Monday 21 October 2024

BRICS Week. Boeing Votes. Don v Kamala The Final Two Weeks.

Baltic Dry Index. 1576 -18          Brent Crude  73.49

Spot Gold 2730               US 2 Year Yield 3.95  -0.01

The stock market is but a mirror which provides an image of the underlying or fundamental economic situation. Cause and effect run from the economy to the stock market, never the reverse. In 1929 the economy was headed for trouble. Eventually that trouble was violently reflected in Wall Street.

John Kenneth Galbraith.

In the stock casinos, a pause?

How will US stock casinos, priced to perfection, react to a win by Don or Kamala, now just 15 days away? Gold is already reacting, moving higher, hedging against both.

In EV news, welcome to the flammable school bus.

Elsewhere, it’s BRICS week, introducing BRICS Pay.

Asia-Pacific markets mixed as investors assess China loan prime rate cut

Updated Mon, Oct 21 2024 12:19 AM EDT

Asia-Pacific markets were mixed Monday as traders assessed China’s loan prime rate announcement, with focus also on Japan’s general election at the end of this week.

China’s central bank cut the one- and five-year LPRs by 25 basis points to 3.1% and 3.6%, respectively.

This has been indicated by the People’s Bank of China Governor Pan Gongsheng on Friday, although the

ING in a note last week also said that the PBOC was likely to release its rate decision for the medium term lending facility on Friday, although it is expected to be left unchanged at 2% after being reduced by 30 basis points last month.

“Data aside, it is worth monitoring if there are potential further government ministry briefings or a potential announcement of the timing for the National People’s Congress meeting in the week ahead, as stimulus rollout remains a major theme for markets,” ING said.

Other key economic data this week will include October inflation figures for Japan’s capital city of Tokyo, as well as advance third-quarter GDP figures from South Korea.

Japan’s benchmark Nikkei 225 was trading close to the flatline, while the broad based Topix was 0.17% lower.

South Korea’s Kospi climbed 0.83% and the small-cap Kosdaq jumped 1.05%.

Australia’s S&P/ASX 200 started the day up 0.64%.

Hong Kong’s Hang Seng index was up 0.14%, while mainland China’s CSI 300 rose 0.19%.

In the U.S., both the S&P 500 and the Dow Jones Industrial Average surged to record highs Friday, sealing six straight weeks of gains.

The broad market benchmark advanced 0.40% to close at 5,864.67, while the blue-chip Dow gained 36.86 points, or 0.09%, to end at 43,275.91.

The Nasdaq Composite, led by a postearnings jump in Netflix, ended the day up 0.63% at 18,489.55.

Asia markets live: China LPR, South Korea GDP, Japan inflation

European markets set to start the new trading week in mixed territory

Updated Mon, Oct 21 2024 12:37 AM EDT

European markets are heading toward a mixed start to the new trading week.

The U.K.’s FTSE 100 index is expected to open 17 points higher at 8,373, Germany’s DAX down 12 points at 19,644, France’s CAC up 1 point at 7,611 and Italy’s FTSE MIB up 55 points at 35,087, according to data from IG.

Regional markets had ended last week on a high note after the European Central Bank announced its third interest rate cut of the year last Thursday, lowering the deposit rate by another 25 basis points, as inflation risks in the European Union are seen to be easing faster than anticipated.

Overnight, Asia-Pacific markets were mixed as traders assessed China’s loan prime rate announcement, with focus also on Japan’s general election at the end of this week.

Stateside, stock futures ticked higher Sunday night after the Dow Jones Industrial Average and S&P 500 notched their best weekly win streaks of 2024.

European markets live updates: stocks, news, data and earnings

In other news.

Boeing machinists to vote on new proposal with 35% raises that could end strike

Published Sat, Oct 19 2024 11:05 AM EDT Updated Sat, Oct 19 2024 6:20 PM EDT

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining  a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft  production.

The ratification vote is set for Wednesday.

The new proposal includes 35% wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions among other changes.

Acting U.S. Secretary of Labor Julie Su met with both parties earlier this week. “With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday.

“President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide,” a White House spokesperson said in a statement.

The strike began Sept. 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that included 25% wage increases over four years. Boeing later made a sweetened offer but the union blasted it saying it was not negotiated.

“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement.

Boeing is working to stop bleeding cash as it grapples with a safety crisis stemming from a near-catastrophic door plug blowout on one of its 737 Maxes at start the year and challenges in its other programs.

The company earlier this month said it will report a deep loss and take charges of about $5 billion in its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company’s top job in August, tasked with reshaping the company.

On Oct. 11, he announced job cuts of 10% of Boeing’s workforce and that the company will stop making 767s when orders are fulfilled in 2027.

Boeing machinists to vote on new proposal that could end strike

In EV news, would you put your children on an insane, leftist agenda, electric flammable school bus?

Biden-Harris admin recalls hundreds of electric school buses that could burn

Posted on October 17, 2024 

The Federal Transit Administration (FTA) issued a warning Wednesday about 483 electric transit buses being recalled over safety defects, according to a safety advisory.

Phoenix Motorcars is voluntarily recalling Proterra 800V catalyst vehicles from 2020 to 2021 and ZX5 Proterra transit buses from 2020 to 2022 over concerns that they could be prone to catching fire, according to an advisory from the FTA. The vehicles were first recalled by the National Highway Traffic Safety Administration (NHTSA) in September over issues with their radiator fan electrical circuits overheating, which is a potential fire hazard, according to a Sept. 5 report.

A customer reported that their Proterra bus started smoking in July 2021, and a second incident with a smoking vehicle occurred in January 2024, according to a report from Smart Cities Dive. Phoenix Motorcars obtained Proterra’s transit buses after the company filed for Chapter 11 bankruptcy in August 2023.

U.S. Secretary of Energy Jennifer Granholm faced criticism in 2021 over her owning shares of Proterra, which was seen as a conflict of interest since the company had a direct stake in the department’s work. Granholm did not sell her shares in Proterra until after the House Oversight Committee opened an investigation into her ownership stake in the company in May 2021.

The Biden-Harris administration has led a green energy push to implement electric vehicles across the nation. The administration’s goal of building 500,000 electric vehicle (EV) charging stations across the U.S. by 2030 has faced major delays.

There have been various issues with the rollout of electric buses, including a Maryland county’s bus program resulting in millions of dollars of ‘wasteful spending’ due to mechanical issues and multiple reports of electric buses across the nation catching on fire. California’s Oakland Unified School District (OUSD) is also transitioning to electric school buses amid high levels of substandard academic performance in the district.

More

Biden-Harris admin recalls hundreds of electric school buses that could burn

Finally, as that infamous US election nears, at long last some are waking up to Uncle Scam’s enormous, unrepayable debts.

As nervous investors worry about the presidential election, public debt is a top concern financial advisors say

Published Fri, Oct 18 2024 3:27 PM EDT

Many investors worry about how the outcome of the presidential election will impact their investments.

But there’s another risk financial advisors are focused on — public debt, according to a new survey from Natixis Investment Managers.

Most U.S. advisors — 68% — rank public debt as the top economic risk, while 64% of advisors worldwide said the same, according to the survey of 2,700 respondents in 20 countries, including 300 in the U.S.

“No matter who wins the election, they’re convinced public debt is going to continue to go up,” said Dave Goodsell, executive director of the Natixis Center for Investor Insight.

The term public debt is used interchangeably by the U.S. Treasury with national debt and federal debt.

The government has borrowed to pay expenses over time, comparable to how an individual might use a credit card and not pay off the full balance each month. The U.S. national debt is now more than $35 trillion and growing.

The next U.S. president and Congress will inherit that government spending dilemma, as well as looming trust fund depletion dates for Social Security and Medicare.

More individuals now believe they are on their own when it comes to funding their retirements, the Natixis survey have shown, according to Goodsell.

Experts say there are certain moves individual investors can make to limit the financial exposure they have to those broader risks.

“You cannot control what Congress is doing, but you can control how you plan, how you save, invest and react to the news,” said Marguerita Cheng, a certified financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland. Cheng is also a member of the CNBC FA Council.

----As the equity market has reached new all-time highs, investors have ratcheted up their expectations for higher returns.

The Natixis research found that investors expect returns of 15.6% above inflation, while financial professionals say about 7.1% above inflation is more realistic, Goodsell said.

More

Ahead of U.S. election, financial advisors say public debt is top concern (cnbc.com)

Putin says BRICS, not the West, will drive global economic growth

Published Sat, Oct 19 20247:08 AM EDT

The BRICS group will generate most of the global economic growth in the coming years thanks to its size and relatively fast growth compared with that of developed Western nations, Russian President Vladimir Putin said on Friday.

Putin hopes to build up BRICS - which has expanded to include Egypt, Ethiopia, Iran and the United Arab Emirates as well as Brazil, Russia, India, China and South Africa - as a powerful counterweight to the West in global politics and trade.

The Kremlin leader is due to host a BRICS summit in the Russian city of Kazan on Oct. 22-24.

“The countries in our association are essentially the drivers of global economic growth. In the foreseeable future, BRICS will generate the main increase in global GDP,” Putin told officials and businessmen at BRICS business forum in Moscow.

“The economic growth of BRICS members will increasingly depend less on external influence or interference. This is essentially economic sovereignty,” Putin added.

Next week’s summit is being presented by Moscow as evidence that Western efforts to isolate Russia over its actions in Ukraine have failed.

Russia wants other countries to work with it to overhaul the global financial system and end the dominance of the U.S. dollar.

China, India and the UAE confirmed on Friday that their leaders would attend the summit in Kazan.

‘Doors are open’

Putin said 30 countries around the world had expressed interest in cooperation with the BRICS grouping and that next week’s summit would consider possible options for the group’s further enlargement.

Cuba plunged into a countrywide blackout after the collapse of one of its major power plants Friday.

“The doors are open, we are not barring anyone,” Putin told reporters from BRICS countries .

Putin cited some of the initiatives that Russia has previously outlined ahead of the summit, including a joint cross-border payments system and a reinsurance company.

Putin said that group members were working on a SWIFT-like financial messaging system immune to Western sanctions and the use of national digital currencies in financing investment projects with high growth potential inside and outside BRICS.

He stressed that Russia’s financial initiatives for the summit implied the extensive use of national currencies, while talk of creating a single currency for the BRICS grouping was “premature”.

He called on the New Development Bank, the BRICS’ only functioning multilateral development institution, to invest in technology and infrastructure across the countries of the Global South.

More

Putin says BRICS, not the West, will drive global economic growth

BRICS Pay.

BRICS Pay (brics-pay.com)

There can be few fields of human endeavor in which history counts for so little as in the world of finance.Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of the those who do not have insight to appreciate the incredible wonders of the present.

John Kenneth Galbraith

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.

Germany’s auto giants are struggling to stay relevant

Published Fri, Oct 18 2024 3:38 AM EDT Updated Fri, Oct 18 2024 4:36 AM EDT

Germany’s automotive sector, long recognized for producing reliable and innovative internal combustion engine (ICE) cars, is struggling to preserve its relevance in the age of electrification.

Major domestic manufacturers such as VolkswagenMercedes-Benz Group and BMW have issued profit warnings in recent weeks, citing economic weakness and sluggish demand in China, the world’s largest car market.

The headwinds, while not unique to Europe’s largest economy, come on top of the specter of historic job cuts and possible German plant closures at Volkswagen, an abrupt end to Germany’s electric car subsidy program late last year and Berlin’s recent failure to prevent fellow European Union member states from voting in favor of EU tariffs on Chinese electric vehicles (EVs).

The latter appeared to hint at the Germany’s waning influence over regional policy — a likely unthinkable notion only a few years ago.

This storm of issues has stoked concerns that the high-quality ‘made in Germany’ moniker may be losing its luster in the shift away from ICE vehicles.

“I believe the German quality label generally still holds, but that’s not enough as the world of automotive is changing rapidly,” Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, told CNBC by email.

“It’s always a mix of product, quality and price. And quality is also associated with the past, while we’re in a full-scale make-over of model ranges now. So, customers are looking at new concepts anyway,” Luman said.

“The question is whether German car makers manage to adjust their product portfolios, change their organizations, and ramp up productivity quickly enough to preserve the status and relevance they had for decades.”

Luman said the industry’s transition to electrification means it is going to be increasingly important for German automakers to scale tech-rich supplies for EVs, particularly for batteries – noting that this hasn’t yet been developed in Berlin.

VW, BMW, MBG: Germany’s top car brands are struggling in the EV era (cnbc.com)

Spirit AeroSystems to furlough 700 workers as Boeing machinist strike continues

Published Fri, Oct 18 2024 8:55 AM EDT Updated Fri, Oct 18 2024 9:55 AM EDT

Boeing supplier Spirit AeroSystems will furlough some 700 workers as a strike by machinists at the plane maker enters its sixth week, a spokesman for the supplier said Friday.

More than 32,000 Boeing workers walked off the job Sept. 13 after overwhelmingly rejecting a tentative labor deal with Boeing, deepening the aircraft producer’s financial strain and handing a new challenge to CEO Kelly Ortberg, who took the reins just over two months ago.

The temporary furloughs account for about 5% of Spirit’s U.S. workforce, according to its latest annual filing.

The temporary furloughs will affect employees at Spirit’s largest facilities, in Wichita, Kansas, and account for about 5% of Spirit’s U.S. workforce, according to its latest annual filing. Meanwhile, Boeing and its machinists’ union remain at an impasse, and Spirit is considering deeper cuts.

“If the strike continues beyond November, we will have to implement layoffs and additional furloughs,” Spirit spokesman Joe Buccino told CNBC on Friday.

Ortberg, who faces investors in his first earnings call next Wednesday, last week announced a series of drastic measures meant to slash costs as the company’s losses mount, including cutting the workforce by 10%, or about 17,000 people. Boeing is also ending 767 commercial production when orders are fulfilled in 2027 and said its long-delayed 777X wide-body jet won’t debut until 2026, pushing it back yet another year.

Boeing is in the process of raising debt or equity to increase liquidity.

More

Spirit AeroSystems to furlough 700 workers as Boeing strike continues (cnbc.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

Did CDC Officials Mislead The Public About COVID Vaccine Efficacy? Rep. Massie Says "Yes"

Friday, Oct 18, 2024 - 10:00 PM

When Congressman Thomas Massie (R-KY) contacted officials from the Centers for Disease Control and Prevention (CDC) in December of 2020, he wanted to know if taking the newly released Covid vaccine would benefit him, since he’d already contracted the illness.

After reading the scientific studies himself, and seeing no benefit, Massie contacted the CDC to learn why they were putting out incorrect information which claimed that their studies showed that the Covid vaccine does provide a benefit to those who have previously had Covid.

Massie says those secretly recorded conversations with CDC officials in December of 2020 show that they were lying about their Pfizer Covid vaccine trial data.

In those phone calls, Massie says CDC officials were caught deliberately downplaying the effectiveness of natural immunity while pushing for Covid-19 vaccinations for everyone, regardless of prior infection.

According to Attkisson, in the recordings, CDC officials thanked Massie for finding the mistake in their studies and admitted that the claims of vaccine efficacy for the previously infected wasn’t true, yet they pushed back on correcting the falsehood, saying it would confuse the public.

Attkisson says, the very next day, those same officials who had admitted their mistake regarding the vaccine’s effectiveness to Massie nevertheless conducted a webinar for doctors that repeated the same misinformation.

In the recording, Massie expresses concern that continuing to encourage previously infected people with natural immunity to get the vaccine, which was in short supply, could prevent others who were at greater risk from Covid from having access to the vaccine.

In a call with CDC’s Washington D.C. Director Anstis Brand, Massie says, “If there’s a “they” who is refusing to fix something that is factually and provably wrong, I want to know who “they” is. Because this is going to result and is already resulting in misallocation of the vaccine.”

Brand tells him that she’ll have to look into it and get back to him.

In another call with the CDC’s Dr. Sara Oliver, Massie points out the error in which the study erroneously claims that the vaccine is efficacious for those with prior infection and he asks to get it corrected.

Dr. Oliver says admits that Massie is correct but says that the CDC still is recommending that previously infected individuals get the vaccine, saying “We wouldn’t want to put out that if you’ve had Covid before, you shouldn’t get the vaccine.”

Massie’s recorded calls with CDC officials clearly show the agency was pushing vaccination even for those who likely didn’t need it due to natural immunity.

These revelations appear to vindicate those who expressed worries that U.S health officials were being driven by an agenda to promote vaccines rather than by honest science.

Did CDC Officials Mislead The Public About COVID Vaccine Efficacy? Rep. Massie Says "Yes" | ZeroHedge

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.

China builds record-breaking magnet — but it comes with a cost

The resistive magnet required a significant amount of energy to produce a field of 42.02 tesla.

18 October 2024

China is now home to the world’s most powerful resistive magnet, which produced a magnetic field that was more than 800,000 times stronger than Earth’s.

On 22 September, the magnet, at the Steady High Magnetic Field Facility (SHMFF) at the Chinese Academy of Science’s Hefei Institutes of Physical Science, sustained a steady magnetic field of 42.02 tesla. This milestone narrowly surpasses the 41.4-tesla record set in 2017 by a resistive magnet at the US National High Magnetic Field Laboratory (NHMFL) in Tallahassee, Florida. Resistive magnets are made of coiled metal wires and are widely used in magnet facilities across the world.

China’s record-breaker lays the groundwork for building reliable magnets that can sustain ever-stronger magnetic fields, which would help researchers to discover surprising new physics, says Joachim Wosnitza, a physicist at the Dresden High Magnetic Field Laboratory in Germany.

The resistive magnet — which is open to international users — is the country’s second major contribution to the global quest to produce ever-higher magnetic fields. In 2022, the SHMFF’s hybrid magnet, which combines a resistive magnet with a superconducting one, produced a field of 45.22 tesla, making it the most powerful working steady-state magnet in the world.

Research tool

High-field magnets are handy tools for uncovering hidden properties of advanced materials, such as superconductors — materials that, under very low temperatures, carry electric current without producing waste heat. High fields also offer the chance to glimpse entirely new physical phenomena, says Marc-Henri Julien, a condensed-matter physicist at the National Laboratory for Intense Magnetic Fields in Grenoble, France. “You can create or manipulate new states of matter,” says Julien.

High fields are also useful for experiments that rely on very sensitive measurements, because they boost the resolution and make it easier to see faint phenomena, says Alexander Eaton, a condensed-matter physicist at the University of Cambridge, UK. “Every extra tesla is exponentially better than the last,” he says.

Guangli Kuang, a physicist who specializes in high magnetic fields at the SHMFF, says the team spent years modifying the magnet to hit the latest record. “It wasn’t easy to achieve,” he says.

Reliable but costly

Resistive magnets are an older technology, but they can sustain high magnetic fields for longer periods than can their newer hybrid and fully superconducting counterparts, says Wosnitza. Their magnetic fields can also be ramped up much quicker, making them versatile experimental tools. “You can just twist a knob and go from zero tesla to high fields within minutes,” he says.

The big drawback of resistive magnets is the amount of power they consume, making them costly, says Eaton. For instance, the SHMFF’s resistive magnet drew 32.3 megawatts of electricity to produce its record-breaking field. “You’ve got to have a very good science case to justify that resource,” says Eaton.

That challenge is driving the race to develop hybrid and fully superconducting magnets that can generate high fields using less power. In 2019, NHMFL researchers built a miniature, proof-of-concept superconducting magnet that briefly sustained a 45.5-tesla field , and are currently developing a larger 40-tesla superconducting magnet that can be used for experiments. The team at the SHMFF is building a 55-tesla hybrid one. Although these newer magnets are expected to be cheaper to run than their resistive counterparts, they come with their own hurdles: they are more expensive to build and require complicated cooling systems, says engineer Mark Bird, a co-leader of the NHMFL’s magnet science and technology division. “The technology is still being developed, and the costs are not clear yet,” says Bird.

doi: https://doi.org/10.1038/d41586-024-03382-6

China builds record-breaking magnet — but it comes with a cost (nature.com)

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

World Debt Clocks (usdebtclock.org)

“When it becomes serious, you have to lie.”

Jean-Claude Juncker. Failed former Luxembourg P.M., serial liar, ex-president of the European Commission. Scotch connoisseur.

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