Tuesday, 4 June 2024

Stocks, NYSE “Glitch” Fixed. Buy Now (Shoplift Now?) For Christmas?

Baltic Dry Index. 1808 -07     Brent Crude  77.76

Spot Gold 2349            US 2 Year Yield 4.82 -0.07

In the run up to the UK General Election on July 4, the LIR will play its part.

The secret of politics? Make a good treaty with Russia.

Otto von Bismarck.

In the global stock casinos, a nervous start to June. Not helped by yet another NYSE computer “glitch”. But probably helped by lower US Treasury yields, which also boosted gold.

In better news, crude oil crashed as the OPEC+ plan underwhelmed as punters focused on the extra oil production coming in later this year and not next year’s extended production cuts.


European markets set for mixed open as positive momentum falters

European markets are set to open in mixed territory Tuesday as positive momentum over the past few days falters.

The U.K.’s FTSE 100 index is expected to open unchanged at 8,264, Germany’s DAX down 30 points at 18,577, France’s CAC 10 points lower at 7,989 and Italy’s FTSE MIB up 2 points at 34,725, according to data from IG.

Regional markets started the month higher Monday, extending last week’s rally, with investors looking ahead to the European Central Bank’s latest interest rate decision later this week.

The ECB is widely expected to cut interest rates for the first time since 2019 when policymakers meet on Thursday, but investors will watch closely to see whether a slightly higher-than-expected euro zone inflation print released Friday will affect the bank’s forthcoming decision.

On the data front, Germany releases its latest unemployment figures for May on Tuesday.

Overnight in the Asia-Pacific region Tuesday, India stocks slumped to lead regional markets lower as the country started counting votes for its 2024 general election.

The world’s most populous country started counting votes at 8 a.m. local time, with Prime Minister Narendra Modi projected to win a rare third consecutive term as per the exit polls.

U.S. stock futures were little changed on Monday evening as Wall Street looked to find its footing after an uneven start to the month.

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

 

India’s Nifty plummets 3.5% to lead Asia markets lower as election vote counting kicks off

UPDATED TUE, JUN 4 2024 12:04 AM EDT

India stocks slumped to lead Asia markets lower Tuesday, as the country started counting votes for its 2024 general election.

The world’s most populous country started counting votes at 8 a.m. local time, with Prime Minister Narendra Modi projected to win a rare third consecutive term as per the exit polls.

The Nifty 50 index was down 3.5% while BSE Sensex fell 1.5%, after the main stocks gauges in India hit record highs on Monday.

Over the weekend, local exit polls projected Modi and his Bharatiya Janata Party-led alliance winning a decisive majority in the lower house of the parliament.  

Japan’s Nikkei 225 fell 0.22%, while the broader Topix dipped 0.24%.

South Korea’s Kospi shed 0.47% and the smaller-cap Kosdaq reversed earlier declines to rise 0.8%.

Hong Kong’s Hang Seng index edged 0.31% higher, while the CSI 300 index added 0.4%.

In Australia, the S&P/ASX 200 index was down 0.19%.

Overnight, U.S. stock index futures were listless as Wall Street looked to find its footing after an uneven start to the month.

Futures for the Dow Jones Industrial Average were roughly flat. S&P 500 futures and Nasdaq 100 futures ticked up less than 0.1% each.

The Dow fell more than 115 points, or 0.3%, on the first trading day of June. The S&P 500 and Nasdaq Composite both rose modestly on Monday.

Asia markets live updates: India elections, South Korea CPI (cnbc.com)

Next, that NYSE computer “glitch.”  Why abandoning cash for Central Bank Digital Currencies is a terrible idea. Even worse than dropping internal combustion engines for battery electric vehicles.


NYSE says technical issue that caused Berkshire Hathaway to be displayed down 99% is fixed

A technical issue on Monday caused the A-class shares of Warren Buffett’s Berkshire Hathaway to appear to be down nearly 100% on the New York Stock Exchange for most of the morning trading period.

Trading was halted in those shares, as well as in Barrick Gold and Nuscale Power, which had also seen dramatic falls. All three stocks have since resumed trading.

The NYSE said that the problems stemmed from the price-bands published by the Consolidated Tape Association, the organization used by major exchanges to jointly provide real-time stock quotes. The NYSE said at roughly 11:45 a.m. ET that the issues had been resolved and trading was back to normal.

The CTA said that there was an issue with limit up and limit down price bands, a mechanism meant to combat market volatility, between 9:30 a.m. and 10:27 a.m. ET. The issue may have been caused by a new software release, and the organization will revert back to the prior software program in its primary data center for Tuesday’s trading session, the CTA said.

There were 40 stocks affected by the issue, according to the CTA. Other notable stocks involved include Chipotle Mexican Grill and Bank of Montreal.

The NYSE Group Equities Exchange announced after market close that it would cancel erroneous trades in several securities including Berkshire Hathaway’s A-shares.

There were less than 4,000 recorded trades on the day for Berkshire’s A-class shares when trading was halted. Trading continued in the B-class shares, which were down less than 1% Monday morning. Both share classes ended the day up less than 1%.

----The issues on Monday are another reminder that the exchanges and data providers that are central to Wall Street are not completely error free. Other recent examples include an hourlong freeze for CME index data feeds last week and a Nasdaq system error in December that led to some orders being canceled.

The NYSE also had a day in January 2023 when the opening auctions for some stocks did not occur properly.

More

NYSE says issue that showed Berkshire Hathaway down 99% is fixed (cnbc.com)

Finally, buy now for Christmas? This being 2024, that's probably shoplift now for Christmas.

 

Shops rush for Christmas stock as shipping costs surge

2 June 2024

European retailers are rushing to place their Christmas orders early as soaring shipping costs and trade route disruption threaten holiday deliveries, experts say.

For the last few months, vessels belonging to Western firms have been attacked in the Red Sea by Houthi rebels backing Hamas in its war with Israel, driving shipping prices up.

Container prices, which peaked in January and briefly declined, have rebounded sharply in recent weeks.

One business told the BBC that increased costs were likely to feed through to the price of big-ticket items such as white goods.

Nick Glynn, boss of the Buy It Direct group, owns several online retailers including Appliances Direct and Laptops Direct, which are having to plan and book well in advance to make sure their shipments arrive on time.

Because they are planning ahead, he said he didn't think Black Friday and Christmas stock would be affected.

But he said: "It impacts cash and warehouse space as suddenly you have to store the goods for longer. You can't risk ordering later."

Mr Glynn explained that the spot rate - the current price for immediate delivery of goods - has dramatically increased in recent weeks from $4,500 to $7,500 (£3,500 to £5,900).

"This makes a massive impact on big bulky items, especially those that have low margins such as furniture, barbecues, and kitchen appliances," he said.

There was "no way" most online retailers could absorb those price increases on big-ticket items, he said.

"So unfortunately for consumers, the next few months will see significant rises on these big-ticket items," he added.

Shipping costs have soared as a result. The average cost of shipping a 40ft container now exceeds $4,000, a 140% increase from 2023, according to freight market tracker Xeneta.

Peter Sand, Xeneta's chief analyst, said that importers have learned many lessons from the pandemic including that "the most straightforward way to protect supply chains is to ship as many of your goods as you can as quickly as possible".

"That is what we are seeing with some businesses telling us they are already shipping cargo for the Christmas period - in May," he said.

More

Shops rush for Christmas stock as shipping costs surge - BBC News

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.

On my return from Tesco supermarket yesterday, I ran into this. Approx 15 minutes. Not my preferred form of coverage, but it’s the message that counts.

At Tesco’s yesterday, as the self-checkouts section manager was freeing up my vital liquid supplies, I remarked how we’re all supposed to have gone from “a nation of shopkeepers”, (Napoleon?)  to a nation of shoplifters (BBC.) He smiled and simply said, “you wouldn’t believe what happens here each night.”

Walgreens is Leaving NYC... Because of Theft

Walgreens is Leaving NYC... Because of Theft (youtube.com)

A "Restaurant Apocalypse" Is Starting To Sweep Across America, And That Is Really Bad News For The U.S. Economy

SUNDAY, JUN 02, 2024 - 10:30 PM

You can get a really good idea how the U.S. economy is doing by watching restaurants in your area.  When the economy is booming, restaurant parking lots are full and chains are feverishly establishing new locations.  But when the economy is struggling, restaurants get a lot less traffic and poor performing locations get shut down.  Sadly, in 2024 it appears that a “restaurant apocalypse” has started to sweep across America.  Most people have very little discretionary income to spend as a result of our cost of living crisis, and that is particularly true for our young adults.  Americans under the age of 40 love to eat out, but these days most of them are experiencing financial stress, and this is having an enormous impact on the restaurant industry.

In 2023, visits to sit-down restaurants dropped by about five percent compared to 2022…

Americans are eating out less as inflation weakens the dollars in their pocket, which is leading to some harsh consequences for restaurants across the country.

Visits to sit-down restaurants were down nearly five percent in 2023 from the year prior, according to location analytics firm Placer.ai.

So this is a trend that has stretched on for over a year.

People just aren’t eating out as much as they once did.

As a result, we are seeing a wave of closures all over the country.  Even in the Big Apple, large numbers of restaurants are being shut down

More

A "Restaurant Apocalypse" Is Starting To Sweep Across America, And That Is Really Bad News For The U.S. Economy | ZeroHedge

Covid-19 Corner

This section will continue until it becomes unneeded.

New COVID-19 sub-variant unlikely to cause infection peak in China: experts

03 JUNE 2024, MONDAY, 05:28  174

The KP.2 sub-variant of COVID-19, which has become increasingly prevalent on a global scale, is unlikely to cause a new infection peak in China in the near future, the National Disease Control and Prevention Administration said.

This was reported by The Xinhua News Agency.

KP.2-sequenced cases accounted for 0.05 percent to 0.30 percent of all locally sequenced cases reported each week in China, which is at an "extremely low" level, according to experts from the administration.

KP.2, a descendant of the currently prevalent JN.1 variant, has rapidly increased in proportion among globally prevalent COVID-19 strains reported since February this year.

However, experts have noted that KP.2 shows no notable changes in terms of its pathogenicity and immune escape capabilities.

They have advised the public to maintain good personal hygiene, wear face masks when necessary, and follow healthy diets.

New COVID-19 sub-variant unlikely to cause infection peak in China: experts | Ukrainian news (ukranews.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.

Facing a UK Government directive to stop using diesel and diesel electric train engines by 2040 at the latest, the UK train operators huff and puff slowly into action.

With only about 2900 engines to replace, at the same time most European countries are replacing diesel engines too, what could possibly go wrong?

Diesel trains head the way of steam as railways buy into battery power

Railway operators plan to order hundreds in the next few years, saving up to £11 billion on electrification

Saturday June 01 2024, 6.00pm

Railway operators are planning to put battery-operated trains on British tracks in order to end the use of diesel.

The trains will be able to travel 50 miles — and potentially much further — without stopping to recharge.

Operators are to start ordering the new trains in the new year, with the first expected to go into service on regional and local routes shortly after 2030.

GWR, the operator for the West Country, announced this weekend that it would lead the way with plans to order 100 battery trains to serve local services in Bristol, Devon and Cornwall, as well as routes including Cardiff to Portsmouth and Exeter to Penzance.

Simon Green, its engineering director, said he and the Department for Transport planned to issue tenders for battery trains by the end of the year.

 

“I would expect every major manufacturer to be interested in bidding to supply a fleet of battery electric trains,” Green said. “I cannot currently conceive of any circumstances under which we would seek to procure pure diesel trains.”

The head of another major operator said: “I told my teams they cannot order any more diesel trains.”

Diesel replaced steam locomotives on our railways from the 1950s, with electrification beginning in earnest in the 1960s. The last steam-hauled trains ran on the network in 1968.

Electrification continued apace until the early 1990s then tailed off, before the programme was reinvigorated in 2016.

While the busiest inter-city routes have already been electrified, with power lines along 3,769 miles of track — almost 40 per cent of the network — until now there has been considerable uncertainty about the timetable for completing the rest of the network.

It costs £6.5 million to electrify a mile of double-track railway with overhead power lines, because it often entails expensive work on bridges, tunnels and other structures, according to the Railway Industry Association. It estimates a potential saving of £11 billion if one-third of the rail network does not need to be electrified and battery trains are used instead.

The ability to switch back and forth between overhead cables and batteries dramatically reduces costs.

One senior rail industry source said: “There are sections of open countryside where it’s easy to rig up overhead cables, but it becomes a major civil engineering project in tunnels and bridges.”

Using battery trains also avoids the need to build unsightly power lines above national parks and areas of outstanding natural beauty.

One supplier of the battery trains, the German engineering giant and train manufacturer Siemens, shared its plans with Rishi Sunak, the prime minister, when the cabinet met in February at its factory in Goole Rail Village in the East Riding of Yorkshire.

Siemens is in talks with GWR and six other operators — Chiltern, East West, Northern, ScotRail, Transport for Wales and TransPennine Express — who between them need to replace 1,650 ageing diesel trains.

The tech company is confident they will switch to electric propulsion, and points out that because the lifespan of rolling stock is about 35 years, failing to do so will condemn the railways to using diesel into the 2060s. It claims a switch to electricity will save them a total of 12 million tons of CO₂ and £3.5 billion.

Siemens wants to supply a modified version of a battery-electric train called the Desiro Verve, which went into service in the Black Forest, Germany, in April.

When travelling along routes that are already electrified, the train takes power from the overhead lines but switches to battery when there are no wires. It can draw power from the domestic grid using dedicated converters, rather than rely on high-voltage lines, and can be fully charged in 20 minutes.

More

Diesel trains head the way of steam as railways buy into battery power (thetimes.co.uk)

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

World Debt Clocks (usdebtclock.org)

It's clearly a budget. It's got a lot of numbers in it.

President George W. Bush.

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