Baltic Dry Index. 1610 +29 Brent
Crude 83.47
Spot Gold 2014 U S 2 Year Yield 4.64 +0.08
February 17, 1864 Confederate submarine CSS H.L. Hunley sinks Union ship USS Housatonic at Charleston, South Carolina in the world's first successful submarine attack; crews of both vessels were killed.
For Europe’s massive white elephant boondoggle tunnel enterprise scroll down to the last section’s YouTube item.
In
the stock casinos, it’s getting ever more difficult to keep the Great Disconnect
stocks bubble inflating in the face of a never-ending stream of gloom from the
global economy. The US markets are closed on Monday honouring President’s Day. No
not Carter, Trump and Biden Joe Biden. Washington and Lincoln.
The US economy is now just about three weeks away from the end of the Fed’s emergency bank bailout program, the Bank Term Funding Program.
What
happens when/if that rescue program ends is an open question, but my guess is
that regional and community banks quickly start failing again as depositors
start withdrawing deposits for safer investment options
Dow slides more than 100 points Friday, major
averages end 5-week winning run: Live updates
UPDATED FRI, FEB 16 2024 4:18 PM EST
Stocks slid Friday after yet another hot
inflation report stoked fears that Federal Reserve rate cuts may not arrive
until later than anticipated this year.
The S&P 500 fell
0.48% to end at 5,005.57, and the Dow Jones Industrial Average slid
145.13 points, or 0.37%, settling at 38,627.99. The Nasdaq Composite lost
0.82% to finish at 15,775.65.
All three major indexes broke
their five-week winning streaks to end the week in the negative. The S&P
500 ended the week lower by 0.42%, while the Dow slipped 0.11%. The Nasdaq
tumbled 1.34%.
The producer price index for
January, a measure of wholesale inflation, increased
0.3%. Economists polled by Dow Jones had anticipated a gain of 0.1%.
Excluding food and energy, core PPI rose increased 0.5%, higher
than the expectations for a 0.1% advance.
The 10-year Treasury yield spiked
above 4.3% following the hot PPI reading. At one point, the 2-year Treasury
yield topped 4.7%, the highest since December.
It’s been a roller-coaster week
for stocks, with investors carefully assessing the direction of the U.S.
economy and when the Federal Reserve may decide to lower rates. On Tuesday, the Dow posted
its biggest daily decline in nearly a year after January’s
headline consumer price index reading came in at 3.1%, higher than
the 2.9% economists polled by Dow Jones were expecting.
The market shook off the report
the next two days, with the S&P 500 rebounding
on Thursday to close at yet another record high. But Friday’s wholesale
inflation report added to concerns the Fed may have to wait until later in the
year before it starts cutting rates.
More
Stock
market today: Live updates (cnbc.com)
January wholesale prices rise more than expected,
another sign of persistent inflation
Wholesale prices rose more than expected in
January, further complicating the inflation picture,
according to a U.S. Department of Labor report Friday.
The producer price index, a measure
of prices received by producers of domestic goods and services, rose 0.3% for
the month, the biggest move since August. Economists surveyed by Dow Jones had
been looking for an increase of just 0.1%. PPI fell 0.2% in December.
Excluding food and energy, core PPI
increased 0.5%, also against expectations for a 0.1% gain. PPI excluding food,
energy and trade services jumped 0.6%, its biggest one-month advance since
January 2023.
The report comes just days after
the consumer price index showed inflation holding stubbornly higher despite Federal Reserve expectations
for moderation through the year. The CPI was up 3.1% from a year ago, down from
its December level but still well ahead of the Fed’s goal for 2% inflation.
On a core basis, which the Fed
focuses on more as a longer-term gauge of inflation, the CPI was up 3.9%. CPI
differs from PPI in that it measures the prices consumers actually pay in the
marketplace.
Markets
fell sharply after Tuesday’s CPI reading, and there were fears
that a hot PPI number also could cause another jolt. Expectations have been
rising high that the Fed would use the easing inflation numbers as incentive to
cut interest rates aggressively this year, but traders have had to pare back
those expectations in recent days as inflation has shown unexpected
persistence.
Stock market futures moved lower
after the PPI report and Treasury
yields surged.
Just a few weeks ago, markets had
been pricing in the first Fed rate cut in March. That since has been pared back
to June as policymakers have expressed caution about giving up the inflation
fight too quickly while noting that an otherwise stable economy buys them time
before having to move.
A 0.6% increase in final demand
service helped propel the wholesale index higher, which in itself was boosted
by a 2.2% rise in hospital outpatient care. Goods prices actually decreased
0.2% on the back of a 1.7% decline in final demand energy as gasoline slid
3.6%.
On a 12-month basis, headline PPI
increased just 0.9%, slightly lower than the 1% level in December. However,
excluding food, energy and trade services, the index rose 2.6%.
Along with the troublesome
inflation readings, the Commerce Department reported this week that retail
sales in January slid by 0.8%, far more than anticipated.
January
wholesale prices rise more than expected, sign of inflation (cnbc.com)
Finally,
China. Just how bad will China’s deflation get?
China's economy faces complete wipeout as deflation spiral leaves Xi Jinping helpless
February 16, 2024
China's economy is headed towards catastrophe due to rapid deflation,
experts have warned.
Prices in the country are falling at their fastest rate in 15 years,
leading to a massive drop in consumer spending.
This has also sent the Chinese stock market into crisis with spooked
foreign investors taking their money out of the country.
CNN Business reported on Thursday that the rapid deflation could
"destroy" China's economy.
Eswar Prasad, a professor of trade and economics at Cornell University,
also told the New York Times that the Chinese government, led by Xi Jinping,
will struggle to bring the situation back under control.
He said: "The deflation data add to a raft of other economic
indicators that, on top of a struggling stock market and unraveling property
market, pose an extraordinary challenge to the command and control approach of
the Chinese government."
Kyle Rodda, senior financial market analyst at capital.com, told the
Guardian last week: "While a very concerning sign for China's economy,
which could be becoming entrenched in a debt and deflation cycle, the markets
arguably responded in a positive way to the news.
"Perhaps markets see the terribly low number as a potential
catalyst for more muscular monetary or fiscal stimulus from the central
government, which, up until this point, has been moderate in applying
countercyclical policy."
Nathan Sheets, global chief economist at Citi and a former US Treasury
official warned earlier this month that China's economy may now not overtake
the US' until 2080.
He added that it is no longer certain that China will become the world's
largest economy at all.
He said: "Challenges loom from high-debt levels,
stresses in the property sector, ageing demographics, and geopolitical
headwinds.
"The government has responded by seeking to foster
advanced manufacturing, high-tech production, and green infrastructure. But
whether this push will be sufficient is an open question.
China's economy faces complete wipeout as deflation spiral leaves Xi Jinping helpless (msn.com)
Global
Inflation/Stagflation/Recession Watch.
Given
our Magic Money Tree central banksters and our spendthrift politicians, inflation/recession now needs an entire
section of its own.
Always assume incompetence before looking for conspiracy.
Niccolo Machiavelli.
US retail
sales declined in January by much more than expected
February 15, 2024
Spending at US retailers
tumbled much more than expected in January as cold weather across
the United States kept shoppers at home after a robust holiday spending season.
Retail sales, which captures
spending on all goods and food services, fell 0.8% in January, the Commerce
Department reported Thursday, breaking a two-month streak of increases. That
was even lower than the downwardly revised 0.4% increase in December, and well
below economists’ expectations of a 0.1% decline, according to FactSet. The
figures are adjusted for seasonal swings but not inflation.
Spending
declined across various categories last month, including at gas stations and
home improvement stores, likely due to the cold weather, falling 1.7% and 4.1%,
respectively. Online sales contracted 0.8%.
Meanwhile, sales at
restaurants and bars rose 0.7% in January.
Americans are being squeezed
by elevated interest rates,
still-high inflation and a
harder time accessing credit, as many continue to draw down their pandemic
savings, but one major bright spot is that the job market remains in decent shape.
Robust earnings results from major technology companies have also powered gains in
the stock market, helping boost some Americans’ wealth.
Despite
Thursday’s worse-than-expected report, it’s only the second decline over the
past 10 months. January’s Arctic chill also reversed
course later in the month in some parts of the
country and it’s possible that retail spending could come roaring back in
February.
More
US retail sales declined in January by much more than
expected (msn.com)
UK retail sales jump, suggesting recession will be
short-lived
February
16, 2024 7:38 AM GMT
LONDON, Feb 16 (Reuters) - British retail sales
rose by a stronger-than-expected 3.4% in January, according to official figures
that showed signs of strength among consumers a day after data confirmed the
country's economy entered a recession last year.
Economists polled by Reuters had forecast that
sales volumes would increase by a median 1.5% on a monthly basis.
January's jump - the biggest since April 2021 -
followed December's 3.3% fall, the most severe since January 2021.
"Overall, today’s
release was stronger than expected and suggests the drag from higher interest
rates on consumer spending is fading fast and points to the economy soon moving
out of recession," Joe Maher, an economist with Capital Economics said.
Data published on
Thursday showed Britain's economy slipped into a recession in the
second half of 2023 but it is expected to grow moderately this year as
inflation cools, wages rise and interest rates are forecast to fall.
"After a very weak December, retail sales
rebounded in January with the largest monthly rise since April 2021,"
Heather Bovill, deputy director for surveys and economic indicators at the
Office for National Statistics (ONS), said.
"This means that overall sales have now
recovered to pre-December levels, although if we look at the broader picture,
they are still below where they were pre-pandemic."
More
UK retail sales jump, suggesting recession will be
short-lived | Reuters
German car supplier Continental
plans to cut 7,150 jobs
UPDATED FEB 15, 2024, 04:52 PM
BERLIN - German car parts supplier Continental said
on Feb 14 it would cut some 7,150 posts worldwide by 2025 as the difficult
switch to electric vehicles forces companies in the sector to retool.
The group, which makes tyres and supplies
components to carmakers, said in a statement it would shed 1,750 jobs in
research and development.
It would also lose around 5,400 posts as part of a
previously announced cost-cutting programme aimed at saving the group €400
million (S$578 million) by 2025.
Continental, which currently employs around 200,000
people worldwide, announced the plan in November without putting a precise
figure on the number of jobs that would go.
“We are aware of the impact on our employees and
will do everything we can to find good, tailored solutions (for employees),”
Continental’s automotive chief Philipp von Hirschheydt said.
The cuts would allow Continental to “focus our
resources even more on future technologies for software-defined vehicles”, Mr
von Hirschheydt said.
Germany’s car suppliers have been facing problems as the
transition to electric mobility gathers pace, after decades relying on fossil
fuel vehicles for their profits.
Continental is also the latest German manufacturer
to announce job cuts as the country’s export-focused industry contends with a
global slowdown in growth and high rates of inflation.
Appliance maker Miele said earlier in February it
would eliminate up to 2,700 posts amid low demand for its products, while Bosch
announced plans in December for 1,500 job cuts. AFP
German
car supplier Continental plans to cut 7,150 jobs | The Straits Times
This section will continue until it becomes unneeded.
Italy
announces inquiry into its handling of Covid-19 pandemic
Victims’
relatives hail creation of commission but ex-ministers say it will be used as
political attack
Thu 15 Feb 2024 13.11
GMT
Italy will carry out an inquiry into its handling of the
coronavirus pandemic in a move hailed as “a great victory” by the relatives of
people killed by the virus but criticised by those who were in power at the
time.
Italy was the first western country to report an outbreak
and has the second highest Covid-related death toll to date in Europe, at more than 196,000. Only the UK’s death toll is
higher.
The creation of a commission to examine “the government’s
actions and the measures adopted by it to prevent and address the Covid-19
epidemiological emergency” was approved by the lower house of parliament after
passing in the senate.
A Covid-19 inquiry was among the election campaign
pledges of the prime minister, Giorgia Meloni,
whose far-right government came to power in October 2022.
Victims’ families had protested against an inquiry
proposal by the previous administration, a vast coalition led by Mario Draghi,
after attempts were made by the centre-left Democratic party (PD) and the
League, which governs the worst-hit Lombardy region, to narrow its scope by
focusing only on the outbreak in China and introducing a cutoff date of 31
January 2020, therefore not examining the scramble by the Italian government to
contain rapidly rising infections and deaths in the weeks that followed.
Consuelo Locati, a lawyer representing hundreds of
families who brought legal proceedings against former leaders, said: “The
families were the first to ask for a commission and so for us this is a great
victory. The commission is important because it has the task, at least on
paper, to analyse what went wrong and the errors committed so as not to repeat
the massacre we all suffered.”
More
Italy announces inquiry into its handling of Covid-19
pandemic | Italy | The Guardian
Technology Update.
With events happening fast in the
development of solar power and graphene, I’ve added this section.
How Graphene
Batteries Are Poised to Revolutionize Cordless Power Tools
Imagine
charging tools in minutes and using them all day without needing to recharge.
February 14, 2024
Cordless
tools have been making strides over the past few years, as batteries become
more advanced, smaller, and lighter. Lithium ion batteries have been slowly
increasing their capacity and run time while shrinking in size and weight. But
there’s a new material on the market for cordless tools: graphene, a
lightweight material that has changed the battery game.
Graphene is a nano material
The basic structure of graphene is a single layer of carbon
atoms that are spread out in a hexagonal shape to form a film. It’s so thin
that it’s almost two-dimensional, and because of its shape, it’s highly
conductive of both heat and electricity. Its unique shape makes it extremely
strong for its thickness as well. Graphene batteries are being used for a wide
range of projects, from electric vehicles to NASA’s flight program.
Graphene batteries charge faster and can power larger tools
Because graphene is so conductive, adding it to a traditional
lithium ion battery can reduce charging time by three times. Graphene is 100
times more conductive than copper, to give you some idea of how much faster
charging could become with graphene. This means needing fewer batteries on
hand, as you won’t need to wait as long to charge one if you’re working on a
big project. This technology can make cordless tools more practical even for
larger projects.
Since the material allows for faster charging, it also allows
for faster discharging, meaning that batteries with graphene can yield enough
power for larger tools that use more power. Using a battery-powered chainsaw or
concrete drill that runs for more than an hour could be in our near future.
Cordless tools that are already popular like sanders and drills can benefit
from increased torque.
More
How Graphene Batteries Are Poised to
Revolutionize Cordless Power Tools | Lifehacker
This weekend’s music diversion. A long forgotten Berlin composer. Approx. 10 minutes.
J
C Schultze “Concerto in G major for Alto Recorder, Strings and Continuo”
Renhard Goebel, 2009
Johann Christoph Schultze (born 1733 in Berlin – † 22 August 1813 in Berlin) was a German conductor and composer.
---Schultze came from a family of German
musicians and composers who were musically active from the second half of
the 18th century to
the 19th century. Although the composer is largely forgotten today, his works
are occasionally performed. He may have been one of the last composers to write
for the flute à bec (recorder), which was already out of
fashion at the time.
Johann Christoph Schultze - Wikipedia, the free encyclopedia
This weekend’s chess
update. Approx. 9 minutes.
World
Champion Blunders on Move 6!
World Champion Blunders on Move 6! (youtube.com)
Finally,
Europe’s crazy white elephant tunnel project. What could possibly go wrong? Well,
an EV fire if EVs ever catch on. Approx. 28 minutes.
The
Insane Scale of Europe’s New Mega-Tunnel
The Insane Scale of Europe’s New Mega-Tunnel
(youtube.com)
Wars begin when you will, but they do not end when you please.
Niccolo Machiavelli.
No comments:
Post a Comment