Baltic Dry Index. 1902 -10 Brent Crude 82.63
Spot
Gold 2401 U S 2 Year Yield 4.49 +0.03
Governments do not govern, but merely control the machinery of
government, being themselves controlled by the hidden hand.
Benjamin Disraeli.
The
stock casinos generally had a bad week led by Thursday and Friday’s action.
But
with friends in the IT sector like CrowdStrike, who needs enemies?
Is
this just a long overdue rotation away from overhyped, overpriced, technology
stocks, or the start of a long forecast new recession getting underway and with
it, the 2024 top in the global stock casinos?
I
think the USA entered a new recession back in April, with most of Europe about
to follow once the Paris Olympics end.
Dow
tumbles more than 370 points, S&P 500 posts worst week since April as
investors dump big tech: Live updates
UPDATED
FRI, JUL 19 2024 4:23 PM EDT
Stocks
retreated Friday, as Wall Street wrapped up the week defined by a rotation out
of this year’s megacap winners in favor of smaller names.
The S&P 500 dropped 0.71%,
closing at 5,505.00. Nasdaq
Composite slid 0.81% to end at 17,726.94. The Dow Jones Industrial Average fell
377.49 points, or 0.93%, to 40,287.53.
Friday’s
moves marked another day of declines
across the board, with the Russell
2000 down 0.63%. But a shift toward names viewed as bigger
beneficiaries of interest rate cuts from the Federal Reserve, like small caps,
still appears to be theme of the week.
The
S&P 500 and Nasdaq slipped 1.97% and 3.65%, respectively, marking their
biggest weekly losses since April. The tech-heavy Nasdaq also snapped a
six-week win streak. On the other hand, the Dow advanced 0.72%, while the small
cap-focused Russell 2000 climbed 1.68%.
“The
stock market is experiencing a long overdue rotation,” said Glen Smith, chief
investment officer at GDS Wealth Management. “Investors are taking money out of
big tech stocks which have performed so well and moving that money into other
areas of the market.”
That
divergence has encouraged some Wall Street pros, who had worried that the
market rally was becoming too dependent on a handful of massive tech stocks.
Meanwhile, rising optimism around forthcoming interest rate decreases from the
Fed have bolstered smaller and more cyclically oriented names.
A
shift away from megacap artificial intelligence beneficiaries can explain the
Nasdaq’s underperformance this week. Similarly, the information technology
sector led the broad S&P 500 lower with a 5.1% drop.
More
Stock
market news for July 19, 2024 (cnbc.com)
Unprecedented: The
Bloomberg Close, Europe Edition
July 19,
2024 at 4:00 PM GMT+1
Good
afternoon. Here's
what you need to know to end your day.
- Massive IT
failure halts flights, payments, logins.
- Russia
sentences WSJ reporter to 16 years: Interfax.
- How Denmark
became the Las Vegas of Europe.
An
unprecedented global
IT failure hit banks, airlines and payment systems across the globe, in what
could be the largest outage ever.
- A botched
update of
a widely used CrowdStrike cybersecurity program took down Microsoft
systems. CrowdStrike said the fault had been identified and a fix deployed, adding that it
wasn’t a cyberattack.
- Some bankers
finished early as
the issues left many unable to log on to computer systems and others
were prevented from making trades.
- Airlines
began slowly
resuming some operations as thousands of delayed or canceled flights risk leaving operations bent out
of shape for days.
- Doctors’
visits across
the UK were also affected, with GP practices struggling to access scans, blood tests and
patient histories.
Unprecedented:
The Bloomberg Close, Europe Edition - Bloomberg
Microsoft-CrowdStrike
issue causes ‘largest IT outage in history’
UPDATED
SAT, JUL 20 2024 9:50 PM EDT
Businesses
worldwide grappled with an ongoing major IT outage Friday, as financial
services and doctors’ offices were disrupted, while some TV broadcasters went
offline. Air travel has been hit particularly hard, with planes grounded,
services delayed and airports issuing advice to passengers.
The
outage came as cybersecurity giant CrowdStrike
experienced a major disruption early Friday following an issue with a
recent tech update.
CrowdStrike
CEO George Kurtz has since said that the company is “actively working with
customers impacted by a defect found in a single content update for Windows
hosts,” stressing that Mac and Linux hosts are not affected.
“This
is not a security incident or cyberattack. The issue has been identified,
isolated and a fix has been deployed,” he said on social media.
One
expert suggested it may be the “largest
IT outage in history.”
Separately, Microsoft cloud services were
restored after an outage, the company said on Friday, even as many users
continued to report issues.
Shares
of CrowdStrike closed down 11%.
Global
IT outage live updates: Microsoft-CrowdStrike blackout (cnbc.com)
Stock
Market Today: S&P 500 suffers worst week since April amid wreck in tech
July
19, 2024
Investing.com
-- The S&P 500 slumped to its worst weekly loss since April as the broad
rotation out of high-flying tech stocks rattled markets.
At
16:00 (20:00 GMT), the S&P 500 fell 0.7% and NASDAQ Composite fell
0.8%, Dow Jones Industrial Average fell 377 points, or 0.9%. Small-cap
index iShares Russell 2000 ETF (NYSE:IWM) ended the week in the positive,
however, underpinned by rotation into small caps as investors price in sooner
rate cuts that are expected boost performance.
Netflix
(NASDAQ:NFLX) fell 1.5% after reporting weaker-than-expected revenue guidance
that overshadowed better-than-expected quarterly results. The streaming giant,
however, also touted further efforts to boost its ad-tier streaming tier after
phasing out the basic ad-free version in the U.S. and France.
----The
tech sector will remain in focus next week, with Microsoft (NASDAQ:MSFT),
Google-owner Alphabet (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA) are all set to
report on Tuesday.
More
Stock
Market Today: S&P 500 suffers worst week since April amid wreck in tech
(msn.com)
Uncertainty
grips world markets, stocks head lower
July
19, 2024
A
tech sell-off sparked by deepening Sino-U.S. trade tensions, uncertainty over
U.S. President Joe Biden's fate in the presidential race, disappointing Chinese
economic data and a lacklustre third plenum outcome has cast a shadow over the
global mood. Tokyo's recent bouts of yen intervention meanwhile have kept
currency traders on edge.
European
shares slipped, Asia shares fell following an overnight selloff on Wall Street,
and U.S. stock futures pointed to a weaker open later in the day.
Major
U.S. airlines grounded flights on Friday citing communications issues, while
other carriers, media companies, banks and telecoms firms around the world also
reported system outages were disrupting their operations.
LSEG
Group's Workspace news and data platform also suffered an outage on Friday that
affected user access worldwide, causing disruption across financial markets.
"Investors
are already on edge for this tech rotation and this global outage adds a
further dose of uncertainty," said Ben Laidler, head of equity strategy at
Bradesco BBI.
UNCERTAINTY
HIGH
European
stocks fell 0.5%, while London stocks slipped 0.4%. MSCI's broadest index of
Asia-Pacific shares outside Japan slid 1.7% and was headed for its worst week
in three months with a nearly 3% loss.
Technology
stocks continued to struggle in Asia, with South Korea's tech-heavy KOSPI index
and Taiwan stocks both falling 1% and 2.26%, respectively.
Michael
Metcalfe, head of global macro strategy at State Street Global Markets, said
politics, interest rate expectations and corporate earnings were having a
strong impact on world markets.
"The
changing probability of a potential Trump presidency and what that might mean
for different markets, whether it be his view of the dollar or tech regulation,
has clearly created some market rotations this week," he said, referring
to Republican presidential candidate Donald Trump.
On
top of that investors are looking closely at the Federal Reserve's response to
improving inflation data and the U.S. earnings season which is now in full
swing.
"Tech
has been where all the earnings growth has been (in recent years) so those will
be the crucial thing for risk sentiment overall," said Metcalfe.
In
China, investors were left disappointed over the lack of details provided on
the implementation steps for achieving economic policy goals at the conclusion
of its closely watched plenum on Thursday.
Chinese
officials on Friday acknowledged that the sweeping list of economic goals
contained "many complex contradictions", pointing to a bumpy road
ahead for policy implementation.
Chinese
blue-chips rose 0.5%, though the CSI300 Real Estate index slid about 2%, as an
anaemic property sector continued to weigh on China's growth outlook.
More
Uncertainty grips
world markets, stocks head lower (msn.com)
Global Inflation/Stagflation/Recession
Watch.
Given our Magic Money
Tree central banksters and our spendthrift politicians, inflation/recession now needs an entire
section of its own.
Fund managers see geopolitical conflict as
biggest tail risk — BofA survey
July 17, 2024
12:07 PM
Fund managers
see geopolitical conflict as the biggest tail risk, supplanting inflation, and
while overall pessimism has grown in July, the majority still foresee a soft
landing, according to the results of Bank of America's latest Global Fund
Manager Survey.
In the survey of
242 fund managers, who oversee a total of $632 billion in assets, the broadest
measurement of sentiment — which is based on cash levels, economic growth
expectations and equity allocations — fell to 4.9 in July from 6.0 in June. It
is the first decline following three straight months of increases and the
lowest since 4.6 in March. The broad measure of sentiment had bottomed out at
0.3 in October 2022.
Geopolitical
conflict has replaced higher inflation as the No. 1 tail risk for global fund
managers, while the number of managers concerned about an artificial
intelligence bubble more than doubled.
When asked what
the biggest tail risk is, 26% said geopolitical conflict (up from 22% in June),
22% said higher inflation (down from 32%), 18% said a U.S. recession/hard
landing (up from 14%); 12%, an AI bubble (up from 5%); and 7%, a systemic
credit event (down from 9%).
Reflecting
higher pessimism, fund managers said equity allocations dropped to a net 33%
overweight from a net 39% overweight in June. Despite the drop for the second
month in a row, the number still represents a dramatic turnaround in sentiment
during the past year. In June 2023, managers reported their equity allocations
were a net 32% underweight.
Further
reflecting the more pessimistic July, fund managers reported increasing cash
levels to a net 1% underweight, up from a net 6% underweight in June.
Fund managers
also expressed more pessimism regarding expectations of global growth over the
next 12 months. A net 27% said in July they expect a weaker economy, up from a
net 6% in June.
When asked when
or if will be a recession in the U.S., 46% said there will be no recession
within the next 18 months (down from 53% in June), while 24% said a recession
will begin in the first half of 2025 (up from 16%), 16% say the second half of
2025 (up from 14%) and only 8% predict a recession before year-end 2024 (the
same as in June).
Managers were
surveyed between July 5 and July 11.
Covid-19
Corner
This section will
continue until it becomes unneeded.
New Covid alert from WHO with advice for all
holidaymakers
The World Health Organisation says hundreds of
people are still dying from Covid every day - so you need to protect yourself
and others when you travel
By NEIL SHAW, Assistant Editor
11:53, Wed, Jul 17, 2024 | UPDATED: 12:54, Wed, Jul 17, 2024
The World Health
Organisation has warned that anyone planning on going on a summer holiday this
year should take Covid precautions - including a vaccine, mask and testing. The WHO has
issued a fresh warning over Covid, telling people not to forget that the disease is still widespread and
deadly, killing 1,700 people every week across the globe.
WHO director-general
Tedros Adhanom Ghebreyesus has warned that vaccine coverage is dangerously
declining among the over-60s and health workers, two of the groups most at risk
of dying from Covid.
Some hospitals in the UK
have brought back mandatory mask wearing and some are asking people with Covid symptoms, who do not need medical care, to stay away. In France,
the Tour de France has made masks mandatory for anyone coming into contact with
competitors or teams after a number of Covid cases.
The WHO is still
recommending that travellers wear a well-fitting mask, clean their hands
regularly, get tested prior to travelling if they show Covid-19 symptoms and, if sick, consider staying home. While being vaccinated
is no longer required by most countries or airlines, the WHO says their top
piece of advice is to make sure your vaccine is up to date before you travel.
More
New Covid alert from WHO with advice for all
holidaymakers | Europe | Travel | Express.co.uk
Technology Update.
With events happening
fast in the development of solar power and graphene, I’ve added this section.
Researchers find cheaper way to mass produce large transparent
screens
By Paul
Ridden July 18, 2024
Transparent OLED technology has come a long way since early prototypes more than
a decade ago, but screens are still a pricey proposition. Korean researchers
have developed a 100-inch NTS display for mass production at a tenth of the
cost.
The technology has been developed and
commercialized by a team from the Nano-lithography and Manufacturing Research
Center of the Korea Institute of Machinery and Materials. The Nano Transparent
Screen involves evenly distributing titanium dioxide nanoparticles – with a
diameter of 100 nanometers – throughout a film that's reckoned "as thin as
a human hair."
A high-resolution beam projector is used
to throw widescreen images onto the film, producing quality visuals with a
170-degree viewing angle and which can be seen on either side of the display. A
Polymer Dispersed Liquid Crystal film can be added to the mix to adjust
background opacity in super bright venues for improved image clarity.
The technology is reported to perform
well in high/low temperature environments, and is designed to withstand weather
extremes. Suggested applications include department store displays, smart
windows and for promotional purposes inside or outdoors – in fact, the team
demonstrated one such installation at the outdoor space of the "Youth
Mall" in Gungju last month. And though televisions haven't been mentioned,
the large NTS panels can show video content so that would seem to be a
possibility.
The team notes that a conventional
100-inch transparent OLED screen can be priced at more than KRW 100 million
(which converts to over US$72k), while less expensive transparent LED
technology has not been widely adopted due to low resolution output.
The researchers claim that mass-produced
NTS displays "can be supplied to the market at around 10% of the price of
transparent OLED screens." Relatively lightweight transparent screens
measuring more than 100 diagonal inches should also be possible, along with
flexible films for custom installations. The technology is now being
commercialized through a spin-off company.
"The technology for manufacturing
Nano Transparent Screens is a cutting-edge, innovative technology created
through the combination of nanomaterials and nanomanufacturing technology with
existing IT technologies." said principal researcher on the project,
Jun-Ho Jeong. "Going forward, we will focus on research and development to
continuously improve the quality of NTSs and lead the popularization of
transparent screens."
Source: KIMM
Researchers find cheaper way to mass produce large transparent screens
(newatlas.com)
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt Clocks (usdebtclock.org)
This
weekend’s music diversion. Beethoven’s Tempest again, but as he actually
composed it. Approx. 7 minutes.
Beethoven
– Sonata No.17 Tempest 3rd Movement
Beethoven – Sonata No.17 Tempest 3rd Movement - YouTube
This
weekend’s chess update. Approx. 10 minutes.
Deadly
Attack Out Of Nowhere! || Vaishali vs Donchenko || Biel Chess Festival (2024)
Deadly Attack Out Of Nowhere! || Vaishali vs Donchenko || Biel Chess Festival (2024) - YouTube
This
weekend’s final diversion. Batteries
again. Approx. 7 minutes.
New
Batteries: It’s Not All Hype
New Batteries:
It’s Not All Hype - YouTube
The tone and tendency of liberalism...is to attack the
institutions of the country under the name of reform and to make war on the
manners and customs of the people under the pretext of progress.
Benjamin Disraeli.
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