Baltic
Dry Index. 1507 +34
Brent Crude 80.43
Spot Gold 2015 US 2 Year Yield 4.34 +0.03
Bank for Emerging Economies
The New Development Bank (NDB) is a
multilateral development bank established by Brazil, Russia, India, China and
South Africa (BRICS) with the purpose of mobilising resources for
infrastructure and sustainable development projects in emerging markets and
developing countries (EMDCs).
Our strong mandate and potential put
us in a unique position to contribute to global growth and development.
About NDB - New Development Bank
In the stock casinos, it’s still bubble on. In the reality of the global economy, it’s war, slowing commercial activity, China and Europe leading the world into the next recession. Of concern, crude oi prices are rising again.
In global politics, 2024 the year of the Great Generational change except in the USA, where an 81 year old will attempt to cling on to power, challenged by a mere 77 year old. Even Hollywood couldn’t make this up.
A Great Crash lies ahead.
China and
Hong Kong stocks lead gains in Asia as markets reverse course by afternoon
trading
UPDATED THU, JAN 25 2024 12:36 AM EST
China and
Hong Kong stocks were firmly higher Thursday, leading gains in Asia-Pacific
markets after the People’s Bank of China said it would cut reserve requirements
for the country’s lenders.
The central bank announced it
would reduce
the amount of funds its banks are required to hold as reserves
early next month in a bid to boost its struggling economy.
Reserve ratio requirements for
banks will be cut by 50 basis points from Feb. 5, which will provide 1 trillion
yuan ($139.8 billion) in long-term capital, according to PBOC governor Pan
Gongsheng.
Hong Kong’s Hang Seng index index
reversed losses to jump 1.9%, while China’s CSI 300 rose 1.57%.
Shares
of EV makers fell, with Nio down 4.7%, Li Auto down 1.6% and
BYD sliding 1%. LG Display led declines in Tesla suppliers, down 3%.
Tesla warned
that vehicle volume growth in 2024 “may
be notably lower” than last year.
China’s Shenzhen Composite index
also reversed declines to rise 1.7%.
South Korea’s GDP grew 2.2% year
on year in the fourth quarter and 0.6% compared with the previous quarter,
beating expectations from a Reuters poll of 2.1% and 0.5% growth, respectively.
Shares of electric vehicle makers
and suppliers of Tesla in Asia-Pacific, however, fell after the U.S. automaker
warned of bleak volume growth.
Japan’s Nikkei 225 was
up 0.15% and the broad based Topix gained 0.11%, while South Korea’s Kospi was
flat and the small-cap Kosdaq dropped 0.8%.
In Australia, the S&P/ASX 200 closed
0.48% higher at 7,555.40.
Overnight in the U.S., the S&P 500 rose
Wednesday as Netflix led a broader rally among technology names,
pushing the broader market to new heights. Netflix shares surged more than 10%
after the streamer said its total subscriber count hit an all-time
high of 260.8 million.
The broad-based index eked out a
gain of 0.08% to clinch a new all-time closing high. The Nasdaq Composite rose
0.36% helped by the tech rally. It was the fifth straight day of wins for both
indexes.
In contrast, the Dow Jones Industrial Average fell
0.26%, to 37,806.39, dragged by Verizon and 3M a day after
they reported earnings.
Asia markets live updates: PBOC cuts RRR, South Korea GDP, Tesla warns of volume growth (cnbc.com)
European markets
head for a lower open ahead of ECB rate decision
UPDATED THU, JAN 25 2024 12:26 AM EST
European markets
are heading for a lower open Thursday as investors prepare for the latest
monetary policy decision from the European Central Bank.
The central bank is
expected to hold interest rates at their current record high after its monetary
policy meeting on Thursday. Markets are pricing in around a 60% probability of
the first rate cut taking place in April, according to a Reuters analysis of
LSEG data.
European markets traded higher Wednesday after
euro zone composite services and manufacturing purchasing manager’s index (PMI)
data indicated an uptick business activity in the single currency area, giving
investors a boost ahead of the ECB’s meeting. Meanwhile, U.K. PMI figures rose
in January to their highest level in seven months.
European markets live updates: stocks, news, ECB
decision and earnings (cnbc.com)
S&P 500
futures are little changed as investors prepare for GDP report: Live updates
UPDATED WED, JAN 24 2024 8:01 PM EST
S&P 500 futures were little changed as
investors readied for the fourth-quarter gross domestic product report.
Futures tied to the S&P 500 and Nasdaq 100
futures flickered
near the flat line. Dow Jones
Industrial Average futures climbed
63 points, or 0.17%.
In after-hours action, electric
vehicle maker Tesla slumped
nearly 6% after the company missed fourth-quarter estimates on the top
and bottom lines. The company warned that vehicle volume growth may
be lower in 2024. Shares of IBM soared
more than 8% after the technology
company posted adjusted earnings and revenue that beat
analysts’ predictions.
During regular trading Wednesday,
a postearnings surge in Netflix shares
helped carry the S&P 500 and the Nasdaq Composite to a fifth winning day.
The broad market index eked out a gain of 0.08% and posted a fresh record high,
while the Nasdaq added 0.36%. The 30-stock Dow slid 0.26%.
“I’ve had very bullish outlooks
for the market and I still have an S&P 500 target of 5,400 for the end of
this year and 6,000 for the end of next year,” Ed Yardeni of Yardeni Research
said on CNBC’s “Closing Bell” on
Wednesday. He cautioned, however, that the speed of the rise in stocks could
mean equities are getting ahead of themselves in the short term.
“My concern is that we’ll get
there all too fast and too soon,” he added.
On Thursday, investors will have
an eye on fourth-quarter
gross domestic product data, which is expected to show growth
at a 2% seasonally adjusted annualized pace. That will reflect a slowing from
the 4.9% reading in the third quarter. The results could be a key catalyst for
stocks as investors try to glean details on the state of the economy heading
into the new year.
More
Stock
market today: Live updates (cnbc.com)
In China news, too little too late?
China’s central bank announces policy
easing as it seeks to boost growth
PUBLISHED WED, JAN 24 2:51 AM EST
BEIJING — China pledged to reduce the amount of
liquidity that its banks are required to hold as reserves early next month in
its bid to boost its struggling economy.
Reserve ratio requirements for banks will be cut
by 50 basis points from Feb. 5, which will provide 1 trillion yuan ($139.8
billion) in long-term capital, Pan Gongsheng, the People’s Bank of China
governor, said at a press conference in Beijing Wednesday.
This is the first reduction in reserve
requirements this year, after two cuts last year. The PBOC also said Wednesday
there’s room for further monetary policy easing. Reducing the reserve
requirements that banks must maintain will increase the capacity for lenders to
extend loans and spur spending in the broader economy.
Data released last week showed the world’s
second-largest economy grew 5.2% in 2023,
broadly in line with official projections. Its fourth-quarter GDP print also
stood at 5.2%, but fell just shy of economists’ median estimates.
Its post-Covid recovery has been lackluster, with
China’s top leaders warning that recovery will be “tortuous.”
Beijing is seeking to bolster growth in a targeted
manner, while engineering a deleveraging of its once-bloated real estate sector, with some of its largest real estate developers facing
serious debt problems. This has intensified financial risks and roiled consumer
confidence.
China vowed Monday to “strengthen the market’s inherent
stability” amid a rout in the country’s
onshore and offshore stock markets.
China's PBOC announces RRR cut as it seeks to boost
growth (cnbc.com)
Finally,
EUSSR news. Germany and France do their best to lead the rest into
recession. Holland spots a coming problem.
German train drivers
ramp up pressure with longest strike yet
January 24, 2024 9:44 AM GMT
BERLIN, Jan 24 (Reuters) -
German train drivers walked off the job again on Wednesday in what is set to be
Germany's longest-ever rail strike, spelling more headaches for commuters with
scant signs of a return to the negotiating table on the horizon.
The strike, which began at 2 am (0100 GMT) on Wednesday and is
set to last until Monday evening, is the fourth round of industrial action in
the GDL union's dispute with state-owned Deutsche Bahn and comes just two weeks
after a previous strike ground
national rail traffic to a near halt for three days.
A spokesperson for the national rail operator spoke
of renewed "massive restrictions" across the country.
"We believe you have to come to the table, you
have to find compromises. That is the only way," the spokesperson told
reporters, pointing to the six-day strike's "massive impact on the
economy".
Drivers in rail freight are holding a simultaneous
strike.
GDL leader Claus Weselsky told broadcaster ARD that
he was ready to compromise in the dispute over pay and working hours, but said
Deutsche Bahn's offers didn't go far enough.
"We have to strike longer and harder because the railway
management is resistant to advice," he said.
German train drivers ramp up pressure with longest
strike yet | Reuters
French farming
protests could target Paris, union chief says
January 24, 2024 9:38 AM GMT
PARIS, Jan 24 (Reuters) -
Protests by French farmers demanding
better working and living conditions could intensify and road blockades could
target Paris, the head of the country's biggest farming union said on
Wednesday.
"I am not ruling out any option," Arnaud Rousseau, the
head of the FNSEA farming union, said when asked by France 2 TV if the protests
could disrupt the Paris region.
The protests, heading into a second week after spilling over
from neighbouring countries such as Germany, come as campaigning for European
Union elections gathers pace. The unrest is the first major challenge for new
Prime Minister Gabriel Attal.
The protests have blocked many important transport networks in
southern France this week, and there have been signs that they are spreading.
French farming protests could target Paris, union
chief says | Reuters
Electricity grid capacity shortage now threatens
households
January
23, 2024
The
shortage of electricity grid capacity threatens to be an increasing problem for
households as well as industry and new investment is needed to stop power cuts,
according to an analysis by the economic affairs ministry.
The
growth in the number of heat pumps, electric cars and solar panels could, in a
worst case scenario, lead to problems for 1.5 million households by 2030,
climate minister Rob Jetten told MPs in a briefing.
That
figure is based on current grid capacity and planned investments should reduce
the number of problem households by some 75%. Nevertheless, more needs to be
done to make sure the grid is future proof, the analysis shows.
In particular,
better estimates of future demand need to be worked out – such as how many
solar panels a neighbourhood is likely to have and what electric car use is
expected to be.
Network managers
also need better real time information about use in a given area so that, for
example, households could be asked to remove their electric cars from the
charger at times of shortages or to only use their washing machines at night,
Jetten said.
RTL Nieuws reported on Monday that Utrecht plans to
reduce the capacity of public electric car charging stations between 4 pm and 8
pm, when domestic demand is at its height.
The plan, local council executive Lot van Hooijdonk
said, is annoying, but unavoidable. “The time for unlimited demand and supply
is over,” she said.
“Major users have not been able to connect to the
grid for several years now and we are close to the point where households too
have to deal with this,” she said. “We have to choose who gets space on the
grid and at what price, because this shortage will be with us in the coming
years.”
Electricity grid capacity shortage now threatens
households - DutchNews.nl
The
best-laid schemes o' mice an' men, Gang aft a-gley, And leave us nought but
grief and pain, For promised joy.
Robert Burns. To a Mouse.
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.
European, US
retailers absorb Red Sea shock, wary of hiking prices
By Helen Reid January 24, 2024 9:04
AM GMT
LONDON, Jan 24 (Reuters) -
Carrying more stock, switching to suppliers nearer to consumers and reducing
dependence on China are tactics European and U.S. retailers used to build more
resilient supply chains following disruptions during the COVID-19 pandemic.
Faced now with transport delays of two weeks or more as cargo
ships are rerouted from the Red Sea,
they have limited financial wiggle room to splurge on workarounds like air
freight that would get products into stores faster.
"If supply chain
resilience means paying more for your goods, then that isn't going to
wash," said Matt Clark, who leads the EMEA retail practice at consultancy
AlixPartners in London.
Retailers' "need to drive profitability is trumping the
intent around supply chain resilience", he added.
Some fashion retailers are working around the Red Sea by
using sea-air freight, which involves shipping products to Dubai and then
flying them from there, but they are being highly selective.
Air freighting goods is
around 10 to 12 times more expensive than shipping by sea, according to
Sunandan Ray, CEO of U.S.-based Unique Logistics. For budget fashion
retailer Primark,
air freight would not be economical, the finance director at parent company
Associated British Foods (ABF.L), opens new tab said on Tuesday.
Clothing and sportswear retailers also want to avoid
overstocking, having only just recovered from a glut that
forced them to sell products at a discount.
Sports equipment and apparel wholesaler Intersport Deutschland
has stocked up over the past weeks to manage the expected two-week delays
caused by ships rerouting from the Red Sea, Chief Financial Officer Thomas
Storck said in an interview.
But overall, the company's inventory level is significantly
lower than a year ago, he said. That's a result of warehouse investments that
have improved its ability to get products to more than 1,400 independent
Intersport stores in Germany faster.
Intersport Deutschland plans to absorb the higher transport
costs rather than passing them on to store owners or consumers through higher
prices.
Budget furniture manufacturer Inter IKEA also said that for now,
its pricing planning remains unchanged despite the Red Sea disruption.
One way retailers are trying to account for the
cost increase and avoid running out of stock is by doing less discounting than
is usual for this time of year.
In the United States, retailers' discounts have
averaged 39% so far in January, down from 41% a year ago according to data from
LSEG and Centric Market Intelligence.
More
European, US retailers absorb Red Sea shock, wary of hiking prices | Reuters
Covid-19 Corner
This
section will continue until it becomes unneeded.
Not enough evidence of Covid vaccine link to Long
Covid: Lareb
January 24, 2024
The
Dutch laboratory which investigates the side effects of medicines says there is
not enough evidence of a link between coronavirus vaccines and symptoms that
are similar to Long Covid and is recommending further research.
By last
August, the lab had received 2,282 reports of long-lasting side effects in
people who were vaccinated against coronavirus, of which 78 involved symptoms
which are “like those of Long Covid”.
“Like
Long Covid, these were very diverse” and included breathlessness, tiredness,
chest pains, dizziness, muscle ache and brain fog, Lareb said in a new report,
published on Wednesday.
In total 41 of the
78 patients underwent medical checks and 16 people self-diagnosed their
complaints. Eleven people were diagnosed as having Long Covid and three chronic
fatigue syndrome.
However, the lack
of medical research on a large number of the patients means it is impossible to
say if their symptoms could have other causes, such as an actual coronavirus
diagnosis, Lareb said. In addition, 39 of the patients had previously had coronavirus.
“A causal
relationship with Covid-19 vaccination cannot be established since potential
alternative causes could not be excluded,” Lareb said. “Further
epidemiological, clinical and immunological research is needed.”
Meanwhile,
the health ministry said on Wednesday that just 425 care workers with Long
Covid have been awarded €15,000 in extra financial support, even though 806 had
registered for the cash.
In
total, 340 claims were rejected because they were made by people who did not
fit the criteria, 37 claims were made too late, and 40 are still being
considered, health minister Conny Helder told MPs
in an update. The government had
expected around 1,000 claims.
Healthcare
workers accounted for a high proportion of infections in the first wave of
coronavirus in the spring of 2020, when they were denied proper PPE and
exempted from many of the quarantine restrictions so they could keep working.
Not enough evidence of Covid vaccine link to Long
Covid: Lareb - DutchNews.nl
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.
Battery to store electricity
for 90,000 homes
January
24, 2024
A facility to store electricity is being built near Buxton to take
pressure off the National Grid.
It will
store surplus electricity generated from green sources like wind turbines and
feed it back into the grid when demand is high.
The
Buxton Battery Energy Storage System (BESS) will have the capacity to store
enough energy to power 90,000 homes for two hours.
Atlantic
Green is building the facility at Waterswallows and it is expected to be fully
functional by May.
'Greener and more sustainable'
Managing Director Nick Bradford said if surplus electricity was not
stored then renewable sources might need to be turned off or have their output
reduced.
He
said: "You then have to look at other sources of generation in the UK
which might not be so green.
"The
Buxton BESS Project will contribute to improving grid stability and pave the
way for a greener and more sustainable energy future.
"We
take pride in contributing to Derbyshire's efforts in tackling climate
challenges and supporting the UK in reaching its net-zero targets, ensuring
energy security for the future.”
As more power comes from wind and solar, the need for these batteries
and similar storage sites is expected to grow.
Atlantic Green Project Manager Sam Currie said:
"The battery energy storage market in the UK and globally is growing.
"We've also got sites cropping up where you
have got a core location. So you will have wind farms or solar farms for example
and there will be a battery farm put alongside them to store the green energy
that is produced."
Buxton's big battery to store electricity for 90,000 homes - BBC News
Now's the day and now's the hour.
Robert Burns.
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