Monday, 1 July 2024

A World Turning/Turned Upside Down. USA. France. EU. UK.

Baltic Dry Index. 2050 +19      Brent Crude  85.33

Spot Gold 2322             US 2 Year Yield 4.71 +0.01

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

I will make such a wonderful India that all Americans will stand in line to get a visa for India.

Narendra Modi, India’s Prime Minister. Politicians!

We are living in dynamic, if uncertain times. Political change, for better or worse, is sweeping the USA, the EU, France and on Thursday the UK.

Adding to the drama, I think the US economy entered recession in April or at the latest May.

Add in a China struggling with a property market collapse.

A Japan with a 300 percent debt to GDP ratio and an EU economy blown up by the USA, who blew up the Nord Stream gas pipelines from Russia to Germany, destroying the German cheap energy economy that was the paymaster of Europe.

We are living in the modern version of October 1781. A world turned upside down.

But first, the stock casinos.

 

Asia markets mixed as China manufacturing contracts again, Japan revises first quarter GDP downward

Asia-Pacific markets started the second half of the year mixed as investors assessed June business activity data from China as well as Japan’s business confidence readings.

China released its official PMI figures on the weekend, with its manufacturing PMI coming in at 49.5, unchanged from May and marking its second straight month in contraction territory.

A private survey of manufacturing activity, however, diverged from the official numbers, showing the sharpest improvement in business conditions in three years. The S&P Caixin PMI climbed to 51.8 in June compared with 51.7 in May.

On Monday, Japan revised its first-quarter GDP contraction to 2.9% year on year, from 1.8% reported earlier. GDP data for the third and fourth quarters of 2023 were also revised downward.

In a technical note, the country’s cabinet office said the revision was due to new construction investment data.

Japan’s Nikkei 225 rose 0.26% to a 3-month high while the the broad-based Topix climbed 0.49%.

Confidence among big Japanese manufacturers improved in the second quarter, with the Bank of Japan’s Tankan survey at +13 compared to +11 in the first quarter. Economists polled by Reuters had expected it to be at +12.

Non-manufacturers’ sentiment stood at +33, matching market forecasts and down from +34 in the previous quarter. This was also the first time in four years that confidence among non-manufacturers worsened.

South Korea’s Kospi was flat, but the small-cap Kosdaq advanced 0.76%. The country saw its factory activity expand at its fastest pace since February 2022, with its June manufacturing PMI up to 52.0 from 51.6.

Mainland China’s CSI 300 was down marginally, and Australia’s S&P/ASX 200 fell 0.23%.

Hong Kong markets are closed Monday for a public holiday.

Overnight in the U.S., all three major indexes ticked down as traders looked at a “near perfect” set of inflation data, according to an industry expert.

Inflation in May slowed to its lowest annual rate in more than three years, with the core personal consumption expenditures price index, up just 0.1% last month and 2.6% higher from the prior year and in line with Dow Jones estimates.

The core PCE index, which strips out prices of food and energy, is the Federal Reserve’s preferred inflation measure. Headline PCE, which includes food and energy, was flat on the month and up 2.6% on an annual basis — also in line with expectations.

“From the market’s perspective, today’s PCE report was near perfect,” said David Donabedian, chief investment officer of CIBC Private Wealth U.S. “This was unambiguously a positive report.”

The S&P 500 slid 0.41%, while the Nasdaq Composite declined 0.71%. The two averages hit new all-time intraday highs earlier in the session before pulling back. The Dow Jones Industrial Average dropped 0.12%.

Asia stock markets: China PMI, Japan Tankan, South Korea trade (cnbc.com)

Now back to our world turned upside down. What if Joe won’t go?


Far right wins first round in France election, run-off horsetrading begins

Updated 

PARIS (Reuters) -Marine Le Pen's far-right National Rally (RN) party scored historic gains to win the first round of France's parliamentary election on Sunday, exit polls showed, but the final result will depend on days of horsetrading before next week's run-off.

The RN was seen winning around 34% of the vote, exit polls from Ipsos, Ifop, OpinionWay and Elabe showed, in a huge setback for President Emmanuel Macron who had called the snap election after his ticket was trounced by the RN in European Parliament elections earlier this month.

The RN's share of the vote was comfortably ahead of leftist and centrist rivals, including Macron's Together alliance, whose bloc was seen winning 20.5%-23%. The New Popular Front (NFP), a hastily assembled left-wing coalition, was projected to win around 29% of the vote, the exit polls showed.

The exit polls were in line with opinion surveys ahead of the election, and were met with jubilation by Le Pen's supporters. However, they provided little clarity on whether the anti-immigrant, eurosceptic RN will be able to form a government to "cohabit" with the pro-EU Macron after next Sunday's run-off.

A longtime pariah for many in France, the RN is now closer to power than it has ever been. Le Pen has sought to clean up the image of a party known for racism and antisemitism, a tactic that has worked amid voter anger at Macron, the high cost of living and growing concerns over immigration.

At Le Pen's Henin-Beaumont constituency in northern France, supporters waved French flags and sung the Marseillaise.

"The French have shown their willingness to turn the page on a contemptuous and corrosive power," Le Pen told the cheering crowd.

The RN's chances of winning power next week will depend on the political dealmaking made by its rivals over the coming days. In the past, centre-right and centre-left parties have teamed up to keep the RN from power, but that dynamic, known as the "republican front," is less certain than ever.

If no candidate reaches 50% in the first round, the top two contenders automatically qualify for the second round, as well as all those with 12.5% of registered voters. In the run-off, whoever wins the most votes take the constituency.

High turnout on Sunday suggests France is heading for a record number of three-way run-offs. These generally benefit the RN much more than two-way contests, experts say.

More

Far right wins first round in France election, run-off horsetrading begins (yahoo.com)

Top aides shielded Biden from staff, but couldn't hide the debate

June 30, 2024

Joe Biden's close aides have carefully shielded him from people inside and outside the White House since the beginning of his presidency.

Why it matters: The intermittent access has resulted in many current and former White House aides being shocked at the 81-year-old president's limitations at the debate Thursday night.

Driving the news: Current and former White House aides are feeling whiplash — and now questioning whether Biden could fulfill a second term.

  • "It's time for Joe to go." That's what Chandler West, the White House's deputy director of photography from January 2021 to May 2022, wrote in an Instagram story after the debate.
  • "I know many of these people and how the White House operates. They will say he has a 'cold' or just experienced a 'bad night,' but for weeks and months, in private, they have all said what we saw last night — Joe is not as strong as he was just a couple of years ago," West wrote, according to screenshots obtained by Axios.
  • Reached by phone, West said he wrote the post because "the debate was not the first bad day, and it's not gonna be the last." He declined to comment further.
  • The president and his team have acknowledged Biden had a bad night but said he had a cold.

Zoom in: Biden's behavior stunned many in the White House in part because Biden's closest aides — often led by Jill Biden's top aide, Anthony Bernal, and deputy chief of staff Annie Tomasini — took steps early in his term to essentially rope off the president.

  • Even the White House's residence staff, which serves the first family in the mansion's living quarters, has been kept at arm's length.
  • A former residence official told Axios that Jill Biden was "so protective of the president, and then Anthony just protects her, and they often wouldn't let us do anything for them."
  • "The separation between the family and the residence staff was so big, so divided," the former official said. "It's not supposed to be and usually isn't, even in the Trump White House."

More

Top aides shielded Biden, but couldn't hide the debate (axios.com)

Next, how the Democrats could replace an elderly President Joe.


How Democrats could replace Biden as presidential candidate before November

By Jeff Mason 

WASHINGTON, June 28 (Reuters) - After President Joe Biden's shaky performance at the debate with former President Donald Trump on Thursday night, some Democrats openly questioned whether he should be replaced as their candidate for the 2024 election.

There is a process for doing so, but it would be messy.

For answers on how that would work, Reuters spoke to Elaine Kamarck, a senior fellow at the Brookings Institution think tank, a Democratic National Committee (DNC) member, and author of the book "Primary Politics" about the presidential nominating process.

Q: WHAT OPTIONS DO DEMOCRATS HAVE?

A: The Democratic Party has had no real Plan B for Biden as its presidential candidate. He ran virtually unopposed for the party's presidential nomination this year.

He will not be nominated officially until later this summer, so there is still time to make a change and a handful of scenarios to enact one: Biden could decide himself to step aside before he is nominated; he could be challenged by others who try to win over the delegates he has accrued; or he could withdraw after the Democratic convention in Chicago in August, leaving the Democratic National Committee to elect someone to run against Trump in his place.

Q: SO WHAT HAPPENS NEXT?

A: Right now, the process largely depends on Biden. He would have to agree to step down or face a challenger this late in the process who would try to force him to do so. So far Biden has shown no indications of wanting to step aside and no opponents have challenged him directly.

In fact some of his top potential replacements - Vice President Kamala Harris and California Governor Gavin Newsom - spoke passionately in his defense after the debate, serving in a surrogate role that showcased their support but also contrasted their smooth delivery with his faltering one on the Atlanta debate stage.

Q: WHAT HAPPENS IF BIDEN STEPS DOWN?

A: Biden has spent the last several months accruing nearly 4,000 Democratic delegates by winning primary elections in U.S. states and territories.

Those delegates would normally vote for him, but the rules do not bind or force them to do so; delegates can vote with their conscience, which means they could throw their vote to someone else.

If Biden "releases" his delegates by stepping aside, there could be a competition among other Democratic candidates to become the nominee.

More

How Democrats could replace Biden as presidential candidate before November | Reuters

Finally, the Atlantic hurricane season gets off to an alarming start.

 

Beryl, earliest Category 4 hurricane on record, brings perilous winds to Caribbean

By Reuters 

June 30 (Reuters) - The "extremely dangerous" Category 4 storm Hurricane Beryl barrelled across the Atlantic Ocean on Sunday night toward the Caribbean's Windward Islands, where it is expected to bring life-threatening winds and flash flooding on Monday, the U.S. National Hurricane Center said.

The first hurricane of the 2024 season was located about 150 miles (240 km) southeast of Barbados on Sunday night, with maximum sustained winds of 130 mph (215 kph), the NHC said in an advisory.

"Beryl is expected to remain an extremely dangerous major hurricane as its core moves through the Windward Islands into the eastern Caribbean," the NHC said in its latest advisory.

The center of the hurricane is expected to travel across the Windward Islands on Monday morning as a Category 4 storm, the second-strongest level on a five-step scale, bringing "potentially catastrophic wind damage" to St. Vincent and the Grenadines, and Grenada.

It is rare for a major hurricane to appear this early in the Atlantic hurricane season, which runs from June 1 to Nov. 30. On Sunday, Beryl became the earliest Category 4 hurricane on record, beating Hurricane Dennis, which became a Category 4 on July 8, 2005, according to NHC data.

 

Hurricane warnings have been issued in Barbados, St. Lucia, St. Vincent and the Grenadine Islands, Grenada and Tobago. A tropical storm watch has been issued for Dominica, Trinidad, and parts of the Dominican Republic and Haiti.

Beryl, earliest Category 4 hurricane on record, brings perilous winds to Caribbean | Reuters

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.

China's June factory activity contracts again, services slows

By Joe Cash and Ellen Zhang 

BEIJING, June 30 (Reuters) - China's manufacturing activity fell for a second month in June while services activity slipped to a five-month low, an official survey showed on Sunday, keeping alive calls for further stimulus as the economy struggles to get back on its feet.

The National Bureau of Statistics (NBS) purchasing managers' index (PMI), at 49.5 in June, was unchanged from May, below the 50-mark separating growth from contraction and in line with a median forecast of 49.5 in a Reuters poll.

"Actual industrial activity should be stronger than the data suggests as our observation is that the official PMI fails to fully capture the current export momentum, which has been the major economic driver this year," said Xu Tianchen, senior economist at the Economist Intelligence Unit.

Still, Xu added that external and domestic demand remains relatively inadequate to absorb China's manufacturing capacity and this will prevent a recovery in producer prices.

While a sub-index of production was above 50 in June, other indexes of new orders, raw material stocks, employment, supplier delivery times and new export orders were all in contractionary territory, the NBS survey showed.

China's exports exceeded forecasts in May, but analysts said the jury is still out on whether export sales are sustainable given growing trade tension between Beijing and Western economies. Meanwhile, a protracted property crisis continues to drag on domestic demand.

More

China's June factory activity contracts again, services slows | Reuters

Nearly 1 in 3 Americans Earning Over $150,000 Worry About Making Ends Meet: Fed Report

More than 15 percent of people earning over $150,000 took an additional job over the past year to cope with tighter financial conditions.

6/28/2024  Updated:  6/28/2024

 

Americans in upper-income groups are concerned about their ability to pay bills, with more than 15 percent of this demographic taking up additional jobs over the past year, according to a survey by the Federal Reserve Bank of Philadelphia.

As of April 2024, 32.5 percent of respondents earning over $150,000 annually were worried about making ends meet over the next six months, up from 21.7 percent in April of last year, the June survey showed.

This percentage is higher than for those in the income groups of $100,000 to $149,999, $70,000 to $99,999, and $40,000 to $69,999. Only individuals who earned less than $40,000, the lowest income group, were more worried than the $150,000-plus group.

Among all income levels, the percentage of people anxious about their ability to pay bills was higher in April 2024 compared to a year ago. The share of respondents concerned about making ends meet rose among those already paying their bills on time, with the increase most prevalent among people who are younger, female, or in higher income groups.

In April last year, 20.7 percent of individuals who could pay all of their bills were worried about the next six months. In 2024, this jumped to 26.2 percent.

The various income groups behaved differently in how they handled their tighter financial situations over the past year.

Among the $150,000 group, 15.3 percent took an additional job, the highest among all income levels. This group borrowed the least from formal sources but was the second-highest when it came to borrowing from family or friends.

People earning less than $40,000 ranked at the bottom in terms of taking up an additional job. However, they ranked second-highest in borrowing from formal sources and were at the top in terms of borrowing from family or friends.

More

Nearly 1 in 3 Americans Earning Over $150,000 Worry About Making Ends Meet: Fed Report | The Epoch Times

Covid-19 Corner

This section will continue until it becomes unneeded.

UK faces KP.3 Covid variant surge: Symptoms and health advice

June 30, 2024

Fears are mounting as a potential summer Covid wave hits the UK, with the emergence of a new variant, KP. 3, which has been on the rise.

The BBC has highlighted an uptick in infections, and hospitals have noted an increase in admissions due to the virus, with this more aggressive strain being identified in the UK after it prompted a significant spike in cases in the USA.

The KP. 3 variant is part of a novel cluster of COVID-19 variants, informally dubbed FLiRT, derived from their genetic mutations.

These variants are a subset of the JN lineage. In the US, the KP3 variant has been linked to a surge in Covid cases and is now also present in the UK, albeit in smaller numbers. Hospital admissions have climbed to 3.31 per 100,000 people as of the week ending 16 June, up from 2.67 per 100,000 the week before, reports the Mirror.

The UK Health Security Agency (UKHSA) has said it is waiting for "more data" regarding these new variants to fully grasp their severity and infectiousness. Hospital admissions have seen a 24% increase in the week concluding on Sunday, according to the most recent figures. CDC spokesperson Rosa Norman has said the symptoms of KP. 3 mirror those of the earlier JN.

----The NHS is urging individuals with symptoms of covid to stay at home and avoid contact with others, especially if they have a high temperature or feel too unwell for work or school.

Vaccinations are being highlighted as a key defence against severe illness and hospitalisation from both flu and COVID-19, with a particular call for over-75s, those with weakened immune systems, and care home residents to get their booster jabs.

More

UK faces KP.3 Covid variant surge: Symptoms and health advice (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.

Electric car battery charges in under five minutes in track test

28 June 2024

An electric car battery developed by UK start-up Nyobolt has successfully charged from 10% to 80% in four minutes and 37 seconds in its first live demonstration.

It was achieved with a specially-built concept sports car on a test track in Bedford, and is part of industry-wide efforts to get electric vehicles (EVs) charging more quickly.

By comparison, an existing Tesla supercharger can charge a car battery to 80% in 15-20 minutes.

Experts say eliminating so-called "range anxiety" is key to increasing uptake of EVs - but also stress the importance of improving the charging infrastructure.

“Developing technology that enables people to charge more quickly, which chimes with the time it currently takes to re-fuel a car – is really important," Paul Shearing, Professor of Sustainable Energy Engineering at Oxford University, told the BBC.

But he added there needed to be more chargers of all types.

“People are going to want fast-charging infrastructure, independent of what car they’re using – everyone wants to do this more quickly,” he said.

The sports car the Nyobolt battery was fitted to - which was tested over two days this week - achieved a range of 120 miles after four minutes

A Tesla charged to 80% would typically have a range of up to 200 miles.

Dr Sai Shivareddy, co-founder of Nyobolt, told the BBC he was pleased with the results but admitted that the tests had been “nerve-wracking”.

The demo was carried out live in front of an invited audience of industry professionals for the first time - with a few hitches along the way.

Challenges included the UK heatwave, a failure in the concept car’s cooling system, and a standard on-site charger that was not made by Nyobolt.

These factors prevented the firm from recreating laboratory results, in which it says the battery can charge from 0% to 100% in six minutes.

Nonetheless, Dr Shivareddy described the event as “a big milestone for electrification”, and joked that his own car was still charging, having plugged it in when he arrived earlier that day.

Nyobolt says it does not intend to manufacture its own vehicles, and plans to partner with existing car brands, with the battery potentially inside EVs “at small scale” within a year.

The powerful 350kW DC superfast chargers that it requires are publicly available in the UK but are not yet widespread.

The firm also claims it has minimised degradation - it says the battery still charges to 80% after 4,000 cycles.

More

Electric car battery charges in under five minutes in track test - BBC News

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

World Debt Clocks (usdebtclock.org)

Officeholders are the agents of the people, not their masters.

Grover Cleveland.

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