Tuesday, 25 March 2025

Trump Tariffs Uncertainty Rattle Markets.

Baltic Dry Index. 1652 +09         Brent Crude 73.02

Spot Gold 3019               US 2 Year Yield 4.04  +0.10  

US Federal Debt. 36.639 trillion!!

The difference between stupidity and genius is that genius has its limits.

Albert Einstein

We are nine days away from Trump Tariff Day, but then again maybe not. No one knows apparently, least of all Trump himself seemingly.

Asian markets and Europe’s stock markets are getting more and more edgy as that April 2 T-Day nears.

Hong Kong’s Hang Seng index drops nearly 2% as investors assess Trump tariff threats

Updated Tue, Mar 25 2025 1:38 AM EDT

Asia-Pacific markets traded mixed Tuesday as investors assessed U.S. President Donald Trump’s tariff threats.

Hong Kong’s Hang Seng Index fell 1.79%, while the Hang Seng Tech index plunged 2.91% (view post).

Meanwhile, mainland China’s CSI 300 pared losses to trade flat.

South Korea’s Kospi index lost 0.60% in choppy trade while the small-cap Kosdaq declined 1.31%.

Over in Australia, the S&P/ASX 200 ended the day flat at 7,942.50. The country’s budget will be tabled by Treasurer Jim Chalmers later in the day.

Japan’s benchmark Nikkei 225 gained 0.54% in its final hour, while the broader Topix index increased 0.30%.

India’s benchmark Nifty 50 was up 0.23% (view post) while the broader BSE Sensex advanced 0.34%.

U.S. futures edged down marginally after the three key Wall Street indexes logged gains overnight.

The Dow Jones Industrial Average jumped 597.97 points, or 1.42%, to end at 42,583.32. The S&P 500 added 1.76% and closed at 5,767.57, while the tech-heavy Nasdaq Composite gained 2.27% to settle at 18,188.59.

Shares of Tesla, which have fallen for nine straight weeks, rose nearly 12%, adding to their Friday gains. Meta Platforms and Nvidia climbed more than 3%.

Asia markets live: Stocks mixed

European markets set for negative open amid uncertainty over Trump tariffs

Updated Tue, Mar 25 2025 1:35 AM EDT

European markets are expected to open in negative territory Tuesday amid uncertainty over the scope and breadth of U.S. President Donald Trump’s trade tariffs.

The U.K.’s FTSE 100 index is expected to open 23 points lower at 8,617, Germany’s DAX down 50 points at 22,804, France’s CAC 11 points lower at 8,009 and Italy’s FTSE MIB 78 points lower at 38,207, according to data from IG. 

Earnings come from Kingfisher and Smiths Group. On the data front, Germany’s Ifo Institute releases its latest business climate survey.

Asia-Pacific markets traded mixed overnight as investors assessed Trump’s tariff threats while U.S. futures edged down marginally after the three key Wall Street indexes logged gains on Monday.

Wall Street remains on edge over a potential uptick in inflation and slowing economic growth as it awaits reciprocal tariffs from the Trump administration on April 2.

However, during Monday’s session, traders grew optimistic on news that the White House may narrow the scope of tariffs going into effect, according to reports from The Wall Street Journal and Bloomberg News.

Later Monday, Trump told the press that he “may give a lot of countries breaks” on reciprocal tariffs. He added that duties on certain sectors, such as pharmaceuticals and autos, would still be coming in the “near future.”

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

Trump pledges auto, pharma tariffs in ‘near future,’ sowing more trade confusion

Published Mon, Mar 24 2025 2:50 PM EDT Updated Mon, Mar 24 2025 4:57 PM EDT

President Donald Trump on Monday said he will soon announce tariffs targeting automobiles, pharmaceuticals and other industries, signaling his plans to pile more sweeping duties on top of his forthcoming “reciprocal tariffs.”

“We’ll be announcing cars very shortly,” Trump said at a Cabinet meeting. “We already announced steel, as you know, and aluminum.”

“We’ll be announcing pharmaceuticals at some point,” he said, “because we have to have pharmaceuticals.”

“So we’ll be announcing some of these things in the very near future, not the long future, the very near future,” Trump said.

Trump at another White House event later Monday added the lumber and semiconductor industries to his list, saying tariffs on those two sectors would come “down the road.”

Yet even as he piled on new sectors for potential tariffs, Trump said at the same event that he “may give a lot of countries breaks” on the reciprocal tariffs, which are set to take effect April 2.

When pressed for clarification on whether sectoral tariffs will also start that day, Trump initially said, “Yeah, it’s going to be everything.”

Then he said, “but not all tariffs are included that day.”

He also hinted that tariffs on autos may be announced before the reciprocal tariffs kick off.

“We’ll be announcing that fairly soon over the next few days, probably, and then April 2 comes, that’ll be reciprocal tariffs,” he said.

The Wall Street Journal reported Sunday that the White House was likely to exclude industry-specific tariffs from the April 2 batch, despite Trump’s suggestion a week earlier that both types of tariffs would start the same day.

The president’s latest comments came hours after he vowed to slap 25% tariffs on all countries that buy oil and gas from Venezuela.

“We’ve been ripped off by every country in the world,” Trump said in the Cabinet meeting.

“We did something with Venezuela, which is long in the making,” he said. “And we’ll be announcing cars very shortly.”

A White House official told CNBC earlier Monday that the tariffs targeting specific sectors “may happen or may not.”

“No final decision’s been made as far as sectoral being tacked onto reciprocal,” said the official, who spoke on condition of anonymity.

Major stock indexes shot up Monday following the reports that Trump may be softening his tariff plans.

The official did not immediately respond to CNBC’s request for additional comment following Trump’s remarks in the Cabinet meeting.

Trump says tariffs on autos, pharmaceuticals coming in 'near future'

In other news.

The U.S. is not prepared to win an economic war against China-built containerships, farmers, ocean carriers warn

Published Mon, Mar 24 2025 1:37 PM EDT Updated Mon, Mar 24 2025 2:54 PM EDT

Business interests, from U.S. farmers to global ocean carriers, are warning of severe economic damage from proposals being considered by the U.S. government to hit containerships made in China with steep fines when they call on U.S. ports. The goal of bringing more shipbuilding back to the U.S. is at odds with reality in the global ocean trade market, they say, where virtually all container traffic will soon be carried on ships built in China.

An estimated 98% of the global fleet would be subjected to fees when calling on U.S. ports because the fee applies to both existing Chinese-built vessels or future vessels in the order book of carriers, and any carrier with at least one order on the books for a vessel made in China, according to the World Shipping Council, which represents the international ocean liner shipping industry. Currently, 90% of the world’s vessels are subjected to the fee. According to Sea-Intelligence, the total number of port calls made by deep-sea container liner vessels in the United States in 2024 was 12,410.

On Monday and Wednesday, hearings are being held by the U.S. Trade Representative to consider the implementation of penalties. The investigation, begun under President Joe Biden, culminated in a report released in January that concluded China’s shipbuilding and maritime industry had an unfair advantage. Now, it is being continued by the Trump administration as part of the president’s widening global economic and trade war, with Trump saying in his recent speech to Congress that he will create a new office of shipbuilding in the White House that would offer special tax incentives to bring more shipbuilding back to the U.S.

“The nation’s agriculture exporters are united in concern and opposition to the proposal,” Peter Friedmann, executive director of the Agriculture Transportation Coalition, said in prepared testimony ahead of the hearing. “We are not opposed to the objective, but we are not willing to sacrifice America’s agriculture and the communities throughout the country that would be economically distressed or worse, by a plan such as the present, that would eliminate our ability to sell agriculture outside our own borders.”

The AgTC says there are no U.S.-built vessels suitable for international commercial shipping that exist today that can move agricultural cargo, moved by container ships, bulk ships, and breakbulk ships, and across products that include corn, wheat, grains, and soybeans. “If they were available at a reasonable cost, U.S. exporters, including agriculture, would already be using this option,” Friedmann said in his testimony.

The razor-thin margins that farmers face in the world economy, and the increased and intense competition for bulk commodities, have to be factored into vessel choices for transport of commodities, he said. Put another way by Friedmann in his testimony on Monday, “The hogs in China couldn’t give a damn where the soybeans come from. You’ve essentially told those exporters you’re out of business.”

To penalize ocean carriers using Chinese-made vessels to move trade, the U.S. government has proposed steep levies on Chinese-made ships arriving at U.S. ports. For Chinese-owned operators (such as COSCO), a service fee of up to $1 million could be charged on each vessel. For non-Chinese-owned ocean carriers with fleets containing Chinese-built vessels, the service fee would be up to $1.5 million for each U.S. port of call.

More

US not prepared to win economic war against China-built containerships

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.

America’s rich scramble to open Swiss bank accounts over Trump fears

24 March 2025

America’s elite are racing to open Swiss bank accounts and move hundreds of millions of dollars out of the country as they fear being targeted by Donald Trump.

Fears of potential restrictions on moving money overseas mean ultra-wealthy Democrat families are moving huge chunks of cash out of the country as an insurance policy against the Republican administration.

Robert Paul, co-head of private clients at wealth management firm London and Capital, said: “These are big chunks of money. We’ve had five cases in the last three or four weeks, and the sums have been $40m, $30m, $30m, $100m and $50m.

“I am expecting to have at least this again if not more.”

These clients are taking money out of US brokerage accounts and opening accounts in Switzerland, Jersey and Guernsey to put it on cash deposit or in trust structures abroad, Mr Paul said.

He added: “It is literally a borders thing, having some money that is not domestically located inside the US.

“There has been fear around capital controls and movement of money. Why it’s heightened in the past four weeks is because the rhetoric is chopping and changing pretty quickly.

“A lot of this is discussions around dinner parties of the ultra-wealthy. People saying I’m worried about this and maybe you should be worried about this.”

While Mr Trump has not directly discussed imposing capital controls, investors are fearful over the president’s erratic policy making.

David Lubin of Chatham House said the Trump administration could feasibly consider imposing capital controls on money entering the country as part of its agenda to weaken the dollar and attack the US trade deficit.

Judi Galst, managing director of private clients at Henley & Partners in New York, said at least a quarter of her clients are inquiring about moving money out of the US because of the new administration.

Some are looking at investment migration strategies, such as New Zealand’s investor visa scheme, but others “really just want to open bank accounts in Switzerland,” Ms Galst said.

“I hear a lot about Switzerland and Liechtenstein. I talked to somebody at one Swiss bank who told me that they’d opened 12 accounts like this for Americans in the past two weeks,” she added.

It is the latest sign that the US economy may prove to be Mr Trump’s undoing.

After he campaigned with an agenda for tax cuts and deregulation, markets had assumed Mr Trump’s second term would be pro-business. His policy agenda since taking office has taken investors by surprise after he launched a string of protectionist measures, including a 25pc tariff on all steel and aluminium imports from around the world.

The Federal Reserve last week followed Goldman Sachs and Fitch Ratings in slashing its forecasts for economic growth in the US this year from 2.1pc before Mr Trump took office to 1.7pc.

Ms Galst said: “They’re concerned that it is not in their best interests to hold all of their assets in the United States. They want to diversify any risk and that involves them potentially moving some part of their portfolios to other countries.”

Ollie Marshall, director of buying agency Prime Purchase, said: “I think it’s mainly Democratic Party sponsors worried about some form of financial retribution.

“Of course, there’s no proof the administration is actively targeting them yet, but the government’s policies are so extreme they could be right to be worried about it.”

James Knightley, chief international economist at ING bank, said wealthy investors have big incentives to diversify away from US assets considering the likely negative impact of Mr Trump’s trade policies and federal cuts on growth, corporate profits and asset prices.

However, economists said it is highly unlikely that Mr Trump would go as far as introducing capital controls on money leaving the country because it would not be in line with his economic agenda.

America’s rich scramble to open Swiss bank accounts over Trump fears

Covid-19 Corner

This section will continue only occasionally when something of interest occurs.

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.

50 Years Later, Scientists Just Found a Quantum “Butterfly” Hiding in Graphene

23 March 2025

In a discovery that brings a legendary quantum theory to life, physicists at Princeton University have directly observed Hofstadter’s butterfly — a fractal pattern in electron energy levels that was first predicted in 1976 but had never before been seen in a real material.

The breakthrough, which occurred during an experiment on graphene superconductivity, offers a rare look at a self-repeating quantum energy spectrum and opens the door to new insights in fundamental physics.

A 50-Year Theory Meets Reality

According to the research team of the study published in Nature, was not searching for Hofstadter’s butterfly when they stumbled upon it. Their goal was to investigate how electrons behave in twisted bilayer graphene, a form of carbon that becomes superconductive under certain conditions.

An unexpected twist in their experimental setup changed everything. A slight misalignment during the sample preparation created the ideal geometry to reveal the elusive fractal pattern. Under a magnetic field, the material displayed an intricate, repeating energy structure —just like the one physicist Douglas Hofstadter described nearly fifty years ago.

Uncovering A Quantum Pattern In Graphene

To observe this rare behavior, the scientists used a scanning tunneling microscope (STM) — a tool that detects electron energies at the atomic level. It allowed them to image the moiré superlattice, a pattern formed by overlapping graphene layers at specific angles.

What emerged from this setup were clusters of electron energy levels arranged into repeating bands. These patterns mirrored the Hofstadter model and, when plotted, took on the butterfly-like shape that has captivated theorists for decades.

Nature’s Fractal Signature, In Quantum Form

Fractals are common in the natural world, from branching trees to jagged coastlines. But in the quantum world, self-repeating patterns like these are rare.

The Hofstadter spectrum stands out as a unique example of a fractal predicted by quantum mechanics. Seeing it directly confirms not only the math, but also the power of engineered materials to bring abstract theories into the lab.

Deeper Interactions Revealed

Beyond confirming the original prediction, the experiment exposed new layers of complexity. The electron energy levels aligned better with models that included electron-electron interactions, something Hofstadter’s early equations didn’t account for.

This adjustment helped the team understand the many-body behavior of electrons in moiré structures. Their results hint at deeper phenomena, including the emergence of topological quantum states — a subject of growing interest in condensed matter physics.

A Butterfly Born Of Chance

The project brought together experimental and theoretical physicists at Princeton, including Ali Yazdani, Biao Lian, and several graduate researchers.

According to co-lead author Kevin Nuckolls, the discovery was born from a combination of precision and luck. “Hofstadter’s butterfly is also a rare example of a problem that is solved exactly in quantum mechanics, without any approximations,” he explained.

“Since Hofstadter’s original work, there have been many experiments and wonderful papers on the subject but, before our work, no one had ever actually visualized this beautiful energy spectrum.”

50 Years Later, Scientists Just Found a Quantum “Butterfly” Hiding in Graphene

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

World Debt Clocks (usdebtclock.org)

The people will believe what the media tells them they believe.

George Orwell

No comments:

Post a Comment