Tuesday, 18 February 2025

USA Meets Russia. Europe Missing. US Stock Casinos Reopen.

Baltic Dry Index. 806 +14            Brent Crude 75.40

Spot Gold 2912              US 2 Year Yield 4.26  Friday  

US Federal Debt. 36.493 trillion!

The man who is a pessimist before forty-eight knows too much; if he is an optimist after it, he knows too little.

Mark Twain.

The US stock casinos and markets reopen later today after yesterday’s holiday celebrating President Trump Day.

Asian stock casinos are mostly higher this morning.  Australia’s central bank, as expected, cut its key interest rate for the first time in four years.

In Saudi Arabia, Marco meets Sergey, with no European in sight, (well, except for Sergey.) Macron, Scholz, Starmer, Tusk, all missing and miffed. 

Asia markets mostly rise as investors assess Chinese President Xi's comments in a meeting with top executives

Updated Mon, Feb 17 2025 11:30 PM EST

Asia-Pacific markets mostly rose Tuesday, a day after Chinese President Xi Jinping signaled support to the country’s private sector and urged businesses to “show their “talents.”

Australia’s S&P/ASX 200 was down 0.58%, after the Reserve Bank of Australia cut rates by 25 basis points to 4.1%, in line with Reuters’ estimates. This marks the RBA’s first rate cut in over four years.

The Australian dollar had strengthened 0.17% to 0.6342 against the dollar.

The yields on Australian 10-year government bonds have dropped nearly 20 basis points since Jan. 13 to 4.450% on Tuesday, according to LSEG data.

Japan’s benchmark Nikkei 225 was trading 0.66% higher, while the broader Topix index advanced 0.61%.

South Korea’s Kospi was up 0.59%, while the small-cap Kosdaq gained 0.15%.

Mainland China’s CSI 300 Index reversed course to rise 0.4%.

Hong Kong’s Hang Seng index rose 2.05%. The Hang Seng tech index climbed 3.04%, reversing course from its over 2% Monday after Xi’s comments in a rare closed-door symposium.

Indian markets started the day in negative territory, after the benchmark Nifty 50 index snapped its eight-day losing streak with modest gains in the previous session. The Nifty 50 was trading 0.2% lower, while the BSE Sensex index was down 0.15%.

Singapore will be holding its first budget under Prime Minister Lawrence Wong later in the day. Analysts are expecting more support for both households and businesses as the city-state gears up for a general election in November.

U.S. markets were closed due to a public holiday. U.S. stock futures were higher late Monday, as the major averages come off from a winning week.

Dow Jones Industrial Average futures advanced 106 points, or 0.2%. S&P 500 and Nasdaq 100 futures climbed 0.2% and 0.2%, respectively.

Asia markets live updates: Asia markets mostly rise; RBA expected to cut rates

In other news.

Fed Governor Bowman says more progress on inflation is needed before further rate cuts

Published Mon, Feb 17 2025 12:07 PM EST

Federal Reserve Governor Michelle Bowman said on Monday that while monetary policy “is now in a good place,” she wants to see data reflect more progress on inflation before cutting interest rates further. 

“I would like to gain greater confidence that progress in lowering inflation will continue as we consider making further adjustments to the target range,” Bowman said in a speech at the American Bankers Association. 

Rising core goods price inflation since last spring has slowed progress, Bowman said. While she expects inflation to continue to decelerate this year, she said disinflation “may take longer than we would hope.” 

“I continue to see greater risks to price stability, especially while the labor market remains strong,”  Bowman said.

The most recent consumer price index showed inflation trended higher than expected in January, rising 0.5% month-over-month versus the Dow Jones estimate calling for a 0.3% rise. This put the annual inflation rate at 3%, coming in above consensus forecasts for 2.9%

The Fed maintained its target rate at a range of 4.25% to 4.5% at its January policy meeting.

Bowman said Monday the current level is appropriate for “allowing the Committee to be patient and pay closer attention to the inflation data as it evolves.”

“The current policy stance also provides the opportunity to review further indicators of economic activity and get further clarity on the administration’s policies and their effects on the economy,” continued Bowman.

President Donald Trump’s tariffs against the U.S.’s largest trading partners have raised concerns among economists of higher prices. Expectations for further interest rate cuts in 2025 have weakened on Trump’s trade war. Traders are currently pricing in just a single quarter-percentage-point rate reduction this year, according to CME Group Data. 

Fed's Bowman: More progress on inflation needed before more rate cuts

Southwest Airlines to slash 15% of corporate jobs in ‘unprecedented’ move to cut costs

Published Mon, Feb 17 2025 5:00 PM EST Updated Mon, Feb 17 2025 5:44 PM EST

Southwest Airlines said Monday that it is cutting about 15% of corporate jobs, or about 1,750 people, a move its CEO called “unprecedented” as the company scrambles to cut costs.

The company said it expects savings from the cuts of $210 million this year and about $300 million in 2026. The layoffs will be mostly done by the end of the second quarter and include some senior leadership roles, CEO Bob Jordan said in a staff note, which was seen by CNBC.

“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions,” Jordan said in a news release. “We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization.”

Southwest’s decision to slash jobs comes several months after a settlement with activist investor Elliott Investment Management, which won five Southwest board seats, short of control. The firm had also pushed for Jordan to be replaced as CEO, though it was not successful.

Other recent cost-cutting measures at Southwest included a hiring freeze, a pause to the internship program and an end to team-building “rallies,” a company tradition that dated back to 1985, CNBC previously reported. It has also aggressively cut unprofitable routes.

Last year, Southwest outlined a plan to increase profits that included ditching its more than 50-year-old open seating model in favor of assigned seats and creating a section with extra legroom. It also recently launched overnight flights for the first time.

“We must ensure we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, pace, and urgency,” Jordan said in his memo on Monday.

The layoffs take effect in late April, Jordan said, adding that most affected employees will not work but will still receive salary, benefits and bonus until then.

Southwest Airlines to slash 15% of corporate jobs in 'unprecedented' move to cut costs

Finally, the Ukraine resources Trump covets.

Mapped: Where are Ukraine’s rare earth mineral resources and why does Trump want them?

Tom Watling Mon 17 February 2025 at 11:43 am GMT

Donald Trump wants Ukraine to pay for financial and military support by affording Washington access to the country’s vast but untapped rare earth minerals.

The US president announced last week that the war-torn country was on board with his plan, potentially worth hundreds of billions of dollars.

“We're telling Ukraine they have very valuable rare earths,” Mr Trump said. "I told them that I want the equivalent of like $500 billion worth of rare earths, and they’ve essentially agreed to do that.”

President Volodymyr Zelenskiy has said he is ready to do a deal with Mr Trump that includes U.S. involvement in developing Ukraine's huge deposits of rare earths and other critical minerals.

The Kremlin jumped on the comments, saying it demonstrated the US is no longer willing to provide free aid to Kyiv, before adding, what it was against Mr Trump giving any help to Ukraine whatsoever.

Below, we look at where these resources are in Ukraine, and why Kyiv has struggled to mine these minerals.

What are Ukraine’s rare earths?

Ukraine is sitting on one of Europe’s largest deposits of critical minerals, including lithium and titanium, much of which is untapped. According to the Institute of Geology, Ukraine possesses rare earth elements such as lanthanum and cerium, used in TVs and lighting; neodymium, used in wind turbines and EV batteries; and erbium and yttrium, whose applications range from nuclear power to lasers. The EU-funded research also indicates that Ukraine has scandium reserves but detailed data is classified.

Mr Zelensky has been trying to develop these resources, estimated to be worth more than £12 trillion, based on figures provided by Forbes Ukraine, for years.

In 2021, he offered outside investors tax breaks and investment rights to help mine these minerals. These efforts were suspended when the full-scale invasion started a year later.

Anticipating the notoriously transactional Mr Trump might take an interest in this, Mr Zelensky then placed the mining of these minerals into his victory plan, which was drawn up last year.

The minerals are vital for electric vehicles and other clean energy efforts, as well as defence production.

Estimates based on government documents suggest that Ukraine’s resources are also highly varied. Foreign Policy found that Ukraine held “commercially relevant deposits of 117 of the 120 most-used industrial minerals across more than 8,700 surveyed deposits”.

Included in that is half a million tonnes of lithium, none of which has been tapped. This makes Ukraine the largest lithium resource in Europe.

More

Mapped: Where are Ukraine’s rare earth mineral resources and why does Trump want them?

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.

Australia’s central bank cuts rates for the first time in more than four years, flags economic uncertainties

Published Mon, Feb 17 2025 10:32 PM EST

The Reserve Bank of Australia on Tuesday cut benchmark interest rates for the first time in over four years, finally joining ranks with other major global central banks, as softening inflation allows room for easing policy.

The RBA cut rates by 25 basis points to 4.10%, marking its first easing since November 2020, when the central bank cut its key rate to a record low, as it battled a slowing economy during the pandemic.

“While today’s policy decision recognises the welcome progress on inflation, the Board remains cautious on prospects for further policy easing,” the RBA board members said in the statement.

The statement signaled the central bank’s intention to keep “any further withdrawal of monetary restriction” gradual, Abhijit Surya, senior APAC economist at Capital Economics said in a note.

As the RBA sounded a hawkish tone, Surya forecast the ongoing easing cycle to be “short-lived,” penciling in only two rate cuts in the current cycle, pegging the terminal cash rate at 3.60%.

The central bank had held its policy rate steady at 4.35% since November 2023, following an extended period of 13 rate hikes to tame inflation.

The Tuesday decision was in line with market expectations, with government bonds rallying in recent weeks on anticipation of an interest rate cut. The yields on Australian 10-year government bonds dropped nearly 20 basis points since Jan. 13 to 4.450% on Tuesday, according to LSEG data.

The RBA has lagged behind major global central banks that kicked off an easing cycle late last year.

In its last policy meeting in December, the central bank said it was more confident that inflation was declining and that might allow it to ease policy at some stage.

Australia’s inflation over the 12 months through the December quarter eased to 2.4%, compared with 2.8% in the 12 months through September quarter, the Australian Bureau of Statistics data showed. The RBA has pegged its medium term inflation target between 2% and 3%.

More

Australia's central bank cuts rates for the first time in more than four years, flags economic uncertainties

Rachel Reeves faces fresh blow as one in three businesses planning to cut jobs this year

17 February 2025

Confidence among UK employers has taken a significant hit, with a new report revealing that one in three businesses are planning to cut jobs in 2025 due to rising employment costs.

A new survey of over 2,000 employers found that Chancellor Rachel Reeves's planned increases to National Insurance Contributions (NICs) and the national minimum wage are heavily impacting hiring decisions.

The Chartered Institute of Personnel and Development (CIPD) warned that these changes could stifle growth, with many businesses planning redundancies or scaling back recruitment to offset rising expenses.

Peter Cheese, chief executive of CIPD, said: "These are the most significant downward changes in employer sentiment we've seen in the last 10 years, outside of the pandemic. Employer confidence has been impacted by planned increases to employment costs and employment indicators are heading in the wrong direction."

From April, larger businesses will face increased National Insurance Contributions, with thresholds dropping from £9,100 to £5,000 and rates rising from 13.8% to 15%. The British Retail Consortium has estimated that this change could cost UK retailers £2.33 billion

The CIPD's study revealed that 33% of businesses expecting higher employment costs intend to reduce their workforce, while two in five plan to raise prices to manage the financial burden.

Mr Cheese noted that sectors like retail and hospitality, which employ large numbers of people, will be particularly affected.

He added: "If the Government's plans are to succeed, it's vital they set out how they will help businesses to support growth and investment, and it's important this support is felt across the economy."

Meanwhile, a separate survey showed a sharp decline in confidence among small businesses.

The Federation of Small Businesses (FSB) found that in the fourth quarter of 2023, small business confidence was at its lowest point outside of the pandemic.

A survey of nearly 1,400 small firms revealed that those in accommodation and food services were especially pessimistic, citing barriers to growth such as economic challenges, high taxes, and labor costs.

Tina McKenzie of the FSB said: "Small firms are understandably nervous about their prospects as 2025 gets under way.

"The upcoming Employment Rights Bill is a major source of stress for small firms, with nine in 10 business owners saying they are concerned about its introduction. This is undoubtedly contributing to the very subdued confidence levels seen in our research."

The Employment Rights Bill, introduced to Parliament in October 2024, aims to overhaul employment laws to create a fairer workplace.

Key provisions include banning zero-hours contracts, mandating sick pay from the first day of illness and enhancing protections against unfair dismissal.

However, small business owners are concerned about the impact on operational flexibility, particularly proposed changes to unfair dismissal rules that would allow employees to take their employer to a tribunal from day one on the job.

She added: "On the plus side, the Government's plans to reduce late payment - a long-standing source of financial strain for small firms - cannot come soon enough."

Rachel Reeves faces fresh blow as one in three businesses planning to cut jobs this year

Covid-19 Corner

This section will continue until it becomes unneeded.

Social media censorship of COVID vaccine injury discussion led to suicides, families, advocates say

"The suicides are a result of not knowing there is support, not being able to reach out for help to access the support that does exist and being removed from support networks that were some people's only lifeline," Brianne Dressen said.

Published: February 13, 2025 11:01pm Updated: February 14, 2025 5:56pm

Social media censorship of COVID-19 vaccine injuries prompted by the Biden administration led to suicides, according to vaccine victims and their advocates.

Many people have experienced injuries from COVID vaccines, and some of them were unable to find support, says a U.S. senator and other advocates for vaccine victims. Social media censorship made it difficult for these victims to connect with support groups online, which resulted in some committing suicide.

Sen. Ron Johnson, R-Wis., told the “Just the News, No Noise” TV show on Tuesday that Facebook is in the process of sending him information regarding the censorship of COVID vaccine injury groups.

“We have heard from representatives of Facebook,” Johnson said. “They understand now that they need to take this very seriously. And the reason they need to is what they did, apparently on the direction of federal officials, is they took down these group chats of the vaccine-injured – people that were being gaslit, they were being ignored by their own health providers, they couldn't get treatment, they were suffering severe adverse events, and the only sense of support they had was through these Facebook chat groups

“And after my panels [on COVID], those chat groups were taken down, and the result of that is people committed suicide. They had no support whatsoever, they were in utter despair, and the result of Facebook's action, at the behest of the federal officials, was that people took their own lives,” he continued.

Johnson said that he wants Facebook to tell him “what happened, who within their organization participated, why they participated in taking down these groups repeatedly, and at whose direction from the federal government was this.”

“Who in the federal government forced this censorship on Facebook, and as result, resulted in the deaths of American citizens who were injured by the vaccine that was pushed and mandated on them?” he asked.

Johnson, chairman of the Senate Permanent Subcommittee on Investigations, sent a letter last week to Meta CEO Mark Zuckerberg, demanding he turn over Facebook's records on its alleged censorship of COVID-19 vaccine-injured people. 

Facebook has been accused of censoring posts about injuries from the COVID vaccines, and even allegedly shutting down support groups for people who claimed they were injured by the vaccines.

Silencing anything critical of the COVID cartel and the vaccines

The alleged censorship was recently chronicled in the November 2024 book, "Worth a Shot?", which claimed that within five days of Johnson's roundtable on COVID vaccine injuries in 2021, a large support group for injured people on Facebook was unexpectedly closed. 

The book also claimed that users who posted about their vaccine injuries were "shadow-banned" on the platform, meaning their posts were not as visible, and warnings would be added to posts on the injury that “urged the viewer to go to Facebook’s Community Guidelines to get accurate information about the COVID vaccine," said Johnson.

More

Social media censorship of COVID vaccine injury discussion led to suicides, families, advocates say | Just The News

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.

IIT-Delhi Research Shows Thin Graphene Shields Glass From Mechanical & Chemical Damage Underwater

17 February 2025

New Delhi: Ever noticed how something as simple as cleaning raindrops off your eyeglasses, wiping a windshield or removing spilled water from a glass tabletop can leave unsightly marks?

These everyday scenarios reveal the vulnerability of glass, which, despite its transparency and functionality, is prone to surface damage during routine use.

Moving in the direction of addressing this challenge, the Indian Institute of Technology (IIT), Delhi has demonstrated that about a nanometre-thick graphene -- by virtue of its exceptional chemical shielding and mechanical strength -- can remarkably improve the durability of glass exposed to water.

A research paper, titled "Graphene Mitigates Nanoscale Tribochemical Wear of Silica Glass in Water", has been published in the "Nano, Micro, Small" journal.

Statement Of Professor At The Materials Science & Engineering Department, IIT Delhi

According to Nitya Nand Gosvami, Professor at the Materials Science and Engineering Department, IIT-Delhi, surprisingly, the water surrounding us in the form of humidity or moisture makes things even worse.

"For example, windshield wipers sweeping dusty glass during a rainy drive can create microscopic scratches as tiny dirt grinds against the surface. Similarly, cleaning a glass table or eyewear lens with a damp cloth may seem harmless, but water molecules can promote and seep into micro-scratches, wearing out the glass at a molecular level.

"These water-driven processes, though often invisible, are a hidden enemy of glass, reducing its strength, lifespan and reliability," Gosvami told PTI.

He explained that repeated scratch tests carried out by the researchers at the nanoscale revealed that just a few layers of graphene can transform fragile silica glass into a damage-resistant surface in water by preventing severe wear.

"Despite the ubiquitous use of glass, its simultaneous susceptibility toward scratch-induced defects and atmospheric hydration deteriorates its mechanical and chemical durability. Here, it is demonstrated that the deposition of a few-layer graphene provides unprecedented wear resistance to silica glass in aqueous conditions.

"To this extent, nanoscale scratch tests were carried out on graphene-glass surfaces via contact-mode atomic force microscopy with chemically inert and reactive tip," Gosvami said.

A Simple Yet Practical Solution

The research highlights a simple yet practical solution for creating ultra-durable glass coatings, particularly for moisture-sensitive applications, such as smartphone screens, camera lenses, automotive windshields, solar panels and even optical instruments exposed to humid or wet environments.

"Interestingly, zero wear was observed when scratched with both hard diamond and reactive silicon countersurfaces, despite the latter being aggressively corrosive to glass. Molecular simulations reveal the secret behind graphene's effectiveness -- it prevents the chemical 'sticking' of glass to reactive bodies sliding in the presence of water.

"This shielding ability of graphene protects the glass from combined physical and chemical damage," said N M Anoop Krishnan, Professor at IIT-Delhi's Civil Engineering Department.

IIT-Delhi Research Shows Thin Graphene Shields Glass From Mechanical & Chemical Damage Underwater

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

World Debt Clocks (usdebtclock.org)

The most likely way for the world to be destroyed, most experts agree, is by accident. That’s where we come in; we’re computer professionals. We cause accidents.

Anon.

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