Tuesday, 3 September 2024

UK Tax Winter Arrives Next Month. Waiting on Friday’s US Jobs Data.

 Baltic Dry Index. 1919  +105   Brent Crude  77.23

Spot Gold 2494               US 2 Year Yield 3.91  Fri.

It is terrible to contemplate how few politicians are hanged.

G. K. Chesterton.

Eighty five yeas ago today, Great Britain and France declared war on Hitler’s Germany for invading Poland two days earlier.

As the US stock casinos return from their Labor Day rest, Asian markets are modestly higher with the same expected in European stock casinos.

With the US presidential election now just two months away, US stock gamblers will now increasingly focus on how best to protect and preserve their wealth should either of the two presidential candidates win and go on to try to enact their bizarre economic policies.

But for this week, in the US casinos at least, it is all about Friday’s new employment number from the Bureau of Lying Labor Statistics.

There are three kinds of lies: lies, damned lies, and statistics.

Attributed to many.

Asia-Pacific markets mostly rise after South Korea’s inflation rate hits 42-month low

Published Mon, Sep 2 2024 8:02 PM EDT

Asia-Pacific markets mostly climbed on Tuesday as investors assess South Korea’s August inflation numbers, which eased to its lowest level on a year-on-year basis since March 2021.

The country’s consumer price index recorded a 2% rise year on year, coming down from July’s 2.6% and in line with expectations from a Reuters poll of economists.

On a month-on-month basis, the CPI rose 0.4%, slightly higher than the 0.3% expected from the Reuters poll.

Japan’s Nikkei 225 was 0.24% up in early trade, while the Topix was 0.6% higher.

South Korea’s Kospi was 0.11% higher, and the small cap Kosdaq inched up 0.01%.

In contrast, Australia’s S&P/ASX 200 was down 0.11%.

Mainland China’s CSI 300 also fell marginally, extending losses from a seven-month low on Monday.

Hong Kong Hang Seng index slipped 0.12%.

Markets in the U.S. were closed on Monday due to the Labor Day holiday. Futures tied to the three major indexes were down ahead of Tuesday’s session. The blue chip Dow Jones Industrial Average slipped 57 points, or 0.14%. S&P 500 futures fell 0.12%, and Nasdaq-100 futures fell 0.26%,

Asia stock markets: South Korea inflation hits 42-month low (cnbc.com)

European markets head for positive open after lackluster start to September trading

Published Tue, Sep 3 2024 12:29 AM EDT

LONDON — European stocks are expected to open in positive territory Tuesday, bouncing back from a lackluster start to September trading at the beginning of the week.

The U.K.’s FTSE index is expected to open 16 points higher at 8,372, Germany’s DAX up 28 points at 18,949, France’s CAC 40 up 7 points at 7,649 and Italy’s FTSE MIB 20 points higher at 34,395, according to data from IG.

Regional markets fell on Monday as the first trading day in September got underway and investors considered the outlook for interest rates and markets.

Expectations have risen that the U.S. Federal Reserve will begin interest rate cuts in September with the central bank’s next meeting set for Sept. 17-18.

U.S. markets were closed Monday for the Labor Day holiday, but stock futures were little changed Monday night as traders braced themselves for a potentially tough month ahead after a strong but volatile August. Investors will get their first major economic report of the month on Friday, when the U.S. government releases the August jobs report.

Asia-Pacific markets mostly climbed overnight as investors assess South Korea’s August inflation numbers, which eased to its lowest level on a year-on-year basis since March 2021.

Data releases in Europe Tuesday include the latest Spanish unemployment figures and U.K. retail sales data.

European markets: stock moves, data and earnings (cnbc.com)

In other news.

JPMorgan economist says China’s housing market crash is still not over

Published Mon, Sep 2 2024 8:43 PM EDT

China’s troubled housing market will continue to see softness as a slew of government stimulus and support measures have not been “satisfactory” in propping up the sector, according to a JPMorgan economist.

The “housing market crash is still not over yet,” Haibin Zhu, chief China economist at JPMorgan told CNBC’s “Squawk Box Asia” Monday, adding home prices would not stabilize until 2025 at the earliest.

The average price for new home sales across 100 Chinese cities rose by a modest 0.11% from July, a further slowdown from June’s 0.13% growth, according to data released by China Index Academy Saturday. Resale home prices declined 0.71% from the previous month, according to the report.

Both new and resale houses saw average prices drop 1.76% and 6.89% from a year ago, respectively, as the country’s housing market remains deeply mired in crisis.

Bloomberg reported Saturday that China is weighing a plan to lower homeowner borrowing costs by allowing refinancing on as much as $5.4 trillion in mortgages.

But analysts are skeptical the proposed measure would be effective in stimulating homebuyer sentiment and overall consumption.

“Some people think it will free up consumption — that’s only one side of the story,” according to Winnie Wu, chief China equity strategist at BofA Securities. Lower mortgage rates would cause banks to cut deposit rates to protect their margins and ensure stability in the financial system, she said, noting that reduced deposit rates would eventually cut into interest income on household savings.

The mortgage refinancing measure would also do little to boost new home demand, according to JPMorgan’s Zhu.

“Even if the mortgage refinancing policy materializes, it’s not a policy to revive the housing market,” he said, adding that the policy “has nothing to do with the new home demand, mainly benefiting the existing homeowners.”

“Rate cut is not the best policy, squeezing banks’ margin is not going to go very far,” BofA Securities’ Wu said, adding the government needs to “create a positive feedback loop rather than this downward spiral.”

JPMorgan economist says China's housing market crash is still not over (cnbc.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.

US headed for a 'pretty severe' recession, investor says

Sun, 1 Sept 2024, 4:30 pm BST

As the Federal Reserve gears up for its first interest rate cut in September, some investors feel the US is already down the path of recession. RSE Ventures CEO and co-founder and a recurring "Shark Tank" shark, Matt Higgins, joins Wealth! to discuss the likelihood of a recession in the US and what it may look like this time around.

Higgins believes the US economy is on track for a recession, believing it will be "pretty severe and very sharp." He explains that Americans have record amounts of debt, and that the Sahm Rule has been triggered with July's unemployment data. Thus, under these conditions, the US will likely experience a recession.

"I think it's going to be intense. It's going to lead to higher unemployment than people are forecasting, but it's going to be short and intense. And then we get to resolve it. And AI will be the technology that will deliver us to the other side," he adds.

US headed for a 'pretty severe' recession, investor says (yahoo.com)

Oil and gas windfall tax increase may cost economy £13bn, trade body warns

Monday 02 September 2024 6:00 am  

The government’s changes to the windfall tax will have a £13bn hit to the economy and generate lower tax revenues, an analysis from the body responsible for promoting North Sea energy firms’ interests has warned.

The data from Offshore Energies UK (OEUK), which compares the previous administration’s Energy Profits Levy (EPL) with the new government’s more stringent proposals, predicts capital investment to nosedive from £14.1bn to just £2.3bn over the government’s five-year term.

The new windfall tax will also put 35,000 jobs at risk, the body claimed, because projects that might have gone ahead under the previous regime will no longer be financially viable.

The government has claimed that the hikes will help fund the establishment of its new, state-owned energy company GB Energy. But the OEUK analysis claims the hit to economic activity in the sector will be so big that tax receipts from the levy will fall despite the rate of tax going up and allowances being closed under the new plans.

The EPL was first introduced under the Conservatives in response to the record profits raked in by North Sea energy firms after energy prices skyrocketed in response to Russia’s invasion of Ukraine.

It was originally levied at 60 per cent but was then raised to 75 per cent.

Labour plans to raise it again – to 78 per cent – and also remove the previous policy’s provision that any money spent on investment and exploration would not be taxed under the EPL.

David Whitehouse, chief executive of OEUK, said: “The Prime Minister has said that the Budget will be painful. This industry recognises that difficult decisions will need to be made.

“This is a government that has made economic growth its main priority and yet our analysis shows that its policy will ultimately reduce this sector’s contribution to the UK economy. ”

The warning comes just weeks after more than 40 companies with operations in the North Sea voiced their “grave concern” with the Starmer administration’s proposals in an open letter.

Signatories included the area’s energy firms, but also the likes of Wood Group and Sodexo, which were concerned that contracts they had with the sector would dry up, causing job losses.

A Treasury spokesman said: “We are committed to maintaining a constructive dialogue with the oil and gas sector to finalise changes to strengthen the windfall tax, ensuring a phased and responsible transition for the North Sea.

Oil and gas windfall tax increase may cost economy £13bn, trade body warns (cityam.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

What does it mean to have COVID-19 in 2024? What to know amid increase in cases

Jordan Green, Nashville Tennessean  Fri, August 30, 2024 at 9:23 PM GMT+1

What does it mean to have COVID-19 in 2024? What to know amid increase in cases

COVID-19 is once again making its rounds through the United States, but what does it mean to have COVID in 2024?

According to the Centers for Disease Control, COVID is still something to be cautious of since the disease has numerous symptoms that can be mistaken for other illnesses. It's important to test and be watchful at the sign of any symptoms.

With the increase in cases in Tennessee and across the country, the U.S. Food and Drug Administration (FDA) approved the emergency use of the 2024-2025 COVID-19 vaccines.

Here is what to know about COVID-19 in 2024.

What are the current COVID symptoms?

According to the CDC, there are many symptoms that can come from COVID-19. The organization also says that new variants and vaccination status can affect symptoms.

These are some of the symptoms recorded by the CDC:

·         Fever or chills

·         Cough

·         Shortness of breath or difficulty breathing

·         Sore throat

·         Congestion or runny nose

·         New loss of taste or smell

·         Fatigue

·         Muscle or body aches

·         Headache

·         Nausea or vomiting

·         Diarrhea

Do I quarantine for COVID in 2024? For how long?

It's still recommended to stay home when sick with COVID, but there is no official timeline for how long. The CDC recommends using caution up to five days after you begin feeling better. It is suggested to wait up to 24 hours after symptoms subsided and a fever is gone before resuming normal activities.

Even if there are no more symptoms, it's still possible for the virus to spread. Health officials recommend wearing a mask for up to five days after feeling better.

more

What does it mean to have COVID-19 in 2024? What to know amid increase in cases (yahoo.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.

Jersey to trial graphene underfloor heating

2 September 2024

An underfloor heating system using graphene-based inks is to be trialled in the Channel Islands.

Graphene technology specialist Haydale has signed a contract with Jersey Energy Technologies (JET) to begin a pilot trial deploying Haydale's innovative underfloor heaters within social housing in Jersey.

Haydale's underfloor heating system uses the company's proprietary HDPlasTM functionalisation technology to exploit the thermal conductivity properties of graphene. Data gathered from Haydale's in-house prototype systems have shown up to 30% lower operating cost for its graphene ink underfloor heating compared to standard wired systems running off mains power.

The first real-world installation of Haydale's product is planned to take place with JET later this year. The pilot trial will gather information over winter to support the efficacy and efficiency data already generated from Haydale's in-house testing, with results expected in the new year.

Under the agreement, JET has agreed to pay for exclusive access to distribute the underfloor heating product within the Channel Islands on a commercial basis. If the trial is successful, it is envisaged that this underfloor heating system will be rolled out in phases to selected homes and buildings.

Haydale Ltd is the operating arm of Haydale Graphene Industries Plc is based in Ammanford, in south Wales. Established in 2003, it has patents for its technologies in Europe, USA, Australia, Japan and China and operates from five sites in the UK, USA and the Far East.

Haydale chief executive Keith Broadbent said: "We are thrilled to collaborate with JET on this project which demonstrates our ability to use our plasma functionalisation technology platform to develop our own IP protected products for commercialisation, and this collaboration is a testament to our commitment to innovation and sustainability.

"Our underfloor heating system not only provides superior comfort but also represents a potentially significant step forward in reducing environmental impact and energy costs. This innovative solution leverages advanced technology to provide consistent, comfortable warmth, looking to ensure that each home remains cozy throughout the year without the excessive energy consumption typically associated with traditional heating systems."

JET founder George Eves said: "The adoption of Haydale's advanced underfloor heating technology aligns perfectly with our mission to provide high-quality, sustainable living solutions to the residents of the Channel Islands. We are excited to offer this cutting-edge heating solution and over time - we will look to roll the products out in the new build and retrofit projects underway with our development partner, improving the quality of life for our residents and setting a new standard for social housing."

Jersey to trial graphene underfloor heating (theconstructionindex.co.uk)

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

We do not need a censorship of the press. We have a censorship by the press... It is not we who silence the press. It is the press who silences us.

G. K. Chesterton.

 

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