Baltic
Dry Index. 1616 -11 Brent Crude 73.00
Spot Gold 2660 US 2 Year Yield 4.31 +0.04
The Stock Market is designed to transfer money from the Active to the Patient.
Warren Buffett.
With more stocks wobble in Asia, a growing stock scandal in India, a manufacturing cost crisis in Germany and a UK government determined to put up retail inflation, increase retail automation and collapse British farming, it’s probably a good time to be selling stocks alongside Warren Buffett’s Berkshire Hathaway.
Of course, there’s still time for the Washington-London War Party to start WW3 before an iffy looking Trump team take over on January 20th.
Asia markets mostly fall as investors assess
Nvidia results; Adani Group companies plunge
Updated Thu, Nov 21 2024 12:13 AM EST
Asia-Pacific markets mostly fell Thursday,
with investors watching tech shares in the region after chipmaker Nvidia reported better-than-expected
results.
Nvidia reported a 94% year-on-year surge
in revenue for the third quarter to $35.08 billion. However, that is still a
consecutive slowdown from the previous three quarters, when sales rose 122%,
262%, and 265%, respectively.
Net income during the quarter rose to
$19.3 billion, versus $9.24 billion in the same period a year ago.
All eyes are on Indian stocks related to billionaire Gautam Adani, after
the chair of India’s Adani
Group was indicted
with others in New York federal court on charges related to a massive
bribery and fraud scheme.
Shares of Adani Group companies plunged,
with flagship Adani Enterprises down
20%, while the company in the eye of the storm Adani Green Energy tanked
18.19%. Adani Energy also fell 20%.
Adani Power lost
15.18%, while Adani
Port’s share price dropped 15%, The group’s retail arm Adani Wilmar shed
10%.
The Nifty 50 index was down 0.84%, while
the BSE Sensex lost 0.8%.
Japan’s Nikkei 225 fell 0.93%, and
the broad-based Topix slipped 0.54%. Semiconductor equipment supplier Advantest was one of the
the largest losers on the Nikkei, falling almost 3%. The company disclosed it’s relationship with Nvidia in 2023.
South Korea’s Kospi rose 0.38%, while the
small-cap Kosdaq was marginally up. Nvidia supplier SK Hynix reversed gains to
drop 0.41%, while heavyweight Samsung Electronics gained 2.53%.
Australia’s S&P/ASX 200 traded down
0.17%.
Hong Kong’s Hang Seng index fell 0.13%,
while mainland China’s CSI300 was down 0.22%.
Overnight in the U.S., the S&P 500 ended Wednesday
flat, with Nvidia shares
slipping nearly 1% ahead of the company’s highly
anticipated earnings report. Investors also assessed disappointing results
from Target.
The tech-heavy Nasdaq Composite lost 0.11%,
while the broad index closed little changed at 5,917.11, The Dow Jones Industrial Average was
a bright spot, gaining 0.32%
Asia markets live: Nvidia results, Adani charges
Nasdaq 100 futures fall, Nvidia shares slip after
earnings report: Live updates
Updated Thu, Nov 21 2024 8:17 PM EST
Futures tied to the Nasdaq 100 slid
Wednesday night as investors parsed the all-important earnings release from
artificial intelligence darling Nvidia.
Nasdaq 100 futures slipped
0.5%, while S&P 500
futures lost nearly 0.4%. Dow Jones Industrial Average futures lost
49 points, or 0.1%.
Investors kept a close eye on
after-the-bell earnings from Nvidia, the chipmaker that has dazzled Wall Street
for more than a year as a key AI beneficiary. While the company beat
expectations for the third quarter and issued strong guidance, shares
shed more than 2% in extended trading.
The after-hours move “tells you how much
the expectations game on Nvidia has been ramped up,” Aswath Damodaran, finance
professor at New York University’s Stern School of Business, said on CNBC’s
“Closing Bell: Overtime.” “They don’t just have to beat analyst estimates; they
got to beat them by 10%.”
On the other hand, Snowflake jumped more than
19% after the data analytics software company beat
expectations for the third quarter.
That action follows a mixed
day on Wall Street, with the S&P 500 ending near flat.
The Dow jumped nearly
140 points, while the Nasdaq
Composite ticked down 0.1%.
Traders will watch Thursday for economic
data on jobless claims and existing home sales. Cleveland Federal Reserve
President Beth Hammack, Chicago Fed President Austan Goolsbee and Kansas City
Fed President Jeff Schmid are also expected to give remarks throughout the day.
On the corporate earnings front, investors
will parse reports from Gap and Intuit expected after the
market closes.
Stock market today: Live updates
Adani investor GQG Partners’ shares crash 25% — on
pace for record loss after Gautam Adani’s indictment
Published Thu, Nov 21 2024 12:04 AM EST
Shares of Australia-listed GQG Partners plunged as much as
25% on Thursday and were set to post their worst day on record, after Adani
Group Chair Gautam Adani was charged
with fraud in New York.
If losses hold, it will be the investment
firm’s steepest one-day fall since its listing on Oct. 2021.
Shares
of Adani Group companies also nosedived, as Indian stock markets opened for
trade. The Nifty 50 index
was down 0.75%, while the BSE Sensex was 0.73% lower.
GQG is Adani Enterprises’
fourth-largest shareholder, owning about 3.94% of the firm, according to LSEG
data.
In a statement sent to CNBC, GQG said that
it was are monitoring the charges, adding that “our team is reviewing the
emerging details and determining what, if any, actions for our portfolios are
appropriate.”
The investment firm also pointed out that
its portfolios have “diversified investments,” saying that over 90% of clients
assets are invested in issuers unrelated to the Adani Group.
GQG
has reaped rich rewards investing in Adani whose shares tumbled
after a short-seller
report in January 2023 by New York’s Hindenburg
Research accused the company of fraud.
Rajiv Jain, chairman and chief investment
officer at GQG Partners, told CNBC in January this year that his profits
on Adani stood at about $4 billion, but he was likely done investing in the
group.
Hindenburg had charged Adani Group of
“brazen stock manipulation and accounting fraud scheme over the course of
decades,” sending shares plunging by more than 54% in the first quarter of
2023.
Adani Group investor GQG Partners' shares crash 25% — on pace for record loss
The Creditanstalt crisis was a major episode of financial instability that peaked with the collapse of several major banks in Austria and Germany, including Creditanstalt on 11 May 19311. The collapse of the Creditanstalt is seen as the trigger to the great deflationary spiral in Europe between 1931 and 19332. The collapse of the Credit-Anstalt in Vienna started the spread of the crisis in Europe and forced most countries off the Gold Standard within a few months3. Austria played a prominent role in the worldwide events of 1931 as the largest bank in Central and Eastern Europe
In other news.
Euro zone negotiated pay growth accelerates in Q3,
adding to rate cut caution
November 20, 2024
FRANKFURT (Reuters) - Euro zone negotiated
wage growth accelerated in the third quarter, adding to the case for caution in
cutting interest rates quickly as the labour market remains tight despite some
signs of cooling, data from the European Central Bank showed on Wednesday.
Growth in negotiated wages picked up to
5.42% in the third quarter from 3.54% in the previous three months as workers
continued to demand a compensation for incomes lost to the recent spike in
inflation.
The figure is unlikely to dash hopes for
another ECB rate cut in December. However, policy hawks are likely to use the
figures to temper market bets, which see a cut at every policy meeting through
the spring, with the 3.25% deposit rate falling to 2% or possibly lower in
2025.
Still, others are likely to argue that
recent wage deals not yet reflected in these data are more modest and point to
further cooling.
Germany's IG Metall union last week
reached a 5.5% pay increase over 25 months for almost 4 million workers, a
rather modest deal that may serve as precedent for others to temper demands.
"Our expectation remains that Euro
area pay growth will slow noticeably next year as inflation-related catch-up
effects fade," JPMorgan economist Greg Fuzesi said. "As headline
inflation is now much lower, nominal wage growth will also reset at lower
levels going forward once real wages have recovered sufficiently."
The bloc's labour market has been the
biggest headache for the ECB as it tries to tame a once-in-a-generation spike
in price growth.
Unemployment is at a record low and firms
keep hiring workers despite anaemic economic growth hoping to keep a full
workforce as they bank on an eventual recovery.
This labour hoarding has increased the
negotiating power of unions and workers want their pay to catch up in real
terms to levels before inflation.
While the ECB has long acknowledged that
wage catch up is necessary, it also called for moderation since excessive
payouts could further boost inflation, creating a self-reinforcing cycle.
But inflation has fallen quicker than most
expected and price growth is now seen back at 2% possibly in early 2025 as
companies are absorbing some wage increases via lower profits and price
increases for imported goods and energy have also been especially low.
Price pressures have weakened so much that
some policymakers even fear that the ECB could undershoot its 2% inflation
target, requiring interest rate to go to ultra low levels.
Euro zone negotiated pay growth accelerates in Q3, adding to rate cut caution
Exclusive-In high-wage Germany, VW's labour costs
outstrip the competition
November 20, 2024
BERLIN/FRANKFURT (Reuters) - As Volkswagen
and unions gear up for the next round of talks over wages and plant closures in
Germany, company and industry data reviewed by Reuters show that the automaker
spends a higher proportion of sales on labour costs than major rivals.
The data, in an internal memo by
Volkswagen's works council reviewed by Reuters, underscores the company's
challenge to remain competitive in its pricey home market as cheaper models
from China arrive.
Management will start the next round of
negotiations with unions representing roughly 120,000 German workers on
Thursday. Unions are demanding a 7% pay rise, while Volkswagen is threatening a
10% cut.
The proportion of revenue spent on labour
at Volkswagen globally has fallen from 18.2% in 2020 to 15.4% in 2023 - but
that ratio still exceeds BMW, Mercedes-Benz, and Stellantis, which spent
between 9.5% and 11% in 2023, according to the works council memo.
At VW AG, the German subsidiary that
governs the six plants in question, the ratio was estimated at 15.8-17.5%.
Volkswagen says it does not release separate figures for VW AG.
The findings by the works council, an
elected body of employees representing them in negotiations with management,
are based on annual reports showing companies' global spending on personnel
compared to revenue. The figures include all staff, from factory to
white-collar workers. Reuters checked and confirmed the calculations.
---- "The VW brand has been
market leader in Europe every year since 2005 ... its cars are competitive. The
problem is not the product, but the costs," he told Reuters.
Germany, where Volkswagen employs nearly
45% of its workforce, has the highest labour costs of any passenger car
industry worldwide, averaging 62 euros ($66) per hour in 2023, up around a
third from a decade ago, according to the German autos association VDA.
Still, union representatives say labour is
a small part of the company's cost base, challenging management to make cuts
elsewhere to boost flagging profits.
In an internal flyer to staff, the works
council pointed to steep drops in earnings at other parts of the group -
Porsche, Audi, and VW Financial Services - in the first nine months of the
year, which it said cost the company 5.5 billion euros ($5.8 billion).
More
Exclusive-In
high-wage Germany, VW's labour costs outstrip the competition
Indian Billionaire Adani Indicted in US Bribe Case
November 20, 2024
Indian billionaire Gautam Adani and other executives were indicted by a federal grand jury in New York for
allegedly paying more than $250 million in bribes to Indian government
officials and concealing them from US investors. Between 2020 and 2024, the
defendants agreed to make illegal payments to obtain lucrative solar energy
supply contracts with the Indian government, according to the indictment. “The
defendants orchestrated an elaborate scheme to bribe Indian government
officials to secure contracts worth billions of dollars,” Breon Peace, US
Attorney for the Eastern District of New York, said in a statement.
How many years do you get
in prison for masterminding one of the most breathtaking frauds in Wall Street
history? One that almost cooked the goose of some big banks while sealing the
fate of a doomed Credit Suisse? Bill Hwang found out on Wednesday when a
Manhattan federal judge handed him an 18-year sentence for the implosion of Archegos Capital
Management. Hwang, the founder of the $36 billion family office, had been found
guilty of fraud and market manipulation tied to the firm’s stunning collapse in
2021. Hwang orchestrated a scheme to mislead bank counterparties into providing
Archegos with billions of dollars in trading capacity that inflated the value
of his portfolio—until the bubble burst. The debacle caused significant losses
at Morgan Stanley, UBS Group and Nomura Holdings, among others.
(But Goldman Sachs, you may remember, came out just fine.)
Indian Billionaire Gautam Adani Indicted in US Bribery Case - Bloomberg
Moldova clinches security accord with Britain
Alexander Tanas Wed 20 November 2024 at 9:27 pm GMT
CHISINAU (Reuters) - Britain and Romania
offered their support to Moldova on Wednesday in tackling the effects of
Russia's 1,000-day-old invasion of neighbouring Ukraine as London signed a new
security and defence partnership agreement with the ex-Soviet state.
Foreign ministers from Britain and Romania
visited just over two weeks after pro-European President Maia Sandu won
re-election in the country between Ukraine and Romania, though by a smaller
margin than expected.
Moldovan voters last month backed, by a
tiny margin, a referendum to alter the constitution to include provisions on
integration with the European Union.
A British statement said the security
partnership was aimed at "building on extensive cooperation between the
two countries and strengthening Moldovan resilience against external
threats".
British Foreign Secretary David Lammy
noted the large influx of Ukrainians since Russia's February 2022 invasion,
including 50,000 children.
"With Ukraine next door, Moldovans
are constantly reminded of Russia's oppression, imperialism and
aggression," Lammy said.
Sandu has denounced Moscow's war in
Ukraine and described Russia and corruption as the biggest threats to Moldova,
one of Europe's poorest countries.
The two countries also clinched an
agreement on re-admission to ensure the return to Moldova of its nationals
illegally staying in Britain.
Also agreed were a 2-million-pound
($2.52-million) deal to improve Moldova's protection against cyberattacks and a
5-million-pound grant to improve health services for refugees.
Romanian Foreign Minister Luminita
Odobescu welcomed the outcome of Moldova's elections and said the three-sided
meeting underscored "the resolve of Romania and the United Kingdom to work
together in firmly supporting Moldova".
Romania and Moldova have cultivated strong
relations bolstered by a common language and historical links. Prior to
independence in 1991, Moldova was for 150 years variously a part of the Russian
empire, Greater Romania and the Soviet Union.
More
Moldova clinches security accord with Britain
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.
Inflation
jumps back above Bank of England’s target
Wednesday
20 November 2024 7:08 am | Updated: Wednesday
20 November 2024 7:16 am
According
to the latest figures from the Office for National Statistics (ONS) consumer
price inflation (CPI) hit 2.3 per cent in October.
The
figure came in above economists projections. Economists had forecast CPI to
come in at 2.2 per cent, up from 1.7 per cent in September.
Higher
energy bills pushed the headline figure higher, with regulator Ofgem hiking its
price cap on household bills by 9.5 per cent last month.
The
latest inflation figures throw a bit of uncertainty over the trajectory of
future interest
rates.
The
Bank of England’s governor Andrew Bailey has warned that services inflation “is
easing only gradually” and that a “more substantial fall” is unlikely this
year.
Bailey
has also suggested policymakers are still waiting to judge the impact measures
in Chancellor Rachel Reeves’ first Budget will have on the UK economy.
The
central bank raised its inflation forecasts for the next three years after
Reeves increased taxes on employers, which business groups have warned could
lead to higher prices and a hiring slowdown.
“I
saw the BRC’s (British Retail Consortium’s) letter and I think they’re right to
say, I think there is a risk here that the reduction in employment could be
more,” Bailey said. “Yes, I think that’s a risk.”
He
added that “there will be more pressure on firms’ margins” but they would
“probably rebuild those profit margins over time.”
More
Inflation jumps back above Bank of England's target
Lidl
boss warns retailers are ‘reeling’ after Budget tax raid
Wednesday
20 November 2024 10:35 am Updated: Wednesday 20 November 2024 10:36
am
The
boss of budget supermarket Lidl has warned retailers are
“reeling” following Labour’s tax
raid in the Autumn Budget.
The
German supermarket’s UK boss Ryan McDonnell said the discount brand was staring
down the barrel of “tens of millions of pounds” in extra costs.
This
comes after the Chancellor unveiled a £25.7bn tax-raising package, with a
change to employers’ national insurance contributions. This increased the rate
of tax and reduced the level at which they must pay.
Retailers
are also set to be hit by an increase to the national minimum wage and
packaging levies
This
week, Lidl joined other retailers including Tesco, Asda and M&S, in warning
the Chancellor job losses would be “inevitable” and price rises nailed on,
because of the changes.
In
a letter coordinated by the British Retail Consortium (BRC), 79 signatories,
including bluechip retailers, Next, and Greggs, said they had “significant
concerns” about the impact of the Budget on the retail industry and its
knock-on effect “for inflation, employment and investment”.
The
retailers joined hospitality bosses and farmers in warning that cost hikes in
the Budget – including the minimum wage, inheritance tax and employer’s
national insurance contributions (NICs) – will decimate
family businesses and labour-intensive sectors.
---- Yesterday, the
governor of the Bank
of England, Andrew Bailey, said the group of 70 retailers were “right” to warn of
sweeping job cuts as a result of Labour’s punishing £40bn tax raid at the
Budget.
Budget
will mean “greater inflationary pressures”
Ryan
McDonnell, Lidl GB chief executive, told the PA news agency: “There is a lot of
impact that we will have to negotiate and I think the letter shows that the
industry is reeling a lot.
“We
are talking about £7bn for the whole industry. For us it will be somewhere in
the tens of millions.”
He
said that the jump in costs will result in “greater inflationary pressures” but
stressed that it will “maintain market-leading pricing”.
This
comes as Lidl said it had a surge in sales for the past year, as Brits switched
from rivals in search of cheaper offers.
New
accounts showed Lidl GB’s revenue increased by 16.9 per cent to £10.9bn for the
year to February.
It
also swung to a pre-tax profit of £43.6m for the year, after posting a loss of
£76m a year earlier.
Lidl
now has 960 stores in the UK and is the sixth largest grocery chain, according
to Kantar.
Lidl boss warns retailers are 'reeling' after Budget tax raid
UAW
President, Shawn Fain, meets with Toledo auto workers after Stellantis layoff
announcement
November
20, 2024
OLEDO,
Ohio (WTVG) - United Auto Worker (UAW) president, Shawn Fain stopped in Toledo,
Tuesday to meet with auto workers, just weeks after Stellantis
announced mass layoffs coming to Toledo’s Jeep plant.
Stellantis
announced about 1,100 workers will be laid off as early as January 2025 as they
move production of the Gladiator from two shifts, down to one shift.
Media
was not allowed in the meeting, but 13 Action News spoke to some members in the
hallways of UAW Local 12. Some said they had some anxieties as those layoffs
loom, others remained calm, saying they know the UAW can only do so much.
One
Gladiator shift worker, Tyler Wilhelm, has been a UAW member for seven years.
He said he has faith in the UAW that they will get him back to work if he loses
his job.
“Everyone’s
wondering where we’re going to end up,” Wilhelm said. “All we really want to do
is just work.”
Representatives
with Stellantis said the change in shift is an effort to reduce high inventory
levels by managing production to meet sales.
UAW
Local 12 President, Bruce Baumhower, said these layoffs come from the top down,
as prices rise but sales are down.
As
our media partners with The Blade have previously reported, domestic sales of
the Gladiator dropped 38% from 2021 to
2023.
“The
company decided they wanted to make more profit, they raised the prices on both
the wrangler and the gladiator, and all of the sudden the sales have slowed,”
Baumhower said. “I think they gotta re-adjust that price and get our guys back
to work.”
Baumhower
said the impact of these layoffs goes further than just the Toledo plant.
This
includes the companies that supply parts to Jeep. Less production means fewer
parts being supplied, and less business.
UAW President,
Shawn Fain, meets with Toledo auto workers after Stellantis layoff announcement
Covid-19 Corner
This section will continue until it becomes unneeded.
No covid update today. Today, Jaguar motors out does Bud Lite.
Jaguar
hits back at critics of new DEI rebrand ad that doesn't feature any cars
By JOE HUTCHISON FOR
DAILYMAIL.COM
Published: 17:52, 19 November 2024 | Updated: 20:19, 19 November 2024
British
carmaker Jaguar has hit back at critics of their rebrand after they released an
advert without any cars in it.
The
manufacturer unveiled a new logo on Tuesday as part of their rebrand, as well
as a cryptic and colorful advert.
Posting
the video to their social media site, the ad shows a group of models dressed in
bright and flamboyant clothing.
The
ad occasionally pops up with text reading 'create exuberant', 'live vivid',
'delete ordinary', 'break moulds' and 'copy nothing'.
As
it does so, the characters can be seen grabbing at sledgehammers, painting over
the screen and posing for photographs in sync.
Social
media users, including the likes of Elon
Musk,
have been quick to point out that the ad offers no suggestion that the company
sells cars.
Responding
to one user who posted on X asking 'where are the cars in this ad? Is this for
fashion?, the company replied: 'Think of this as a declaration of intent'.
Others
used posed similar questions, which was met with replies including: 'The story
is unfolding. Stay tuned', and 'Consider this the first brushstroke'.
More,
including that Jaguar Bud Lite video.
Jaguar hits back at critics of new DEI rebrand ad that doesn't feature any cars | Daily Mail Online
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.
Trials for
rapid-charging battery trains under way by Great Western Railway
13
November 2024
A trial
by Great Western
Railway (GWR) for rapid-charging battery trains is
underway, as part of plans to phase out diesel engines.
The
initiative was launched in February 2022, with the trials officially commencing
in March this year after GWR engineers successfully tested the compatibility of
fast-charge technology with Class 230 battery trains on the Greenford branch
line in west London.
Trials
are going ahead before they are due to be introduced in the Thames Valley, with
those in west London expected to ride the new trains in the spring.
GWR
told The Independent that its trial has now been running for
nearly eight months, and the work has “successfully raised the profile of
fast-charge technology as part of the potential solution to decarbonisation of
lines that are difficult or expensive to reach through traditional
electrification”.
“More
than 430 return trips have been completed between West Ealing and Greenford,
testing the technology’s capability in all weather conditions and
temperatures.”
The
trains have been converted from old Underground models and have been fitted
with FastCharge technology to power them up in a matter of minutes before
setting out on their journeys.
Trial
manager Julian Fletcher explained to the BBC :
"The train comes to a halt, and then the rails become powered, and then
they charge up the train, and that all happens within the minutes it takes the
driver to get out of one end and in the other."
He
said a lot of tests were carried out successfully before the installation of
the charging equipment, including some that "covered ice, snow, and all
sorts of contamination".
During
trials in February 2024, the fast-charge battery train set a new distance
record in the UK by travelling 86 miles (138km) on battery power alone and
without recharging.
The
train was operating in a real-world environment, at speeds of up to 60mph,
stopping and starting on a hill route with elevation changes of up to 200m.
GWR
hopes that by implementing fast-charge technology it will be able to deliver
more reliable trains capable of fulfilling timetable services.
It
also hopes the technology will contribute to eliminating the use of diesel
traction on the network, helping meet the Government’s and rail industry’s
target to reach net-zero cargo emissions by 2050.
Using
batteries could reduce GWR emissions alone by over 1,700 tons of CO2e per year,
the operator said.
GWR
Managing Director Mark Hopwood, said: “We want GWR to be at the forefront of
the railway’s commitment to phase out diesel-only traction by 2040 and this
demonstrates that we put our customers at the heart of everything we do.
“This
is why we took on the challenge and are taking an industry-leading approach in
not only battery train operation, but the development of the fast-charge
system.
“It’s
important to remember this work has never been done before. It’s designed to
test the capability and viability of the fast-charge technology – and
demonstrates Great Western Railway taking a bold and broad approach towards
replacing diesel-only trains with greener units.”
The
use of batteries has in the past been constrained by their range and power
life.
The
use of batteries could also negate the need for overhead electric lines that
are expensive, time-consuming to install, and look unattractive.
GWR
hopes that the fast charge technology could one day see battery-powered trains
in operation across the UK’s approximately 2,000 miles of 80-plus branch lines.
GWR is
using technology from hybrid train manufacturer Vivarail. After Vivarial
entered administration in December 2022, GWR agreed on contracts to buy the
intellectual property, rolling stock and FastCharge technology.
Trials for
rapid-charging battery trains under way by Great Western Railway
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
The
dumbest reason in the world to buy a stock is because it's going up.
Warren Buffett.
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