Thursday, 23 January 2025

Stocks, Beijing Orders Buy! Why Now?

Baltic Dry Index. 893 -35            Brent Crude 78.74

Spot Gold 2754               US 2 Year Yield 4.29  unch.  

US Federal Debt. 36.385 trillion!

The intelligent investor is a realist who sells to optimists and buys from pessimists.

Benjamin Graham.

In the stock casinos, Beijing says buy more!

Our stock casino led world now depends on communist stock pickers in Beijing, apparently, what could possibly go wrong with this?

Look away from the South Korean, German, UK and other recession prone economies now.

China’s CSI 300 leads gains in Asia-Pacific as Beijing urges institutional investors to buy stocks

Updated Thu, Jan 23 2025 12:22 AM EST

Asia-Pacific markets traded mixed Thursday as investors assessed a slew of economic data in the region, with China stocks leading gains.

Hong Kong’s Hang Seng index rose 0.24%, while the CSI 300 climbed 1.01%. China’s financial regulators on Thursday urged large state-owned mutual funds and insurers to purchase more shares, as Beijing seeks to bolster its faltering stock market.

Australia’s S&P/ASX 200 traded 0.72% lower.

Japan’s Nikkei 225 rose 0.84%, while the Topix added 0.6%.

South Korea’s Kospi fell 0.78% and the Kosdaq traded 0.76% lower. South Korea’s economy expanded 1.2% year on year in the fourth quarter, marking its slowest expansion since the second quarter of 2023.

Singapore is expected to report its inflation numbers for December. The Bank of Japan is also holding its next policy meeting today and tomorrow, where the BOJ governor Kazuo Ueda had signaled intentions to hike rates.

Overnight in the U.S., the three major averages advanced, with the S&P 500 hitting a fresh all-time high as technology shares such as Oracle and Nvidia rallied on artificial intelligence optimism and President Donald Trump’s new term in office.

The S&P 500 advanced 0.61% after hitting an intraday record of 6,100.81, exceeding the last milestone touched in December before the market pullback. The broad index closed at 6,086.37, slightly below its all-time closing high.

The Nasdaq Composite popped 1.28% to 20,009.34, underscoring the outperformance of tech names. The Dow Jones Industrial Average rose 130.92 points, or 0.3%, to 44,156.73, boosted by Procter & Gamble’s gain of nearly 2% on the back of strong earnings.

Asia markets live: South Korea GDP, Japan trade, Singapore CPI

Stocks close higher, S&P 500 touches fresh record, bolstered by Trump optimism: Live updates

Updated Wed, Jan 22 2025 4:18 PM EST

Stocks climbed on Wednesday, with the S&P 500 hitting a fresh all-time high, as technology shares such as Oracle and Nvidia rallied on artificial intelligence optimism and President Donald Trump’s new term in office.

The S&P 500 advanced 0.61% after hitting an intraday record of 6,100.81, exceeding the last milestone touched in December before the market pullback. The broad index closed at 6,086.37, slightly below its all-time closing high.

The Nasdaq Composite popped 1.28% to 20,009.34, underscoring the outperformance of tech names. The Dow Jones Industrial Average rose 130.92 points, or 0.3%, to 44,156.73, boosted by Procter & Gamble’s gain of nearly 2% on the back of strong earnings.

Stocks surged on strong earnings reports, with Netflix jumping more than 9% after the company surpassed 300 million paid memberships. Its fourth-quarter earnings and revenue also topped analyst expectations. The streamer’s results got a boost from hit series “Squid Game” and live sporting events such as the Jake Paul and Mike Tyson boxing match.

Oracle shares jumped more than 6% and Nvidia climbed more than 4% as investors continued to pile into the AI trade following an announcement from the new White House. President Trump announced a joint venture dubbed “Stargate” on Tuesday, with OpenAI, Oracle and Softbank to invest ″$500 billion, at least” in AI infrastructure within the United States.

“The combination of a resilient economy, easing inflation, stabilization in interest rates, an earnings season off to a strong start, and less day-one focus on tariffs by President Trump has provided a solid backdrop for the market,” said Keith Lerner, Truist’s co-chief investment officer. “Tech is reasserting its leadership on the back of the Stargate project, which highlights the secular tailwinds and transformative potential of AI.”

“Today is yet another reminder that the dominant theme of this bull market is artificial intelligence and technology,” Lerner added.

More

Stock market news for Jan. 22, 2025

European markets head for lower open, reversing positive sentiment seen all week

Published Thu, Jan 23 2025 12:34 AM EST

LONDON — European stocks are expected to open lower Thursday, reversing positive momentum seen throughout the week.

The U.K.’s FTSE index is expected to open 25 points lower at 8,516, Germany’s DAX down 8 points at 21,251, France’s CAC 40 down 8 points at 7,828 and Italy’s FTSE MIB 59 points lower at 35,973, according to data from IG.

The expected turn lower comes after Germany’s DAX hit an all-time high for the second time this week on Wednesday. Sportswear giant Adidas helped boost the German index, with shares ending 6% higher after the company said sales grew by 19% in its fourth-quarter results.

On Thursday, investors will likely be tuning in to President Donald Trump’s keynote address at the World Economic Forum in Davos, Switzerland, on Thursday. The newly inaugurated president is due to address the WEF via video link at 5 p.m. Davos time.

Participants and observers around the world will be listening to his speech carefully for any more details on his widely publicized pledge to introduce universal tariffs on goods imported to the United States, and for his position on major geopolitical and economic issues such as the Ukraine-Russia war, the future of Israeli-Palestine relations and economic rivalry with China.

Other high-profile figures due to speak on Thursday include Javier Milei, the president of Argentina, who’s due to speak at 10:15 a.m. local time.

CNBC guest highlights include the CEOs of Vestas, Schneider Electric, Siemens, Rio Tinto, Carlsberg and SAP. We’ll also be speaking to Mathias Cormann, the secretary-general of the OECD, senior European Commission official Stéphane Séjourné, German Finance Minister Jörg Kukies and Khalid Al Falih, Saudi Arabia’s investment minister, among many others.

CNBC-moderated panels will include a debate on the technology revolution, featuring Antonio Neri, the CEO of HP, as well as the CEOs of Octopus Energy and iGenius.

Europe markets: stocks, news, data and earnings

In other news., President Mr. Magoo?

Greenland's prime minister slams Donald Trump and says 'we don't want to be Americans'

21 January 2025

Greenland’s prime minister has insisted his nation “does not want to be American” as he took a shot at Donald Trump.

The newly inaugurated president has threatened several times he wants to make the Danish territory part of the US for “international security”. His comments have been met with scorn from the international community, as he has not ruled out using military power to persuade Denmark to cede the territory.

Now, a day after Trump took to the oath, Greenland’s prime minister has insisted his country has no interest in becoming the 51st state. He told Politico : “We are Greenlanders. We don’t want to be Americans. We don’t want to be Danish either. Greenland’s future will be decided by Greenland.”

“It is very understandable people are worried. But the most important thing now is people remain calm, we must be able to meet and talk about this calmly.”

“You can’t get around the fact that if they [the U.S.] want to talk about Greenland, they have to talk to Greenland.”

Germany and France previously condemned the president's refusal to rule out military action to seize the autonomous Danish territory, escalating fears of a global crisis.

German Chancellor Olaf Scholz said: “the principle of the inviolability of borders applies to every country... no matter whether it’s a very small one or a very powerful one.”

Trump’s obsession with making Denmark part of the US is the fifth time the United States has set its eyes on the island. It established an airbase in Greenland during the Cold War.

Trump previously said: “Greenland is necessary not for us, it’s necessary for international security. You have Russian boats all over the place, you have China ’s boats all over the place — warships — and they [Denmark] can’t maintain it.”

More

Greenland's prime minister slams Donald Trump and says 'we don't want to be Americans'

Donald Trump seems to confuse Spain with South Africa: ‘You’ll figure it out’

22 January 2025

US President Donald Trump has left some in Spain confused after seeming to get the S in the acronym ‘Brics’ confused.

On his first day, the president said Spain is a member of the Brics bloc of developing economies, causing some head-scratching and jitters over possible tariffs in Madrid.

Spain is not in Brics. It is an acronym for Brazil, Russia, India, China and South Africa.

Mr Trump erroneously said Spain was in Brics when a journalist asked him about Nato countries like Spain which do not meet the Nato minimum of spending 2% of economic output on defence. Spain ranked last in the 32-nation military alliance, estimated to spend 1.28% on defence last year.

Mr Trump started his answer by saying “Spain is very low,” referring to its defence expenditures, but quickly veered into speaking about Brics.

“They’re a Brics nation, Spain. Do you know what a Brics nation is? You’ll figure it out,” he told the reporter from the presidential desk in the Oval Office.

It is a member of Nato, along with the US, and of the European Union.

Mr Trump repeated his threat to put costly tariffs on Brics, saying “we are going to put at least a 100% tariff on the business they do with the United States,” part of his economic plans that would overturn decades of free trade consensus.

Spanish education minister Pilar Alegria, who acts as a spokeswoman for the government, said she was not sure why Mr Trump made the comment.

“I don’t know if the affirmation made by president Trump was the result of a mix-up or not, but I can confirm that Spain is not in Brics,” Ms Alegria told reporters on Tuesday.

Spain is one of eight countries that failed to meet Nato’s 2% spending target last year. Mr Trump has said he wants Nato members to reach 5% spending on defence.

Spain is not the only foreign country left confused by Trump’s first day. During a speech the President vexed New Zealanders after he claimed that America split the atom – a feat achieved by Sir Ernest Rutherford from Nelson in New Zealand.

Mr Trump was highlighting America’s achievements during his swearing-in ceremony for his second term in the White House when he gave credit to the US for the historic achievement by the revered physicist.

Mr Trump was called out on social media by Nick Smith, the mayor of the city of Nelson near where the physicist grew up, who said he was surprised by the US president making such a claim.

“I was a bit surprised by new president Donald Trump in his inauguration speech about US greatness claiming today Americans split the atom when that honour belongs to Nelson’s most famous and favourite son Sir Ernest Rutherford,” Mr Smith said.

Donald Trump seems to confuse Spain with South Africa: ‘You’ll figure it out’

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.

South Korea GDP misses estimates as weak consumption, construction sector drive growth to 6-quarter low

Published Wed, Jan 22 2025 6:18 PM EST

South Korea’s fourth-quarter GDP missed estimates Thursday, with weakness in consumption and the construction sector driving growth to a six-quarter low of 1.2%, year on year.

Advance figures missed the 1.4% expansion expected by economists polled by Reuters, and the growth was also softer compared with the 1.5% rise seen in the third quarter of 2024.

On a quarter-on-quarter basis, GDP growth also missed expectations, with the economy growing just 0.1% compared to the 0.2% forecast in the Reuters poll.

However, full-year GDP growth for 2024 came in at 2% compared with last year’s 1.4% gain.

The South Korean won weakened 0.13% to 1,436.4, while the country’s benchmark stock index Kospi fell 0.47%.

The Bank of Korea said that in 2024, private consumption growth fell and investment in the construction sector declined, but government consumption, facility investment, and exports growth rose.

The BOK also said that growth in the services as well as construction industry decreased, but manufacturing industry grew at a faster rate compared to last year.

“We suspect that the weakness in activity could persist in the near term due to the ongoing political crisis and the bleak outlook for the construction sector,” Shivaan Tandon, markets economist at economic data provider Capital Economics said a note after the GDP release.

Domestic demand remains the main source of the weakness in the economy, Tandon said, pointing out that sequential growth in consumer spending slowed to just 0.2% from 0.5% in the third quarter.

More

South Korea GDP misses estimates as weak consumption, construction sector drive growth to 6-quarter low

Barclays ups mortgage rates - as one broker calls for Government to intervene to avoid 'messy recession'

·         Rising swap rates have driven mortgage rates higher across the market 

Updated: 13:34, 21 January 2025

Another major bank is increasing interest rates on its fixed mortgage deals. 

From tomorrow, Barclays is increasing rates by 0.2 percentage points across the bulk of its fixed deals aimed at home buyers and those remortgaging.

At the same time, it is reducing some of its buy-to-let rates by 0.45 percentage points for existing borrowers. 

This move by Barclays follows hot on the heels of Santander, HSBC, TSB and Leeds Building Society, which all announced they were increasing costs on their home loan deals last week.

The rise in mortgage rates is largely due to Sonia swap rates, which have been rising in recent weeks.

Sonia swap rates, the rates at which banks trade streams of interest payments with each other to mitigate risk, reflect lenders' expectations of future interest rates and play a critical role in how fixed-rate mortgages are priced.

Speaking to the news agency, Newspage, Justin Moy, managing director at broker EHF Mortgages said the Government should intervene to bring costs down for borrowers. 

'Barclays is one of the last lenders to increase rates in light of recent swap rate trends, which aligns them with many of their high-street peers,' he said. 

'The Government needs to intervene to bring the cost of borrowing down before we head into a messy recession in the months to come.'

What mortgage rates is Barclays changing? 

Barclays' cheapest two-year fix for people buying with at least a 40 per cent deposit will go from 4.23 per cent to 4.43 per cent. The deal comes with a £899 product fee.

On a £200,000 mortgage being repaid over 25 years, that's the difference between paying £1,081 a month and £1,104 a month. 

The lowest two-year fixed remortgage rate with Barclays is rising to 4.47 per cent, with a £999 fee. 

More

Barclays ups mortgage rates - as one broker calls for Government to intervene to avoid 'messy recession' | This is Money

Covid-19 Corner

This section will continue until it becomes unneeded.

Antidepressant fluoxetine found ineffective for early COVID-19 treatment

22 January 2025

Evidence shows weak antiviral activity and no improvement in symptom outcomes.

In a recent study published in eClinicalMedicine, researchers characterized the antiviral activity of a selective serotonin reuptake inhibitor (SSRI), fluoxetine, in early coronavirus disease 2019 (COVID-19).

Background

SSRIs are widely used antidepressants that are readily available and affordable worldwide. Observational studies reported that patients taking fluoxetine had lower mortality when hospitalized for COVID-19.

Later studies supporting this observation suggested that SSRIs may also confer prophylactic benefits. SSRIs may exert antiviral action through the functional inhibition of acid sphingomyelinase (FIASMA).

While most studies have focused on another SSRI (fluvoxamine), fluoxetine has the most favorable pharmacokinetic properties, the highest FIASMA activity in vitro, and the best tolerability profile.

Conducting randomized trials to assess the prevention of hospitalization or death in symptomatic COVID-19 outpatients is no longer feasible, as was possible during the pandemic.

About the study

In the present study, researchers assessed the antiviral efficacy of fluoxetine in early COVID-19. If they had early symptomatic COVID-19, individuals aged 18–50 were enrolled in an ongoing, phase 2, randomized, controlled adaptive platform trial (PLATCOV).

Pregnant individuals, subjects taking antivirals or other medicines, and those with morbidity, chronic illness, hematological abnormalities, or contraindications to study drugs were excluded.

The fluoxetine arm was added to the platform in April 2022 in Thailand, June 2022 in Brazil, December 2022 in Laos, and February 2023 in Pakistan and was removed in May 2023. Patients were randomized to one of the 11 treatment arms.

----Findings

In total, 675 patients were randomized to intervention arms. Of these, 120 were randomized to the fluoxetine arm, 151 to the no-study drug arm, and the remaining patients were randomized to other interventions.

Most patients (90%) were recruited in Thailand. The median interval since the onset of symptoms was two days. The mean SARS-CoV-2 eluate density was 350,000 genomes/ml. SARS-CoV-2 Omicron BA.5, BA.2, and BA.2.75 were the most common infecting variants.

Fluoxetine recipients reported higher somnolence than the no-study drug group. Two patients did not complete the fluoxetine course. No serious adverse events, hospitalizations, or deaths occurred. Moreover, the time to symptom or fever resolution was not significantly different between the fluoxetine and no-study drug arms.

Fluoxetine recipients had a 15% faster viral clearance, on average, than the no-study drug arm. The median viral clearance half-life was 14 hours in the fluoxetine arm and 14.9 hours in the no-study drug group.

A post hoc sensitivity analysis estimating fluoxetine’s treatment effect using data from the first five days post-randomization showed a substantially larger treatment effect (at 26%).

In addition, a meta-analysis of all drugs and antibodies was performed using individual patient data. This revealed that fluoxetine increased clearance by 16% relative to the no-study drug arm. It also had a greater clearance rate relative to favipiravir and ivermectin.

However, fluoxetine’s treatment effect was lower than that of remdesivir, ritonavir-boosted nirmatrelvir, casirivimab/imdevimab, and molnupiravir.

More

Research: Fluoxetine not effective for COVID-19 patients

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.

Taiwanese researchers unveil 31.5%-efficient perovskite-silicon tandem solar cell

The cell utilizes a heterojunction device as the bottom cell and a perovskite top cell integrating a hole transport layer made of nickel(II) oxide and methyl-substituted carbazole.

January 22, 2025

Taiwan's Academia Sinica announced that a group of its researchers has developed a two-terminal (2T) perovskite-silicon tandem solar cell with a power conversion efficiency of 31.5%.

“In the future, the research team will further optimize the manufacturing process, enlarge the cell area, improve the stability of the stacked components, and develop a manufacturing method that is more suitable for mass production,” the research institute said in a statement. “We achieved a high efficiency by reducing interface losses.”

The research group utilized an unspecified heterojunction (HJT) crystalline solar cell technology for the bottom device.

Furthermore, it used a top perovskite solar cell built with a substrate made of indium tin oxide (ITO), a hole transport layer (HTL) made of nickel(II) oxide (NiOx) and phosphonic acid called methyl-substituted carbazole (Me-4PACz), a perovskite absorber, a buckminsterfullerene (C60) electron transport layer (ETL), a tin oxide (SnOx) buffer layer, a transparent back contact made of indium zinc oxide (IZO), a silver (Ag) metal contact, and an anti-reflective coating based on magnesium fluoride (MgF2).

We will continue to work closely with domestic academic research institutions and manufacturers to jointly develop this cell technology,” the research team, without revealing more technical details on the novel cell concept.

Chinese manufacturer Longi holds the world record for perovskite-tandem solar cell efficiency, achieving 34.6% efficiency in September. In 2023, Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) announced a perovskite-silicon tandem device with an efficiency of 33.7%.

Researchers from Germany’s Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) recently said that the practical power conversion efficiency potential of perovskite-silicon tandem solar cells could reach up to 39.5%. Researchers said exceeding this efficiency threshold requires a change in cell architecture, replacing buckminsterfullerene (C60) with a more transparent electron transport layer, and finding more transparent alternatives to indium tin oxide (ITO) layers.

Taiwanese researchers unveil 31.5%-efficient perovskite-silicon tandem solar cell – pv magazine International

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

World Debt Clocks (usdebtclock.org)

To be an investor you must be a believer in a better tomorrow.

Benjamin Graham.


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