Wednesday, 22 November 2023

A First Hostage Deal. Fed Disappoints. Binance Bent!

Baltic Dry Index. 1796 -21            Brent Crude  82.23

Spot Gold 1999                  US 2 Year Yield 4.86 -0.03

"It was an unusual burden that I took with me on my way to Warsaw. Nowhere had the people, the people, suffered as much as in Poland. The mechanical extermination of Polish Jewry represented an increase in the lust for murder that no one had thought possible. [...]

I hadn't planned anything, but I had left Wilanow Castle, where I was staying, with the feeling that I had to express the peculiarity of commemorating the Ghetto Monument. At the abyss of German history and under the weight of the millions of murdered people, I did what people do when language fails.

Even after twenty years, I know no better than the rapporteur who said: 'Then he, who does not need it, kneels for all those who need it, but do not kneel – because they do not dare or cannot or cannot dare.'"

Willy Brandt. On kneeling down at the Warsaw Ghetto Monument during his 1970 state visit to Poland.

Today’s big news has nothing to do with the markets today. Over the next few days 50, perhaps more of the terrorist group Hamas’s kidnaped hostages are going to be released.  

It’s a start but much more needs to be done to release all the others and bring about an end to the Gaza catastrophe. But it’s a start.

In stock casino news, the US Fed minutes of their last meeting were a disappointment.

Asia markets mixed after Fed minutes show no indication of rate cuts

UPDATED WED, NOV 22 2023 12:39 AM EST

Asia-Pacific markets were mixed after minutes from the U.S. Federal Reserve’s Oct. 31 meeting revealed that policy officials maintained that monetary policy had to be restrictive and had little appetite for rate cuts.

“In discussing the policy outlook, participants continued to judge that it was critical that the stance of monetary policy be kept sufficiently restrictive to return inflation to the Committee’s 2 percent objective over time,” the minutes said. The federal funds rate currently stands at 5.25%-5.5%.

Japan’s Nikkei 225 rose 0.28%, while the Topix added 0.38%. Japan’s markets were the only ones among major Asia markets in positive territory on Wednesday.

South Korea’s Kospi fell 0.2% and the Kosdaq shed 0.53%

Hong Kong’s Hang Seng index opened 0.07% lower, while China’s CSI 300 index dropped 0.52%.

In Australia, the S&P/ASX 200 was down marginally, reversing earlier gains and closing at 7,073.4.

In the U.S., all three major indexes lost ground following the Fed announcement, with the S&P 500 and Nasdaq Composite snapping a string of five consecutive winning days.

The Dow Jones Industrial Average slipped 0.18%, while the S&P dipped 0.2%. The tech heavy Nasdaq fell 0.59%, a day after leading a tech fueled rally on Wall Street.

Asia stock markets today: Live updates, Federal Reserve (cnbc.com)

European stocks head for higher open as markets digest Fed minutes

UPDATED WED, NOV 22 2023 12:27 AM EST

European stocks are heading for a positive open Wednesday as markets digest the latest minutes from the U.S. Federal Reserve’s Oct. 31 meeting.

They revealed that policy officials maintained that monetary policy has to be restrictive and that they have little appetite for rate cuts.

“In discussing the policy outlook, participants continued to judge that it was critical that the stance of monetary policy be kept sufficiently restrictive to return inflation to the Committee’s 2 percent objective over time,” the minutes said. The federal funds rate currently stands at 5.25%-5.5%.

Asia-Pacific markets were mixed overnight, while Nasdaq 100 futures were lower Tuesday night, as Wall Street assessed chip giant Nvidia’s latest earnings.

European markets live open: stocks, news, data and earnings (cnbc.com)

Nasdaq 100 futures tick lower as traders assess Nvidia’s earnings: Live updates

UPDATED WED, NOV 22 2023 12:32 AM EST

Nasdaq 100 futures were lower Wednesday as Wall Street assessed Nvidia’s latest earnings results.

Futures tied to the tech-heavy index slipped about 0.2%, while S&P 500 futures were flat. Dow Jones Industrial Average futures inched 0.07% higher.

Nvidia shares slid more than 1% in extended trading Tuesday. The chip giant posted fiscal third-quarter adjusted earnings and revenue that beat expectations, but warned export restrictions on China would weigh on its fiscal fourth quarter.

The lackluster response to the quarterly beat suggests to some investors Nvidia’s stock may be overvalued after its more than 200% rise this year. This week, Nvidia shares crossed the $500 threshold for the first time to an all-time high. It closed Tuesday at $499.44, down 0.9%.

“It’s a great quarter,” trader Guy Adami said Tuesday on CNBC’s “Fast Money.” “But at what point do you say to yourself, you know what, now the valuation is starting to get a little bit stretched. We understand it can grow into it, but we’re going to start taking profits in the name.”

During the regular session Tuesday, the S&P 500 and Nasdaq Composite ended a five-day winning streak. The 30-stock Dow fell 62.75 points, or 0.18%. The S&P 500 lost 0.20%, while the Nasdaq dropped 0.59%.

Those moves come after the Federal Reserve signaled in its latest meeting notes that monetary policy will remain restrictive, and gave no indication of cutting interest rates anytime soon.

On the economic front, investors will watch for durable goods orders, weekly jobless claims and consumer sentiment data set to release Wednesday.

Deere & Co. will report fiscal fourth-quarter results before the opening bell Wednesday.

Stock market today: Live updates (cnbc.com)

Finally, Binance. To no one’s great surprise, Binance was a criminal operation all along.

DOJ Charges Binance With Vast Money-Laundering Scheme and Sanctions Violations

From Russia to Iran, the feds have charged Binance with allegedly conducting well over $1 billion in transactions with sanctioned countries and criminal actors.

November 21, 2023

For years, the world's largest cryptocurrency exchange, Binance, has been dogged by rumors of malfeasance and federal investigations. Today, in a set of accusations that will rock the already tumultuous world of crypto, the US Department of Justice revealed criminal charges against the company and its chief executive, Changpeng Zhao, claiming they enabled the laundering of vast flows of dirty money across the globe, from Cuba to Iran to Russia.

The indictment against Binance, unsealed ahead of a press conference by US attorney general Merrick Garland, accuses the company of billions of dollars of transactions that violated US anti-money-laundering laws, including well over a billion dollars of actual criminal transactions and sanctions evasions. Separate indictments specifically charge Zhao and former chief compliance officer Samuel Lim with allowing those illicit transactions to take place.

Garland announced Tuesday that Zhao had pleaded guilty to a felony money-laundering violations charge and that the company had agreed to pay a $4.3 billion fine as part of a settlement with the DOJ. Zhao has also stepped down from his role running the company and agreed to pay a $150 million fine. Lim must pay $1.5 million as part of the settlement.

“Binance prioritized its profits over the safety of the American people,” Garland said during the press conference. “Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed. Now it is paying one of the largest corporate penalties in US history."

The charging documents describe a company that allegedly turned a blind eye, sometimes willfully and knowingly, prosecutors claim, to the trading of funds from sanctioned countries and regions like Iran, Cuba, Syria, and Russian-occupied areas of Ukraine such as Crimea and Donbas, as well as the now defunct criminal dark-web market Hydra.

“Their illicit financing problems were overwhelming to an unsolvable degree,” a former Binance executive tells WIRED, echoing the charges. The former executive was granted anonymity because they are not authorized to speak about internal company matters. “It was a nightmare trying to get a handle on all the sanctions evasions taking place. The execs were more and more hostile to compliance teams trying to mitigate a lot of issues that they were seeing.”

More

DOJ Charges Binance With Vast Money-Laundering Scheme and Sanctions Violations | WIRED

Binance warned VIP customers about law enforcement investigations, Treasury says

Binance’s VIP users were granted a set of special privileges, including an early heads-up from the crypto exchange if they were under investigation by law enforcement, according to the U.S. Treasury’s Financial Crimes Enforcement Network.

Binance CEO Changpeng Zhao pleaded guilty to criminal charges in the U.S. and stepped down from his post on Tuesday as part of a $4.3 billion settlement. The plea deal resolves a multi-year investigation into the world’s largest crypto exchange.

Treasury alleged in a 92-page order that Binance had “developed a process to notify VIP users if they became the subject of a law enforcement inquiry,” in a setup where Binance was effectively serving as a lookout for its top-tier customers.

The process, as described by FinCEN, was relatively simple. Members of Binance’s VIP team were instructed to contact the user under investigation by “all available means” including sending texts and calling to inform customers, for example, that their account had been frozen or unfrozen.

According to the consent order, Binance’s VIP team staff were warned not to be too obvious in their tips.

″‘We cannot in any circumstances directly tell the user to run/withdraw, we can get sued or undertake personal liability. Giving a strong hint[,] such as your account is unlocked/your account has been investigated by XXX is usually a good enough hint of severity,’” the company told the VIP team, the order said.

Binance’s “VIP Program” caters to higher volume, commercially important users and offers incentives such as competitive trading fees and higher limits on order volume to try to keep these patrons happy — and loyal.

According to FinCEN, internal reports from Binance indicated that in 2019, VIP customers “consistently accounted for between two-thirds and three-quarters of both trading volume and trading revenue on Binance.com, adding that “Binance thus had significant commercial motivations to go to great lengths to support these VIP users.”

---- FinCEN found that Binance helped U.S. customers, including the most commercially lucrative U.S. Enterprise Users in Binance’s VIP program, to circumvent the ringfencing policies the exchange itself had put into place to comply with local laws.

One such approach included encouraging users to alter know-your-customer documentation to give the false impression they were not in the U.S., as well as using a virtual private network, or VPN, to cover a user’s geographic footprint, “even though Binance would know that the user was, in fact, located in the United States.”

More

Binance warned VIP customers about investigations, Treasury says (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.

Up first, Germany leads the EUSSR into recession since the US Navy blew up Germany’s cheap natural gas pipelines from Russia and with them Germany, and much of the EU’s business model. With friends like these who needs enemies?

EU budget in peril as bloc set to place staggering 12 countries on 'watch list'

November 21, 2023

The European Union is expected to place a staggering 12 countries on its fiscal watchlist as the bloc's budget comes under pressure.

According to sources speaking to Bloomberg, France is at risk of flouting guidance and Germany and Italy are expected to be deemed not fully compliant.

A 'watch list' of countries is expected to be released today (November 21) as part of the European Commission's national budgets report for 2024. However, the verdict might still change before it's adopted by the commission.

In a confidential EU report, Belgium, Finland, and Croatia are also reportedly posing a threat to exceed budgetary targets. Austria, Latvia, Luxembourg, the Netherlands, Portugal, and Slovakia are grouped in with the bloc's largest economy, according to the report.

The EU's assessment comes after a pandemic-induced suspension of the fiscal regime, which had limited deficits to three percent of GDP.

The pause also allowed the EU to consider potential revisions to the entire budget rulebook governing the eurozone's diverse economies, known as the Stability and Growth Pact.

Being on the watch list doesn't necessarily mean there will be automatic repurcussions, but the EU commission must decide at a later stage whether to launch the 'excessive deficit procedure'.

In this case, the country in question must produce a plan for corrective action and policies it will follow, as well as deadlines for their achievement.

If the country's do not comply, financial penalties may be imposed as a result of this procedure, reports Bloomberg.

The news comes as the EU budget is already in trouble after Germany's ability to increase its payments to the EU budget as originally promised by the coalition led by Chancellor Olaf Scholz is fading away.

Last week, Scholz's government was dealt a blow by his country's constitutional court after a ruling blew a €60 billion (£52 billion) hole in the country's finances.

A government's plan to repurpose the sum left over from an emergency COVID-19 fund to finance its climate agenda was deemed unconstitutional by the court.

Now officials are worried the move will force the government to backtrack on its promise to increase its contributions to the EU budget.

Germany is also expected to face a double-dip recession going into the fourth quarter of the year. The EU powerhouse is expected to shrink again before the end of the year, according to a report by the Bundesbank on Monday.

The eurozone's largest economy has struggled this year due to factors such as high energy costs, weak global orders, and higher interest rates, leading to a deep industrial recession.

EU budget in peril as bloc set to place staggering 12 countries on 'watch list' (msn.com)

Wall Street 'prophet' who predicted the 2008 housing crash says the stock market could fall ANOTHER 30% and claims a recession is imminent

Gary Schilling said stocks called fall another 30 percent in doomsday prediction

Schilling also told the Julia La Roche show the US may already be in a recession

 22:25, 20 November 2023

A so-called Wall Street 'prophet' who predicted the 2008 housing crisis has warned that the US stock market could crash by another 30 percent as a recession looms.

Gary Schilling suggested that the S&P 500 could fall to its lowest level since the pandemic in a series of gloomy predictions about the economy.

But in lighter news Schilling also forecast that the Federal Reserve would succeed in its war on inflation and will begin cutting interest rates again next year. 

His comments come amidst a backdrop of economic volatility which last week saw the stock market experience a dreaded 'death cross' technical pattern - spooking investors.

 

At the same time inflation is still running at 3.2 percent - well above the Federal Reserve's 2 percent target - while benchmark interest rates are hovering at a 22-year high of between 5.25 and 5.5 percent.

Schilling - who now runs the consultancy A. Gary Schilling & Co. - told The Julia La Roche Show: 'I've been of the opinion that stocks would decline about 30 percent to 40 percent, peak to trough. 

'You'd have a further decline of about 30 percent from here to get to that 40 percent overall decline.'

This analysis implies the S&P 500 could fall to around 2,900 points. Schilling went onto suggest that the US may have already entered a recession. 

'We probably do have a recession coming shortly, if we're not already in it — nobody rings the bell,' he said. 

'If you look at many of the major indicators that are reliably forerunners of recessions, when you look at that combination of things, it's pretty hard to escape a recession.'

He pointed to the inverted bond yield curve among the key indicators a recession was on its way. 

The yield curve is a closely-tracked economic indicator which is defined as the spread between long and short-term Treasury bonds. 

When short-term bonds offer higher yields than long-dated ones, the curve is said to be 'inverted.' This pattern is widely recognized as an indicator of a recession.

Schilling also criticized the slow pace at which the Fed has gotten a grip on inflation. 

He told La Roche: 'The Fed was very much late to the party. They had a huge credibility problem, and I think that's a strong reason they've decided they are going to kill inflation. 

'They realize that if they don't, their credibility will be very seriously impaired, and they'll have a much tougher time later.'

He added: 'There's a growing realization that the Fed is serious, that they're going to kill inflation, that recession is probably the price of that, and that the Fed is restoring its credibility.'

And on top of that he labelled the commercial real estate market a 'bubble' which is soon set to boost. 

Fears have been growing for the viability of commercial real estate following the pandemic-induced 'work from home' boom which has slashed the need for office rentals. 

Schilling likened the impending crisis to the house market crash in 2008. 

'I think the biggest bubble right now is commercial real estate. This isn't of the magnitude of the subprime-mortgage bonanza, but I think it is a bubble which is beginning to crack,' he said.

Wall Street 'prophet' who predicted the 2008 housing crash says the stock market could fall ANOTHER 30% and claims a recession is imminent | Daily Mail Online

Covid-19 Corner

This section will continue until it becomes unneeded.

Symptoms Of COVID-19 Usually Last Around 10 Days

Mon, 20 November 2023 at 6:19 pm GMT

At this point, you probably have the COVID basics down and know how to lower your risk of getting sick and all about testing options. But the disease has changed since it first turned the world upside down in 2020 and, with it, it’s only natural to have questions now like, “how long does COVID last these days?” After all, we’ve faced several forms of this virus, from Delta to Omicron.

Especially if you’ve been diagnosed with COVID, it’s understandable to wonder how much longer this virus will take for your body to kick it. Will you feel better quickly or can you expect this to drag out?

Unfortunately, there’s no set time frame on when you’ll get better, and some people struggle with the side effects of "long COVID." There is still plenty of research to be done on these cases, but in the meantime, taking expert advice is crucial.

Here’s what doctors have to say about how soon most people can expect to feel better with COVID, plus which symptoms seem to linger and what you can do to recover faster.

Meet the experts: Ramprasad Gopalan, MD, is a Wellington, Florida-based infectious disease physician. Eudene Harry, MD, is an emergency medicine physician in Orlando, Florida. Amesh A. Adalja, MD, is a senior scholar at the Johns Hopkins Center for Health Security. Thomas Russo, MD, is a professor and chief of infectious diseases at the University at Buffalo in New York. William Schaffner, MD, is an infectious disease specialist and professor at the Vanderbilt University School of Medicine.

More

Symptoms Of COVID-19 Usually Last Around 10 Days (yahoo.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.

Groundbreaking Achievement: Printable Concrete Now Printing Graphene Reinforced Concrete Reliably

Atif Sharif   

Printable Concrete, a forerunner in 3D construction technology, has set a new industry standard with the successful printing of graphene reinforced concrete on their 3D concrete printer developed in-house. This significant achievement by Christopher Howard, the company’s founder and a visionary in the field, marks a pivotal moment in the evolution of construction practices towards greater sustainability and resilience and artistic freedom of creation.

 

Christopher Howard, whose background as a mechanical engineer and sailor has deeply influenced his approach to innovation, expressed his enthusiasm for this breakthrough. “The introduction of graphene into our 3D printing methodology will be transformative” he stated. “Not only does it elevate the structural strength of our builds, but it also resonates with our core values of sustainable and forward-thinking construction. This leap in material strength will allow the creation of structures never before possible.”

 

The graphene reinforced concrete produced by Printable Concrete stands out for its superior strength and longevity. It’s particularly suitable for diverse building projects, encompassing residential properties and elaborate commercial developments. The company’s advanced 3D printing technology meticulously prints every component of a structure, including walls, floors, and intricate architectural features. This precision ensures optimal utilization of materials, contributing to the construction’s overall strength and durability.

 

This innovative approach by Printable Concrete presents significant cost and time efficiencies compared to conventional building methods. The integration of graphene could lead to cost reductions ranging from 5-20% and time savings of up to 90%. This development is expected to catalyze a paradigm shift in the construction sector, unlocking new horizons in design, environmental responsibility, and robust building solutions.

 

“Today’s achievement is a milestone not just for Printable Concrete but for the construction industry at large” Howard remarked. “We are proud to introduce a product that not only offers economic benefits but also stands as a symbol of progressive and eco-friendly construction practices.”

 

Printable Concrete’s venture into graphene reinforced concrete printing is particularly significant in the context of developing sustainable floating homes. The unique properties of graphene, such as its lightweight nature and immense strength, are crucial in creating floating structures that are both durable and environmentally sustainable. By harnessing these qualities, Printable Concrete aims to revolutionize the concept of living on the water, offering floating homes that are not only aesthetically pleasing but also resilient against various environmental challenges.

 

As Printable Concrete continues to explore the vast potential of 3D printing in construction, the company invites interested individuals and industry professionals to learn more about their groundbreaking graphene reinforced concrete and other innovative solutions. Further information is available on the company’s website, with regular updates and insights shared on their social media platforms.

Groundbreaking Achievement: Printable Concrete Now Printing Graphene Reinforced Concrete Reliably - TechBullion

"Professor, you are an educated man," said Mrs. Blemmer. "What will people say about this time in a hundred years?"
[...]
"Dear Mrs. Blemmer, to be honest, I don't know. But I hope that it will not be forgotten that it was people who drove us out, that it was people who built this ghetto, that it is people who shoot out there, that it is people who set these trains in motion."

"That they're people? Do you want to understand, Menden?"

"No, that's not what I mean. There are force majeures, hurricanes and earthquakes. But what we are witnessing here is not a natural disaster, but the work of people."

Astrid Rosenfeld. Warsaw Ghetto Uprising 1943. Gaza 2023? 

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