-day summit.

"Countries also need to mobilise domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, strong fiscal institutions, and deep local debt markets."

She urged the grouping to strengthen the global financial safety net.

"To make the global economy stronger and more resilient in a more shock-prone world, it is vital to reach an agreement to increase the IMF's quota resources before the end of the year," she said.

Such a pact would secure resources needed for the Fund's interest-free support to the poorest countries through the Poverty Reduction and Growth Trust, she added.

The G20 summit also pledged to strengthen and reform multilateral development banks, while accepting a proposal to regulate cryptocurrencies more tightly worldwide.

"More work lies ahead, including in the realm of digital money and crypto assets," Georgieva said

IMF urges pact to boost its resource quota, strengthen world economy | Reuters

 

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.

More sign a global recession is fast arriving. But global inflation is still a problem. Approx. 11 minutes.

No More Foreign Orders, as the Global Supply Chain Exits: The End of ‘Made in China’ Has Come

No More Foreign Orders, as the Global Supply Chain Exits: The End of ‘Made in China’ Has Come - YouTube


Egypt inflation hits record high of nearly 40%

Sun, 10 September 2023 at 9:59 am BST

Annual inflation in Egypt hit 39.7 percent in August, official figures showed Sunday, an all-time high for the country as it grapples with a punishing economic crisis.

It comes immediately after the previous record of 38.2 percent was recorded in July, and over a year into an unrelenting economic crisis that has seen the currency shed half its value against the US dollar since early last year.

Food and drink prices alone registered a 71.9 percent increase compared to August 2022, state statistics agency CAPMAS announced on Sunday, adding to the burden of families who have been struggling to make ends meet.

The economic crisis in the import-dependent country was catalysed by Russia's invasion of Ukraine last year, which destabilised crucial food supplies and unsettled global markets.

Investors pulled billions out of Cairo's foreign reserves, which remain buoyed by deposits from wealthy Gulf allies whose promises to purchase Egyptian state assets have fallen short of government targets.

Even before the current crisis, 30 percent of Egyptians were living below the poverty line, according to the World Bank, with another 30 percent vulnerable to falling into poverty.

Egypt, the Arab world's most populous country, has been dependent on bailouts in recent years, from both Gulf allies and the International Monetary Fund.

Last year, the IMF approved a $3 billion loan for Egypt conditioned on "a permanent shift to a flexible exchange rate regime".

The country's external debt bill has tripled over the past decade, rising to a record high of $165.4 billion this year, according to Ministry of Planning figures.

Egypt inflation hits record high of nearly 40% (yahoo.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

A Deeper Dive Into the Role of Spike Protein in Myocarditis and Blood Clotting After COVID-19 Vaccination

Promise or Peril: COVID-19 mRNA Vaccine Issues Series (Part 4)

September 5, 2023

In this series, “Promise or Peril: Alarming COVID-19 mRNA Vaccine Issues,” we explore how the introduction of mRNA technology lacked an adequate regulatory framework, setting the stage for serious adverse events and other concerns related to inadequate safety testing of lipid nanoparticles, spike protein, and residual DNA- and lipid-related impurities, as well as truncated/modified mRNA species.

 

Previously: In Part 1, we introduced how the U.S. Food and Drug Administration (FDA) relaxed the rules for mRNA vaccines compared to mRNA therapies and discussed the available data regarding LNP distribution throughout the body based on animal testing, the fact that human testing was not done, and the lack of mRNA or spike protein biodistribution data. In Parts 2 and 3, we explored how the LNPs are constructed and how they behave in the body and affect health.

 

Now we turn to another problem—the cargo contained in the LNP capsules: the mRNA and its encoded spike protein. We introduce the inflammatory response to the spike protein and one of its subunit proteins and how they may contribute to serious adverse events such as myocarditis and blood clotting.

Rochelle Walensky, former director of the U.S. Centers for Disease Control and Prevention (CDC), stated on “Good Morning America” in June 2021 that myocarditis cases are “really quite rare … minor, self-limited, they generally resolve with rest and standard medications.” However, this assertion was made based on a preliminary review of 300 cases and before conducting long-term follow-up.

 

A study published on Aug. 1 followed 40 adolescents in Hong Kong for up to a year. Follow-up testing performed in 26 patients with initial abnormal findings revealed that 58 percent of those with vaccine-associated myocarditis had persistent heart muscle scarring. The authors concluded: “There exists a potential long-term effect on exercise capacity and cardiac functional reserve during stress.”

 

This series demonstrates how exposure to the spike protein results in downstream cardiovascular issues. Given that vaccination causes the body to produce more spike protein, it is clear that additional research was needed to understand the health impacts of vaccination prior to licensure.

 

Summary of Key Facts

 

·         The SARS-CoV-2 spike protein and its S1 subunit have known impacts on the cardiovascular system, such as an increased risk of blood clotting.

·         The vaccine-induced spike protein and its S1 subunit have been found in the blood following vaccination.

·         In lab studies, the spike protein activates white blood cells and may trigger an inflammatory response or clotting.

·         Free spike protein was found in the blood of adolescents and young adults with post-mRNA vaccine myocarditis but not in healthy control subjects without myocarditis.

·         The S1 subunit can interact with ACE2, platelets, and fibrin and may be what leads to an inflammatory response driving serious adverse events, including clots, myocarditis, and neurological problems.

·         As discussed in Part 3, lipid nanoparticles (LNPs) act as adjuvants, stimulating the immune system. This innate immune response peaks within six hours of vaccination and returns to baseline by about day nine, temporally corresponding to the onset of myocarditis, which typically occurs within the first seven days following mRNA COVID-19 vaccination.

·         Studies have not been done to evaluate how vaccination affects those who have already been infected with SARS-CoV-2.

·         The spike protein was implicated in small vessel microclots during COVID-19 illness; thus, postvaccination cardiovascular effects should have been anticipated.

·         The first deadline for FDA-mandated post-authorization safety studies has passed, yet to the best of our knowledge, the full report has not been made available to the public.

More

A Deeper Dive Into the Role of Spike Protein in Myocarditis and Blood Clotting After COVID-19 Vaccination (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.

Dangling strings slash the time and space needed for lithium harvesting

Ben Coxworth  September 08, 2023

Although lithium can be found in hard mineral ores, it's more often extracted from very salty (aka briny) groundwater. The latter task could soon be much quicker and eco-friendlier, thanks to a new string-based extraction technique.

Currently, lithium-rich brine must be pumped into surface-located manmade ponds, where it's left to sit for anywhere from several months to a few years. Throughout this period, the water itself evaporates into the atmosphere, leaving concentrated salts behind. Lithium is then harvested from those salts.

Besides taking a long time, this process also requires a lot of land for the large evaporation ponds. Additionally, in order to make such huge operations economically feasible, most of them must be located in the few places that have large and plentiful underground lithium brine deposits. These locations must also have arid climates that boost evaporation.

With such drawbacks in mind, Prof. Z. Jason Ren and colleagues at Princeton University have devised a new lithium-extraction process. It yields usable lithium within less than one month, occupies about 10% as much land as the ponds, and is worthwhile utilizing in a wide variety of locations where even modest amounts of lithium brine are present.

The technique incorporates strings made from inexpensive twisted cellulose fibers. Each of those porous fibers has a hydrophilic (water-attracting) core, surrounded by a hydrophobic (water-repelling) surface.

Arrays of these strings are hung over brine-filled reservoirs, with the bottom end of each string immersed in the liquid. Capillary action draws the liquid up the cores of the strings' fibers, while the surfaces of those fibers push the liquid out into the air where its water content quickly evaporates.

As a result, each string ends up covered in lithium chloride and sodium chloride crystals that can be harvested by hand. Fortunately, the lithium and sodium aren't intermixed. Because lithium salts are highly soluble, they crystalize toward the top of each string, while the less-soluble sodium salts (which are also useful) crystallize toward the bottom.

The scientists have already demonstrated a 100-string setup, and are now working on boosting the efficiency of the technique. They have also formed a spinoff company, PureLi Inc, to commercialize the technology.

"Our process is like putting an evaporation pond on a string, allowing us to obtain lithium harvests with a significantly reduced spatial footprint and with more precise control of the process," said study co-author Dr. Sunxiang (Sean) Zheng. "If scaled, we may open up new vistas for environmentally friendly lithium extraction."

A paper on the research was recently published in the journal Nature Water.

Source: Princeton University

Dangling strings slash the time and space needed for lithium harvesting (newatlas.com)

“The markets in the long run are no doubt driven by fundamental economic laws—if the United States runs a persistent trade deficit, the dollar will eventually plummet—but in the short run money flows less rationally. Fear and, to a lesser extent, greed are what make money move.”

Michael Lewis, Liar's Poker.

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