Baltic
Dry Index. 1963 +22 Brent Crude 71.09
Spot
Gold 2517 US
2 Year Yield 3.62 +0.03
The
history of government management of money has, except for a few short happy
periods, been one of incessant fraud and deception.
Friedrich
August von Hayek.
After a big sell-off on the US CPI inflation data, it was a volatile reversal day in the US stock casinos. Yet another sign of a top forming?
Today it’s the turn of the ECB to cut its key interest rates and in the USA, the Producer Price Index of inflation.
If Warren Buffett’s Berkshire Hathaway is continuing to sell out of banking stocks, raising almost 300 billion in cash to buy later after a crash, only a fool and his money would be a stock buyer here.
European markets poised to rally at the open,
ahead of anticipated ECB rate cut
Published Thu, Sep 12 2024 12:38 AM EDT
LONDON — European stocks are expected to
rally at the open Thursday as investors in the region await the latest monetary
policy decision from the European Central Bank.
The U.K.’s FTSE index is seen opening
76 points higher at 8,267, Germany’s DAX up 159 points at
18,482, France’s CAC 40 up
64 points at 7,460 and Italy’s FTSE MIB up 257 at 33,472,
according to data from IG.
The European Central Bank (ECB) is
expected to slash rates again by 25 basis points on Thursday, a move that would
mark the first cut since June, when it described the potential for a September
reduction as “wide open.”
The ECB’s key interest rate — which helps
to price all sorts of loans and mortgages across the bloc — is currently at
3.75% after years of aggressive hikes.
The ECB’s meeting comes just days ahead of
the U.S. Federal Reserve’s Sept. 17-18 meeting, at which it’s expected to begin
its own rate-cutting cycle.
European investors are also digesting the
latest consumer price index report from the U.S. that reflected
a 0.2% increase in consumer prices in August, putting the annual inflation
rate at 2.5% — its lowest level since February 2021.
Month-over-month core CPI — which does not
include volatile food and energy prices — came out slightly hotter than
expected, however. U.S. markets rose Wednesday as investors assessed what the
data means for Fed policy.
U.S. stock futures inched lower overnight
as investors braced themselves for more inflation and labor data, with the
August producer price index due Thursday before jobless claims data. Economists
polled by Dow Jones anticipate a rise of 0.2% last month in the headline and
core readings, up from 0.1% and 0.0% previously.
Initial jobless claims data for the week
ending Sept. 7 are also due, and expected to have slid to 225,000, down from
227,000 the previous week, according to Dow Jones.
There are no other major earnings or data
releases in Europe on Thursday.
European markets: ECB rate cut in focus, U.S. inflation data reaction (cnbc.com)
S&P 500 rises, Nasdaq closes 2% higher in
rebound from inflation report rout: Live updates
Updated Wed, Sep 11 2024 4:18 PM EDT
Stocks rose Wednesday in a bout of
volatile trading, as investors weighed what the latest U.S. inflation data
means for Federal Reserve policy. Tech shares led a rebound from steep session
lows.
The S&P 500 gained 1.07% to
close at 5,554.13. Wednesday marked the first time since October 2022 that the
broad market index dropped 1% on an intraday basis and then closed higher by
more than 1%.
The 30-stock Dow added 124.75 points, or
0.31%, to end at 40,861.71. At its low, the blue-chip index lost as much as
743.89 points. The Nasdaq
Composite added 2.17%, wiping out its earlier losses to close at
17,395.53.
Investors picked up shares of mega-cap
tech and semiconductor names in afternoon trading, boosting the Nasdaq as Nvidia jumped 8% and AMD added nearly 5%. The VanEck Semiconductor ETF (SMH) climbed
about 5%.
Bank stocks, including JPMorgan Chase and Goldman Sachs, also rebounded from
earlier lows and ended the session with marginal gains.
Stocks initially tumbled after the core
reading on the consumer price index — which strips out volatile food
and energy categories — rose slightly more than expected. This dampened
investor hopes for a half-point rate cut from the Federal Reserve. Traders are
now pricing in an 85% chance that the central bank will approve a 25
basis-point interest rate reduction at its Sept. 17-18 meeting, according to
the CME Group’s FedWatch measure. Overall CPI, however, hit its lowest
annualized level since February 2021.
More
Stock market news for September 11, 2024 (cnbc.com)
Stock futures inch lower as investors brace for
more inflation and labor data: Live updates
Updated Thu, Sep 12 2024 8:30 PM EDT
U.S. stock futures inched lower Wednesday
night as investors brace for more inflation and labor data, following a
volatile session spurred by the release of the August consumer price index.
Dow Jones Industrial Average futures fell
by 30 points, or 0.07%. S&P
500 futures and Nasdaq
100 futures dipped 0.1% and 0.18%, respectively.
Investors are coming off a choppy session,
after a late-day advance in tech shares helped the major benchmarks rebound
from their lows. The S&P
500 ended the day higher by 1.07%, even after falling more than 1% on
an intraday basis — a first for the broader index since October 2022.
At the same time, the 30-stock Dow gained 124.75 points, or
0.31%, after losing as much as 743.89 points earlier in the session. The Nasdaq Composite closed
2.17% higher, making a comeback from a decline of more than 1%.
Stocks dropped earlier in the day when
August’s consumer
price index showed an uptick in core inflation, which excludes
volatile food and energy prices. The reading spooked investors hoping for a
half-percentage point cut from the Federal Reserve at its Sept. 17-18 meeting.
“The inflation report that we saw today is
confirming a trend that we’ve acknowledged over the past couple of months,
where now that the Fed is — and I think appropriately so — focused less on
inflation and more on economic growth, that completely changes market
reactivity,” Lauren Goodwin, chief market strategist at New York Life
Investments, told CNBC’s “Closing
Bell” on Wednesday.
“It means that now good economic news —
and I would include today’s inflation report as relatively good news, a little
stronger than the markets were expecting — that’s going to be good news for the
market,” Goodwin continued.
Wall Street is anticipating the release of
the August producer price index on Thursday. Economists polled by Dow Jones
anticipate a rise of 0.2% last month in the headline and core readings, up from
0.1% and 0.0% previously.
Initial jobless claims data for the week
ending Sept. 7 is also on deck, and is expected to have slid to 225,000, down
from 227,000 the previous week, according to Dow Jones.
On the earnings front, Kroger is slated to report
results before the open on Thursday. Adobe will release its
quarterly report after the close.
Stock market today: Live updates (cnbc.com)
US inflation plummets to 'new three-year lows':
WSJ
September 11, 2024
Inflation was among the many topics that
Democrat Kamala Harris and Republican Donald Trump debated on Tuesday night,
September 10 at the National Constitution Center in Philadelphia, where the
event was hosted by ABC news.
Inflation has often been described as one
of Harris' vulnerabilities as a candidate, but the Democratic nominee
vigorously defended the Biden Administration's economic record and argued that
President Joe Biden was quite proactive in responding to the COVID-19 pandemic
and the economic problems it created.
The morning after the debate, the
Wall Street Journal's David Uberti reported on the state of inflation in
the U.S. — stressing that inflation had "eased, in August, to new
three-year lows."
Uberti
reports,
"The consumer-price index climbed 2.5 percent from a year earlier,
according to the Labor Department, decreasing from 2.9 percent in July and
extending its cooling streak to five months. Core inflation, a measure that
excludes volatile food and energy costs, held roughly steady at 3.2 percent.
Economists surveyed by The Wall Street Journal had expected overall prices to
have risen 2.6 percent from a year ago, as well as a 3.2 percent increase in
core prices."
Traders, according
to Uberti,
have "ramped up bets that" the U.S. Federal Reserve will lower
interest rates "next week to kick off a widely anticipated rate-cutting
cycle to lower borrowing costs across the economy."
In response to the news on
inflation, CNBC's Carl
Quintanilla tweeted that
the U.S. had its "lowest annual headline inflation rate since Feb
2021."
On X, formerly Twitter, former National
Economic Council Deputy Director Bharat Ramamurti posted, "The US has
reached the end of the post-COVID global inflation surge. Thanks to
Biden-Harris policies, it got through that surge with more economic growth and
wage growth than any of its competitors, and with lower unemployment than at
any time in the Obama and Bush presidencies."
In response to the news on
inflation, CNBC's Carl
Quintanilla tweeted that
the U.S. had its "lowest annual headline inflation rate since Feb
2021."
On X, formerly Twitter, former National
Economic Council Deputy Director Bharat Ramamurti posted, "The US has
reached the end of the post-COVID global inflation surge. Thanks to
Biden-Harris policies, it got through that surge with more economic growth and
wage growth than any of its competitors, and with lower unemployment than at
any time in the Obama and Bush presidencies."
US inflation plummets to 'new three-year lows': WSJ (msn.com)
If socialists understood economics, they wouldn't be socialist.
Friedrich August von Hayek.
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.
Samsung
Electronics plans global job cuts of up to 30% in some divisions: Reuters,
citing sources
Published
Wed, Sep 11 2024 9:27 PM EDT
Samsung Electronics, the
world’s top maker of smartphones, TVs and memory chips, is
cutting up to 30% of its overseas staff
at some divisions, three sources with direct knowledge of
the matter told Reuters.
South
Korea-based Samsung has instructed subsidiaries worldwide to reduce
sales and marketing staff by about 15% and the administrative staff
by up to 30%, two of the sources said.
The
plan will be implemented by the end of this year and would impact jobs
across the Americas, Europe, Asia and Africa, one person said. Six other people
familiar with the matter also confirmed Samsung’s
planned global headcount reduction.
It
is not clear how many people would be let go and which countries and business
units would be most affected.
The sources declined
to be named because the scope and details of
the job cuts remained confidential.
In
a statement, Samsung said workforce adjustments conducted
at some overseas operations were routine, and aimed at improving
efficiency. It said there are no specific targets for the plans, adding
that they are not impacting its production staff.
Samsung employed
a total of 267,800 people as of the end of 2023, and more than half, or 147,000
employees, are based overseas, according to its latest sustainability report.
Manufacturing
and development accounted for most of those jobs and sales and marketing
staff was around 25,100, while 27,800 people worked in other areas, the report
said.
More
Samsung
Electronics plans global job cuts of up to 30% in some divisions (cnbc.com)
[UK]
GDP unexpectedly stagnates in July following strong first half of 2024
Wednesday 11 September 2024 7:40 am
Economic
growth came to a standstill in July, according to official estimates, in a sign
that the UK’s surprisingly strong start to the year might have come to a halt.
New
figures show that the UK economy stagnated month-on-month in July, falling
short of the 0.2 per cent growth expected by economists.
The
services sector was the only sector to record growth in July, expanding 0.1 per
cent. The production sector, meanwhile, contracted 0.8 per cent while the
construction sector fell 0. 4 per cent.
“July’s
monthly services growth was led by computer programmers and health, which
recovered from strike action in June. These gains were partially offset by
falls for advertising companies, architects and engineers,” Liz Mckeown, ONS
Director of Economic Statistics, said.
“Manufacturing
fell, overall, with a particularly poor month for car and machinery firms,
while construction also declined,” Mckeown continued.
The
economy grew 0.5 per cent over the three months to July, largely due to
strength in the services sector. Output expanded in 11 of the 14 subsectors
measured, the ONS said.
The
figures mean the UK has not expanded for the past two months, putting the
economy on track for a weaker second half of the year.
The
UK was the fastest-growing economy in the G7 in the first half of 2024,
surprising many pundits who had expected another yet [year?] of relative
stagnation.
GDP grew 0.6 per
cent in
the second quarter, having notched a 0.7 per cent expansion in the first three
months of the year.
Most
economists thought that the pace of growth would slow over the remainder of the
year.
Despite
falling short of consensus, Michael Brown, senior research strategist at
Pepperstone, said the figures were “broadly in-keeping with expectations for
growth to moderate”.
The
UK is still on track to grow around 1.0 per cent in 2024, well ahead of the 0.3
per cent pencilled in by analysts last December.
Economic
growth has been at the heart of Labour’s agenda, with Starmer claiming wealth
creation is his “number one
priority“.
Since
entering office, ministers have announced ambitious plans to overhaul the
planning regime as well as proposals to help the long-term sick back into work.
However,
some economists are worried that the October Budget will hamstring economic
performance, particularly if there are hefty tax increases.
“The
government needs to be careful not to overcorrect with its narrative around tax
rises and the potential this has to put off investment,” Lindsay James,
investment strategist at Quilter Investors, said.
GDP unexpectedly stagnates in July following strong first half (cityam.com)
European
Luxury Shares’ $240 Billion Rout Is Just the Beginning
Once
seen as Europe’s answer to the US “Magnificent Seven” tech megacaps, shares in
companies producing high-end clothing, handbags and jewellery are languishing.
08 September 2024
After
enduring almost a quarter-trillion dollar hit to their market value in recent
months, Europe’s luxury firms may see their stock-market clout wane further as
China’s downturn worsens.
Once
seen as Europe’s answer to the US “Magnificent Seven” tech megacaps, shares in
companies producing high-end clothing, handbags and jewellery are languishing,
sapped by a spending slump. Even more ominous are signs that China’s rich, who
once flocked to upscale boutiques in Paris, Milan and Hong Kong, may not
return, their appetite for pricey items extinguished by the economy’s downward
spiral.
“This
year is more volatile and more painful because it comes after this excessive
growth,” Flavio Cereda, an investment manager at GAM UK Ltd. said, referring to
the period immediately after the pandemic when consumers liberated from
lockdowns splurged on shopping and travel.
For
Britain’s iconic raincoat maker Burberry Group Plc, it’s culminating in
ejection from London’s FTSE 100 stock index, with its market value down 70
percent in the past year. While it’s the only major brand to lose its index
slot, an gauge of luxury shares compiled by Goldman Sachs has shed $240 billion
in value from a March peak.
Gucci-owner
Kering SA and Hugo Boss AG are the worst hit, shedding almost half their value
in the past year. Kering, once a top 10 stock in France’s CAC 40 index, now
ranks 23rd. And industry giant LVMH Moët Hennessy Louis Vuitton SE, which was
Europe’s largest company by market cap a year back, has slid to second place.
The
deflation of the post-pandemic spending bubble was evident in recent earnings
reports. Kering, Burberry and Hugo Boss issued profit warnings, while at LVMH,
quarterly organic revenue at its crucial leather-goods unit grew just 1
percent, versus 21 percent a year earlier. Only brands catering to the
ultra-wealthy, such as Hermès International SCA and Brunello Cucinelli SpA,
escaped the full force of the earnings downturn.
----And
newsflow around the fallout of China’s slowdown seems to back that verdict.
Tiffany
& Co., LVMH’s premium jewellery brand, is seeking to halve the size of its
flagship Shanghai outlet, Bloomberg reported. Hong Kong’s luxury malls, which
once lured big-spending Chinese, are nearly empty. And in Switzerland, watchmakers
are seeking state aid to counter dwindling exports.
More
European Luxury Shares’ $240 Billion Rout Is Just the Beginning | BoF (businessoffashion.com)
Covid-19 Corner
This section will continue until it becomes unneeded.
Scientists Say COVID-19 Lockdowns Prematurely Aged Teens Brains
COVID-19 lockdowns prematurely aged teenagers’
brains by years – particularly for girls, reveals new research.
According to the study, restrictive rules
imposed to try to stop the spread of the virus during the pandemic accelerated
the brain development of teenage girls by an average of 4.2 years and 1.4 years
in boys.
Researchers believe girls suffered most
because they felt particularly “isolated” from their friends during the
pandemic.
The findings add to growing evidence that
draconian lockdown measures – such as school closures – hurt the mental health
of young people.
Scientists explained that adolescence is
marked by dramatic changes in emotional, behavioral and social development.
It’s also a time when a sense of
self-identity, self-confidence, and self-control are developed.
However, the pandemic slashed social
interactions for teenagers and led to anxiety, depression, and stress –
especially for girls.
The new research, published in the journal
Proceedings of the National Academy of Sciences (PNAS), shows that the pandemic
also resulted in “unusually accelerated” brain maturation in adolescents—with
the effect more pronounced in teenage girls.
Senior author Professor Patricia Kuhl of the
University of Washington said: “We think of the COVID-19 pandemic as a health
crisis, but we know that it produced other profound changes in our lives –
especially for teenagers.”
She explained that brain maturation is
measured by the thickness of the cerebral cortex, the outer layer of brain
tissue.
The cerebral cortex naturally thins with age,
even in teens.
But Kuhl said that chronic stress and
adversity are known to accelerate cortical thinning, which is associated with
an increased risk for the development of psychiatric and behavioral disorders.
More
Scientists Say COVID-19 Lockdowns Prematurely Aged Teens Brains – IJR
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.
Lithium-ion
Battery Materials Market worth $120.9 billion by 2029- Exclusive Report by
MarketsandMarkets™
11
Sep, 2024, 06:30 GMT
DELRAY
BEACH, Fla., Sept. 11, 2024 /PRNewswire/ -- The report "Lithium-ion
Battery Materials Market by Battery Chemistry
(LFP, LCO, NMC, NCA, LMO), Material (Cathode, Anode, Electrolyte), Application
(Portable Device, Electric Vehicle, Industrial, Power Tool, Medical Device),
& Region - Global Forecast to 2029", is projected to grow
from USD 41.9 billion in 2024 to USD 120.9 billion by 2029,
at a CAGR of 23.6% during the forecast period. The lithium-ion battery
materials market refers to the industry that manufactures and supplies
necessary components for lithium-ion batteries, which are important for a variety
of applications due to their high energy density and efficiency. This market
includes a variety of materials such as cathodes, anodes, electrolytes, and
separators, all of which contribute to the functionality of lithium-ion
batteries. These batteries have numerous uses, including portable electronics
such as smartphones, laptops, and tablets, as well as electric vehicles (EVs)
and energy storage systems that promote renewable energy integration.
Download
PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=23313535
The
electric vehicles segment is expected to account for the largest share of the
lithium-ion battery materials market, by application, during the forecast
period, in terms of value.
By
application, the electric vehicles segment is estimated to have the largest
market share by value. Due to the growing global demand for cleaner
transportation alternatives, the electric vehicles (EVs) segment is predicted
to account for most of the lithium-ion battery materials market in terms of
value. Electric vehicles rely largely on lithium-ion batteries for energy
storage, as they provide high energy density, long range, and rapid charging
periods, all of which are critical to vehicle performance. As governments
throughout the world impose stringent emissions rules and provide
incentives to promote electric mobility, the car industry is rapidly moving
from internal combustion engines to electrically powered vehicles. This shift
increases demand for lithium-ion batteries, which raises the demand for
high-value minerals including lithium, nickel, cobalt, and graphite, and this
in turn drives the market for lithium-ion battery materials.
By
battery chemistry, the lithium nickel manganese cobalt segment is expected to
account for the largest market share during the forecast period in terms of
value.
Based
on battery chemistry, the lithium nickel manganese cobalt segment is estimated
to account for the largest share of the market during the forecast period.
The lithium nickel manganese cobalt sector is expected to account
for the largest share of the lithium-ion battery materials market due to
its superior balance of energy density, power, and lifespan, making it the
preferred choice for a wide range of applications. These batteries are
highly sought after in the electric vehicle (EV) market, where they provide an
ideal balance of performance, safety, and cost-effectiveness, allowing for
longer driving ranges and faster charging times. The combination of nickel,
manganese, and cobalt in the cathode material improves battery performance and
stability, making this battery chemistry suitable for both automotive and
energy storage applications. As demand for electric vehicles develops due
to worldwide efforts to decrease carbon emissions, so does the demand for
high-performance lithium nickel manganese cobalt batteries, adding to the
segment's dominance in the lithium-ion battery materials market in terms of
value.
More
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
We can guarantee cash benefits
as far out and at whatever size you like, but we cannot guarantee their
purchasing power.
Alan Greenspan.
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