World Bank Gloom. Sweden Warns Of War.

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The global economy is on course to record its worst half decade of growth in 30 years, according to the World Bank.

More wobble in the stock casinos as a growing realisation sets in that the punters may have bet on black but red has just turned up. Doom and gloom in the World Bank. What do they know that we don’t?

Sweden joins in the rush to war and warns its citizens to prepare for war.

Nikkei blows past 34,000 mark for the first time since March 1990; other Asia markets slide

UPDATED WED, JAN 10 2024 12:40 AM EST

Asia-Pacific markets were mostly lower Wednesday, although Japan stocks extended gains after notching a 33-year high in the previous session, while Australia inflation hit a near 2-year low.

Japan’s Nikkei 225 surged 2.2% and continued pushing 33-year highs, powered by health technology and consumer services stocks. The broader based Topix also saw gains, climbing 1.49%.

Australia’s weighted consumer price index — defined as the weighted average CPI of Australia’s eight capital cities — climbed 4.3% year on year, slightly lower than the 4.4% increase expected from a Reuters poll.

The S&P/ASX 200 fell 0.69% and closed at 7,468.50, after snapping its four-day losing streak on Tuesday.

South Korea’s Kospi slipped 0.7% as the country’s unemployment rate hit a 23-month high, while the Kosdaq tumbled 1.14%.

Hong Kong’s Hang Seng index fell 0.45%, while the mainland Chinese CSI 300 was 0.11% lower.

Overnight in the U.S., stocks largely fell. The S&P500 ended the session down 0.15%, while the Dow Jones Industrial Average lost 0.42%.

The Nasdaq Composite managed to eke out a 0.09% gain, helped by gains in some Big Tech stocks. Nvidia rose 1.7%, reaching a fresh all-time high, while Amazon and Alphabet gained more than 1.5%.

Shares of Juniper Networks also popped almost 22% on Tuesday after a report in The Wall Street Journal said Hewlett Packard Enterprise could announce a deal to acquire the networking hardware company for about $13 billion as soon as this week.

Asia markets today: Nikkei 33-year high, Australia inflation (cnbc.com)

European markets expected to open lower as negative sentiment returns

UPDATED WED, JAN 10 2024 12:20 AM EST

European markets are set to open lower Wednesday as sentiment turns negative after a brief rally in yesterday’s trading session.

Asia-Pacific markets also mostly turned lower overnight, although Japan stocks extended gains after notching a 33-year high in the previous session. U.S. stock futures were marginally down on Wednesday morning.

Investors are awaiting Thursday’s release of U.S. inflation data for December for further clues on the state of the economy and the path of rate cuts from the Federal Reserve. The U.S. producer price index is then due Friday. 

In recent weeks, traders have boosted their bets on a Federal Reserve pivot, bracing for rate cuts as soon as March. Some of those expectations have been dialed back in recent days, although the odds hover at around 63%, according to CME Group FedWatch tool.

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

Global economy set for its worst half decade of growth in 30 years, World Bank says

PUBLISHED TUE, JAN 9 2024 9:30 AM EST

The global economy is on course to record its worst half decade of growth in 30 years, according to the World Bank.

Global growth is forecast to slow for the third year in a row in 2024, dipping to 2.4% from 2.6% in 2023, the organization said in its latest “Global Economic Prospects” report released Tuesday.

Growth is then expected to rise marginally to 2.7% in 2025, though acceleration over the five-year period will remain almost three-quarters of a percentage point below the average rate of the 2010s.

And despite the global economy proving resilient in the face of recessionary risks in 2023, increased geopolitical tensions will present fresh near-term challenges, the organization said, leaving most economies set to grow more slowly in 2024 and 2025 than they did in the previous decade.

“You have a war in Eastern Europe, the Russian invasion of Ukraine. You have a serious conflict in the Middle East. Escalation of these conflicts could have significant implications for energy prices that could have impacts on inflation as well as on economic growth,” Ayhan Kose, the World Bank’s deputy chief economist and director of the Prospects Group, told CNBC’s Silvia Amaro.

The bank warned that without a “major course correction,” the 2020s will go down as “a decade of wasted opportunity.”

Developing economies to be hit hardest

On a regional basis, growth this year is set to weaken most in North America, Europe and Central Asia, and Asia-Pacific — mainly on account of slower expansion in China. A slight improvement is forecast for Latin America and the Caribbean, coming off a low base, while more marked pickups are expected in the Middle East and Africa.

Still, developing economies are set to be the hardest hit on a medium-term basis as sluggish global trade and tight financial conditions weigh heavily on growth.

“Near-term growth will remain weak, leaving many developing countries — especially the poorest — stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people,” Gill said.

Developing economies are now expected to grow by just 3.9% in 2024, more than 1 percentage point below the average of the previous decade. By the end of the year, people in about 1 out of every 4 developing countries and about 40% of low-income countries will still be poorer than they were on the eve of the Covid-19 pandemic in 2019, the organization said.

The bank said the data showed that the world was failing in its goal of making the 2020s a “transformative decade” in tackling extreme poverty, major communicable diseases and climate change. However, it added that there was an opportunity to turn the tide if governments act quickly to increase investment and strengthen fiscal policy frameworks.

More

Global economy set for its worst half decade of growth in 30 years: World Bank (cnbc.com)

Five Things You Need to Know to Start Your Day: Europe

January 10, 2024 at 6:10 AM GMT

Good morning. Bitcoin swings after the SEC’s X account is hacked to wrongly report approval for crypto ETFs, bond traders hedge against rising Treasury yields, and more Houthis attacks in the Red Sea. Here’s what people are talking about.

Bitcoin ETFs

The US Securities and Exchange Commission said its X account was compromised after a post on the social media site falsely claimed the agency had approved spot Bitcoin exchange traded funds. Bitcoin initially surged on the fake post before slumping after the SEC response. Traders have been speculating for weeks that the agency could approve several of the products as soon as Wednesday.

Treasury Market

Bond traders are turning to the short-dated maturity Treasury options market to hedge potential for soaring Treasury yields over the coming days, ahead of key risk events including Thursday’s December inflation report. The theme has been prominent since the start of the year, as open interest, or the amount of new risk, has soared in put options targeting a Treasuries selloff over call options.

Houthis Attack

Houthi rebels in Yemen carried out one of their largest missile and drone attacks on commercial shipping lanes in the Red Sea late Tuesday, igniting a response from five US and UK warships patrolling the region critical to global trade. Eighteen drones, two anti-ship cruise missiles and one anti-ship ballistic missile were shot down by allied forces, US Central Command said.

UK Election

BlackRock is warning investors of the risk UK political parties will promise much greater spending in a bid to win this year’s election, potentially sparking a revolt in the bond market. While neither the Conservative nor Labour parties want to put forward policies that could unnerve investors, that may change as the election draws near, said Vivek Paul, BlackRock’s UK chief investment strategist.

More

Stock Markets Today: SEC Hack Bitcoin, Houthis Attack, Bond Market, UK Election - Bloomberg

Sweden 'bracing for war' as defence and army chiefs issue scary warning to citizens

Defence leaders have urged citizens to consider their preparedness for a potential conflict with Russia.

10:16, Tue, Jan 9, 2024 | UPDATED: 19:56, Tue, Jan 9, 2024

Swedes have been warned to brace for the possibility of war in the wake of their country's anticipated NATO membership in 2024 and the backdrop of Russia's conflict in Ukraine.

Speaking at the Folk och Forsvar conference in Salen, Civil Defence Minister Carl-Oskar Bohlin stressed the urgency of enhancing Sweden's resilience, citing concerns over the sluggish modernisation of the civil defence system. Mr Bohlin urged a collective effort from all segments of society, emphasising the need for swift action.

"Many have said it before me, but let me say it with the force of my office – there could be a war in Sweden," said Mr Bohlin,

Drawing parallels with Ukraine, which is facing a full-scale Russian invasion, Mr Bohlin commended their "total resilience" and stressed that a similar effort in Sweden requires widespread awareness and understanding of the situation.

More

Sweden 'bracing for war' as defence and army chiefs issue warning | World | News | Express.co.uk

 

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.

Germany's Galeria Karstadt department stores file for bankruptcy

Tue, January 9, 2024 at 12:12 PM GMT

German department store chain Galeria Karstadt Kaufhof (GKK) has filed for insolvency at the Essen District Court, the company announced on Tuesday.

Galeria is therefore looking for a new owner. Talks with potential investors have already begun and the aim is to continue Galeria's operations.

Galeria chief executive Olivier van den Bossche said: "Galeria's operational success is burdened by the framework conditions of the old ownership structure. We expressly see today as a liberating blow."

The press release continues: "The insolvencies of the Signa Group are massively damaging Galeria, hampering ongoing business and severely restricting future development opportunities due to high rents and expensive services."

This is the third insolvency for GKK in less than four years. It was preceded by the instability of the parent company Signa.

In recent weeks, several companies from Austrian entrepreneur René Benko's retail and property group filed for insolvency - including Signa Retail Selection AG, to which GKK belongs.

It had announced at the end of November that it would wind up its business in an organized manner, which meant selling GKK.

Signa consists of a complex network of corporations with hundreds of individual companies.

Department stores in Germany, like in much of the rest of the world, have struggled in recent years in the face of intense competition from big-box discount retailers and online merchants like Amazon.

Germany's Galeria Karstadt department stores file for bankruptcy (yahoo.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

New fast-spreading Covid variant IS more deadly than earlier versions

January 8, 2024

A new Covid variant that is behind a resurgence in hospital admissions may be more deadly than previously thought, research suggests.

 

BA.2.86 — or 'Pirola' — is a mutation on the Omicron BA.2 subvariant and is the ancestor of the currently dominant JN.1, which is responsible for more than three in five Covid cases as of January 6.

Both strains have around 60 more spike protein mutations than the original coronavirus and over 30 more than other Omicron variants such as BA.2 and XBB.1.5.

A new study by The Ohio State University found that BA.2.86 can infect cells in the lower lung and can enter cell membranes more efficiently than other versions of Omicron.

Dr Shan-Lu Liu, senior author of the study and professor of virology professor at The Ohio State University, said the findings were 'worrisome.'

'The concern is whether or not this variant, as well as its descendants, including JN.1, will have an increased tendency to infect human lung epithelial cells similar to the parental virus that launched the pandemic in 2020,' he said. 

In lab tests, the researchers found that BA.2.86 was more efficient at infecting humans in the lower lung.

Upper respiratory infections impact the throat and sinuses, including colds and sore throats.

Lower respiratory infections, however, typically last longer and are more intense as they affect the airways and lungs. 

They include bronchitis and pneumonia, with symptoms including chronic coughing and difficulty breathing.

The researchers wrote: 'BA.2.86 may have an increased tendency of using the plasma membrane route of entry as opposed to the endosomal route of entry.'

This means BA.2.86 enters cells in a more efficient way by directly penetrating the cell's membrane rather than attaching to the cell's surface and gathering receptors.

The experiments were conducted using pseudoviruses – a non-infectious part of a virus surrounded by different Covid spike proteins on the surface structured to match known variants.

'We need to confirm these findings using the real virus,' said Dr Liu.

'But from our past experience, we know that the infectivity in human epithelial cell lines provides very important information.'

More

New fast-spreading Covid variant IS more deadly than earlier versions (msn.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.

Today more on a subject we covered in the weekend update.

Graphene semiconductor: the brainchild of US-China collaboration

World’s 1st graphene semiconductor could power future quantum computers

January 8, 2024

Scientists have created the world's first working graphene-based semiconductor, which could pave the way for chips that power much faster PCs and quantum computers in the future.

The new semiconducting material, made from epitaxial graphene (a particular crystal structure of carbon chemically bonded to silicon carbide), allows for more mobility than silicon, meaning electrons move with less resistance. Transistors made in this way can operate at terahertz frequencies — 10 times faster than the silicon-based transistors used in chips used today — the researchers wrote in a study published Jan. 3 in the journal Nature.

Semiconductors have properties of both conductors and insulators. At the right temperature range, electrons move through the semiconductor material — but only if a certain amount of energy is applied. 

Almost every chip uses a semiconductor made from silicon, but the material is reaching its limits, lead researcher Walt de Heer, a professor at the Georgia Institute of Technology, told Live Science in an email. These limits include the maximum speed at which transistors can "switch" between their on-off positions, the heat they generate through resistance and the smallest size people can make them. 

This means the rapid advancements we've seen throughout the history of computing are beginning to slow. 

Graphene, meanwhile, is made from a single layer of carbon atoms tightly bound in a hexagonal lattice, and is a better conductor than silicon, meaning electrons move with less resistance through the material.

Despite its favorable properties, graphene has never been harnessed in electronics because of the lack of a "band gap" — a minimum amount of energy needed to move electrons when an electric field is applied to it. Band gaps are what enable transistors to switch on and off.

To function as a working transistor, the graphene must be treated in some way, but in the past, this has damaged its properties, de Heer said.

But the researchers worked around this challenge by fusing graphene onto silicon carbide using special furnaces and a special heating and cooling process. By putting atoms on the graphene that "donate" electrons to the system, which is known as "doping", they created a functional graphene semiconductor with a band gap.

Not only is this the first graphene-based semiconductor to work, but it can also be integrated into existing manufacturing processes. The transition from making silicon wafers to the silicon carbide wafers used in epitaxial graphene is "quite feasible," de Heer said.

More

World’s 1st graphene semiconductor could power future quantum computers (msn.com)

“Beyond this, the problem is universal. It is that governments are now held responsible for the welfare of the people. The aspirations of the people can outrun their ability to pay for them, and nobody has yet found a way to create answers to the aspirations out of thin air.”

George Goodman, aka Adam Smith, The Money Game. 1968.

Obsolete August 15, 1971 and the Great Nixonian Error of Fiat Money.