Monday, 25 November 2024

Thanksgiving +3. Christmas +30. Buffett Buys Pizza.

Baltic Dry Index. 1576 -39            Brent Crude  74.65

Spot Gold 2664                US 2 Year Yield 4.37  +0.03

With age comes wisdom, but sometimes age comes alone.

Oscar Wilde.

In the stock casinos a mixed start to a US Thanksgiving Day holiday shortened week.

In the real economy far from the Trump stocks bubble, more gloom led by Germany.

In never ending wars news, all wars, civil wars and insurrections continue apace.

Asia markets kickstart data-heavy week on a strong note with Aussie stocks hitting record highs

Updated Mon, Nov 25 202411:51 PM EST

Asia-Pacific markets mostly rose Monday, with investors awaiting a slew of economic data this week including China industrial data and India’s third-quarter GDP numbers.

Singapore later in the day will release its inflation figures for October. Economists polled by Reuters expect the headline inflation rate of 1.8%, down from the 2% in the previous month. Should this forecast prove correct, this will be Singapore’s lowest rate of inflation since March 2021.

Other economic data this week include South Korea central bank’s rate decision due Wednesday.

October inflation readings from Australia are also out Wednesday, and November inflation numbers from Japan’s capital city of Tokyo will be released on Friday. Tokyo’s inflation figures are widely considered a leading indicator of nationwide trends.

Australia’s S&P/ASX 200 rose 0.58%, hitting a new all-time high of 8,458.9 early in the trading session.

Japan’s Nikkei 225 was 1.44% up, while the broad-based Topix rose 0.97%.

South Korea’s Kospi gained 1.28%, and the small-cap Kosdaq saw a larger rise of 2.9%.

In contrast, Hong Kong’s Hang Seng index reversed gains to fall 0.64%, while mainland China’s CSI 300 was down 0.53%.

On Friday in the U.S., the Dow Jones Industrial Average closed at a new high, capping off a winning week for stocks.

The blue-chip Dow gained 426.16 points, or 0.97%, to 44,296.51, a new all-time closing high and its third straight positive session.

The S&P 500 added 0.35% to finish its fifth winning day in a row, while the tech-heavy Nasdaq Composite rose 0.16%.

Gains were restricted by slides of 3.2% and 1.7% in Nvidia and Alphabet, respectively.

Asia markets live: India GDP, BOK decision, Singapore CPI

Stock futures rise Sunday ahead of shortened trading week: Live updates

Updated Mon, Nov 25 2024 7:00 PM EST

U.S. stock futures climbed Sunday night as Wall Street kicked off a shortened Thanksgiving trading week. Markets are closed on Thursday for Thanksgiving Day and end early on Friday.

Dow Jones Industrial Average futures rose 211 points, or 0.5%. Futures tied to the S&P 500 and Nasdaq-100 advanced around 0.4% each.

The major averages are coming off a winning week as the postelection rally picked up again. The 30-stock Dow advanced around 2% last week and finished at a record close. Meanwhile, the broad market index and Nasdaq Composite each rose about 1.7%. The small-cap Russell 2000 jumped roughly 4.5% during the week.

President-elect Donald Trump signaled his intention to nominate Key Square Group founder Scott Bessent as Treasury secretary on Friday after the market close. Investors may view the pick favorably and see the hedge fund manager as someone who will be supportive of the equity market. To be sure, Trump stated that Bessent would help him implement protectionist trade policies, which some investors fear will hurt the market.

“U.S. equities, the dollar and Treasury yields have all risen sharply in response to better-than-expected U.S. economic data and have received an additional boost from the election outcome,” said MRB Partners global strategist Phillip Colmar.

“However,” he added, “investors should be careful not to be dogmatic in their views and positioning since the policies proposed by President-elect Trump are a conflicting mix of pro-growth fiscal stimulus and stagflationary isolationism.”

Despite this week’s shortened trading week, the interest rate outlook is back in focus with the release of October’s personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred inflation measure. Minutes from the Fed’s most recent policy meeting are also due out ahead of Thanksgiving.

On the corporate earnings front, several retailers and tech names are slated to release quarterly results during the week. Bath and Body Works is scheduled to announce its earnings Monday morning. On Tuesday, retailers Macy’s, Nordstrom and Best Buy are reporting results, as well as tech companies CrowdStrike and Dell Technologies.

Stock futures rise Sunday ahead of shortened trading week: Live updates

Billionaire Warren Buffett just bought shares of Domino’s Pizza. Should I grab a slice?

Sat 23 November 2024 at 7:50 am GMT 

It’s always fascinating to see what big-name investors in the US have been doing. Every quarter, we get to peek behind the curtain through ‘13F’ regulatory filings, which show what they were buying and selling in the previous quarter. Unsurprisingly, Warren Buffett’s Berkshire Hathaway (BRK-B) is very closely watched.

In Q3, one big move made by Buffett — or more likely one of his investing lieutenants, Ted Weschler and Todd Combs — was the purchase of Domino’s Pizza (DPZ).

Berkshire scooped up 1.27m shares of the pizza restaurant chain, worth roughly $550m.

The stock has been a massive long-term winner, rising 5,520% in the past 15 years (excluding dividends).

What’s so attractive about this stock?

I see a number of things that make this a classic Buffett/Berkshire buy. For starters, Domino’s is the world’s leading pizza company, with more than 20,500 locations worldwide.

Crucially, it has an instantly recognisable brand. Buffett loves strong brands, as his 36-year holding in Coca-Cola (KO) proves. Top brands normally enjoy pricing power, enabling them to raise prices without losing customers, thereby enhancing profitability.

More

Billionaire Warren Buffett just bought shares of Domino’s Pizza. Should I grab a slice?

Is This As Good As It Gets for US Inflation?

If the inflation story this year was complicated, just wait until 12 months from now

November 24, 2024 at 9:00 AM GMT

Week Ahead

Monday: Nigeria’s third-quarter GDP will likely show slowing growth amid flooding and inflation; Zoom reports earnings as it tries to expand beyond video calls.

Tuesday: The Fed will release the minutes from its Nov. 6-7 meeting; Crowdstrike reports its first full quarter since its July outage; Nigeria is expected to raise rates a quarter point.

Wednesday: The October personal consumption expenditures index (PCE) will provide clues on US inflation and how the Fed will respond in December (more on that below).

Thursday: The Bank of Korea will hold interest rates steady, according to Bloomberg Economics, as it threads the needle between a struggling economy and strengthening dollar. US markets are closed for Thanksgiving.

Friday: Ireland heads to the polls as its centrist coalition hopes to buck the anti-incumbent trend roiling the rest of the world; India and Canada report GDP; the Eurozone and Tokyo report CPI; US markets remain closed.

Also: Brazil’s long-anticipated spending cuts could be announced this week, according to Bloomberg Economics.

Is This As Good As It Gets for US Inflation?

For most of this year, US inflation has been on a steady downward trend, fanning hopes that surging prices would give way to falling interest rates.

But as 2025 looms, there are signs that some pockets of inflation are proving more stubborn than expected, prodding economists to ask if this is as good as it gets.

We will get an update on the state of play when a gauge of prices that is closely watched by the Federal Reserve is released on Wednesday. The personal consumption expenditures index (PCE) is expected to have risen 0.2% in October from the prior month and 2.3% from a year ago.

The Fed watches this indicator because it's generally understood to be more comprehensive than other inflation measures, capturing not only what consumers spend out-of-pocket, but also indirect expenditures, including by third parties and the government.

If this week’s reading comes in as forecast or on the lower side of those expectations, then it will cement views that the great disinflation trend remains broadly intact and the Fed will have room to cut rates when it meets in mid-December.

But a higher reading would stoke the opposite reaction and ignite bets that the Fed has less room to maneuver. That scenario has extra potency given president-elect Donald Trump has promised sweeping tariffs on imported goods, which economists say will pressure inflation. All of which means that if policy makers at the Fed thought the inflation story this year was complicated, just wait until 12 months from now.

Will US Inflation Keep Falling? - Bloomberg

In other news.

Romania election stunner: Unexpected hard-right candidate surges in presidential vote

Ultranationalist Călin Georgescu comes from nowhere to lead center-left PM Marcel Ciolacu and liberal Elena Lasconi in first round.

November 24, 2024 10:59 pm CET

Romanian ultranationalist Călin Georgescu is currently on track to make it to the final round of presidential elections, according to Sunday’s provisional results with more than 90 percent of precincts reporting.

According to the partial results, Georgescu leads with 22.2 percent followed by center-left Prime Minister Marcel Ciolacu on 20.2 percent. Reformist candidate Elena Lasconi is on 18 percent, while another hard-right candidate, George Simion, trails with 14.1 percent support, with 96 percent of precincts reporting.

An early exit poll had suggested that Lasconi was set to qualify for the presidential runoff but Georgescu surged as vote counting continued Sunday night, heralding a result that is set to upend Romanian politics. Preliminary results are subject to change as votes continue to come in.

“The 35-years-long economic uncertainty imposed on the Romanian people became uncertainty for the political parties today,” Georgescu said in his first reaction after polls closed. He called the result “an amazing awakening” of the Romanian people.

Georgescu, extremely religious and nationalistic, campaigned on reducing Romania’s reliance on imports, supporting farmers and increasing the domestic production of food and energy.

He has also argued that the EU and NATO do not properly represent Romanian interests and claimed Russia’s war in Ukraine, a Romanian neighbor, is manipulated by American military companies.

In 2022, he claimed that the U.S. anti-missile shield located in the southern Romanian village of Deveselu is part of a confrontation policy and not a peaceful measure. Russian President Vladimir Putin has argued the same.

He said at the time that he had no support from Russia but felt close to its culture. He described Putin as “a man who loves his country.”

Georgescu also said he admired Hungary because it knows how to negotiate internationally.

Georgescu is a university professor and international consultant on sustainable development, who worked for different United Nations organizations for more than a dozen years.

More

Romania election stunner: Unexpected hard-right candidate surges in presidential vote – POLITICO

The further a society drifts from truth the more it will hate those who speak it.

George Orwell.

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.

Bosch slashes hours and wages as auto industry struggles

24 November 2024

Bosch, the largest supplier of automotive parts, will reduce working hours and cut salaries for 10,000 employees in Germany. This follows the recent announcement of 5,500 job cuts. These decisions are driven by increasing competition from China.

According to Reuters, Bosch, a leader in automotive parts production, has announced a reduction in working hours and pay for 10,000 employees in Germany.

The changes primarily affect those on 38—or 40-hour contracts, who will now work 35 hours per week. A company spokesperson confirmed this, as reported by the German agency dpa.

Crisis in the German automotive industry

Bosch's decision is a response to challenges in the German automotive industry, resulting from a weak economic climate and a decrease in demand for electric vehicles. The company had previously announced 5,500 redundancies, with the largest cuts impacting the department responsible for driver assistance systems.

Bosch employs around 130,000 individuals in Germany. Similar measures have been taken by other companies, such as Ford, which plans to cut 2,900 jobs by 2027, and Volkswagen, which has also announced wage reductions and factory closures.

Bosch slashes hours and wages as auto industry struggles

VW boss sticks to factory closure plans despite looming strike

23 November 2024

Volkswagen is sticking to its plans for factory closures in Germany even though the union has voted to go on strike in early December.

"We need to reduce our capacities and adjust to the new realities," chief executive officer of the VW brand, Thomas Schäfer, told Die Welt newspaper in an article published on Saturday.

Included in the cost-cutting moves were component locations and vehicle plants. When asked if VW could forgo shutting a factory, Schäfer said, "We do not currently see this."

Schäfer did not rule out the threatened redundancies either. Trimming the work force via retirements and severance offers "will not be enough" and would take too long, he said.

Schäfer thinks the reorganization should be done in three to four years to reposition the Volkswagen brand.

"There is no point in dragging out a restructuring until 2035. The competition would have left us behind by then," he said.

The aim is to return Volkswagen to the time of the mass-market passenger car segment, which Schäfer said will require placing Volkswagen on stable economic footing.

"Specifically, our capacities in Europe are too high. They were planned for a market of around 16 million vehicles per year, but now the car market in Europe has shrunk to 14 million," he said.

At the same time, VW is struggling with structural disadvantages in Germany including in labour costs. Schäfer said VW's labour costs in Germany are about twice as high as competitors - and as the company's own plants in southern and eastern Europe.

----The chief negotiator for the IG Metall trade union, Thorsten Gröger, did not provide details of when and where strikes would begin. But he threatened to mount a bitter labour struggle against the VW cuts.

"If necessary, it will be a labour dispute the likes of which Germany has not seen for decades," he said.

VW boss sticks to factory closure plans despite looming strike

Mass job losses as major factory owner moves business overseas

23 November 2024

A major New York tire factory that has operated for over a century is set to close after its executives moved its manufacturing overseas. 

Sumitomo Rubber USA, which owns tire maker Dunlop, fired 1,550 people this week as the Japanese company plans to close its Buffalo factory. 

The company did not announce plans at the same time to open a new factory, but said it made the 'difficult decision' because the New York manufacturer couldn't keep up with overseas prices. 

'The plant closure is primarily due to overall facility performance within the increasingly competitive international tire market,' Sumitomo said in a statement to Cycle News. 

'This difficult decision follows a multi-year analysis of the company’s financial situation and general market conditions.' 

Sumitomo said it has spent a staggering $140 million in recent years to modernize the plant, but the investment was not enough to rescue its struggling bottom line. 

Local lawmakers in the region quickly slammed the move and claimed the local government could have stepped in to save the jobs before they were lost. 

'It appears this decision was made by the Japanese owner’s board without any discussion with local and state officials about the possibility of closure,' Erie County Executive Mark Poloncarz said in response to the news. 

Poloncarz claimed that Sumitomo made no efforts to halt the closure of the factory through the local government. 

'At no point did Sumitomo ask for any additional assistance to remain in operation, despite the fact we have always supported their efforts to succeed here in Erie County with tax incentives and assistance through the Erie County Industrial Development Agency,' he said. 

More

Mass job losses as major factory owner moves business overseas

Stagflation is coming as Labour takes us back to the 1970s

22 November 2024

The Labour Government is intent on replicating the 1970s, the last time the party tried implementing the policies now being introduced. The rise in the annual consumer price index above the Bank of England’s two per cent target brought echoes of so-called “stagflation” across the decades. This phenomenon – a toxic mix of rising prices and stagnant or falling growth – is now very much in evidence.

Prices rose by 2.3 per cent in the year to October, up from 1.7 per cent, the sharpest increase for two years. It is attributed mainly to an increase in energy costs, another characteristic of the 1970s, though inflation then was in double figures.

Stagflation is a serious brake on economic ambition, because it makes investment less worthwhile and militates against risk-taking and entrepreneurialism. One way out is to stimulate the economy through tax cuts and deregulation but the Government is heading in the opposite direction. It is pumping money into the unproductive public sector without as yet offering any glimpses of reform.

Labour came to office promising to place growth at the heart of everything it does and yet its rhetoric is so far not matched by its actions. Ministers will say that given time the Budget measures will do what is required; but when the bills for public sector failure are being dumped on businesses and farmers it is hard to see how.

Even the Office for Budget Responsibility has predicted that growth will remain sluggish for years to come and the latest inflation figures have put paid to another early cut in interest rates. Revivals of the 1970s may be all the rage, but stagflation is one comeback to be avoided at all costs.

Stagflation is coming as Labour takes us back to the 1970s

Covid-19 Corner

This section will continue until it becomes unneeded.

More on an interesting development we covered earlier.

COVID-19 infections may actually shrink cancerous tumors, shock study reveals

Research led by Justin Stebbing, Anglia Ruskin University  Nov 22, 2024

A fascinating new study, published in the Journal of Clinical Investigation, has revealed an unexpected potential benefit of severe COVID infection: it may help shrink cancer.

This surprising finding, based on research conducted in mice, opens up new possibilities for cancer treatment and sheds light on the complex interactions between the immune system and cancer cells – but it certainly doesn’t mean people should actively try to catch COVID.

The data outlining the importance of the immune system in cancer is considerable and many drugs target the immune system, unlocking its potential, an important focus of my own research.

The study here focused on a type of white blood cell called monocytes. These immune cells play a crucial role in the body’s defense against infections and other threats. However, in cancer patients, monocytes can sometimes be hijacked by tumor cells and transformed into cancer-friendly cells that protect the tumor from the immune system.

What the researchers discovered was that severe COVID infection causes the body to produce a special type of monocyte with unique anti-cancer properties. These “induced” monocytes are specifically trained to target the virus, but they also retain the ability to fight cancer cells.

To understand how this works, we need to look at the genetic material of the virus that causes COVID. The researchers found that these induced monocytes have a special receptor that binds well to a specific sequence of COVID RNA. Ankit Bharat, one of the scientists involved in this work from Northwestern University in Chicago explained this relationship using a lock-and-key analogy: “If the monocyte was a lock, and the COVID RNA was a key, then COVID RNA is the perfect fit.”

To test their theory, the research team conducted experiments on mice with various types of advanced (stage 4) cancers, including melanoma, lung, breast, and colon cancer. They gave the mice a drug that mimicked the immune response to a severe COVID infection, inducing the production of these special monocytes. The results were remarkable. The tumors in the mice began to shrink across all four types of cancer studied.

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COVID-19 infections may actually shrink cancerous tumors, shock study reveals

Covid very likely came from a Chinese lab leak and there was 'obviously' a cover-up by Beijing, British expert says

Professor Tim Spector warned of a repeat of the pandemic 'if we're not careful'

Published: 09:44, 22 November 2024 | Updated: 13:08, 22 November 2024

Covid most likely came from a lab leak in China and its origins were 'obviously' the subject of a cover-up by Beijing, a top British epidemiologist has said.

Professor Tim Spector, who co-created the Zoe symptom tracker app and was given an OBE for his work during the pandemic response, questioned whether the virus could have been manipulated by scientists before it was allegedly leaked.

'I don't think there's any doubt that this virus emanated in China, in a place near Wuhan,' The King's College London epidemiology professor told the Zoe podcast.

'The question is, did this come from bats? Did it come from a lab that was working on this virus and manipulating it to make it grow faster? Or was it a totally artificially generated virus to?'

Covid-19 emerged in Wuhan, central China, with differing theories among scientists over whether it could have come from the Wuhan Institute of Virology (WIV) or a wet market in the region.

Debate has raged about the source of the pandemic that claimed 7 million lives globally and more than 200,000 in the UK. 

The theory that it was a lab leak gained traction after being shared by the chief of the FBI, who stated last year that the origins of the pandemic 'are most likely a potential lab incident'.

Professor Spector said that Covid has proven that labs across the world should be more strictly monitored and be treated with the same seriousness as a nuclear threat, warning that it 'could happen again in another lab if we’re not careful.'

He also highlighted claims at US congressional hearings that Chinese and American labs had worked together to study the infectiousness of coronaviruses and how to 'control or speed them up'.

Describing a potential cover-up, he pointed to 'the trail of shredded documents and email exchange between the US and China at the time.'

He added that 'there was a very obvious cover-up very early on by various governments saying we have to get a report out there saying this is all down to bats so people aren't going to blame labs and scientists to keep that credibility going.'

'I don't think the idea that someone built a virus from scratch would be very easy to do. So I think it's more likely that was a mistake rather than anything deliberate, but I think these were people working with hazardous viruses that got out of control rather than it being a plot,' he said.' 

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Covid very likely came from a Chinese lab leak and there was 'obviously' a cover-up by Beijing, British expert says | 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.

Graphene extends batteries life and efficiency

Coating lithium batteries with graphene extends its life and performance

By Jay Kakade  23 Nov, 2024

Since Lithium-ion batteries have witnessed a growing application in portable electronics and electric vehicles, researchers are keen to improve their performance and cost further. In those efforts, researchers have made a promising discovery to enhance the life and performance of these batteries.

With its cheap and energy-efficient performance, Lithium-ion batteries have revolutionized the use of electricity. Any battery works by creating chemical energy between the cathode and the anode, and converting it into electricity.

As the chemicals in the two ends of the battery are utilized over time, it may not completely recover to its original state. The more times we charge the batteries, the less batteries we have left.

The foremost challenge in battery use is the dissolution of transition metals from the cathode material. Such dissolution results in unwanted side reactions, which eventually stick to the anode, thereby reducing anode performance.

Therefore, cobalt-bearing cathodes are preferred instead of manganese cathodes. However, cobalt is a relatively expensive and scarce metal. In between the search for better alternatives, Graphene enters into play.

In a collaboration, Caltech and Jet Propulsion Laboratory have proposed a novel method to coat lithium-ion battery cathodes with graphene. This not only improved battery performance, but also reduces its reliance on scarce metals like Cobalt.

Since graphene is an allotrope of carbon, it offers better capacity, cycling stability, and capacity retention. Additionally, it’s readily available and more effective than metals like Silicon.

The widespread use of graphene wasn’t possible until Caltech senior research scientist David Boyd discovered that graphene could be produced at room temperature. Before this discovery, graphene production required temperatures up to 1,000 degrees.

Following this breakthrough, the collaborated work successfully demonstrated the improved performance and suppression of transition-metal dissolution.

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Graphene extends batteries life and efficiency

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

World Debt Clocks (usdebtclock.org)

An optimist will tell you the glass is half-full; the pessimist, half-empty; and the engineer will tell you the glass is twice the size it needs to be.

Oscar Wilde.

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