Friday, 5 July 2024

UK Turns Hard Left. Global Recession Looms. Crude Oil Firms.

Baltic Dry Index. 2021 -43      Brent Crude  87.20

Spot Gold 2363              US 2 Year Yield 4.71 Wed.

Coming soon to the UK.

I didn't realize how cold it was outside today...

until I saw socialists with their hands in their own pockets.

In the stock casinos, more wobble at the top?


Japan’s Nikkei 225 declines after hitting fresh all-time highs as Asia markets mostly fall

Asia-Pacific markets were largely lower on Friday, with Japan’s Nikkei 225 paring gains after crossing the 41,000 mark and hitting fresh record highs.

The Nikkei saw a volatile session and was last down 0.29%. The broad-based Topix also faltered from record highs to drop 0.59%.

Japan’s household spending for May unexpectedly dipped 1.8% in real terms compared to the same period last year. Economists polled by Reuters had estimated a 0.1% rise.

Household spending data is a key metric for the Bank of Japan’s to assess its goal of realizing a “virtuous cycle” of rising wages and prices.

Average spending per household in May was 290,328 yen ($1,799.28), while average monthly income stood at 500,231 yen, up 6.4% in nominal terms and 3% higher in real terms from the previous year.

Investors will also be assessing retail sales numbers out from Singapore later today.

South Korea’s Kospi was 1.38% higher, and the small-cap Kosdaq rose 0.91%. The benchmarks are the only major indexes in positive territory in Asia.

Heavyweight Samsung Electronics on Friday estimated that its second quarter operating profit will surge almost 15-fold, mainly due to a rebound in semiconductor prices on the back of the artificial intelligence boom.

Samsung shares climbed 2.25%, hitting their highest level since January 2021.

Hong Kong Hang Seng index dropped 1.09%, while mainland China’s CSI300 was down 0.96%.

Australia’s S&P/ASX 200 dipped 0.18%.

Overnight in the U.S., markets were closed for the Independence Day holiday, but futures were little changed ahead of Friday’s trading session.

Nasdaq 100 futures were down 0.1%, while S&P 500 futures were trading marginally below the flatline. Dow Jones Industrial Average futures were 0.05% up.

Asia stock markets: Japan stocks record, Singapore retail sales (cnbc.com)

S&P 500 futures are little changed as investors await jobs data: Live updates

UPDATED THU, JUL 4 2024 6:44 PM EDT

S&P 500 futures are near flat Thursday night as investors readied for Friday’s closely watched jobs report.

Futures connected to the broad index sat near their flatline, while Nasdaq 100 futures slipped 0.1%. Futures tied to the Dow Jones Industrial Average added 19 points, or 0.1%.

Those moves come as traders geared up for the widely monitored labor data due Friday morning. Economists polled by Dow Jones are forecasting nonfarm payroll adds of 200,000 jobs in June and the unemployment rate to hold steady at 4%. They also expect hourly wages to climb 0.3% from May for an annualized gain of 3.9%.

The report comes as traders consider the latest economic data pointing to softening in the economy — and what it means for the Federal Reserve’s monetary policy decisions going forward.

ADP figures released Wednesday showed less private payroll growth than anticipated in June, while weekly jobless claims came in higher than economists forecast. On top of that, a reading of the service sector from the Institute for Supply Management unexpectedly indicated a contraction.

“Friday’s payroll report should help clarify the underlying strength of the labor market,” said Quincy Krosby, chief global strategist at LPL Financial. “Given other evidence of a cooling economic backdrop ... the payroll report could be increasingly decisive for the Fed as it seeks a rationale to signal an easing of rates.”

The three major indexes are on track to finish the holiday-shortened trading week up. The Nasdaq Composite and S&P 500 have climbed more than 2.5% and 1% in the week, respectively. Both closed at all-time highs and notched new intraday records on Wednesday.

The Dow has lagged this week, adding around 0.5%.

Stock market today: Live updates (cnbc.com)

In other news, the UK turns far left as a global recession looms. Get gold.

 

UK PM Rishi Sunak concedes defeat with Labour set for landslide election win: Live updates

UPDATED FRI, JUL 5 2024 12:28 AM EDT

LONDON — The U.K.’s opposition Labour Party is on course to win a huge parliamentary majority in the country’s general election, unseating the incumbent Conservatives after 14 years.

Early on Friday morning, Labour passed the threshold needed to govern alone as outgoing PM Rishi Sunak conceded defeat. Keir Starmer, leader of center-left Labour, will become the country’s next prime minister and declared victory in the early hours.

Some projections show Labour will gain its second-largest majority after former Prime Minister Tony Blair’s 179-seat majority in 1997. In comments overnight, Starmer said: “Tonight people here and around the country have spoken. And they’re ready for change.”

Millions of people across England, Scotland, Wales and Northern Ireland on Thursday voted for their local representatives in the 650-member House of Commons, the U.K.’s lower house of parliament. Ballots are still being counted, with constituencies announcing their winning candidate as soon as votes are tallied.

Here are the seats that have been declared so far:

More

UK election 2024 result: Keir Starmer's Labour set to win landslide (cnbc.com)

 

Biden says 'I'm not going anywhere' as calls to quit race grow

By Steve Holland , Andrea Shalal and Jeff Mason

WASHINGTON, July 4 (Reuters) - President Joe Biden said "I'm not going anywhere" as he faced calls by many Democrats to end his re-election bid, using the Fourth of July celebrations on Thursday to hit back at doubts about his stamina and mental acuity to continue his campaign.

The 81-year-old Democrat's shaky showing at a June 27 debate with Republican rival Donald Trumpmeans his every appearance is now closely scrutinized. Many Democratic voters are worried about whether he can keep up a grueling pace of work for the next 4-1/2 years and some in his party have urged him to step aside.

Biden was hosting the annual U.S. Independence Day festivities at the White House on Thursday, including a barbecue for a few thousand active-duty military service members and their families.

Biden, in a suit with no necktie, began his remarks with a forceful “Happy Independence Day!"

---- Abigail Disney, granddaughter of Walt Disney who founded the company that bears his name (DIS.N) opens new tab and who has been a major Democratic donor, became the latest donor to call for Biden to withdraw from the presidential election, telling CNBC on Thursday that she will halt donations to the Democratic Party until he does so.

More

Biden says 'I'm not going anywhere' as calls to quit race grow | Reuters

 

China on the brink of disastrous economic meltdown as government bonds tank

July 4, 2024

 

China's economy has been dogged by a downturn in the property market and volatile stocks over recent months, but now it could be on the precipice of a bond bubble burst.

in an unprecedented move, the People's Bank of China (PBOC) is borrowing bonds with a view to selling them to calm the market. The failure of US bank SVB in 2023, the biggest of its kind since the 2008 global financial crash, has served as a warning to China.

In late June this year, PBOC Governor Pan Gongsheng said at a financial forum: "SVB in the United States has taught us that the central bank needs to observe and evaluate the situation of the financial market from a macro-prudential perspective.

"At present, we must pay close attention to the maturity mismatch and interest rate risks associated with the large holdings of medium and long-term bonds by some non-bank entities."

The yield on China's onshore 10-year government bond, which is a benchmark for a wide range of interest rates, plummeted to 2.18 percent on July 1 - the lowest since records began in 2002.

Meanwhile, yields on 20-year and 30-year bonds are also flirting with historic lows. This comes against a backdrop of low consumer confidence and a weak property market.

That said, things may be turning round from a property perspective, with almost 60 percent of the top 100 property developers seeing a month-on-month increase in home sale values in June.

One reason behind the minor recovery could be policy shifts. At the end of last month, Beijing joined other cities, including Shanghai, in easing home buying policies and lowering the minimum down payment ratio for first-time home buyers to 20 percent.

More

China on the brink of disastrous economic meltdown as government bonds tank (msn.com)

Up next, “only in America” as they say.

The Jiggle Is Up: Bosses Bust Workers Who Fake Computer Activity

Companies’ productivity-tracking tools are getting more sophisticated in detecting when remote workers are pretending they’re busy

July 2, 2024 9:00 pm ET

It’s getting harder to outsmart the digital minders at work. 

The rise of remote work and, in turn, employee-monitoring software sparked a boom in mouse and keyboard jigglers and other hacks to help staffers fake computer activity—often so they can step away to do laundry or a school pickup.

Now some companies are cracking down on the subterfuge, deploying tools that can better spot the phony busywork.

The latest salvo in this productivity-tracking arms race came in a recent regulatory filing from Wells Fargo. In the disclosure, first reported on by Bloomberg News, the bank said it had fired more than a dozen employees in its wealth and investment management unit for allegedly simulating keyboard activity to create the “impression of active work.” 

Wells Fargo declined to say exactly how it detected the suspicious activity or whether the workers were remote, only that it “does not tolerate unethical behavior.” Across Reddit and other social-media forums, the report sparked angst, and questions. “Anyone else concerned?” wrote one Reddit user. Another, more to the point, asked: “Can IT detect my mouse jiggler?” 

The answer, increasingly, is yes. The share of companies using some kind of electronic worker-surveillance system surged during the pandemic, reaching nearly 50% in 2023, according to a survey of nearly 300 medium to large employers by research and advisory firm Gartner. These systems, which track how active workers are at their computers, have long been able to detect some installed software or extra hardware. 

More of these software systems, such as Teramind and Hubstaff, now also use machine-learning tools that can identify repetitive cursor movements or irregular patterns in someone’s computer activity. In addition, some worker-monitoring software can randomly scrape screen images to check whether screen activity is changing as the computer mouse moves.

Not so undetectable

Most mouse jigglers on the market are detectable, says Ilya Kleyman, Teramind’s chief growth officer. 

A typical jiggler works like one sold under the brand Tech8 USA for $19.99 on Amazon—essentially a mini turntable that swivels the mouse in different directions. On Tech8 USA’s site, it claims to be undetectable since it doesn’t require installing software on a work computer and shifts the mouse around at seemingly random intervals and speeds. 

Retailers also sell devices that can manually tap a key or mouse at random.

Neither technique is likely to foil Teramind’s algorithms, Kleyman says. “It won’t look like normal human mouse cursor activity that regularly clicks, drags, etc.,” he says. Plus, the software can flag artificial activity in general, such as when a cursor is active over the same static Wikipedia page for hours on end.

More

The Jiggle Is Up: Bosses Bust Workers Who Fake Computer Activity - WSJ

Finally, more on the North American crops.

US farmers hang on to corn and soybeans amid price downturn

By Karen Braun 

NAPERVILLE, Illinois, July 2 (Reuters) - U.S. corn and soybean prices have tumbled to four-year lows and producers’ disappointment with the situation is reflected in their unusually massive stockpiles.

Farmers’ hesitation to sell product could make grain availability appear tighter in local markets, but any rallies could have farmers ready to cure supply needs, potentially limiting the degree or duration of price strength.

Survey work published by the U.S. Department of Agriculture on Friday showed June 1 U.S. corn stocks at 4.99 billion bushels, a four-year high, up 22% from a year earlier and up 7% from the 10-year average for June 1.

But 61% of those corn supplies was held on farms, the largest June 1 share since 1999 and well above the decade average of 52%. Similarly, some 48% of June 1 soybean stocks was held on farms, the largest percentage for that date since 2006 and above the 10-year average of 35%.

Total June 1 soy stocks also landed 22% above the year-ago levels and reached four-year highs, but the 970 million bushels were about 1% lower than the decade mean.

U.S. farmers have held a larger-than-normal portion of corn and soybean stocks throughout this marketing year, but that margin widened in the third quarter between March and May, suggesting farmers have been increasingly stingy sellers.

Farms also housed 61% of U.S. corn supplies on March 1, a 19-year high for the date, though the decade average is 56%. For soybeans, some 51% of March 1 supplies was on farms, a 17-year high but also a bit closer than June 1 to its decade average of 42%.

---- U.S. farmers have reduced the amount of area under corn by 3% from 2023, but they increased soybean plantings by roughly the same degree, which could further add to the soy stock build if crop yields are strong this year.

 

Only three major U.S. corn states recorded total June 1 stocks below the recent five-year average: Iowa, Nebraska and Kansas with respective shortfalls of 3%, 17% and 20%.

Iowa’s 2024 corn plantings are unchanged from 2023, but Nebraska’s are up 1.5% and Kansas plantings are up almost 10%, and they are the only two major states with year-on-year area increases.

More

US farmers hang on to corn and soybeans amid price downturn | Reuters

After a very wet spring, crops now desperately need rain

No rain is in sight and record high temperatures pose a threat to XtremeAg farmers’ crops.

Published on July 2, 2024

No rain is in sight and record high temperatures pose a threat to XtremeAg farmers’ crops.

More

After a very wet spring, crops now desperately need rain (agriculture.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.

Wall Street sage issues grim warning about the S&P 500 and the chances of a recession - here is what it means for 401(K)s

A top banking analyst has predicted that US stocks could soon plunge by 30 percent. 

BCA Research chief global strategist Peter Berezin told clients last week that the US economy could fall into a recession later this year or early 2025. 

If the US does fall into recession as he predicts, Berezin says the S&P 500 will fall to as low as 3,750 - a 30 percent drop on its current levels. 

Berezin's concern for the economy is rooted in the belief that the labor market could slow substantially in the coming months.

Lower employment would weigh heavily on consumer spending, a key impetus for economic growth.

A crash would also affect American's retirement accounts. 

Most have at least some of their 401(K) and Individual Retirement Account invested in the Dow Jones, the S&P 500 and the Nasdaq. 

'The reason the US avoided a recession in 2022 and 2023 was because the economy was operating along the steep side of the Phillips curve,' he wrote in the note. 

The Philips curve is an economic theory that states there is an inverse relationship between unemployment and inflation, when the former goes up the latter will fall. 

'When the labor supply curve is nearly vertical, weaker labor demand will mainly lead to lower wage growth and falling job openings.

---- Berezin also told the firm's clients that further economic pain could be on the way as a result of slowing growth in Europe and China. 

Such a scenario would, he argued, weaken overall global growth and cause international stocks to fall.  

The gloomy argument comes after the Dow Jones hit a record high in May, topping 40,000 for the first time ever. At 39,331 is currently just below the milestone.

The S&P 500 is up more than 16 percent so far this year and the tech-heavy Nasdaq up a whopping 22 percent so far. 

The upward surge has also worried some other analysts

Among them is Sam Stovall, CFRA Research's chief investment strategist who last month warned that stocks are headed for a 'correction.' 

'I am getting increasingly concerned that we have to endure another decline of 5 percent or more before the year is out,' Stovall told Yahoo. 

In recent weeks, top bankers and even a leading former CEO have issued chilling warnings about the US economy. 

In May, Jamie Dimon - head of the world's biggest bank JPMorgan Chase - said that  the worst outcome for the US economy would be 'stagflation'. 

This is when inflation continues to go up, but unemployment is high and growth slows. 

Economists consider stagflation, last seen in the US in the 1970s, to be worse than a recession. It would send stocks down, hitting 401(K)s and other retirement savings

'I am getting increasingly concerned that we have to endure another decline of 5 percent or more before the year is out,' Stovall said in June.

The upward surge has also worried Sam Stovall, CFRA Research's chief investment strategist who last month warned that stocks are headed for a 'correction.' 

'I am getting increasingly concerned that we have to endure another decline of 5 percent or more before the year is out,' Stovall said in June.

Wall Street sage issues grim warning about the S&P 500 and the chances of a recession - here is what it means for 401(K)s | Daily Mail Online

Covid-19 Corner

This section will continue until it becomes unneeded.

Do hospital masks mean Covid is making a comeback?

July 4, 2024

Some hospitals have reintroduced mask wearing after a spike in patients being admitted with Covid-19, so should we be worried the virus is making a comeback?

Since Monday, patients, visitors and staff are required to wear masks in clinical areas at the Royal Stoke University Hospital and County Hospital in Stafford.

In Worcestershire, the Acute Hospitals NHS Trust said the measure was necessary "to protect patients, their loved ones and hospital staff from risk of infection" .

They are currently treating 65 patients with Covid-19, the highest number since December 2023. Patients are also in hospital for longer so that would indicate they are sicker too.

In Staffordshire, there are 108 patients with the virus. At Royal Stoke Hospital two wards are currently full with Covid patients.

But it is difficult to tell if this is some sort of "summer Covid wave" because we are doing a lot less testing than we used to.

Most of the testing these days is done of hospital patients when they are admitted and yes, we are seeing a bit of an uptick, indeed it might be higher than the numbers suggest as not all new patients are tested.

More

Do hospital masks mean Covid is making a comeback? - BBC News

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.

World’s biggest sodium-ion battery switches on, able to power 12,000 homes

July 3, 2024

The world’s largest energy storage facility ising next-generation sodium-ion batteries has begun operations in China.

The 100,000 kWh project in the Hubei province is capable of storing enough electricity to power 12,000 homes on a single charge.

It is the first phase of the massive Datang Hubei Sodium Ion New Energy Storage Power Station, which spans an area of 30 acres - or roughly 15 football pitches.

Sodium-ion batteries offer a number of benefits compared to conventional lithium-ion batteries, as they are both cheaper and safer than the batteries found in smartphones and electric cars.

The sodium (Na) required to build them is also 500 times more abundant than lithium. while also holding the potential for greater charge and efficiency than Li-ion batteries.

While adoption remains relatively low, a series of technological breakthroughs in recent years have now made it possible to use them in commercial settings on a massive scale.

“Sodium-ion batteries have excellent safety and low-temperature operating performance,” said Cui Yongle, a project manager at Datang Hubei Sodium Ion Energy Storage.

“They can still guarantee 85 per cent charge and discharge efficiency at minus 20 degrees Celsius, which is unmatched by other batteries. They can also guarantee 1,500 charge and discharge cycles at a high temperature of 60 degrees Celsius. Their puncture resistance and impact resistance are much better than that of ordinary batteries.”

Batteries are essential for optimising renewable energy sources like solar and wind, as they allow power to be stored during periods of over-production before being released when there is no Sun or wind.

According to the International Energy Agency (IEA), grid-scale storage will play a critical role in achieving net zero emissions targets by 2050.

“While progress is being made, projected growth in grid-scale storage capacity is not currently on track with the Net Zero Scenario and requires greater efforts,” the IEA noted in its 2023 clean energy progress report.

World’s biggest sodium-ion battery switches on, able to power 12,000 homes (msn.com)

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

World Debt Clocks (usdebtclock.org)

Child: When I grow up I want to be a socialist.

Parent: You can’t do both.

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