Baltic
Dry Index. 1942 +106 Brent Crude 82.37
Spot Gold 2306 US 2 Year Yield 4.68 -0.07
In
the run up to the UK General Election on July 4, the LIR will play its part.
The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.
Winston Churchill.
In the stock casinos, more hopium that the great disconnect from economic reality will continue.
But the Dow indexes are now increasingly lagging as fewer and fewer stocks now drive the S&P and NASDAQ in the US casinos.
In the USA, better inflation news from the Producer Price Index.
At the G-7 meeting in Italy, a smoke and mirrors cover up attempt as the western block attempt to steal frozen Russian assets held in the west. That’s well covered in main stream media.
On Ukraine, President Biden Joe Biden,
fearing a loss to Donald Trump in November, attempts to tie the next
President(s) to Ukraine for the next 10 years. Again well covered in MSM today.
Ignored at the G-7 and by western media, the two day meetings of the ever expanding BRICS grouping now comprising 21 nations with some 59 nations seriously taking an interest.
With the dollar now weaponised against much
of the world and Uncle Scam running up new fiat debt by about one trillion
dollars every hundred days, planet Earth is now rapidly splitting into a G-7
versus everyone else.
Japan markets
reverse losses after BOJ decision; other markets mixed
Asia-Pacific markets
were mixed after the Bank of Japan kept its benchmark interest rate unchanged
on Friday, but indicated it’s considering the reduction of its purchase of
Japanese government bonds.
The central bank left
short-term rates unchanged at between 0% to 0.1% as widely expected, but said
it could reduce its purchases of Japanese government bonds after the next
monetary policy meeting, scheduled for July 30 and 31.
The BOJ currently
aims to purchase about 6 trillion yen ($38.5 billion) in bonds per month, and
has informed the market of plans to purchase between 4.8 trillion yen
and 7 trillion yen of bonds per month.
Japan’s Nikkei 225 reversed
losses to gain 0.73% after the BOJ decision, while the Topix was 0.78% higher.
South Korea’s Kospi was
0.32% higher, and the small cap Kosdaq was 1.14% lower.
Australia’s S&P/ASX 200 fell
0.29%.
Hong Kong Hang Seng index was
down 0.67%, while the CSI 300 on mainland China slipped 0.4%.
Overnight in the U.S., the S&P 500 rose to
post a fourth consecutive record close as traders weighed more data showing
inflation pressures may be easing.
The broad market index climbed
0.23% to end at 5,433.74, while the Nasdaq Composite advanced
0.34% and closed at 17,667.56. Thursday marked the fourth straight closing
record for both S&P 500 and the Nasdaq.
The Dow Jones Industrial Average was
the underperformer, slipping 0.17%.
The S&P 500 and Nasdaq hit
record levels this week, boosted by fresh data showing signs of inflation
pressures cooling.
Asia stock markets:
BOJ rate decision, JGB purchases (cnbc.com)
Stock futures are
little changed after S&P 500 posts fourth consecutive closing record: Live
updates
UPDATED FRI, JUN 14 2024 7:09 PM EDT
Stock
futures were little changed Thursday, following a fresh record close for the
S&P 500 and strong quarterly results from Adobe.
Futures tied to the broad market index slipped
0.05%, while Nasdaq 100 futures ticked
up by 0.03%. Dow Jones
Industrial Average futures inched
down by 0.07%, or 29 points.
In extended trading, software
giant Adobe leapt 15% after fiscal second-quarter results surpassed Wall Street
estimates. Adobe also raised its
full-year guidance, making the company a standout compared to peers in the
software space that are citing headwinds tied to macroeconomic trends.
Stocks are coming off a winning
session that saw the S&P 500 notch its fourth-straight record
close. The technology-heavy Nasdaq Composite also
ended the session at a record.
Wholesale inflation unexpectedly ticked
down by 0.2% last month, while economists polled by Dow Jones
expected the gauge to increase by 0.1%. That follows a consumer
price index reading that was flat on a monthly basis in May.
“I think the soft landing is
still intact, but I think there’s starting to be and could be jitters about
[if] the Fed is staying restrictive for too long,” BD8 Capital Partners CEO
Barbara Doran told CNBC’s “Closing
Bell: Overtime” on Thursday.
“The market on the surface is
expensive at 21 times earnings, but as we know, that’s a handful of stocks
[and] if you take that out of the S&P 500, it’s a lot cheaper,” she added.
“The question now is breadth.” Market breadth measures the number of stocks
that are rising versus those that are falling.
Hopes for a continued cooling of
inflation have boosted equities this week. The S&P 500 and Nasdaq Composite
are on pace to end the week higher. The S&P 500 has climbed 1.6%, while the
Nasdaq has added 3.1%. The 30-stock Dow is the lone laggard with a 0.4%
decline.
Elsewhere, shares of electric
vehicle maker Tesla traded
marginally higher after the company’s shareholders approved a
contentious $56 billion pay package for CEO Elon Musk.
Stock market today: Live updates (cnbc.com)
In other news.
Oil prices set for
best week in over 2 months on solid demand outlook
By Ashitha
Shivaprasad June 14, 2024 5:11 AM
GMT+1
SINGAPORE, June 14 (Reuters) - Oil prices eased on
Friday as markets evaluated the impact of U.S. interest rates staying higher
for longer than anticipated, but crude benchmarks headed for their best week in
more than two months after solid projections for crude and fuel demand.
Brent crude futures were down 34 cents, or 0.4%, at
$82.41 a barrel by 0344 GMT. West Texas Intermediate (WTI) U.S. crude futures
lost 41 cents, or 0.5%, to trade at $78.21 a barrel.
However, Brent and the U.S.
benchmark gained over 3% for the week - the best week since April 5.
The Organization of Petroleum Exporting Countries (OPEC) stuck to a forecast for
relatively strong growth in global oil demand for 2024 and Goldman Sachs
projected solid U.S. fuel demand this summer.
This helped reverse losses in the previous week which were
driven by an agreement by OPEC and its allies, together called OPEC+, to start
unwinding output cuts after September.
"Overall, this week can
be characterised as a recovery effort for oil," said Tim Waterer, chief
market analyst at KCM Trade based in Australia.
"I wouldn't be surprised to see oil prices head higher from
here whilst the demand outlook continues to look rosier. Much may depend on how
the northern hemisphere summer demand picture plays out."
Providing further support to the market, Russia pledged to meet
its output obligations under the OPEC+ pact, after saying it exceeded its quota in May.
However, the price rally
this week cooled after the U.S. Federal Reserve held interest rates steady and
pushed out the start of rate cuts to as late as December.
Meanwhile, the International Energy Agency said
in a report on Wednesday it sees oil demand peaking by 2029, levelling off at
around 106 million barrels per day (bpd) towards the end of the decade.
On the downside, concerns over economic outlook grew after the
Fed's view on rate cut, but that said, to the extent that this buoys the U.S.
dollar, it could offer a measure of support to Brent, BMI analysts wrote in a
note.
More
Oil
prices set for best week in over 2 months on solid demand outlook | Reuters
BRICS
meeting calls for improving global governance
June 12, 2024
NIZHNY: A two-day meeting of foreign ministers belonging to the BRICS of emerging economies has concluded in the Russian city of Nizhny Novgorod, with all parties calling for adherence to multilateralism, improving global governance and increasing the voice and representation of developing countries.
The meeting from Monday to Tuesday marks the first gathering since the group expanded from five members (Brazil, Russia, India, China and South Africa) to nine in January with the addition of Egypt, Ethiopia, Iran, and the United Arab Emirates as official members.
On Monday, BRICS countries engaged in
in-depth discussions on cooperation as well as international and regional hot
topics. A joint statement of BRICS foreign ministers was issued following the
meeting.
All parties spoke highly of the
important role of the BRICS mechanism and the achievements of its membership
expansion. They agreed that the accession of more countries to BRICS has
accelerated the process of world multi-polarization and promoted a more just
and equitable international order. They also voiced support for the
establishment of partner countries.
All parties called for adhering to
multilateralism, opposing unilateralism and protectionism, promoting reform of
the international financial architecture, enhancing and improving global
governance, and increasing the voice and representation of developing
countries.
All parties emphasized resolving
disputes peacefully through dialogue and consultations, and supporting all
efforts conducive to the peaceful resolution of crises.
On the second day, a dialogue was
held between the BRICS countries and 12 other major developing countries,
namely Thailand, Laos, Vietnam, Bangladesh, Sri Lanka, Kazakhstan, Belarus,
Türkiye, Mauritania, Cuba, Venezuela and Bahrain.
The participants praised the
strategic significance of the dialogue, noting that the BRICS+ model
facilitates unity and cooperation among developing countries, enhancing the
Global South’s influence and building a more just and reasonable international
order.
They called for reforms to the
international financial system, enhanced cooperation in the digital economy,
infrastructure and other areas, safeguarding the stability of the global
industrial supply chain, narrowing the development gap, and achieving shared
progress.
Chinese Foreign Minister Wang Yi,
also a member of the Political Bureau of the Communist Party of China Central
Committee, stressed universal security, common development and global
governance at the meetings.
He said BRICS should take the lead in
safeguarding the international system with the United Nations at its core, and
push for an equal and orderly multipolar world and inclusive economic
globalization.
More
BRICS meeting calls for improving global governance | Pakistan Today
Finally, more on the Great EV Turnoff.
Eye-watering
car insurance quote leaves Tesla drivers fuming
June 13, 2024
It might be getting cheaper to purchase an electric vehicle
(EV) but an insurance quote for his Tesla has been branded an 'absolute joke' by one
driver.
The motorist recently shared a photo
on social media which revealed it costs a hefty $4,000 more to insure his EV
than his internal combustion engine cars.
Screenshots showed that comprehensive
insurance for a Tesla would be between $5,073 and $5,175 based on two quotes
from different insurers - but he could insure his petrol-powered Kia for just
$900.
'Take a look at the price difference
between Tesla under a lease and my Kia which is owned outright,' he said.
---- Insurance is the
second-biggest ongoing expense for Australian EV owners.
According to the Insurance Council of
Australia (ICA), the peak insurance body, there are a few reasons why EV owners
pay higher premiums.
A spokesperson said EVs have more complex
systems and components, and explained that repairing damaged EVs required
importing parts to Australia.
'The cost of these parts and the limited
number of qualified service centres and technicians contributes to the higher
cost of insurance premiums for EVs than internal combustion (IC) vehicles,' the
spokesperson told Yahoo.
Expensive battery replacement costs,
which can be up to 40 per cent of the car's total value, were another key
factor.
They also require speciality removal
equipment, along with disposal and recycling methods and, without a local
network, most batteries need to be returned overseas.
more
Eye-watering car insurance quote leaves Tesla drivers
fuming (msn.com)
FIRE STRIKES BYD SHOWROOM FOR
THE 10TH TIME IN CHINA
BYD’s latest showroom fire
has left seven vehicles destroyed and raised questions about the safety of its
EVs. What’s behind these frequent fires?
BYD has found itself in the
spotlight again after another fire broke out at one of its showrooms in China.
On May 16, a massive blaze erupted at a BYD showroom in Qingkou, Fujian
Province, completely destroying seven vehicles and damaging several more. Thankfully,
no one was injured, but the fire required seven fire trucks and a team of firefighters to extinguish. This
incident marks the 10th time a BYD showroom has caught fire since 2021, raising
concerns among consumers and industry watchers.
Videos of the fire quickly spread online, showing large
clouds of smoke billowing into the sky and creating an eerie orange glow over
the area. Eyewitnesses reported hearing loud bangs and pops as the fire raged,
making it difficult for firefighters to approach the scene initially. The fire
started at 12:32 a.m. and was mostly under control by 1:18 a.m., according to
local reports.
BYD quickly issued a
statement acknowledging the incident, suggesting that old wiring in the store’s
roof or a short circuit might have caused the fire. It emphasized that a
thorough investigation would be conducted in cooperation with relevant authorities.
Despite early speculation that an electric vehicle in the showroom might have
been the source of the fire, BYD checked the data and found no issues with the
vehicle batteries.
This latest fire adds to a troubling pattern for BYD.
Although electric vehicles (EVs) statistically catch fire far less often than
gasoline-powered cars, BYD seems to be making headlines more frequently for
these incidents. Some argue that this might simply be because BYD sells a large
number of vehicles, increasing the likelihood of such reports. Still, it’s
worth noting this is the 10th fire at a BYD showroom in less than three years.
EV fires, while rare, can be particularly challenging to
manage due to the nature of lithium-ion batteries. These batteries can produce
large amounts of oxygen when they overheat, making fires difficult to
extinguish. Videos have even shown EVs burning underwater, although cooling the
battery pack can help end the fire more quickly. Thermal runaways, where a
problem with the battery cells causes them to overheat, are a known risk,
although such incidents are still relatively uncommon.
BYD is not alone in facing
these challenges. Other major EV manufacturers, including Tesla, have also dealt with battery fire issues. For instance,
the Chevrolet Bolt EV had
several high-profile fires, leading to one of the largest recalls in EV
history.
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.
US wholesale prices dropped in May, adding to evidence
that inflation pressures are cooling
Updated
WASHINGTON (AP) — Wholesale price
increases fell in May, the latest sign that inflation pressures in the United
States may be easing as the Federal Reserve considers a timetable for cutting
interest rates.
The Labor Department reported
Thursday that its producer price index — which tracks inflation before it
reaches consumers — declined 0.2% from April to May after rising 0.5% the month
before, pulled down by a 7.1% plunge in gasoline prices. Overall, it was the
biggest drop in producer prices since October.
Measured from a year earlier,
wholesale prices were up 2.2% last month, edging down from a 2.3% increase in
April. Excluding volatile food and energy costs, so-called core producer prices
were unchanged from April and up 2.3% from May 2023.
Wholesale food prices dropped
0.1% from April to May. Egg prices dropped 35%. Computer and computer equipment
fell 1.2%, and household appliance prices slid 0.5%.
The producer price index can
provide an early read on where consumer inflation is headed. Economists also
watch it because some of its components, including some healthcare and
financial services costs, are used to compile the Fed’s preferred inflation gauge,
known as the personal consumption expenditures price (PCE) index.
The wholesale figures were
released a day after the Labor Department reported that consumer
inflation eased in May for a second straight month. Core
consumer prices rose 0.2% from April to May, the smallest increase since
October. And compared with May 2023, core prices rose 3.4%, the mildest such
increase in three years.
Consumer inflation peaked at 9.1%
two years ago but came down as the Fed raised its benchmark interest rate 11
times in 2022 and 2023, taking it to a 23-year high. Still, it continues to run
above the Fed’s 2% target.
More
Covid-19 Corner
This section will continue until it becomes unneeded.
Past COVID-19 infection may protect people against some common colds
June 13, 2024
A previous COVID-19 infection may
lower your risk of getting a cold caused by a milder coronavirus cousin,
according to new research.
Endemic coronaviruses are thought to
be responsible for 15 to 30 per cent of common colds in adults.
Researchers found that people
previously infected with COVID-19 had a 50 per cent lower chance of having a
common cold caused by a coronavirus compared with people who were fully
vaccinated and did not get COVID-19.
“We think there’s going to be a
future outbreak of a coronavirus,” said Dr Manish Sagar, senior author of the
study published on Wednesday in the journal Science Translational Medicine.
“Vaccines potentially could be
improved if we could replicate some of the immune responses that are provided
by natural infection," he added.
Researchers said the study may help
in the development of future vaccines against COVID-19 that also protect
against related coronaviruses.
“Our studies would suggest that these
may be novel strategies for better vaccines that not only tackle the current
coronaviruses, but any potential future one that may emerge,” said Sagar of
Boston Medical Center.
More
Past COVID-19 infection may protect people against
some common colds (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.
AI discovers new rare-earth-free magnet at 200 times
the speed of man
C.C. Weiss June 12, 2024
As some entities identify new (or at
least overlooked) sources to meet the growing demand for rare earth
materials, others are looking toward new tools. UK deep-tech company Materials
Nexus announced on Tuesday that it has designed a new rare-earth-free permanent
magnet with the help of its AI platform. It says the AI-driven discovery and
development process was 200 times faster than the resource-intensive manual
route, bringing new hope to an electrifying world with a growing appetite for
powerful magnets.
With the world moving away from internal
combustion engines and gradually embracing electric mobility, the demand for
compact, high-power motors is rapidly rising. By far the most popular option in
the automotive industry right now is the permanent magnet motor, which powers
upward of 80% of modern electric vehicles.
Materials Nexus estimates
that demand for permanent magnets will grow tenfold by 2030, in the EV industry
alone. And it's not just electric cars and trucks, either. Permanent magnet
motors are in demand for many applications, including robotics, drones, wind
turbines and HVAC equipment.
The problem is, the rare
earth materials used to create the most powerful magnets and most efficient,
power-dense motors – materials like neodymium and dysprosium – require damaging
mining and expensive, energy-intensive processing. With its world-largest EV
market, China has emerged as a leader in both mining and processing of rare
earths, pulling as much as 70% of the world's
rare earths out of the ground while processing closer to 90%. That gives the
country monopoly-like control over the essential materials, leaving other
markets exposed to supply disruptions and pricing fluctuations.
The search for alternatives
is on, and some automakers and suppliers are starting to develop and
incorporate magnet-free
motors. Others, including Tesla, are
pursuing permanent magnet designs free from rare-earth materials.
Rare-earth-free magnets
certainly sound like an intriguing solution, but they can be difficult to
formulate and less powerful than traditional rare-earth magnets. Niron
Magnetics has developed what it calls the world's first high-performance rare-earth-free
magnets, using a mix of abundantly
available iron and nitrogen, but it's been researching and developing it for
over a decade and still isn't quite ready for mass production.
Materials Nexus is letting
the world know it's here to help. It believes it has just what contemporary and
future magnet startups need to identify and develop rare-earth-free magnetic
materials, and by substituting AI for old-fashioned trial-and-error, it
believes they can do so at a pace hundreds of times faster than has been
traditionally possible. It says its AI platform can identify rare-earth-free
magnetic materials in a matter of days or weeks, in contrast to the years and
decades it's taken in the past.
Rather than simply
spout impressive numbers, Materials Nexus has already used its AI platform to
identify a rare-earth-free permanent magnet it's named MagNex. The AI analyzed
more than 100 million rare-earth-free material compositions before it landed on
MagNex, factoring in variables such as cost, supply chain security, performance
and environmental impact.
After the AI did
the heavy lifting, Materials Nexus synthesized and tested MagNex with help from
the Henry Royce Institute at the University of Sheffield. In three months, the
company had done work that would have taken years prior to its AI system.
More
AI discovers new rare-earth-free magnet at 200 times
the speed of man (newatlas.com)
Next, our
latest new section, the world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
Another weekend and another weekend
closer to the French, UK and US problematic elections. Be very careful this
weekend if in France or GB, there are hundreds if not thousands of dodgy
politicians and wannabe politicians on the loose. Have a great politician free
weekend everyone.
Different men seek after happiness in different ways and by different means, and so make for themselves different modes of life and forms of government.
Aristotle.
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