Friday, 29 March 2024

On Wall Street, Greed Trumps Fear (For Now.) ECB To Cut?

Baltic Dry Index. 1845 -144           Brent Crude  87.07

Spot Gold 2230                   US 2 Year Yield 4.59 +0.05

Economics exists to make astrology look respectable.

John Kenneth Galbraith.

A very happy, safe and enjoyable Easter to all celebrating this weekend.

In the stock casinos, for now greed continues to trump fear, as yet again it was time to dress up stocks and stock indexes for the month-end and end of quarter.

But look to the crypto article to see where financial greed can lead.

 

Japan and China stocks rise, while most Asia-Pacific markets are closed

UPDATED THU, MAR 28 2024 10:36 PM EDT

Japan and China stocks rose Friday, while most markets in the Asia-Pacific region stay shut for a public holiday.

Japan’s Nikkei 225 index gained 0.44%, after falling about 1.5% in the previous session. The broader Topix rose 0.41% following declines of 1.7%.

The Japanese yen will be closely watched during the session amid speculation of a possible intervention after the currency recently hit 34-year lows against the U.S. dollar at 151.97. It last traded at 151.38 against the greenback.

China’s CSI 300 index rose 0.3% at the open.

South Korea’s Kospi was flat, while the smaller-cap Kosdaq shed 0.28%.

Hong Kong, Singapore, India, Australia and New Zealand were among the major Asia-Pacific markets shut for the Good Friday holiday.

On Wall Street, the benchmark S&P 500 index clocked its best first-quarter performance in five years.

The index ended Thursday 0.11% higher, while the Dow Jones Industrial Average added 0.12%. Both indexes closed at record highs. The Nasdaq Composite slipped 0.12%.

Asia markets live: Japan, South Korea and China markets open (cnbc.com)

 

S&P 500 closes at a fresh record, posts strongest first-quarter performance since 2019: Live updates

UPDATED THU, MAR 28 2024 5:58 PM EDT

The S&P 500 rose Thursday, registering its best first-quarter performance in five years.

The broad market benchmark was up 0.11% to settle at 5,254.35. The Dow Jones Industrial Average added 47.29 points, or 0.12%, and finished at 39,807.37. Both indexes closed at records, and the S&P 500 hit a fresh all-time high during the session. The Nasdaq Composite slipped 0.12% to end at 16,379.46.

For the quarter, the S&P 500 added 10.2% for its best first-quarter gain since 2019, when it rallied 13.1%. The 30-stock Dow advanced 5.6% during the period for its strongest first-quarter performance since 2021 when it jumped 7.4%. The Nasdaq ended the quarter with a 9.1% pop.

On the month, the S&P 500 was higher by 3.1%. The Nasdaq added 1.8% in March, while the Dow climbed 2.1%. It was the fifth straight winning month for all three major averages.

Driving the gains this quarter and month has been Nvidia, last year’s market leader, as the artificial intelligence craze shows no signs of slowing. The stock soared 82.5% for the quarter and gained 14.2% in March alone.

On the economic front Thursday, initial filings for unemployment insurance for the week that ended March 16 came in at 210,000, slightly lower than the 211,000 that economists surveyed by Dow Jones had predicted.

“As we head into next week, the data gets a lot heavier, so we’ll have more catalysts to drive things around, but I would say on balance, this has been the end to a really good month and a really good quarter and it’s nice to finish up and head into the weekend on a super upbeat tone,” said Art Hogan, chief market strategist at B. Riley Wealth.

The Federal Reserve’s preferred inflation measure — the personal consumption expenditures report — is due Friday morning. Though markets will be closed for Good Friday, the results of this reading could sway markets in the approaching week.

Stock market today: Live updates (cnbc.com)

Next, crypto news. To no one’s great surprise, FTX fraudster and embezzler Sam Bankman-Fried drew a long sentence. Now will all (any) of the Democrat politicians that took his stolen donations return the cash?


Fallen crypto mogul Sam Bankman-Fried sentenced to 25 years in prison

Updated 11:50 PM GMT, March 28, 2024

NEW YORK (AP) — Crypto entrepreneur Sam Bankman-Fried was sentenced Thursday to 25 years in prison for a massive fraud on hundreds of thousands of customers that unraveled with the collapse of FTX, once one of the world’s most popular platforms for exchanging digital currency.

Though he described Bankman-Fried as “extremely smart,” U.S. District Judge Lewis A. Kaplan delivered a blistering analysis of Bankman-Fried and his crimes before announcing a sentence that was half of what prosecutors sought and less than a quarter of the 105 years recommended by the court’s probation officers.

“There is absolutely no doubt that Mr. Bankman-Fried’s name right now is pretty much mud around the world,” Kaplan said of the 32-year-old California man who seemed atop the cryptocurrency universe before his businesses collapsed in November 2022, leaving customers, investors and lenders short over $11 billion, which the judge ordered him to forfeit.

He was convicted in November of fraud and conspiracy — a dramatic fall from a crest of success that included a Super Bowl advertisement, testimony before Congress and celebrity endorsements from stars like quarterback Tom Brady, basketball point guard Stephen Curry and comedian Larry David.

Kaplan imposed the sentence in the same Manhattan courtroom where, four months previously, Bankman-Fried testified that he had intended to revolutionize the emerging cryptocurrency market with his innovative and altruistic ideas, not steal.

More

FTX founder Sam Bankman-Fried sentenced to 25 years in prison | AP News

Finally, more on the ship that crashed Baltimore’s Key Bridge in seconds.

 

What to know about the cargo ship Dali, a mid-sized ocean monster that took down a Baltimore bridge

March 28, 2024

Here's what to know about the cargo ship Dali that crashed into Baltimore's Francis Scott Key Bridge, causing it to collapse and leaving six bridge construction workers presumed dead.

MONSTERS OF THE OCEAN

If stood upright, the Dali would reach almost to the top of the Eiffel Tower in Paris or about two-thirds of the way up the Empire State Building in New York.

It can carry the equivalent of almost 10,000 standard-sized metal shipping containers, and at the time of the accident was carrying nearly 4,700 containers. But while those figures are impressive, the Dali pales in comparison to the world's largest container ships, which can carry more than 24,000 containers. There are environmental and economic advantages to operating giant container ships, but their sheer size and weight make them difficult to maneuver and stop — especially when something goes wrong.

Dali length: 984 feet (300 meters). Weight: 95,000 tons when empty.

Capacity: 10,000 20-foot (6-meter) containers.

MAYDAY CALL SAVES LIVES

The ship shares a name with one of history's most celebrated artists, Spanish surrealist painter Salvador Dali.

Built by South Korea's Hyundai Heavy Industries, one of the world's largest shipbuilders, the Dali was launched in late 2014. It's owned by Grace Ocean Private Ltd, flies a Singapore flag and is powered by diesel engines.

Danish shipping giant Maersk had chartered the Dali for a planned trip from Baltimore to Sri Lanka, but the ship didn't get far, with the crew sending a mayday call early Tuesday saying they had lost power and had no control of the steering system. Minutes later, the ship rammed one of the bridge's columns, causing the entire structure to collapse within seconds.

The ship was moving at about 8 knots, or 9 mph (15 kph). The mayday gave just enough time for authorities to stop bridge traffic and likely prevent more deaths, but not enough time to clear the construction crew that was filling potholes on the bridge. Divers on Wednesday recovered the bodies of two of the workers.

All of the nearly two dozen crew members from the Dali were accounted for after the accident, with one taken to a hospital with minor injuries.

The Dali passed a June 2023 inspection in Chile. A faulty pressure gauge for the fuel heaters was identified but fixed before the vessel left the port, according to authorities. The Dali was then inspected in September by the U.S. Coast Guard in New York, and no problems were found. Before it left Baltimore, the ship underwent routine engine maintenance, according to the Coast Guard.

Federal and state officials say the crash appears to be an accident.

The Coast Guard has downloaded the voyage data recorder and sent it to the National Transportation Safety Board, which is building a timeline of what led to the crash, and a preliminary report is expected in the coming weeks. Singapore also plans to carry out its own investigation, which it says will be to identify lessons for the future rather than determine liability.

WHAT'S NEXT

In addition to trying to clear the channel floor of the bridge debris, officials will need to assess the damage to the Dali and make sure it doesn’t leak fuel or sink. Investigators found damage to at least 13 containers on the ship.

The Dali will then likely be towed back to the port and the cargo offloaded.

Transportation Secretary Pete Buttigieg says it’s too early to say how long it will take to reopen the Port of Baltimore or replace the destroyed bridge. He noted it initially took five years to build the bridge.

What to know about the cargo ship Dali, a mid-sized ocean monster that took down a Baltimore bridge (msn.com)

Baltimore port bridge collapse: Global ocean carriers put U.S. companies on hook for urgent cargo pickup

PUBLISHED WED, MAR 27 2024 2:15 PM EDT

Ocean carriers are declaring “force majeure” due to the Baltimore port bridge crisis, telling logistics companies and U.S. shippers including retailers that once cargo is dropped off at alternate ports, it becomes their responsibility to pick up.

In an alert to customers Tuesday, CMA CGM wrote, “Those (containers) on the water will be discharged at an alternate port where they will be made available for pick-up, and CMA CGM’s bill of lading will terminate.”

It was the first ocean carrier to declare force majeure — the provision in a contract that frees parties from an obligation due to events beyond their control.

COSCO announced Wednesday morning that its services would “be concluded” once the diverted container arrives at the alternate port. Evergreen announced the same measure.

In contrast, Maersk is providing transport. “For cargo already on water, we will omit the port, and will discharge cargo set for Baltimore, in nearby ports. From these ports, it will be possible to utilize landside transportation to reach final destination instead,” Maersk said in an alert to customers. Though it noted that the situation remains fluid. “We are still working through the various contingencies with our customers and will continue to provide both specific and general customer advisories as the matter progresses,” it said.

Ocean carriers Hapag Lloyd and MSC did not respond to requests for comment about their plans.

More

In Baltimore bridge collapse, shippers left on hook for cargo pickup (cnbc.com)

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.

ECB likely to start with 'moderate' rate cut this spring, Villeroy says

By Reuters 

PARIS, March 28 (Reuters) - The European Central Bank (ECB) is likely to start off with a "moderate" interest rate cut this spring, which should come independently of the U.S. Federal Reserve's timeframe, ECB policymaker Francois Villeroy de Galhau said on Thursday.

A growing number of ECB policymakers have supported rate reductions, with a June meeting shaping up as the most likely time for action, although there is also a meeting in April.

Villeroy said at a speech at Paris Dauphine University that it was not of "existential importance" whether or not this cut occurred in April or in June.

"Since monetary policy takes effect with a lag, we run the risk of falling behind the curve if we wait too long," Villeroy said.

He added that if inflation undershot the ECB's 2% target for a sustained period, then the ECB risked having to cut interest rates even more aggressively and could face the effective lower bound of interest rate cuts where they no longer stimulate the economy.

Villeroy, who is also governor of the French central bank, also said that starting to loosen monetary policy was like taking out an insurance policy against a hard economic landing.

After a first "moderate cut," the ECB did not necessarily need to reduce rates further at each governing council meeting, though it should keep that option on the table, he added.

All 77 economists in the March 25-28 Reuters poll expected the ECB to keep the deposit rate unchanged at 4.00% on April 11. Roughly 90%, 68 respondents, forecast that the first cut would come in June.

ECB likely to start with 'moderate' rate cut this spring, Villeroy says | Reuters

Britain’s GDP falls by 0.3%, new ONS figures show

March 28, 2024

Britain’s gross domestic product (GDP) decreased slightly in the period between October and December last year, official figures show.

The Office for National Statistics (ONS) said GDP had fallen by 0.3 per cent following a period of no growth between July and September 2023.

Responding to Office for National Statistics gross domestic product quarterly national accounts, Chancellor Jeremy Hunt said: “Last year was tough as interest rates had to rise to bring down inflation, but we can see our plan is working.

“Inflation has fallen decisively from over 11% to 3.4%, the economy grew in January and real wages have increased for eight months in a row.

“Our cuts to National Insurance will boost growth by rewarding work and putting over £900 a year back into the average earner’s pocket.”

It comes after the quango estimated GDP had risen by 0.2 per cent in January, following a predicted decline of 0.1 per cent in December last year.

At the time, it said a strong month for retail sales helped drive growth in January, with consumers making the most of post-Christmas sales and spending more in supermarkets.

The services sector, which also includes industries like hospitality, culture and leisure, grew by 0.2 per cent during the month and was the largest contributor to the rise in GDP, the ONS estimated.

It was also said to have been helped by improved activity for housebuilders, thanks to new work and repair and maintenance jobs, following a sluggish year for the wider housing market.

GDP per head is the amount of economic output split across the total population and shrank by 0.7 per cent in 2023, according to the ONS.

Britain’s GDP falls by 0.3%, new ONS figures show (msn.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

Moderna Vaccine Recipients Have Greater Risk of Developing Chronic Condition: Study

Young men especially at risk of developing chronic hives, researchers find.

3/25/2024 Updated: 3/25/2024

People who receive Moderna’s COVID-19 vaccine have a greater risk of developing chronic hives, according to researchers in Denmark.

The Danish Medicines Agency review of data from Denmark and the European Union validated a safety signal that arose for chronic hives, or chronic urticaria, and Moderna’s shot, the agency said on March 20.

Of 360 cases reported in Europe following the Moderna or Pfizer-BioNTech vaccine, 58 were deemed probably caused by vaccination and 228 were determined to be possibly caused by the vaccination, Martin Zahle Larsen from the Danish Medicines Agency said in a statement.

Most of the cases were reported by patients, doctors, or pharmaceutical companies.

The study found that in Denmark, it was expected based on background rates of chronic hives that 175 people who received Pfizer’s shot would experience chronic hives following vaccination and that 18 people who received Moderna’s shot would experience the issue.

While the 105 reported cases after Pfizer vaccination came in under the expected number, the 55 reported cases following Moderna vaccination came in well above the expected number.

The risk of developing chronic hives was calculated to be three times higher for Moderna recipients, compared to the general population. Researchers also stratified the risk by gender and age and found the risk was the highest—5.2 times higher than the background rate—among young men.

Most cases of chronic hives occurred from 7 to 13 days following vaccination.

The results of the study are the validation of a safety signal, or a sign that a vaccine or vaccines causes a specific health issue, Danish authorities said in a document describing the results.

Mr. Larsen, though, told Danish media that additional studies are required to confirm a connection and that scientists think the cases stem from the vaccine’s impact on the immune system.

More

Moderna Vaccine Recipients Have Greater Risk of Developing Chronic Condition: Study | 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.

Pacific Basin to apply graphene-based propeller coating across whole fleet

GIT Coatings will supply its propeller coating to the entire Pacific Basin fleet after a successful trial on a supramax bulk carrier.

Gary Howard | Mar 27, 2024

Some 40 Pacific Basin vessels scheduled for dry dock in 2024 will get the XGIT-PROP coating which demonstrated potential vessel performance enhancements of up to 4% in a 2022 trial with Stolt Tankers.

GIT said the initiative was the largest adoption of graphene-based propeller coatings in the dry bulk segment. Pacific Basin owns 116 vessels and operates a total of 266 ships across the handysize and supramax sizes.

Sanjay Relan, the General Manager of Optimisation & Decarbonisation at Pacific Basin said the fleet had since 2007 used silicone paint to maintain performance and reduce the need for polishing, but edge damage meant the coating was being stripped and reapplied every docking.

“By adopting XGIT-PROP hard coating for our entire fleet, we are taking a proactive step towards more sustainable practices. We hope to maintain a damage-free, smooth propeller surface and improve efficiency over longer periods. At a fleet-wide level, we anticipate significant reductions in both environmental impact and operational expenses,” said Relan.

The biocide-free hard foul release coating solves the shortcomings of biocide-based soft foul release coatings which release silicone oils and can peel away from propeller blades, the manufacturer claims.

GIT said shipowners were using its new coating to help improve CII ratings and improve their vessels’ RightShip GHG ratings.

Maiko Arras, Director of Business Development at GIT Coatings, said: “Collaboration with Pacific Basin marks another important milestone in our growth. While we have established fleet supply agreements with many other shipping companies, Pacific Basin stands out as the largest to fully integrate XGIT-PROP across a fleet of dry bulk vessels. We’re glad to see first movers selecting this innovative yet simple solution to drive the industry towards a sustainable future.”

Pacific Basin to apply graphene-based propeller coating across fleet (seatrade-maritime.com)

Finally, our latest new section, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

The process by which banks create money is so simple that the mind is repelled.

John Kenneth Galbraith.

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