Wednesday, 22 January 2025

Trump Rattles Some Stocks. China Warns On Trade Wars. Panama Says No!

Baltic Dry Index. 928 -29            Brent Crude 79.22

Spot Gold 2755               US 2 Year Yield 4.29 +0.02  

US Federal Debt. 36.381 trillion!

Never buy at the bottom, and always sell too soon.

Jesse Lauriston Livermore.

In the stock casinos, hope and fear, depending on which side of the Trump tariff wars a global casino is on.

China stocks fall after Trump suggests tariffs on Beijing could come into effect by next month

Updated Wed, Jan 22 2025 12:32 AM EST

Asia-Pacific markets traded mixed Wednesday, with China stocks declining after President Donald Trump’s comments on imposing a 10% tariff on China.

Australia’s S&P/ASX 200 rose 0.26%.

Japan’s Nikkei 225 added 1.36%, and the Topix rose 0.87%. South Korea’s Kospi added 3.67% while the Kosdaq traded 0.93% higher.

Shares in several Korean tech stocks rallied with SK Hynix and LG Electronics leading gains by 2.52% and 2.85% respectively. This follows reports on Korean firms considering moving their production plants from Mexico to the U.S. following Trump’s protectionist policies.

Hong Kong’s Hang Seng index dropped 1.34%, while mainland China’s CSI 300 fell 0.85%. Trump said that his team was discussing a 10% tariff on China and that the duty could take effect as early as Feb. 1.

India’s Nifty 50 rebounded slightly, adding 0.28% after falling to its lowest since last June on Tuesday. Similarly, the BSE Sensex climbed 0.46%.

Investors will be looking out for Malaysia’s central bank policy meeting today, where the Bank Negara Malaysia is expected to keep its policy rate steady at 3%.

Overnight in the U.S., the three major averages advanced as investors viewed Trump’s comments around international trade as a bit softer than expected.

The Dow Jones Industrial Average added 537.98 points, or 1.24%, to finish at 44,025.81. The S&P 500 gained 0.88% to end at 6,049.24, while the Nasdaq Composite rose 0.64% to 19,756.78.

Trump said he was considering 25% tariffs on Mexico and Canada on Feb. 1 because of their border policies while signing first-day executive orders in the White House Monday night. He also mentioned China, noting that the U.S. could put tariffs on the country if it doesn’t approve a TikTok deal.

Asia markets live: Malaysia central bank, Trump tariff concerns

European markets expected to maintain positive momentum

Published Wed, Jan 22 2025 12:29 AM EST

LONDON — European stocks are expected to open higher Wednesday, continuing positive sentiment seen in global markets since the start of the week.

The U.K.’s FTSE index is expected to open 7 points higher at 8,557, Germany’s DAX up 98 points at 21,140, France’s CAC 40 up 13 points at 7,786 and Italy’s FTSE MIB up 123 points at 36,311, according to data from IG.

Global stock markets have been trading higher earlier this week as investors digested the first executive orders that newly inaugurated U.S. President Donald Trump signed on Monday.

Market gains were attributed to the fact that, while Trump issued a broad memorandum directing federal agencies to assess what he sees as unfair trade policies with foreign countries, he stopped short of authorizing new levies on his first day back in office. Investors took that as a sign that he may be less gung-ho about implementing tariffs than previously expected.

Asia-Pacific markets mostly rose overnight, while S&P 500 futures rose last night after the first trading session post-Inauguration Day ended with strong gains.

The impact that Trump’s second term in office might have on the global economy and geopolitics has been a key talking point at the World Economic Forum in Davos, Switzerland.

CNBC’s coverage of the annual forum continues, with António Guterres, secretary-general of the United Nations, due to speak at 11:30 a.m. Davos time. Spanish Prime Minister Pedro Sanchez will speak at 3:45 p.m.

CNBC guest highlights include Mark Rutte, the head of NATO, and Polish President Andrzej Duda and Sanchez.

Dick Schoof, the Netherlands’ prime minister, the United Arab Emirates’ economy and trade ministers, Saudi Arabia’s Finance Minister Mohammed Al Jadaan and Finnish President Alexander Stubb will also be speaking to CNBC at the forum on Wednesday.

There are no major data releases in Europe Wednesday, but easyJet will release its latest earnings report.

European markets expected to maintain positive momentum

Bank of Japan is expected to hike rates this week, CNBC survey shows

Published Tue, Jan 21 2025 5:00 PM EST Updated Tue, Jan 21 2025 6:36 PM EST

The Bank of Japan is expected to raise its benchmark interest rate this week by 25 basis points, according to a survey of economists polled by CNBC.

A hike will put the BOJ’s key rate at 0.5%, its highest level since 2008.

An overwhelming majority of 18 out of 19 economists agreed on prospects of a rate hike, with most pointing to a recent change in tone of the BOJ leadership as driving their expectations. The survey was conducted from Jan. 15 to 20.

Public comments by Governor Kazuo Ueda and a speech by Deputy Governor Ryozo Himino to business leaders last week have indicated BOJ’s willingness to hike rates.

Ueda said on Jan. 16 that the central bank would raise rates if “improvements in the economy and prices continue,” according to a report by Reuters.

Himino, meanwhile, said that the bank would debate raising rates at the upcoming meeting, adding that it would “not be normal” for real interest rates to remain negative once Japan had overcome deflationary factors.

The tone signals that headwinds which had prevented a rate hike last month were diminishing, according to several economists polled by CNBC.

However, they also flagged a key risk to this forecast was the uncertainty stemming from Donald Trump’s presidency and its potential impact on financial markets and Japan’s economy.

Uichiro Nozaki, economist at Nomura Securities, described the speech by Himino as a “major catalyst” for their rate-hike call.  

“From (Himino and Ueda’s) remarks, we judged that BOJ is more confident. In terms of wage hikes, Himino said that it was the main scenario that wage hikes as high as in 2024 is realized in 2025.” 

More

Bank of Japan is expected to hike rates this week, CNBC survey shows

Trade war has no winners, China’s vice premier warns, as Trump threatens tariffs

Published Tue, Jan 21 2025 5:49 AM EST Updated Tue, Jan 21 2025 6:30 AM EST

BEIJING — Chinese Vice Premier Ding Xuexiang warned there are “no winners” in a trade war, as the world’s second-largest economy faces the possibility of tariffs under the freshly-inaugurated administration of Donald Trump.

“Protectionism leads no where. [A] trade war has no winners,” Ding said Tuesday, according to an official English translation. He was speaking at the World Economic Forum in Davos, Switzerland.

The vice premier began his address largely by referencing Chinese President Xi Jinping’s speech at Davos in 2017, which took place just days before Trump headed to the White House to begin his first term.

At the time, Xi had said that “pursuing protectionism is just like locking one’s self in a dark room. Wind and rain might be kept outside but so are light and air.”

After his second inauguration on Monday, Trump said the U.S. could levy tariffs on Mexico and Canada as soon as February. As for China, the returning U.S. president indicated tariffs could be a way to pressure the country into forcing Beijing-based ByteDance to sell TikTok, whose future availability in the U.S. is now in question.

“If we wanted to make a deal with TikTok, and it was a good deal, and China wouldn’t approve it, then I think ultimately they’d approve it, because we’d put tariffs on China,” Trump said. “I’m not saying I would, but you certainly could do that.”

Trump said he and Xi discussed TikTok and trade during a call on Friday. The Chinese readout of the exchange did not mention the social media app. Neither leader attended Davos this year.

Ding, who said he was attending Davos for the second time, is one of China’s four vice premiers. China economy has struggled with lackluster consumption and a real estate slump. Despite this, the country’s GDP officially grew by 5% last year after a flurry of stimulus announcements starting in late September.

In his speech on Tuesday, Ding attributed China’s economic challenges to the external environment and to “temporary pains brought [about] by our own economic restructuring.” He referenced that the country is trying to move away from real estate as a pillar of growth and toward new drivers such as high-end technology.

China’s technological achievements are the result of “open cooperation,” Ding added in a subsequent discussion with World Economic Forum founder Klaus Schwab. The Chinese official emphasized that Beijing is developing artificial intelligence for the “intelligent transformation” of its economy, and has institutions capable of controlling the emerging technology.

Under the administration of former President Joe Biden, the U.S. had said it was in competition with China and imposed sweeping restrictions that prevent Chinese companies from buying high-end semiconductors used for training artificial intelligence systems.”

More

Trade war has no winners, China's vice premier warns, as Trump threatens tariffs

In other news.

Panama's President responds to Trump's plans to reclaim control of Panama Canal

January 20 2025

The Panama Canal will continue to belong to Panama, and no foreign nation can interfere with its management, stated Panamanian President José Raúl Mulino.

What Trump said

During his inaugural address, Donald Trump claimed that Panamanian authorities were failing to fulfill their responsibilities regarding the management of the Panama Canal.

"Above all China is operating the Panama Canal. We didn't give it to China, we gave it to Panama, and we're taking it back," Trump said.

He also criticized Panama for imposing high transit fees on American ships, including US Navy vessels.

Panama's President responds

The Panamanian President strongly condemned Trump's remarks.

"I reiterate what I stated in my national address on December 22: the canal belongs to and will continue to belong to Panama, and its management will remain under Panamanian control while maintaining its permanent neutrality. No nation in the world has the right to interfere in the management of the Canal," Mulino stated.

He emphasized that Panama has responsibly managed the canal since 1999, expanding it to serve global trade and the interests of the international community.

Mulino also affirmed that Panama would rely on international law to regulate its relations with other nations, including the US.

"Dialogue is always the best way to clarify these matters without compromising our rights, full sovereignty, and ownership of the canal," he concluded.

Trump's scandalous statements

Earlier, Donald Trump did not rule out that he could use economic and military methods to restore US control over the Panama Canal and Greenland.

Trump justified the need to reclaim the Panama Canal by pointing to the excessive fees imposed on the US.

Panama's President responds to Trump's plans to reclaim control of Panama Canal

EV startup Canoo files for bankruptcy and ceases operations

5:41 PM PST · January 17, 2025

Seven-year-old electric vehicle startup Canoo has filed for bankruptcy and will “cease operations immediately.” The company is liquidating its assets in a Chapter 7 proceeding in the Delaware Bankruptcy Court.

The company said in a press release published late Friday that it was “in discussions with foreign sources of capital” that proved unsuccessful, and also singled out an inability to secure funding from the U.S. Department of Energy’s Loan Program Office, which has been on a lending spree in the waning days of the Biden administration.

Canoo said in its bankruptcy filing (and the filings for its subsidiaries) that it owes money to hundreds of creditors, and that it has more than $164 million in total liabilities. It claimed around $126 million in assets.

The bankruptcy filing comes just a few weeks after Canoo furloughed the remainder of its workers and idled its factory in Oklahoma. The company struggled throughout 2024 to get more than a few of its electric vans into the hands of prospective customers, and suffered numerous executive departures. It had just $700,000 in the bank in mid-November.

Canoo is the latest EV startup to go bankrupt after merging with a special purpose acquisition company (SPAC) as a shortcut to going public. Electric Last Mile Solutions was the first in June 2022. But since then, FiskerLordstown MotorsProterraLion Electric, and Arrival all filed for different levels of bankruptcy protection in their various home countries. (Canoo bought Arrival’s assets out of insolvency in 2024, though it’s unclear if it ever put any of it to use.)

Canoo announced plans to merge with SPAC Hennessy Capital Acquisition Corp. in August 2020, and went public that following December, raising around $600 million. In the years since it went public, the company made a small number of its bubbly electric vans and handed them over to partners — some paying — willing to trial the vehicles. The United States Postal Service, Department of Defense, and NASA all have or had Canoo vehicles.

At one point, the company even courted Walmart, which agreed to purchase as many as 10,000 EVs from Canoo in 2022. But the deal was essentially non-binding and bore little risk for the retail giant.

Canoo was founded in late 2017 by a splinter group of executives that were fed up with the drama surrounding the other EV startup where they worked at the time, Faraday Future. Originally called Evelozcity, those executives developed a modular electric vehicle platform that could power cabins in multiple shapes and sizes, and utilized advanced technology like a steer-by-wire system.

The ideas inside Canoo were attractive enough that the startup at one point was in talks with Apple, which was interested in a potential investment or even acquisition as a way to boost the tech giant’s own secretive electric car project. Former CTO and at one point CEO of Canoo, Ulrich Kranz, went on to help run Apple’s car project before it was disbanded in 2024.

More

EV startup Canoo files for bankruptcy and ceases operations | TechCrunch

Disaster at Moss Landing: The Risk of Battery Storage  Approx. 9 minutes.

Disaster at Moss Landing: The Risk of Battery Storage - YouTube

No one ever went broke by taking a profit.

Jesse Lauriston Livermore.

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.

UK unemployment hits 4.4 per cent in blow for Reeves

21 January 2025

The rate of UK unemployment rose to 4.4 per cent in the three months to November, official figures have shown.

This is up from 4.3 per cent in the three months to October.

The UK's average regular earnings growth increased to 5.6 per cent in the three months leading up to November.

After adjusting for inflation, this growth was 3.4 per cent, according to the Office for National Statistics.

The employment rate was 74.8 per cent, which is lower than the previous three months and economic inactivity dropped slightly to 21.6 per cent, down by 0.1 per cent from the previous quarter.

From October to December 2024, there were an estimated 812,000 job vacancies, a decrease of 24,000 (or 2.9 per cent) compared to July to September.

In November, the average weekly earnings were £705 for total earnings and £660 for regular earnings.

Following Chancellor Rachel Reeves buget, and change to to National Insurance, some businesses have already scaled back on pay rises and hiring in 2025.

Alice Haine, personal finance analyst at Bestinvest said: "Wage growth was robust in November, but it may dip in December when some employers chose to scrap or reduce Christmas bonuses in reaction to the Chancellor’s new tax measures.

"[They will] batten down the hatches in preparation for the hit coming in April from the increased rate of employer National Insurance and lowering of the wage threshold at which it applies, along with increases to the minimum wage."

UK unemployment hits 4.4 per cent in blow for Reeves

AI mania takes over Davos as the world’s biggest firms tout their offerings

Published Tue, Jan 21 2025 1:11 AM EST

The Davos Promenade in Switzerland is the focal point of the World Economic Forum’s annual meeting in the Swiss ski town.

Some of the world’s biggest companies take over cafes, shops and restaurants and build temporary meeting and event spaces for the week — and their branding often gives away what’s top of mind for business leaders.

It’s no surprise, then, that artificial intelligence dominated the space this year, given the boom in the technology, which has propelled firms to capitalize on AI interest — especially from businesses.

A poll from consultancy Accenture out on Monday revealed that 58% of execs expect generative AI solutions to be adopted at scale within the organization in 2025, up from just 37% in 2024. Generative AI is the technology that underpins applications like ChatGPT.

Several companies from Intel to Salesforce and Workday displayed AI-linked branding on the front of their spaces.

Showing on the promenade can often follow what’s happening in markets, with crypto companies have been out in force in the past. The explosion of AI branding kicked off at Davos in 2024, pushing aside crypto, at a time when ChatGPT was still gaining in popularity, while Nvidia’s stock continued to rally. Nvidia, whose chip systems are used to train huge AI models, is seen as a benchmark for investor appetite in artificial intelligence.

Advances in AI, as well as the dangers of rapidly-advancing systems, will be discussed during this year’s WEF. Artificial general intelligence — or AGI, describing AI systems that are smarter than humans — will be in focus, as well as current advances with AI agents.

Davos 2025: AI mania takes as the biggest firms tout their offerings

Covid-19 Corner

This section will continue until it becomes unneeded.

On This Day, Jan. 21: CDC confirms first U.S. case of COVID-19

January 21, 2025

Jan. 21 (UPI) -- On this date in history:

In 1793, French King Louis XVI was executed in Paris, ending more than a thousand years of continuous French monarchy.

In 1861, Mississippi Sen. Jefferson Davis resigned from the U.S. Senate 12 days before Mississippi seceded from the Union. He later became president of the Confederate States of America.

In 1915, the English steamer Durward, traveling from Leith to Rotterdam, was torpedoed and sunk by a German submarine near the mouth of the Meuse. The crew was rescued by a Dutch pilot boat and landed at the Hook.

In 1924, Vladimir Lenin, architect of the Bolshevik Revolution and the first leader of the Soviet Union, died of a brain hemorrhage at the age of 54.

In 1949, Generalissimo Chiang Kai-shek headed for exile, resigned his position as president of Nationalist China to clear the way for negotiations with the Chinese Communists to end China's three-year civil war.

In 1954, in odd news, a Connecticut man obtained a divorce on grounds of desertion after concluding his wife wasn't coming back. She left 45 years before.

In 1954, the world's first atomic-powered submarine, the Nautilus, was launched at Groton, Conn.

In 1976, the supersonic Concorde airplane was put into service by Britain and France.

In 1977, U.S. President Jimmy Carter pardoned American Vietnam War-era draft evaders and ordered a case-by-case study of deserters.

In 1990, U.S. tennis star John McEnroe became the first player to be disqualified from the Australian Open after an outburst in which he broke his racquet, yelled at a linesman and erupted into a string of curses.

In 1996, an overloaded ferry, the Gurita, capsized during a storm off the coast of Sumatra, Indonesia, killing 340 people.

In 1997, the full U.S. House of Representatives voted 395-28 to reprimand Speaker Newt Gingrich, R-Ga., for violating House rules and misleading congressional investigators looking into his possible misuse of tax-exempt donations for political purposes.

In 2003, the U.S. Census Bureau said Hispanics had moved past African Americans as the largest minority group in the United States.

In 2009, Sen. Hillary Clinton, D-N.Y., won near-unanimous Senate confirmation as U.S. secretary of state. She took the oath of office later that day.

In 2010, the U.S. Supreme Court, in a far-reaching and controversial 5-4 decision, ruled that the government cannot restrict the spending of corporations and unions for political campaigns.

In 2014, a report from three former war-crimes prosecutors said they found evidence of widespread killings and torture by forces of the government of Syria. The report, which included thousands of photographs apparently smuggled out of the war-torn country, told of killings that were "systematic, ordered and directed from above."

In 2017, millions of people gathered worldwide for the Women's March protesting the election of President Donald Trump, who was inaugurated the day before. Up to 500,000 attended the Washington, D.C., event.

In 2019, a private airplane carrying Argentine soccer star Emiliano Sala disappeared near the Channel Islands. Searchers recovered his body from the wreckage of the plane at the bottom of the English Channel in February.

In 2020, the U.S. Centers for Disease Control and Prevention confirmed the United States' first known case of novel coronavirus -- what would later come to be known as COVID-19.

On This Day, Jan. 21: CDC confirms first U.S. case of COVID-19

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.

SLINTEC signs graphene-based technology transfer agreement with Inovartic of Abu Dhabi

January, 21, 2025

The Sri Lanka Institute of Nanotechnology (SLINTEC) recently unveiled a revolutionary development and delivery of a groundbreaking oil-absorbing material based on graphene, designed to tackle large-scale oil spills with unprecedented efficiency. Developed in Sri Lanka and now set to be deployed in collaboration with Inovartic of UAE and a major oil services company in the UAE, this innovation marks a significant milestone in sustainable marine environmental protection.

The global ocean cleaning industry is valued at a staggering US$ 172 billion, driven by the increasing need to address large-scale oil spills and their devastating environmental impact. Traditional oil spill cleaning technologies primarily rely on materials such as polyurethane - a synthetic polymer. While somewhat effective, these materials pose significant environmental risks. Graphene, renowned for its extraordinary properties, such as high surface area and exceptional strength, has been tailored by SLINTEC scientists to create a material that not only absorbs oil efficiently but also addresses the shortcomings of current solutions.

This pioneering technology by SLINTEC is reusable, non-toxic, and environmentally friendly, ensuring no negative impact on marine life. With its superior oil absorption capabilities, this breakthrough solution is a highly effective tool to address the severe consequences of oil spills, establishing a new benchmark for environmental protection and safety.

SLINTEC’s innovation stems from the utilisation of Sri Lanka’s premium graphite resources, renowned for their high quality. Commenting on SLINTEC’s latest innovation, CEO, SLINTEC - Dr. Thushara Perera stated: “We are proud to see our innovation recognised and embraced on a global scale. This agreement signifies the transformative power of partnerships in creating impactful solutions. This partnership with Inovartic Investments will help SLINTEC to support grassroots-level innovators in Sri Lanka, supporting the new Government’s plan to foster innovation into productive outcomes and partnerships to enter global markets.”

More

SLINTEC signs graphene-based technology transfer agreement with Inovartic of Abu Dhabi - Adaderana Biz English | Sri Lanka Business News

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

World Debt Clocks (usdebtclock.org)

The stock market is never obvious. It is designed to fool most of the people, most of the time.

Jesse Lauriston Livermore.

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