Baltic
Dry Index. 1670 +15
Brent Crude 81.15
Spot Gold 2462 US 2 Year Yield 3.93 -0.08
If there was twenty ways of telling the truth and only one way of telling a lie, the Government would find it out. It's in the nature of governments to tell lies.
George Bernard Shaw.
Today’s headline about says it all.
Short term, the stock casinos will only be interested in today’s US inflation number.
But the in other news section has some very real implications for the US economy and the sky high valuations of the now reduced to “magnificent six” US stocks driving the latest US stocks bubble.
Layoffs are rising in the US economy too, just don’t tell anyone who makes a living out of fleecing the sheep on Wall Street.
Asia-Pacific markets mixed as RBNZ cuts cash rate;
Nikkei rises as Kishida to step down in September
Published Tue, Aug 13 2024 7:44 PM EDT
Asia-Pacific markets were mixed on
Wednesday as the Reserve Bank of New Zealand cut benchmark lending rates and
Japan’s Prime Minister Fumio Kishida announced that he would step down in
September.
Kishida said he would not
run for reelection as the Liberal Democratic Party leader, pledging
his support to the new LDP leader, according to a Reuters translation of his
statement in Japanese.
The Reserve Bank of New Zealand
unexpectedly cut
its benchmark cash rate to 5.25%. Economists polled by Reuters had forecast
the central bank would maintain rates at 5.5%.
In South Korea, the country’s seasonally adjusted unemployment rate fell
to 2.5% from 2.8% in July, hitting its lowest point since October 2023.
In Japan, business sentiment at
manufacturers turned slightly less confident in August compared with the month
before, according to the Reuters Tankan survey.
The Tankan survey — which tracks the Bank
of Japan’s quarterly survey of the same name — showed that the sentiment index
for manufacturers slipped to +10 in August, while the non manufacturers index
fell to +24. Both metrics stood at +11 and +26 in July’s survey.
This was due to lackluster demand from
China, which weighed on corporate sentiment, Reuters reported, noting that this
survey also comes after the Bank of Japan raised its benchmark interest rates
in July to their highest level since 2008.
Japan’s Nikkei 225 climbed 0.27%
after the announcement by Kishida, while the broad-based Topix rose 0.87%.
South Korea’s Kospi was 0.71% higher,
while the small-cap Kosdaq jumped 1.62%.
Australia’s S&P/ASX 200 saw a
smaller rise of 0.65%.
The country’s stock regulator is suing the ASX for “making misleading statements” related
to its Clearing House Electronic Subregister System, or CHESS, a computer
system used to settle trades on the exchange.
The Australian Securities and Investments
Commission pointed out the ASX had said the replacement project for CHESS was
“on track”, but at the time of the announcements, “the project was not tracking
to plan and ASX did not have any reasonable basis to imply the project was on
track to meet future milestones.”
Hong Kong’s Hang Seng index inched down
0.14%, but the mainland Chinese CSI 300 was down 0.61%.
Overnight in the U.S., stocks rallied and
moved closer to last month’s record levels after data showed producer prices
rose less than expected for July.
The producer price index — a measure of
wholesale inflation — increased
0.1% last month. Economists expected the reading to show a monthly gain of
0.2% in July, in line with the previous month’s reading, according to Dow Jones
consensus estimates.
The Dow Jones Industrial Average climbed
1.04%, at 39,765.64, and the tech-heavy Nasdaq Composite jumped
2.43%.
The S&P 500 added 1.68%,
coming to roughly less than 5% from its record high set in July.
Investors will shift their attention to
the July consumer price index figures from the U.S. due Wednesday.
Asia stock markets: Japan Tankan, RBNZ rates, South Korea unemployment (cnbc.com)
Stock futures are little changed ahead of key
inflation report on Wednesday: Live updates
Updated Tue, Aug 13 2024 7:08 PM EDT
Stock futures were mostly flat on Tuesday
evening as Wall Street looks to keep a strong start to the week going with a
key inflation report on deck.
Futures tied to the Dow Jones Industrial Average dipped
22 points, or less than 0.1%. S&P
500 futures were also down by less than 0.1%, while Nasdaq 100 futures were
little changed.
The modest move in futures comes after a
broad rally for stocks on Tuesday. The Dow rose more than 400
points, or about 1%. The S&P
500 climbed 1.7%, while the Nasdaq Composite gained
2.4%.
All three major averages are now above
their Aug. 2 closing level, which was the session before the global market
sell-off on Aug. 5 that appeared to be related to an unwind of trades
in Japan and concerns about economic growth.
The speed of the rebound is making some
Wall Street pros uneasy.
“I’m not surprised we bounced back. I’m
just surprised by how fast and by how much we bounced back,” Allianz chief
economic advisor Mohamed El-Erian said on “Closing Bell.”
The market did get a piece of good news on
Tuesday when the producer
price index report showed cooler inflation than expected. The consumer
price index report on Wednesday could similarly fuel trading moves in
the upcoming session.
However, even a lower-than-expected CPI
report may not be enough to encourage investors who are concerned by recent
signs that the U.S. labor market is softening.
“I think the inflation risk is much lower
than the unemployment risk,” El-Erian said.
Stock market today: Live updates (cnbc.com)
In other news.
China’s Huawei is reportedly set to release new AI
chip to challenge Nvidia amid U.S. sanctions
Published Tue, Aug 13 2024 11:41 PM EDT
Chinese technology giant Huawei is set to
challenge Nvidia with
a new artificial intelligence chip amid U.S. sanctions that had sought to curb
the Chinese tech giant’s technological progress, according to a Wall Street
Journal report.
Huawei told potential clients that its
upcoming processor, Ascend 910C, is on par with Nvidia’s H100, the report said,
citing people familiar with the matter. Huawei is targeting shipments as early
as October.
U.S. regulators in 2022 had
slapped restrictions on Nvidia to stop the firm from selling AI chips,
including the H100, in China, citing national security concerns.
Potential customers including Chinese
internet firms and telecommunications providers are already testing the Ascend
910C chip, the report said, adding that TikTok parent ByteDance, Baidu and
China Mobile are among those in early discussions to purchase it.
However, Huawei is facing production
delays in its current chips, WSJ said, adding that the firm also faces the
prospect of further U.S. restrictions that could impact its ability to obtain
machine components and memory chips for AI.
This is the latest sign of Huawei’s
ability to fight off American efforts aimed at restricting its access to
advanced technology.
Last year, an analysis of Huawei’s Mate 60
Pro smartphone revealed
a chip made by China’s top chipmaker SMIC that appeared to support 5G,
despite U.S. sanctions that have sought to cut the Chinese tech giant off from
the technology.
A resurgence in Huawei’s consumer
business, which includes smartphones and laptops, poses a challenge to Apple in
China, one of the company’s biggest markets.
Apple was
edged out of the top five smartphone vendors’ list in China in the second
quarter, as competition from domestic brands such as Huawei intensified,
according to a Canalys report.
Huawei has been at the center of U.S.
sanctions aimed at securing U.S. networks and supply chains.
In 2018, the U.S. banned
its agencies from obtaining Huawei equipment or services.
More
China's Huawei set to release AI new chip to challenge Nvidia, WSJ says (cnbc.com)
Chinese EV maker Zeekr says its new battery can
charge faster than that of a Tesla
Published Tue, Aug 13 2024 7:10 AM EDT Updated Tue, Aug 13 2024 8:00 AM EDT
BEIJING — Chinese electric car brand Zeekr announced new
batteries on Tuesday, which it says boast the fastest charge in the world.
The offering aims to address consumers’
long-standing worries about battery driving range and ease of charging.
In just 10.5 minutes, Zeekr’s new
batteries can go from a 10% to an 80% charge, using the automaker’s ultra-fast
charging stations, the U.S.-listed company said. Zeekr said that the new
battery could achieve the same charge performance even in negative 10 degree
Celsius (14 degrees Fahrenheit) weather in about 30 minutes.
Comparatively, Elon Musk’s Tesla says its supercharger
allow the company’s vehicles to charge up to 200 miles
in 15 minutes.
The company’s website says the Model 3 can
recharge up to 175 miles in 15 minutes, or about 48% of the car’s stated 363
mile-range.
Chinese automaker Nio has also offered the
alternative of a three-minute battery
swap. The subscription service automatically changes out the battery of
designated car models with a charged one at specific swap stations.
Zeekr said that its 2025 007 sedan, which
is set to begin deliveries next week, will be the first model to use the new
batteries.
The company noted it has opened more than
500 ultra-fast charging stations in China and plans to double that tally by
then end of this year. Zeekr aims to operate more than 10,000 ultra-fast
charging stations in 2026.
The Geely-owned electric car company
delivered a record
number of vehicles in June, making its deliveries for the first half of the
year the largest among U.S.-listed Chinese companies that only sell pure
electric cars. Deliveries fell
slightly in July.
Chinese
EV company Zeekr says its battery can charge faster than Tesla (cnbc.com)
Labor Talks at US East and Gulf Coast Ports Reach an Impasse
By Laura Curtis August 12, 2024 at 12:00 PM GMT+1
A labor strike that would halt
cargo-handling operations at ports from Houston to Boston just weeks before the
US presidential election is looking increasingly likely.
Dueling statements from the United States
Maritime Alliance, known as USMX, and the International Longshoremen’s
Association on Friday indicate the two sides are still pretty far apart.
USMX, which represents terminal operators
and ocean carriers, said it remains ready to continue bargaining, and that the
latest offer to dockworkers includes “industry-leading wage increases” and
retains the current contract’s language on automation.
Also on Friday, the ILA’s Executive Vice
President Dennis Daggett, accused shipping CEOs of “taking home bonuses in the
billions” and ocean carriers of raking in profits by “raising rates on their
customers due to global conflicts or natural disruptions.”
Automation Dispute
The ILA called off high-level wage talks
in June over truck gate technology in use at a Port of Mobile terminal that the
union said was in violation of the automation agreement. The union is also
demanding significant wage increases to make up for inflation and a share of the extraordinary profits won by ocean liners during the
pandemic.
As the summer marches on, ILA
President Harold Daggett has repeatedly warned of a strike if no deal is
reached by the deadline and last weekend set a meeting in early September for
union delegates to discuss wage demands and strike strategies.
Some importers have responded by routing cargo through other ports andstocking up now in case of a disruption ahead of the year-end holidays.
More
Supply Chain Latest: US Port Strike and Labor Talks - Bloomberg
Paramount Global to lay off 15% of U.S. workforce
and close TV studio
By Reuters August 13, 2024 7:35 PM GMT+1
Aug 13 (Reuters) - Paramount Global (PARA.O),
opens new tab will begin laying off 15% of its workforce in the United
States starting Tuesday and close down its Paramount Television studio as part
of a planned restructuring, the media giant said in internal communication.
Paramount, which owns networks like CBS,
MTV and Comedy Central, aims to reduce annual costs by $500 million and return
to profitable growth ahead of its merger with
David Ellison's Skydance Media.
In an internal memo, Paramount's co-CEOs
stated that the company is at an "inflection point" where changes are
necessary to strengthen the business.
The layoffs, which were announced during a
post-earnings call
last week, are expected to affect roughly 2,000 people. They will continue
through the end of 2024, with 90% of the cuts expected to be completed by the
end of September.
Paramount Television Studios (PTVS) will
also be shut down as part of the company's broader restructuring plans,
President Nicole Clemens said in an email to employees.
George Cheeks, Paramount Global's co-CEO,
said the move to close down the studio by the end of the week is the result of
major shifts in the television and streaming industry and a need to streamline
the company.
All current PTVS series and development
projects will be transferred to CBS Studios, Cheeks said, adding that members
of CBS teams will also be leaving the company.
The restructuring comes as the New
York-based company navigates a challenging linear TV market, having
recently written
down the value of its cable networks by nearly $6 billion.
U.S. and UK engineers reach mutual recognition agreement | Reuters
Finally, so you really, really, really want an EV. But which batteries are safe?
South Korea to advise automakers to disclose
battery information in EVs
By Reuters August 13, 2024 8:12 AM GMT+1
SEOUL, Aug 13 (Reuters) - South Korea will
advise automakers operating in the country to identify batteries used in their
electric vehicles, a government statement said on Tuesday, as authorities seek
to calm public safety concerns after a series of fires involving EVs.
The government said it had decided to
advise car makers to voluntarily disclose the information to reduce fears over
fires.
"Such battery information has not
been available to the public so far and the measure is to reduce EV owners'
fire anxiety," the office of government policy coordination said.
In recent days, some car companies,
including Hyundai Motor (005380.KS), opens
new tab,
Kia Corp (000270.KS), opens
new tab,
BMW (BMWG.DE),
opens new tab Korea
and Mercedes-Benz Korea, have started naming the manufacturers of batteries
used in cars.
There has been growing public alarm in
South Korea over EV car safety since an EV fire ripped through an underground
parking lot on Aug. 1 and caused extensive damage.
The blaze, which appeared to start
spontaneously in a Mercedes-Benz EV parked under a residential building, took
eight hours to extinguish, destroying or damaging about 140 cars and forcing
some residents to move to shelters.
Experts say requiring car companies to
identify the batteries they use would give consumers more choice, but question
how it would improve safety given the lack of definitive data on which battery
brands are more prone to fires.
South Korea to advise automakers to disclose battery information in EVs | Reuters
Disposal of batteries in spotlight after recycling
centre fire
Tue, 13 August 2024 at 6:00 am BST
The disposal of batteries is in the
spotlight after an investigation into a huge blaze at a Suffolk recycling
centre established a battery was the most likely cause.
Suffolk Fire and Rescue
Service revealed the cause of the fire at the Sackers Recycling Centre in
Great Blakenham, near Ipswich, on Monday.
An
investigation found the blaze, which was attended by almost 80
firefighters at its height, was most likely caused by a battery which made its
way into a pile of scrap metal.
Around 80 firefighters were at the scene
at the height of the fire (Image: OBD Photography)
Councillor Steve Wiles is urging residents
to learn from the incident after the cause was revealed (Image: Suffolk
County Council)
It has shed more light on the issue of
disposing batteries in the correct way across the county.
Councillor Steve Wiles, Suffolk County
Council cabinet member for public protection, said: “This was a major incident
that caused massive disruption to a great many people and saw firefighters put
themselves potentially in harm’s way as they bravely dealt with it.
“We all use batteries, we all benefit from
them, and therefore it is everyone’s responsibility to dispose of them safely.
“I would urge people to learn from this
incident – please, when you get rid of a battery, do it properly.”
The fire was most likely caused by a
battery (Image: SFRS)
More
Disposal of batteries in spotlight after recycling centre fire (yahoo.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.
UK
grocery inflation edges higher after 17 months of decline
By James Davey August 13, 2024 8:09 AM GMT+1
LONDON,
Aug 13 (Reuters) - UK grocery inflation edged higher this month for the first
time since March 2023, industry data showed on Tuesday.
Market
researcher Kantar said annual grocery price inflation was 1.8% in the four
weeks to Aug. 4, versus 1.6% in the previous four week
period.
“Having
reached its lowest rate in almost three years in July, August saw inflation
nudge up again slightly," Fraser McKevitt, head of retail and consumer
insight at Kantar, said.
"While
this is noticeable following 17 straight months of falling rates, it actually
marks a return to the average levels seen in the five years before the start of
the cost of living crisis.”
The
British Retail Consortium warned last month
that renewed inflationary pressures could be on the way as the effect of last
year's fall in commodity prices fades and climate change damages harvests
following unusually wet weather in England and extreme heat elsewhere.
Kantar
said prices are rising fastest in markets such as vitamin and mineral
supplements, fruit juices and drinks and chocolate confectionery and are
falling fastest in toilet tissues, bottled cola drinks and dog food.
Official data published
last month showed overall UK inflation held at 2% in June, lower than in the
United States and the euro area. Data for July will be published on Wednesday
and is expected to show an increase.
Kantar's
data, the most up-to-date snapshot of UK consumer behaviour published since the
July 4 national election, showed take-home grocery sales rose 3.8% in value
terms over the four-week period year-on-year.
It
said sales of wine, beer and snacks were boosted by the closing stages of the
Euro 2024 soccer championship and the start of the Paris Olympics. Barbecue
food sales were boosted by the return of some better weather.
More
UK grocery
inflation edges higher after 17 months of decline | Reuters
There's
a 40% chance the US economy is already in a recession, according to a new
indicator
August 12, 2024
There's
a new recession indicator that's making waves, and it says there's a 40%
probability the US is already in a recession.
The
economists Pascal Michaillat and Emmanuel Saez recently released the
details of a recession indicator that builds on the widely cited Sahm
rule.
The
Sahm rule, named for its creator, the economist Claudia Sahm, uses the
difference between the three-month moving average of the unemployment rate and
the past-12-month low. If the difference is at least 0.5 percentage points, the
US is in a recession.
The
rule was triggered this month when the July jobs report showed a 4.3%
unemployment rate (though Sahm herself has said she doesn't
think the US is in a recession).
Michaillat
and Saez's measure uses a similar methodology, but it's two-sided, using
unemployment and the vacancy rate for jobs.
The
measure uses the Sahm rule's procedure for unemployment and pairs it with the
difference between the three-month moving average of the vacancy rate and its
past-12-month maximum.
When
the indicator shows a difference of 0.3 percentage points, a recession may have
started. A difference of 0.8 points is a definite recession.
Using
data from July, the indicator is at 0.5 percentage points, nodding to a 40%
probability of a recession that could have started as early as March,
Michaillat and Saez said in a paper.
The
economists added that the indicator worked for recessions going back to 1930,
while Sahm's worked only back to 1960.
A
new indicator could help economists and investors better understand if a
downturn is imminent. Though the July jobs report triggered the rule she
pioneered, Sahm said she wasn't sure it was accurate this time around.
"This
pandemic cycle has been different on so many dimensions and has laid waste to
so many economic models and rules of them," Sahm said in an interview with
Business Insider last week. "If the Sahm rule was going to fail, it's
going to be this time."
She
added that having such a negative effect tied to one's name was a
hefty burden and
that she's been waiting for a more accurate rule to come along.
"What
I am so looking forward to is someone deciding it's great to have something
like this and is motivated and goes off and does it better," Sahm said.
Covid-19 Corner
This section will continue until it becomes unneeded.
Over
half of US states reporting 'very high' COVID activity levels, CDC data shows
August 12, 2024
More
than half of U.S. states are reporting "very high" levels of COVID
activity as the virus continues to spread and increase in many parts of the
country, according to the latest wastewater
data from
the Centers for Disease Control and Prevention.
At
least 27 states are reporting "very high" levels and 17 states are
reporting "high" levels of wastewater viral activity.
The
western region continues to see the highest levels followed by the South,
Midwest and Northeast, respectively.
Current
levels are nearing but remain lower than what they were in the winter months,
when there tends to be increased spread of respiratory illnesses.
Wastewater
data comes with limitations in how well it represents spread in a community,
but it may be the best data available, experts say.
"While
wastewater is not a perfect measure, it's increasingly vital in filling the
gaps left by the absence of comprehensive case reporting and hospitalization
data," said Dr. John Brownstein, an epidemiologist and chief innovation
officer at Boston Children's Hospital and an ABC News contributor.
Many
national surveillance systems have diminished in scope since the national public
health emergency ended, leaving authorities will limited resources to
monitor how the virus is spreading.
"As
traditional surveillance systems have dwindled, wastewater analysis has emerged
as one of the most reliable tools we have to monitor COVID-19 activity in
communities," Brownstein added.
Other
limited COVID surveillance systems such as emergency department visits and test
positivity are also on the rise, according
to CDC data.
Deaths from the virus remain relatively flat, especially compared to previous
years.
Updated
COVID vaccines are set to be available this fall, according to federal health
authorities. The U.S. Food and Drug Administration recommended that vaccine
manufacturers formulate shots based on the KP.2 strain, an offshoot of the
omicron variant that is currently estimated to make up about 6% of cases.
Genetically
similar variants, known as KP.3.1.1 and KP.3, currently make up almost half of
estimated cases, CDC
data shows.
The
CDC has already recommended that
everyone over the age of 6 months get an updated COVID vaccine this season. The
recommendation will take effect as soon as the vaccines are made available,
pending FDA authorization.
An
expected delivery date for the updated COVID vaccines has not been shared yet,
but in previous years the shot was made available in late August or September.
Vaccine manufacturers have told ABC News they are ready to ship doses as soon
as they receive the green light from the FDA.
Over half of US
states reporting 'very high' COVID activity levels, CDC data shows (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.
Are digital landlines more dangerous
for the public?
Mobile
operators resist plan to ensure networks have emergency power during outages
12
August, 2024
Mobile
operators are resisting plans to ensure their networks have power during
extreme weather or cyber attacks amid fears over “prohibitive” costs.
BT,
Vodafone, Virgin Media and O2 would be required to provide at least one hour of
battery back-up power at all their mobile mast sites under new guidance being
considered by regulator Ofcom.
The
watchdog has said tougher measures are needed to improve
the resilience of critical networks, as they come
under growing pressure from volatile weather and hackers.
It has
warned that the fallout from network outages is “likely to become more severe
as society becomes increasingly dependent on them to function”.
However,
mobile network operators have pushed back against the potential new rules,
which are expected to cost the industry up to £1.8bn.
In
responses to Ofcom’s consultation, BT, Vodafone and VMO2 warned it would be
“disproportionate” for providers to bear the costs of the measures alone.
Smaller
rival Three branded the costs “prohibitive”.
BT
suggested that operators could be encouraged to invest more in their networks
if Ofcom reduced the annual fees it charges for use of mobile spectrum.
The
companies also questioned the need for the measures, arguing that the impact of
short-term power outages was minimal and could be largely mitigated by nearby
sites.
They
have also urged regulators to focus on better resilience in the grid.
Mobile
firms currently provide battery back-up at sites, but the extent of coverage
and duration of reserve power varies significantly across networks.
In
addition to requiring one hour of battery back-up at all mobile sites, Ofcom’s
suggested rules could also enforce four hours of back-up in broadband
cabinets.
The
calls for greater resilience come amid concerns that Britain’s crucial
communications networks may be increasingly
vulnerable to crises.
Ofcom
pointed to extreme weather events such as storms and floods in the winter of
2021/2022, which left some communities without any means to communicate,
including making calls to emergency services.
This
has been exacerbated by the
switchover from copper to digital landlines, which
are more liable to failure in the event of power outages.
BT
has delayed its rollout of the new technology
following a number of serious incidents where so-called “telecare” devices –
personal alarms designed to be activated in a health emergency or after a fall
– failed because of digital landlines.
An
Ofcom spokesman said: “We haven’t made any proposals at this stage – the costs
we included in our call for input were part of an illustrative example
only.
“We’re
considering the responses we’ve received, and we’ll work with industry and
Government to identify and pursue ways to address any potential issues.”
Mobile operators
resist plan to ensure networks have emergency power during outages (msn.com)
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
A
socialist is somebody who doesn't have anything, and is ready to divide it up
equally among everybody.
George
Bernard Shaw.
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