Tuesday, 18 March 2025

Fed Day One. OECD Downgrades Outlook. Oh Canada!

 Baltic Dry Index. 1658 -11         Brent Crude 71.42

Spot Gold 3012             US 2 Year Yield 4.06  +0.04  

US Federal Debt. 36.610 trillion!!

'It is in truth not for glory, nor riches, nor honours that we are fighting, but for freedom - for that alone, which no honest man gives up but with life itself.'

Thus our nation under their protection did indeed live in freedom and peace up to the time when that mighty prince the King of the Americas, Trump, the one who reigns today, when our kingdom had no head (Trudeau) and our people harboured no malice or treachery and were then unused to wars or invasions, came in the guise of a friend and ally to harass them as an enemy.

Declaration of Ottawa 2025, with apologies to Arbroath 1320.

In the stock casinos, a bounce, a correction, or the start of the Great Trump bear market?

What will the Fed do to their key interest rate tomorrow?  But would a rate cut really stop a new stocks bear market if that’s what the tyrant King’s minions ministers want?

Asia-Pacific markets rise as Hong Kong tech stocks rally; Baidu shares pop 9%

Updated Mon, Mar 17 2025 11:52 PM EDT

Asia-Pacific markets rose on Tuesday, tracking gains on Wall Street, which ticked up after U.S. retail sales data appeared to ease recession concerns.

Hong Kong’s Hang Seng Index led gains in Asia, rising 1.93% on the back of strong moves in tech giants like Baidu, which was up 9.83% as at 11:46 a.m. local time.

Meanwhile, mainland China’s CSI 300 was up 0.15%, reversing course from losses in the previous session.

Investors will be keeping a close watch on Japanese markets, as the Bank of Japan kicks off its two-day monetary policy meeting on Tuesday. The central bank is widely expected to hold interest rates steady at 0.5% when the meeting concludes on Wednesday.

The BOJ’s two-day meeting coincides with the U.S. Federal Reserve, with the latter also expected to keep interest rates unchanged.

Japan’s benchmark Nikkei 225 rallied 1.43%, while the broader Topix index rose 1.41%.

Over in South Korea, the Kospi index advanced 0.17%, while the small-cap Kosdaq added 0.11% in choppy trade.

Australia’s S&P/ASX 200 traded flat, paring gains from earlier in the session.

India’s benchmark Nifty 50 had ticked up 0.45% at the open, while the BSE Sensex increased 0.43%.

U.S. futures edged down, even after all three benchmarks made a comeback from a four-week decline exacerbated by falling consumer confidence and U.S. President Donald Trump’s chaotic tariff policy rollout.

The S&P 500 gained 0.64% to close at 5,675.12, while the Nasdaq Composite climbed 0.31% and ended at 17,808.66. The Dow Jones Industrial Average also advanced 353.44 points, or 0.85%, to end at 41,841.63.

The 30-stock index was bolstered by gains in Walmart and International Business Machines. All three of the major averages posted back-to-back gains.

Investors have seen ‘whiff’ of stagflation, Mohamed El-Erian says

Market participants have gotten a taste of what so-called stagflation would look like, according to Mohamed El-Erian, chief economic advisor at Allianz.

Stagflation refers to a combination of higher prices and slower economic growth. Though this economic setup has not been seen in the U.S. in half a century, President Donald Trump’s tariff policy has raised alarm that it could be coming back.

“I call it a whiff of stagflation,” El-Erian said on CNBC’s “Closing Bell: Overtime.”

El-Erian added that investors should keep an eye out for anything that can show growth is cooling toward 1%, which he called “stall speed.”

Asia markets live: Bank of Japan and Fed meeting in focus

Stock futures edge down even after major averages book two straight winning days: Live updates

Updated Tue, Mar 18 2025 10:55 PM EDT

Stock futures edged down on Monday night following two consecutive winning sessions that offered a reprieve from the market’s recent sell-off.

Dow Jones Industrial Average futures fell 84 points, or 0.2%. S&P 500 futures was down 0.24% while Nasdaq 100 futures dropped 0.34%.

Those moves follow a second-straight winning session on Wall Street. That marks a turn after several tough weeks on Wall Street as some soft economic data and President Donald Trump’s on-again-off-again tariff policy left investors wary of the U.S.′ financial health.

The S&P 500 officially entered correction territory last week, but the index has made up some notable ground in the recovery rally seen in Friday and Monday’s sessions. Despite the recent bounce, the tech-heavy Nasdaq Composite still sits in a correction, a term used to describe an index falling at least 10% from a recent high. The three major averages all remain down on the year, underscoring the strength of the market’s pullback.

While investors continue to follow updates out of the White House, they’ll turn their attention to the Federal Reserve two-day policy meeting that kicks off Tuesday.

Traders will closely follow Wednesday afternoon’s interest rate announcement and subsequent press conference with Fed Chair Jerome Powell. Fed funds futures are pricing in a 99% likelihood that the central bank holds rates steady, according to CME’s FedWatch tool.

“We had two distinct stages to what was the fifth fastest correction since World War II: The first one was a good old growth scare, then we had pretty nasty technicals,” said Mohamed El-Erian, chief economic advisor at Allianz. “Most of the bad technicals are behind us. So the two questions going forward is: Will the growth scare be contained? And will the hope in the Fed put prove realistic or not?”

Before Wednesday’s rate policy announcement, investors will monitor economic data on imports, housing, building and production due Tuesday morning. There are no major earnings reports expected on Tuesday.

Stock market today: Live updates

Gold hits record high as tariff uncertainty fuels safe-haven demand

18 March 2025

(Reuters) - Gold prices scaled a record peak above the crucial $3,000-mark on Tuesday for the second time within a week, as investors sought cover from economic concerns fuelled by U.S. President Donald Trump's tariff policies.

Spot gold was up 0.2% at $3,008.08 an ounce as of 0249 GMT after hitting a record high of $3,012.05 per ounce earlier in the session.

Gold rose above the $3,000/oz milestone for the first time on Friday.

U.S. gold futures rose 0.4% to $3,017.60.

Historically considered a hedge against geopolitical instability, gold has risen more than 14% so far this year. Since Trump took office in January, gold has hit a record high 14 times as trade tensions have boosted safe-haven demand.

Trump has floated plans for a series of U.S. tariffs, from a flat 25% on steel and aluminium which came into effect in February, and reciprocal and sectoral tariffs that he said will be imposed on April 2.

"Gold is moving higher on account of a weaker dollar and continued tariff uncertainties ... With Gold at record highs there is a lot of technical and chart based buying that kicks in since there is no resistance apparent on the charts," said Marex analyst Edward Meir.

The U.S. dollar index wallowed near a five-month trough, making gold cheaper for overseas buyers. [US/][USD/]

New economic projections from Federal Reserve officials this week will provide the most tangible evidence yet of the likely impact of Trump administration policies.

Forecasters have marked down their expectations for U.S. growth this year, raised concerns about a potential recession, and expect increased inflation.

An Israeli air strike killed three Palestinians in Gaza on Monday, medics said, with no sign of progress in renewed talks on sustaining a ceasefire deal between Israel and Hamas.

"These Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher," Capital.com's financial market analyst Kyle Rodda said.

Spot silver gained 0.2% to $33.89 an ounce, platinum added 0.5% to $1,004.65 and palladium rose 0.5% to $969.6.

Gold hits record high as tariff uncertainty fuels safe-haven demand

In other news.

U.S. and global economic outlooks cut by OECD as Trump’s trade tariffs weigh on growth

Published Mon, Mar 17 2025 6:08 AM EDT

Both U.S. and global economic growth is set to be lower than previously projected as President Donald Trump’s proposed tariffs on goods imported to the U.S. weigh on growth, according to the latest estimates from the Organisation for Economic Co-operation and Development.

“Global GDP growth is projected to moderate from 3.2% in 2024, to 3.1% in 2025 and 3.0% in 2026, with higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending,” the OECD said Monday in its interim Economic Outlook report.

“Annual GDP growth in the United States is projected to slow from its strong recent pace, to be 2.2% in 2025 and 1.6% in 2026.”

In its previous projections, published in December, the OECD had estimated 3.3% global economic growth this year and next. The U.S. economy had been expected to grow 2.4% in 2025 and 2.1% in 2026.

Mathias Cormann, secretary-general of the OECD, on Monday said that the uncertainty around trade policy was a key factor in the organization’s projections.

“There’s a very significant level of uncertainty right now, and you know it is clear that the global economy would benefit from increases in certainty when it comes to the trade policy settings,” he told CNBC’s Silvia Amaro.

In its report, the OECD said its latest projections were “based on an assumption that bilateral tariffs between Canada and the United States and between Mexico and the United States are raised by an additional 25 percentage points on almost all merchandise imports from April.”

If the tariff increases were lower, or applied to fewer goods, economic activity would be stronger and inflation would be lower than projected, “but global growth would still be weaker than previously expected,” the report noted.

Canada and Mexico, both on the receiving end of tariffs imposed by the U.S., saw their growth outlooks slashed dramatically. Canada’s economy is now expected to grow 0.7% this year, down from the previous 2% estimate, and Mexico’s is projected to shrink by 1.3% — compared to a previously estimated 1.2% expansion.

The OECD also updated its inflation forecast, saying price growth was set to be higher than previously expected, but would ease due to moderating economic growth.

More, much more.

U.S. and global economic outlooks cut by OECD as Trump's trade tariffs weigh on growth

Retail sales increased 0.2% in February, though spending up less than expected

Published Mon, Mar 17 2025 8:32 AM EDT

Consumers spent at a slower-than-expected pace in February, though underlying readings indicated that sales still grew at a solid pace despite worries over an economic slowdown and rising inflation.

Retail sales increased 0.2% on the month, better than the downwardly revised decline of 1.2% the prior month but below the Dow Jones estimate for a 0.6% rise, according to the advanced reading Monday from the Commerce Department. Excluding autos, the increase was 0.3%, in line with expectations.

The sales number is adjusted for seasonal factors but not for inflation. Prices rose 0.2% on the month, according to a previous Labor Department report, indicating that spending was about on pace with inflation.

The so-called control group, which strips out noncore sectors and feeds directly into gross domestic product calculations, rose a better-than-expected 1%.

“Not a great report, but one still in positive territory despite how pessimistic consumers are about the future,” said Robert Frick, corporate economist at Navy Federal Credit Union. “But the main factor in consumer spending is consumer income, and that’s growing at a good rate and had an impressive leap in January.”

Online spending helped boost the sales number for the month, with nonstore retailers reporting a 2.4% increase. Health and personal care showed a 1.7% gain while food and beverage outlets saw a 0.4% rise.

On the downside, bars and restaurants reported a 1.5% decrease, while gas stations were off 1% amid falling prices at the pump.

Sales overall increased 3.1% on a year-over-year basis, better than the 2.8% inflation rate as measured by the consumer price index.

One other downbeat note from the report was a steep revision for January, which originally was reported as a 0.9% decline.

The release comes amid heightened worries over economic growth, particularly as President Donald Trump engages in an aggressive tariff battle with leading U.S. trading partners. Economists worry that the tariffs will drive up inflation and slow the economy.

More

Retail sales increased 0.2% in February, though spending up less than expected

Finally, does President Trump actually want a stock casinos bear market? If so, he’s very likely to want it in year one of his final four year presidency.

Why are Trump supporters claiming he wants to crash the US stock market?

Some MAGA followers are spreading an unsubstantiated theory related to the cost of the US national debt.

By Erin Hale  Published On 17 Mar 2025

The US stock market has had a bumpy ride since United States President Donald Trump’s election in November.

After hitting record highs in the aftermath of Trump’s victory, US stocks have shed trillions of dollars amid his dizzying back-and-forth announcements on tariffs and growing fears of a recession.

While Trump has played down the turbulence as a temporary “period of transition” on the road to a stronger economy, supporters and critics of the US president alike have speculated without evidence that he may be trying to crash the stock market on purpose.

What is happening with the US stock market?

Trump’s vacillating economic policies have created uncertainty – something investors famously dislike.

The benchmark S&P500, which tracks the performance of 500 of the biggest US firms, has lost nearly $5 trillion in value from its February 19 peak.

On March 10, the tech-heavy Nasdaq fell 4 percent – its worst single-day drop since September 2022.

Regardless of whether Trump is playing the long game as he claims, the past month “stands out for both the amount of uncertainty and the variety of fronts”, Tara Sinclair, director of the George Washington University Center for Economic Research, told Al Jazeera.

The Economic Policy Uncertainty Index, which the Federal Reserve Bank of St. Louis produces based on news coverage of economic policy-related issues, in February hit its highest level since the height of the COVID-19 pandemic in 2020.

The Global Economic Policy Uncertainty Index in January reached its highest point on record apart from May 2020.

Why are some people claiming that Trump wants to crash the stock market?  

There are several unsubstantiated theories about why Trump might want to crash the stock market, but chief among them is that he is trying to make it easier to pay off the US’s $36 trillion national debt by lowering interest rates.

Since taking office, Trump has both expressed concern about the size of the debt and called on the Federal Reserve to lower interest rates.

In a recent interview with FOX News, he claimed that “nobody ever gets rich when the interest rates are high, because people can’t borrow money.”

With a debt to gross domestic product (GDP) ratio of about 120 percent, the federal debt is approaching its highest level since the end of World War II.

It is also expensive to pay off – the US government last year spent more than $1 trillion on interest payments alone.

Some Trump supporters have claimed that he is intentionally trying to induce economic pain to force the Federal Reserve to lower interest rates, which would make it cheaper to refinance the national debt.

“Trump is setting up a stock market crash. The US government needs to refinance $7 trillion in debt over the next 6 months,” crypto influencer and investor Thomas Kralow, who has more than 500,000 YouTube followers, said on X last week.

“Trump doesn’t want this done at current 10-year yields. This is why he’s letting the stock market drop while pushing bond prices higher,” Kralow said, adding this would create “short term pain, long term gain”

More

Why are Trump supporters claiming he wants to crash the US stock market? | Donald Trump News | Al Jazeera

It is a popular delusion that the government wastes vast amounts of money through inefficiency and sloth. Enormous effort and elaborate planning are required to waste this much money.

P. J. O'Rourke

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.

Wall Street’s recession odds are starting to look like a coin flip as Trump refuses to back down on his trade war

March 17, 2025

  • Wall Street is raising the probability that the US economy will slip into a recession, with some economists seeing 50-50 odds. That's as President Donald Trump shows no signs of backing down on his aggressive tariff plans, including reciprocal duties set to take effect in a few weeks.

The likelihood that the US economy will slip into a recession is rising on Wall Street, with some economists even seeing 50-50 odds.

JPMorgan chief economist Bruce Kasman told reporters in Singapore on Wednesday that he now sees a roughly 40% recession risk, up from about 30% at the start of the year.

But he added that recession odds would rise to 50% or above if President Donald Trump's planned reciprocal tariffs, which are due to take effect April 2, meaningfully come in to force.

"If we would continue down this road of what would be more disruptive, business-unfriendly policies, I think the risks on that recession front would go up," Kasman said.

Meanwhile, former Treasury Secretary Larry Summers warned that the chances of a recession are about 50%, citing Trump's tariffs, immigration crackdown, and mass federal layoffs, which are combining to cause sharp reductions in consumer and business spending plans.

When economic forecasts start being revised in a certain direction, there tends to be momentum, he told Bloomberg TV on Tuesday. And all the revisions are going toward less growth.

"I think we've got a real uncertainty problem," Summers added. "I think it's going to be hard to fix that. And we're looking at a slowdown relative to what was forecast almost for sure and serious near-50% prospect of recession."

Moody's Analytics chief economist Mark Zandi raised his recession odds to 35% from 15% at the start of the, citing tariffs.

But if Trump follows through with his tariff plans and stays there for more than a few months, that would be enough to push the economy into recession, he told Bloomberg TV on Wednesday.

For now, he has hope that negotiations will lead to tariffs getting reeled back in, which is keeping his forecast below 50%.

"But I don't say that with any confidence with each passing day," Zandi said. "And of course, the uncertainty around all of this is doing damage."

In fact, surveys of consumers and businesses show that they are turning increasingly gloomy about the economy amid tariff uncertainty and mass federal layoffs. Even executives in deep-red states that voted for Trump say seeing business conditions are collapsing.

Elsewhere on Wall Street, recession probabilities aren't as high, but they are rising sharply. Market gurus Ed Yardeni and Eric Wallerstein said earlier this month that they see odds of a bear market and a tariff-induced recession at 35%, up from 20%.

And Allianz chief economic advisor Mohamed El-Erian lifted his recession probability to 25%-30% from 10% at the beginning of the year.

Treasury Secretary Scott Bessent was asked on NBC's Meet the Press on Sunday if he could guarantee there won't be a recession, and he replied that there are no guarantees, adding that his earlier comment of an economic adjustment doesn't mean there has to be a recession.

More

Wall Street’s recession odds are starting to look like a coin flip as Trump refuses to back down on his trade war

Britain ‘headed for recession’ as Reeves plots spending cuts

Christopher Jasper Mon, March 17, 2025 at 6:30 AM GMT

Britain is on course for a recession as employers slash jobs and Rachel Reeves plots spending cuts, a major think tank has warned.

The Resolution Foundation said that the Chancellor is set to break her own fiscal rules, having put Britain on course for a £4.4bn budget deficit.

Analysis of official payroll data shows the UK jobs market “is already in recession territory” after Ms Reeves announced a record tax raid, the think tank said, with the number of people in work falling at a pace consistent with an economic contraction.

Ms Reeves, the Chancellor, is expected to resort to swingeing cuts to disability spending in an attempt to balance the books as she prepares to update the country on the state of the public finances in next week’s statement.

The warning on jobs came as Make UK revealed that half of manufacturers have frozen hiring in the wake of Reeves’s tax raids and concern about slumping orders, with a quarter considering job cuts.

Research from the Recruitment & Employment Confederation (REC) meanwhile showed that the number of job listings flatlined last month, while a survey of 1,500 top business leaders indicated that a majority think a recession is likely this year.

Britain had appeared to be heading for recession – defined as two consecutive quarters of negative growth – in the second half of last year before the economy unexpectedly grew 0.1pc in the three months through December.

The foundation said the jobs data adds to evidence of a deteriorating outlook that includes projections for GDP to be 1.2pc lower than anticipated at the time of the Chancellor’s autumn Budget, and for inflation and interest rates to be 0.4 percentage points higher.

It said that without fresh policy action, the Office of Budget Responsibility will be compelled to revise down its projections from a surplus of £9.9bn in 2029-30 to a deficit of around £4.4bn, and that Reeves would therefore “be breaking her newly-legislated fiscal rules.”

The Chancellor’s so-called stability rule says the current Budget should be on course to be in balance or surplus by 2029-30.

James Smith, the foundation’s research director, said that turmoil on the markets in the past few weeks had highlighted Britain’s sensitivity to global shocks, meaning Ms Reeves must act decisively to diminish the risk of further damaging increases in the cost of borrowing.

---- A survey of business leaders carried out by Boston Consulting Group indicates that recession fears are increasing, with pessimism surrounding economic growth, consumer confidence and the business environment even more entrenched than last year.

Some 57pc of executives now regard a recession as likely this year, up from 50pc in the previous poll. Only companies in industries likely to benefit from Labour’s expected building boom were more upbeat.

The threat of higher taxes has emerged as the biggest concern for business, surpassing fears around increased energy bills.

Nearly two thirds of chief executives are bracing for a jump in running costs as a result of the Chancellor’s £25bn increase in employer National Insurance contributions, which takes effect next month.

Make UK painted a grim picture of frozen recruitment with redundancies on the way, allied to delayed or cancelled investment plans.

It said: “Britain’s manufacturers have hit the buffers as a wave of increasing employment taxes and wider business costs bites hard, as well as worries of a global trade war.”

Make UK said that 48pc of companies have halted hiring, with more than a quarter looking at offloading staff. Four in 10 are also set to reduce planned pay increases. It urged ministers to consider reforms to the business rates system to remove disincentives to invest.

Britain ‘headed for recession’ as Reeves plots spending cuts

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

New Method Can Recycle All Parts of a Modern Solar Cell with Water: ‘We Can Recycle Everything’

By Good News Network  Mar 16, 2025

Solar is one of the best solutions to the growing demand for renewable green energy. However, while conventional solar panels contribute to clean energy production, their disposal presents several environmental challenges.

Now, a groundbreaking innovation may change that: researchers have developed a method to fully recycle modern solar panels using water as the main solvent, which would make it a truly sustainable energy.

The method from scientists at Linköping University in Sweden can recycle all parts of a modern solar cell repeatedly without environmentally hazardous solvents—and the recycled solar cell has the same efficiency as the original one.

The method works with one of the most promising technologies for next-generation solar cells: perovskite.

Perovskite solar cells are not only relatively inexpensive and easy to manufacture but also lightweight, flexible, and transparent. Thanks to these properties, they can be placed on many different surfaces, like windows. Also, they can convert up to 25 percent of the solar energy into electricity—comparable to today’s silicon solar cells.

However, silicon panels are at the end of their life cycle, which has created a landfill problem.

“There is currently no efficient technology to deal with the waste of silicon panels. That’s why old solar panels end up in the landfill,” says Xun Xiao, in the Department of Physics, Chemistry and Biology at Linköping University.

“We need to take recycling into consideration when developing emerging solar cell technologies,” said Feng Gao, a professor of optoelectronics at the same Swedish college.

“There are many companies that want to get perovskite solar cells on the market right now, but we’d like to avoid another landfill,” adds Niansheng Xu, postdoc at LiU. “In this project, we’ve developed a method where all parts can be reused in a new perovskite solar cell without compromising performance in the new one.”

Given that perovskite solar cells currently have a shorter life span than silicon solar cells, it is important that perovskite solar cell recycling is efficient and environmentally friendly. They also contain a small amount of lead, necessary for high efficiency, so this also must be addressed in a functioning recycling process.

Water as the solvent

There are already methods for dismantling perovskite solar cells. This mostly involves using a substance called dimethylformamide, a common ingredient in paint solvents. It is toxic, environmentally hazardous, and potentially carcinogenic. What the LiU team has done instead is develop a technology where water can be used as a solvent in dismantling the degraded perovskites.

And more importantly, high-quality perovskites can be recycled from the water solution used.

“We can recycle everything—covering glasses, electrodes, perovskite layers, and also the charge transport layer,” said Xun Xiao.

The next step for the researchers is to develop the method for larger scale use in an industrial process.

Researchers have published their study in the journal Nature, and have applied for patents on their technology.

New Method Can Recycle All Parts of a Modern Solar Cell with Water: ‘We Can Recycle Everything’

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

World Debt Clocks (usdebtclock.org)

There is far more danger in public than in private monopoly, for when Government goes into business it can always shift its losses to the taxpayers. Government never makes ends meet and that is the first requisite of business.

Thomas A. Edison

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