Wednesday, 23 April 2025

IMF Downgrades. Trump Folds On China, Powell. Stocks Soar.

Baltic Dry Index. 1261 unch.      Brent Crude 67.98

Spot Gold 3344               US 2 Year Yield 3.76 +0.01

US Federal Debt. 36.759 trillion!!!

“whose merit is loudly celebrated by the doubtful evidence of his own applause.”

Edward Gibbon, The Decline and Fall of the Roman Empire.

A happy St George's Day.

After the IMF downgraded economic growth for everyone due to Trump’s tariffs, President Trump folded on China and sacking Fed Chairman Powell. Stocks surged on a great relief rally.

But as it’s only Wednesday, it’s anyone’s guess as to what President Trump’s policy will be on Friday.

Who, except President Xi and Fed Chairman Powell, knew winning would be so easy?

Hong Kong stocks lead gains in Asia on hopes of de-escalation in U.S.-China tensions

Updated Tue, Apr 22 2025 11:48 PM EDT

Asia-Pacific markets climbed Wednesday, after all three key benchmarks on Wall Street advanced overnight on optimism that U.S.-China trade tensions could ease.

This comes after U.S. President Donald Trump indicated that final tariffs on Chinese exports to the U.S. “won’t be anywhere near as high as 145%.” However, he added that the duties “won’t be 0%.”

Trump also said he has “no intention” to fire Federal Reserve chair Jerome Powell before his term ends, alleviating investors’ concerns over the central bank’s independence.

Hong Kong stocks led gains in the region, with the Hang Seng Index gaining 2.48% in early trade while the Hang Seng Tech Index surged 3.21%. Meanwhile, Mainland China’s CSI 300 index moved up 0.22%.

Over in Japan, the benchmark Nikkei 225 advanced 2.09%, while the broader Topix index added 2.05%.

India’s benchmark Nifty 50 moved up 0.64% in early trade while the broader BSE Sensex added 0.56%.

In South Korea, the Kospi index increased 1.51% while the small-cap Kosdaq was up 0.93%.

Australia’s S&P/ASX 200 rose 1.22%.

U.S. futures jumped after Trump’s comments on not planning to remove Powell from his post as central bank chair.

Overnight stateside, stocks rebounded from steep declines in the previous session, as investors cheered the possibility of easing U.S.-China trade tensions.

The Dow Jones Industrial Average rose 1,016.57 points, or 2.66%, to close at 39,186.98. The S&P 500 gained 2.51% and settled at 5,287.76, while the Nasdaq Composite rose 2.71% to end at 16,300.42.

Asia markets live: Stocks rise

Dow jumps 1,000 points Tuesday to snap four-day string of losses: Live updates

Updated Tue, Apr 22 2025 4:12 PM EDT

Stocks rallied Tuesday on hopes that U.S.-China trade tensions could ease soon, as investors recovered from the steep declines suffered in the previous session.

The Dow Jones Industrial Average rose 1,016.57 points, or 2.66%, to close at 39,186.98. The S&P 500 gained 2.51% and settled at 5,287.76, while the Nasdaq Composite rose 2.71% to end at 16,300.42.

The major averages spiked on news that Treasury Secretary Scott Bessent told a group of investors Tuesday that there “will be a de-escalation” in the trade war with China. “No one thinks the current status quo is sustainable,” he said during a meeting with investors hosted by JPMorgan Chase, according to a person in the room. The meeting was first reported by Bloomberg News.

At its peak, the Dow was up more than 1,100 points on the day. However, stocks eased from those levels as Bessent also noted that, “If we walk out the door of negotiations and signed something in two or three years that looked like that, I would think that it’s a huge win.”

Stocks closely tied to China got a boost on the news. The iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI) were both up about 3%.

“Bessent is obviously trying to send a signal with that comment, and that signal would seem to be that we know this is hurting markets and we’re in a hurry to wrap it up,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “The market will interpret that as good news that will cause it to rally and adjust its expectations for where the final resting place for this trade war is in a couple months.”

Tuesday’s gains erased the sharp losses suffered in the previous session. The Dow dropped more than 970 points, while the S&P 500 and Nasdaq both slid more than 2%.

Rising trade fears have sent equities tumbling in recent weeks. Since April 2, when President Donald Trump unveiled a slate of tariffs on imported goods from many countries, the S&P 500 is down more than 6%.

Investors grew increasingly uncertain after Trump posted on Truth Social that the economy would slow if the Federal Reserve did not cut interest rates. In the latest of multiple recent posts calling out Chair Jerome Powell by name, he called the Fed chief “Mr. Too Late” and a “major loser.”

Trump hinted at Powell’s “termination” last week, an unprecedented action that White House economic advisor Kevin Hassett said the president’s team was currently studying. Powell has said he cannot be fired under law and intends to serve through the end of his term in May 2026.

“Lots of uncertainty, not lots of answers, kind of a frustrating environment today for investors,” Ellerbroek added. “The one feeling that I feel like I can identify is the longer we remain in this limbo, the worse it gets for the economy.”

Stock market news for April 22, 2025

Trump says he has ‘no intention’ of firing Fed Chair Powell

Published Tue, Apr 22 2025 5:32 PM EDT

President Donald Trump on Tuesday said he has “no intention” of firing Federal Reserve Chair Jerome Powell before his term leading the U.S. central bank ends next year.

“None whatsoever,” Trump said in the Oval Office when asked to clarify that he did not seek Powell’s removal. “Never did.”

The comment represents a dramatic shift for Trump, who has recently ramped up his rhetoric against Powell and declined to rule out the possibility of taking the unprecedented step of firing him.

U.S. stock futures rose sharply across major indexes following Trump’s latest remarks.

Trump, who has heaped pressure on the Fed chair to cut interest rates in hopes of goosing economic growth, said last week of Powell, “If I want him out of there, he’ll be out real fast.”

White House economic advisor Kevin Hassett said Friday that Trump and his aides were actively studying the possibility of firing Powell.

Powell, whom Trump appointed during his first term as president, is set to serve as Fed chair until May 2026. He has flatly stated that the president cannot remove him under the law.

Trump on Monday fired off his most incendiary criticism of Powell yet, calling him a “major loser” and urging him to lower rates immediately.

But when asked on Tuesday afternoon about the prospect of firing Powell, Trump said, “the press runs away with things.”

“No, I have no intention of firing him,” Trump told reporters after a ceremony swearing in Paul Atkins as chairman of the U.S. Securities and Exchange Commission.

“I would like to see him be a little more active in terms of his idea to lower interest rates,” the president added. “This is a perfect time to lower interest rates.”

Trump’s remarks came after major U.S. stock indexes closed significantly higher, rebounding from a steep sell-off on Monday that was linked at least in part to fears stoked by Trump’s attacks on Powell.

Some critics and analysts warn that the president removing the chair of the Federal Reserve, which has traditionally operated with independence from the government, would cause panic in the markets.

Trump: Fed Chair Powell won't be fired but should cut interest rates

Gold falls as Trump backs down from threat to fire Fed chief

Published Tue, Apr 22 2025 11:55 PM EDT

Gold prices fell on Wednesday as U.S. President Donald Trump retracted his threats to dismiss Federal Reserve Chair Jerome Powell and expressed optimism for a trade deal with China, denting bullion’s safe-haven appeal.

Spot gold fell 0.7% to $3,357.11 an ounce by 0256 GMT. U.S. gold futures fell 1.5% to $3,366.80.

The hint of U.S.-China negotiations and Trump backing down his threat to remove Powell “caused the sell off in gold price to hit a kind of a very extreme oversold level in the short term perspective here,” said Kelvin Wong, senior market analyst, Asia Pacific at OANDA.

U.S. stocks and the dollar rebounded after Trump on Tuesday withdrew his threats to fire Powell after days of intensifying criticism of the central bank chief for not cutting interest rates. 

A stronger dollar makes gold more expensive for overseas buyers.

Trump also expressed optimism that a trade deal with China could “substantially” reduce tariffs on Chinese goods, hinting that the final deal will not “be anywhere near” current tariff rates.

U.S. Treasury Secretary Scott Bessent said he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be a “slog”.

“There is no form of a bullish exhaustion yet from the upper bond level so there could still be potential movement on the upside for the gold,” ONADA’s Wong said.

Fed Bank of Minnesota President Neel Kashkari said it is too soon to know how short-term borrowing costs may need to be adjusted for Trump’s tariffs and their expected impact on inflation and the economy.

Gold, considered a hedge against global uncertainty and inflation, hit its 28th record high this year on Tuesday, surging to $3,500 for the first time.

JP Morgan said it expects to see gold prices crossing the $4,000-per-ounce milestone next year.

Spot silver rose 0.5% to $32.67 an ounce, platinum eased 0.2% to $956.53 and palladium lost 0.2% to $933.72.

Gold falls as Trump backs down from threat to fire Fed chief

Trump tariffs chaos will blow huge hole in US economy and hit UK hard, says IMF in damning report

22 April 2025

Donald Trump’s tariffs chaos will slash UK economic growth and send inflation jumping, says the International Monetary Fund.

In a double blow to Rachel Reeves, the IMF cut its growth forecast for Britain by 0.5 percentage points to 1.1% for 2025, compared to its January prediction, and hiked expected inflation by 0.7 percentage points to 3.1%.

The US president’s tariff wars will fuel the cost of living for millions of Britons, as well as citizens in countries around the world, according to the new report.

The IMF laid bare the economic carnage that Trump’s tariffs will cause, including in America where the growth forecast was axed by a startling 0.9 percentage points to 1.8% for this year, and where the dollar has shed value.

“The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era,” said the Washington-based leading economists in the first indepth analysis of the Trump tariffs turmoil.

“Existing rules are challenged while new ones are yet to emerge.”

They added: “Since late January, a flurry of tariff announcements by the United States, which started with Canada, China, Mexico and critical sectors, culminated with near universal levies on April 2.

“The US effective tariff rate surged past levels reached during the Great Depression while counter-responses from major trading partners signicantly pushed up the global rate.”

IMF Economic Counsellor Pierre-Olivier Gourinchas added: “We expect that the sharp increase on April 2 in both tariffs and uncertainty will lead to a significant slowdown in global growth in the near term.”

Amid the economic mayhem, which includes Trump’s U-turn to pause higher tariffs for 90 days, the IMF cut its global growth forecast to 2.8% and 3% for this year and next, a cumulative downgrade of about 0.8 percentage point relative to its January predictions.

Without tariffs, it believes global growth would have seen “only a modest cumulative downgrade” of 0.2 percentage points.

The IMF added: “For the United Kingdom, the growth projection for 2025 is 1.1 percent, lower by 0.5 percentage point compared to the forecast in January.

“This reflects a smaller carryover from 2024, the impact of recent tariff announcements, an increase in gilt yields, and weaker private consumption amid higher inflation as a result of regulated prices and energy costs.”

More

Trump tariffs chaos will blow huge hole in US economy and hit UK hard, says IMF in damning report

In other news, tariffs increase costs. Who knew?

Costs, chaos rising as metal tariffs pile up with no end in sight

The Canadian Press April 21, 2025

ORONTO — The costs and chaos being caused by metal tariffs are starting to build up after a month in effect, and there’s little hope they’ll be removed in the foreseeable future.

U.S. President Donald Trump imposed 25 per cent tariffs on Canadian steel and aluminum on March 12, while also raising metal tariffs for other countries.

While it’s still not clear how much higher the tariffs will push consumer prices, Alcoa Corp. reported that its last quarter saw a US$20 million hit from tariffs, and that they could lead to a further US$90 million in additional costs in its second quarter.

The Pittsburg-based company, which is also one of Canada’s largest aluminum producers, says higher prices are expected to offset some, but not all of those costs.

Catherine Cobden, head of the Canadian Steel Producers Association, says steel producers in Canada haven’t been able to pass on the higher costs to its U.S. customers, causing companies to start to cut back on production and lay off workers.

She says the tariffs are causing widespread disruption and uncertainty that not only affects current operations but orders and investments.

“There is a significant amount of chaotic activity as people are pivoting around supply chains,” said Cobden.

“The market signals are not great.”

Cobden and the association are pushing the Canadian government to put in border protections to help buffer Canadian producers from cheap imports, so they can better weather the tariffs that don’t look to be short-term. 

While Trump has wavered on numerous categories of tariffs, such as auto duties that analysts say are unsustainable and the global reciprocal tariffs that he paused for 90 days shortly after announcing them on April 2, the metal ones could be a longer-term reality.

Stifel analyst Ian Gillies said in a note that if the tariffs “last a number of years” that a company like Algoma Steel Group Inc. could face liquidity risk. When the tariffs came in, he cut his price target for Algoma from $21 to $15.25. 

However if tariffs were to be temporary, it could mean a significant rebound ahead, he said. 

“We will be quick to reverse course on our target multiple if and when geopolitical risks subside.”

Andrew Pappas, head of asset-based lending for metals at BMO, said in an April 3 note that he doesn’t see a quick end to the metal tariffs.

“Our view is that the newly imposed metal tariffs on Canada and Mexico will remain in place and will expedite the reworking of the USMCA treaty.” 

The tariffs, and reciprocal ones by Canada and others, could lead to price increases, and raises the question of the potential for demand destruction with the direction still unclear.

While Trump’s aim with the tariffs is to boost domestic production, Alcoa chief executive William Oplinger raised doubts about that potential on the company’s earnings call last week.

“It takes many years to build a new smelter, and at least five to six smelters would be required to address the U.S. demand for primary aluminum.”

Those smelters would also require the energy equivalent of almost seven new nuclear reactors, he said.

“Until additional smelting capacity is built in the U.S., the most efficient aluminum supply chain is Canadian aluminum going into the U.S.”

Costs, chaos rising as metal tariffs pile up with no end in sight

South Korea’s trade slowdown suggests US tariffs starting to hit global economy

04/21/2025 09:11:36 GMT

South Korean exports fell significantly in April, based on an early look at activity in the first 20 days of the month. The data suggests US tariffs are beginning to hit global trade hard.

South Korea's April trade data is a vital early look at global trade trends

The sudden 5.2% drop in South Korean exports in the first 20 years [?days?] of April suggests US tariffs are really hitting Asia’s fourth-biggest economy. Though figures for the full month will come later, this series is a key bellwether for where activity is heading. Shipments of cars and steel, subject to 25% US tariffs in recent months, were most impacted, falling 6.5% and 8.7% year on year, respectively. By contrast, semiconductors, which are exempt from the tariffs for now, rose a solid 10.7%.

By destination, exports to the EU and Taiwan rose YoY 13.8% and 22.0%, respectively, probably due to strong vessel activity and semiconductors. We believe that vessels and semiconductors are likely the two main drivers of exports this year; other sectors are expected to decline quite sharply. Exports to China, the US, and Vietnam declined by 3.4%, 14.3% and 0.2%, respectively. We assess that the US-China tariff war is negatively affecting Asia's export trends in general.

Imports for the first 20 days in April dropped 11.8% YoY. Energy imports declined the most (-27.9%) and semiconductors fell 2.0%. Falling global commodity prices could be the main reason. We suspect Chinese semiconductor imports might have declined quite sharply, as they are largest Chinese imports item to Korea.

More

South Korea’s trade slowdown suggests US tariffs starting to hit global economy

Global shipping navigates Trump tariffs uncertainty

22 April 2025

Shifting trade announcements have led to unprecedented volatility in the global shipping industry in recent weeks, with industry players having to constantly adapt to new US tariffs.

Cargo ships put to sea half empty, fluctuating freight rates and possible shipping route changes are some of the recent adjustments industry specialists have noted.

The global economy has been riding a rollercoaster since US President Donald Trump returned to the White House in January and kicked off a tariff offensive.

Trump's recent walk-back, announcing a 90-day pause on some previously announced levies -- with the exception of those targeting China -- has once again upset the balance.

"In the three weeks leading up to the announcement, we saw a slowdown in trade and many ships were only 50% full on the transatlantic and transpacific trades to the United States," said Alexandre Charpentier, transport specialist at consulting firm Roland Berger.

During that time, sea freight rates fell and many companies held on to their stocks as a precaution.

"As of last week, we've had the opposite effect," Charpentier said. "People want to ship as much as possible to the United States, they're destocking and there has been a rush for space."

And prices have started to rise again.

Adding to the headwinds facing shipping are new US port fees for Chinese-built and -operated ships, unveiled by Washington on Thursday and due to kick in from mid-October.

Those come on top of the tariffs of up to 145% the Trump administration has introduced on a large number of Chinese imports, resulting in a top tax line as high as 245% on some products.

China builds nearly half of all ships launched, ahead of South Korea and Japan.

Falling freight rates

In the long run, shipping companies expect a decline in freight rates -- as happened in 2018-2019 during Trump's first presidential term.

Back then liners "experienced an oversupply of shipping capacity, decreased shipping rates, increased operational costs and ultimately, a reduction in revenue," said Sandy Gosling, specialist in transport and logistics at consulting firm McKinsey.

Tariffs then were lower than those announced by Trump this year.

"It's difficult to see into the future but what seems most likely to us is a slowing of certain routes in favour of other countries in Southeast Asia or India," said Charpentier.

Anne-Sophie Fribourg, vice president of ocean procurement at British freight forwarder Zencargo, said she expected the China-US route would become unprofitable.

If this were to happen, she said, "shipowners will readjust their rotations. In other words, they will turn away from traditional routes to new ones, such as Latin America, where demand has been growing for some time now."

For the time being, major international companies such as MSC, CMA CGM and Maersk have not made such adjustments.

More

Global shipping navigates Trump tariffs uncertainty

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.

Businesses on the brink: Company closures surge amid fears over UK economy

Tuesday 22 April 2025 9:17 am  |  Updated:  Tuesday 22 April 2025 9:38 am

Businesses across Britain are being shut down at a rate not seen since the financial crash, City AM has found, in a major warning sign for the health of the UK economy.

More than 1,100 companies have faced winding-up orders in the first fifteen weeks of 2025, according to an analysis of published insolvency notices compiled by City AM, an increase of nearly a quarter compared to last year and the fastest rate of corporate closure since 2010. Nearly 2,200 businesses have also faced winding-up petitions, a legal manoeuvre by creditors to claw back unpaid debts, an increase of more than a fifth since 2024 and the highest rate since 2012.

The figures highlight the precarious position many small and medium-sized companies find themselves in as they struggle to pay off debts under the burdens of tax hikes, higher wage bills and sluggish growth.

Responding to official corporate insolvency figures, Tom Russell, Vice President of insolvency and restructuring trade body R3, said “a number of economic and political issues” were continuing to pile pressure on businesses, affecting firms across the supply chain. 

“High costs and cautious consumer and client spending mean creditors are being more aggressive about pursuing the money they are owed and aren’t afraid to turn to the courts to recover outstanding debts, while a large proportion of directors of insolvent businesses feel closure is the only option open to them after years of trading through tough conditions and with little hope of these improving.”

Retail and hospitality on the front line

Over one in ten of the more than 300 companies facing winding-up petitions so far in April alone were retail and hospitality businesses, the analysis found, in signs high street businesses were being crippled by rises to employer taxes unveiled in Chancellor Rachel Reeves’ Autumn Budget. 

Last month the Office for Budget Responsibility slashed its growth forecast for the UK in 2025 from 2 per cent to 1 per cent, as it raised its expectations for rates of unemployment. Some major banks have upped predictions for the chances of a global recession this year to as high as 60 per cent, as uncertainty over US tariffs sparks a slowdown in global trade.

Shadow Business Secretary Andrew Griffith told City AM: “With a government which is engaged in a tax and culture war against wealth creators, it is no surprise that businesses are being wound up at the fastest rate for a decade.

“The government needs to take urgent steps to reverse this, starting with shelving the damaging union-inspired Employment Rights Bill which will only make things worse.”

A Treasury spokesperson told City AM: “The last few years have been incredibly difficult for business. That’s why this pro-business government is determined to improve the total business environment.

“We know the vital importance of businesses to our economy which is why we are focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets.”

Businesses on the brink: Company closures surge amid fears over UK economy - City AM

As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not

Published Mon, Apr 21 2025 10:29 PM EDT

The dollar has been sliding and the ripple effect on other currencies has brought a mix of relief and headache to central banks around the world.

Uncertainty about U.S. policymaking has led to a flight out of the U.S. dollar and Treasurys in recent weeks, with the dollar index weakening more than 9% so far this year. Market watchers see further declines. 

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next 12 months — the most pessimistic outlook of major investors in almost 20 years.

The exodus from U.S. assets may reflect a broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens.

The drop in the greenback has led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc as well as the euro.

Since the start of the year, the Japanese yen has strengthened over 10% against the greenback, while the Swiss franc and the euro has appreciated about 11%, according to LSEG data.

Aside from the safe havens, other currencies that have strengthened against the dollar this year include the Mexican peso, up 5.5% against the dollar, and the Canadian dollar which has appreciated over 4%. The Polish zloty has strengthened more than 9% while and Russian rouble has appreciated over 22% against the greenback.

Some emerging market currencies, however, have depreciated despite the weakness in the greenback.

The Vietnamese dong and Indonesian rupiah weakened to a record low per U.S. dollar earlier this month. The Turkish lira also hit an all-time low last week. China’s yuan hit a record low against the dollar nearly two weeks back but has since strengthened. 

Breathing room to cut rates?

Barring a few exceptions like the Swiss National Bank, a weakening U.S. dollar is a relief to governments and central banks around the world, analysts told CNBC.

“Most central banks would be happy to see 10%-20% declines in the U.S. dollar,” said Adam Button, chief currency analyst at ForexLive. He added that the dollar strength has been a persistent problem for years and poses a difficulty for countries with hard and soft dollar pegs.

With many emerging market countries having large dollar-denominated debt, a weaker dollar lowers real debt burden. Additionally, a softer greenback and stronger local currency tend to make imports relatively cheaper, lowering inflation and hence allowing central banks the room to cut rates to boost growth.

The recent U.S. dollar sell-off offers more “breathing room” for central banks to cut rates, said Button. 

While a stronger local currency might help tame inflation via cheaper imports, it complicates export competitiveness particularly under renewed U.S. tariffs where Asia is exposed as the world’s largest goods producer, said Thomas Rupf, VP Bank’s co-head for Singapore and Asia chief investment officer.

Currency devaluation is likely to be more of an active consideration across emerging markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe.

However, these emerging markets and Asian central banks will need to tread a fine line, to avoid capital flight and other risks.

“Emerging markets face high inflation, debt, and capital flight risks, making devaluation dangerous,” said Wael Makarem, financial markets strategists lead at Exness.

Additionally, devaluation could be seen by the U.S. administration as a trade measure which could attract retaliation, he added.

More

U.S. dollar weakening could force central banks to devalue currencies

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.

Today, well maybe in the engineering lab, but in the real world how much electric power is actually deliverable at a feasible cost?

CATL’s new EV battery blows BYD’s speediest-charging cells out of the water

The new battery can add over 300 miles of range in five minutes.

by Andrew J. Hawkins  Apr 21, 2025, 8:13 PM GMT+1

CATL, the world’s largest battery manufacturer, previewed several breakthroughs in electric vehicle battery tech that is sure to wow EV makers across the world — even if the tech never makes it to the US.

The company teased the innovations at an event in Shanghai timed to precede the city’s auto show. According to local reports, CATL presented three new announcements designed to shake-up the battery world.

The first was an upgraded version of its Shenxing battery designed to add more range when fast charging. CATL said the battery can now offer 520 kilometers (323 miles) of range from just five minutes of charging time — a marked improvement over BYD’s promise to add 400km (249 miles) of range in the same amount of time.

CATL said its system could provide a maximum charging speed of 1.3 megawatts. Even at -10 degrees Celsius (14 degrees Fahrenheit), when charging speeds tend to slow to a crawl, CATL’s Shenxing battery can go from 5 percent to 80 percent in just 15 minutes.

Another major announcement was the reveal of a new sodium-ion battery called Naxtra. According to Bloomberg, the new cells are already ready for commercialization and have been tested in a number of extreme settings, including very cold and hot temperatures. The new batteries are promised to delivery around 200km of range for hybrid vehicles, and 500km for an EV.

Sodium is seen by some as an improvement over lithium, both in terms of availability and stability. The material is more cost effective to obtain and isn’t subject to the same safety hazards as lithium, which can catch fire under certain circumstances. CATL believes that sodium-ion batteries could potentially replace up to half the market for lithium iron phosphate batteries that now dominates the field.

CATL also unveiled a new dual-power battery that can offer a maximum range of 1,500km (932 miles) on a single charge. The company likened the super-powered battery to a dual engine aircraft, with a regular fast-charging cell combined with a separate auxiliary pack for enhanced performance and range.

But thanks to President Donald Trump’s trade war with China, US residents are unlikely to see any of these benefits anytime soon. CATL’s batteries are found in a wide range of EVs, including Tesla and Ford. And while the company could license its tech to American automakers, rising tensions are likely to make it difficult in the near term.

China has recently halted export of rare earth minerals and magnets, and seems likely to want to keep all the best innovations to itself as the US walls itself off from the rest of the world. And the US Department of Defense has recently added CATL to its list of Chinese military companies, which could make it more difficult for the company to do business in the US.

CATL’s new EV battery blows BYD’s speediest-charging cells out of the water | The Verge

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

World Debt Clocks (usdebtclock.org)

“Instead of inquiring why the Roman empire was destroyed, we should rather be surprised that it had subsisted so long”

Edward Gibbon, The Decline and Fall of the Roman Empire.

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