Wednesday, 26 June 2024

Tech Stocks Rebound But Become Unstable. Green Triggers Inflation.

Baltic Dry Index. 1926 -47       Brent Crude  86539

Spot Gold 2317             US 2 Year Yield 4.65 -0.06

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

Take care to get what you like or you will be forced to like what you get.

George Bernard Shaw. Socialist.

In tech stocks, a rebound, a recovery, or a dead cat exit bounce? Over this summer we will soon find out.

A lot will depend on whether the US economy has/is entering the next recession.

In Europe, the outcomes of the French and UK elections.

In the USA, who wins and losses tomorrow night’s Biden v Trump brawl in Atlanta, followed the next day by the Fed’s favourite inflation index, the PCE.

Navidia anyone? Bitcoin? Fiat currencies, dollars, Pounds or euros?

Asia-Pacific markets mixed as Australia’s inflation climbs; chip stocks track Nvidia rebound

Asia-Pacific markets were mixed Wednesday as Australia’s inflation rate climbed for a third straight month, while semiconductor and related stocks jumped after Nvidia rallied overnight.

Australia’s headline inflation rate for May came in at 4%, compared with the 3.6% recorded in April. The core inflation rate also came in at 4%, higher than the 3.8% expected by a Reuters poll of economists.

A higher-than-expected inflation reading could spur the RBA to raise interest rates. RBA Governor Michelle Bullock recently revealed the central bank discussed hiking rates at its last meeting.

Singapore’s May factory output will also be released Wednesday, with a Reuters poll of economists predicting a 2% year-on-year growth rate, as compared to a 1.6% decline recorded in April.

Australia’s S&P/ASX 200 lost 1.03% Wednesday, dragged by non-energy minerals and retail trade stocks.

Japan’s Nikkei 225 gained 1.26% in morning trade, while the broad-based Topix was up 0.64%. South Korea’s Kospi gained 0.25%, while the small-cap Kosdaq traded close to the flatline.

Semiconductor and related stocks such as Advantest jumped more than 6%, while Taiwan Semiconductor Manufacturing Company, SK Hynix and MediaTek increased 1.38%, 4% and 3.25%, respectively. Samsung Electronics was down more than 0.2%.

This comes on the back of a rebound in Nvidia shares which closed 6.76% higher on Tuesday.

Hong Kong Hang Seng index and the mainland China’s CSI 300 were both down marginally.

Overnight in the U.S., the Dow Jones Industrial Average declined, shedding 0.76% and closing at 39,112.16. Led by an Nvidia rebound, the broad market S&P 500 added 0.39% while the Nasdaq Composite advanced 1.26%, with both indexes ending three-day losing streaks.

Asia markets: Australia inflation, semiconductor stocks jump (cnbc.com)

 

European markets head for positive open as global chip stocks stabilize

LONDON — European stocks are expected to open higher Wednesday, reversing negative sentiment seen in the previous trading session.

The U.K.’s FTSE index is seen opening 8 points higher at 8,256, Germany’s DAX up 70 points at 18,226, France’s CAC 40 up 40 points at 7,692 and Italy’s FTSE MIB 75 points higher at 33,980, according to data from IG.

The positive open anticipated for European markets comes after rocky trade in the region, and elsewhere globally, after a tech-driven selloff — although volatility in the sector appeared to stabilize after chipmaking giant Nvidia rallied Tuesday.

U.S. stock futures hovered near the flatline Tuesday evening after the S&P 500 rebounded from the rough start to the week, while Asia-Pacific markets were mixed overnight as Australia’s inflation rate climbed for a third straight month, while semiconductor and related stocks jumped.

Wall Street is likely to shift its attention toward fresh U.S. inflation data on Friday with the release of May’s personal consumption expenditures price index, the U.S. Federal Reserve’s preferred inflation gauge.

Data releases in Europe on Wednesday include Germany’s GFK consumer survey for July and European consumer confidence data for June. Earnings are set to come from Mulberry.

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

In other news, going green comes with a cost. And this is just the start, wait until everywhere has to vastly expand the electric power grids.

 

German airline Lufthansa hikes ticket prices by up to $77 due to environmental costs

German airline company Lufthansa Group said Tuesday it would add an “environmental cost surcharge” to ticket prices as soon as this week, which could be as high as 72 euros ($77) for some flights.

“The surcharge is intended to cover part of the steadily rising additional costs due to regulatory environmental requirements,” Lufthansa said in a statement, pointing to regulations from the European Union and International Civil Aviation Organization.

The additional cost will be applied to fights departing from any of the 27 member countries of the European Union, as well as the U.K., Norway and Switzerland, Lufthansa said. All flights sold or operated by Lufthansa Group, which owns airlines including Lufthansa, Eurowings, Swiss and Edelweiss Air, and Austrian Airlines, will be subject to the charge.

“The amount of the surcharge varies depending on the flight route and fare and is between 1 euro and 72 euros,” Lufthansa said, adding that the exact amount would be visible to customers during the booking stage.

The fee will be applied to all tickets issued from June 26 — Wednesday of this week — that are for flights departing from Jan. 1, 2025, Lufthansa said.

Environmental regulations

Several regulations from institutions including the EU would increase costs for airlines, Lufthansa said.

This includes EU quotas for how much sustainable aviation fuel is used. These are set to come into effect in 2025 and increase over the years until 2050.

Sustainable aviation fuel is an alternative to fossil fuels, and can be made of products such as waste oil and fats, nonfood crops, and other waste materials. It can also be created in a process that captures carbon from the air.

The International Air Transport Association says sustainable aviation fuel could cover around 65% of the emissions reduction the aviation industry needs to achieve to reach net zero by 2050.

Lufthansa said Tuesday that the quotas would “lead to additional costs in the billions in the future.”

The company also pointed to the emissions trading systems from the EU, Switzerland and U.K. as a factor in its increasing environmental costs. These programs control and limit the amount of permitted emissions, with the overall cap set to decrease over time with the goal of emissions being lowered.

Finally, Lufthansa said the International Civil Aviation Organization’s climate protection agreement, which also sets out to control emissions, played a role.

Lufthansa said it was investing heavily in technology to make aviation more sustainable and supporting climate research.

“However, the airline group will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own. Part of these expected costs for the year 2025 are now to be covered by the new Environmental Cost Surcharge,” the company said.

German airline Lufthansa hikes ticket fares due to environmental costs (cnbc.com)

Finally has the EV boom already turned into bust?


Why electric car drivers are switching back to petrol

June 25, 2024

Owners of electric cars are ditching battery power and returning to petrol as demand for greener vehicles drops across Britain.

Range anxiety, a lack of public charging points and limited incentives are the key factors behind the dwindling desire for electric motors.

Car dealership chain Motorpoint Group said the majority of electric vehicle (EV) owners who sold their car in the last year didn’t buy another one – opting instead for a petrol, diesel or hybrid model.

The trend is continuing in 2024, with the latest registration figures from the Society of Motor Manufacturers and Traders (SMMT) showing a 2pc fall in EV uptake since last May.

Uptake is strong in the fleet market where volumes have risen 11pc in the last year, as businesses continue to offer employee benefits such as salary sacrifice to take on an electric car.

But convincing the mass market to make the switch to battery power is proving a hard task.

The difficulty comes as the Government falls well short of its car charging infrastructure targets, while increased tax charges are coming into force from next year, forcing EV drivers to pay an extra £180 a year in vehicle excise duty.

Mark Carpenter, chief executive at Motorpoint, said consumer confidence in EVs has been “undoubtedly impacted” by a multitude of factors.

“It’s clear that some drivers have found an electric vehicle isn’t right for them,” he said.

----Statistics from Motorpoint show that only 30pc of EV owners part-exchanging their car in the past year chose to buy another electric car, with 36pc opting for petrol, 11pc diesel and 23pc hybrid.

More

Why electric car drivers are switching back to petrol (msn.com)

 

South Korea begins search for answers after battery plant fire kills 22

June 25, 2025

HWASEONG, South Korea (Reuters) - The South Korean government ordered on Tuesday urgent safety inspections at high-risk industrial sites a day after a fire at a lithium battery factory that killed 22 workers with one person still missing.

Officials from agencies including the National Forensic Service, police and the fire department entered the factory as part of a joint investigation.

The blaze which broke out inside a warehouse with 35,000 lithium batteries produced toxic smoke, and the workers likely lost consciousness and succumbed within seconds, fire officials have said.

The fire was the latest industrial accident in a country where dozens of manufacturing workers lose their lives on the job each year despite repeated calls to improve workplace safety.

The fire was the latest industrial accident in a country where dozens of manufacturing workers lose their lives on the job each year despite repeated calls to improve workplace safety.

----Established in 2020, South Korea-based Aricell makes lithium primary batteries for sensors and radio communication devices. It has 48 employees, according to its latest regulatory filing and its LinkedIn profile.

South Korea begins search for answers after battery plant fire kills 22 (msn.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.

With the US dollar now fully weaponised, more countries opt to join the BRICS. For now, no big deal, but in 10 years time?

Joining BRICS right thing to do for Malaysia

Monday, 24 Jun 2024

SEEKING a formal membership to join BRICS, the largest and most influential geo-political grouping, is certainly the right thing for Malaysia to do as the global landscape changes.

The group was founded by its core members of Brazil, Russia, India, China and South Africa, thus the acronym of BRICS, but its membership has expanded very fast as countries search for multi-polar platforms.

A week ago, Thailand submitted its formal request to join the grouping of emerging economies.

It was reported that Thailand hopes to become a member at BRICS next summit in Russia in October, which will make the country the first Asean country to do so.

But Malaysia’s entry into BRICS would even be more significant as it will hold the Asean chairmanship next year.

Given Prime Minister Datuk Seri Anwar Ibrahim’s global stature and influence, it would certainly be more significant.

The new members of BRICS have included Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates with over 30 countries having expressed interest, according to a Reuters report last week.

Meanwhile, there are some commentators who have expressed concern at Malaysia’s decision to join BRICS, a grouping they said is spearheaded by Russia and China.

They see these two countries which have challenged the world order headed by the United States and its Western allies.

While these worries are understandable, they are not entirely accurate.

India, for example, is regarded to be close to the West and has well-published differences with China, but it also has a reputation for pursuing a fiercely independent foreign policy.

Malaysia has repeatedly said it would not take sides in the rivalry between the United States and China and has been careful in its handling of the delicate situation.

After all, Malaysia has also gained much from the US-China chip war, for example, with Penang being the largest benefactor.

The state reportedly attracted RM60.1bil in foreign investment in 2023, then the total it received from 2013 to 2020 combined.

Certainly, Malaysia will continue to welcome US investments to Malaysia, and would not do anything to harm that friendship.

The report said that the broadening curbs on Chinese technology, especially for chipmaking, are a key reason for neutral Malaysia’s appeal.

At the same time, Malaysia is also mindful that China has been its largest trading partner for the last 40 years.

Malaysia, like other countries, cannot ignore the fact that China has the largest gross domestic product (GDP) of the BRICS country. Combined, the BRICS bloc has a GDP of slightly more than the United States.

According to reports, BRICS now accounts for 37.3% of the world GDP, or more than half as much as the European Union at 14.5%, but the growing frustrations of members have been the dominance of the US dollar.

Joining BRICS will surely broaden markets and possibly help to reduce overreliance on the US dollar for trade settlements with local currencies being used instead of the arrangements.

Joining BRICS will surely broaden markets and possibly help to reduce overreliance on the US dollar for trade settlements with local currencies being used instead of the arrangements.

As Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid rightly told Bernama, “It will effectively insulate the country and the region from the changes in the US monetary policy and currency volatility, potentially improving predictability in the currency market and lowering transaction cost for exporters and importers.”

More

Joining BRICS right thing to do for Malaysia | The Star

Covid-19 Corner

This section will continue until it becomes unneeded.

People are reporting the same first symptom as a new Covid variant sends hospitalisations soaring by 30%

June 24, 2024

Many people are reporting a nasty fever as a new Covid variant rampages through the UK.

The KP.3 variant belongs to a new group of COVID-19 variants known collectively as FLiRT. The unofficial moniker was inspired by the names of the mutations in the genetic code of the variants.

They are a sublineage of JN.1 - a variant that emerged at the end of 2023 and accounted for around 60 percent of cases in England earlier this year, UKHSA data shows.

There's currently no indication that KP.3 is more severe than its predecessors, but its rapid spread is giving rise to fears that some of the immunity conferred by vaccination or past infection is waning. Hospital admissions are up 24 percent in the week ending on Sunday, the latest data shows.

What are the symptoms?

According to CDC Spokesperson, Rosa Norman, the symptoms associated with KP.3 are identical to those from JN.1. They include fever or chills.

This is line with anecdotal reports posted online.

"Fever was my first notable symptom on June 1 this year," one user wrote on X, formerly known as Twitter.

A second posted: "Had Covid last week, and I had a fever for five days straight", while a third revealed it was the first time they had experienced a fever from Covid.

Other possible symptoms include:

Cough

Sore throat

Congestion or runny nose

Headache

Muscle aches

Difficulty breathing

Fatigue

New loss of taste or smell

"Brain fog" (feeling less wakeful and aware)

Gastrointestinal symptoms (upset stomach, mild diarrhoea, vomiting)

More

People are reporting the same first symptom as a new Covid variant sends hospitalisations soaring by 30% (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.

Tiny Graphene Membrane Holds Promise for Fighting Climate Change

June 24, 2024

Researchers at École Polytechnique Fédérale de Lausanne (EPFL) have developed advanced atom-thin graphene membranes with pyridinic-nitrogen at pore edges, showing unprecedented performance in CO2 capture. This research represents a major step toward more efficient carbon capture technologies. The study was published in the journal Nature Energy.

The global fight against climate change has made it more important than ever to develop effective and affordable carbon capture technologies. As such, researchers are looking into various novel approaches to significantly cut industrial carbon emissions.

Among these efforts, carbon capture, utilization, and storage (CCUS) has emerged as an essential technology that lowers carbon dioxide (CO2) emissions from industrial sources that are difficult to mitigate, like waste incinerators, power plants, cement factories, and steel mills. However, the energy-intensive processes used in the current capture methods make them expensive and unsustainable.

The current focus of research is to create membranes that can efficiently and selectively capture CO2, which will lower the energy and financial costs related to CCS. However, the selectivity and COpermeance of even cutting-edge membranes, like polymer thin films, are constrained, which reduces their scalability.

Therefore, the challenge is to develop membranes that can provide high selectivity and CO2 permeance at the same time, which is essential for efficient carbon capture.

Scientists at EPFL, under the direction of Kumar Varoon Agrawal, have now achieved a significant advancement in this field by creating membranes that exhibit remarkable CO2 capture capabilities through the addition of pyridinic nitrogen to the graphene pores' edges. The membranes exhibit great promise for a range of industrial applications due to their exceptional balance of high CO2 permeance and selectivity.

----Additionally, the scientists demonstrated the scalability of the membrane preparation procedure by creating high-performing membranes at the centimeter scale. This is essential for real-world uses, allowing the membranes to be used in extensive industrial environments.

The high performance of graphene membranes in capturing CO2, even from dilute gas streams, can significantly lower the costs and energy requirements of carbon capture processes. This breakthrough could lead to more affordable and environmentally friendly CCUS solutions by creating new opportunities in the field of membrane science.

The uniform and scalable chemistry used in creating the membranes allows for imminent scale-up. The team is now aiming to produce these membranes through a continuous roll-to-roll process. The versatility and efficiency of these membranes have the potential to revolutionize industrial emission management and significantly contribute to a cleaner environment.

Züttel, A., et al. (2024) Graphene membranes with pyridinic nitrogen at pore edges for high-performance CO2 capture. Nature Energydoi.org/10.1038/s41560-024-01556-0

https://www.epfl.ch/en/

Tiny Graphene Membrane Holds Promise for Fighting Climate Change (msn.com)

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

World Debt Clocks (usdebtclock.org)

No diet will remove all the fat from your body because the brain is entirely fat. Without a brain, you might look good, but all you could do is run for public office.

George Bernard Shaw. Socialist.

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