Baltic Dry Index. 893 -69 Brent Crude 76.22
Spot Gold 2775 US 2 Year Yield 4.29 unch.
US Federal Debt. 36.390 trillion!
In life you have to rely on the past, and that's called history.
Donald Trump.
In the stock casinos, Trump Mania Forever.
In the real global economy, yet more sign of a booming global economy rolling over. Look away from that falling crude oil price and collapsing Baltic Dry (shipping) Index now.
Asia-Pacific markets track Wall Street gains as
Trump pushes for rate cuts
Updated Fri, Jan 24 2025 12:29 AM EST
Asia-Pacific markets climbed Friday, after
the S&P 500 hit
record highs overnight as U.S. President Donald Trump called for lower interest
rates and cheaper oil prices.
The Bank of Japan raised policy rate by 25
basis points to 0.5% — the highest
since 2008 and in line with economists’ expectations. Following the
decision, the Japanese yen weakened
marginally to trade at 155.18 against the dollar.
Earlier on Friday, Japan reported its core inflation rate rose
to a 16-month high of 3% in December, year on year.
The country’s benchmark Nikkei 225 index rose 0.09%,
while the Topix gained 0.16%.
Hong Kong’s Hang Seng index gained 2.06%
while China’s CS1300 benchmark has advanced 0.83%
South Korea’s Kospi gained 0.58%, while
the Kosdaq rose 0.87%.
Australia’s S&P/ASX 200 ended the
day up 0.36% at 8,408.9.
Singapore’s central bank eased its monetary policy in line with market
expectations, given the rise in core inflation levels in December.
Overnight in the U.S., the S&P 500
added 0.53%, notching an all-time intraday high for the second straight session
to finish the day at 6,118.71.
The Dow Jones Industrial Average advanced
408.34 points, or 0.92%, to 44,565.07, while the Nasdaq Composite rose 0.22%
to 20,053.68. Thursday marked the fourth straight winning session for all three
major indexes.
Asia
markets live updates: Japan inflation data, rate decision
President Donald Trump says he’ll ‘demand that
interest rates drop immediately’
Published Thu, Jan 23 2025 11:20 AM EST Updated
Thu, Jan 23 2025 4:10 PM EST
President Donald Trump lobbed his
first volley at the Federal Reserve, saying Thursday that he will apply
pressure to bring down interest rates.
Speaking via video to
an assembly of global leaders at the World Economic Forum in Davos,
Switzerland, the new president in a wide-ranging policy speech did not mention
the Fed by name but made clear he would seek lower rates.
“I’ll demand that interest rates drop
immediately,” Trump said. “And likewise, they should be dropping all over the
world. Interest rates should follow us all over.”
The comments represented an initial strike
at Fed officials, with whom he had a highly contentious relationship during his
first term in office. He frequently criticized Chair Jerome Powell, who Trump appointed,
on occasion calling policymakers “boneheads” and comparing Powell to a golfer
who can’t putt.
Stocks reacted slightly positive on the
comments, with the Dow Jones Industrial average extending gains as Trump spoke
and the policy-sensitive 2-year Treasury yield edging a bit lower.
In the flurry of activity surrounding the
president’s first week in office, he has not discussed his views on monetary
policy. However, during the presidential campaign Trump indicated that he
should get a say in interest rate decisions.
Speaking later in the day to reporters,
Trump said he expects the Fed to listen to him and plans to speak to Powell “at
the right time.”
For their part, Powell and his colleagues
have emphasized the importance of Fed independence. Powell in particular
frequently has insisted the central bank does not make decisions based on
political considerations. Trump does not have statutory authority over the Fed,
though he nominates members to the board of governors.
Fed independence is seen as essential to
stable markets, though the central bank has come under fire in recent years for
dismissing the inflation surge in 2021 as “transitory,” which led to a series
of aggressive hikes.
Trump’s comments come less than a week
before the Fed holds is two-day policy meeting that will conclude Wednesday.
More
President Donald Trump says he'll 'demand that interest rates drop immediately'
In other news.
Structural weaknesses in the German economy must
‘absolutely’ be addressed, finance minister says
Published Thu, Jan 23 2025 1:52 AM EST
It is crucial that Germany embarks on a
period of economic growth, the country’s finance minister Jörg Kukies told CNBC
on Thursday, adding that structural weaknesses must be addressed.
“We’ve just gotten revised down growth
forecasts for the IMF again,” Kukies told CNBC’s Karen Tso and Steve Sedgwick
at the World Economic forum in Davos.
“The structural weaknesses of our economy
absolutely have to be addressed,” he added. “It’s really important that we
embark on a path of economic growth.”
Germany’s annual gross
domestic product declined
in both 2023 and 2024. Quarterly GDP readings have also been muted, but the
economy has so far skirted a technical recession.
The International Monetary Fund (IMF) is
currently forecasting 0.3% GDP
growth in Germany for 2025 and 1.1% for 2026, according to the January update
to its World Economic Outlook. It marked a stark downgrade from its October forecast of
0.8% growth in 2025.
‘Targeted reforms’ to debt brake
Kukies also addressed the debate
over Germany’s
so-called debt brake,
a fiscal rule enshrined in the German constitution. The debt brake limits how
much debt the government can take on, and dictates that the size of the federal
government’s structural budget deficit must not exceed 0.35% of the country’s
annual gross domestic product.
The Finance Minister said some “targeted
reforms” to the rule were necessary “because we have so much need for
infrastructure spend for railways, on roads, on bridges, on education, on 5G,
6G infrastructure etcetera.”
“But the vast majority of investment [...]
in our country has to come from the private sector,” he added, saying that the
right incentives for private investors to “rediscover Germany” were needed.
Kukies said German companies were still
doing “very well” when it comes to their global businesses — which is reflected
in their share price
performance —
but were “under stress” domestically.
“So that’s the problem that we have to
fix,” he said. “We just need to offer them better conditions to invest and do research
and development in Germany.”
Kukies became Germany’s finance minister
in November, taking over from Christian Lindner who was sacked by Chancellor
Olaf Scholz after months of wrangling and clashes over the economy and budget.
Lindner’s dismissal effectively brought an
end to the former German ruling coalition, which was made up of Scholz’ Social
Democratic Party, Lindner’s Free Democratic Party and the Green party. This, in
turn, saw Germany’s national election moved forward to Feb. 23.
“The election is all about economics,”
Kukies added.
More
German finance
minister Jörg Kukies: Structural weaknesses in economy must be addressed
German electric car sales plunge by more than a
third
Withdrawal of government tax breaks
triggers collapse in demand for EVs
21 January 2025 7:15pm GMT
Electric car sales in Germany plummeted
by 39pc last month as
the withdrawal of government tax breaks triggered a collapse in demand.
The number of battery-electric cars sold
across Europe’s largest economy in December fell to 33,651, down from 54,654
over the same period last year.
This led to a broader 10pc drop in
electric vehicle (EV) sales across
Europe as a whole,
according to the European Automobile Manufacturers’ Association (ACEA).
In total, EVs accounted for 13pc of the
overall market share in 2024, behind petrol cars and hybrid-electrics, which
accounted for 33pc and 31pc respectively.
European sales fell off after a surge in
deals the year prior, when subsidies for EV purchases peaked at €9,000 (£7,550)
per car.
Registrations last year were also hit by
manufacturers holding back EV deliveries so that they would count towards new
emission standards being introduced by the European Union.
Demand for EVs crashed across Germany as
separate figures last week revealed that the
economy shrank for
the second year in a row in 2024.
The scale of the challenge facing
Germany’s economy was highlighted in a new survey from think tank ZEW, which
found that economic sentiment fell from 15.7 to 10.3 in December.
Achim Wambach, president of ZEW, said: “A
lack of private household spending and subdued demand in the construction
sector continues to stall the German economy.
“If these trends continue in the current
year, Germany will fall further behind the other countries of the eurozone.”
Meanwhile, French EV sales also took a
battering in December, contracting by 20pc according to ACEA.
Like Germany, France is preparing to axe
subsidies for electric cars, reducing incentives to between €2,000 and €4,000
based on household income, down from as much as €7,000.
The withdrawal of state support for
electric cars threatens to reduce the competitiveness of European models amid
an anticipated flood of cheaper alternatives from China.
However, struggles across Europe led to
Britain becoming Europe’s largest EV market for the first time last year, as
tough net zero sales targets forced manufacturers to offer steep discounts.
German electric
car sales plunge by more than a third
Singapore eases monetary policy for the first time
since 2020, warns of growth slowdown
Published Thu, Jan 23 2025 7:30 PM EST
Singapore on Friday loosened its monetary
policy for the first time since 2020, citing a faster than expected decline in
inflation and warning about a growth slowdown.
The Monetary Authority of Singapore said
it would slightly reduce the slope of its exchange rate policy band, known as
the Singapore dollar nominal effective exchange rate, or S$NEER.
In its release, MAS said Singapore’s growth momentum
is expected to slow this year, and core inflation “has moderated more quickly
than expected.”
It added that inflation will remain below
2% this year, “reflecting the return to low and stable underlying price
pressures in the economy.”
Headline inflation is forecast to
average 1.5%–2.5% in 2025, compared to 2.4% in 2024.
MAS also downgraded its forecasts for the
core inflation rate — which strips out prices of accommodation and private
transport — to an average of 1%–2% in 2025, lower than the 1.5%–2.5% projected
in its October 2024 monetary policy release.
Singapore’s GDP growth is projected to
grow at 1%-3% over 2025, slower than the 4% seen in 2024.
“The impact of shifts in global trade
policies could weigh on the domestic manufacturing and trade-related services
sectors,” MAS wrote.
Unlike other central banks that tweak
their domestic lending rates, MAS alters the exchange rate settings of the
Singapore dollar.
The central bank strengthens or weakens
its currency against a basket of its main trading partners, thus effectively
setting the S$NEER. The exact exchange rate is not set, rather, the S$NEER can
move within the set policy band, the precise levels of which are not disclosed.
The Singapore dollar weakened
slightly after the decision against the greenback, deprecating marginally to
1.3556, while the city-state’s Straits
Times index climbed marginally.
Singapore eases monetary policy for the first time since 2020, warns of growth slowdown
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.
Florida's
Condo Market Faces 'Frightening' Crisis
Published Jan
22, 2025 at 11:59 AM ESTUpdated Jan 22, 2025 at 12:04 PM EST
The
Sunshine State's condo market, which once offered residents affordable housing
options, is on the verge of a crisis that could bring owners to their knees,
according to experts.
A
new law requiring regular inspection and costly maintenance for older condos
has recently triggered an explosion of sales in South Florida, where owners are
trying to offload their properties before they're faced with a bill they can't
afford to pay.
"What
is frightening and what people are afraid of and what I'm hearing across the
board is astronomical assessments," said real estate agent Sue Christiano
of Florida TV station WBBH on Monday. "I have to tell you yes. We're all
suffering from shell shock from [Hurricane] Ian."
Why
It Matters
Florida's
new regulation on older condos is going into effect at the same time as the
state, along with the rest of the country, is struggling with rising housing
costs—including growing homeowners association fees, stubbornly high mortgage
rates and skyrocketing home insurance premiums.
While
the legislation was introduced to prevent disasters such as the June 24, 2021,
condo collapse that killed 98 people, housing experts have raised alarm over
the impact this could have on condo owners in the state. Many of them might be
forced to sell their property or face foreclosure should repair assessment
exceed the value of the homes—or what they can afford to pay.
What
To Know
The
new regulation, SB 4D, was introduced in May 2022 after investigations revealed
that the collapse of the Champlain Towers South in the Miami suburb of Surfside
was linked to years of deferred maintenance and repair, as well as an
unwillingness to deal with the building's structural problems.
Under
the new law, condos 30 years or older that are three stories high or higher had to
receive a first inspection by December 31 to assess the state of the
building and determine the cost of necessary repairs. After that first
inspection, condo associations face the burden of proving they have the funds
to complete the necessary maintenance.
The
costs are expected to be high for condo owners. A recent report by the Florida
Policy Project published earlier this month estimates that there are 1.1
million condo units that are more than 30 years old in the Sunshine State. The
majority of them (58 percent) are concentrated in the counties of Broward,
Miami-Dade, Palm Beach, Pinellas, Collier, Sarasota, Hillsborough and Manatee.
As
a result of the inspections and assessments required by the new regulation,
"some owners may face eviction, or the building could be condemned,"
the report warned.
More
Florida's Condo
Market Faces 'Frightening' Crisis - Newsweek
Covid-19 Corner
This section will continue until it becomes unneeded.
Today, something different.
Shopping bag plastic blamed for rise of deadly superbugs
19
January 2025
Tiny
pieces of plastic that have made their way into human bodies could be
responsible for the rise of deadly superbugs.
Research
has revealed that a build-up of these microplastics – minuscule pieces that
break off from items such as shopping bags and food packaging – can be linked
to heart disease, dementia and several cancers.
Since
plastic can take up to 500 years to completely decompose, these microplastics
remain in the environment – across the food chain and drinking water – as well
as in the human body.
Now University
of Oxford researchers
have concluded that they are directly linked to the rise and spread of
drug-resistant infections.
These
superbugs, which have developed the ability to fight off all but the most
potent antibiotics, are thought to be triggered by doctors overprescribing the
life-saving drugs.
And
experts now believe the prevalence of microplastics in the environment, where
the bacteria begin life, is what is causing them to mutate, leading to more
drug-resistant infections.
According
to the research, microplastics are increasing the spread of deadly superbugs by
as much as 200 times.
And
the failure to tackle these microplastics could lead to the death of millions.
The
World Health Organisation has estimated that, by 2050, around ten million
people will die every year due to the increased number of superbugs.
Professor
Timothy Walsh, with over 25 years of experience in the subject area, author of
the study and a microbiologist at the University of Oxford, said: ‘Given the
lack of global plastic waste governance and the increasing amount of
microplastics infiltrating all aspects of human activity, these findings are
very concerning.
'At
the individual level we need to reduce, recycle and reuse – at the global level
we need robust plastic waste governance policies.’
Last
year the UK Government published its strategy to ‘contain, control and
mitigate’ the spread of drug-resistant infections. The report does not include
a section on microplastics.
Shopping bag
plastic blamed for rise of deadly superbugs
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.
New research
uncovers exotic electron crystal in graphene
January
22, 2025
Researchers
from the University of British Columbia, the University of Washington, and
Johns Hopkins University have identified a new class of quantum states in a
custom-engineered graphene structure.
Published
in Nature, the study reports
the discovery of topological electronic crystals in twisted bilayer–trilayer
graphene, a system created by introducing a precise rotational twist between
stacked two-dimensional materials.
"The
starting point for this work is two flakes of graphene, which are made up of
carbon atoms arranged in a honeycomb structure. The way electrons hop between
the carbon atoms determines the electrical properties of the graphene, which
ends up being superficially similar to more common conductors like
copper," said Prof. Joshua Folk, a member of UBC's Physics and Astronomy
Department and the Blusson Quantum Matter Institute (UBC Blusson QMI).
"The
next step is to stack the two flakes together with a tiny twist between them.
This generates a geometric interference effect known as a moiré pattern: Some
regions of the stack have carbon atoms from the two flakes directly on top of
each other, while other regions have the atoms offset," Folk said.
"When
electrons hop through this moiré pattern in the twisted stack, the electronic
properties are totally changed. For example, the electrons slow way down, and
sometimes they develop a twist in their motion, like the vortex in the water at
the drain of a bathtub as it is draining out."
The
breakthrough discovery reported in this study was observed by an undergraduate
student, Ruiheng Su, from UBC, studying a twisted graphene sample prepared by
Dr. Dacen Waters, a postdoctoral researcher in the lab of Prof. Matthew
Yankowitz at the University of Washington.
While
working on the experiment in Folk's lab, Ruiheng discovered a unique
configuration for the device where the electrons in the graphene froze into a
perfectly ordered array, locked in place yet twirling in unison like ballet
dancers gracefully performing stationary pirouettes. This synchronized rotation
gives rise to a remarkable phenomenon where electric current flows effortlessly
along the edges of the sample while the interior remains insulating because the
electrons are immobilized.
---- The
topological electron crystal is not only fascinating from a conceptual point of
view but also opens up new opportunities for advancements in quantum
information. These include future attempts to couple the topological electron
crystal with superconductivity, forming the foundation of qubits for
topological quantum computers.
More
information: Ruiheng Su et al, Moiré-driven topological electronic
crystals in twisted graphene, Nature (2025). DOI:
10.1038/s41586-024-08239-6
Provided
by University of British Columbia
New research
uncovers exotic electron crystal in graphene
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
Another weekend and the first weekend of Trump 2.0.
So far, so good, at least. But what will Trump do next week? Tariff February is
just about one week away. Have a great weekend everyone.
Politicians
are making deals for their benefit. Now we are going to make the deals for the
American people.
Donald
Trump.
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