Fed Day One. Stocks Dress Up Tuesday. China Wobbles.

Baltic Dry Index. 1684 -37     Brent Crude  88.30

Spot Gold 2326          US 2 Year Yield 4.96 +0.07

The difficulty lies, not in the new ideas, but in escaping from the old ones.

John Maynard Keynes.

It is the last trading day of the month once again, and time for the stock casino professional money managers to dress up stocks and the stock indexes, for those all important money manager month-end bonuses.

With the AI bubble and the “magnificent seven” US technology stocks dominant, it’s like shooting fish in a barrel for Wall Street’s money manager sharks.

Shame about the main stream economy slowing and suffering rising inflation once again, but US and other central banksters long ago wrote off the main stream economy and those jerks foolish enough to still try making a living there.

Really, get with the 21^st century, borrow and invest in the AI debt fuelled stock bubbles, central bankster economy. Why work for a living when you can live on Easy Street front running the central bankster, debt fuelled gambling economy?

Asia markets mostly rise, tracking Wall Street gains; China factory activity expands at a slower pace

UPDATED TUE, APR 30 2024 10:00 PM EDT

Asia-Pacific markets largely rose on Tuesday, tracking Wall Street moves, with investors awaiting China manufacturing purchasing managers’ index for April.

Japan’s top currency diplomat Masato Kanda reportedly declined to comment on whether the finance ministry had intervened to prop up yen after it fell to a record low on Monday.

The currency weakened to its lowest level against the U.S. dollar yesterday at 160.03, before strengthening sharply to trade around the 155 level.

The Wall Street Journal, meanwhile, reported that Japan had intervened to support the yen by selling U.S. dollars and buying yen.

Japan’s Nikkei 225 climbed 1.4% as traders returned from a public holiday, while the broad-based Topix was up nearly 2%.

Japan’s retail sales for March rose at slower-than-expected pace in March, while unemployment came in slightly above expectations.

Data from China showed manufacturing activity expanded at a slower pace in April. The official purchasing managers’ index came in at 50.4 compared to 50.8 in March. The reading, however, beat Reuters estimates of 50.3.

Hong Kong’s Hang Seng index rose 0.2%, while China’s CSI 300 dipped 0.12%.

South Korea’s Kospi was 0.59% higher, while the small-cap Kosdaq rose 0.17%. the country’s factory output fell in March by the most in 15 months, down 3.2% compared to a 0.6% gain expected by a Reuters poll of economists.

The Australian S&P/ASX 200 was 0.27% up.

Overnight in the U.S., all three major indexes closed higher Monday, lifted by Tesla, while traders geared up for a week dominated by corporate earnings and a Federal Reserve meeting.

Tesla jumped more than 15%, providing upward momentum to the market after clearing a key hurdle for full self-driving technology in China.

The S&P 500 rose 0.32%, while the Nasdaq Composite added 0.35%. The Dow Jones Industrial Average added 0.38%.

Asia markets: China manufacturing PMI, yen intervention (cnbc.com)

European markets head for lackluster open ahead of euro zone inflation, GDP data

UPDATED TUE, APR 30 2024 12:42 AM EDT

European markets are heading for a lackluster open Tuesday ahead of a busy day of earnings and major data releases in the region.

Preliminary euro zone inflation data for April and first-quarter gross domestic product figures for the single currency area are due Tuesday, while earnings come from AF-KLM, Stellantis, Capgemini, Mercedes, VW, Lufthansa, Santander, Caixabank, OMV, HSBC, Glencore and Whitbread, among others.

Overnight, Asia-Pacific markets largely rose on Tuesday, tracking Wall Street moves, with investors awaiting China manufacturing purchasing managers’ index for April.

Meanwhile, U.S. stock futures were little changed Monday night after a positive start to the week, as investors brace for megacap earnings, the latest Federal Reserve interest rate decision on Wednesday, and a jobs report.

The central bank is broadly anticipated to keep interest rates steady, but traders will be looking to see if Fed Chair Jerome Powell’s post-meeting comments are more hawkish after the recent spate of hotter inflation reports.

European markets live updates: euro zone inflation, GDP and earnings (cnbc.com)

China's slow April factory, services activity dents economic momentum

By Ellen Zhang and Ryan Woo  April 30, 20244 :57 AM GMT+1

BEIJING, April 30 (Reuters) - China's manufacturing and services activity both expanded at a slower pace in April, official surveys showed on Tuesday, suggesting some loss of momentum for the world's second-biggest economy at the start of the second quarter.

The cooling activity from sizable gains made in March highlights erratic demand growth and underlines the challenges facing policymakers even though a solid first quarter GDP outturn has reduced some of the urgency to ramp up stimulus measures.

The National Bureau of Statistics (NBS) manufacturing purchasing managers' index (PMI) dropped to 50.4 in April from 50.8 in March, above the 50-mark separating growth from contraction and just ahead of a median forecast of 50.3 in a Reuters poll.

New export orders grew at a much slower rate, while employment continued to shrink, the NBS data showed.

The services sub-index under the NBS non-manufacturing survey grew at the slowest pace since January, coming in at 50.3 in April compared with 52.4 in March.

"Indicators of business activity in the catering, capital market services and property industries were in contraction," the NBS said in a statement.

Another private Caixin factory survey, also released on Tuesday, showed manufacturing activity grew more quickly as new export orders rose.

Analysts say the divergence between the Caixin PMI and the official PMI highlights differences in their geographic and sector coverage.

"Both of the manufacturing and services PMI indexes are near the line of 50, reflecting that the current momentum of economic expansion is mild," said Zhou Maohua, a macroeconomic researcher at China Everbright Bank.

Investors expect Chinese authorities to launch more stimulus to support the economy and are waiting for clues from the monthly Politburo meeting, which is expected to focus on economic affairs.

With the U.S. Federal Reserve and other developed economies in no hurry to cut interest rates, China may face a longer period of tepid external demand. Adding to the challenges, Beijing continues to contend with trade barriers as the U.S. accuses China of exporting its industrial overcapacity.

Officials this year underscored the need for economic development based on innovation in advanced sectors.

However, analysts said the country's immediate problem centres around a prolonged property downturn and ballooning local government debt, which have dented household and investor confidence in a blow to the economic outlook.

Several rounds of support measures aimed at turning around the fortunes of the real estate sector have failed to spur a substantial recovery, which is a major reason why China observers remain sceptical about a near-term full-blown economic revival.

More

China's slow April factory, services activity dents economic momentum | Reuters

Finally, more EV disaster at Hertz. Approx. 4 minutes.

Hertz EV Rental DISASTER just gets WORSE and WORSE! | MGUY Australia

Hertz EV Rental DISASTER just gets WORSE and WORSE! | MGUY Australia (youtube.com)

 

China crash involving Huawei-backed Aito electric vehicle kills three

By Reuters  April 29, 2024 6:42 AM GMT+1

BEIJING, April 29 (Reuters) - Three people, including a two-year-old boy, died after a Huawei-backed Aito M7 SUV burst into flames following a collision with a truck on a highway in the Chinese city of Yuncheng in the northern province of Shanxi, state media said.

Aito Automobile, a new energy vehicle brand launched in 2022, is investigating the accident along with traffic police, the company said on its WeChat and Weibo social media accounts on Sunday.

Aito said data from the vehicle showed it was operating at a speed of 115 kph (71 mph) at the time of Friday's accident, adding that the airbag opened normally and readings from the battery pack were normal.

The company said it was co-operating with traffic police to provide all necessary data to reconstruct the cause of the accident, and support the families involved.

Video on social media showed bystanders trying to break the window and door of the SUV as it was lodged under the truck with the front of the vehicle engulfed in flames.

The Aito M7, made by Seres Group (601127.SS), opens new tab in partnership with Huawei, with Huawei providing technology for the vehicle and help with marketing.

Huawei has said several times it is a components provider rather than a manufacturer of cars.

China crash involving Huawei-backed Aito electric vehicle kills three | Reuters

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.

The Fed will only cut rates when it's panicking over a recession and a market crash, Black Swan investor says

April 28, 2024

Rate cuts by the Federal Reserve may not be the boon investors are hoping for. That's because the Fed is only likely to ease monetary policy when the economy is slammed with a recession and the market is flailing, according to famous "Black Swan" investor Mark Spitznagel.

In a recent interview with Reuters, the Universa Investments CIO cast a stark warning about stocks and the economy.

According to the CME FedWatch tool, investors are expecting one to two cuts to come in 2024, which are expected to be bullish for stocks. 

But the only way the Fed will cut rates is if central bankers see a significant weakening in the economy — meaning the US could see a downturn and a market plunge before interest rates come down, Spitznagel warned.

"Be careful what you wish for," Spitznagel told Reuters. "People think it's a good thing the Federal Reserve is dovish, and they're going to cut interest rates … but they're going to cut interest rates when it's clear the economy is turning into a recession, and they will be cutting interest rates in a panicked fashion when this market is crashing."

Most economists think the US is likely to avoid a recession this year, according to a survey conducted by the National Association of Business Economics. But high rates still threaten to spark a downturn by tightening financial conditions for businesses and households. The potential for an economic correction is especially stark when considering the huge amount of debt taken out over the last decade, when interest rates were ultra-low, Spitznagel said.

"This economy is built on low interest rates," he said. "There are lag effects when you reset interest rates like we had."

Spitznagel's hedge fund is known for its ultra-bearish takes on the market, counting "The Black Swan" author Nassim Taleb among its advisors. Both commentators have cast stark warnings for stocks and the economy over the past year, with Spitznagel in particular warning of one of the largest debt bubbles in history, which could spark the worst stock market collapse since 1929.

Universa's investment strategy is poised to gain on seemingly unpredictable Black Swan events. Famously, the fund pulled a 4,144% return on its investments during the pandemic stock crash. 

Most forecasters on Wall Street share a cautiously optimistic view of both stocks and the economy for the rest of this year, assuming that inflation continues to trend lower while the economy continues to grow. 38% of investors said they were bullish on stocks over the next six months, according to the AAII's latest Investor Sentiment Survey.

The Fed will only cut rates when it's panicking over a recession and a market crash, Black Swan investor says (msn.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

AstraZeneca admits for first time in court documents its Covid vaccine can cause rare side effect

April 28, 2024

AstraZeneca has admitted for the first time in court documents that its Covid vaccine can cause a rare side effect, in an apparent about-turn that could pave the way for a multi-million pound legal payout.

The pharmaceutical giant is being sued in a class action over claims that its vaccine, developed with the University of Oxford, caused death and serious injury in dozens of cases.

Lawyers argue the vaccine produced a side effect which has had a devastating effect on a small number of families.

The first case was lodged last year by Jamie Scott, a father of two, who was left with a permanent brain injury after developing a blood clot and a bleed on the brain that has prevented him from working after he received the vaccine in April 2021. The hospital called his wife three times to tell her that her husband was going to die.

AstraZeneca is contesting the claims but has accepted, in a legal document submitted to the High Court in February, that its Covid vaccine “can, in very rare cases, cause TTS”.

TTS – which stands for Thrombosis with Thrombocytopenia Syndrome – causes people to have blood clots and a low blood platelet count.

Fifty-one cases have been lodged in the High Court, with victims and grieving relatives seeking damages estimated to be worth up to £100 million.

AstraZeneca’s admission – made in a legal defence to Mr Scott’s High Court claim – follows intense legal wrangling. It could lead to payouts if the drug firm accepts that the vaccine was the cause of serious illness and death in specific legal cases. The Government has pledged to underwrite AstraZeneca’s legal bills.

In a letter of response sent in May 2023, AstraZeneca told lawyers for Mr Scott that “we do not accept that TTS is caused by the vaccine at a generic level”.

But in the legal document submitted to the High Court in February, AstraZeneca said: “It is admitted that the AZ vaccine can, in very rare cases, cause TTS. The causal mechanism is not known. 

More

AstraZeneca admits for first time in court documents its Covid vaccine can cause rare side effect (msn.com)

Covid caused a ‘massive spike’ in yacht sales — now some of those boats are back on the market

PUBLISHED MON, APR 29 2024 11:35 PM EDT

Some pandemic-era yacht owners are headed back for dry land.

The pandemic spurred a “massive spike” in yacht sales, said Richard Allen, chief operating officer of the Hong Kong-based yachting company Simpson Marine.

“We’ve seen a lot of those people, that had their boats for two years, sort of now wanting to travel,” he told CNBC. “In the last probably few months, talking with other people in the industry, we’ve seen an increase in brokerage activity of … boats being sold.”

That was expected, said Paolo Casani, CEO of the Monaco-based yachting company Camper & Nicholsons.

“We sold, as an industry worldwide, more than the double the yachts [in 2021] than 2019,” he told CNBC. When this happens, “they go to the market starting from a couple of years later.”

Prices in the pre-owned market

Enthusiasm for yachting remains high, even if sales have fallen since 2021, said Casani.

“The industry is going back to 2019,” he said. “And we have to distinguish between brokerage and new builds, because the demand for new builds is still quite high.”

With more yachts hitting the brokerage market, prices are down, albeit slightly, from pandemic-era highs, he said.

“Prices are still quite high,” he said. “There is still a gap between the demand and the offer ... but we do believe that there will be still a reduction in the course of 2024.”

More

A rise in pre-owned yachts for sale: Some Covid purchasers are selling (cnbc.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.

Beyond Graphene: A New World of 2D Materials Is Opening Up

By LINKÖPING UNIVERSITY APRIL 28, 2024

Materials that are incredibly thin, only a few atoms thick, exhibit unique properties that make them appealing for energy storage, catalysis, and water purification. Researchers at Linköping University, Sweden, have now developed a method that enables the synthesis of hundreds of new 2D materials. Their study has been published in the journal Science.

Since the discovery of graphene, the field of research in extremely thin materials, so-called 2D materials, has increased exponentially. The reason is that 2D materials have a large surface area in relation to their volume or weight. This gives rise to a range of physical phenomena and distinctive properties, such as good conductivity, high strength or heat resistance, making 2D materials of interest both within fundamental research and applications.

“In a film that’s only a millimeter thin, there can be millions of layers of the material. Between the layers, there can be a lot of chemical reactions and thanks to this, 2D materials can be used for energy storage or for generating fuels, for example,” says Johanna Rosén, professor in Materials physics at Linköping University.

The MXenes Family and New Theoretical Models

The largest family of 2D materials is called MXenes. MXenes are created from a three-dimensional parent material called a MAX phase. It consists of three different elements: M is a transition metal, A is an (A-group) element, and X is carbon or nitrogen. By removing the A element with acids (exfoliation), a two-dimensional material is created. Until now, MXenes has been the only material family created in this way.

The Linköping researchers have introduced a theoretical method for predicting other three-dimensional materials that may be suitable for conversion into 2D materials. They have also proved that the theoretical model is consistent with reality.

To succeed, the researchers used a three-step process. In the first step, they developed a theoretical model to predict which parent materials would be suitable. Using large-scale calculations at the National Supercomputer Centre, the researchers were able to identify 119 promising 3D materials from a database and a selection consisting of 66,643 materials.

The next step was to try to create the material in the lab.

More

Beyond Graphene: A New World of 2D Materials Is Opening Up (scitechdaily.com)

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

World Debt Clocks (usdebtclock.org)

The function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on.

Joseph A. Schumpeter. 

Fed Week. Another Debt Bomb Warning. Does Debt Matter?

Baltic Dry Index. 1721 -22     Brent Crude  88.67

Spot Gold 2335            US 2 Year Yield 4.96 unch.

 

Legal plunder can be committed in an infinite number of ways; hence, there are an infinite number of plans for organizing it: tariffs, protection, bonuses, subsidies, incentives, the progressive income tax, free education, the right to employment, the right to profit, the right to wages, the right to relief, the right to the tools of production, interest free credit, etc., etc. And it the aggregate of all these plans, in respect to what they have in common, legal plunder, that goes under the name of socialism.

Frederic Bastiat.

A new week and a May Day holiday shortened week for many.

In the stock casinos, much attention will be on the USA and what the US central bank decides on interest rates and the guidance they issue on Wednesday.

On Friday, the focus will be on the latest US employment figures from the Bureau of Lying Labor Statistics.

Ignored all week, as usual, the USA leading the race of most of the G-20 into a catastrophic debt bomb calamity. Debt doesn’t matter until one day, out of nowhere, it does.

Japanese yen touches 160 to the dollar; Asia stocks rise as Fed meeting looms

UPDATED MON, APR 29 2024 10:22 PM EDT

The Japanese yen weakened to 160 against the U.S. dollar on Monday, as stocks in Asia-Pacific markets climbed.

The yen weakened further on Friday after the Bank of Japan left interest rates unchanged. Japan’s stock markets are closed for a public holiday.

Traders look toward the Federal Reserve’s meeting this week, following another hotter-than-expected U.S. inflation reading Friday.

March’s core personal consumption expenditures, excluding food and energy, rose 2.8% from a year ago, and came in ahead of the 2.7% expected by Dow Jones. Personal spending rose 0.8%, ahead of a 0.7% estimate.

In Asia, China’s official purchasing managers index for April is expected Tuesday ahead of the Labor Day holiday on Wednesday, along with Japan’s industrial production and retail sales data from March.

Australia’s S&P/ASX 200 was up 0.43%, rebounding from Friday’s losses.

South Korea’s Kospi rose 0.84%, and the small-cap Kosdaq gained 0.72%.

Hong Kong’s Hang Seng index rose 0.82%, while China’s CSI 300 added 0.1%.

U.S. stocks jumped Friday, with the S&P 500 and Nasdaq Composite recording their best week since November as Big Tech names rallied on strong earnings.

The S&P 500 advanced 1.02%, while the tech-heavy Nasdaq jumped 2.03%, marking its best session since February. The Dow Jones Industrial Average rose 0.4%.

Asia markets: FOMC meeting, China PMI, China industrial profit (cnbc.com)

Stock futures are little changed following S&P 500′s best week since November: Live updates

UPDATED MON, APR 29 2024 7:00 PM EDT

S&P 500 futures inched higher Sunday night as the broad index came off its best week in several months. Traders are looking ahead to a week with more corporate earnings, key labor data and a Federal Reserve meeting.

Futures tied to the index added 0.1%. Dow Jones Industrial Average futures rose 58 points, or 0.2%. Nasdaq 100 futures advanced 0.1%.

Those moves follow a positive — albeit rocky — week on Wall Street. The S&P 500 jumped 2.7%, notching its best week since November and breaking a three-week negative streak. With a rally of 4.2%, the Nasdaq Composite also saw its best weekly performance going back to November and its first winning week in the last five. The Dow finished the week 0.7% higher.

“The YTD upgrade in the market’s pricing of economic growth largely explains the resilience in equities this year alongside the climb higher in interest rates,” David Kostin, Goldman Sachs’ chief U.S. equity strategist, wrote to clients. “However, during the past few weeks, the driver of rates has shifted from better growth to
hawkish monetary policy concerns, which has been more difficult for stocks to digest.”

Earnings season continues this week, with releases from major names including McDonald’s, Coca-Cola, Apple and Amazon. It’s shaping up to be a strong quarter: Of the more than 45% S&P 500-listed firms that have posted results so far, about four out of every five have surpassed expectations, according to FactSet.

Monetary policy will take center stage later in the week, with the Fed set to release its latest interest rate announcement on Wednesday. While the central bank is widely anticipated to keep the borrowing cost unchanged, investors will still closely monitor the post-announcement press conference with Chair Jerome Powell.

That announcement comes ahead of April’s nonfarm payrolls report expected Friday. Traders analyze the data for insights into the strength of the labor market given its role in the monetary policy decision making process and the country’s broader economic health.

Stock market today: Live updates (cnbc.com)

WEF president: ‘We haven’t seen this kind of debt since the Napoleonic Wars’

PUBLISHED SUN, APR 28 2024 4:37 AM EDT

Borge Brende, president of the World Economic Forum, gave a stark outlook for the global economy saying the world faces a decade of low growth if the right economic measures are not applied.

Speaking Sunday at WEF’s “Special Meeting on Global Collaboration, Growth and Energy for Development” in Riyadh, Saudi Arabia, he warned that global debt ratios are close to levels not seen since the 1820s and there was a “stagflation” risk for advanced economies.

“The global growth [estimate] this year is around 3.2 [%]. It’s not bad, but it’s not what we were used to — the trend growth used to be 4% for decades,” he told CNBC’s Dan Murphy, adding that there was a risk of a slowdown like that seen in the 1970s in some major economies.

“We cannot get into a trade war, we still have to trade with each other,” he explained when asked about avoiding a period of low growth.

“Trade will change and global value chains — there will be some more near-shoring and friend-shoring — but we shouldn’t lose the baby with the bathwater ... Then we have to address the global debt situation. We haven’t seen this kind of debt since the Napoleonic Wars, we are getting close to 100% of the global GDP in debt,” he said.

He said governments needed to consider how to reduce that debt and take the right fiscal measures without getting into a situation where it kicks off a recession. He also motioned persistent inflationary pressures and that generative artificial intelligence could be an opportunity for the developing world.

His warning chimes with a recent report from the International Monetary Fund which noted that global public debt had edged up to 93% of GDP last year, and was still 9 percentage points higher than pre-pandemic levels. The IMF projected that global public debt could near 100 % of GDP by the end of the decade.

The Fund also singled out the high debt levels in China and the United States, saying loose fiscal policy in the latter puts pressure on rates and the dollar which then pushes up funding costs around the world —exacerbating pre-existing fragilities.

More

WEF president: 'We haven't seen this kind of debt since the Napoleonic Wars' (cnbc.com)

In other news:

Europe farmers facing chaos as worst wine harvest recorded in 62 years

April 27, 2024

European farmers have launched a number of audacious protests in recent months, with tractors blocking motorways and dumping manure on roads. However, the farmers have been dealt a new devastating blow as a key EU export - wine - suffered its worst harvest in 62 years.

The International Organisation of Vine and Wine (OIV), representing 75 percent of the world's vineyard area, revealed that wine harvests had dried up across most of Europe.

In the EU bloc, wine production declined by 10 percent last year - the second-lowest recorded volume of wine this century. The figures are even worse than initial estimates made in November.

Agricultural experts blamed climate change and "extreme environmental conditions" including droughts and fires that have been driving the downward trend in production.

They also blamed heavy rain for causing flooding and fungal diseases across major wine-producing regions.

France is the only European country to buck the falling harvest trend, with a four percent rise in the past year, making it by far the world's biggest wine producer.

Italy was one of the wine-producing countries that suffered the most with a 23 percent drop in its harvest.

Spain lost over a fifth of its production, while harvests outside of Europe, in Chile and South Africa, were also down by more than 10 percent.

Surprisingly, India - not known for its vineyards - entered the global top 10 grape producers for the first time.

The crisis in harvesting grapes comes as experts warn that regular droughts could become the 'new normal' across the Mediterranean by mid-century due to climate change.

To compound the problem, analysis found that wine consumption had also dropped to its lowest level since 1996.

The Portuguese, French and Italians remain the world's biggest wine drinkers per capita but the rising cost of living has put a dent in worldwide purchasing trends.

There was also a sharp drop in wine drinking in China due to the economic slowdown in the country.

Europe farmers facing chaos as worst wine harvest recorded in 62 years (msn.com)

Many large U.S. cities are in deep financial trouble. Here’s why

PUBLISHED THU, APR 25 2024 6:04 AM EDT

Municipal governments across the United States are looking to rein in spending as pandemic-era stimulus dries up and inflation lingers for longer than expected.

“Clearly there are significant capital needs across the U.S.,” said Michael Rinaldi, senior director at Fitch Ratings’ public finance group. The group issued a AA investment grade general obligation bond rating for New York City in March 2024.

The financial challenges within cities appear to be mounting despite high municipal credit ratings and robust demand for urban commodities like housing. For example, New York City had a total public debt of $177.6 billion at the end of fiscal year 2022, according to researchers at Truth in Accounting, a nonprofit that partners with the University of Denver to promote transparency in public accounting. That translates into a per capita taxpayer burden of $61,200, according to the group’s analysis.

That estimate comes in higher than the one quoted by New York City Comptroller Brad Lander, who says the Big Apple has a public debt burden of roughly $96 billion in 2024 — about $30 billion shy of the city’s debt limit.

The discrepancy, according to Truth in Accounting, comes from pension debt obligations that are underreported and will eventually be pushed on to future taxpayers. “If I don’t pay that invoice, I don’t have to include it in my balanced budget,” said Sheila Weinberg, the group’s founder and CEO.

Truth in Accounting estimates that 53 of the largest cities in the U.S. were not generating enough revenue to pay their bills at the end of fiscal year 2022. The list also highlights fiscal challenges facing cities like Chicago, Houston and Portland, Oregon.

“I think we can all agree that we’re broke,” said Houston Mayor John Whitmire in a March 2024 City Council budget hearing.

Truth in Accounting believes that underfunded pension obligations and retiree health benefits are straining municipal governments nationwide. Detroit’s 2013 municipal bankruptcy was a potent example of the potential effect when the city temporarily suspended pension payments to pump more cash into reserves.

“I believe this is a big problem throughout the country,” said Weinberg. “The voters think, oh, they must be living within their means. And they’re not.”

Weinberg told CNBC that cities and state governments are, in effect, spending tomorrow’s money today in unsustainable fashion.

More

Many large U.S. cities are in deep financial trouble. Here's why (cnbc.com)

Finally, yet more desperate  new from EV land. Even if it works well, which I doubt, at what cost in copper or aluminium, installation, radiation risk, electricity and cost in subsidies to UK taxpayers?

 

Electric car owners handed major lifeline by revolutionary technology that charges moving vehicles

April 27, 2024

Drivers will soon be able to charge their electric vehicle while on the road as new technology gets trialled in the Midlands.

Coventry University has unveiled new technology which enables drivers to recharge their vehicles while moving along power-enabled roads.

The technology was proposed by the Key Cities Innovation Network as part of plans to help the local communities achieve vital net zero targets.

The charging innovation uses dynamic wireless transfer technology to establish an automatic connection between the vehicles and metal coils fitted below the road surface to recharge the batteries as they pass over.

Funded by National Grid Electricity Distribution the mobile charging scheme is currently being focused on a section of Kenilworth Road at its junction with the A45.

The stretch of road being trialled is hoped to attract Government support and funding for the next stages of more areas.

----The Government has already installed almost 60,000 public chargepoints across the UK, according to the Zapmap database.

Despite this, motorists have complained about the price of electric vehicles as well as the need for more chargers as numbers are still lagging behind Government targets.

More

Electric car owners handed major lifeline by revolutionary technology that charges moving vehicles (msn.com)

Tesla’s Autopilot is under investigation again following ‘recall’ software update

April 26, 2024

Tesla can add yet another investigation into its Autopilot feature to what’s already piling up to be a pretty bad year for the company.

On Friday, the National Highway Traffic Safety Administration (NHTSA) revealed it was opening a new probe to assess whether the recall fix Tesla implemented for over 2 million cars back in December actually did enough to address safety concerns surrounding its Autopilot driver assistance system.

That recall was prompted by a previous investigation NHTSA raised in 2021 that reviewed hundreds of collisions and 13 fatalities allegedly involving Tesla’s Autopilot feature. NHTSA has now closed that same probe following Tesla’s recall notice, finding that the name “Autopilot” may “lead drivers to believe that the automation has greater capabilities than it does.”

The agency also found that Tesla’s Autopilot can discourage drivers from taking manual control of the vehicle compared to other automated driving systems because doing so deactivates Autosteer lane-centering assistance.

NHTSA’s new investigation focuses on the software update Tesla rolled out to fix these issues in December, which prompts drivers with increased warnings and alerts to pay greater attention when using Autopilot and Autosteer. Some of these remedies require Tesla owners to opt in, according to the agency, and allow them to reverse the safety updates if they choose.

A number of new collisions that have occurred since the software update was applied have also driven the new investigation, alongside tests NHTSA has conducted on amended vehicles.

Updates to Autopilot that Tesla has rolled out following the initial fix are also being evaluated to determine why they weren't included in the initial recall update. Every Autopilot-equipped Tesla vehicle produced between 2012 and 2024 — including the Cybertruck, which is already being recalled over defective accelerator pedals — is subject to the new probe.

More

Tesla’s Autopilot is under investigation again following ‘recall’ software update (msn.com)

Homicide Rap For Tesla Driver On Autopilot

Man was using cellphone when Model S ran over motorcyclist

APRIL 26--A Tesla owner has been charged with vehicular homicide after his car--traveling in autopilot mode--slammed into a motorcyclist when he got distracted looking at his cellphone, according to Washington court records.

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Homicide Rap For Tesla Driver On Autopilot | The Smoking Gun

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.

Rating agencies doubt France's target to cut massive debt

April 26, 2024

Two major ratings agencies left their assessment of France's huge debt pile unchanged Friday, but cast doubt on the government's debt reduction target.

Moody's maintained France's sovereign rating at "Aa2" with a stable outlook. Fitch, which downgraded its rating for France last year, left it unchanged at "AA-" with a stable outlook.

France's public deficit widened to 5.5 percent of GDP in 2023, overshooting the government’s 4.9 percent target. And with the debt stock equal to 110.6 percent of GDP, France has the third highest debt ratio in the European Union after Greece and Italy.

The government has set a target of bringing debt below 3.0 percent of GDP by 2027. But both agencies cast doubts.

Moody's said it was "unlikely" that France will hit its deficit target of 2.9 percent in 2027. "Progress in sustainably reducing the budget deficit and government debt is limited," it said in a commentary.

The agency predicted that debt could reach "almost 115 percent of GDP by 2027".

"France's interest burden will gradually rise and could double over the next decade if the debt level does not materially decline," it added.

Fitch said "it will be difficult to achieve this target as deficit narrowing measures remain largely unspecified, France has only met the 3 percent deficit criterion in four out of the last 20 years." 

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Rating agencies doubt France's target to cut massive debt (msn.com)

US economic growth slows but inflation grows

April 26, 2024

The US economy grew by less than forecast in the first three months of this year but inflation gathered pace, which could delay an interest rate cut.

Official figures revealed the economy expanded at an annualised rate of 1.6%, far below expectations and the growth seen in the final months of 2023.

Meanwhile, inflation, which measures the pace of price rises, has increased.

At the start of the year, experts had been forecasting a series of interest rate cuts in the US.

However, inflation is yet to fall back to the Federal Reserve's 2% target, and on Thursday, figures from the US Department of Commerce showed that inflation increased by 3.4% in the first three months of 2024. This is compared to an increase of 1.8% in the final three months of 2023.

Raising interest rates makes borrowing - for things such as loans and mortgages - more expensive and theoretically is meant to encourage people to spend less. The idea is that this helps to bring inflation down by dampening demand.

However, US inflation has not fallen back as quickly as expected.

At the same time, economic growth - measured as gross domestic product (GDP) - has slowed from 3.4% growth in the final three months of last year to 1.6%. Economists had been expected it to decelerate but only to 2.4%.

Olu Sonola, head of US economic research at Fitch, the credit rating agency, said: "The hot inflation print is the real story in this report.

"If growth continues to slowly decelerate, but inflation strongly takes off again in the wrong direction, the expectation of a Fed interest rate cut in 2024 is starting to look increasingly more out of reach."

The key US interest rate is between 5.25% to 5.5% - the highest level in more than 20 years.

Stuart Cole, chief macro economist at Equiti Capital in London, said the US Federal Reserve, which sets interest rates, was "now finding itself caught between a rock and a hard place".

"The growth numbers suggest monetary policy has worked its magic and the Fed's foot on the monetary brake can be eased somewhat," he said.

"But the inflation figures suggest otherwise, and potentially even point to the need for a further tightening."

The 1.6% growth figure is the first estimate of GDP. A second reading, "based on more complete source data", will be released on 30 May.

Nevertheless, the economy is a key issue as the US heads towards an election later this year.

US economic growth slows but inflation grows - BBC News

Covid-19 Corner

This section will continue until it becomes unneeded.

COVID-19 kicked off a workplace cultural shift, making it hard to fill positions, says employers

April 28, 2024

The COVID-19 pandemic has shaken up how people work — including by requiring people to work from home, exacerbating labour shortages, and leaving some people seeking a better work-life balance — says a new report.

Memorial University economist Tony Fang has researched the changes the pandemic has had on businesses across Atlantic Canada and has released a paper detailing his findings.

"During this pandemic but also the aftermath of the global pandemic, we asked tough questions; how we as a community — especially the business sector, and also the government, the policy makers — responded to this unprecedented crisis," Fang told CBC News.

"How businesses actually changed their operations, workplace practices. And also how to prepare for [the] future in case such events would occur again."

Some businesses have suffered — with some closing down — while others prospered, Fang noted. Some businesses introduced artificial intelligence and automation technology to streamline practices and reduce costs, he said, which meant high upfront costs without knowing if the investment would pay off.

His research found labour shortages were deepest felt in skilled and general trade positions. He also determined that in the face of labour shortages, employers increased wages and adjusted hours and scheduling, as well as hired people who weren't qualified for jobs.

Fang said his team surveyed 800 organizations across Atlantic Canada about their experiences and conducted in-depth interviews with managers, owners and CEOs. In 2022 his team also did site visits where participants were asked to reflect on their experiences.

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COVID-19 kicked off a workplace cultural shift, making it hard to fill positions, says employers (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.

Well, if they say so it must be true, of course, but at what cost to the poor Irish taxpayer? Ireland, like cloudy, rainy GB, is an unlikely location to site profitable solar farms.

Three solar farms set to power 10,000 Irish homes a year

Dublin-based developer BNRG and asset manager Impax Asset Management have reached financial close on the deal

Sat Apr 27 2024 - 05:00

Dublin-based developer BNRG and asset manager Impax Asset Management have reached financial close on the development of three solar farms that will have a combined peak capacity of 43MW, which is enough renewable power to supply 10,000 homes a year.

Two of the farms will be located in Co Kildare, with the other one in Cork in what industry sources estimate will involve an investment of in excess of €35 million. They are due to be operational next year. This is the first project to commence construction for the groups following their joint venture deal in 2022.

Separately, BNRG chief executive David Maguire, who founded the company in 2007, has been named a finalist in the EY Entrepreneur of the Year Awards in the international category.

“BNRG is on track to deploying 1.2GW of solar in Ireland by 2027, representing an investment of circa €575 million in Irish renewable energy infrastructure,” said Mr Maguire. “Much of this capacity will be construction ready by end-2026 and ready to energise by 2028. That’s enough energy to supply about 279,000 homes in Ireland every year for 40 years.”

The three solar projects are being funded by a combination of equity provided by BNRG and Impax Asset Management, as well as non-recourse senior debt from French investment bank Société Générale.

The projects, which were successful in the second auction of the Government’s renewable electricity support scheme, will benefit from State support up to 2040, as part of the Government’s bid to reach its climate action plan green energy goals.

Three solar farms set to power 10,000 Irish homes a year – The Irish Times

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

World Debt Clocks (usdebtclock.org)

When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe.

 

Frederic Bastiat.