Wednesday, 8 May 2024

Stocks, Is/Was that The Top? CBDC’s Or Gold? Food Chain Pressures.

Baltic Dry Index. 2083+102   Brent Crude  82.69

Spot Gold 2319           US 2 Year Yield 4.82  +0.01

 

Once you run current-account deficits, you depend on the kindness of strangers. This might be the beginning of the end of the American empire.

Nouriel Roubini.

In the stock casinos, was yesterday or today the 2024 top?

Picking tops is never easy, but with stocks priced to perfection, two wars running and with both entering their final phases, to dinosaur Graeme, this doesn’t seem a good time to be gambling on over-priced stocks depending on a greater fool buyer.

Besides, I think inflation, especially food price inflation, is about to soar in the rest of 2024 and there’s nothing that central banksters or bent politicians can do about it.

Time to join the insiders who have been increasingly selling out of stocks.

 

Asia-Pacific markets mostly fall as investors parse through earnings from the region

UPDATED WED, MAY 8 2024 11:11 PM EDT

Asia-Pacific markets were largely down on Wednesday as investors parsed through earnings from the region and awaited results of Japanese giants Toyota and Mitsubishi later in the day.

Singapore’s United Overseas Bank fell almost 1% even as the bank’s net profit of 1.47 billion Singapore dollars ($1.08 billion) in the first quarter beat LSEG estimate of SG$1.43 billion.

The broader Straits Times Index was down 0.73%.

Investors also await China’s April trade data and Japan’s March pay numbers, both due Thursday.

apan’s Nikkei 225 slipped 1.37%, while the broad based Topix was down 1.22%.

South Korea’s Kospi was flat after leading Asian markets higher on Tuesday. The small-cap Kosdaq meanwhile fell 0.65%.

Hong Kong’s Hang Seng index was the only outlier as it rose 0.43%, while mainland China’s CSI 300 index fell 0.45%.

The Australian S&P/ASX 200 also was trading close to the flatline.

Overnight in the U.S., the Dow Jones Industrial Average notched a fifth straight day of gains and rose marginally, while the S&P 500 inched up 0.13%. In contrast, the Nasdaq Composite slipped 0.1%.

Asia markets live updates: Toyota, Mitsubishi earnings, UOB earnings (cnbc.com)

 

European markets head for muted, mixed open ahead of more earnings reports

UPDATED WED, MAY 8 2024 12:16 AM EDT

European markets are heading for a mixed open Wednesday as investors look ahead to more earnings reports in the region.

Alstom, BMW, Skanska, ABInbev, Siemens Energy, Swatch Group and Munich Re are among the companies reporting Wednesday.

Asia-Pacific markets were largely down overnight as investors parsed through earnings from the region and awaited results of Japanese giants Toyota and Mitsubishi. Meanwhile, Dow Jones Industrial Average futures sat near flat Tuesday night after the blue-chip average clinched its longest winning streak since December.

European markets live updates: stocks, news, data and earnings (cnbc.com)

 

Dow futures are little changed after index notches longest winning streak since December: Live updates

UPDATED WED, MAY 8 2024 8:08 PM EDT

Dow Jones Industrial Average futures sat near flat Tuesday night after the blue-chip average clinched its longest winning streak since December.

Futures tied to the 30-stock average lost 10 points, inching marginally below its flatline. S&P 500 futures and Nasdaq 100 futures also both traded near flat.

In after-hours trading, Lyft and Wynn Resorts added more than 6% and 2%, respectively, on the back of stronger-than-expected quarterly results. Reddit surged more than 14% following its first earnings report as a public company.

Those moves follow a muted and mixed day on Wall Street. The Dow ticked higher by nearly 0.1% and posted its fifth positive session, which marks its longest winning run going back to December. The S&P 500 also inched up by about 0.1%, while the Nasdaq Composite slipped 0.1%.

The 10-year U.S. Treasury yield took a leg down in the session, providing upward momentum for stocks. But the market was hampered by a slide of more than 9% in Disney shares after the entertainment giant missed Wall Street’s revenue expectations and offered soft guidance.

“Stocks are going to celebrate any decline in yield, and you’ve seen that over the last several days,” said Adam Crisafulli, founder of Vital Knowledge, on CNBC’s “Closing Bell: Overtime.” “But eventually, to the extent you see growth slow further, there will be a disconnect between Treasurys and equities, with Treasurys continuing to rally while stocks get caught up a little bit.”

Earnings remain top of mind for investors heading into Wednesday, with Uber and Shopify slated to post results before the bell. After-the-bell reporters include technology names AirbnbInstacart and Bumble, in addition to so-called meme stock AMC.

Nearly 85% of S&P 500 corporations have already shared quarterly results this earnings season. Of those, approximately 80% have surpassed Wall Street expectations, according to FactSet.

Traders will also watch for economic data on wholesale inventories due Wednesday morning. Federal Reserve officials including Vice Chair Philip Jefferson, Boston Fed President Susan Collins and Fed Governor Lisa Cook are all expected to give remarks throughout the day.

Stock market today: Live updates (cnbc.com)

In other disturbing food chain news, the news from Brazil’s “granary” goes from bad to worse.


Flood-hit Brazil scrambles to deliver aid, water amid forecasts of more rain

Teams in flood-ravaged southern Brazil scrambled Tuesday to deliver humanitarian aid to Porto Alegre and other inundated municipalities, where queues formed for drinking water as forecasters warned of more downpours.

Issued on: 

The worst natural calamity ever to hit the state of Rio Grande do Sul has claimed at least 95 lives, with 372 people reported injured and 131 still missing, according to the civil defense force that handles disaster relief.

"The tolls continue to rise and unfortunately we anticipate that they are still very inaccurate because the emergency is continuing to develop," said Governor Eduardo Leite.
Nearly 400 municipalities have been hit, including state capital Porto Alegre, with more than 160,000 people forced to leave their homes as streets have transformed into rivers after days of record-breaking rain.
Porto Alegre is home to some 1.4 million people and the larger metropolitan area has more than double that number.
The state's Guaiba River, which runs through Porto Alegre, remained at historic high levels Tuesday, and officials said five dams were at risk of rupturing.
For tens of thousands of people stranded by impassable roads, collapsed bridges and flooded homes in Rio Grande do Sul, "the most urgent demand is (drinking) water," said civil defense official Sabrina Ribas.
Helicopters were buzzing overhead Tuesday delivering water and food to communities most in need, while work continued on restoring road access.
In Alvorada, a municipality east of Porto Alegre, people queued with buckets and plastic bottles, collecting drinking water from the few taps still working.
Most shops have run out of bottled water.
----President Luiz Inacio Lula da Silva said more emergency funds would be freed up Tuesday, vowing there would be "no lack of resources to meet the needs of Rio Grande do Sul."
Some 15,000 soldiers, firefighters, police and volunteers were hard at work in planes and boats, even jet skis, to rescue those trapped and transport aid.
Brazil's neighbors Uruguay and Argentina have sent rescue equipment and trained personnel.
Celebrities were also chipping in, with footballer Neymar sending a plane with donations. He said on Instagram he was "praying for everything to return to normal."
As the calamity showed no signs of abating, weather forecasts suggested it could still get worse.

The Inmet meteorological institute warned of possible storms in the south of Rio Grande do Sul until Wednesday, followed by rainfall in the center and north which it said would imperil rescue efforts.

According to weather agency MetSul, the flooding has "changed the map of the metropolitan region" of Porto Alegre.

Lula warned that if harvests are delayed by the flooding in this deeply agricultural region, the country "will have to import rice and beans."

Flood-hit Brazil scrambles to deliver aid, water amid forecasts of more rain (france24.com)

Finally, as the Biden USA runs up an unsustainable more federal debt of 1 trillion fiat dollars every 100 days, a global rush to get hold of gold is now underway.

Just don’t tell anyone in Washington, District of Crooks, London, or Brussels.

For where I think we are headed, visit the new LIR CBDC page.


Gold bars are selling like hot cakes in Korea’s convenience stores and vending machines

Aside from ramen and sausages, South Korea’s convenience stores have a new popular item on the menu — gold bars. 

The country’s largest convenience store chain, CU, has been collaborating with the Korea Minting and Security Printing Corporation (KOMSCO) to offer customers mini gold bars — and they’re selling like hot cakes. 

A variety of finger-nail sized gold bars weighing between 0.1 gram and 1.87 gram have been up for sale at CU outlets since April. A 1.87 gram bar sells for 225,000 won ($165.76) and a 0.5 gram bar sells for 77,000 won.

Priced at 113,000 won each, 1 gram bars were sold out within two days, according to local news reports. The bars come with congratulatory messages, birthday wishes and even designs for personality types.

People in their 30s were most active in purchasing these gold bars, accounting for over 41% of the total sales since their launch, according to CU’s commerce phone app Pocket CU. Those in their 40s make up 35.2% of the sales, followed by people in their 50s at 15.6%. People in their 20s accounted for 6.8% of all sales.

Demand for bars and coins in South Korea rose 27% year on year to 5 tons in the first quarter of this year amid rising prices of the yellow metal, the World Gold Council said in a recent report. This was the sharpest quarterly increase in gold purchases in South Korea in more than two years, WGC noted. 

Other convenience stores are also riding the bullion wave. In South Korea’s GS25 convenience store chain, customers can buy small gold wafers from vending machines.

 

---- Consumers in Asia’s largest economy, China, have has also been buying gold, with the collecting of 1 gram small beans in glass jars becoming a trend among the country’s youth. China is also leading consumer demand for bullion, with the country overtaking India in 2023 to become the world’s largest buyer of gold jewelry. 

Separately, in the U.S. last year, retail warehouse giant Costco became a popular one-stop shop for one ounce gold bars priced at close to $1,900.

Gold is selling like hot cakes in Korea's convenience stores, vending machines (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.

Bank of England not yet ready to cut interest rates, say economists

May 7, 2024

UK borrowers might need to wait longer for a cut in interest rates, as experts suggest the Bank of England isn't ready to make a reduction just yet.

The bank's Monetary Policy Committee (MPC), responsible for setting UK interest rates, is expected to maintain the current 5.25% rate at its upcoming Thursday announcement. This rate has been steady since August last year.

Those waiting for borrowing costs to drop may face an extended period of pressure. In the March MPC meeting, only Swati Dhingra voted for a reduction of 0.25 percentage points, while the other eight members opted for no change.

Investec's chief economist Philip Shaw said, "This broad direction illustrates that collectively the committee is moving gradually towards a rate cut." However, he believes it's unlikely they'll take action this time around, expecting the Bank rate to stay at 5.25% for the sixth consecutive meeting.

Mr Shaw also mentioned the possibility of another MPC member joining the "easing camp" and voting for a rate decrease on Thursday. Interest rates serve as a mechanism to control UK inflation, which has seen a significant drop from the high levels experienced in 2022 amid soaring energy costs and the peak of the cost-of-living crisis.

The latest official figures reveal that the rate of Consumer Prices Index (CPI) inflation dropped to 3.2% in March. However, experts have indicated that two key economic indicators for the Bank of England pay growth and services sector inflation have remained more stubborn.

More

Bank of England not yet ready to cut interest rates, say economists (msn.com)

Stagflation warning: Service economy contracts as prices rise

 05/06/2024 17:14:51 GMT

In another stagflation warning sign, the U.S. service sector contracted in April even as service prices rose.

The Institute for Supply Management's non-manufacturing PMI dropped to 49.4 in April, dipping from 51.4 in March. The expectation was for the index to increase to 52.0.

A PMI reading below 50 signals a contraction in the service economy.

It was the lowest non-manufacturing PMI reading since December 2022.

Services account for more than two-thirds of U.S. economic activity.

An index measuring new orders for service businesses dipped to 52.2 in April, falling from a March reading of 54.4. Meanwhile, production in the service sector plunged from 57.4 to 50.9. The last time the services production index fell that low was May 2020, in the early months of the pandemic.

The survey's measure of services sector employment also fell, dropping from 48.5 in March to 45.9 in April.

Even as the service economy contracts, prices are heating up. The survey's measure of business input prices jumped to 59.2 from 53.4 in March.

This dovetails with CPI data that showed service price inflation increased to 5.27 percent in March. That was up from 4.95 percent in February. Service prices account for 57 percent of the CPI.

There is a word for a combination of rising prices, lagging economic growth, and rising unemployment - stagflation.

After the Federal Reserve FOMC meeting last week, Fed Chair Jerome Powell insisted there were no signs of stagflation.


“I don't really understand where concerns about stagflation are coming from. I don’t see the stag or the 'flation.”

You can certainly argue that the economic picture is nothing like the stagflationary years of the 1970s. But the warning signs are clearly there - as evidenced by the services PMI report and other recent economic data.

And the macroeconomic foundation has been set for a period of stagflation. We had an unprecedented amount of inflation created during the pandemic. The Federal Reserve alone injected nearly $5 trillion in new money into the economy. This is the definition of inflation. One of the consequences of monetary inflation is price inflation. And despite the Fed's efforts to quell price inflation, the central bank hasn't done enough. In fact, monetary policy remains loose by historical standards. That means the Fed continues to create inflation.

But the Fed has hiked interest rates enough to break things in this debt-riddled bubble economy. We're beginning to see signs of economic stagnation, including the recent non-manufacturing PMI, the first quarter GDP slowdown, and the April labor report.

Powell's assurances notwithstanding, stagflation appears to be a very real possibility.

Stagflation warning: Service economy contracts as prices rise (fxstreet.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

US shared intel with UK showing 'high likelihood' of COVID-19 lab leak: report

COVID-19 lab leak theory information disseminated through 'Five Eyes' intelligence alliance

Published May 5, 2024 12:24pm EDT

Mike Pompeo, when he was U.S. secretary of state, shared intel with the United Kingdom during the COVID-19 pandemic suggesting a "high likelihood" that the deadly coronavirus leaked from a Chinese lab, according to The Telegraph.

An intelligence alliance known as "Five Eyes" reportedly met in January 2021 to discuss the lab-leak theory, the outlet reported. Around the same time, Pompeo is said to have shared information from classified American reports put together by the State Department to then-U.K. Foreign Secretary Dominic Raab, as well as representatives from New Zealand, Canada and Australia. 

The British newspaper says two former Trump administration officials believe Raab – and the U.K. government as a whole – ignored the lab leak theory due to pressure from government scientists who leaned toward the theory that the illness had been transferred from animals to humans. 

"We saw several pieces of information and thought that they were, frankly, gobsmacking," one former official who worked on the intelligence in Pompeo's report told The Telegraph. "They obviously pointed to the high likelihood that this was indeed a lab leak."

The reports, consisting of information collected in the early days of the pandemic, were also shared with the U.K. via Five Eyes between October and December 2020. Five Eyes consists of Australia, Canada, New Zealand, the United Kingdom and the United States.

Information in one document obtained by The Telegraph states U.S. officials accused Chinese officials of "stonewalling," as well as "gross corruption and ineptitude." The information also reportedly showed that the Chinese military had been working with the Wuhan Institute of Virology for years before the pandemic, and that lab researchers got sick soon before COVID-19 was first reported in the area. 

On May 1, the U.S. House Select Subcommittee on the Coronavirus Pandemic called for a criminal probe into the origins of the COVID-19 virus.

The demands for an investigation come after the release of an interim staff report accusing EcoHealth Alliance President Dr. Peter Daszak of funding "dangerous gain-of-function research in Wuhan, China, without sufficient oversight."

 

EcoHealth Alliance is a non-governmental organization based in the United States and focused on researching pandemic prevention.

According to congressional lawmakers, EcoHealth used taxpayer dollars "to fund dangerous gain-of-function research at the Wuhan Institute of Virology (WIV)" in China. 

 

The NGO disputes that claim.

Fox News Digital previously reported that EcoHealth Alliance received millions of dollars in grants from the National Institutes of Health (NIH), and that U.S. taxpayer funds flowed to Chinese entities conducting coronavirus research through EcoHealth Alliance.

US shared intel with UK showing 'high likelihood' of COVID-19 lab leak: report | Fox News

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.

Today, who needs doctors, when coming soon, there’s an internet AI “doctor” ready and able to diagnose you.

Google's medical AI destroys GPT's benchmark and outperforms doctors

Paul McClure  May 06, 2024

Google Research and Google’s AI research lab, DeepMind, have detailed the impressive reach of Med-Gemini, a family of advanced AI models specialized in medicine. It's a huge advancement in clinical diagnostics with massive real-world potential.

Doctors treat a multitude of patients daily, with needs ranging from simple to very complex. To deliver effective care, they must be familiar with each patient’s health record and keep up-to-date with the newest procedures and treatments. And then there’s the all-important doctor-patient relationship, built on empathy, trust, and communication. For an AI to come close to emulating a real-world doctor, it needs to be able to do all of these things.

The intersection of AI and medicine has really taken off. In the last six months, New Atlas has reported on AI models that aid less experienced doctors in identifying the precursors of colon cancer, diagnose childhood autism from eye images, and predict in real-time whether a surgeon has removed all cancerous tissue during breast cancer surgery. But Med-Gemini is something else.

Google’s Gemini models are a new generation of multimodal AI models, meaning that they can process information from different modalities, including text, images, videos, and audio. The models are adept at language and conversation, understanding the diverse information they’re trained on, and what’s called ‘long-context reasoning,’ or reasoning from large amounts of data such as hours of video or tens of hours of audio.

Med-Gemini has all of the advantages of the foundational Gemini models but has fine-tuned them. The researchers tested these medicine-focused tweaks and included their results in the paper. There’s a lot in the 58-page paper; we’ve selected the most impressive bits.

Arriving at a diagnosis and formulating a treatment plan requires doctors to combine their own medical knowledge with a raft of other relevant information: patient symptoms, medical, surgical and social history, lab results and the results of other investigative tests, and the patient’s response to prior treatment. Treatments are a ‘movable feast,’ with existing ones being updated and new ones being introduced. All these things influence a doctor’s clinical reasoning.

That’s why, with Med-Gemini, Google included access to web-based searching to enable more advanced clinical reasoning. Like many medicine-focused large language models (LLMs), Med-Gemini was trained on MedQA, multiple-choice questions representative of US Medical License Exam (USMLE) questions designed to test medical knowledge and reasoning across diverse scenarios.

----Med-Gemini was tested on 14 medical benchmarks and established a new state-of-the-art (SoTA) performance on 10, surpassing the GPT-4 model family on every benchmark where a comparison could be made. On the MedQA (USMLE) benchmark, Med-Gemini achieved 91.1% accuracy using its uncertainty-guided search strategy, outperforming Google’s previous medical LLM, Med-PaLM 2, by 4.5%.

More

Google's medical AI destroys GPT's benchmark and outperforms doctors (newatlas.com)

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

World Debt Clocks (usdebtclock.org)

Be careful about reading health books. You may die of a misprint.

Mark Twain.

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