Saturday, 16 November 2024

Special Update 16/11/2024 Stocks, Re-Assessing Trump. USA 36 Trillion In Debt.

Baltic Dry Index. 1785 +93          Brent Crude 71.04

Spot Gold 2563              U S 2 Year Yield 4.31 -0.03

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.

Alan Greenspan.

Did a harsh reality just return to the US stock casinos? Was Warren Buffett right all along?

Dow closes 300 points lower Friday as rate worries hinder postelection rally: Live updates

Updated Fri, Nov 15 2024 5:12 PM EST

Stocks tumbled on Friday as the postelection rally fizzled and investors fretted over the path of interest rates.

The Dow Jones Industrial Average lost 305.87 points, or 0.70%, to end at 43,444.99. The S&P 500 slipped 1.32% and closed at 5,870.62, while the Nasdaq Composite fell 2.24% to 18,680.12.

Declines in pharmaceutical stocks weighed on the 30-stock Dow and the S&P 500, with Amgen down about 4.2% and Moderna off by 7.3%. President-elect Donald Trump said on Thursday that he planned to nominate vaccine skeptic Robert F. Kennedy Jr. to lead the U.S. Department of Health and Human Services. The SPDR S&P Biotech ETF (XBI) tumbled more than 5% and posted its worst week since 2020.

The information technology sector of the S&P 500 was the worst-performing corner of the market, down more than 2%, as Nvidia, Meta PlatformsAlphabet and Microsoft tumbled. Tesla was a rare exception among its “Magnificent Seven” peers, as shares of the electric vehicle giant and so-called “Trump Trade” were higher by 3%.

“While we think the macro backdrop still bodes well for risk assets, in the near term we should expect some micro volatility, particularly around potential policy shifts under a new administration,” said Kristy Akullian, head of iShares investment strategy, Americas, at BlackRock. “We expect the U.S. equity market to continue to move higher, but don’t expect that rise to happen in a straight line.”

Traders also grappled with recent comments from Federal Reserve Chair Jerome Powell, who said on Thursday that the central bank wasn’t “in a hurry” to cut interest rates. He noted that the economy’s strong growth will permit policymakers to take their time as they decide the extent to which they reduce rates. Boston Fed President Susan Collins took the cautious sentiment further, telling The Wall Street Journal that a rate cut next month is not a certainty.

October retail sales data on Friday showed a 0.4% increase, slightly better than the 0.3% forecast from economists polled by Dow Jones. That finding follows an October consumer inflation report that was in line with economists’ projections.

The major averages had been coasting on a postelection rally since Trump’s victory at the polls — the three indexes touched fresh highs on Monday — but the upward momentum has been slowing. The S&P 500 posted a weekly loss of 2.1%, while the Nasdaq Composite slid about 3.2%. The 30-stock Dow fell 1.2% during the period.

Stock market news for Nov. 15, 2024

US Stocks Erase More Than Half Post-Election Gains: Market Wrap

Fri, November 15, 2024 at 9:39 PM GMT 

(Bloomberg) -- Stocks fell on Friday, closing out the worst week in more than two months, as Trump trades lost steam and investors bet the Federal Reserve will have to slow the pace of policy easing.

The S&P 500 ended off session lows, with tech stocks leading declines. The benchmark has now erased over half of the trough-to-peak gains it notched after the US presidential election. Traders see slightly more than even odds of a quarter-point cut next month following comments by Jerome Powell this week indicating the Fed was in no hurry to lower rates and a report Friday on October retail sales that included large upside revisions to the prior month.

As the initial euphoria about President-elect Donald Trump’s pro-business agenda begins to fade, investors are coming to terms with the costs of his fiscal plans and their potential to reignite inflation.

“It will come at the expense of potentially larger budget deficits, potentially larger debt and there is also the inflation dimension,” said Charles-Henry Monchau, chief investment officer at Banque Syz & Co. “There’s been a realization that there is a price to pay for this.”

For the week, the S&P 500 was down 2.1% and the tech-heavy Nasdaq 100 dropped more than 3%, both posting the biggest declines for the period since Sept. 6. On Friday, shares of all “Magnificent Seven” megacaps retreated except Elon Musk’s Tesla Inc., with Amazon.com Inc., Nvidia Corp. and Meta Platforms Inc. sliding more than 3%. Applied Materials Inc., the largest US maker of chip-manufacturing equipment, suffered its worst stock decline in a month after giving a disappointing revenue forecast.

Late Friday, traders priced about a 56% chance the Fed will deliver a quarter-point reduction at its December meeting, down from 80% earlier this week. Bets on cuts were pared after Powell warned Thursday that the central bank may take its time easing policy.

Boston Fed President Susan Collins said Friday a December cut remained on the table, emphasizing the central bank’s decision will be guided by incoming data. Chicago Fed chief Austan Goolsbee said as long as inflation continues down toward the central bank’s 2% goal, rates will be “a lot” lower over the next 12-18 months. He agreed with Powell, however, noting policymakers aren’t in a hurry to lower borrowing costs.

More

US Stocks Erase More Than Half Post-Election Gains: Market Wrap

U.S. companies could be caught in the crosshairs if China retaliates to fight Trump

Published Fri, Nov 15 2024 10:47 AM EST Updated Fri, Nov 15 2024 12:48 PM EST

With President-elect Donald Trump’s trade and foreign policy team taking a hawkish stance toward China, U.S. companies are increasingly concerned a hard-line approach could stunt their prospects in the world’s second-largest economy – and turn them into targets of Chinese retaliation.

Trump has threatened to hit China with at least 60% tariffs and vowed to end reliance on the country. That alone would be disruptive. It would force companies to scramble to find other sources of supply, American consumers to pay higher prices at the store, and, according to many experts, lead to job losses.

On top of that, the Chinese government could respond with an expanded tool kit to target American businesses.

“The Trump administration’s actions may be seen or may be interpreted as economic war,” Scott Kennedy, senior advisor at the Center for Strategic and International Studies, told reporters in Beijing on Thursday. “If they are interpreted in that way, China might have a much more vigorous response, not limited to tariffs.”

Those actions could range from economic changes to matters of diplomacy and security, Kennedy said, adding China may “push back as hard as they can.”

More combative relations between the U.S. and China also brings the risk of public backlash amid rising Chinese nationalism. The Chinese government has strong controls over information flow which has led to consumer boycotts of international brands.

“The worst part is the consumer brands that are not of a strategic nature and themselves are not controversial and would not be subject to export restrictions might be punished by the local consumer because of their nationality,” said, Michael Hart, president of the American Chamber of Commerce in China. “Since Covid, companies have been looking to diversify and bolster their supply chains, but there are still no easy and reliable replacements for the supply chains and manufacturing that has developed in China over the past decades.”

China’s retaliation tool kit

During Trump’s first term, the Chinese government retaliated against U.S. tariffs by imposing its own tariffs on U.S. imports.

The U.S.-China Business Council, in conjunction with Oxford Economics, estimates a new tit-for-tat tariff battle could result in a “permanent loss of revenue and pressure businesses to slash jobs and investment plans” with as many as 801,000 net job losses by 2025.

The report projected that Nevada, Florida and Arizona would be among the states hardest hit by such tariffs due to their economic reliance on consumer demand. Manufacturing states such as Indiana, Kansas, Michigan and Ohio would also be vulnerable, the Oxford report found. Swing states Nevada, Arizona and Michigan all flipped to Trump in the 2024 election, helping to deliver him back to the White House.

James McGregor, a business consultant on China for three decades, said he sees Beijing using its leverage on U.S. agricultural purchases if it feels pressed this time, too.

“China is already focused on ridding itself of dependence on U.S. farm products. If alternative supplies are available, China may well shift away from American farmers where they can,” McGregor said.

Two years ago, China started importing corn from Brazil. The country is now China’s biggest supplier of corn, surpassing the U.S.

Beijing could also broaden its retribution methods to include targeting U.S. companies operating on Chinese soil.

More

U.S. companies in the crosshairs if China retaliates to fight Trump

GM lays off 1,000 employees amid reorganization, cost-cutting

Published Fri, Nov 15 2024 9:13 AM EST Updated Fri, Nov 15 2024 4:59 PM EST

DETROIT – General Motors laid off roughly 1,000 employees on Friday as the automaker attempts to cut costs and realign priorities amid changing market conditions, according to a person familiar with the decision.

The layoffs, which were announced Friday morning to those impacted, were across the business. Some were due to poor performance, while others were part of a review to reorganize priorities by the automaker, according to the person, who agreed to speak about the decision on the condition of anonymity.

A majority of the employees impacted were salaried workers in suburban Detroit at the automaker’s global technical center in Warren, Michigan, the person said. The United Auto Workers said about 50 union members were included in the layoffs.

The company is targeting $2 billion in fixed cost reductions this year as it deals with slowing U.S. sales, business deterioration in China and a shift in its “all-in” strategy for electric vehicles amid slower-than-expected consumer adoption.

A spokesman for GM confirmed the layoffs but declined to disclose the total amount.

---- UAW Vice President Mike Booth, who oversees the union’s GM unit, condemned the layoffs. “GM is trying to cut around 50 UAW jobs, when they’re making record profits. We will fight for our laid off members with the full force of our contract,” he said in an emailed statement.

Friday’s layoffs follow more than 1,000 salaried employees working in GM’s software and services organization being let go in August.

GM’s global salaried workforce was 76,000 as of the end of last year. That included about 53,000 U.S. salaried employees.

GM lays off 1,000 employees amid reorganization, cost-cutting

Finally, well if they say so but it doesn’t look that way to me.

The Predicted Rise in Eurozone Growth

November 15, 2024 at 6:08 PM GMT

Economic growth in the eurozone economies will tick up in the next two years from 0.8% this year to 1.3% next year and 1.6% in 2026, according to the European Commission – higher than previous forecasts from the International Monetary Fund. In a report published today, the EC said that growth would be boosted by a range of factors including inflation returning to the European Central Bank’s 2% target, record lows of unemployment, and increasing consumption and investment. However, they added a note of caution around “structural challenges” and “geopolitical uncertainty” in the future. The looming possibility of tariffs raised by US President-elect Donald Trump on European exports were not mentioned, though this could pose a particular issue given their significance, with last year seeing a volume of €850 billion ($898 billion) for goods and another €650 billion for services. Added growth would help the eurozone, which has faced a series of economic challenges recently, including a recession in Germany, its largest economy. — Helen Chandler-Wilde

The Predicted Rise in Eurozone Growth - Bloomberg

Global Inflation/Stagflation/Recession Watch. 

Given our Magic Money Tree central banksters and our spendthrift politicians,  inflation/recession now needs an entire section of its own.

Recession could create an ‘abrupt shift’ in AI adoption: ‘That’s when you really see the effects of automation’

13 November 2024

The widespread replacement of workers by AI won’t happen until a recession strikes, according to IMF first deputy managing director Gita Gopinath. 

Since OpenAI’s ChatGPT kicked off the generative AI revolution in late 2022, there has been extensive handwringing that the technology would result in mass layoffs. 

he promise of a tool that could understand complex questions posed in normal, everyday speech and spit out cohesive answers seemed poised to end a host of professions ranging from customer service reps to journalists. 

Ultimately, those concerns haven’t panned out as the most fearful had imagined, largely because the economy was on solid footing. However, if things should take a turn for the worse, then the labor market could start to experience an “abrupt shift” of human workers being replaced by AI. 

“You see it when the recession strikes,” Gopinath said during an onstage interview at the Fortune Global Forum in New York. “That's when you really see the effect of automation on the labor market.” 

When the economy is strong companies don’t need to cut their headcount and prefer to be fully staffed, Gopinath argues. 

“When you have good times, and companies are making lots of profits, they hold on to workers,” she said. “They're investing in the technology [AI], but they're holding on to workers.” 

The corporate belt-tightening of a recession forces companies to lay off workers. 

However, once the economy emerges from that recession some of those jobs never return. 

This phenomenon, which economists call a jobless recovery, happened after the Great Recession permanently gutted American manufacturing jobs. 

A “jobless recovery is a reflection of companies finally letting go of workers, fully automating the task, and not hiring both workers back,” Gopinath said. 

The extent to which AI will impact the labor market is a hotly debated topic. 

A widely cited 2023 report from Goldman Sachs estimated that AI could impact roughly 300 million jobs in the U.S. and Europe. Not all those jobs would see the entirety of their duties automated away, with some only seeing between 25% and 50% of their workloads taken over by AI. 

“So the caution here for policymakers is, just because you're not seeing it now doesn't mean you won’t see an abrupt shift in a recession,” Gopinath said. 

That said, AI, like all technologies, is not merely a deadweight on the global economy. 

Technologies carry with them the promise of productivity gains, where the economy can produce more goods and services with fewer resources. 

More

Recession could create an ‘abrupt shift’ in AI adoption: ‘That’s when you really see the effects of automation’

Covid-19 Corner       

This section will continue until it becomes unneeded.

Study reveals COVID-19 vaccine safety in patients with atrial fibrillation/flutter

14 November 2024

Development of the coronavirus disease 2019 (COVID-19) vaccine has been key to countering the pandemic caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). Despite the current endemic status of COVID-19, patients with comorbidities and older adults remain vulnerable to severe illness and death due to COVID-19 infection. Therefore, medical agencies and organizations worldwide recommend COVID-19 vaccination, especially for individuals with an underlying disease.

However, several real-world studies have reported complications following COVID-19 vaccination such as thromboembolism—a health complication where circulating blood clots block the flow of blood to organs and bleeding events. Additionally, patients with atrial fibrillation/flutter (AF/AFL) are predisposed to higher risks of thrombo-embolic events.

To evaluate the risks of thromboembolism following COVID-19 vaccination in patients with AF/AFL, a collaborative team of researchers led by Professor Jin Oh Na from Korea University College of Medicine, and Professor Hyung-Kwan Kim from Seoul National university College of Medicine have conducted a self-controlled case series (SCCS) study. Their research findings were made available online on 12 July 2024 and was published in the European Heart Journal on August 21, 2024.

"Recent studies in France and UK have identified elevated risks of pulmonary embolism, acute myocardial infarction, and thrombo-embolic events after COVID-19 vaccination. Our findings are crucial for the development of future COVID-19 vaccine policies and treatment guidelines," says Prof. Na, explaining the inspiration behind the present research.

Initially, the team of researchers utilized data from the National Health Insurance Service database of South Korea to include 124,127 patients with AF/AFL who received COVID-19 vaccine between February 2021 to December 2021. Subsequently, they measured the incidence of thrombo-embolic events, such as ischemic stroke and transient ischemic attack, within the 21-day risk period post-vaccination.

Preliminary analysis revealed that there was no increase in the risk of thrombo-embolic events following COVID-19 vaccination with an incidence rate ratio (IRR) of 0.93. To clarify whether the risks varied with respect to specific categories, Prof. Na and co-researchers conducted subgroup analyses. While the risks of thromboembolism did not vary with sex, age, or vaccine type, patients with AF/AFL who did not receive anticoagulant therapy after vaccination had a significantly increased IRR of 1.88.

"This finding underscores the necessity of anticoagulant therapy in real-world clinical practice, particularly for patients with AF/AFL following COVID-19 vaccination," remarks Prof. Na.

Since the risk period of the current study was only 21 days post-vaccination, future research involving longer time-frames and booster doses of vaccine are needed to comprehensively understand the long-term complications associated with the COVID-19 vaccination.

More

Study reveals COVID-19 vaccine safety in patients with atrial fibrillation/flutter

Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section.

The Role of 3D Printing in Battery Manufacturing

8 November 2024

Additive Manufacturing (AM), or 3D printing, is a process in which a complete product is created from a 3D computer model by joining material layer by layer.1 With 3D printing replacing traditional manufacturing techniques, industries are utilizing AM for rapid production, reduced fabrication costs, and promoting sustainable practices. The battery manufacturing sector, in particular, has adopted AM for its customization capabilities.

3D Printing of Lithium-Ion Batteries

With sustainability becoming a key focus, electric vehicles are becoming popular to reduce the consumption of fossil fuels. In these vehicles, batteries are critical, with shorter charging times and durability being preferred features.2

Structural batteries provide many benefits and can be easily integrated into the electric system without added technology. Recently, researchers at Shanghai University used 3D printing to manufacture customizable Li-ion batteries that can be shaped to specific user requirements. Integrating 3D printing with electrical energy storage (EES) systems also reduces strain on energy storage materials.3

The 3D printing technology used enables robust design configurations, allowing the batteries to withstand higher tensile stress. Researchers developed a composite-based Li-ion battery made from Carbon Fiber Reinforced Polymer (CFRP) that operated safely under a maximum 3-point bending stress of 123 MPa, with an energy density of 120 Wh kg−1 and a charge retention of 92 % after 500 cycles.

Experimental data indicates that the customizable 3D-printed lithium battery performs effectively for autonomous vehicles and can be scaled for broader industrial engineering applications.4

Advancements in 3D-Printed Electrolytes

Various strategies are being implemented globally to enhance battery performance and support sustainable battery development. Solid polymer electrolytes (SPEs), an improved alternative to traditional liquid electrolytes, offer superior electrochemical stability, thereby extending battery life.5

Vat photopolymerization has been used to fabricate 3D-printed polyethylene oxide (PEO) electrolytes with an ionic conductivity of 3.7 × 10–4 S·cm−1, a suitable range for battery applications. Researchers have also applied Direct Ink Writing (DIW) to produce 3D-printed poly(vinylidene fluoride-co-hexafluoropropylene) (PVDF) solid electrolytes, which demonstrated superior performance compared to conventional electrolyte-containing batteries and most other solid electrolytes.

Related Stories

Fused Filament Fabrication (FFF) is the most widely used 3D printing technique for manufacturing solid electrolytes in lithium batteries. However, this technique has been less effective for producing components for sodium batteries.6

The rise in manufacturing high-performance solid-polymer and composite electrolytes through 3D printing is attracting several companies to develop bipolar multilayer batteries. This method enhances the flexibility and performance of modern batteries, particularly benefiting applications in wearable devices and electric vehicles.

More

The Role of 3D Printing in Battery Manufacturing

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

World Debt Clocks (usdebtclock.org)

This weekend’s music diversion. Old J. S. Bach again. Approx. 20 minutes.

Johann Sebastian Bach Keyboard Concerto in E major, BWV 1053

Johann Sebastian Bach Keyboard Concerto in E major, BWV 1053 - YouTube

This weekend’s chess update. Approx. 14  minutes.

Finally - The Big Clash! || Arjun vs Carlsen || Tata Steel Chess India (2024)

Finally - The Big Clash! || Arjun vs Carlsen || Tata Steel Chess India (2024)

This weekend’s final diversion.  Approx. 45 minutes.

The USN Pacific Submarine Campaign - The Struggle is Real (Jan'43 - Jun'43)

The USN Pacific Submarine Campaign - The Struggle is Real (Jan'43 - Jun'43)

Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.

Alan Greenspan.


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