Thursday, 21 December 2023

The Casinos And China Turn Chilly. Yet Another EV Bust.

Baltic Dry Index. 2150 -69           Brent Crude  79.65

Spot Gold 2035                  US 2 Year Yield 4.34 -0.07

Christmas is coming and the geese are getting fat, Please put a trillion in the banksters’ hat. If you haven’t got a trillion a billion will do, If you haven’t got a billion, God damn you!

Ebenezer Squid.

In the stock casinos, a major wobble. Why take on year-end profit taking risk when you can book winners, drop losers and ride out next week’s holiday shortened trading week safely parked in one, two and three month US T. Bills earning over 5 percent.


Asia markets track Wall Street decline, but China and Hong Kong reverse earlier losses

UPDATED THU, DEC 21 2023 12:30 AM EST

Most Asia-Pacific markets fell Thursday after Wall Street dropped overnight, while investors awaited gross domestic product reading and inflation numbers from the U.S.

However, Hong Kong’s Hang Seng index reversed earlier losses to rise 0.31%, while the mainland Chinese CSI 300 climbed 0.73%.

Economists polled by Reuters expect the U.S. economy to post a 5.2% year-on-year growth in the third quarter, while the Personal Consumption Expenditures price index is expected to climb 2.3% in the same period — its slowest rise since the fourth quarter of 2020.

In Australia, the S&P/ASX 200 was down 0.45%, closing at 7,504.1

Japan’s Nikkei 225 plunged 1.50%, while the Topix fell 0.9%, dragged by safety scandals at automaker Toyota.

South Korea’s Kospi also dropped 0.77% and the small-cap Kosdaq shed 0.34%, on pace to snap a three-day winning streak.

Overnight in the U.S., all three major indexes lost ground as investors took some profits, after nine straight days of gains for the Dow Jones Industrial Average and the Nasdaq Composite.

The Dow slid 1.27%, while the tech heavy Nasdaq tumbled 1.5%. The broader S&P 500 declined 1.47%, after coming within 1% of its all time high of 4,796, hit in January 2022.

Asia stock markets today: Live updates, South Korea PPI, Indonesia interest rates (cnbc.com)

S&P 500 futures inch higher after the index’s worst session since September: Live updates

UPDATED WED, DEC 20 2023 7:54 PM EST

Stock futures edged higher Wednesday night after the recent market rally took a breather.

S&P 500 futures added 0.16%, while the Nasdaq 100 futures advanced 0.24%. Futures connected to the Dow Jones Industrial Average climbed 56 points, or 0.15%.

Micron jumped more than 4% in postmarket action after beating Wall Street expectations for the first three months of its new fiscal year. The company also offered current-quarter guidance that exceeded analysts’ consensus forecasts.

The moves follow a losing day on Wall Street, during which investors took profits after recent gains. The S&P 500 dropped almost 1.5%, its worst day since September.

The Dow and Nasdaq slipped about 1.3% and 1.5%, respectively, to notch their worst sessions since October. Wednesday’s session also also snapped nine-day winning streaks for both.

Those drops mark a breather from the recent market rally. From their late October closing lows through Tuesday, the Dow and S&P 500 both jumped more than 15%. The Nasdaq Composite surged roughly 19% over the same period.

“The markets have run so strongly for so long,” said Rob Haworth, senior investment strategist at U.S. Bank Asset Management. “There’s maybe just some exhaustion in terms of buyers, and we’re starting a bit of a short-term consolidation phase.”

Investors will watch Thursday for data on jobless claims and the third-quarter gross domestic product before Friday’s reading of the personal consumption expenditures price index, which is a closely followed gauge of inflation. Traders will also monitor Nike earnings expected Thursday after the bell.

Stock market today: Live updates (cnbc.com)

Exporters explore cargo flights as way out of deepening Red Sea bottleneck

By Jonathan SaulHelen Reid and Corina Pons

LONDON/MADRID, Dec 20 (Reuters) - Exporters are scrambling to find alternative air, land and ocean routes to get toys, apparel, tea and auto parts to retailers as disarray ripples through freight supply chains around the world during a wave of attacks in the Red Sea.

Iran-backed Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea since Nov. 19 to show support for Hamas during Israel's military offensive in Gaza.

The attacks have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal. Container shipping costs have surged, more than tripling in some cases, as companies seek to move goods via other, often longer, ocean routes.

 

If there are extended disruptions, the consumer goods sector that supplies the world's top retailers like Walmart and IKEA will face the biggest impact, S&P Global said in a report.

Alan Baer, CEO of OL USA, has teams advising shipping and logistics clients to prepare for at least 90 days of Red Sea disruptions.

"It doesn't help that it's Christmas weekend," said Baer. "We'll have a quiet period from now until Jan. 2, and then everybody will be frenetic."

Some fast-acting companies already are trying to switch to so-called intermodal transport, which can involve two or more modes of transportation, said Jan Kleine-Lasthues, chief operating officer airfreight with leading German freight forwarder Hellmann Worldwide Logistics.

Hellmann has seen increased demand for combined air and sea routing for consumer goods like apparel as well as electronics and tech items, he said. For example, that could mean goods being transported first by sea to a port in Dubai, where they are then loaded onto planes.

"This alternative route allows customers to avoid the danger zone in the Red Sea and the long voyage around the southern tip of Africa," Kleine-Lasthues told Reuters.

While companies moving urgent or critical items might opt to use air freight, the expense means it is not a blanket solution, said Paul Brashier, vice president of Drayage and Intermodal for supply chain group ITS Logistics.

Moving goods by air costs roughly 5-15 time more than by sea, where container shipping rates are still low by historical standards, said Brian Bourke, global chief commercial officer at SEKO Logistics.

If the time it takes to get goods to shelves doubles, more shippers will switch to air - especially for high value goods like designer clothing and high-end electronics, said Bourke, who has already received queries from customers.

More

Exporters explore cargo flights as way out of deepening Red Sea bottleneck | Reuters

In other news, so you really, really, want to invest in EVs. Shanghai turns chilly.


Electric scooter company Bird files for bankruptcy

The electric scooter company Bird, once valued at $2.5 billion by investors, filed for Chapter 11 bankruptcy protection in Florida federal court Wednesday.

The company has entered into a “stalking horse” agreement, which sets a floor for Bird’s value, with its existing lenders, according to a releaseBird said it will use the bankruptcy proceeding to facilitate a sale of its assets, which it expects to complete within the next 90 to 120 days.

Bird’s electric scooters are touted as an environmentally friendly alternative to driving and other forms of public transit. They exploded in popularity before the onset of the Covid-19 pandemic, and the company raised more than $275 million in 2019, which pushed its valuation to $2.5 billion.

But after customers stopped riding as they were forced into lockdown in 2020, Bird struggled to recover. The company went public via a merger with a special purpose acquisition company in 2021, but its share price tumbled.

Bird’s bankruptcy proceedings come after the New York Stock Exchange delisted the company in September. Bird failed to comply with the exchange’s requirements after it was unable to keep its market capitalization above $15 million for 30 consecutive days.

The company’s shares began trading on the over-the-counter exchange later that month. As of Wednesday, the stock was trading at less than $1 per share.

Bird Canada and Bird Europe are not part of the company’s Wednesday filing and will “continue to operate as normal,” according to the release.

Electric scooter company Bird files for bankruptcy (cnbc.com)

China's cold snap reaches Shanghai with chilliest year-end in 40 years

By Casey Hall and Ryan Woo 

SHANGHAI, Dec 21 (Reuters) - China's financial hub Shanghai was set to record its chilliest period in December in four decades, spurring authorities to issue warnings for low temperatures and wind, while northern cities battled icy conditions forecast to ease only next week.

The city's lowest temperatures on Thursday will be minus 4 to minus 6 degrees Celsius (21 to 24 degrees Fahrenheit) in Shanghai's suburbs, and temperatures will remain below zero all day throughout the city, the Shanghai Meteorological Bureau said in a post on its Weibo social media account.

Wang Kaiyun, 59, who works as a cleaner in downtown Shanghai and commutes from the city's suburbs on an electric scooter, said the temperature was minus 5 C on her one-hour ride in on Thursday.

"Even though I was wearing gloves, I quickly lost feeling in my hands and they are still painful now," Wang said.

While the city's temperatures remain far warmer than those in northern China, where many provinces have recorded historically low temperatures in recent weeks, the run of cold weather was unusual for Shanghai.

The city's weather bureau said it expects the minimum temperature at one downtown reading station to remain below zero for five straight days until Dec. 25, a run of cold in the month of December that hasn't occurred in 40 years.

The unusually frigid weather ushered in by a powerful wave of cold air from Siberia has spread across China since the middle of last week, with many northern provinces rewriting December records as the mercury sank as low as minus 30 C in some cities.

While the snowfall was modest compared to deep snowdrifts and blizzards seen in North America and Europe, the bitter cold, ice and gusty conditions in China have disrupted road, rail and air transportation, sharply increased demand for heating, and even hampered rescue efforts in the northwest where an earthquake destroyed over 200,000 homes.

In Lvliang, a city of 3 million people in the province of Shanxi, firefighters had to put out a fire in a building even as their protective helmets and jackets quickly became encased in ice in minus 18 C conditions, state media reported on Thursday.

The cold snap has also threatened to freeze China's busy online food delivery sector. On social media, some people have expressed their reluctance to order takeout in the extreme cold due to worries for the safety of delivery drivers.

Their concerns prompted the official Workers' Daily on Thursday to urge people "not to dwell on narratives of suffering", but instead, think of the potential loss of income for delivery drivers.

The prolonged sub-freezing conditions across China are expected to ease from Friday, with temperatures rising back to historical averages next week, according to national forecasters.

China's cold snap reaches Shanghai with chilliest year-end in 40 years | Reuters

Finally, AI can’t hold patents, at least in the UK (and US?) unless in the UK Parliament changes existing UK law.

 

AI cannot be patent 'inventor', UK Supreme Court rules in landmark case

LONDON, Dec 20 (Reuters) - A U.S. computer scientist on Wednesday lost his bid to register patents over inventions created by his artificial intelligence system in a landmark case in Britain about whether AI can own patent rights.

Stephen Thaler wanted to be granted two patents in the UK for inventions he says were devised by his "creativity machine" called DABUS.

His attempt to register the patents was refused by Britain's Intellectual Property Office on the grounds that the inventor must be a human or a company, rather than a machine.

Thaler appealed to the UK's Supreme Court, which on Wednesday unanimously rejected his appeal as under UK patent law "an inventor must be a natural person".

"This appeal is not concerned with the broader question whether technical advances generated by machines acting autonomously and powered by AI should be patentable," Judge David Kitchin said in the court's written ruling.

"Nor is it concerned with the question whether the meaning of the term 'inventor' ought to be expanded ... to include machines powered by AI which generate new and non-obvious products and processes which may be thought to offer benefits over products and processes which are already known."

Thaler's lawyers said in a statement that "the judgment establishes that UK patent law is currently wholly unsuitable for protecting inventions generated autonomously by AI machines".

Thaler earlier this year lost a similar bid in the United States, where the Supreme Court declined to hear a challenge to the U.S. Patent and Trademark Office's refusal to issue patents for inventions created by his AI system.

Giles Parsons, a partner at law firm Browne Jacobson, who was not involved in the case, said the UK Supreme Court's ruling was unsurprising.

"This decision will not, at the moment, have a significant effect on the patent system," he said. "That's because, for the time being, AI is a tool, not an agent.

"I do expect that will change in the medium term, but we can deal with that problem as it arises."

AI cannot be patent 'inventor', UK Supreme Court rules in landmark case | 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.

Big UK inflation drop bolsters bets on Bank of England cuts early next year

By Andy Bruce and David Milliken 

LONDON, Dec 20 (Reuters) - British inflation plunged in November to its lowest rate in over two years, prompting investors to pile further into bets that the Bank of England will cut interest rates in the first half of next year.

The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in October, pushed down in part by cheaper petrol, for its lowest reading since September 2021, the Office for National Statistics said on Wednesday.

The headline Consumer Prices Index (CPI) inflation reading was below all forecasts in a Reuters poll of economists which had pointed to a figure of 4.4%. Core and services measures of inflation - closely watched by the BoE - also dropped.

Investors moved to fully price in a BoE rate cut by May 2024 and now see a nearly 50% chance of a cut by March. The pound shed almost half a cent against the U.S. dollar, falling from $1.271 to $1.266. British government bond yields also tumbled.

With its headline rate of inflation now matching that of France, Britain no longer looks like such an outlier in international terms. But the almost 21% rise in consumer prices since 2020 is still more than any other Group of Seven advanced economy and the joint-highest increase in western Europe.

CPI inflation peaked at a 41-year high of 11.1% in October 2022, driven higher by a surge in energy prices after Russia's full-scale invasion of Ukraine, which aggravated existing bottlenecks that were pushing up prices after the COVID-19 pandemic.

BoE officials have been cautious about whether recent signs of cooling inflation truly represent a sign that persistent, longer-run price pressures are receding, but economists said the latest figures may prompt a rethink.

"This provides strong evidence that disinflationary pressures are building in the UK," PwC economist Jake Finney said. "Headline, core and services inflation are all now materially below the Bank of England's expectations in their last November Monetary Policy Report."

The ONS said transport - and particularly motor fuels - was the biggest downward contributor to inflation in November. Fuel prices were 10.6% lower than the year before.

A much smaller monthly rise in food and drink prices than in November last year also helped, although they remain 27% higher than two years ago and have risen more than 9% in the past 12 months.

More

Big UK inflation drop bolsters bets on Bank of England cuts early next year | Reuters

Covid-19 Corner

This section will continue until it becomes unneeded.

The New COVID Variant JN.1 Has More Tricks Than Previous Ones

A new SARS-CoV-2 variant arrived at year-end. At the same time, "white lung" pneumonia has increased substantially. Is the timing purely coincidental?

12/19/2023  Updated:  12/19/2023

The new JN.1 variant of COVID-19 has been spreading rapidly around the world. Notably, mainland China has witnessed a surge in crowded children's hospitals, reporting cases of "white lung syndrome" or "white lung" pneumonia and increased deaths since November. Similar occurrences were noted in the United States. Are they purely coincidental or is there a link between these two events?

Quickly Becoming a Global Trend

JN.1 was first detected in August. It has since been identified in 12 countries, including the United States.

According to the Centers for Disease Control and Prevention (CDC), in the United States, JN.1 rose from less than 0.1 percent of SARS-CoV-2 circulating viruses at the end of October to 15–29 percent as of Dec. 8.

It also spreads in Europe, including the United Kingdom, France, and Asia.

JN.1 Has Tricks

JN.1 originates from a subvariant of Omicron "Pirola"—BA.2.86 and is a recombinant form of two variants: the early BA.2 sublineage and the subsequent XBB lineage.

What's particularly concerning about JN.1 is its notable divergence from other recently prevalent variants.

Compared to XBB.1.5, JN.1 contains 41 additional unique mutations, with most of the changes, i.e., 28 located in the spike protein, one in the N protein, three in the M protein, eight in the ORF1a, and one in ORF 7b.

Dr. Ishii and other Japanese researchers used a kind of virus-like particle to mimic the infection process of a virus, with results showing that JN.1 has a significantly increased infectivity compared to Pirola, according to the preprint paper published in December.

Weakened Protection by XBB.1.5 Vaccine

An October preprint paper by Dr. Yunlong Cao from Peking University also showed the XBB variants' mutations at sites 455 and 456 that help these viruses further avoid the body's immunity, especially neutralizing antibodies.

In simpler terms, the virus adapts, making it harder for our immune system to fight it off, even if people have been vaccinated or had previous COVID-19 infections.

Notably, JN.1 contains a new mutation of L455S, making the latest XBB.1.5 vaccine less likely to protect against JN.1.

More

The New COVID Variant JN.1 Has More Tricks Than Previous Ones | The Epoch Times

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.

Today and tomorrow something different, 46 year on and sill working! Both Voyagers, and all done without AI.  When NASA really worked. Approx 14 minutes.

The Only Reason the Voyager Probes are Still Working Today

The Only Reason the Voyager Probes are Still Working Today (youtube.com)

"Why did the central bankster stare at the bottle of orange juice for two hours? Because the label said concentrate."

With apologies to Ken Dodd and blondes.


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