Friday 10 May 2024

Stocks To Infinity And Beyond? Rate Cuts Coming!

Baltic Dry Index. 2166 -37      Brent Crude  84.41

Spot Gold 2365           US 2 Year Yield 4.80  -0.04

 

It is a well known and very important fact that America's founding fathers did not like taxation without representation. It is a lesser known and equally important fact that they did not much like taxation with representation.

John Kenneth Galbraith

In the stock casinos, tomorrow will be like today which was like yesterday. We will all get super rich buying up stocks, frontrunning the coming central bankster interest rate cuts.

 

Stock prices, to infinity and beyond.

 

What could possibly go wrong?

 

Asia markets track Wall Street gains amid renewed U.S. rate cut hopes; Hong Kong stocks hit 9-month high

UPDATED FRI, MAY 10 2024 12:37 AM EDT

Hong Kong led Asia-Pacific stocks on Friday as markets tracked Wall Street gains, with renewed hopes for rate cuts by the U.S. Federal Reserve bolstering market sentiment.

The Hang Seng index hit its highest level in nine months, up 1.62% after Bloomberg reported regulators were considering a proposal to exempt individual investors from paying taxes on dividends earned from Hong Kong stocks bought via Stock Connect.

In contrast, the mainland China’s CSI 300 lost 0.28%.

Elsewhere, Japan’s overall household spending in March fell 1.2% year on year, less than the 2.4% expected by a Reuters poll of economists. However, on a month-on-month basis, household spending rose 1.2%, compared with estimates of a 0.3% drop.

Japan’s Nikkei 225 was up 0.66%, while the broad-based Topix was 0.74% higher.

South Korea’s Kospi climbed 0.73%, but the small cap Kosdaq slipped 0.58%.

The Australian S&P/ASX 200 also inched up 0.33%.

Overnight in the U.S., all three major indexes climbed as fresh weekly jobless claims data came in at the highest level since August, raising expectations that central bankers might cut interest rates at some point this year.

The 30-stock Dow jumped 0.85% to notch its longest win streak since a nine-day run in December. The S&P 500 added 0.51%, while the Nasdaq Composite gained 0.27%.

Asia markets live updates: Japan trade, Japan household spending (cnbc.com)

 

Stock futures are little changed after Dow notches seven-day win streak: Live updates

UPDATED FRI, MAY 10 2024 7:57 PM EDT

U.S. stock futures were little changed on Thursday night after the Dow Jones Industrial Average posted its longest win streak going back to December.

Futures linked to the 30-stock Dow rose by 49 points, or 0.1%. S&P 500 futures climbed 0.09%, while Nasdaq 100 futures gained 0.1%.

Wall Street is coming off a positive session for the major averages. The blue-chip Dow advanced 0.85%, registering a seventh straight day of gains in the benchmark’s best showing since a nine-day win streak in December. The S&P 500 gained 0.51%, closing above 5,200 for the first time since early April. Meanwhile, the Nasdaq Composite rose 0.27%.

Investors have been more optimistic lately after the Federal Reserve indicated the next move is unlikely to be a hike, pointing to a cap on interest rates that could be bullish for equities. A strong earnings season, as well as some softer labor data, have also bolstered confidence in the stock outlook.

“What’s important in all of this context is, ‘are we in the early stages of a long-term bull market or not?’” Chris Hyzy, chief investment officer of Merrill and Bank of America Private Bank. “It feels comfortable saying it on a day like this, but we are, in our opinion.”

Stocks were on pace for a winning week as of Thursday’s close. The Dow has gained 1.8%. The S&P 500 and the Nasdaq Composite were higher by 1.7% and 1.2%, respectively.

A slate of central bank officials are scheduled to speak Friday, including Fed presidents Lorie Logan of Dallas, Neel Kashkari of Minneapolis and Austan Goolsbee of Chicago. Fed Governor Michelle Bowman will also make an appearance.

On the economic front, May consumer sentiment data that’s due out Friday is expected to ease slightly to 76.0, down from 77.2.

Stock market today: Live updates (cnbc.com)

 

Bank of England holds interest rates steady, but signals a cut is coming

PUBLISHED THU, MAY 9 2024 7:07 AM EDT

LONDON — The Bank of England on Thursday announced a widely-expected hold on interest rates following its May meeting, as it said restrictive monetary policy was working to bring down inflation.

Members of the central bank’s Monetary Policy Committee voted 7-2 to hold, with the latter favoring a cut. In the prior meeting only one member voted for a cut.

The MPC nonetheless cautioned that indicators of inflation persistence “remain elevated.”

It keeps the BOE’s key Bank Rate at 5.25%.

Market anticipation is building for interest rate cuts to begin in the summer, with money markets fully pricing in a 25 basis point reduction in August and 50 basis points overall this year.

Some economists see a cut as soon as the next meeting in June, and three or more cuts in 2024. That is largely because U.K. headline inflation is forecast to drop dramatically in April due to lower energy prices from the current 3.2% to below the BOE’s 2% target, according to some projections.

“While [economic] growth is increasing, the labor market continues to loosen. Ultimately, we think that will feed into weaker wage growth. We do expect that to come down across the course of this year,” Matthew Swannell, U.K. economist at BNP Paribas, told CNBC’s “Street Signs Europe” on Thursday.

“As well as that we see other costs coming down, particularly non-labor costs and those related to energy, passing through the supply chain and lowering services and goods prices, ultimately helping the Bank of England get inflation back towards the 2% mark.”

Bank of England holds interest rates steady, but signals a cut is coming (cnbc.com)

In other news.

Japan's consumer spending extends declines as outlook weakens

By Satoshi Sugiyama and Tetsushi Kajimoto 

TOKYO, May 10 (Reuters) - Japan's consumer spending fell for the 13th straight month in March, creating challenges for policymakers who are seeking to drive stronger real wage growth, a prerequisite for additional central bank rate hikes.

Household spending fell 1.2% in March from a year earlier, official data released on Friday showed, against economists' median forecast for a 2.4% drop and following a 0.5% decline in February.

On a seasonally adjusted, month-on-month basis, spending increased 1.2%, much bigger than an estimated 0.3% contraction and a 1.4% rise in February.

The weak figures came a day after labour ministry data showed real wages shrinking two years in a row, as the rising cost of living outpaced nominal wages despite the biggest pay hikes in about three decades.

Weak household consumption is a source of concern for policymakers who want to see sustained economic growth led by strong wage hikes and solid consumer spending.

Separate data on Friday showed Japan's current account surplus widened to 3.40 trillion yen ($21.9 billion) in March.

That compared with economists' median forecast for a surplus of 3.49 trillion yen in a Reuters poll.

For the fiscal year that ended March, Japan's current account surplus was a record 25.339 trillion yen, reflecting a trade surplus, cooling commodity prices and hefty gains in primary income from direct investment overseas.

Japan's consumer spending extends declines as outlook weakens | Reuters

Finally, yet more bad EV news.

 

Porsche Taycan: Urgent recall over battery fire fears for luxury brand's Car of the Year EV range

By JAMES DOWLING FOR NCA NEWSWIRE

Porsche's leading electric car has been hit with an urgent recall notice by the federal transport department over battery issues.

 

The department has issued the recall on Porsche Taycan models Y1A, Y1B and Y1C for the year range 2019-2023, citing a risk of fire from the faulty batteries.

There only 19 such registered vehicles in Australia, with a list of identifications available on vehiclerecalls.gov.au.

Cell modules in the high voltage battery leaves the vehicles prone to short circuiting that could trigger overheating and a vehicle fire.

Owners of the affected cars can arrange free repair of the issue through their nearest official Porsche dealer.

Prior to the servicing, owners are warned to limit battery charging to 80 per cent or less.

'A vehicle fire could increase the risk of injury or death to vehicle occupants, other road users and bystanders, and/or damage to property,' the recall memo said

The Taycan debuted in 2020 as the company's first electric car and made up 7.4 per cent of the retailer's sales that year.

It was commended with What Car? magazine's Performance Car of the Year award in 2021.

Porsche Taycan: Urgent recall over battery fire fears for luxury brand's Car of the Year EV range | Daily Mail Online

Delay petrol ban beyond 2035, says Sir Jim Ratcliffe

May 9, 2024

Sir Jim Ratcliffe has called for the ban on all petrol car sales to be delayed beyond 2035, as the British industrial tycoon warned that demand for electric vehicles (EVs) has “dried up”.

The billionaire behind petrochemicals giant Ineos is lobbying the UK Government to relax net zero laws so that low-emission vehicles can be sold even after the planned cut-off point, as an “interim” step towards cleaner technologies.

This could include electric cars fitted with petrol-powered range extenders as well as plug-in hybrids that rely on their batteries most of the time.

Sir Jim’s intervention comes amid a wave of criticism of the Government’s net zero stance from some of the world’s biggest carmakers, including Ford and the owner of Vauxhall.

It is understood that the tycoon’s car brand, Ineos Automotive, which is itself preparing to launch an EV with a range-extender, has held meetings with the Government about the issue.

Writing for The Telegraph, Sir Jim blames consumer “range anxiety” – the fear they will run out of battery and be unable to charge – for a slowdown in EV sales, arguing that plans to make carmakers go all-electric by 2035 are “barmy”.

The 71-year-old, whose empire includes Manchester United football club as well as the Grangemouth oil refinery, a major supplier of petrol, adds: “Electric is fine and dandy for the short local journey, but should you decide to head off for the hills, forget it. 

In recent weeks, major carmakers including Volkswagen, Ford and Vauxhall owner Stellantis have publicly vented their frustration at laws requiring them to sell ever-higher proportions of EVs regardless of consumer demand.

Carlos Tavares, chief executive of Stellantis, claimed measures such as the UK’s zero emission vehicle (ZEV) mandate were “crashing into reality” as sales of EVs stall across Europe.

More

Delay petrol ban beyond 2035, says Sir Jim Ratcliffe (msn.com)

Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.

Milton Friedman.

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.

'When will Remainers apologise?' Brexiteer hails booming UK trade after EU exit

May 8, 2024

A Brexiteer has urged Remainers to apologise for doom-laden warnings of a "trade disaster" if the UK left the EU.

Tory MP Sir John Redwood highlighted official figures showing Britain exported £862billion of goods and services in the 12 months to February 2024.

The former minister also listed a series of other trade wins including joining the bumper Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade bloc.

In a post on his website, Sir John said: "Remain tried to make out Brexit was mainly about trade. It was of course mainly about taking back control, giving us the right to make our own laws, set our own taxes and spend our own money.

"They also asserted it would damage our trade to leave. They said we would not even be able to roll over all the EU trade deals we were part of.

"Treasury, bank, much of the civil service and Remain parties pushed out these lies continuously.

"The Treasury famously summed up its conclusions by saying wrongly that leaving would 'push the UK into recession and lead to a sharp rise in unemployment'.

"Their severe shock scenario meant an extra 800, 000 unemployed and a 6 percent fall in GDP."

On what happened after Brexit, he went on: "After the vote unemployment fell and the economy grew. Trade went up.

"The UK did roll over all the EU trade deals into UK trade deals and in some cases negotiated improvements to them.

"The UK went on to agree a trade deal with the Trans Pacific Partnership countries.

"The UK also at some needless political cost signed a trade agreement with the EU.

"The Government has recently released figures for what has happened to our trade since the vote and since we left. Our service exports have doubled since 2014 to non-EU countries (2016 was a little up on 2014) and risen by more than a half since 2016 to the EU.

"The UK is now the second largest exporter of services worldwide after the USA. We are now adding service sector chapters to trade deals which the EU was unwilling to do.

"Total exports are up from under £600million in 2016 to £862billion in the year to February 2024. They are up by a third to the EU and by considerably more to the rest of the world."

In a post on X, Sir John added: "When will Remain experts, officials and MPs apologise for all those wrong forecasts of trade disaster if we voted no?"

'When will Remainers apologise?' Brexiteer hails booming UK trade after EU exit (msn.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

New 'FLiRT' COVID-19 Variants Are Spreading: All About Symptoms, Treatment, And How To Protect Yourself

May 8, 2024

With warm weather finally within reach, a new set of COVID-19 variants, given the nickname FLiRT, has been found in wastewater surveillance, the Centers for Disease Control and Prevention (CDC) has reported.

On Wednesday, the CDC said the FLiRT variants were appearing in wastewater sampling. They found that from April 14 through April 27, FLiRT has made up about 25% of the cases in the United States, and are behind 1 in 4 Covid cases in the US, per the CDC.

With it's rapid infection rate in a two-week span, it's now the dominant variant in the United State, out numbering JN.1, the variant that spread all over the world throughout the winter, according to CDC research.

So what are these new FLiRT variants and what do their symptoms look like? Ahead, everything to know about the new COVID-19 variant called FLiRT and how to protect yourself from infection.

The FLiRT variants, KP.2 and KP.1.1, are part of the Omicron family. Specifically, they are descendants of JN.1.11.1, a by-product of JN.1—the most common variant until these new ones popped up, per Prevention.

Since they are new, there isn't too much information about how these variants work yet. However, research has found a few changes in KP.2's spike protein compared to JN.1, according to Prevention. 

---- The CDC says symptoms of COVID-19 FLiRT include:

  • Fever or chills
  • Cough
  • Sore throat
  • Shortness of breath or difficulty breathing
  • Fatigue
  • Muscle or body aches
  • Headache
  • New loss of taste or smell
  • Congestion or runny nose
  • Nausea or vomiting
  • Diarrhea

It's important to note that as new COVID-19 variants spread, the symptoms can vary by person.

More

New 'FLiRT' COVID-19 Variants Are Spreading: All About Symptoms, Treatment, And How To Protect Yourself (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.

Finnlines rolls out fuel and emissions reducing hull coating

The ferry operator will apply the GIT Coatings XGIT-FUEL to vessels in its ro-ro and ro-pax fleets after a seven per cent reduction in fuel consumption and emissions 

 08 MAY 2024

Finnlines is to roll out a graphene-based hard foul release hull coating across its ro-ro and ro-pax fleets following a seven per cent reduction in fuel consumption and emissions on four of its vessels treated with the GIT Coatings XGIT-Fuel hull coating. 

The first Finnlines vessel was treated with XGIT-Fuel in 2022. Since then, three more vessels have been treated with the low-friction hull coating, reducing fuel consumption and emissions by around seven per cent (compared to previously used coating) thanks to reduced vessel drag. 

A biocide-free, hard foul release coating, XGIT-Fuel offers an alternative to conventional anti-fouling and soft-foul release hull coatings. It incorporates graphene to reduce vessel drag, enhance resistance to mechanical damage, and it can be cleaned without affecting the surface of the coating. Its application requires only one layer and, as it can be applied in temperatures from -5 to 40°C, vessels can be upgraded during scheduled for winter drydocking. 

“Our commitment to sustainability is at the forefront of every decision we make,” said Thomas Doepel, vice president and deputy CEO at Finnlines. “By integrating XGIT-Fuel into our fleet, we are not only reducing costs and advancing our environmental goals but also setting a new standard in the industry for environmental responsibility.” 

Finnlines rolls out fuel and emissions reducing hull coating (cruiseandferry.net)

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

World Debt Clocks (usdebtclock.org)

Another weekend and a summer of central bankster interest rate cuts lies directly ahead. And in the stock casinos, they all lived happily ever after (well maybe.) Have a great weekend everyone.

Truth has anciently been called the first casualty of war. Money may, in fact, have priority.

John Kenneth Galbraith.


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