Wednesday, 24 April 2024

Buy the EV Dip. Tesla Promises Cheap EVs Plus Full Self Driving.

Baltic Dry Index. 1804 -78     Brent Crude  88.50

Spot Gold 2327            US 2 Year Yield 4.86 -0.11

Neither a state nor a bank ever have had unrestricted power of issuing paper money without abusing that power.

David Ricardo.

In the stock casinos, especially the US stock casinos, the Great Disconnect from reality is back.

Nowhere better displayed by Tesla, where the stock rallied after announcing, falling profits, deliveries and sales. But not to worry, Tesla CEO Musk promised a new cheap EV for next year plus a Full Self Driving option.  I wonder what he means by “cheap?”

 

Nikkei leads Asian markets as Wall Street continues rally; Australia inflation slows for fifth straight quarter

UPDATED WED, APR 24 2024 12:31 AM EDT

Japan’s Nikkei 225 led gains in Asia as markets in the region rose across the board, following Wall Street’s continued rally for a second straight day.

The Japanese benchmark jumped 2.3%, while the broad based Topix was up 1.56%.

First-quarter inflation figures from Australia on Wednesday showed the consumer price index rose 3.6% year-over-year, slightly above a Reuters poll expectation of a 3.5% rise. Still, that marked its fifth straight quarter of slowing inflation.

The S&P/ASX 200 pared earlier gains to rise 0.06% after the CPI reading.

South Korea’s Kospi climbed 1.91%, powered by a 4% gain in heavyweight Samsung Electronics, while the small cap Kosdaq was 1.94% higher.

Hong Kong’s Hang Seng index rose 1.67%, while the Hang Seng Tech index gained 2.6%. Shares of Sensetime soared 31.2% before trading was halted at 11:15 a.m.

China’s CSI 300 was flat.

Overnight in the U.S., all three major indexes climbed for a second straight session on Tuesday as a strong batch of corporate earnings assuaged concerns over higher rates.

The Dow Jones Industrial Average climbed 0.69%, to mark a four day winning streak. The S&P 500 gained 1.2%, while the Nasdaq Composite saw the largest gain of 1.59%.

Asia markets live updates: Wall Street earnings, Australia CPI (cnbc.com)

 

Dow closes more than 250 points higher, S&P 500 pops 1% as strong earnings propel stocks: Live updates

UPDATED TUE, APR 23 2024 4:21 PM EDT

Stocks ripped higher for a second session on Tuesday as a strong batch of corporate earnings assuaged concerns over higher rates.

The Dow Jones Industrial Average climbed 263.71 points, or 0.69%, to close at 38,503.69. The S&P 500 gained 1.2% to finish the session at 5,070.55, while the Nasdaq Composite ticked up 1.59% to end at 15,696.64.

Spotify surged 11.4% after surpassing Wall Street’s first-quarter estimates and issuing rosy second-quarter guidance. UPS shares edged 2.4% higher after the delivery giant surpassed expectations for earnings. Shares of GE Aerospace added 8.3% after the company reported an earnings beat. PepsiCo, meanwhile, dipped 2.9% after reporting that recalls and a weaker lower-income consumer hurt demand in the U.S.

Tesla is slated to report earnings after the bell, followed by Meta Platforms on Wednesday afternoon. Google parent company Alphabet and Microsoft round out the technology-heavy earnings week on Thursday.

Roughly 20% of the S&P 500 has reported earnings through Tuesday. Of those companies, 76% have beaten analysts’ expectations, FactSet data shows.

Tuesday’s moves come after an upbeat session on Wall Street. Investors bought the dip in tech stocks after a recent sell-off in key names such as Nvidia, which had been dinged recently amid fears of higher inflation and the prospect of elevated interest rates.

More

Stock market today: Live updates (cnbc.com)

 

JPMorgan CEO Dimon says US economy is booming

By Nupur Anand 

April 23 (Reuters) - JPMorgan Chase (JPM.N) opens new tab CEO Jamie Dimon expressed confidence in a robust U.S. economy backed by strong employment and healthy consumer finances.

The U.S. economic boom is "unbelievable," Dimon said at an Economic Club of New York event on Tuesday. "Even if we go into recession, the consumer's still in good shape."

Still, he warned about the potential economic effects of the rising national debt, inflation and geopolitical conflicts.

Dimon, who has run the largest U.S. lender for more than 18 years, has cautioned that inflation could be more persistent than expected, keeping interest rates higher for longer.

Turning to public policy, the 68-year-old said the government would be better off with more "practitioners" at the table. His name has been floated for senior economic roles.

"I want to help my country," Dimon, one of corporate America's most prominent executives, said in a wide-ranging interview with Marie-Josee Kravis, chair emerita of the Economic Club of New York.

"I want the next president, whoever it is, to put the other party (members) in their cabinet. That is what I would like to see. I would like to see practitioners go back to the government."

JPMorgan has previously declined to comment on speculation about Dimon joining the government, or said that he had no plans to run for office.

More

JPMorgan CEO Dimon says US economy is booming | Reuters

Finally, Tesla.


Tesla shares jump 13% after Musk says company aims to start production of affordable new EV by early 2025

Tesla reported a 9% drop in first-quarter revenue on Tuesday, the biggest decline since 2012, and missed analysts’ estimates, as the electric vehicle company weathers the effect of ongoing price cuts.

The stock jumped in extended trading after CEO Elon Musk told investors that production of new affordable EV models could begin sooner than expected.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Earnings per share: 45 cents adjusted vs. 51 cents expected
  • Revenue: $21.30 billion vs. $22.15 billion expected

Revenue declined from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income dropped 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.

The drop in sales was even steeper than the company’s last decline in 2020, which was due to disrupted production during the Covid-19 pandemic. Tesla’s automotive revenue declined 13% year over year to $17.38 billion in the first three months of 2024.

Musk said on the call that the company plans to start production of new models in “early 2025, if not late this year,” after previously expecting to begin in the second half of 2025. Musk also touted Tesla’s investments in artificial intelligence infrastructure, and said the company is in talks with “one major automaker” to license its driver assistance system, which is marketed in the U.S. as the Full Self-Driving, or FSD, option.

More

Tesla (TSLA) earnings Q1 2024 (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.

Chocolate and discount-loving Brits drive food inflation down for 14th straight month

April 23, 2024

Brits splurged out on chocolate and sought discounts at the supermarket, as grocery price inflation fell to 3.2 per cent over the four weeks to 14 April, marking the fourteenth monthly drop in a row.

The decline was driven by a “significant” increase in discount spending, new figures by Kantar show, with items bought on offer making up 29.3 per cent of supermarket sales – the highest level outside of Christmas since June 2021.  

This will factor into the Bank of England’s considerations when deciding when and by how much it should be cutting interest rates, in a bid to control sticky inflation. It came down to 3.2 per cent in March which was higher-than expected.

Fraser McKevitt, head of retail and consumer insight at Worldpanel by Kantar, said: “We’ve been monitoring steady annual growth in promotions over the past 11 months as retailers respond to consumers’ desire for value.  Deals helped shoppers save a massive £1.3bn in the latest four weeks, almost £46 per household.  

“This emphasis on offers, coupled with falling prices in some categories like toilet tissues, butter and milk, has helped to bring the rate of grocery inflation down for shoppers at the till.”

Supermarkets and other retailers were helped by a busy Easter as demand for chocolate eggs helped drive sales. 

----Fruit has also bumped up the list of Britain’s snack choices – 314 million more pieces of fruit were eaten between meals in 2023 than in 2013.”

Despite grocery inflation also edging down a fierce rivalry between supermarkets remains with many ramping up use of loyalty cards and price matching schemes to retain their customer base. 

Middle class favourite Ocado was again the fastest growing grocer this month, improving sales by 12.5 per cent in the 12 weeks to 14 April, ahead of the total online market which grew by 6.8 per cent.  

Ocado accounted for 1.9 per cent of take-home grocery sales, up from the 1.7 per cent it held a year ago.  

The retailer – which operates as a joint online venture with Marks and Spencer – has turned around its fortunes by constantly lowering its prices. 

More

Chocolate and discount-loving Brits drive food inflation down for 14th straight month (msn.com)

BOJ will hike rates if trend inflation accelerates, gov Ueda says

April 23, 2024

TOKYO (Reuters) -The Bank of Japan will raise interest rates again if trend inflation accelerates toward its 2% target as expected, governor Kazuo Ueda said, keeping alive market expectations of a further withdrawal of monetary support later this year.

"If our price forecasts change, that would also be a reason to change monetary policy. But we don't have any preset idea on the specific timing and pace" of rate hikes, Ueda told parliament on Tuesday.

The remarks come ahead of the BOJ's two-day policy meeting that ends on Friday, when the board is set to keep interest rates unchanged and announce fresh quarterly growth and inflation forecasts.

The BOJ is likely to project inflation will stay around its 2% target for the next three years, sources have told Reuters, which would cement expectations the central bank will raise interest rates again this year from current near-zero levels.

The central bank ended eight years of negative rates and other remnants of its unorthodox policy last month, making a historic shift away from decades of massive monetary stimulus that was aimed at quashing deflation and revitalising growth.

More

BOJ will hike rates if trend inflation accelerates, gov Ueda says (msn.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

Today, Greed v Greed in the UK High Court Chancery Division. Dewey, Cheatam & Howe v Grabbit & Runne?

This may hurt: English High Court set for Moderna and Pfizer/BioNTech Covid battle starting today

April 23, 2024

The English part of a global dispute billion dollar legal case involving big pharma giants Moderna, Pfizer and BioNTech over Covid patents, kicks off today.

Back in 2020 when Covid was spreading around the world, US pharma giant Modern’s mRNA vaccine was approved and issued for emergency use throughout the US.

The company made headline news after it said it wouldn’t enforce its patents related to Covid-19 vaccines during the pandemic, in an effort to not deter other companies and researchers from making similar vaccines. It later changed that position, limiting it to vaccines manufactured for low and middle-income countries.

The Massachusetts-based pharma company issued a lawsuit against US Pfizer and German BioNTech over allegedly breaching its patents. Commenting at the time, Moderna said it believed that Pfizer and BioNTech’s Covid vaccine infringed patents Moderna filed between 2010 and 2016 covering its mRNA technology.

Moderna claim suggests that it doesn’t want to remove Pfizer’s and BioNTech’s vaccines from the market, but instead, it wants compensation and damages.

This comes after the American company made more than $6bn (£5.7bn) in revenue during the pandemic. The company saw its turnover shoot up to $6.1bn (£7.6bn???) for the Q1 of 2022, compared to $1.9bn (£1.5bn) for the same period in 2021.

Both Pfizer and BioNTech fired back and launched a counterclaim against Moderna claiming its patents are invalid and should be revoked.

The lawsuit has also been filed in the US, Germany and the Netherlands. Earlier this month, Pfizer won a pause on the litigation in the Massachusetts Federal Court, as the parties await a decision from the US Patent Office.

While the US is on hold, England is going full stream ahead. The trial kicks off on Tuesday and is set to last under four weeks at the Chancery Division of the High Court in London.

The hearing will be split into two parts, first will be the technical part which will look at the patents, while the second part will be looking at Moderna’s 2020 pledge.

The trial is in front of Mr Justice Meade at the Rolls Building. US giant Moderna has enlisted a team from magic circle law firm Freshfields, while, Pfizer has called on Taylor Wessing and BioNTech has instructed Powell Gilbert for their defence (and counterclaim).

This may hurt: English High Court set for Moderna and Pfizer/BioNTech Covid battle starting today (msn.com)

People of privilege will always risk their complete destruction rather than surrender any material part of their advantage.

John Kenneth Galbraith.

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.

Interesting, but who will cover the fire risk if/when something goes wrong? JLR, Allye Energy or some independent insurance company? Who pays their premiums?

JLR powers up zero emissions charging on the go with first battery energy storage system using second-life Range Rover batteries

JLR has developed a new portable Battery Energy Storage System (BESS) using second-life Range Rover and Range Rover Sport PHEV batteries

April 23, 2024

Dubai, United Arab Emirates – JLR has partnered with energy storage start-up, Allye Energy, to create a novel Battery Energy Storage System (BESS) to provide zero emissions power on the go.

A single Allye MAX BESS holds seven second-life Range Rover and Range Rover Sport PHEV battery packs that are simply removed from the vehicles and slotted into customised racks, without unnecessary additional processing. Each BESS can store 270kWh of energy at full capacity, enough to power the average UK household for nearly a month*.

The BESS, which is the first to use JLR’s second life Range Rover batteries, can charge up to nine Range Rover PHEVs at any one time, and is designed to be easily charged by simply plugging it into any CCS-capable Vehicle Charger using the same input as JLR’s existing PHEV and BEV product portfolio. In addition, multi-input connectivity via powerlock connections enable it to be connected to renewable power at fixed or off-grid sites.

The MAX BESS can be used to replace diesel generators, historically relied on by the automotive industry, to power off-grid vehicle launches, events and vehicle tests in remote areas. JLR’s Engineering team are the first to utilise the new BESS, providing zero emissions power during testing of the new Range Rover Electric, due to launch later this year.

The average Diesel generator would typically use 16L of fuel per hour, equivalent to a daily total of 129.12kg of CO2 for three hours’ usage***. JLR’s Engineering team will use the BESS to power over 1000 hours of testing, saving more than 15,494kg of CO2 during the course of a year - equivalent to one passenger taking seven round-trip flights from London to New York.

The versatile BESS weighs less than 3.5 tonnes, allowing it to be fully portable or stationary, to provide energy storage for retailers or JLR sites. This would help JLR’s network of over 3000 retailers better leverage renewable energy such as solar and act as energy buffers to support fast charging where the local grid connection may be restricted. The unit will also be commercially available for use outside of JLR.

As part of its Reimagine strategy, JLR is investing £15bn into electrification by building a comprehensive EV ecosystem. This includes considering the full lifecycle of EV batteries, one of the new circular business models JLR is exploring in energy storage and beyond.

One example of how the BESS is being used practically in the development of Range Rover Electric is through the Engineering team’s prolonged endurance testing at remote off-road sites where only low power connections are available which would only enable a slow charge. The engineers can top up the BESS from a low power supply during testing and then transfer the power to the Range Rover Electric via fast charging from the BESS, much more quickly than directly charging the vehicle from the supply. Working in this way allows the testing to be completed in a much quicker time frame than would normally be possible.

Battery value chains are predicted to grow 30 percent annually from 2022 to 2030, to reach a value of more than $400 billion.  Second-life battery supply for stationary applications is predicted to exceed 200 gigawatt-hours per year by 2030, creating a global value over $30 billion****.

Engineered to the highest standards, JLR’s batteries can be safely deployed in low-energy situations once their health falls below electric vehicle requirements, which typically leaves a 70-80% residual capacity.  Following these second-life use cases, JLR will recycle the batteries so that raw materials can be recovered for re-use as part of a true circular economy

More

JLR powers up zero emissions charging on the go with first battery energy storage system using second-life Range Rover batteries (zawya.com)

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

World Debt Clocks (usdebtclock.org)

Experience, however, shows that neither a state nor a bank ever have [sic] had the unrestricted power of issuing paper money without abusing that power; in all states, therefore, the issue of paper money ought to be under some check and control; and none seems so proper for that purpose as that of subjecting the issuers of paper money to the obligation of paying their notes either in gold coin or bullion.

David Ricardo. 

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