Baltic Dry Index. 1402 +20 Brent Crude 71.57
Spot Gold 2785 US 2 Year Yield 4.11 -0.01
Ford to City: Drop Dead.
New York Daily News Headline October 30, 1975.
“I am prepared to veto any bill that has as its purpose a federal bailout of New York City to prevent a default.” President Ford, Oct. 29, 1975.
In the UK, it is Budget Day, the UK’s Chancellor of the Exchequer’s big day to make mistakes. But with much of the proposed budget already leaked, how much more damage can Labour’s far left team of meddlers and spenders actually do to the UK economy.
Over in the Asian stock casinos another pause, even as Wall Street now seems to be heavily betting on a Donald Trump win next week. I have my doubts, but I wouldn’t wish either candidate to win.
Up first, the latest casino news from Asia.
Asia-Pacific markets mostly fall as investors
assess Australia inflation data
Updated Wed, Oct 30 2024 1:24 AM EDT
Asia-Pacific markets were mostly down
Wednesday after key Wall Street benchmarks rose overnight, with the Nasdaq Composite closing at
a record high as tech stocks gained.
Traders in Asia assessed consumer price data out of Australia, with headline
inflation for the September quarter rising 2.8% year on year, the lowest since
the first quarter of 2021. Economists polled by Reuters had expected it to be
at 2.9%.
Australia’s S&P/ASX 200 was trading
0.92% lower.
China is considering approving next week
over 10 trillion yuan ($1.4 trillion) in extra debt to stimulate its economy
over the next few years, Reuters reported.
The fiscal package is expected to be increased if Donald Trump wins the
upcoming U.S. presidential election, the report added.
Hong Kong’s Hang Seng index fell 1.86%,
while China’s CSI 300 was down 1.11%.
Japan’s Nikkei 225 rose 1.10%, while
the Topix advanced 0.88%.
The Bank of Japan kicked off its two-day
policy meeting on Wednesday, with economists polled by Reuters
expecting the central bank to keep interest rates steady at 0.25%.
South Korea’s Kospi fell 1.05%, while the
small-cap Kosdaq was down 0.47%.
In the U.S., the tech-heavy Nasdaq rose
0.78% to close at a record high of 18,712.75.
The S&P 500 added 0.16% to
close at 5,832.92, while the Dow
Jones Industrial Average fell 154.52 points, or 0.36%, to end at
42,233.05.
Asia markets live: Asia-Pacific markets mostly fall
S&P 500 futures rise after Alphabet posts
earnings beat: Live updates
Updated Wed, Oct 30 2024 8:40 PM EDT
S&P 500 futures rose on
Tuesday night, as traders prepared for additional reports from major tech
companies and looked ahead to a key reading on the economy’s growth.
Futures tied to the broad market index
added 0.3%, while Nasdaq 100
futures climbed 0.3%. Dow
futures gained 64 points, or 0.1%.
Alphabet kicked
off a major week for megacap tech earnings. The Google parent exceeded
analysts’ expectations as the company saw strong
quarterly revenue growth from its cloud business. Shares surged 5% in
extended trading.
Chipmaker AMD slid 8% in after-hours
action, as its fourth-quarter revenue
guidance failed to impress investors.
Tech titans Meta Platforms and Microsoft are set to report
on Wednesday, while Apple and Amazon are due Thursday.
On the economic front, investors are
anticipating the first
preliminary reading of the gross domestic product out on Wednesday.
The report is expected to show that GDP grew at a 3.1% annualized pace in the
third quarter, according to the Dow Jones consensus forecast. That would be
just 0.1 percentage point above the previous period if
accurate, and would be the 10th straight quarter of expansion. It’s also
expected to show inflation moving closer to or coming out below the Federal
Reserve’s 2% inflation target.
In anticipation of the Big Tech earnings
releases, investors drove the Nasdaq
Composite to a fresh record during Tuesday’s trading session. The
Nasdaq advanced 0.78%, while the S&P 500 added 0.16%. The
30-stock Dow underperformed,
shedding 0.36%.
More
Stock market today: Live updates
In other news, EU v China, round one? This could easily turn nasty and fast.
China ‘does not agree or accept’ the EU’s
EV tariffs, says negotiations are still ongoing
Published Tue, Oct 29 2024 10:44 PM EDT
China’s commerce ministry said it “does
not accept” tariffs imposed by the European Union on Chinese electric vehicles,
after the bloc increased tariffs on Chinese EVs to as high as
45.3% on Wednesday.
The extra tariffs will range from 7.8%
for Tesla to 35.3%
for SAIC Motor, and
stack on top of the 10% standard import duty for cars to the EU.
In a statement, the ministry said that “China has
repeatedly pointed out that the EU’s anti-subsidy investigation on Chinese
electric vehicles has many unreasonable and non-compliant aspects, and is a
protectionist practice of ‘unfair competition’,” according to a Google
translation.
The EU launched an “anti-subsidy” investigation into Chinese EVs last year, alleging
they were illegally subsidized and thereby “causes or threatens to cause
economic injury” to the bloc’s EV industry.
China has already filed a lawsuit under
the World Trade Organization dispute settlement mechanism.
The commerce ministry said “China will continue to take all necessary measures
to resolutely safeguard the legitimate rights and interests of Chinese
companies.”
China’s commerce ministry also highlighted
the EU has indicated it will continue to negotiate with China, adding that both
sides are conducting a new round of consultations.
It also expressed hope that the EU will
“work with China in a constructive manner..., reach a solution acceptable to
both sides as soon as possible, and avoid escalation of trade frictions.”
On Oct. 25, Reuters reported the two sides were looking at
possible minimum price commitments from Chinese producers or investments in
Europe as an alternative to tariffs.
Shares of Chinese EV makers were mostly
lower in morning trading Wednesday, with heavyweight BYD trading close to the
flatline while Nio and Xpeng lost 3.07% and 0.11%
respectively.
Ken Peng, head of Asia investment strategy
at Citi Wealth, told CNBC that “all considered, this is unfortunate, but not
really substantial in scale.”
Peng added that the level of tariffs
appears “moderate,” but pointed out that both U.S. and EU tariffs will force
Chinese producers to diversify supply chains and increase capacity outside of
China.
Should China retaliate, he said, he
expects any tariffs to focus on agricultural and luxury imports from Europe.
China 'does not agree or accept' the EU's EV tariffs, says negotiations are still ongoing
China’s Xiaomi delivers 20,000 EVs in October,
just months after launching its first car
Published Wed, Oct 30 2024 12:07 AM EDT
BEIJING — China’s Xiaomi said Tuesday that
it had
delivered more than 20,000 SU7 EVs in October as it ramps up
production for its electric car venture in a fiercely competitive market.
The Chinese company, which is largely
known for its smartphones and home appliances, reiterated plans to deliver
100,000 SU7 vehicles by the end of November. Xiaomi
first revealed plans to make cars in 2021 and began building a
dedicated manufacturing plant the same year.
The company released the basic version of
the SU7, its first car, in late March for
about $4,000 less than Tesla’s
cheapest car — Model 3 — in China at the time. Tesla subsequently cut the car’s
price by about $2,000. Xiaomi has delivered more than 75,000 SU7 cars to date,
including October’s figures.
Chinese rivals Xpeng and Nio took about six years
to produce
100,000 electric cars, while it took Tesla 12 years.
While Xpeng delivered a monthly record of
more than 20,000 cars in September, with about half the sales owed to its newly
launched, lower-cost brand Mona, Nio has struggled to keep monthly deliveries
above 20,000 cars.
Zeekr, an electric car brand
founded by automaker Geely, has claimed it produced more
than 100,000 vehicles in 1.5 years. It
delivered a record 21,333 cars in September.
Data on other Chinese electric car
companies’ deliveries for October is expected Friday.
“News of 20k deliveries in October
confirms that [Xiaomi] is going to be a force to reckon with in the world’s
largest EV market,” said Brian Tycangco, an analyst at Stansberry Research.
He said Xiaomi’s electric car gross profit
margins in August were similar to Xpeng’s that month, and have likely improved
since, given ramped up production.
Xiaomi on Tuesday also announced it was
taking preorders for the high-end sports version, SU7 Ultra, starting at
814,900 yuan ($114,304), ahead of a product release in March 2025. The company
claimed that within 10 minutes, it received more than 3,600 preorders, each
requiring a 10,000 yuan deposit.
More
Chinese smartphone company Xiaomi delivers 20,000 SU7 EVs in October
In UK budget guessing, are all bets off?
Why ‘sin taxes’ could play a significant role in
Britain’s high-stakes budget
Published Tue, Oct 29 2024 7:27 AM EDT Updated
Tue, Oct 29 2024 8:27 AM EDT
Britain’s Labour government appears poised
to raise “sin taxes” in its highly anticipated October budget as it seeks to
cash-in on lucrative industries to bolster Treasury revenues.
U.K. Finance Minister Rachel Reeves is
scheduled to deliver the government’s budget on Wednesday afternoon, bringing
an end to months of speculation about how hard Labour’s measures will hit “working
people” and the extent to which the government intends to borrow to support
long-term investment.
Prime Minister Keir Starmer has warned it’s time for the world’s sixth-largest economy
to “embrace the harsh light of fiscal reality” and run toward “tough decisions”
to avoid getting stuck on a downward trajectory.
Among a litany of measures, including
a major
change to the government’s fiscal rules, Reeves is reported to be
considering a sin tax raid.
These levies, which are regularly hiked in
government budgets, commonly refer to taxes on harmful goods such as alcohol
and cigarettes, as well as the gambling sector.
Analysts say that while sin taxes will
likely play a significant role in the budget by raising billions of pounds in
revenue, they alone will not be able to plug what has been described as a “black
hole” in the country’s public finances.
“Sin stocks are a good place to start. One
would assume that they have already been taxed into oblivion but there is
always the opportunity to rinse [?] them a little bit more,” Michael Field, Europe
market strategist at Morningstar, told CNBC via video call.
“I think the government might view them as
low-hanging fruit in terms of no-one coming to defend them, but you do have to
be wary of killing the golden goose at the same time — and the ramifications
for a black market if indeed the industry becomes not profitable to operate in
a law-abiding manner.”
What’s on the table?
One of the sin industries that may be in
Labour’s crosshairs is the gambling sector. The Guardian reported on Oct. 11, citing unnamed sources familiar
with the discussions, that the Treasury is considering fresh levies that could
raise between £900 million ($1.17 billion) and £3 billion.
Shares of London-listed gambling stocks
fell sharply on the news. Britain’s Entain,
which owns brands such as Ladbrokes and Coral, closed around 8% lower on Oct.
14, while William Hill-owner Evoke fell over
14%.
More
Why sin taxes could play a significant role in Britain's budget
Finally, today, Boeing. The Miracle on Wall Street, with a little arm twisting, cajoling, intimidation and a great deal of gambling on Boeing’s future.
Boeing Raises $21 Billion in Capital to Repair
Balance Sheet
- Planemaker
sells 112.5 million common shares for $143 each
- Sells
$5 billion of depositary shares, according to statement
By Julie
Johnsson, Esha Dey, and Bailey
Lipschultz
October 29, 2024 at 5:17 AM GMT Updated on October 29, 2024 at 8:10 PM GM
Boeing Co. raised
$21.1 billion in an expanded share sale, one of the largest ever by a public
company, shoring up its balance sheet as it seeks to stave off a potential
credit rating downgrade to junk.
The US planemaker sold 112.5 million
common shares for $143 each, according to a statement.
The stock was priced at a discount of about 7.7% to the Friday closing price of
$155.01 apiece. Boeing also sold $5 billion of depositary shares representing a
stake in mandatory convertible preferred stock.
More, subscription required.
Boeing (BA) Raises $21 Billion in Capital Hike to Boost Liquidity - Bloomberg
Global Inflation/Stagflation/Recession Watch.
Given
our Magic Money Tree central banksters and our spendthrift politicians, Is tinflation
now needs an entire section of its own.
Is the
EU auto industry about to fade out?
Italy
to cut automotive industry support by around $5 billion
28
October 2024
ROME
(Reuters) -Italian Prime Minister Giorgia Meloni plans to cut by some 4.6
billion euros ($5 billion) the funds set aside to support the country's
automotive industry between 2025 and 2030, the text of next year's budget
showed, triggering widespread criticism.
The
move comes amid a global slowdown in sales of electric vehicles (EVs), partly
due to diverging policies on green incentives, which has forced automakers
worldwide including Fiat-maker Stellantis to adjust their plans.
The
cut "is an unacceptable surprise that blatantly contradicts the important
work that the government is doing in Europe in favour of the sector to improve
regulation," business lobby group ANFIA said in a statement on Monday.
"With
so many ongoing issues, including transition to electrification, soft market
demand in Europe and declining production in Italy, this is not supporting
confidence," its Managing Director Gianmarco Giorda said.
In
2022, the government led by Meloni's predecessor Mario Draghi earmarked 8.7
billion euros through 2030 to support its carmaking sector.
But
the budget unveiled this month by Economy Minister Giancarlo Giorgetti shows
that the government wants to divert 4.6 billion euros out of the 5.8 billion
euros planned for the 2025-2030 period to fund other measures.
Under
the bill, to be approved by both houses of parliament by the end of December
and therefore still subject to changes, the bulk of the cuts are concentrated
between 2028 and 2030, a period in which they amount to around 2.4 billion
euros.
More
Italy to cut automotive industry support by around $5 billion
Carmaker
Audi plans to halt production at Brussels plant in February
29
October 2024
German
carmaker Audi plans to end car production at its Brussels plant at the end of
February, the company told trade unions and labour representatives on Tuesday.
Layoffs
are not planned until the end of the year, the company said. The factory
employs around 3,000 people and produces only a single Audi model, the Q8
e-tron electric SUV.
Audi
has been considering closing the Brussels plant for some time and has been
consulting with the works councils and trade unions for months, as required by
law in Belgium.
Company
management plans to complete this information and consultation process in the
next two weeks.
Sales
of the Q8 e-tron SUV have been shrinking, and Audi executives have said that
the factory has very high logistics costs because few suppliers are located
nearby.
The
factory's location between a residential area, railroad tracks and a motorway
makes expansion difficult, according to Audi.
Audi's
parent company, the Volkswagen Group, is facing a deep crisis at the flagship
Volkswagen brand and has rejected the possibility of launching the production
of a new vehicle model in Brussels.
Talks
are still under way with a potential investor, according to Audi. The company
had already spoken to more than 20 potential investors from the automotive
industry, without any prospect of a viable concept for the site and the
employees who work there.
Carmaker Audi plans to halt production at Brussels plant in February
Covid-19 Corner
This section will continue until it becomes unneeded.
Australia is to prepare for the next “Covid.”
Urgent
‘trust’ warning in Covid report
29
October 2024
The
findings have been released into the final report into the large-scale Covid-19
Response Inquiry, which warned the government that it needs to “rebuild trust”
with the public, with “many of the measures taken during Covid-19 are unlikely
to be accepted by the population again”.
While
Australians were more likely to follow government directives at the beginning
on the pandemic, trust increasingly “eroded” as the pandemic continued.
The
report, co-authored by chair and former director general of the NSW health
department Robyn Kruk, epidemiologist professor Catherine Bennett, and health
economist Angela Jackson, found this was, in part, because people weren’t given
reasons behind the advice underpinning restrictions.
“This
fed the perception that the government did not trust the public to understand
or interpret the information correctly and contributed to the decrease in
trust,” it said.
Submissions
made to the inquiry also found people found restrictive measures became
“increasingly inappropriate” and were too “heavy-handed and controlling.”
In
response, the report recommended that a future public health emergency response
should consider “fairness and proportionality when implementing and enforcing
restrictive measures”.
Health
Minister Mark Butler said the report was “thorough and measured” and vowed to
implement its recommendations.
----Mr
Butler acknowledged Australia’s pandemic plans were “grossly inadequate” which
limited Australia’s effectiveness and forced leaders to “build the plane while
it was flying”.
The
long-term effect of lowered trust in vaccines has also meant jab rates for many
diseases including Covid, have fallen since the pandemic, this in-turn as
increased the public’s risk of “co-occurring outbreaks that would overrun the
healthcare system.”
As
an immediate response, the report urged federal and state Health Ministers to
implement a “national strategy” to address the “broad decline in Covid-19
vaccination” especially for priority cohorts.
The
response would also include targeted deadlines, and a push to lift early
childhood vaccination rates for communicable diseases on pre-pandemic levels.
The
report also firmly backed the creation of an Australian Centre for Disease
Control (CDC), which has currently been established on an interim basis.
On
Wednesday, the government also announced it would commit $251.7m to deliver a
Canberra-based CDC, which is expected to be launched on January 1, 2026,
pending legislation.
The
report said the independent agency needs to become a “become trusted and
authoritative on risk assessment and communication,” and become a key source of
national communicable disease data.
It
would also conduct biennial reviews of Australia’s overall pandemic
preparedness in partnership with the National Emergency Management Agency.
The
broad inquiry, which was announced by Anthony Albanese in September 2023, was
tasked with considering the health and non-health responses to the pandemic,
however controversially did not require state and territory leaders to give
evidence.
Health
Minister Mark Butler said the CDC will ensure Australia is “prepared” for the
next pandemic.
“As
the Covid-19 Response Inquiry highlighted Australia wasn’t prepared for a
pandemic,” he said.
“Because
of the lack of planning, Australia’s pandemic response to Covid was slow,
confused and lacked authority.
“The
establishment of the Australian CDC will ensure we are prepared next time.”
Urgent ‘trust’ warning in Covid report
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.
Graphene-infused
3D-printed concrete may slash carbon emissions by 31%
October
28, 2024
Researchers
at the University of Virginia have developed a new 3D-printed concrete material
for the construction of sustainable buildings.
This
innovative material, infused with graphene, offers a powerful combination of
strength, durability, and eco-friendliness.
They
have created a new type of concrete that is easier to print. This new material
is a composite made from limestone, calcined clay cement (LC2), and graphene.
“Our
goal was to design a printable concrete that performs better and is more
eco-friendly,” said Osman Ozbulut, a professor at UVA’s Department of Civil and
Environmental Engineering.
Ozbulut
added: “The addition of graphene to LC2 cement offers a unique opportunity to
lower carbon emissions while maintaining the strength and flexibility required
for 3D printed construction.”
Concrete
that cuts carbon emissions
The
addition of graphene to the concrete mixture gives it several advantages.
Graphene is a strong, flexible material that can improve the strength and
durability of the concrete.
It
also makes the concrete more resistant to cracking and other forms of damage.
In addition, graphene can help to reduce the amount of water needed to mix the
concrete, which can lead to significant savings in energy and resources.
The
team investigated the graphene-enhanced LC2 concrete’s flow, strength, and
environmental effects.
The
results are promising, indicating that this graphene-enhanced concrete can
significantly outperform traditional 3D-printed concrete.
The
life cycle assessment determined that the new concrete holds the potential to
reduce greenhouse gas emissions by approximately 31% compared to other
printable mixtures.
“Being
able to see the full environmental footprint of this new concrete was
important,” explained Zhangfan Jiang.
“It
not only exhibits better mechanical performance but also has a lower
environmental impact, making 3D concrete construction technology more sustainable
compared to traditional 3D printing methods with higher carbon emissions.”
More
Graphene-infused
3D-printed concrete may slash carbon emissions by 31%
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
“At this winter season of the year, Chancellor, ... it is more than usually desirable that we should make some slight provision for the Poor and Pensioners, who suffer greatly at the present time. Many thousands are in want of common necessaries; hundreds of thousands are in want of common comforts like heat, Ma’am."
"Are there no prisons?"
"Plenty of prisons..."
"And the Union workhouses." demanded the Chancellor. "Are they
still in operation?"
"Both very busy, Ma’am."
"Those who are badly off must go there."
"Many can't go there; and many would rather die."
"If they would rather die," said the UK Chancellor , "they had better do it, and decrease the surplus population."
With apologies to Charles Dickens.
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