Friday, 1 December 2023

War Resumes. OPEC+ Extends Production Cuts.

Baltic Dry Index. 2937 +241         Brent Crude  80.72

Spot Gold 2041                  US 2 Year Yield 4.73 +0.09

The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.

Adam Smith, The Wealth Of Nations, 1776.

The big news this morning is that the seven day truce on war in the Gaza Ghetto has ended. Let the killing resume on industrial scale once again. If it does, ignoring Biden and Blinken’s instruction to Israel to moderate the killing of women and children, a wider regional war looms before Christmas.

In the stock casinos, onward and upward into December?

Well maybe, but in the real world far from the central bankster fuelled money spigots, a massive global property bust is underway from China through Europe and out to the USA. Nothing good happens for the wider economy when real estate markets stumble.

Asia markets slide as investors assess factory activity private surveys; China manufacturing clocks surprise growth

UPDATED FRI, DEC 1 2023 12:37 AM EST

Asia-Pacific markets started Friday lower, breaking ranks with Wall Street which mostly advanced on Thursday, amid mixed economic data from across the region.

Most notably, investors assessed China’s Caixin manufacturing purchasing managers’ index for November, which showed that the sector unexpectedly expanded.

The Caixin PMI reading came in at 50.7, compared to 49.5 in October and beating a Reuters poll forecast of 49.8.

This comes after official numbers Thursday showed the country’s manufacturing sector contracted for a second straight month.

In Australia, the S&P/ASX 200 inched down 0.2% and closed at 7,073.2, ending a three-day winning streak.

South Korea’s Kospi slid 0.76%, while the small cap Kosdaq was down 0.21%.

Japan’s Nikkei 225 was marginally below the flatline, but the Topix bucked the trend and rose 0.35%.

Hong Kong’s Hang Seng index fell 0.3% at open, while China’s CSI 300 index dropped 0.57%.

Overnight in the U.S., the Dow Jones Industrial Average reached a new high for the year, as cooling inflation data and strong Salesforce earnings help the benchmark cap its best month since October 2022.

The S&P 500 added 0.4%, but the Nasdaq Composite was about 0.2% lower as investors took some profits in Big Tech stocks that have led the November comeback.

Separately, the U.S. personal consumption expenditures price index — the Federal Reserve’s favorite inflation gauge — rose 3.5% on a year-over-year basis, slowing from a 3.7% annual gain in prior month.

Asia stock markets today: Live updates, PMI readings, U.S. inflation (cnbc.com)

Stock futures mixed on Friday after Dow notches new high for the year: Live updates

UPDATED FRI, DEC 1 2023 12:26 AM EST

Stock futures were mixed on Friday morning after the Dow Jones Industrial Average notched a new 2023 high and capped off its best month in more than a year.

Futures tied to the 30-stock index extended gains marginally and climbed 20 points, or 0.06%, while S&P 500 futures and Nasdaq-100 futures slipped 0.0.6% and 0.2%, respectively.

Disney shares moved up less than 1% in extended trading after the entertainment giant reinstated its dividend. Ulta Beauty jumped nearly 12% on strong quarterly results.

Thursday’s overnight moves come on the heels of an exhilarating end to a blowout November rally. The Dow Jones Industrial Average surged 520 points, or 1.47%, to settle at 35,950.89 and top its previous 2023 high hit in August. The S&P 500 rose 0.4%, while the Nasdaq Composite slipped about 0.2%.

Stocks finished off a record November during Thursday’s session and snapped a three-month losing streak. The S&P and Nasdaq rallied 8.9% and 10.7%, respectively, to notch their best monthly performances since July 2022. The Dow surged 8.8% for its best month since October 2022.

Both the Dow and S&P are also headed for a winning week, with the Dow on pace to hit a fifth consecutive winning week for the first time in more than two years. The Nasdaq is down about 0.2% week to date and is slated to snap a four-week wining streak.

Despite Thursday’s big market win and November’s upbeat market sentiment, some on Wall Street are advising that investors remain cautious into year-end and 2024.

“Everyone’s really happy and it’s time for either a correction or some sort of pullback as we enter the new year,” Wells Fargo’s Chris Harvey told CNBC’s “Closing Bell” on Thursday.

The head of equity research added that the market looks “dramatically overbought,” rate cuts seem unlikely until the second half of 2024, and that investors should consider getting defensive.

Looking ahead, earnings reports from Dominion Energy, Gartner and Cardinal Health are due out Friday. Construction spending for October and ISM Manufacturing data for November are also on deck.

Stock market today: Live update (cnbc.com)

In other news, to no one’s surprise OPEC+ production cuts will continue into 2024. But with a slowing global economy, will that be enough to hold Brent crude priced in the 80s?

Oil kingpin Saudi Arabia extends its production cut into first quarter as OPEC+ holds policy

The influential Organization of the Petroleum Exporting Countries coalition and its allies, collectively known as OPEC+, on Thursday opted against formally deepening production cuts, while de facto leader Saudi Arabia extended its 1 million barrel per day voluntary trim into the first quarter, and other members announced further reductions.

The policy steps were decided in a virtual meeting delayed by internal disagreements over the baselines — the levels off which quotas are decided — of the OPEC group’s largest West African members, Nigeria and Angola. The spat postponed talks initially scheduled to be held in person in Vienna over the weekend of Nov. 25-26. The baselines of Angola, Nigeria and Congo remain under study.

The OPEC+ alliance had already instituted a 2 million barrel per day cut in place until the end of 2024, with several coalition members voluntarily pledging a further 1.66 million barrel per day decline over that same period.

While OPEC+ has not formally endorsed production reductions, market participants are following the possibility of further voluntary cuts announced by key participants to the coalition. Already, Saudi state media has announced that Riyadh will extend its voluntary reduction of 1 million barrels per day, which it has had in place since July, until the end of the first quarter of 2024.

Russian Deputy Prime Minister Alexander Novak, who represents his country in OPEC+ affairs, has said Moscow will implement a voluntary supply cut totaling 300,000 barrels per day of crude and 200,000 barrels per day of petroleum products over that same period, according to a Google-translated statement on Telegram.

Close Saudi ally Kuwait will enforce a 135,000 barrel per day reduction in the first quarter, while the Energy Ministry of OPEC member Algeria said it would trim a further 51,000 barrels per day. Oman said it will also reduce output by 42,000 barrels per day in that same period.

Riyadh to extend 1 million-barrel-per-day cut as OPEC+ holds policy (cnbc.com)

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices…. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies, much less to render them necessary.

Adam Smith, The Wealth Of Nations, 1776.

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.

Asia factory activity weakens, uncertainty on China clouds outlook

By Leika Kihara 

TOKYO, Dec 1 (Reuters) - Asia's factory activity remained weak in November on soft global demand, surveys showed on Friday, with mixed signs on the strength of China's economy clouding the outlook for the region's fragile recovery.

China's private Caixin/S&P Global manufacturing purchasing managers' index (PMI) unexpectedly rose to 50.7 in November from a 49.5 reading in October, exceeding the 50 mark separating growth from contraction and surpassing analysts' forecasts.

 

The reading came a day after official survey that showed a contraction in both manufacturers' and non-manufacturers' activity, underscoring deepening troubles in the world's second largest economy.

 

"The domestic market cannot make up for losses in Europe and the United States. The data shows that factories are producing less and hiring fewer people," Dan Wang, chief economist at Hang Seng Bank China, said of China's PMI readings, which have different samples.

Export-reliant Japan, South Korea and Taiwan bore the brunt of sluggish global demand with their manufacturing activity remaining stagnant in November, surveys showed.

"It's hard to expect a recovery in Asia any time soon," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "While exports probably hit bottom, they won't accelerate much from here as the global economy lacks a key driver of growth."

Japan's final au Jibun Bank manufacturing PMI fell to 48.3 in November from 48.7 in October, shrinking at the fastest pace in nine months.

South Korea's PMI stood at 50.0 in November, rising slightly from October's reading of 49.8. The factory gauge rebound came after 16 straight months of contraction through October, the longest downturn since the survey began in April 2004.

Manufacturing activity also shrank in Taiwan, Vietnam and Malaysia, but expanded in India, Indonesia and the Philippines, the surveys showed.

More

Asia factory activity weakens, uncertainty on China clouds outlook | Reuters

French economy contracts in Q3, inflation eases further

PARIS, Nov 30 (Reuters) - The French economy contracted by 0.1% in the third quarter of the year, revised data from the statistics office INSEE showed on Thursday, while November inflation eased more than expected.

The contribution of gross fixed capital formation, which indicates how much of the new value added in an economy is invested rather than consumed, to France's national output was revised considerably downwards, while the contribution of domestic demand also slowed to 0.2 points, INSEE said.

The stats office said the contribution of external trade, at -0.4 points, had also negatively impacted gross domestic product (GDP) during the third quarter, as imports grew.

In November, the EU-harmonised preliminary inflation came to 3.8% year-on-year, below a Reuters poll of 19 economists, which had predicted a figure of 4.1%. The inflation was down from 4.5% in October, helped by easing price pressure in energy and in the services sector.

Food prices rose 7.6% in November, versus 7.8% in October while the increase in energy prices slowed to 3.1% after seeing an increase of 5.2% last month.

Month-on-month, prices declined by 0.2% as falling transportation and energy prices offset a month-on-month rise of food prices, especially fresh produce.

Despite the unexpected economic contraction, the government kept its 1% growth forecast for 2023.

"I maintain my growth forecasts. We will have positive growth this year and higher growth in 2024 than in 2023," Economy Minister Bruno Le Maire said on French radio, adding that he was sticking with his forecast of 1.4% growth next year.

French economy contracts in Q3, inflation eases further | Reuters

These 16 states are already in a recession

November 29, 2023

The economies of 16 US states contracted between July and October, even as economists are still betting the US can avoid a recession.

The latest State Coincident Indexes release from the Federal Reserve Bank of Philadelphia shows a third of state economies contracted during the three-month period, compared to just nine states between June and September. Between July and October, the indexes increased in 33 states and remained stable in one state.

These changes were most pronounced in West Virginia, with a three-month contraction of over 2.7%. Michigan and Montana also had contractions of over 1%, while Missouri, Illinois, and Iowa had declines of about 0.8%.

Meanwhile, Maryland, North Dakota, and South Carolina had economic growth of over 1% during the period. Texas came in at 0.85%, similar to Nevada and Wyoming. California's economy grew by 0.47%, while Florida experienced a 0.65% increase.

Among the 10 states with the highest GDPs, seven — California, Texas, Florida, Pennsylvania, Ohio, Georgia, and North Carolina — are growing their economies, according to the three-month data.

This growth "should be enough to keep the US economy as a whole from falling into recession this quarter," DataTrek Research cofounders Nicholas Colas and Jessica Rabe said in a note on Monday. "How these trends develop through the balance of Q4 will tell us a lot about the state of the US economy as we enter 2024."

Looking at month-over-month rates, 27 states experienced economic contraction, while 16 states saw economic growth.

A recession occurs when an economy suffers a widespread and severe downturn across different dimensions. The state coincident indexes capture several of those dimensions across labor markets, industrial production, and people's real incomes.

The coincident indexes pull together four state-level indicators, including nonfarm payroll employment, the unemployment rate, average hours worked in manufacturing by production workers, and wage and salary disbursements deflated by the consumer price index. Those measures echo the metrics the National Bureau of Economic Research tracks to determine whether the national economy as a whole is in a recession.

Experts remain divided on whether the US will avoid a recession in 2024. Some believe a recession is likely in 2024, including Citadel founder Ken Griffin, who told Bloomberg he expects to see a "recessionary environment" around the second quarter.

Others, though, think a recession may not arrive until 2025 — or may not occur at all. Raphael Bostic, the president of the Atlanta Federal Reserve, told CNBC, "We are not going to see recession, that is not in my outlook. We are going to see a slowdown, and inflation will get down to 2%."

These 16 states are already in a recession (msn.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

DNA Contamination in COVID-19 Vaccines May Explain Rise in Cancers, Clots, Autoimmune Diseases: Pathologist

Clinical pathologist and immunology specialist Dr. Ryan Cole said that DNA contamination in some COVID-19 vaccines may be linked to a rise in various cancers.

11/28/2023 Updated: 11/28/2023


Clinical pathologist Dr. Ryan Cole has said that DNA contamination in some COVID-19 vaccines may be related to an increase in cancers, micro-clotting, and autoimmune diseases.

“My big concern is the fact that billions of people across the earth have received a product that was overtly contaminated with something that should not have been in the product," Dr. Cole, an anatomic clinical pathologist with postgraduate Ph.D. training in immunology, recently told the "American Thought Leaders" program.

"If I went and bought some meat at the grocery store and they had heavy metal or pesticide toxins, they would pull those from the shelves immediately," he added.

Recently, researchers found that vaccine vials containing Pfizer's COVID-19 vaccines had billions of residual DNA fragments, including molecules derived from Simian Virus 40 (SV40) used as "promoters" or "enhancers" that help produce the mRNA molecules that help human cells make proteins that trigger an immune response inside the body.

Monkey Virus 'Enhancers' in Vaccines

SV40 is a monkey polyomavirus that has been linked to cancer in laboratory animals. While the virus itself was not found to be present in Pfizer's COVID-19 vaccine, the presence of the SV40 enhancer gene is controversial because it comes from a virus associated with malignant transformation. However, some experts have raised concerns that the SV40 enhancer itself may be associated with adverse events.

Dr. Cole believes that the SV40 enhancer has health risks, saying it contains a "concerning" nuclear co-localization sequence that "allows it to get into the nucleus of the cell and to induce these different pathways of action and mechanisms that can, again, go haywire, mutate, cause toxicity."

Molecular virologist David Speicher, the lead author of the study that found SV40 enhancers in COVID-19 vaccines, told The Epoch Times in a recent interview that much more research is needed to investigate DNA contamination in the COVID-19 vaccines. Unanswered questions include whether the SV40 sequence in the vaccines is triggering "turbo cancers," meaning ones of a particularly aggressive and fast-growing variety, he said.

recent review of cancer registry records from 44 countries found a rapid rise in the incidence of early-onset cancers for 14 types—including colorectal, breast, esophageal, gastric, and pancreatic cancers—especially in younger adults.

More

DNA Contamination in COVID-19 Vaccines May Explain Rise in Cancers, Clots, Autoimmune Diseases: Pathologist | 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.

A new kind of solar cell is coming: is it the future of green energy?

Firms commercializing perovskite–silicon ‘tandem’ photovoltaics say that the panels will be more efficient and could lead to cheaper electricity.

29 November 2023

On the outskirts of Brandenburg an der Havel, Germany, nestled among car dealerships and hardware shops, sits a two-storey factory stuffed with solar-power secrets. It’s here where UK firm Oxford PV is producing commercial solar cells using perovskites: cheap, abundant photovoltaic (PV) materials that some have hailed as the future of green energy. Surrounded by unkempt grass and a weed-strewn car park, the factory is a modest cradle for such a potentially transformative technology, but the firm’s chief technology officer Chris Case is clearly in love with the place. “This is the culmination of my dreams,” he says.

The firm is one of more than a dozen companies betting that perovskites are finally poised to push the global transition to renewable energy into overdrive. A few niche perovskite-based PV products are already on the market, but announcements this year signal that many more are set to join them. Case says that end users should get their hands on solar panels made from Oxford PV’s cells around the middle of next year, for example. In May, a large silicon PV manufacturer, Hanwha Qcells, headquartered in Seoul, said it plans to invest US$100 million in a pilot production line that could be operational by the end of 2024.

Silicon is the workhorse material inside 95% of solar panels. Rather than replace it, Oxford PV, Qcells and others are piggybacking on it — layering perovskite on silicon to create so-called tandem cells. Because each material absorbs energy from different wavelengths of sunlight, tandems could potentially deliver at least 20% more power than a silicon cell alone; some scientists project much greater gains.

Perovskite supporters say that this extra electricity could more than offset the additional costs of tandem cells, particularly in crowded urban areas or industrial sites where space is at a premium. “Our biggest initial demand is from utilities, because they simply don’t have enough accessible land,” says Case.

As perovskite–silicon tandems get closer to market, excitement has boiled over into headlines predicting that a “revolutionary” “miracle material” is “about to change the world”. The reality is that the industry faces at least two major challenges in its battle to transform the solar market.

First, published research shows that the perovskites’ performance declines much more quickly than silicon when they are exposed to moisture, heat and even light. Oxford PV says it has done private research that’s overcome this issue. But “for commercial manufacturing, I would say stability is the key challenge that still remains”, says Fabian Fertig, Qcells’ director of research and development for wafers and cells, who leads the company’s development of perovskite–silicon tandems.

More

A new kind of solar cell is coming: is it the future of green energy? (nature.com)

Another weekend and the Gaza killing resumes. How long it stays localised is an open question, but nothing good for anyone lies down this path.

There's no honorable way to kill, no gentle way to destroy. There is nothing good in war. Except its ending.

Abraham Lincoln.

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