Baltic Dry Index. 1714 -107 Brent Crude 89.00
Spot Gold 2283 US 2 Year Yield 4.70 -0.02
The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.
Alan Greenspan.
Are global stocks merely pausing or rolling over?
Has the EV hype and boom already turned to bust?
Have recent US statistics put off a Fed rate cut in June.
Did the Taiwan earthquake just disrupt global chip supply?
Did the IDF deliberately target a food
distribution charity in Gaza? Another mistake like the USS Liberty?
Time will tell.
Asia markets
track Wall Street declines; electric vehicle shares drop on demand worries
UPDATED TUE, APR 2 2024 11:53 PM EDT
Asia-Pacific
stocks fell Wednesday, tracking declines on Wall Street overnight, with shares
of electric vehicle makers dropping on demand worries.
BYD shares
fell 1.5% after the Chinese EV maker said first-quarter sales plunged 43%
quarter over quarter.
Hong Kong’s Hang Seng index opened
0.5% lower after rising more than 2% in the previous session. Other EV makers
also fell, including Nio down 2.5% and Li Auto down 1.5%.
Tesla’s first-quarter
vehicle deliveries dropped 8.5%
from a year ago, sending shares of the U.S. EV maker down 5%
overnight.
China’s CSI 300 was 0.44% down
even as the country’s service sector activity expanded at its fastest pace
since December.
Taiwan was hit by a powerful
earthquake early Wednesday. The Taiwan Weighted
Index shed
0.33%.
Japan’s Nikkei 225 fell
1.07%, with the broad-based Topix 0.49% lower.
South Korea’s Kospi also
slipped 1.46%, while the small cap Kosdaq down by 1.48%.
In Australia, the S&P/ASX 200 fell
1.26%, extending its declines from the previous session.
Declines on Wall Street also hit
sentiment as stubborn inflation figures last week and strong economic data
Monday pushed Treasury yields higher and reduced odds of the U.S. Federal
Reserve cutting interest rates in June.
The Dow Jones Industrial Average fell
for a second
day as bond yields rose and expectations that the Fed would cut
interest rates in June fell.
The Dow closed nearly 400 points,
or 1% lower, while the S&P 500 slid
0.72%. It was the worst day since March 5 for the Dow and the S&P 500. The Nasdaq Composite shed
0.95%.
Asia
markets live updates: EV makers, Federal Reserve, China data (cnbc.com)
Stock futures are
little changed after Dow’s second straight losing day in new quarter: Live
updates
UPDATED TUE, APR 2 2024 10:10 PM EDT
U.S. stock
futures were little changed Tuesday night after the Dow Jones Industrial
Average fell for a second day in a rough start to the quarter.
Dow
futures fell
by 60 points, or 0.08%. S&P 500
futures were
lower by 0.17%, while the Nasdaq 100 futures dipped
0.2%.
Wall Street is coming off a
losing session for the major benchmarks after sticky inflation data from last
week, as well as some strong economic data, had investors concerned the Federal
Reserve will take longer to cut interest rates. Treasury yields spiked, with
the rate on the 10-year note touching its highest level since November. Oil
prices also rose to five-month highs.
On Tuesday, the 30-stock Dow dropped
nearly 400 points, or 1%. The S&P 500 lost
0.7%, while the Nasdaq Composite tumbled
nearly 1%.
Still, some market observers
remain optimistic overall on equities, saying stocks are due for some
consolidation after a strong start to the year. The S&P 500 is coming off
its best first quarter since 2019.
---- On Wednesday, investors will get
more insight into the labor market with the ADP private payrolls report, which
comes ahead of the March jobs data on Friday. The ISM services index is set to
release after the open.
Federal Reserve
Chair Jerome Powell is also set to speak, as is a slew of other central bank
speakers including Fed Governors Michelle Bowman and Adriana Kugler. Chicago
Fed President Austan Goolsbee and Fed vice chair for supervision Michael Barr
will also be speaking at events.
On the earnings
front, Levi Strauss will be reporting after the close.
Stock market today: Live updates (cnbc.com)
Next, has the EV boom turned into bust as the
problems of owning EVs have turned off potential buyers? What does it mean for
the global economy if we’re in the start of an EV bust?
Tesla shares fall
after deliveries drop 8.5% from a year ago
A look at the day ahead in
European and global markets from Tom Westbrook
The strongest quake to hit Taiwan
in at least 25 years has also hit a pressure point in the global supply chain.
The island accounts for about 90% of production for chipmaker
TSMC (2330.TW) and while its plants are
mostly on the opposite coast from the epicentre, they are full of fragile
equipment that's crucial to turning out chips for global firms.
TSMC said it had evacuated some fabrication plants
and its safety systems were operating normally, while it confirmed details of
the impact. The quake has killed four people, knocked down buildings in the
eastern county of Hualien, and was felt in Shanghai as aftershocks rattled
Taipei through the morning.
Serious damage to chip foundries would ripple
around the world and highlight the urgency of U.S. President Joe Biden's
strategy of encouraging onshore production to reduce reliance on Taiwan's
output.
Shares of TSMC, which has a
more than 60% share of global contract chipmaking and a monopoly over advanced
microprocessors, were down 1.4% in early trade.
Apple (AAPL.O) supplier Foxconn's stock (2354.TW) fell more than 2% and
shares of flat-panel maker Au Optronics (2409.TW) dropped 1.7%. Markets more
broadly also slipped as investors await an appearance from U.S Federal Reserve
Chair Jerome Powell and U.S. services and jobs figures due later in the day.
Easter Monday's
stronger-than-expected U.S. manufacturing data seemed to trigger selling in the
bond market that pushed benchmark 10-year yields past major chart resistance,
unleashing even more selling.
Ten-year yields steadied at 4.35% in Asia trade on Wednesday. An
uneasy calm has settled on foreign exchange markets, with traders leery of
testing the mettle of Japanese authorities who have ramped up warnings of possible
intervention.
The yen was steady at 151.55 per dollar.
European inflation figures are also due later in
the session, with a slight cooling expected.
Morning
Bid: Markets brace for supply chain aftershock | Reuters
TSMC evacuates
some factory lines after Taiwan’s strongest earthquake in 25 years
Taiwan
Semiconductor Manufacturing Co evacuated
some production lines after a major
earthquake hit Taiwan early Wednesday.
The island was rocked by a massive
earthquake that collapsed buildings and prompted tsunami
advisories from Japan and the Philippines.
A TSMC spokesperson said safety
systems were operating normally.
“To ensure the safety of personnel,
some fabs were evacuated according to company procedure,” the person said in a
statement, adding that the company was confirming the details of the impact.
Shares
of TSMC fell 1.5% in early trading.
The earthquake registered a magnitude of 7.4 in Hualien County, the island’s biggest
quake since 1999, according to the U.S. Geological Survey. Tremors were felt in
the capital city of Taipei.
Reuters reported, citing Taiwan’s fire
department, that at least one person has died and more than 50 were injured.
The Japan Meteorological Agency issued
tsunami advisories for some of the country’s southern islands and regions, but
later removed those designations. The Philippine Institute of Volcanology and Seismology also
raised a tsunami warning in the country following the Taiwan quake.
Flights schedules were disrupted in
Japan, with some Japan
Airlines flights canceled following the earthquake in Taiwan.
TSMC evacuates some factory lines after Taiwan's strongest earthquake in 25 years (cnbc.com)
Finally, a “mistake” or a deliberate IDF
strike on a difficult to work with food charity? How could such a “mistake” occur of a clearly
marked convoy known to the IDF to have just unloaded 100 tons of food aid from
the sea?
Israel says airstrike
unintentionally killed aid workers in Gaza, allies demand explanations
By Nidal Al-Mughrabi April 3, 2024 1:34 AM GMT+1
April 2 (Reuters) - Prime Minister Benjamin
Netanyahu said on Tuesday Israel mistakenly killed seven people working for the
aid charity World Central Kitchen in a Gaza airstrike, and the U.S. and other
allies called for explanations amid widespread condemnation.
Israel's military voiced "sincere sorrow"
over the incident, which ratcheted up international pressure for steps to ease
the disastrous humanitarian situation in Gaza nearly six months into Israel's
siege and invasion of the Palestinian enclave.
The strike on the World Central Kitchen convoy
killed citizens of Australia, Britain and Poland as well as Palestinians and a
dual citizen of the United States and Canada.
WCK, which was founded by celebrity chef Jose
Andres, said its staff were traveling in two armored cars emblazoned with the
charity's logo and another vehicle, and had coordinated their movements with
the Israeli military.
"Unfortunately in the past day there was a
tragic event in which our forces unintentionally harmed non-combatants in the
Gaza Strip," Netanyahu said in a video statement.
"This happens in war.
We are conducting a thorough inquiry and are in contact with the governments.
We will do everything to prevent a recurrence."
The Israeli military pledged an investigation by "an
independent, professional and expert body".
At least 196 humanitarian workers have been
killed in Gaza since October, according to the United Nations, and
Hamas has previously accused Israel of targeting aid distribution sites.
In a call on Tuesday, British Prime Minister Rishi
Sunak told Netanyahu that Britain was appalled by the deaths, which included
three Britons, and demanded a thorough and transparent independent
investigation, Sunak's office said.
Australian Prime Minister Anthony Albanese said he
expressed "anger and concern" to Netanyahu in a separate call.
More
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.
[UK] Shop inflation falls below 2pc in boost for rate cut hopes
April 2, 2024
Shop inflation has fallen
below 2pc for the first time since the Bank of England began raising borrowing
costs, in a boost for hopes of an imminent rate cut.
Prices in shops rose by 1.3pc
on average in March compared to a year earlier, according to the British Retail
Consortium (BRC). It marked the weakest annual growth since the Bank started
raising interest rates in December 2021.
Inflation in shops
decelerated sharply from 2.5pc in February, with the prices of goods in fact
getting cheaper month on month.
Food prices dropped 0.3pc
between February and March, while non-food items were 0.4pc cheaper.
The latest
figures will fuel hopes that interest rate cuts are imminent. The energy
price cap, enforced by the regulator Ofgem, will fall by around 12pc this month
in a move that forecasters believe may help push inflation below the Bank of
England’s 2pc target.
Traders expect the first cut
in June, with several more expected over the next 12 months to take the base
rate to 4.25pc.
Governor Andrew Bailey said
last week interest rate cuts were “on the way” following encouraging signs that inflation was
easing, though he said more evidence was needed.
Shop price inflation is one
of several measures the Bank looks at when gauging overall inflation. Other
indicators include housing costs, service prices, wages and energy costs.
The price of everything from
dairy products to electronics fell in the shops last month, the BRC said.
Helen Dickinson, chief
executive of the BRC, said: “While Easter treats were more expensive than in previous years due to high global cocoa and sugar prices,
retailers provided cracking deals on popular chocolates, which led to price
falls compared to the previous month.
“Dairy prices also fell on
the month as farmgate prices eased, and retailers worked hard to lower prices
for many essentials. In non-food, prices of electricals, clothing and footwear
fell as retailers increased promotions to entice consumer spending.”
The BRC’s figures add to the
growing body of evidence suggesting that the worst of the price shock is now
behind us. Official numbers show food price inflation peaked at almost
20pc last year, marking the steepest rise since at least the late 1980s.
More
Shop inflation falls below 2pc in boost for rate cut
hopes (msn.com)
Covid-19
Corner
This section will continue until it becomes unneeded.
Below, “vaccine fatigue” or vaccine complications awareness?
Uptake Of COVID-19 Vaccine Is Up, But Still Way Below 2021
Published 5 hours ago on April 2, 2024
(CTN News) – The number of people
getting Covid-19 vaccines has increased since the new one was released last
month, which signals that a small bump has taken place.
It is important to note that the
latest formulation from Pfizer has been created specifically to combat the
latest variants of Omicron.
Based on Te Whatu Ora figures,
just over 14,000 people were vaccinated in the week ending 15th of March.
There were 11,000 of them, most
of them people receiving their
third or subsequent booster shot.
In some weeks, hundreds of thousands
of people were Covid vaccinated, which is more than double the number in the
busiest week in February, but it is still low when compared to the peak of the rollout
when hundreds of thousands of people were vaccinated.
According to Helen Petoussis
Harris, an immunologist at the University of Massachusetts Medical School, the
lower overall uptake could be the result of people not keeping up to date with
the latest developments in Covid vaccines, or it may also be the result of
vaccine fatigue.
More
Uptake Of COVID-19 Vaccine Is Up, But Still Way Below
2021 - CTN News (chiangraitimes.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.
The
eclipse will affect solar power in states like California that are far outside
the path of totality
April 1, 2024
- The solar
eclipse on April 8 will affect solar power generation.
- In the US,
the path of totality will span from Texas to Maine but other states will
be affected.
- The growth in
solar power means the impact will be about three times higher than
the 2017
eclipse.
On April 8, millions of people plan to put on a pair of
eclipse glasses and watch as the moon crosses in front of the sun. While the
event will affect solar power generation, everyone's lights should still be on when they go back
inside.
In the US,
the path of totality —
where the moon will appear to fully block the sun — will stretch from Texas to
Maine. However, electricity providers in other states with lots of solar energy
also need to have power reserves ready, Barry Mather, an engineer with the
National Renewable Energy Laboratory, told Business Insider.
"This eclipse actually
is going to impact solar generation across the entire North American continent,
practically," he said. As the moon shades the sun, it will diminish the
amount of sunlight that solar panels receive.
However, because we can
precisely predict where and when the eclipse will be, that means utilities can
plan around them to avoid blackouts.
"I
fully expect that we're all prepared for this," Mather said.
There are quite a few reasons
this year's eclipse will be different from
others in the past.
The 2017 total solar eclipse in
the US had a completely different path of totality than this year's, moving
from Oregon to South Carolina in the US. The country also started generating
about three times as much solar power in the past seven years, Mather said.
"The market is just growing very
quickly," he said, "so the impact's going to be about three times as
high as it was in 2017."
However, Mather said there
was very little battery energy storage during
the last eclipse. "We still don't have a ton, but we do have some,"
he said.
To make up for the decrease
in solar power, utilities
will have to turn to other sources.
More
Finally,
our latest new section, the world global debt clock. Nations debts to GDP
compared.
World Debt
Clocks (usdebtclock.org)
Since I've become a central banker, I've learned to mumble with great incoherence. If I seem unduly clear to you, you must have misunderstood what I said.
Alan Greenspan.
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