Tuesday, 12 November 2024

The Trump Bubble Expands. A Rapidly Polarising World

Baltic Dry Index. 1568 +63            Brent Crude  71.61

Spot Gold 2607                 US 2 Year Yield 4.26  Friday

At the heart of capitalism is creative destruction.

Joseph A. Schumpeter.

In the US stock casinos and crypto currency fantasy universe, the Trump Bubble bubbles along, to infinity and beyond.

Elsewhere, less mania more realism.

Rising economic troubles in China, Asia, Germany and Europe and in the UK from a jobs and profits killing socialist budget.

In the USA real economy, later this week the official Federal Debt will hit 36 trillion on a GDP of roughly 29.3 trillion.  And the USA isn’t at war, in recession (yet?,) and is about to go deeply further into debt in the next four years. The debt was “only” 33 trillion last November.

Something will likely break ahead. Look away from that struggling oil price now.

Asia-Pacific markets mostly fall as U.S. postelection rally fails to lift regional optimism

Updated Tue, Nov 12 2024 12:06 AM EST

Asia-Pacific markets were mostly fell Tuesday, with investors exercising caution even as the Dow Jones Industrial Average’s post-election rally continued to gain momentum to close at a record high.

Hong Kong’s Hang Seng index slipped 1.96%, while the CSI 300 was 0.41% higher. Australia’s S&P/ASX 200 was 0.1% lower. South Korea’s Kospi fell by 1.28%, while the Kosdaq Index dropped 2.26%.

Japan’s Nikkei 225 slipped 0.92% while the Topix traded around the flatline.

Traders in Asia-Pacific is also parsing a swathe of economic data in the region, including a survey from the National Australia Bank on business conditions and Indonesia’s retail sales in September.

India will be reporting its consumer price index for October, and oil cartel OPEC is also set to release its monthly oil market report later in the day.

The Dow Jones Industrial Average surged more than 300 points on Monday and closed at a record high as the benchmark’s postelection rally pressed forward.

The 30-stock Dow gained 304 points, or 0.69%, to 44,293.69. It’s rise brought the index above 44,000 for the first time. The S&P 500 added 0.1% to end the day at 6,001.35 and also earned a record close by surpassing 6,000 for the first time. However, the Nasdaq Composite hovered near the flatline, up 0.06% to 19,298.76.

Bitcoin surged above $87,000, boosted by hopes of deregulation as well. Crypto related stocks Coinbase and Mara Holdings rallied 20% and 30%, respectively.

Asia markets live: India CPI, NAB survey, Indonesia retail sales

European markets head for a lower open as traders await inflation data

Updated Tue, Nov 12 2024 12:52 AM EST

European markets are heading for a lower open Tuesday, as investors assess what U.S. President-elect Donald Trump’s return to the White House could mean for the region’s economy amid worries about possible tariffs.

The U.K.’s FTSE 100 index is expected to open 18 points lower at 8,054, Germany’s DAX down 93 points at 19,355, France’s CAC down 34 points at 7,392 and Italy’s FTSE MIB down 157 points at 33,659, according to data from IG.

Investors will scrutinize a fresh batch of economic data this week, including an inflation reading from Germany on Tuesday, and U.S. inflation and U.K. gross domestic product on Thursday.

Infineon, Bayer, Vodafone and AstraZeneca will report earnings, while U.K. unemployment and European and German ZEW economic sentiment figures are also due today.

Asia-Pacific markets mostly fell overnight with investors exercising caution even as US. stocks continued their postelection rally, with key benchmarks closing at record highs. U.S. stock futures were near flat early Tuesday.

Europe markets live updates: stocks, news, data and earnings

Does Warren Buffett Know Something That We Don’t?

Berkshire Hathaway is hoarding cash in a pattern seen before the financial crisis, but it has a new reason this time

Nov. 11, 2024 5:30 am ET

When the world’s most-followed investor doesn’t feel comfortable investing, should the rest of us be worried?

Warren Buffett, who has quipped that his favorite holding period for a stock is “forever,” continues to have substantial money at work in American companies. But he has never taken this much off the table either—a whopping $325 billion in cash and equivalents, mostly in the form of Treasury bills.

To appreciate the immensity of that hoard, consider that it would allow Berkshire to write a check, with change left over, for all but the 25 or so most-valuable listed U.S. corporations—iconic ones such as Walt Disney, Goldman Sachs GS 2.22%increase; green up pointing triangle, Pfizer, General Electric or AT&T. In addition to letting the dividends and interest pile up on its balance sheet, the conglomerate has aggressively sold down two of its largest shareholdings, Apple and Bank of America, in the past several months. And, for the first time in six years, it has stopped buying more of the stock it knows best—Berkshire Hathaway BRK.B 0.85%increase; green up pointing triangle.

Does that mean mere investing mortals should be cautious about the market? Maybe, but it tells us even more about Berkshire.

----Yet the seemingly always optimistic and patient Buffett has turned cautious before, famously shutting his extremely successful partnership in 1969 when he said markets were too frothy and also building up substantial cash in the years leading up to the global financial crisis—money he deployed opportunistically.

“He’s cognizant of the fact that markets gyrate and go to extremes,” says Adam J. Mead, a New Hampshire money manager and Buffetologist who is the author of “The Complete Financial History of Berkshire Hathaway.”

Stock values being stretched doesn’t mean they are on the precipice of a crash or even a bear market. Instead, zoom out and look at what today’s valuations say about returns over the next several years, which will include both good and bad periods. Goldman Sachs strategist David Kostin predicted recently that the S&P 500’s return over the next decade would average just 3% a year—less than a third of the postwar pace.

More

Does Warren Buffett Know Something That We Don’t? - WSJ

Finally, our rapidly polarising world order.

Saudi Crown Prince condemns Israel’s attacks on Palestinians as ‘genocide’ during summit

11 November 2024

Saudi Arabia’s crown prince and de facto ruler condemned what he called the “genocide” committed by Israel against Palestinians when he spoke at a summit of Muslim and Arab leaders on Monday.

“The Kingdom renews its condemnation and categorical rejection of the genocide committed by Israel against the brotherly Palestinian people,” Crown Prince Mohammed bin Salman said at an Arab Islamic summit, echoing comments by Saudi Foreign Minister Faisal bin Farhan Al Saud late last month.

He urged the international community to stop Israel from attacking Iran and to respect Iran’s sovereignty.

The crown prince said in September the kingdom would not recognize Israel unless a Palestinian state were created.

U.S. President Joe Biden’s administration had sought to broker a normalization accord between Saudi Arabia and Israel that would have included U.S. security guarantees for the kingdom, among other bilateral deals between Washington and Riyadh.

Those normalization efforts were put on ice after the Oct. 7, 2023, attack on Israel by Hamas militants from Gaza and Israel’s subsequent retaliation.

In a press conference later on Monday, Arab League Secretary General Ahmed Aboul Gheit pointed to an article in a concluding statement to the summit that moved to freeze Israel’s membership in the U.N. General Assembly.

He stated that freezing membership would not come under the Security Council’s jurisdiction and could be decided by the General Assembly.

“We might witness soon the freezing of the membership (of Israel) through a UNGA majority decision,” said Aboul Gheit.

The summit’s concluding statement demanded all countries ban exports or transfers of weapons and ammunition to Israel and urged the International Criminal Court to issue arrest warrants for civilian and military officials in Israel.

Israel’s military assault on Gaza in the last 13 months has killed tens of thousands, displaced nearly its entire population, caused a hunger crisis and led to allegations of genocide at the World Court, which Israel denies.

Saudi Crown Prince condemns Israel’s attacks on Palestinians as ‘genocide’ during summit - The Globe and Mail

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.

German industry sees worst slump in orders since 2009, institute says

11 November 2024

The German economy is suffering from the worst recorded slump in orders since the 2009 financial crisis, a top economic institute suggested on Monday.

The Munich-based ifo Institute said 41.5% of German companies reported a lack of orders in October, up from 39.4% in the last survey in July.

The quarterly figure is higher than the institute recorded at any point during the coronavirus pandemic.

"The lack of orders is continuing to hinder economic development in Germany," said ifo economist Klaus Wohlrabe. "Hardly any industry has been spared."

Some sectors were hit harder than others, with almost half of manufacturing companies (47.7%) seeing a lack of orders.

Among companies manufacturing basic metals, 68.3% recorded a lack of orders, as did 59.9% of metal products manufacturers.

Germany's key automotive and chemical industries saw around 44% of businesses report a lack of orders.

The trade sector also recorded its highest rate of companies seeing a lack of orders since at least 2006, at 65.5%. Among retail companies, the figure was 56.4%.

The situation among service providers was somewhat better, with only 32.1% reporting a lack of orders, up from 31.2%.

Recruitment agencies were particularly badly hit, Wohlrabe said, because "temporary workers are less in demand."

In contrast, legal and tax consultants, as well as auditors, were more positive about their situation as a result of "high levels of bureaucracy and regulation," the institute said.

German industry sees worst slump in orders since 2009, institute says

US recession coming in 2025? How will it affect the stock markets? Here's how to navigate it

9 November 2024

The US stock market is still in a bull run for the better part of two years, with the S&P 500 currently up by more than 60 per cent from its lowest point in October 2022 followed by Nasdaq's 76 per cent surge in the similar timeline.

However, after this rapid ascension, US investors are worried that a market slump could be looming ahead and possible nationwide recession may even be a strong possibility.

Predicting the future of the current market scenario is extremely tough at this point as economy experts may not be able to say for certain where the US economy is headed. In August 2024, JP Morgan & Chase analysts had revealed that there are major chances of an American recession by the end of the year. The same report has also carried the statement of a probability of a recession by the end of 2025, which now stands at 45%.

However, the biggest example that these predictions may not be accurate at all times would be a report by Deutsche Bank analysts from June 2023, where it was claimed that there was a 100 per cent chance that the American economy could face US recession by the end of that year. But, things did not happen as predicted and instead, the market conditions changed rapidly, and even S&P 500 rallied by nearly 35% since then.

The US stock market could be very unpredictable and intimidating at the same time, and timing may not matter much as it is very difficult to understand what the future has in store for the markets. Therefore there is no way to say that a American recession is not on its course of arrival. However, taking necessary precautions and preparations around the same would be a healthy idea for US investors.

FAQs:

Could the US economy see a recession soon? Some latest economy reports are cleaning that the US economy may soon witness a recession, but it still cannot be asserted during which timeline it may arrive.

Is the S&P 500 value surging? The S&P 500's value is constantly increasing over time and has soared by more than 60% from its December 2022 values.

US recession coming in 2025? How will it affect the stock markets? Here's how to navigate it

Covid-19 Corner

This section will continue until it becomes unneeded.

AI tool spots long COVID in electronic health records

11 November, 2024

Researchers in the US have developed an artificial intelligence algorithm that can sift through electronic health records (EHRs) and help physicians to detect undiagnosed cases of long COVID.

Along with identifying people who should be receiving care for the potentially debilitating condition, the algorithm could also be used to try to find the genetic and biochemical factors behind the still-mysterious condition, which causes a range of symptoms including extreme tiredness, shortness of breath, chest pain, problems with memory, difficulty sleeping, heart palpitations, and dizziness.

According to the US Centers for Disease Control and Prevention (CDC), approximately 7.5% of the adult population of the US have symptoms of long COVID, which works out at 24.75 million individuals.

The new algorithm – developed by investigators at Mass General Brigham and published in the journal Med – was trained on de-identified data from EHRs of nearly 300,000 patients across 14 hospitals and 20 community health centres.

It uses an approach known as 'precision phenotyping', which goes through individual records to identify symptoms and conditions linked to COVID-19 and tracks them over time to differentiate them from other illnesses like asthma or heart failure. The algorithm identified a cohort of over 24,000 patients with 79.9% precision, according to the paper, and also suggested that the risk of long COVID increases with subsequent infections.

"Our AI tool could turn a foggy diagnostic process into something sharp and focused, giving clinicians the power to make sense of a challenging condition," said senior author Hossein Estiri, who is head of AI research at the Centre for AI and Biomedical Informatics of the Learning Healthcare System (CAIBILS) at Mass General Brigham, as well as an associate professor of medicine at Harvard Medical School.

"With this work, we may finally be able to see long COVID for what it truly is – and more importantly, how to treat it," he continued, noting that the AI seems to be about 3% more accurate than current diagnostic approaches based on the International Classification of Diseases code for long COVID (ICD-10), but more importantly is less prone to bias.

In particular, diagnoses of patients using ICD-10 tend to favour individuals with better access to healthcare, putting less fortunate people at a disadvantage, so the AI tool could help reduce inequities in care.

"This broader scope ensures that marginalized communities, often sidelined in clinical studies, are no longer invisible," said Estiri.

Long COVID – or post-acute sequelae of COVID-19 (PASC) to give it the scientific term – may also be a lot more common than estimated by the CDC, according to the researchers. Their work suggests that figure could be 22.8%, not too far off the National Centre for Health Statistics estimate of 24% for Massachusetts, which is based on 2022-23 data.

Future studies may explore the algorithm in cohorts of patients with specific conditions, like chronic obstructive pulmonary disease (COPD) or diabetes. In the meantime, the team plans to make its algorithm open-access so it can be deployed by other healthcare systems.

AI tool spots long COVID in electronic health records | pharmaphorum

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.

UK’s largest grid-connected battery goes live

Lakeside Energy Park’s 100MW battery storage facility, developed by TagEnergy and connected by National Grid at the Drax substation, has become the UK’s largest transmission-connected battery

Dimitris Mavrokefalidis  11/11/2024 8:50 AM

Lakeside Energy Park’s battery storage facility, developed by TagEnergy and now connected to the National Grid at North Yorkshire’s Drax substation, is the largest of its kind in the UK.

With a capacity of 100MW, the newly energised facility marks a major step forward in supporting Britain’s transition to clean energy.

The project was completed by National Grid in partnership with Omexom, who modified the Drax substation to safely accommodate the new power flows.

Upgrades included busbar extensions, enhanced protection and control systems, and a new operational tripping scheme – all designed to ensure secure operation of the grid as clean energy capacity grows.

The Drax substation, originally constructed to serve a coal plant in the 1970s, now hosts the nation’s largest biomass power station and the Eastern Green Link 2 superhighway, set to bring clean energy from Scotland by 2029.

UK’s largest grid-connected battery goes live - Energy Live News

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

World Debt Clocks (usdebtclock.org)

One of the greatest pieces of economic wisdom is to know what you do not know.

John Kenneth Galbraith.


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