Tuesday, 25 February 2025

Germany Woes. Stocks, Is It Over? Another Battery Fire.

Baltic Dry Index. 1002 +21        Brent Crude 75.13

Spot Gold 2938               US 2 Year Yield 4.13 -0.06    

US Federal Debt. 36.522 trillion!

Too bad that all the people who know how to run the country are busy driving taxicabs and cutting hair.

George Burns.

In the stock casinos, no rebound Monday as the Trump tariff trade war looms next week. Bunker time.

In the global and US economy, a return of the 1970s stagflation now looks increasingly likely.

Will all the Trump/Musk Federal firings tip the US economy into recession?

Nikkei 225 leads declines in Asia on Trump tariff woes; gains in Japanese trading houses limit losses

Updated Tue, Feb 25 2025 12:42 AM EST

Asia-Pacific markets traded lower Tuesday after Wall Street fell overnight as Trump tariffs stoke a risk-off mood, while investors assessed Bank of Korea’s rate decision.

Japan’s Nikkei 225 led losses in the region, down more than 1%, while the Topix fell 0.14%. Japan’s major trading houses, however, logged sharp gains on Warren Buffett’s plans to increase Berkshire Hathaway’s stake in the conglomerates.

South Korea’s Kospi traded 0.40% lower while the small-cap Kosdaq fell 0.23%.

South Korea’s central bank expectedly cut rates to 2.75% from 3%, as it strives to stimulate a slowing economy. The Korean won marginally weakened to 1,430.1 against the dollar.

South Korea has been facing political uncertainty, stemming from the impeachment proceedings against President Yoon Suk Yeol after his short-lived imposition of martial law in December.

Hong Kong’s Hang Seng Index fell 0.62% while mainland China’s CSI 300 dipped 0.40% amid escalating trade tensions with the U.S. The Hang Seng Tech index pared losses to trade flat.

Australia’s S&P/ASX 200 fell 0.80%.

Overnight in the U.S., the markets failed to spring back from last Friday’s sell-off. The broad market index lost 0.5%, closing at 5,983.25. The Nasdaq Composite fell 1.21%, ending the session at 19,286.92. The Dow Jones Industrial Average inched up 33.19 points, or 0.08%, to close at 43,461.21.

Ongoing concerns about U.S. President Donald Trump’s trade war with key trading partners continued to weigh on market sentiment. Trump on Monday declared that tariffs on Canada and Mexico will be implemented once the one-month delay period concludes next week.

Asia markets live updates: Bank of Korea, Hong Kong trade

European markets head for mixed open as lackluster sentiment spreads

Updated Tue, Feb 25 2025 12:34 AM EST

European stocks are expected to open in mixed territory Tuesday as a lukewarm mood pervades global markets.

The U.K.’s FTSE 100 index is expected to open unchanged at 8,637, Germany’s DAX down 29 points at 22,381, France’s CAC 2 points lower at 8,084 and Italy’s FTSE MIB 27 points higher at 38,542, according to data from IG.

Earnings come from Fresenius Medical CareSmith & NephewHeidelberg Materials and Alcon. On the data front, a more complete picture of Germany’s fourth-quarter gross domestic product data will be released on Tuesday.

European stocks traded in mixed territory at the start of the week as traders reacted to the results of the German federal election.

The conservative Christian Democratic Union and the allied Christian Social Union (CDU/CSU) secured the largest share of votes in the election on Sunday, with the alliance’s candidate Friedrich Merz set to take over from Olaf Scholz as chancellor of Europe’s largest economy.

Asia-Pacific markets traded lower overnight after Wall Street fell Monday as Trump tariffs stoked a risk-off mood. S&P 500 futures were near the flatline on Monday evening after the broad market index was unable to recover from last week’s sell-off.

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

In other news, nothing good.

Bank of Korea slashes rates to lowest since August 2022 on economic worries, cuts growth forecast

Published Mon, Feb 24 2025 7:51 PM EST

South Korea’s central bank cut rates by 25 basis points Tuesday to their lowest since August 2022, as it strives to stimulate a slowing economy.

The Bank of Korea reduced rates to 2.75% from 3%, in line with expectations from economists polled by Reuters, trimming them for the third time in four meetings.

The central bank said the decision was taken to mitigate downward pressure on the economy, forecasting growth to “decline significantly.”

The BOK cut its 2025 growth outlook to 1.5% from its 1.9% forecast in November, saying that domestic demand recovery and export growth are likely to be lower than expected due to deteriorating economic sentiment and U.S. tariff policies.

It acknowledged that concerns about foreign exchange markets still remain, but added inflation had stabilized while household debt growth had slowed.

The BOK maintained its 1.9% inflation forecast for 2025, while the core inflation outlook was lowered to 1.8% from 1.9% in November.

The decision comes as South Korea continues to grapple with political uncertainty over the impeachment trial of President Yoon Suk Yeol.

The country’s Constitutional Court will convene for the final hearing of Yoon’s trial Tuesday, according to domestic media.

Immediately after the rate decision, the country’s benchmark Kospi stock index fell 0.46%, while the South Korean won weakened 0.2% to trade at 1,431.3 against the U.S. dollar.

Speaking to CNBC’s “Squawk Box Asia,” Alex Holmes, Asia research director at the Economist Intelligence Unit, said he expects the BOK to cut rates faster rather than slower.

The BOK initially had concerns over financial stability, especially over reheating the housing market and household debt, but following the martial law flip-flop by Yoon in December, consumer and business sentiment in South Korea plunged, shifting the “balance of risks” toward the economy, Holmes said.

“There’ll be concern now about supporting the economy and inflation, and these concerns about household debt will probably take a sort of a bit of a back seat,” he added.

South Korea’s GDP growth in the fourth quarter missed expectations, clocking its slowest expansion in six quarters at 1.2%, according to advance estimates. The BOK attributed the slowdown to weakness in consumption and construction sectors.

More

Bank of Korea slashes rates to lowest since August 2022 on economic worries, cuts growth forecast

Auto Giant to Cut Another 3,000 Jobs

24 February 2025

German car parts giant Continental is facing such deep financial troubles that it now plans to cut an additional 3,000 jobs, on top of the 7,150 layoffs already announced.

Continental is one of the largest suppliers to the automotive industry, and the company has been struggling with ongoing financial difficulties and restructuring.

Earlier this month, the company confirmed the closure of several factories, resulting in significant job losses.

According to Reuters, the company had already announced last year that 7,150 positions in its automotive division would be cut.

Now, another 3,000 jobs — mainly in research and development — are on the chopping block, with about half of these reductions expected to take place in Germany.

Some of the layoffs may be achieved through natural attrition, such as retirements, and Continental has entered negotiations with unions to determine how the cuts will be implemented.

Several factors have contributed to Continental’s crisis, including the broader challenges facing the automotive industry. Rising costs, the shift to electric vehicles, and intense competition—particularly from Chinese manufacturers—have put significant pressure on suppliers.

Continental is not alone in making such drastic cuts.

Other major automotive companies have also announced workforce reductions in response to changing market conditions. The gearbox manufacturer is set to cut more than 40 billion kroner over the next few years.

The full impact of Continental’s layoffs on employees and affected communities remains uncertain. However, the severity of the situation is highlighted by Audi’s recent decision to withdraw from Belgium. Despite government efforts to keep the German carmaker in the country, its factory will close by the end of February, leading to over 3,000 job losses.

Continental has yet to release a detailed plan on how it will manage the upcoming layoffs.

Auto Giant to Cut Another 3,000 Jobs

EU Readies Tariff Retaliation Against America

February 24, 2025 at 10:57 PM GMT

The European Union is said to be broadening the list of US goods it will target with retaliatory tariffs if President Donald Trump follows through on his threat to impose duties on steel and aluminum exports. Bloomberg reported on Saturday that the US measures, if enacted, could impact as much as $29.3 billion of European exports if derivative products are hit. That would be about four times larger than the last time Trump went after Europe’s metals sector.

Among the various tariffs Trump has threatened against China, Canada, Mexico and others over the past month, he announced a series of duties including 25% tariffs on steel and aluminum exports that he warned could take effect as soon as March 12. The Republican also has threatened “reciprocal tariffs” based on the policies of partners that are seen as obstacles to US trade.

Of all the threatened levies, only Trump’s China tariff has actually happened. Nevertheless, the EU has said that it would respond swiftly and proportionally to Trump’s tariffs, should they occur, and could reactivate as a first step the lists of products it previously suspended. European officials have been preparing various targets with different sectors and goods selected with the principle of causing more harm to America, including in sensitive constituencies, if a US-Europe tariff war begins.

---- Starbucks is eliminating 1,100 corporate jobs, about 7% of the global employee base working outside of company-owned stores. Chief Executive Officer Brian Niccol, who took over in September amid declining sales, had announced the impending dismissals in January. Workers who are being fired will be notified by Tuesday, according to the company (corporate employees were asked to work remotely the whole week). Niccol has undone several leadership changes implemented by his predecessor and doubled down on the company’s return-to-office policy, warning that staff who didn’t come in three days a week could be fired. Yet Niccol’s own work arrangement, which allows him to travel from his home in California to the company’s Seattle headquarters on the company’s corporate jet, garnered backlash from some workers and outside critics.

EU Readies Tariff Retaliation Against America Over Trump Threats - Bloomberg

Finally.

Huge fire breaks out at battery recycling centre as 'explosions' heard for miles

23 February 2025

A massive fire has erupted in Wythenshawe this morning, with residents witnessing thick smoke billowing into the sky above the Manchester suburb. Locals have taken to social media to share footage of an intense orange glow believed to be coming from a warehouse early this morning.

One user on X, previously known as Twitter, described seeing smoke and hearing explosions "popping off" from what is thought to be a battery recycling plant at the Roundthorn Industrial Estate in Baguley/Wythenshawe. They posted: "Reports of a huge fire at a battery recycling facility on the Roundthorn Ind Estate in Baguley/Wythenshawe. Smoke visible and explosions popping off are audible from Altrincham, 2-3 miles away and a smell in the air."

Others in the vicinity have reported hearing "explosions all morning".

Online videos show dramatic scenes of black smoke rising high into the air, obscuring the bright flames beneath. Further images depict emergency services at the scene, with police vehicles stationed outside the estate.

The first "explosions" were reportedly heard around 8.30am, shortly before the smoke was seen emanating from the site, reports the Mirror.

Huge fire breaks out at battery recycling centre as 'explosions' heard for miles

One local, Lisa Baines, said the explosions had alarmed her so much that she thought Britain might have been going to war with Russia on Sunday morning. She commented: "Nothing like being woken up on a Sunday morning by loads of explosions. Thought Putin had come for us."

Wythenshawe fire: Huge blaze seen for miles as 'popping sound' explosions heard - Mirror Online

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.

The Fed is stuck in neutral as it watches how Trump’s policies play out

Published Sun, Feb 23 2025 6:53 AM EST Updated Sun, Feb 23 2025 10:13 AM EST

The popular narrative among Federal Reserve policymakers these days is that policy is “well-positioned” to adjust to any upside or downside risks ahead. However, it might be more accurate to say that policy is stuck in position.

With an abundance of unknowns swirling through the economy and the halls of Washington, the only gear the central bank really can be in these days is neutral as it begins what could be a long wait for certainty on what’s actually ahead.

“In recent weeks, we’ve heard not only enthusiasm — particularly from banks, about possible shifts in tax and regulatory policies — but also widespread apprehension about future trade and immigration policy,” Atlanta Fed President Raphael Bostic said in a blog post. “These crosscurrents inject still more complexity into policymaking.”

Bostic’s comments came during an active week for what is known on Wall Street as “Fedspeak,” or the chatter that happens between policy meetings from Chair Jerome Powell, central bank governors and regional presidents.

Officials who have spoken frequently described policy as “well-positioned” — the language is now a staple of post-meeting statements. But increasingly, they are expressing caution about the volatility coming from President Donald Trump’s aggressive trade and economic agenda, as well as other factors that could influence policy.

“Uncertainty” is an increasingly common theme. In fact, Bostic titled his Thursday blog post “Uncertainty Calls for Caution, Humility in Policymaking.” A day earlier, the rate-setting Federal Open Market Committee released minutes from the Jan. 28-29 meeting, with a dozen references to the uncertain climate in the document.

The minutes specifically cited “elevated uncertainty regarding the scope, timing, and potential economic effects of possible changes to trade, immigration, fiscal, and regulatory policies.”

Uncertainty factors into the Fed’s decision making in two ways: the impact that it has on the employment picture, which has been relatively stable, and inflation, which has been easing but could rise again as consumers and business leaders get spooked about the impact tariffs could have on prices.

More

The Fed is stuck in neutral as it watches how Trump’s policies play out

Covid-19 Corner

This section will continue until it becomes unneeded.

Another pandemic? What is HKU5-CoV-2, new Covid-like bat virus found in Wuhan?

FP Explainers  February 24, 2025, 12:48:10 IST

Extensive coronavirus research has led to the discovery of a new bat virus called HKU5-CoV-2.

According to a new study published in the medical journal Cell, the new virus can enter human cells using the same gateway as the virus that causes COVID-19.

Scientists at the Wuhan Institute of Virology in China have revealed the lineage of the virus and its potential to transmit from animals to humans, raising global concerns of a future pandemic.

Here’s all we know about the new virus.

HKU5-CoV-2

Also known as Bat Virus, it belongs to the “merbecovirus subgenus,” which is responsible for Middle East respiratory syndrome (MERS).

The virus was first detected in the Japanese pipistrelle bat species in Hong Kong and has now been found to have the ability to bind to a protein called angiotensin-converting enzyme 2 (ACE2) receptors.

ACE2 is the same gateway used by the highly contagious SARS-CoV-2, which causes COVID-19. Notably, some coronaviruses cause mild symptoms in humans, while others can be lethal.

As there are currently no verified human instances of HKU5-CoV-2, the symptoms are unknown.

However, experts point out that it’s likely to cause respiratory symptoms similar to COVID-19, such as fever, cough, shortness of breath, sore throat, body aches and fatigue, according to The Week.

Transmission

The researchers collected the HKU5-CoV-2 strain from hundreds of Pipistrellus bats across Guangdong, Fujian, Zhejiang, Anhui, and Guangxi provinces in China, according to Bloomberg. The virologist team was led by Shi Zhengil, a renowned virologist often called “Batwoman,” whose facility faced allegations of its role in the emergence of SARS-CoV-2.

They tested the newly discovered germ in test tubes and models of the human gut and airways to investigate its transmission potential, as per Reuters.

They discovered that a receptor enzyme on the surface of human cells allowed the spike protein of the virus to attach to the membrane of those cells.

The feature of this protein known as a “furin cleavage site” aids in its ability to bind to the receptor enzyme.

No immediate cause for concern

There’s no immediate cause for concern because there’s no evidence that the bat virus can efficiently transmit from person to person.

Notably, bats host a variety of coronaviruses, including MERS, SARS-CoV-1, and SARS-CoV-2. According to Bloomberg, which cited a 2021 study, many thousands of Southeast Asians may contract animal coronaviruses each year, but the majority of these go undiagnosed since they only cause little or no symptoms.

However, the discovery is significant because of the potential transmission pathway that is similar to that of the SARS-CoV-2.

HKU5-CoV-2 can infect human cells and lung tissues, according to laboratory testing, although it is much less capable of rapidly spreading among people than SARS-CoV-2.

The study itself noted that the virus has significantly less binding affinity to human ACE2 than SARS-CoV-2, and other suboptimal factors for human adaptation suggest the “risk of emergence in human populations should not be exaggerated.”

University of Minnesota infectious disease expert Dr Michael Osterholm told Reuters the reaction to the research was “overblown.” He said it was also possible that increased immunity to similar viruses could help protect the public from another pandemic.

More

What is HKU5-CoV-2, new Covid-like bat virus that could jump to humans found in Wuhan? – Firstpost

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.

Japan launches revolutionary titanium solar panel, 1000 times stronger

Feb 20, 2025

Japan is making waves in the renewable energy sector with the introduction of a groundbreaking titanium solar panel, poised to revolutionize sustainable electricity generation. This innovative technology promises to be 1000 times more powerful than traditional photovoltaic panels, potentially transforming how we harness and utilize solar energy. The development emanates from the University of Tokyo, where researchers have ingeniously combined titanium dioxide and selenium to create an advanced solar panel that outperforms its silicon-based predecessors. In this article, we will delve into the specifics of this remarkable breakthrough, exploring its implications for clean energy production and accessibility.

A Leap Forward in Solar Technology

The race for innovative clean energy solutions has intensified as global demand for sustainable power rises. Japan’s latest achievement—a solar panel crafted from titanium—marks a significant milestone in this endeavor. Unlike conventional solar panels that rely on silicon, these new titanium-selenium panels boast enhanced efficiency due to an advanced manufacturing process that optimizes the interaction between materials. Researchers have made strides in mitigating the adverse effects of tellurium on selenium structures, resulting in improved adhesion between the layers and increased energy conversion efficiency.

Understanding Titanium-Selenium Panels

The key innovation lies in how these panels convert sunlight into electricity. Traditional silicon-based panels have limitations when it comes to efficiency rates; however, by employing titanium and selenium, these new panels can generate significantly more electricity under identical sunlight conditions. This advancement could herald a new era of solar energy, where households and industries alike can access cleaner power sources at a fraction of the current costs.

The Role of Advanced Manufacturing Techniques

One of the standout features of this development is the sophisticated manufacturing techniques employed by Japanese scientists. By precisely controlling material interactions during production, they have succeeded in enhancing performance metrics previously thought unattainable with traditional materials. The reduction of tellurium’s negative impact on selenium has allowed these innovative layers to work synergistically, significantly boosting overall efficiency.

The Economic Implications of Titanium Production

Titanium is renowned for its strength and corrosion resistance but is also notorious for its high production costs, primarily limiting its use to aerospace and medical applications. However, researchers are focusing on developing cost-effective methods for extracting titanium from its ore—a process that could democratize access to this powerful material.

Pioneering Cost-Reduction Strategies

Innovation does not stop at creating efficient solar panels; it extends into optimizing material costs as well. Researchers are investigating alternative processes involving yttrium—a lesser-known element pivotal in various modern technologies—to purify titanium while minimizing expenses associated with its extraction. Yttrium’s unique properties may provide a solution that drastically lowers production costs without compromising quality or performance.

Potential Challenges with Yttrium Integration

Despite its promise, incorporating yttrium into titanium production is not without challenges. One primary concern is that yttrium can leave microscopic impurities within the final product, potentially impacting durability and resistance characteristics crucial for long-term applications. For widespread adoption and scalability of titanium-based technologies like solar panels, researchers must find ways to eliminate these impurities effectively.

The Future of Solar Energy: A New Era?

This revolutionary discovery signals a potential shift toward a future dominated by efficient clean energy solutions capable of meeting global demands sustainably. With increasing pressure on industries worldwide to transition away from fossil fuels amid climate change concerns, advancements such as Japan’s titanium solar panel could pave the way for mass adoption of

More

Japan launches revolutionary titanium solar panel, 1000 times stronger | USA Solar Cell

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

World Debt Clocks (usdebtclock.org)

You can lead a man to Congress, but you can't make him think.

Milton Berle.

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