Baltic
Dry Index. 1941 -37 Brent Crude 77.49
Spot Gold 2665 US 2 Year Yield 3.70 +0.07
When the Liberals said they were going to create a million new jobs, I didn't think they were all going to be tax collectors.
Harry S. Truman.
For a second day in a row, we open with something other than stock casino news. The US east coast port strike is over for now, but at what inflationary cost to US consumers? Will it resume in mid-January once the US election is over?
Port
strike ends as workers agree to tentative deal on wages and contract extension
Published
Thu, Oct 3 2024 6:43 PM EDT
A
major union for U.S. dockworkers and the United States Maritime Alliance agreed
on Thursday to a tentative deal on wages and have extended their existing
contract through Jan. 15 to provide time to negotiate a new contract.
The
move ends a strike that had snarled East Coast and Gulf Coast ports since the
beginning of the week and threatened U.S. supply of fruits,
automobiles, and other
goods.
“The
International Longshoremen’s Association and the United States Maritime
Alliance, Ltd. have reached a tentative agreement on wages and have agreed to
extend the Master Contract until January 15, 2025 to return to the bargaining
table to negotiate all other outstanding issues,” The International
Longshoremen’s Association and the United States Maritime Alliance said in
a joint statement.
During
the week, the strike had already started to stress
the U.S. supply chain. Thousands of containers had been dumped at the wrong
ports, and billions of dollars in goods were anchored offshore because ports
were not operational, CNBC
previously reported. Shipping
costs had already started to rise.
The strike was
the first
by the ILA since 1977, and it impacted operations at 14 different ports.
About 50,000
of the union’s 85,000 members were on strike this week. In a statement
on Tuesday, ILA President Harold Daggett said the union was asking for an increase of $5 per
hour for each year of the six-year contract.
ILU
wages will increase 61.5% over six years under the tentative agreement, sources
told CNBC’s Lori Ann LaRocco. A central conflict over
port automation is still under negotiation.
Port strike ends: Workers agree to tentative deal on wages and contract extension (cnbc.com)
Now back to those stock casinos trading in the exosphere, waiting on today’s US jobs numbers and heading for a comeuppance.
Hong
Kong markets resume rally as investors weigh China stimulus, oil gains
Published
Thu, Oct 3 2024 7:50 PM EDT
SINGAPORE
— Asia-Pacific markets traded mixed on Friday following
losses on Wall Street, with concerns over Middle East tensions keeping
investors on edge in the run up to September’s U.S. payrolls report.
Hong
Kong’s Hang Seng index is
up over 2%, resuming a rally after slipping 1% in its first hour of trade.
Australia’s S&P/ASX 200 lost 0.46%.
Japan’s Nikkei 225 added
0.34%, while the broad-based Topix inched up 0.41%. South Korea’s Kospi was trading 0.19%
higher, while the Kosdaq rose 0.74%.
Markets
in mainland China will reopen on Oct. 8. Chinese stocks had been on a tear
after authorities announced a slew of support measures last week.
October
trading has had a shaky start as rising tensions in the Middle East weigh on
investor sentiment. Following a decline in stocks on Tuesday due to Iran’s
missile strike on Israel, investors are bracing for more unpredictability as
Israel begins
a ground operation in Lebanon.
U.S. crude futures rose around
5% overnight and ticked higher again on Friday morning on concerns
that Israel could strike Iran’s oil industry in retaliation for Tehran’s missile
attack this week. U.S. President Joe Biden on Thursday commented on a
possible Israel retaliation against Iran: “We’re discussing that. I think that
would be a little — anyway.”
The
Reserve Bank of India likely intervened in the non-deliverable forwards market
ahead of Friday’s opening of the local spot forex market to bolster the rupee,
which is hovering near its all-time low, Reuters reported. On Thursday, the India rupee slipped for a fourth straight session.
The
India rupee is currently trading at 83.96 against the dollar, and the Nifty 50
is 0.27% lower.
Overnight
in the U.S., the Dow Jones
Industrial Average slid 184.93 points, or 0.44%, to end at 42,011.59.
The S&P 500 lost
0.17% to close at 5,699.94. The Nasdaq Composite ended the
day off 0.04% at 17,918.48 as a rally of more than 3% in Nvidia capped downside
pressure.
Asia-Pacific stock market today updates (cnbc.com)
Finally, in other news, business isn’t booming in fast food USA. Is another hurricane headed to the southeast USA? Hopefully/probably not. Another EV fire. An oil price spike coming?
Pizza
Hut may close 127 restaurants after owner puts them up for sale
October
3, 2024
A
bankrupt Pizza Hut franchise is selling all 127 of its stores across five US states,
in the latest wave of possible closures for the popular fast food chain.
EYM
Pizza L.P. is selling its stores in Illinois, Indiana, Georgia, South
Carolina and Wisconsin as part of its plan to restructure.
It
comes after EYM Pizza shuttered more than 15 of its restaurants in Indiana and
Ohio.
The
company filed for Chapter 11 bankruptcy in the Eastern District of Texas in
July.
Pizza
Hut sued EYM Pizza for not meeting deadlines to pay royalties despite being
granted a forbearance period last year that ended in February of this year.
EYM
Pizza did not immediately respond to a Metro request for
comment and for a list of the exact locations that could close.
It
has engaged National Franchise Sales (NFS) to manage the sale of its Pizza Hut
empire. NFS is identifying qualified buyers and facilitating sales of the
restaurants to help creditors recover the most they can and to map a future for
the involved stores.
‘National
Franchise Sales is dedicated to navigating this challenging period with EYM
Pizza L.P. and its affiliates,’ stated Alan Gallup, who is lead advisor for the
NFS asset recovery team.
‘Our
goal is to ensure a smooth transition and maximize value for all parties
impacted by this process.’
EYM
Pizza had operated its Pizza Hut stores since 2015. It was founded in 2008 by
Eduardo Diaz, the former McDonald’s Mexico president.
It
is the latest in a string of restaurant bankruptcies in the US. The chains that
have filed for bankruptcy since April include Red Lobster, Rubio’s Coastal
Grill, Sticky’s, Tijuana Flats, Arby’s franchisee Miracle Restaurant Group and
One Table Restaurants.
As
of June, Pizza Hut operated more than 6,700 locations across the country, but
that represents a shrinking number. The chain shuttered 300 of its locations in
2020 and halted its expansion plans during the coronavirus pandemic.
Pizza Hut may close 127 restaurants after owner puts them up for sale (msn.com)
US
weather: America braces for 'major' superstorm as Hurricane Kirk strikes
October
3, 2024
America
is on alert for another ‘major’ superstorm as Hurricane Kirk gathers pace to
join the assault.
Just
days after Hurricane Helene left a 100-billion-dollar dent across eastern
states, the eleventh storm of the season is flexing its muscles in the
Atlantic.
Warm
tropical waters that fed Helene up to a Category-4 monster will fuel Kirk as it
hurtles along a similar collision course.
Weather
Channel meteorologist Robb Ellis said: “The tropics remain very active with a
new tropical storm that we are tracking.
“Kirk
is going to continue tracking to the west and is likely to become potentially
even a major hurricane over the next several days.
“The
next two names on the 2024 list are Lesley and Milton.”
Kirk
was last night churning north-westwards towards the east coast of America with
wind speeds of 75mph.
It
is expected to strengthen through the coming days thanks to warmer than average
Atlantic Ocean temperatures.
The
storm may veer north-eastwards this weekend, dodging a full impact with land,
according to the US National Hurricane Centre.
A
spokesman said: “Kirk is expected to continue strengthening in the coming days.
“Global
models forecast the deep-layer vertical wind shear to remain weak and warm sea
surface temperatures along the forecast track during the next few days.
“Kirk
is a large system and expected to grow larger as it moves northward, with
tropical-storm-force winds extending far from the centre.”
More
US weather: America braces for 'major' superstorm as Hurricane Kirk strikes (msn.com)
Florida
family home survives Hurricane Helene but burns to the ground after Tesla
catches fire
3
October 2024
A
family in Florida who survived Hurricane Helene say they narrowly managed to escape their home after
their Tesla car ignited in the middle of the night.
The
Hodges family, who live in Sarasota on the Siesta Key, had a few inches of
water flood their home as a result of Hurricane Helene.
Despite
coming out of the storm relatively unscathed, their lives were soon in danger
once again.
The
family had unplugged and elevated their Tesla Model X Plaid, which was parked
in their garage, after the flooding.
While
most of the household was asleep, two grandchildren heard popping sounds coming
from the garage at around midnight.
According
to Fox 13, the family described the electric vehicle as a “fireball” when they
went to check on the noise.
Footage
from the family’s home security cameras showed the electric car catching
fire in less than a minute after a blast occurring.
Lisa
Hodges told Reuters: “I’m just glad we’re alive, but everything I’ve…We’ve been
married 38 years and everything we put into that house.”
“We
built it for our family and it’s all gone,” she said.
While
the Sarasota County Fire Department ensured the family of nine and their two
dogs were all evacuated safely, it took only 15 minutes for the grandchildren’s
bedrooms to collapse.
This
was quickly followed by the rest of the house, which they had just moved into
following three years of renovation.
The
Hodges say they were not aware such a small amount of water could lead to their
car igniting and causing a fire.
This
incident comes days after officials warned that electric vehicles, including
cars, golf carts and scooters with lithium-ion batteries, could catch fire if
flooded with saltwater from Hurricane Helene.
Tom
Barth from the National Transportation Safety Board said: “If the saltwater is
able to bridge the gap between the positive and negative terminals of battery,
then it can cause a short circuit.”
Tesla
advises that if a battery has been submerged in saltwater, it should be treated
in the same way as an accident and inspected before trying to start it again.
U.S.
crude oil jumps as Biden comments on possible Israel retaliation against Iran
Published
Thu, Oct 3 2024 8:43 AM EDT
U.S.
crude oil prices rose about
5% on Thursday, posting a third consecutive session of gains on fears that
Israel could strike Iran’s oil industry in retaliation for Tehran’s
ballistic missile
attack this week.
President Joe Biden was asked by
reporters Thursday morning whether the U.S. would support an Israeli strike
on Iranian
oil facilities. Biden said: “We’re discussing that. I think that would be a
little – anyway.” The president added that “there’s nothing going to happen
today.”
CNBC
has reached out to the White House for comment.
Biden’s
comments were the catalyst that moved prices higher, said Daniel Ghali, senior
commodity strategist at TD Securities. “Geopolitical risks in the Middle East
are probably at their highest levels since the Gulf War,” Ghali told CNBC.
The U.S. benchmark surged 5.5%
earlier in the session to an intraday high of $73.99 per barrel. West Texas
Intermediate is ahead about 8% this week, on pace for its best weekly gain
since March 2023.
More
Crude oil prices today: WTI rises as Biden comments on Middle East risk (cnbc.com)
Goldman
Sachs says crude could spike by $20 on Iran oil shock
Published
Fri, Oct 4 2024 12:15 AM EDT
Oil
prices could shoot up $20 per barrel if Iranian production sees a hit resulting
from Israeli retaliation, according to Goldman Sachs.
U.S. crude futures rose around 5% on
Thursday and ticked higher again Friday morning on concerns that Israel could
strike Iran’s oil industry in retaliation for Tehran’s missile
attack this week.
It
is estimated that “if you were to see a sustained 1 million barrels per day
drop in Iranian production, that you would see a peak boost to oil prices next
year of around $20 per barrel,” Daan Struyven, Goldman Sachs’ co-head of global
commodities research, told CNBC’s “Squawk Box Asia” on Friday.
This
is under the assumption that oil cartel OPEC+ refrains from responding by
increasing production, Struyven said.
Should
key OPEC+ members such as Saudi Arabia and UAE offset some of the production
losses, oil markets could see a smaller boost of slightly less than $10 barrel,
he added.
Since
the Israel-Hamas armed conflict began on October 7 of last year, there had been
limited disruptions to the oil market, with prices remaining under pressure due
to increased production from the U.S. and sluggish demand from China.
However,
the sentiment could be shifting this week. U.S. crude oil prices just saw a
third consecutive session of gains after Iran launched a ballistic missile
attack on Israel, heightening tensions in the region. In recent days, industry
watchers have sounded the alarm, warning of a real threat to supply.
Iran,
which is a member of OPEC, is a key player in the global oil market. It
produces almost four million barrels of oil per day, and an estimated 4% of
the world’s supply could be at risk if Iran’s oil infrastructure becomes a
target for Israel as the latter considers a countermove.
Saul
Kavonic, senior energy analyst at MST Marquee, raised the potential of Iran’s
Kharg Island, which is responsible for 90% of the country’s crude exports,
becoming a target.
“The
bigger concern, “is this the kind of a much more imminent beginning of a wider
conflagration of the conflict which could impact transit through the Strait of
Hormuz,” he added.
If
Israel hits Iran’s oil industry, supply
disruptions in the Strait of Hormuz could become of concern, other
analysts echoed.
Iran
has previously threatened to disrupt flows through the Strait of
Hormuz if its oil sector is impacted.
More
Goldman Sachs says crude could spike by $20 on Iran oil shock (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.
Rice
Plunges the Most in 16 Years After India Eases Export Curbs
2
October 2024
(Bloomberg)
-- Rice prices tumbled the most in more than 16 years in Asia as concerns over
supply eased after India relaxed some export restrictions.
Thai
white rice 5% broken — an Asian benchmark — plunged about 11% to $509 a ton on
Wednesday, according to the Thai Rice Exporters Association. That was the
biggest decline in data compiled since May 2008, and extended a prolonged slide
in prices to the lowest level in more than 15 months.
Rice
rallied last year after top shipper India implemented export restrictions to
contain local prices ahead of an election. The Asian nation loosened some curbs
following recent national polls, a move that could help ease a domestic glut
and cut import costs for countries such as Indonesia and Senegal.
The
grain is vital to the diets of billions and contributes as much as 60% of the
total calorie intake for people in parts of Southeast Asia and Africa. While
the price of rice has cooled, the costs of other food staples are rising as
extreme weather threatens harvests around the world.
Rice Plunges the Most in 16 Years After India Eases Export Curbs (yahoo.com)
Firms
must ‘prepare’ for shocks to global financial markets, Bank warns
2
October 2024
lobal
financial markets are vulnerable to shocks following a “spike in volatility”
over the summer, the Bank of England has warned.
But
the UK banking system remains strong enough to weather tougher economic
conditions and support households and businesses, the Bank’s Financial Policy
Committee (FPC) said in its latest report.
Risks
to UK financial stability are broadly unchanged since the last report in June,
the FPC found.
But,
on a global scale, uncertainty about the geopolitical environment and the
outlook for the economy remains elevated.
The
review comes amid heightened tensions in the Middle East, with Israel this week
launching ground offensives in Lebanon.
The
FPC said there was a “short-lived spike in volatility and falls in equity
indices across global financial markets in early August”.
It
was driven by disappointing news including weaker-than-expected jobs data in
the US and financial results from artificial intelligence-focused technology
giants.
This
was followed by the release of positive macroeconomic news, which prompted the
majority of asset prices to quickly return to “stretched” levels afterwards.
“Markets
remain susceptible to a sharp correction, which could affect the cost and
availability of credit to UK households and businesses, with investors
sensitive to short-term developments in a challenging global risk environment,”
the report said.
Businesses and banks
need to be “prepared” for “severe but plausible stresses”, it warned.
Meanwhile,
the committee said mortgage-holders continue to be resilient to higher interest
rates, with home loan deals starting to come down in recent months.
But
it flagged that some lower-income households and renters remain under pressure.
About
a third of mortgage-holders have not yet refinanced on to higher interest
rates.
Furthermore,
while UK businesses have also shown to be resilient to worsening economic
conditions, there are “pockets of vulnerability” including among private
equity-backed firms and SMEs.
Firms must ‘prepare’ for shocks to global financial markets, Bank warns (msn.com)
Covid-19 Corner
This section will continue until it becomes unneeded.
NHS
rolls out flu and Covid vaccines amid ‘tripledemic’ fears
3
October 2024
People
are being warned that “the threat of winter viruses is all too real” as the NHS
rolls out flu and Covid-19 vaccines.
Appointments
opened last week for those eligible, including older people, care home
residents and people with health conditions, with jabs set to be given from
Thursday, 3 October.
Some
11 million people have been invited to come forward for protection, NHS England said.
The
latest roll-out comes after health officials raised concerns about a fall in
the uptake of the flu vaccine after it emerged the illness had caused at least
18,000 deaths in the last two years.
With
new figures showing thousands of deaths associated with Covid and flu in recent
years, it is clear that the threat of winter viruses is all too real, and it is
vital that anyone eligible takes up the offer to get vaccinated
Steve
Russell, NHS England
According
to the UK Health Security Agency (UKHSA) there was a drop in people having the
jab across all eligible groups in England last year.
A
little over four in 10 (41.4 per cent) people in clinical risk groups were
vaccinated last winter compared with 49.1 per cent in the previous year, while
the number of pregnant women jabbed fell to 32.1 per cent from 35 per cent and
uptake among two and three-year-olds was around 44 per cent, down from 42.3 per
cent and 45.1 per cent respectively.
Steve
Russell, national director for vaccinations and screening at NHS England, said:
“With new figures showing thousands of deaths associated with Covid and flu in
recent years, it is clear that the threat of winter viruses is all too real,
and it is vital that anyone eligible takes up the offer to get vaccinated.
“There
are many slots still available with GP practices, pharmacies and other NHS
teams offering quick and easy appointments, so if you have not booked yet then
please do using the NHS website, NHS App, or by calling 119 – it could keep you
out of hospital this winter.”
Children
and pregnant women started getting vaccinated against flu on 1 September.
More
NHS rolls out flu and Covid vaccines amid ‘tripledemic’ fears (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.
US military
checks out aircraft that can take off on sub-100-m runways
By David Szondy October 02, 2024
Electra has
shown the extreme takeoff and landing capabilities of its hybrid-electric Short
Takeoff and Landing (eSTOL) Ultra Short prototype aircraft off to the US
Military. The aircraft is designed to operate from areas without proper
airfields.
The
effects of Hurricane Helene, which has devastated and cut off large areas of
North Carolina, highlights the necessity for aircraft that can land and take
off in forward areas that might not have much more than a postage stamp for a
runway. Developed in partnership with the US Air Force, the Ultra Short is
designed to operate in the sort of areas usually reserved for helicopters, but
more efficiently, at lower cost, and without a helicopter pilot.
The
Ultra Short looks somewhat like a conventional private plane with a top-mounted
wing, except that the wing has very large flaps for extra lift on take off and
is powered by eight electric motors mounted to concentrate the back draft from
the airflow over the wings.
To cut
to the chase, the Ultra Short can operate from fields measuring 300 x 100 ft
(91 x 30 m) and these don't even need the proper infrastructure. A pasture or a
football field will do nicely.
It's
not a new concept. STOL aircraft have been around for over a century, with some
looking like flying Venetian blinds and others like flying pancakes. What
Electra has done is put a new spin on things with its hybrid electric
propulsion system.
Using
a lithium battery and a turbine generator, the Ultra Short can achieve longer
ranges than pure electrics by using the generator to recharge the batteries or
run the motors directly, giving it a cruising speed of about 200 mph (322 km/h)
and a range around 500 miles (805 km) with a 45-minute reserve. It can also
carry out helicopter-like missions with one-third of the fuel consumption.
During
the recent demonstration flight conducted by Electra Chief Test Pilot Cody
Allee the Ultra Short made a series of take offs and landings from grass fields
at Marine Corps Air Facility Quantico and Felker Army Airfield at Joint Base
Langley-Eustis in Virginia. The aircraft flew in tight 150-ft (46-m) turns at
low speeds and low altitudes, which is important in military flights where
survivability is a major factor.
In
addition, the company demonstrated how the plane can be used as a mobile power
station by running the pre-flight presentation equipment and sound system that
were powered directly from the airplane. According to Electra, the system can
provide over 600 kW of continuous power and more than 1 MW for short bursts,
"These
flight demonstrations mark a significant milestone for Electra as we show the
capabilities of the technology in the real-world," said JP Stewart, Vice
President and General Manager of Electra. "Our Ultra Short aircraft make
it possible to operate from austere locations previously only reachable by
helicopters, with 70% lower costs and very quiet operations. We're excited to
collaborate with our government partners to deliver a new level of capability
and operational energy efficiency that aligns with the future of defense
logistics and mobility."
Source: Electra
US military checks
out aircraft that can take off on sub-100-m runways (newatlas.com)
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
Another weekend and a worrying weekend
at that. Will Israel attack Iran this weekend and if so, what impact will it
have on oil prices? When will the Boeing strike end? What will ending the US east
coast port strike cost? Will the EU enter recession or stagflation? Has it
already? What will coming higher taxes
in France, the UK and now Italy do to Europe’s already slowing economy? How
much voter bribery will take place in the final four weeks of the US elections?
Have a great weekend everyone.
I never
did give anybody hell. I just told the truth and they thought it was hell.
Harry
S. Truman.
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