Friday, 14 February 2025

Reciprocal Tariffs Galore! What Is Gold Signalling? A Global Retrenchment?

Baltic Dry Index. 780 +04            Brent Crude 75.19

Spot Gold 2932               US 2 Year Yield 4.31 -0.05  

US Federal Debt. 36.477 trillion!

I wouldn't mind dying for France, but not for Air France.

Charles de Gaulle.

No need for my two cents worth today. Today tariffs galore from April, right or wrong.

Asia-Pacific markets mixed as investors assess Trump reciprocal tariffs plan

Updated Fri, Feb 14 2025 12:45 AM EST

Asia-Pacific markets were mixed Friday, after Wall Street rose overnight as President Donald Trump signed a reciprocal tariffs plan, but did not enact the levies immediately.

Mainland China’s CSI 300 Index rose 0.65%, while Hong Kong’s Hang Seng index surged 1.86%, extending its gains from the previous session.

South Korea’s Kospi was up 0.37% and the small-cap Kosdaq advanced 1.12%.

The country’s seasonally adjusted unemployment rate hit 2.9% in January, easing from its three-year high of 3.7% in the month before.

Japan’s benchmark Nikkei 225 was trading down 0.68%, while the broader Topix index lost 0.14%.

India’s benchmark Nifty 50 lost 0.81%, while the BSE Sensex index was down 0.46%, in choppy trading.

The South Asian country is expecting its wholesale price inflation figures for January later in the day. The index is expected to rise 2.5% in January, more than the 2.37% growth in the previous month, according to LSEG data.

Australia’s S&P/ASX 200 closed 0.19% higher at 8,555.80.

In Southeast Asia, Singapore’s economy expanded by 4.4% in 2024, its fastest growth since 2021, data from the Ministry of Trade and Industry shows. GDP was up 5% year on year in the fourth-quarter of 2024, surpassing the 4.7% growth rate expected by Reuters.

Investors have been watching the city-state’s Straits Times Index which hit an all-time high at the start of the week. The 30-stock benchmark, however, fell 0.17%, following the GDP announcement.

Meanwhile, Malaysia’s economy grew 5.1% in 2024, data from Bank Negara shows. Its GDP expanded 5% in the last quarter of the year, better than the 4.8% estimated by Reuters.

Overnight in the U.S., stocks rose following fresh inflation data and updates on U.S. tariff plans.

The Dow Jones Industrial Average jumped 342.87 points, or 0.77%, to 44,711.43. The S&P 500 climbed 1.04% to 6,115.07, while the Nasdaq Composite advanced 1.50% to 19,945.64.

The Dow had hit session highs after U.S. President Donald Trump signed a presidential memorandum to examine reciprocal tariffs on foreign nations. As part of this, he noted that the U.S. will treat other countries’ non-tariff policies as unfair trade practices that warrant tariffs in response.

Asia markets live updates: Asia markets mostly rise

S&P 500 futures are flat after Trump delays new tariffs, Wall Street heads for winning week: Live updates

Updated Fri, Feb 14 2025 7:19 PM EST

S&P 500 futures were little changed Thursday night after President Donald Trump held off on imposing new reciprocal tariffs.

Futures linked to the broad market index hovered near the flatline, while Dow Jones Industrial Average futures added just 23 points. Nasdaq 100 futures dipped 0.1%.

During the day’s regular session, the S&P 500 added 1.04%, while the tech-heavy Nasdaq Composite rose 1.5%. The Dow advanced 0.77%, hitting its session highs after Trump signed a presidential memorandum on reciprocal tariffs but fell short of enacting them for the time being.

Investors were also seemingly relieved after January’s producer price index, as well as Wednesday’s consumer price index report, appeared to suggest a softer reading for the personal consumption expenditures price index. The PCE price index is the Federal Reserve’s preferred inflation gauge, and it is due later this month.

While markets managed to end Thursday higher, Mark Malek, chief investment officer at Siebert, believes that this relief and positive momentum over a pause in reciprocal tariffs may be short-lived.

“The market will have pressure on Friday — there was not enough clear stimulus for the market to trade this way … nothing that would justify this late-day move. I listened very carefully to the president speaking, and there was nothing in there that stood out to me as great for the market,” he told CNBC in an interview. “Friday is going to be one of those days where people are going to try to figure out what this all means.”

For now, the major averages are all on pace to end the week higher. The S&P 500 and the Dow are respectively set for a gain of about 1.5% and 0.9%. The Nasdaq is 2.2% higher week to date.

Biopharma giant Moderna will report earnings Friday before the bell. Traders will also watch out for the latest retail sales data.

Stock market today: Live updates

Trump signs sweeping reciprocal tariff plan, says more coming

Published Thu, Feb 13 2025 9:15 AM EST Updated Thu, Feb 13 2025 3:03 PM EST

President Donald Trump on Thursday signed a presidential memorandum laying out his plan to impose “reciprocal tariffs” on foreign nations.

“They charge us a tax or tariff and we charge them,” Trump said during a press event in Oval Office.

The president said that under the plan, the U.S. will treat other countries’ non-tariff policies as unfair trade practices that warrant tariffs in response.

Those include value-added taxes, or VATs, and other practices that the office of the U.S. trade representative deems to be unfair trade limitations.

Trump said that foreign countries will not be allowed to send merchandise or other items to the U.S. through another country.

He also suggested that additional tariffs, including on auto imports, are on the way, Reuters reported.

“We want a level playing field,” Trump said.

VATs are consumption taxes levied at different stages of a supply chain. They are “trade neutral,” the nonpartisan Tax Foundation noted Wednesday in a report accusing the Trump administration of mistakenly blaming VATs for a lack of U.S. competitiveness in Europe.

The reciprocal tariffs will not go into effect immediately. Trump said that Howard Lutnick, his nominee for Commerce secretary, will lead the studies to determine the appropriate tariff levels for each affected country.

Lutnick said in the Oval Office that he expects those studies will be complete by April 1.

In a Truth Social post sent after the event, Trump said his plan will include provisions for “subsidies” and “Nonmonetary Tariffs and Trade Barriers” that other countries employ.

“America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly,” Trump wrote.

The new tariffs will follow duties Trump has already slapped on China, Canada and Mexico, as well as on imports of steel and aluminum. Trump’s tariffs on Canada and Mexico are currently on pause after both countries pledged to crack down on illegal crossings and drug trafficking at their respective borders with the U.S.

As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the “Trump Reciprocal Trade Act,” which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.

Since taking office, Trump has signaled his plans to impose tariffs on the European Union. He has highlighted U.S. trade deficits with European partners and complained that EU nations do not purchase enough American cars or farm equipment.

EU leaders have vowed to retaliate against new U.S. tariffs, while warning that Trump’s actions risk sparking a widespread trade war that ultimately hurts everyone.

Trump signs sweeping reciprocal tariff plan, says more coming

‘Reciprocal’ Tariffs Make No Sense

How is it in America’s national interest to let other countries decide what duties we pay?

By  Douglas A. Irwin  Feb. 13, 2025 4:47 pm ET

At an Oval Office press conference Thursday, President Trump confirmed that he’s going ahead with his reciprocal tariff plan. The U.S., he said, will impose the same tariffs on other countries as they impose on the U.S.: “No more, no less.” That sounds fair—we treat them the way they treat us—but it’s actually a terrible idea.

It amounts to outsourcing U.S. tariff policy to other countries. They would dictate what our tariffs would be. If other countries put high tariffs on American goods, then we would impose high tariffs on their goods. So much for American sovereignty. So much for deciding what’s in our own national interest. The British economist Joan Robinson once said that a country shouldn’t throw rocks into its own harbors just because other countries have rocky coasts. The same principle applies here: The U.S. shouldn’t have stupid tariff policies just because other countries have stupid tariff policies.

A reciprocal policy would enormously complicate the U.S. tariff system. The Harmonized Tariff Schedule of the U.S., which details individual rates on particular commodities, has about 13,000 line items. The U.S. trades with roughly 200 countries. Is Washington ready to impose and manage 2.6 million individual tariff rates? The lobbying pressures for exemptions and exceptions on the U.S. side would be enormous. This would fill the swamp, not drain it. Foreign exporters would go to great lengths either to get their products under a lower tariff classification or to transship them to another country to reduce the duty they would face.

More, subscription required.

‘Reciprocal’ Tariffs Make No Sense - WSJ

Trump’s Tariffs Obscure a Much Bigger Challenge for the World

The global economy is utterly dependent on the US. Growth elsewhere doesn’t look promising. 

February 13, 2025 at 9:00 PM GMT

For all the outrage at President Donald Trump’s swift and broad imposition of tariffs, there’s a bigger challenge for the world. The US economy is on a roll, doing much better than anyone anticipated just a few years ago and surpassing partners and competitors alike. Behind the tut-tutting about the negative consequences of levies and the dangers of protectionism is an underlying fear that long-held assumptions that China and, possibly, India will eclipse the US are wide of the mark.

This outperformance precedes Trump's return and is unlikely to be undone, at least in the immediate term, by the impact of new duties. His administration this week ordered tariffs on imported steel and aluminum, and threatened reciprocal charges on countries that tax imports from the US. The step roiled markets from Thailand to South Africa. India intervened to prop up the rupee after the currency fell to a record low. The People's Bank of China is resigned to managing the yuan's retreat rather than trying to prevent its weakening. The greenback's upward march the past few years shows little sign of reversing despite the Trump-induced upheaval. Tariffs are widely considered to be inflationary and likely to slow the pace of interest-rate cuts, assuming they still happen at all, in the next few months.

More, subscription required.

Trump's Tariffs Obscure a Much Bigger Challenge for the World - Bloomberg

In other news.

UK dealers warned over EV battery fire safety following multi-million pound claims

By Tom Seymour  11 February 2025

Allianz UK is warning motor traders to be aware of the risks associated with electric vehicle (EV) battery fires when damaged, mishandled, stored or transported incorrectly.

While research, including findings from Thatcham Research, indicates that EVs are generally less likely to catch fire compared to traditional combustion engines, the intensity and severity of these fires can be significantly greater.

This is due to the ferocity with which lithium-ion batteries can burn, posing unique challenges for motor traders, particularly in relation to health and safety.

Two recent motor trade premise fires resulted in over £5 million and £1.5m worth of claims.

Both were the result of a faulty EV battery that had been removed and was stored at the garage awaiting collection from the manufacturer for investigation.

It is not just EV batteries that businesses should be aware of, many portable hand tools contain lithium-ion batteries too.

A recent fire at a tyre fitting centre resulted in a £250,000 claim after a power tool caught fire while being charged.

Olivia Baker, head of motor trade, Allianz UK, said: "The severity and financial impact of lithium-ion battery fires are considerable.

“Due to the chemical reactions and toxic material that are left behind, these fires can render buildings beyond economical repair.

“Understanding the risks and implementing effective prevention and management strategies are crucial to safeguarding businesses and ensuring the safety of employees, though thankfully at the moment the total number of claims is relatively low."

Motor traders frequently interact with EVs, but the risks are heightened when vehicles are showing signs of battery defects or are subject to recalls or advisory notices linked to the battery. Businesses with high vehicle throughput, such as sales companies and repairers, are particularly affected.

Franchised dealers often face additional exposure when EVs are brought in for diagnostics or warranty work. Breakdown recovery operators will also need to quickly assess the issues with the vehicles they are asked to pick up.

UK dealers warned over EV battery fire safety following multi-million pound claims

I might have had trouble saving France in 1946 - I didn't have television then.

Charles de Gaulle.

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.

I predict you will sink step by step into a bottomless quagmire, however much you spend in men and money." (On the Vietnam War)

Charles de Gaulle.

US Inflation News Gets Worse as Wholesale Prices Jump

February 13, 2025 at 11:10 PM GMT

US wholesale prices rose in January by more than forecast on higher food and energy costs, adding to the growing pile of bad inflation news ahead of more potential tariffs threatened by the Trump administration.

The producer price index for final demand climbed 0.4% from a month earlier, and that after an upwardly revised 0.5% increase in December, the Bureau of Labor Statistics said Thursday. The data on wholesale prices comes just a day after a consumer price index report showed underlying inflation at its highest in more than a year.

Together, the figures are making the prospect of an interest rate cut this year by the Federal Reserve decidedly unlikely. Some economists are already settling on no rate cuts for 2025, while a few pessimists on Wall Street say any more bad news may prompt the central bank to actually start raising rates again.

Fed Chair Jerome Powell told lawmakers this week that inflation expectations “appear to remain well-anchored.” Still, Trump’s fixation on tariffs has introduced some uncertainty into the economic outlook, as has his failure to address the key issue behind his election last November—inflation. The latest readings on consumer expectations, from the University of Michigan and the New York Fed, suggest Americans are becoming worried about the economy’s prospects, and that it’s all the tariff talk that’s doing it. Jordan Parker Erb

US Inflation News Gets Worse as Wholesale Prices Jump: Evening Briefing Americas - Bloomberg

Wholesale prices rose 0.4% in January, more than expected

Published Thu, Feb 13 2025 8:34 AM EST

A gauge of wholesale prices rose in January, indicating that pipeline inflation pressures are persisting and likely keeping the Federal Reserve on the sidelines regarding interest rate cuts.

The producer price index, which measures what producers get for their goods and services, increased by a seasonally adjusted 0.4% on the month, compared to the Dow Jones estimate for 0.3%, the Bureau of Labor Statistics reported Thursday.

Excluding food and energy, core PPI was up 0.3%, in line with the forecast.

The release comes the day after the BLS reported that the consumer price index rose 0.5% on the month, putting the annual inflation rate at 3% and well out of reach of the Fed’s 2% long-run goal.

Together, the releases likely will push back expectations for a rate cut until the second half of the year, though inflation data can be volatile and the outlook could change depending on what subsequent months show.

PPI January 2025:

Scores of firings have begun at federal agencies

Updated 4:54 PM EST, Thu February 13, 2025

Scores of firings have begun at federal agencies, with terminations of probationary employees underway at the Department of Education and the Small Business Administration, federal employees and union sources told CNN on Wednesday.

The probationary employee firings mark the first from the Trump administration as President Donald Trump and Elon Musk’s Department of Government Efficiency aim to dramatically shrink the federal workforce. Until now, federal employees across all government agencies had only been placed on paid administrative leave.

The move came the same day as a federal judge allowed the administration’s deferred resignation program to proceed. About 77,000 employees have accepted the offer, which generally allows them to leave their jobs but be paid through the end of September.

A form letter sent to Department of Education employees, obtained by CNN, informing them of their termination stated: “The Agency finds, based on your performance, that you have not demonstrated that your further employment at the Agency would be in the public interest.”

At the Department of Education, the firings have impacted employees across the agency from the general counsel’s office, to the Office of Special Education and Rehabilitation Services that supports programs for children with disabilities, to the Federal Student Aid office, a union source told CNN.

The source said they have heard from dozens of employees who have been fired, but the full scope of the firings was not immediately clear.

Probationary employee firings were also expected at the US Energy Department Thursday evening, according to six people familiar with the situation. The people said the situation inside the department was fluid and were so far unclear how many total employees could face termination.

There are around 2,000 probationary employees at DOE, a person familiar with the agency’s staffing told CNN, but it was unclear how many could be affected by Thursday’s actions. CNN has reached out to DOE for comment.

The Energy Department’s acting general counsel had a Thursday meeting with heads of department offices and asked offices to compile lists of “mission-critical” probationary employees who could potentially be exempt from the layoffs, the person told CNN. But those lists hadn’t been finalized as of Thursday afternoon, the person said.

Probationary employees are defined as federal employees who have been with the department for less than a year, but a recent Office of Personnel Management memo also stated federal employees working for less than two years could also be considered probationary.

The dismissal of probationary workers has been in the works since Inauguration Day, when the acting head of OPM sent a memo to all agencies ordering them to compile a list of all their probationary workers and send it to the office. The January 20 memo noted that it is easier to terminate these employees.

More

Scores of firings have begun at federal agencies | CNN Politics

U.S. embassies told to prepare for staff cuts as Trump overhauls diplomatic corps, Reuters reports

Published Thu, Feb 13 2025 10:25 PM EST

President Donald Trump’s administration has asked U.S. embassies worldwide to prepare for staff cuts, three sources familiar with the matter told Reuters on Thursday, as part of the Republican president’s effort to overhaul the U.S. diplomatic corps.

The sources said some embassies had been asked to look into reducing both U.S. staff as well as locally-employed staff by 10% each, with a list of the workforce due to be sent to the State Department by Friday, which will then determine further actions.

U.S. embassies around the world employ both diplomats and local staff. Most embassy staff come from the host country, according to the National Museum of American Diplomacy.

Separately, a U.S. official said that around 60 contractors at the State Department’s bureau of Democracy, Human Rights and Labor had been terminated in recent weeks and that there was a possibility of further cuts in other bureaus.

ABC News first reported that U.S. embassies had been told to start planning for staff reductions.

The State Department said in a statement that it does not comment on internal personnel matters.

“The State Department continues to assess our global posture to ensure we are best positioned to address modern challenges on behalf of the American people,” a spokesperson said.

The moves come as Trump tries to reshape the diplomatic corps, issuing on Wednesday an executive order directing Secretary of State Marco Rubio to revamp the foreign service to ensure “faithful and effective implementation” of his foreign policy agenda.

The order, which follows efforts to dismantle the U.S. Agency for International Development, comes as Trump makes changes to ensure U.S. foreign policy is aligned with his “America First” agenda. He has also repeatedly pledged to “clean out the deep state” by firing bureaucrats that he deems disloyal.

The order, which was titled “One Voice for America’s Foreign Relations” also says failure to implement the president’s agenda is grounds for professional discipline, which may result in firing personnel.

More

U.S. embassies told to prepare for Trump staff cuts, sources say

Nissan projects an annual loss as it drops its talks with Japan rival Honda

13 February 2025

Nissan’s April-December profit crashed to 5.1 billion yen ($33 million), a tiny fraction of the 325 billion yen the Japanese automaker earned the previous year.

Nine-month sales dropped less than 1% to 9.14 trillion yen ($59 billion). Nissan projected red ink of 80 billion yen ($519 million) for the full fiscal year through March.

Besides announcing the dismal results, Nissan Motor Corp. also announced Thursday it was dropping the talks it had started in December with Japanese rival Honda Motor Co. for a business integration.

Nissan Chief Executive Makoto Uchida told reporters the focus of the talks had changed from forming a joint holding company to making Nissan into a subsidiary of Honda.

He said that was unacceptable, although the efforts to realize “synergies through a strategic partnership” on electric vehicles and other research will continue.

He said Nissan will try to achieve a turnaround without Honda, while being open to various options, and that a detailed plan will be outlined within a month. Nissan has said announced it will trim its operations, including closing lines, perhaps entire plants, while slashing 9,000 jobs.

Nissan projects an annual loss as it drops its talks with Japan rival Honda

Nissan to close 3 factories, cut shifts in U.S., in bid to end back-to-back quarterly net losses

February 13, 2025 12:02 PM

TOKYO — Nissan CEO Makoto Uchida, desperately trying to dig out from back-to-back quarterly net losses, plans to shutter three factories in the next two years, cut shifts at U.S. plants, slash executive ranks by 20 percent and cast about for new partners in a bid to keep the Japanese carmaker going.

More, subscription required.

Nissan earnings: 3 factories to close after quarterly losses - Automotive News

Chevron to cut up to 20% of global workforce

by Adam McCulloch 13 Feb 2025

Oil giant Chevron Corporation is to make up to 8,000 employees redundant by the end of 2026 in a bid to cut costs.

Between 15% and 20% of jobs will be lost from the 40,000-strong global workforce.

Company vice-chairman Mark Nelson said: “Chevron is taking action to simplify our organisational structure, execute faster and more effectively and position the company for stronger long-term competitiveness.

“We do not take these actions lightly and will support our employees through the transition. But responsible leadership requires taking these steps to improve the long-term competitiveness of our company for our people, our shareholders and our communities.”

The company said it was targeting up to $3bn in costs by the end of 2026 from leveraging technology, asset sales and changing how and where work is done.

The refining sector is wary of the possibility of oil price pressures in coming years as global production growth outpaces demand. As a result, the oil industry as a whole has been consolidating, focusing more on mergers and operational efficiency than on drilling new wells.

Over the past decade employment in the US oil and gas sector has fallen sharply, even as production continues to expand.

Chevron has also been experiencing some production challenges, including cost overruns and delays at a large Kazakhstan oilfield project. The company’s oil and gas reserves have declined to their lowest point in at least a decade, raising concerns about its long-term prospects.

The company moved its headquarters from San Ramon, California, to Houston last year and replaced several long-serving managers.

Chevron’s $53bn deal to buy the oil producer Hess is in limbo due to a court battle with its rival Exxon Mobil, which has more aggressively expanded its own production.

It also announced a new hub in India that will be its largest technology centre outside the US.

Chevron to cut up to 20% of global workforce

Covid-19 Corner

This section will continue until it becomes unneeded.

5 Years Later: America Looks Back at the Impact of COVID-19

Most Americans say the pandemic drove the country apart

February 12, 2025

The most significant pandemic of our lifetime arrived as the United States was experiencing three major societal trends: a growing divide between partisans of the left and right, decreasing trust in many institutions, and a massive splintering of the information environment.

COVID-19 did not cause any of this, but these forces fueled the country’s divided response. Looking back, nearly three-quarters of U.S. adults (72%) say the pandemic did more to drive the country apart than to bring it together.

Fundamental differences arose between Americans over what we expect from our government, how much tolerance we have for health risks, and which groups and sectors to prioritize in a pandemic. Many of these divides continue to play out in the nation’s politics today.

The pandemic left few aspects of daily life in America untouched. Looking back on it nearly five years later, three-quarters of Americans say the COVID-19 pandemic took some sort of toll on their own lives. This includes 27% who say it had a major toll on them and 47% who say it took a minor toll.

The virus itself also had a staggering impact. A large majority of U.S. adults have had COVID-19 at some point, and more than 1 million Americans died from it. Millions continue to struggle with long COVID. And most say they know someone who was hospitalized or died from the virus.

But most Americans have moved on. The vast majority of those who say their lives were impacted report having recovered at least somewhat. Among U.S. adults overall, about one-in-five (21%) now say the coronavirus is a major threat to the health of the U.S. population as a whole. And a majority (56%) think it’s no longer something we really need to worry about much.

This is reflected in Americans’ behavior: Just 4% regularly wear a mask, while most never do. And fewer than half of U.S. adults said they planned to get an updated COVID-19 vaccine last fall, a stark contrast to the long lines and widespread demand that met the initial rollout of vaccines.

At the five-year anniversary of the coronavirus outbreak, a major Pew Research Center survey conducted in late October 2024 provides insight into how Americans assess the nation’s pandemic response. These findings are paired with an analysis of trends dating to early 2020. The report sections take a closer look at COVID-19’s impact in four specific areas of American life: health, work, religion and technology.

More

How COVID-19 Changed American Life: Looking Back 5 Years Later | Pew Research Center

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.

‘A house battery you can drive around’: how a handful of Australians are selling power from their cars back to the grid

Story by Scott Dwyer, University of Technology Sydney; Jaime Comber, University of Technology Sydney, and Kriti Nagrath, University of Technology Sydney

13 February 2025

Our cars sit unused most of the time. If you have an electric vehicle, you might leave it charging at home or work after driving it. But there’s another step you could take. If you have a bidirectional charger, you can set it to sell power back to the grid when demand is high.

Fewer than ten people across Australia actually do this, because the technology – known as Vehicle-to-Grid (V2G) – is very new. To date, it only works with a single car model (Nissan LEAF) and a single charger (Wallbox Quasar 1). We’ve estimated the number of users based on sales of this charger. The chargers are expensive and there’s a thicket of regulations to navigate.

But that could soon change. Last year, Climate Change Minister Chris Bowen announced new Australian standards and communications protocols for bidirectional chargers in a bid to make it mainstream. Cheaper EVs and bidirectional chargers will make this more appealing.

If it takes off, V2G could become extremely useful to the power grid as a way to release power as required and stabilise the grid against fluctuations.

This week, Australia’s renewable energy agency released a V2G roadmap, which notes widespread uptake could “materially reduce electricity costs for consumers and accelerate national emissions reduction”.

To understand why people are using the technology and the challenges to do so, we interviewed five early adopters from New South Wales and South Australia. Our findings are released today.

Setting up V2G isn’t easy

Our interviewees reported a long, complex journey to set up V2G. These early adopters had no playbook to follow, so the process was one of trial and error.

Some relied on professional networks or social media groups to gather information. They spent significant time and energy finding electricians, installers and charger manufacturers to set up their systems. Strata approvals were required. They also had to negotiate with power retailers and distributors.

Delays were common, especially when seeking approval from the energy distributor. Some interviewees reported delays of months to years.

Most interviewees had experience in a technical field such as engineering or technology. Some reported a significant learning curve, while others using new software from their retailer reported a smoother “set and forget” process.

So why do it? Our interviewees had several reasons, ranging from getting the most out of expensive assets (solar and the EV) to offsetting power bills entirely.

Four out of five interviewees reported making a small profit of about A$1,000 annually instead of a bill. Many wanted to be able to reduce dependence on the grid and reduce their environmental impact.

As one told us:

you originally think of it as a car you can also use to power your house. [But actually] it’s a house battery you can drive around.

Maximising savings

Typically, our interviewees plugged their car in at home during the day to charge from their rooftop solar. In the evenings when power prices peaked, they used an app to sell power back to the grid. This maximised their cost savings for charging the car battery and their earnings from the grid.

More

‘A house battery you can drive around’: how a handful of Australians are selling power from their cars back to the grid

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

World Debt Clocks (usdebtclock.org)

Another weekend and what fiendish new plans for next week will Trump and Musk cook up over this weekend? In tomorrow’s LIR, Charles de Gaulle’s prophetic 1965 case for gold over fiat, and Uncle Scam wasn’t even one trillion in official debt. (It only hit 998 billion in 1981.) Have a great weekend everyone.

The future does not belong to men.

Charles de Gaulle. (Predicting AI?) 

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