Thursday, 8 May 2025

Fed On Hold. Team Trump Race to Meet China In Europe. BOE Day.

Baltic Dry Index. 1374 -32         Brent Crude 61.50

Spot Gold 3382               US 2 Year Yield 3.78 unch.

US Federal Debt. 36.822 trillion!!!

 A recession is when your neighbor loses his job. A depression is when you lose yours.

Ronald Reagan

As expected, the US central bank left their key interest rate unchanged. Today it’s the Bank of England’s turn at cutting interest rates or not.

In the stock casinos, optimism ahead of a hasty US arranged US and China trade meeting in Switzerland at the weekend, although President Trump seems to have already declared it moot.

If so, expect bad things in the stock casinos next week.

European stocks set for higher open as traders brace for more earnings, central bank moves

Updated Thu, May 8 2025 12:42 AM EDT

European stocks are set to open in positive territory Thursday as investors await more earnings reports and interest rate decisions from central banks in the region.

The U.K.’s FTSE 100 index is expected to open 46 points higher at 8,586, Germany’s DAX up 147 points at 23,263, France’s CAC 45 points higher at 7,662 and Italy’s FTSE MIB 230 points higher at 37,960, according to data from IG.

It’s a busy day for earnings, with MaerskSiemens EnergyHeidelberg MaterialsHenkelInfineonLanxessPumaRheinmetallBoschNorwegian AirSwisscomZurich InsuranceAdecco GroupInterContinental Hotels Group and Banco Sabadell all due to report.

Monetary policy announcements are due from central banks today from Riksbank, Norges Bank and Bank of England on Thursday, with the latter widely expected to cut interest rates.

U.S. stock futures were relatively unchanged overnight on the heels of the U.S. Federal Reserve holding steady on rates as it highlighted rising inflation and unemployment risks.

The Federal Open Market Committee held its benchmark overnight borrowing rate in a range of between 4.25% to 4.5%, where it has been since December. The decision was largely expected.

Fed Chair Jerome Powell warned in his press conference that if the significant tariff hikes already announced remain at current levels, they could lead to a slowdown in economic growth and an uptick in long-term inflation.

Asia-Pacific markets traded mixed overnight after the Fed’s decision, with investors awaiting updates on the upcoming U.S.-China trade talks. U.S. Treasury Secretary Scott Bessent and his Chinese counterpart are set to meet in Switzerland this week to address the countries’ deep trade dispute and economic issues.

European markets live: stocks, news, data and earnings

Trump digs in on high China tariffs ahead of trade talks

Published Wed, May 7 2025 2:42 PM ED TUpdated Wed, May 7 2025 5:35 PM EDT

President Donald Trump said Wednesday he would not consider lowering the United States’ 145% tariffs on China in order to spur trade-war negotiations with Beijing.

Trump flatly answered “no” when asked at the White House if he was open to pulling back on the steep import duties to get China to the negotiating table.

Trump’s commitment to his tariffs came three days before U.S. Treasury Secretary Scott Bessent was scheduled to meet with his Chinese counterpart in Switzerland to discuss trade and economic issues.

China said earlier Wednesday that the U.S. requested that meeting and that Beijing remained “firmly” opposed to Trump’s tariff hikes heading into the talks.

Asked what he expected to come out of the meeting in Europe, Trump said, “We’ll see ... we were losing a trillion dollars a year, now we’re not losing anything, you know? It’s the way I look at it.”

Trump digs in on high China tariffs ahead of trade talks

Britain set to become the first country to sign a trade deal with U.S., The New York Times reports

Published Wed, May 7 2025 11:38 PM EDT

Britain is reportedly set to sign a trade deal with the U.S., making it the first country to do so after the world’s largest economy announced stiff “reciprocal” tariffs against friends and foes alike in April.

The New York Times reported the development after U.S. President Donald Trump said on Wednesday night stateside that there will be a briefing about a trade deal next day, without revealing any details.

CNBC did not receive a response from the White House and the British Embassy in Washington seeking comments on the news.

It was uncertain if both sides will sign a finalized deal or a framework for an agreement that they would continue negotiating in the coming months, NYT said.

Britain, which runs a trade deficit with the U.S., was spared the higher “reciprocal” tariffs when Trump announced his “Liberation Day” duties, although it was still hit with the baseline 10% levy.

On April 15, U.S. Vice President JD Vance said that the U.K. has a “good chance” of securing a trade deal with America.

“I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries,” he added.

However, on Tuesday, Trump appeared to contradict White House officials, when he said that the U.S. does not need to “sign deals” with trade partners, despite top White House officials claiming for weeks that such deals were the administration’s top priority.

“We don’t have to sign deals, they have to sign deals with us. They want a piece of our market. We don’t want a piece of their market,” Trump said.

Read the full NYT story here.

UK set to sign a trade deal with U.S.

Fed Waits to See How Trade War Shakes Out

May 7, 2025 at 10:55 PM GMT+1

Federal Reserve Chair Jerome Powell said he’s not in a hurry to adjust interest rates in a world where tariffs could lead to higher inflation and unemployment. Unsurprisingly, the US central bank voted unanimously Wednesday to keep the benchmark federal funds rate in a range of 4.25% to 4.5%, where it’s been since December.  

President Donald Trump‘s trade policy has unleashed a wave of uncertainty across the economy. Economists widely expect the expansive tariffs to boost inflation and weigh on growth. That would pit policymakers’ two goals—price stability and maximum employment—against one another.

With unemployment still low and demand steady, Fed officials have said they are comfortable keeping rates unchanged until they have a better understanding of where the economy is headed. Powell repeated that sentiment Wednesday, adding that the cost of waiting is fairly low.

“We think we’re in the right place to wait and see how things evolve,” Powell said. “We don’t feel like we need to be in a hurry. We feel like it’s appropriate to be patient.” Most US government debt securities rose, as did stocks. Here’s your markets wrap. David E. Rovella

After weeks of public requests from the White House to talk, Chinese leader Xi Jinping finally agreed to discuss a potential resolution of the trade war Trump launched. But first, Xi sought to buttress the Chinese economy ahead of planned negotiations in Switzerland, unveiling sweeping measures to stabilize markets, boost tech innovation and protect small businesses. On Wednesday, China’s central bank announced across-the-board rate cuts alongside other steps that could pump 2.1 trillion yuan ($291 billion) into the economy. 

One outcome of the talks could be for Trump to offer Beijing a 90-day pause on all punitive tariffs apart from those related to fentanyl, bringing the US rate back down to 20% from triple digits. That would mirror Trump’s approach to other nations and come close to Beijing’s call for Washington to lift all unilateral levies while negotiations take place.

Not everyone is that optimistic though. Economists at HSBC predicted the US would roll back tariffs to 50%, while Morgan Stanley’s Robin Xing said a “gradual approach” was more likely. Tariffs at those levels would still threaten to wipe out the bulk of US-China trade, requiring Xi’s government to unleash more monetary and fiscal stimulus later this year to hit a growth target of around 5%.

The current situation “is a lose-lose scenario” for all involved, Citigroup economists including Xiangrong Yu wrote in a Wednesday note, while still forecasting prohibitively high tariff levels would remain in place for six to 12 months.

Fed Waits to See How Trade War Shakes Out: Evening Briefing Americas - Bloomberg

EU considers tariffs on Boeing jets, FT reports

7 May 2025

(Reuters) -The European Union intends to propose tariffs on Boeing jets, as it prepares to retaliate further if trade talks with Washington fail, the Financial Times reported on Wednesday.

The European Commission, which oversees EU trade policy, plans to include civilian aircraft on a list of roughly $100 billion in annual U.S. imports to be targeted, the report said citing two people familiar with the matter.

Boeing and the European Commission did not immediately respond to Reuters' requests for comments.

EU considers tariffs on Boeing jets, FT reports

In other news, does President Trump even want trade deals?

CNBC Daily Open: Countries want to strike deals with U.S. — but are also making them without it

Published Wed, May 7 2025 2:30 AM EDT

After U.S. President Donald Trump shattered — or at least fractured — global trade relationships and supply chains, there are promising signs of reconstruction in recent days. Indeed, U.S. Treasury Secretary Scott Bessent told CNBC on Monday the country is “very close to some deals.”

On Tuesday, newly elected Canadian Prime Minister Mark Carney met Trump at the White House, potentially resetting a bilateral relationship that has been strained since January. And Chinese Vice Premier He Lifeng is scheduled to meet Bessent in Switzerland this week for trade talks.

But enter the hurricane that is Trump, again. “We don’t have to sign deals, they have to sign deals with us. They want a piece of our market. We don’t want a piece of their market,” Trump said during his meeting with Carney, contradicting top White House officials’ claim for weeks that such deals are the administration’s top priority. Markets fell after his comments.

The growing protectionism of the U.S., ironically may help other countries forge closer economic ties with each other. The U.K. and India agreed on a bilateral trade agreement that will remove tariffs on most items within a decade. Meanwhile, ASEAN and China are set to meet on May 19 to negotiate improvements to a free-trade agreement, according to Malaysian Prime Minister Anwar Ibrahim on Monday.

They may be new bridges being built in the aftermath of Trump tariffs. But those connections could bypass the U.S. — which, according to Trump, does not need deals anyway.

Officials from U.S. and China to meet
U.S. Treasury Secretary Scott Bessent and trade representative Jamieson Greer will 
meet with their Chinese counterparts in Switzerland this week to discuss economic and trade matters, their offices announced Tuesday. Later in the day, the Chinese Foreign Ministry said that Vice Premier He Lifeng, Beijing’s top official for China-U.S. economic and trade matters, will meet with Bessent in Switzerland, NBC News reported.

CNBC Daily Open: Countries are making deals without the U.S.

Trump trade tariffs slump widens to 'nearly all U.S. exports,' supply chain data shows

May 6, 2025

What began as a rapid drop in U.S. imports as shippers cut orders from manufacturing partners around the world has now extended into a nationwide export slump, with the U.S. agricultural sector and top farm products including soybeans, corn and beef taking the hardest hit.

The latest trade data shows that a slide in U.S. exports to the world, and China in particular, that began in January now extends to most U.S. ports, according to trade tracker Vizion, which analyzed U.S. export container bookings for the five-week period before President Donald Trump's tariffs began and the five weeks after the tariffs took effect.

The farming sector has been warning of a "crisis" and ports data is showing more evidence of lack of ability to move product out to global markets. The Port of Portland, Oregon, tops the list with a 51% decrease in exports, while the Port of Tacoma, Washington, a large agricultural export port, has seen a 28% decrease. Tacoma's top destinations for corn, soybeans and other ag exports include Japan, China and South Korea. 

Some ports have only seen a small exports decrease to date, such as the Port of Houston and the Port of Seattle, at 3% and 3.5%, respectively. But what is clear, according to Ben Tracy, vice president of strategic business development at Vizion, "is that nearly all of U.S. exports have taken a hit."

The trade data shows declines of more than 17% at the Port of Los Angeles, while the Port of Savannah, Georgia — the top U.S. port for exporting containerized agricultural goods in 2025 — is down 13%, and the Port of Norfolk, Virginia, is down 12%, according to Vizion.

The Port of Oakland, California, also plays a significant role in exports as the leading port for international refrigerated goods. U.S. agricultural exports also leave Los Angeles, Long Beach, California, New York/New Jersey, Houston and Seattle/Tacoma. 

The slide in exports is linked to the decline in containerships coming to the U.S., as businesses across the economy cancel manufacturing orders, sending Chinese factories and freight ships into retreat, as well as changes in global demand linked to U.S. trade policy. U.S. imports continue to decline, with port data tracked by Vizion showing a 43% week-over-week drop in containers from the week of April 21 to the week of April 28.

"We haven't seen anything like this since the disruptions of summer 2020," said Kyle Henderson, CEO of Vizion. "That means goods expected to arrive in the next six to eight weeks simply won't. With tariffs driving costs higher, small businesses are pausing orders. Products that once moved reliably are now twice as expensive, forcing importers into tough decisions," he said.

'Lean' retail inventories ahead

Retailers have been urging consumers to buy sooner rather than later, and data from Bank of America Global Research suggests why that may be the right move. Its latest forecast shows that the number of inbound container ships to the Port of Los Angeles will see a sharp drop in May, with escalating trade disruptions leading to a 15%-20% decrease in U.S. container imports from Asia in the coming weeks.

In a note to clients, Bank of America warned that the ratio of retail inventories to monthly sales was not especially high, while at the same time, consumers have been buying ahead on expectations of higher prices and lack of product choice.

Based on data Bank of America reviewed on retail payments to transportation and shipping companies, there has been no big ramp in inventories after the front-loading that occurred earlier this year, and supply disruptions may be looming.

"We think it is possible retail inventories may actually look 'lean' in coming months," the Bank of America report stated.

Many retailers only have one to two months of sales in inventory, it found, and any unforeseen demand or supply disruptions can quickly impact what goods retailers can offer and the prices charged, it concluded.

It is a pivotal time of the year for the holiday shopping season, when orders are typically being placed. The supply chain's tipping point — where holiday success is either locked in or left to chance — is June.

More

Trump trade tariffs slump widens to 'nearly all U.S. exports,' supply chain data shows

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.

No signs of US recession, Treasury Secretary says

May 6, 2025

There are currently no signs that the United States has entered a recession despite the world's largest economy recording a contraction in the first quarter, the US Treasury Secretary said Tuesday. 

"I believe in data, and there is nothing in the data that shows that we are in a recession," Scott Bessent told lawmakers during an appearance in Congress. 

Bessent's remarks contrast with those of Trump, who was asked in a recent interview if the United States could enter a recession. 

"Anything can happen," he told NBC in the interview, which was broadcast on Sunday. "But I think we're going to have the greatest economy in the history of our country. I think we're going have the greatest economic boom in history."

The technical definition of a recession is two consecutive quarters of economic contraction, although the National Bureau of Economic Research uses a slightly broader metric when making official judgements about the US economy. 

"As a matter of fact, the jobs report had a surprise to the upside," Bessent said, referring to the better-than-expected April jobs report published last week.

Since taking office, US President Donald Trump has rolled out steep tariffs against top trading partners, leading to a surge in volatility in the financial markets and causing analysts to predict higher inflation and slower growth this year.

Growth in the first quarter of 2025 unexpectedly contracted, according to initial government estimates, as consumers and businesses rushed to import more goods ahead of the rollout of Trump's sweeping "liberation day" tariffs in early April.

Bessent told lawmakers the administration was making good progress with top trading partners ahead of a self-imposed July deadline to reach a deal or face the prospect of higher tariffs -- with the exception of China, with which the United States has not yet begun talks. 

"Perhaps as early as this week we will be announcing trade deals with some of our largest trading partners," he said, echoing recent remarks from the US president.

"And what I will tell you is that in negotiating with some of them, they may not like the tariff wall that President Trump has put up, but they have them," he added. "So if tariffs are so bad, why do they like them?"

Once the negotiations conclude, Bessent said he expects the United States would "see a substantial reduction in the tariffs that we are being charged, as well as non-tariff barriers, currency manipulation, and the subsidies of both labor and capital investment."

No signs of US recession, Treasury Secretary says

How Close Is The U.S. To A Recession? Here’s What Key Indicators Say.

May 6, 2025

Topline

As President Donald Trump’s oft-changing tariff policies work their way through the economy, fears of a downturn pervade Main Street and Wall Street, with odds of the U.S. facing a recession still higher than usual.

Key Facts

Goldman Sachs reaffirmed its probability of a U.S. recession over the next 12 months at 45%, as the investment bank’s chief economist Jan Hatzius wrote Tuesday there’s still high probability of an “event-driven downturn.”

Hatzius noted there’s still “meaningful risk that some of the paused ‘reciprocal’ tariffs will take effect after all,” nodding to the country-by-country levies Trump announced April 2, before pausing many of those tariffs a week later as financial markets sold off.

Others on Wall Street are more optimistic, as Solita Marcelli, UBS Wealth Management’s Chief Investment Officer Americas, wrote Tuesday she expects the U.S. to dodge “a full-blown recession this year as trade deals are agreed and tariffs are reduced.”

What Needs To Happen To Trigger A Recession?

The technical definition of a recession is two consecutive quarters of negative growth in gross domestic product, a comprehensive measure of all goods and services produced in a country. The U.S. just recorded its first quarter of negative GDP growth since 2022. While that estimate was likely skewed negatively by its methodology, including how it accounts for a surge in gold imports, some will likely say we have entered a recession if the second quarter agains registers a negative GDP. However, the National Bureau of Economic Research is the most commonly cited determiner of recessions, and it defines one as a “significant decline in economic activity that is spread across the economy and lasts more than a few months.” That means the U.S. economy could avoid sinking into an all-out recession, even if Q2 GDP is negative, if it recovers quickly.

Is The Labor Market Showing Signs Of A Recession? (and What Is The ‘sahm Rule?)

Not particularly, at least not yet. Employers added more jobs than forecasted in April as unemployment rate stood at 4.2%. Goldman forecasts unemployment will rise to 4.7% by year’s end, but the jobless rate has ranged between 4% and 4.2% since May 2024. The 4.2% unemployment rate sits well within the healthy historic norm. One key labor market recession indicator is the Sahm rule, which holds that when the three-month average of the unemployment rate rises by 0.5% compared to the lowest of three-month average from the previous year, a recession has begun. But so far, that gauge flashes a far lower likelihood of a recession than it did when it peaked last summer, inspiring a short-lived market selloff in August.

Does Wall Street Expect A Recession?

Experts largely view the prospect of a tariff-driven recession as a tossup. Torsten Slok, the chief economist at asset management titan Apollo Global Management, wrote last month he believes there’s a 90% probability the U.S. will fall into a “Voluntary Trade Reset Recession,” slamming Trump’s trade policies for being “implemented in a way that has not been effective” after his “administration inherited an economy with strong growth.” Bank of America CEO Brian Moynihan said his bank’s baseline economic forecast does not call for a recession this year, while Morgan Stanley forecasts 40% odds and JPMorgan Chase projects a 60% chance. Lawrence Summers, the former Treasury Secretary during President Bill Clinton’s term, said in an April editorial podcast in The New York Times he believes it’s “six in 10 or better that a recession will start this year,” explaining: “The pause is certainly better than if we had simply charged along on the catastrophic path that we’re on, but anybody who thinks the genie is back in the bottle and that it’s all now OK should reconsider their position.” Summers predicted such a downturn would leave an additional 2 million Americans unemployed, a more than 28% increase from the 7.1 million unemployed Americans in March, and a $5,000 or greater decline in annual household income.

More

How Close Is The U.S. To A Recession? Here’s What Key Indicators Say.

Billionaire Ken Griffin calls tariffs a ‘painfully regressive tax,’ hitting working class Americans the hardest

Published Wed, May 7 2025 5:31 PM EDT

Billionaire Ken Griffin, founder and CEO of the Citadel hedge fund, said working class Americans will bear the brunt of President Donald Trump’s punitive tariffs on U.S. trading partners.

“Tariffs hit the pocketbook of hardworking Americans the hardest,” Griffin said on CNBC’s “Closing Bell” Wednesday. “It’s like a sales tax for the American people. It’s going to hit those who are working the hardest to make ends meet. That’s my big issue with tariffs. It’s such a painfully regressive tax.”

Trump rolled out shockingly high levies on imports last month, triggering extreme swings on Wall Street. The president later went on to announce a 90-day pause on much of the increase, except for China, as the White House sought to strike deals with major trading partners. Trump has slapped tariffs of 145% on imported Chinese goods this year, prompting China to impose retaliatory levies of 125%.

Griffin, whose hedge fund managed more than $65 billion at the start of 2025, voted for Trump and was a megadonor to Republican politicians. But he has also criticized Trump’s trade policy, saying it risks spoiling the “brand” of the United States and its government bond market.

“The reason the American voters elected President Trump was because of the failed economic policies of Joe Biden and the inflationary shock that reduced the real incomes of every American household,” Griffin said. “The president really does have to focus on managing inflation, because I think it’s front and center, the primary score card that American voters are going to think about when it comes to this midterm election.”

The Wall Street titan said there is a “modest” risk of stagflation as higher tariffs create both inflationary pressures and slow down the economy. He said the trajectory of the economy largely depends on how Trump’s economic policy develops.

As laid out by Treasury Secretary Scott Bessent, Trump’s economic program takes a three-pronged approach: trade, tax cuts and deregulation.

“The question is, will all three of those come together to give us the growth that we need in our economy?,” Griffin asked. “That’s the real question we’re going to face over the next two years.”

Griffin calls tariffs a 'painfully regressive tax,' hitting working class the hardest

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, the BBC on EV battery swapping. But what about the cost and fire safety issues of the mass storage and recharging of spent batteries?

A new fully charged EV battery in five minutes: Are China's swap stations the future of electric cars?

By Iris Liu 6th May 2025

China has been trialling battery swaps for electric cars for years. Are they a viable solution to range anxiety?

At a battery swap station near the Beijing Olympics Sports Centre, the owner of a Nio car watches as a fully charged battery is placed into his vehicle. The station's staff drive his car onto a platform with an integrated system which removes the depleted battery from beneath the car and loads it a fresh one. The whole process takes no more than five minutes.

Behind him, a few other customers wait in line under an overcast sky, the iconic Bird's Nest Olympic stadium not far in the distance. Outside the battery swap station, a slogan reads, "Battery swap stations are equivalent to gas stations for electric vehicles".

Battery swapping – which simply means changing out depleted electric vehicle (EV) batteries for fresh, recharged ones – is an alternative to charging batteries inside the vehicle, as is used for the vast majority of the world's electric cars.

While battery swap is still largely a nascent sector, China has the world's most developed model by far. While it's mainly used for larger vehicles – close to half of the electric heavy-duty trucks sold in China in 2023 were equipped with battery-swap technology – the country is also seriously experimenting with swaps for personal cars.

Chinese electric vehicle company Nio has now built over 3,300 battery swap stations in China, while Catl, China's (and the world's) largest EV battery producer, recently announced plans with oil giant Sinopec to build a "battery-swapping ecosystem across the whole nation".

Battery swapping can have some big advantages, in particular the lower amount of time it takes compared to recharging a battery while its inside a car. Still, it faces obstacles in China, which is also developing fast charging infrastructure at breakneck speed.

In fact, experts say that it may be in the countries which, unlike China, remain in the early stage of a switch to EVs that battery swaps prove most useful for supporting electric car uptake – especially when it comes to addressing range anxiety among drivers.

Especially during the early days of electric vehicles, they were difficult to promote on a large scale due to range anxiety, says Daizong Liu, East Asia director of the Institute for Transportation and Development Policy (ITDP) in New York. A lack of charging facilities led to longer waiting times and interruptions during trips for EV users. Battery swap technology soon entered the field as a potential solution.

Although first tested and used more than a century ago before electric cars fell out of favour, in more recent decades battery swaps for electric cars were initially picked up by EV battery swap company Better Place, which was established in Israel in 2007. Operating in Denmark and Israel, it aimed to reduce the cost of batteries as well as reduce range anxiety and charging times, and received almost $1bn (£760m) in funding. But the company eventually went bankrupt in 2013, citing difficulties in consumer adoption and securing sufficient support from automakers, the Times of Israel reported at the time.

Just weeks after Better Place declared bankruptcy, Tesla's plans to launch its own 90 second battery swap service were widely reported, with initial swapping locations along routes between Los Angeles and San Francisco, and Boston and Washington. But just two years later, it began phasing swapping out again, citing low market acceptance.

China's State Grid – the largest utility company in the world – began researching battery swaps for electric vehicles around 2006. It was seen as a way around a large-scale transformation of the power grid, as its reliance on pre-charged batteries meant charging could be done at more flexible times and places.

"After comprehensive consideration, China decided to have a route to do battery swaps," says Liu.

---- The ownership question is another thing holding back battery swaps for private vehicles, both in China and elsewhere. Battery swaps inherently require car owners to relinquish ownership of a particular battery. If a car owner has just bought a new car and swaps its battery on the motorway, for example, they will very likely receive an older battery. Many car companies are aware of this issue, and some have adopted a business model of separating the car and the battery: consumers buy their cars without batteries, which they rent directly from the company.

More

A new fully charged EV battery in five minutes: Are China's swap stations the future of electric cars? - BBC Future

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

World Debt Clocks (usdebtclock.org)

Commodus (/ˈkɒmədəs/;[5] 31 August 161 – 31 December 192) was Roman emperor from 177 to 192, first serving as nominal co-emperor under his father Marcus Aurelius and then ruling alone from 180. Commodus's sole reign is commonly thought to mark the end of the Pax Romana, a golden age of peace and prosperity in the history of the Roman Empire.

----Upon his ascension, Commodus devalued the Roman currency. He reduced the weight of the denarius from 96 per Roman pound to 105 per Roman pound (3.85 grams to 3.35 grams). He also reduced the silver purity from 79 percent to 76 percent – the silver weight dropping from 2.57 grams to 2.34 grams. In 186, he further reduced the purity and silver weight to 74 percent and 2.22 grams respectively, being 108 to the Roman pound.[23] His reduction of the denarius during his rule was the largest since the empire's first devaluation during Nero's reign.

Commodus - Wikipedia


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