Wednesday, 3 July 2024

Stocks More AI Hype. Dot.con Bubble 2.0. EVs!!!

Baltic Dry Index. 2179 +21      Brent Crude  86.69

Spot Gold 2335              US 2 Year Yield 4.74 -0.03

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

 “Facts are meaningless. You could use facts to prove anything that’s even remotely true!”

Homer Simpson.

In the stock casinos, to infinity and beyond. Stock bubbles always look rosiest at tops and direst at bottoms. 2024 will be no different.

 

Asia-Pacific markets mostly rise as investors assess business activity data from the region

PUBLISHED TUE, JUL 2 2024 7:58 PM EDT

Asia-Pacific markets mostly rose Wednesday, after U.S. Federal Reserve Chair Jerome Powell noted there was progress on reining in inflation, while investors also assessed a slew of data from the region.

The au Jibun Bank reported that Japan’s composite purchasing managers’ index fell to 49.7 in June, down sharply from 52.6 in the previous month. This signals a decrease in Japanese private sector activity for the first time in seven months.

The bank noted that a slight reduction in services activity, the first decline since August 2022, outweighed a marginal increase in manufacturing output for the month.

Separately, the Caixin services purchasing managers’ index showed that China’s services sector expanded for the 18th consecutive month, though it was at its slowest pace since October 2023. The PMI was 51.2 in June, down from 54.0 a month prior.

Traders in Asia will also assess June business activity data from India, set for release later in the day.

Japan’s Nikkei 225 was up 0.7% extending its run above the 40,000 mark, while the broad-based Topix was flat.

South Korea’s Kospi was up 0.3%, while the Kosdaq Index rose 0.21%.

Australia’s S&P/ASX 200 was up 0.2%.

Hong Kong’s Hang Seng index rose 0.70% in early trade. Mainland China’s CSI 300 was down 0.4.

Chinese tech giant Alibaba announced Tuesday that it had repurchased a total of 613 million of its ordinary shares for a total of $5.8 billion in the quarter ending June. The company’s stock was up 1.7% on Wednesday.

Overnight in the U.S., the Dow Jones Industrial Average gained 0.41%, the S&P 500 gained 0.62%, and the Nasdaq Composite jumped 0.84%. Both the Nasdaq and the S&P 500 hit record high closes.

Tesla shares helped lift the S&P 500 after Elon Musk’s electric vehicle company beat expected deliveries for the second quarter.

Asia stock markets live: Japan, China, India PMI; Powell comments (cnbc.com)

 

European markets head for higher open as negative sentiment retreats

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

The U.K.’s FTSE index is seen opening 32 points higher at 8,151, Germany’s DAX up 58 points at 18,210, France’s CAC 40 up 34 points at 7,567 and Italy’s FTSE MIB up 188 points at 33,832, according to data from IG.

Regional markets closed lower Tuesday, after digesting the latest consumer price data from the euro zone which showed headline inflation in the euro area dipped to 2.5% in June, in line with the expectations of economists polled by Reuters.

However, the closely watched figures for core and services inflation remained stubbornly high, holding at 2.9% and 4.1%, respectively.

Asia-Pacific markets mostly rose overnight, after U.S. Federal Reserve Chair Jerome Powell noted there was progress on reining in inflation, while investors also assessed a slew of data from the region. U.S. stock futures traded near the flatline Tuesday night.

There are no major earnings or data releases in Europe Wednesday.

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

 

Stock futures are little changed after S&P 500 closes above 5,500 level: Live updates

UPDATED WED, JUL 3 2024 7:42 PM EDT

U.S. stock futures traded near the flatline Tuesday night after the S&P 500 closed above 5,500 for the first time.

Futures tied to the S&P 500 inched down 0.1%. Dow Jones Industrial Average futures and Nasdaq 100 futures were marginally lower.

Paramount Global shares popped nearly 7% in extended trading following reports from The Wall Street Journal and The New York Times that Skydance Media has reached a preliminary agreement to buy National Amusements, the entertainment giant’s controlling shareholder.

During Tuesday’s main trading session, the broad market index rose 0.62% to close above 5,500 for the first time. The Nasdaq Composite advanced 0.84% to close at a record, and the 30-stock Dow rose 0.41%.

As the S&P 500 continues to climb, concern is growing across Wall Street that the narrow leadership of the rally is not sustainable for much longer. The question of when the Federal Reserve will start cutting rates is also weighing upon investors. Speaking at a central bank forum on Tuesday, Fed Chair Jerome Powell said that while the central bank has made some progress in reducing inflation, it is not quite ready to lower rates. 

Scott Chronert, Citi Research head of U.S. equity strategy, thinks a pullback may be imminent in the coming months. 

“Our concern is that the market is beginning to price in a growth expectation that may be difficult for companies, one by one, to meet, particularly given the ongoing strain that we’re seeing on underlying economic conditions,” he said on CNBC’s “Closing Bell” on Tuesday. 

“Combine that with strong flows into the mega cap growth tech and core arena and a euphoric sentiment read — all suggest to us that we do have to be prepared for a pullback at some point as the summer unfolds,” Chronert added. 

Several new economic data points are scheduled for release on Wednesday ahead of the Fourth of July holiday. ADP’s private payrolls data for June is due, as are weekly jobless claims figures. The U.S. trade deficit balance for May, while the S&P Global U.S. Services Purchasing Managers Index and the ISM Non-Manufacturing PMI readings for June are due. 

Minutes from the policy-setting Federal Open Market Committee’s June meeting will be released in the afternoon. 

The New York Stock Exchange closes early at 1 p.m. ET on Wednesday and will be shut on Thursday for Independence Day.

Stock market today: Live updates (cnbc.com)

Finally, so you really, really, really want an EV.


Autopilot sends Tesla onto train tracks. California cops say feature mistook railroad for street

June 30, 2024

 

The autopilot feature of a Tesla electric vehicle drove onto train tracks Wednesday morning, mistaking the rails for a road, Woodland police said.

The Police Department shared a photo on Facebook of the vehicle stuck on the tracks several yards from the road, and reminded motorists to stay alert “driver assistance system,” as Tesla calls the feature costing several thousand dollars or $100 a month, for any errors in mapping or judgment.

“Always keep your hands on the wheel and be prepared to take control. As with any type of technology, (the autopilot) can fail, always best to be attentive and aware,” officers said.

The agency noted details of the incident were provided from statements by the occupants of the vehicle. Officers said an investigation of the incident was ongoing.

Autopilot sends Tesla onto train tracks. California cops say feature mistook railroad for street (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.

Eurozone inflation edges lower in June as food and energy prices ease

TUESDAY 02 JULY 2024 10:20 AM

Eurozone inflation edged lower in June, aided by lower food and energy prices, as markets look for signs that the inflationary surge of the past couple of years has decisively come back under control.

The ‘flash’ estimate for inflation across the bloc came in at 2.5 per cent, according to figures from Eurostat. This was down from 2.6 per cent last month and in line with economists’ expectations.

Core inflation, which strips out volatile components like food and energy, remained at 2.9 per cent in June, slightly above expectations.

Although progress on inflation has slowed in recent months, the headline rate is still down from 5.5 per cent a year ago and a peak of 10.6 per cent in October 2022.

Despite May’s increase, the European Central Bank (ECB) still felt confident enough to cut interest rates for the first time in five years last month, bringing the main interest rate down to 3.75 per cent.

However, the ECB was deliberately vague about the future path of interest rates, reflecting uncertainty over the persistence of domestic price pressures.

Today’s figures showed that services inflation remained at 4.1 per cent in June, higher than most rate-setters would like. Price increases in the services sector are generally seen as a good gauge of domestic inflationary dynamics.

More

Eurozone inflation edges lower as food and energy prices ease (cityam.com)

Shop price inflation drops to lowest level since October 2021 as retailers slash prices on TVs

TUESDAY 02 JULY 2024 6:00 AM

Retailers slashing prices on TVs to capitalise on the euros helped push shop price inflation to its lowest level since October 2021, new figures show.

According to the British Retail Consortium (BRC) and Nielsen, prices in the retail sector increased just 0.2 per cent in the year to June, down from 0.6 per cent in May. This was lower than many economists had expected.

Non-food prices actually fell 1.0 per cent in the year to June, down from a 0.8 per cent annual fall in May.

Helen Dickinson, chief executive of the BRC, noted that retailers had slashed prices on TVs to attract football fans during the Euros, partly explaining the annual fall.

The figures also showed that annual food inflation decelerated to 2.5 per cent in June, its lowest level since December 2021. This was the fourteenth consecutive deceleration in food prices.

Dickinson said inflationary pressures had eased after firms had taken steps to ensure they were less exposed to supply chain disruption.

“During the height of the cost of living crisis, retailers invested heavily in improving their operations and supply chains to compensate for the impact of global shocks on input costs,” she said.

“This is clearly paying off, with shop prices having risen just 0.2 per cent over the past 12 months. Food inflation is now lower than any time since 2021 helped by falling prices for key products such as butter and coffee,” she added.

Mike Watkins, head of retailer and business insight at NielsenIQ, expected that prices would continue to remain low as firms competed for customer demand.

“With uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer,” he said.

The news will reassure policymakers at the Bank of England that cost pressures are easing as they consider when to cut interest rates.

Headline inflation fell to two per cent in May, its lowest level since July 2021. However, the Bank of England kept interest rates in hold last month due to fears about stubborn price pressures in the services sector.

Shop price inflation drops to lowest level since October 2021 (cityam.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

Bird flu virus detected in Alaskan polar bear

July 2, 2024

In a recent study published in the journal Emerging Infectious Diseasesresearchers in Alaska, United States of America (US) reported a natural infection of a highly pathogenic avian influenza (HPAI) A(H5N1) or bird flu virus in a young, free-ranging polar bear that was found dead in Alaska in 2023. They highlighted the significance of continued wildlife health surveillance by the community as well as by hunters in the Arctic.

Background

First detected in October 2020 in Europe, the HPAI A(H5N1) clade 2.3.4.4b virus has since often infected various mammal species globally ever since. In North America, natural bird flu infections have been observed in several bear species, including Asiatic black bears, American black bears, grizzly bears, and Kodiak brown bears. Animals in captivity, including sloth bears, Asiatic black bears, and giant pandas, have been reported to contract other influenza A(H1N1) viruses. Additionally, antibodies against H3 and H6 influenza subtypes suggest previous natural exposures to bird flu viruses. Notably, seroconversion has been noted in Barent Sea polar bears and Alaskan brown bears but not in the southern Beaufort Sea polar bears.

Interestingly, genome analysis of Alaskan wildlife influenza viruses has both unreassorted and reassorted strains. The HPAI virus genotype A3 was likely introduced into Alaska via the East Asia–Australia Flyway in November 2021. Since then, it has been detected in various wild birds, including California condors in Arizona, and mammals such as red foxes, fishers, martens, raccoons, and brown bears along the Pacific Flyway.

Polar bears (Ursus maritimus) are classified as a threatened species under the US Endangered Species Act. Understanding their health threats is crucial for conservation efforts and developing effective management strategies. In the present study, researchers report the case of a male polar bear naturally infected with the HPAI H5N1 virus that succumbed to the infection.

More

Bird flu virus detected in Alaskan polar bear (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.

High-Temperature Reflectometry Reveals Graphene Growth Mechanisms

July 1, 2024

A group of researchers from ANSTO and the University of Technology Sydney has broken previous records by using the Spatz reflectometer, which is outfitted with a vacuum furnace, to conduct thin-film experiments at 1100 ℃The study has been published in RSC Advances.

Nucleon reflectometry and high-temperature equipment provide a unique combination that allows an atomic-scale understanding of thin-film growth and diffusion processes. This knowledge affects numerous thin-film technologies and gadgets that undergo various processing and heat-treatment procedures to maximize performance.

Under the direction of Francesca Iacopi and Aiswarya Pradeepkumar, the UTS group has been investigating the growth of graphene, or thin carbon sheets, on SiC/Si substrates at high temperatures. Highly conductive electronics that can be integrated with conventional silicon fabrication processes are made possible by this award-winning process.

The Australian Centre for Neutron Scattering's Spatz neutron reflectometer was heavily utilized by the UTS team to understand carbon growth mechanisms and onset temperatures better.

Neutron reflectometry allows the study of thin films with thicknesses ranging from 1 to 100 nm. Neutrons possess unique properties that allow for in-situ studies in sophisticated sample environments (a sophisticated vacuum furnace, in this case) to monitor changes in film over timescales ranging from minutes to hours.

More

High-Temperature Reflectometry Reveals Graphene Growth Mechanisms (msn.com)

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

World Debt Clocks (usdebtclock.org)

“I think Starmer picked me because of my motivational skills. Everyone says they have to work a lot harder when I’m around.”

With apologies to Homer Simpson.


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