Baltic
Dry Index. 1296 Brent Crude 64.40
Spot Gold 3305 US 2 Year Yield 3.92 -0.08
US Federal Debt. 36.905 trillion!!! US GDP 30.034 trillion.
Nobody can solve debt problems like me.
Donald Trump
In the global stock casinos, more whiplash depending on President Trump’s tariff mood swings.
In his latest attempt to force Canada to become the USA’s 51st state, hours after Canada’s King proclaimed Canada a free and well unified growing nation, President Trump tried extortion on Canadians as a means to coerce them into becoming the 51st state.
Perhaps China should try the same with Taiwan. Russia with Ukraine and the tiny Baltic nations. Brazil with Uruguay. India with Bhutan. Australia with New Zealand.
Trump 2.0 is rapidly altering Pax Americana 1945-2024.
Asia-Pacific
markets trade mixed after Wall Street gains on EU tariff delay
Updated
Wed, May 28 2025 12:20 AM EDT
Asia-Pacific
markets traded mixed Wednesday, after Wall Street gains on investor optimism
after U.S. President Donald Trump extended
the deadline for a 50% tariff on European Union imports until July 9.
Japan’s
benchmark Nikkei 225 rose
0.31%, while the Topix added 0.42%. South Korea’s Kospi jumped 1.78% and the
small-cap Kosdaq Index advanced 0.66%.
Australia’s S&P/ASX 200 slipped
0.13%. Australia’s inflation rate rose 2.4% in April, unchanged since February
but higher than the median estimate of 2.3% polled by Reuters.
Hong
Kong’s Hang Seng index declined
0.55% while mainland China’s CSI 300 traded flat. India’s Nifty 50 slipped
0.17%.
Over in
New Zealand, its central bank expectedly cut the benchmark rate to
3.25%. The New Zealand dollar strengthened modestly following the
announcement to trade at 0.5947 against the greenback.
as
investors await earnings results from Nvidia and the minutes from the Federal
Reserve’s May meeting, due out Wednesday afternoon U.S. time.
Overnight,
the three major stock averages closed higher. The Dow Jones Industrial Average gained
740.58 points, or 1.78%, to finish at 42,343.65, while the S&P 500 rose 2.05% to
5,921.54. Both snapped four-day losing streaks. The Nasdaq Composite popped
2.47% to 19,199.16 as technology names like Tesla saw outsized gains.
Asia-Pacific markets live: RBNZ policy, Australia CPI
Stock futures are
little changed as investors brace for Nvidia earnings: Live updates
Updated
Wed, May 28 2025 8:10 PM EDT
U.S.
stock futures were little changed Tuesday night, as investors awaited earnings
results from Nvidia, after the Dow Jones Industrial Average snapped a four-day
losing streak.
Dow futures rose by 21
points, or less than 0.1%. S&P
500 futures gained 0.03%, while Nasdaq 100 futures added
0.02%.
In
extended trading, Okta shares
plunged more than 12% after the identity management software company kept its
guidance due to macroeconomic uncertainty. Otherwise, Okta beat fiscal
first-quarter expectations on the top and bottom lines.
Investors
are coming off a strong session for the major averages. The 30-stock Dow rallied more than 700
points, or about 1.8%, while the S&P 500 rose 2%, each
ending a four-day losing streak. The Nasdaq Composite advanced
roughly 2.5%.
Those
moves come after President Donald Trump on Sunday said that he would delay
a 50% tariff on the European Union to July 9, after initially saying
Friday that he was “not
looking for a deal.” This added to investors’ hopes the stock market
can leave the worst of the tariff chaos behind.
“It’s
important for investors to look past the tariff turmoil and look at the
environment where we’ll have deregulation, more onshoring. Think about the tax
bill, immediate expensing from a tax basis. Greater opportunities for M&A.
So, the environment post-tariffs will be a great environment for investing,”
Rich Saperstein, chief investment officer of Treasury Partners, said Tuesday on
CNBC’s “Closing Bell.”
“Now, in
between that, we have uncertainty, which could cause a slowdown in the next two
quarters,” said Saperstein. “But I would look to the environment post-tariffs
into ’26, versus looking in the immediate volatility.”
Investors
are awaiting Nvidia’s
earnings results, set to release Wednesday after
the close. They’ll be paying close attention to what
China restrictions will mean for the AI chipmaker, which sees no
slowing in demand for its graphics processors.
Elsewhere, Macy’s, Dick’s Sporting Goods and Abercrombie & Fitch are
set to report before the open on Wednesday.
Traders
will also be reviewing the minutes from the Federal
Reserve May meeting, due out Wednesday afternoon, for insight into how
central bank policymakers are thinking through monetary policy at a time of
greater macroeconomic uncertainty.
Uncertainty
likely to continue through at least July and August, Raymond James says
Stocks
will likely remain volatile through the summer until investors get some clarity
on tariffs, as well as on the U.S. budget, according to Raymond James.
“Equity
and bond markets assumed near recession in early April, followed by overheating
risk by mid-May,” said Tavis McCourt, institutional equity strategist at
Raymond James. “Uncertainty is likely to reign at least until at least
July/August when 90 day tariff reprieves end and the One, Big Beautiful Bill is
signed into law.”
Stock
market today: Live updates
Trump says Canada
will pay $61bn for Golden Dome, or become 51st state
28 May
2025
United
States President Donald Trump says he has told Canada it will have to pay $61bn
to be part of his proposed Gold Dome missile defence system “if they remain a
separate, but unequal, Nation”.
In a post
on TruthSocial, Trump claimed Canada “very much wants to be part of our
fabulous Golden Dome System” and would gain free access if it joins with the
US.
Participating
in the proposed defence system would cost Canada “ZERO DOLLARS if they become
our cherished 51st State”, Trump said, adding, “They are considering the
offer!”
Trump’s
post came just hours after Canada’s parliament hosted the UK’s King Charles III
for a rare royal speech in which the monarch emphasised Canada’s sovereignty in
“dangerous and uncertain” times, and amid the US president’s exhortations for
the country to become part of the US.
Following
the king’s speech, Canadian Prime Minister Mark Carney told Canadian Public
broadcaster CBC that he hopes Canada will join ReArm Europe by July 1, in an
effort to reduce dependence on the US for weapons.
Canada
did not immediately respond to Trump’s latest comment, but Carney has
previously confirmed his country has held “high-level” talks on the defence
system issue with the US.
More
Trump
says Canada will pay $61bn for Golden Dome, or become 51st state
Trump’s tariff
reprieve pushes gold down for second straight session
Published
Mon, May 26 2025 11:48 PM EDT Updated Tue, May 27 2025 2:18 PM EDT
Gold
prices declined for a second consecutive session on Tuesday, as risk sentiment
improved following U.S. President Donald Trump’s decision to postpone tariffs
on the European Union.
Spot gold fell 1.2% to $3,302.10
an ounce after rising nearly 5% last week.
U.S. gold futures settled
1.9% lower at $3,300.40.
“There is
a lot of volatility in gold prices as we keep having things change on the
tariff front. Currently, the market may be under the impression that there is a
deal to be had and that is pressuring gold,” Bart Melek, head of commodity
strategies at TD Securities, said.
A weekend
telephone call between Trump and EU chief Ursula von der Leyen gave “new
impetus” to trade talks, the EU said, after Trump dropped his threat to impose
50% tariffs on imports from the European Union next month.
The U.S.
dollar strengthened and stock index futures surged. A stronger dollar and
rising risk sentiment weighed on gold, a dollar-denominated asset typically
favoured during periods of economic and geopolitical uncertainty.
Federal
Reserve Bank of Minneapolis President Neel Kashkari called for keeping interest
rates steady until there is more clarity on how higher tariffs affect
inflation.
The
minutes from the Fed’s latest policy meeting are set to be released on
Wednesday. Key U.S. economic data scheduled for release this week include the
first-quarter GDP estimate, weekly unemployment claims, and the core PCE price
index.
“Our
longer term bullish view on gold has not changed. As soon as the market
believes that the Fed is going to cut (rates), gold will start doing well,”
Melek added.
More
Trump's
tariff reprieve pushes gold down for second straight session
In other
news.
‘The most calls I’ve ever had’ – Why Japanese
bonds have suffered surging yields
Tuesday 27 May 2025 6:59 am
The Japanese bond market has suffered one
of its worst weeks in years. An auction on Japan’s 20-year government bond saw
its bid-to-cover ratio, a measure of demand, sink to levels last seen in 2012,
while the auction’s tail, the gap between average and lowest-accepted prices,
widened to the longest since 1987, in another sign of a dearth of buyers.
The shocking weakness in demand for
Japanese government bonds, traditionally seen as a safe and reliable asset, has
sparked investor unease over the wider state of Japan’s financial markets, and
the health of bond markets globally.
“There’s a lot of focus on this – I’ve had
more questions than I’ve ever been asked on Japan rates,” said Stephen
Spratt, Asia rates strategist at Societe Generale, adding that even
clients with no exposure to the bonds were calling him up. “They see it moving
a lot and they want to know what’s happening. It’s definitely grabbed
everyone’s attention.”
The slump in demand has sent bond yields,
which move inversely to prices, rocketing to levels not seen in decades. The
20-year yield hit its highest level since 2000, while the 30-year rose to its
highest since 1999 and the 40-year hit an all-time high, as investors demanded
greater returns for holding government debt, pushing up the cost of borrowing.
The moves are thought to have been caused
by a slowdown in bond purchases by large banks and life insurers, the most
common bondholders, some of whom have now turned to become sellers. The trend
has coincided with an unusually high spate of long-dated bond auctions over the
past four weeks, which has made it even harder to find buyers.
Investor uncertainty has intensified ahead
of the Bank of Japan’s upcoming review into its quantitative tightening
programme, where it will make a call about the pace at which it buys government
bonds. Investors have been canvassed by the Bank on its next steps – but
responses have varied wildly, stirring up uncertainty over the Bank’s strategic
direction.
“When you put in a date like that, it
inevitably leads to speculation in the market,” Spratt said.
While bond yields have been rising
globally, none have jumped quite as much, and in such a short period, as those
in Japan. But contagion effects in other markets are likely to be muted. This
is in part because foreign investors account for only a small share of Japan’s
long-dated bond holders, while the use of interest rate swaps will have
cushioned the blow of bond losses.
More
'The most calls
I've ever had' - Why Japanese bonds have suffered surging yields -
Volvo to slash 15% of its workforce thanks to low
EV demand
27 May 2025
Volvo will cut 3,000 jobs as it battles
against the slowdown of electric vehicle sales across the globe.
The Swedish car giant revealed this
morning 15 per cent of its office workforce will be impacted, with the majority
of those hitting white-collar jobs in the Scandinavian country.
It forms part of a £1.4bn
cost-saving strategy Volvo announced earlier this month in order to
'offset external headwinds' caused by the decline in EV sales, high costs and
global trade uncertainty.
Calling Monday's actions 'difficult
decisions' made to 'build a stronger and more resilient Volvo,' Hakan
Samuelsson, chief executive, said: 'The automotive industry is in the middle of
a challenging period.
'To address this, we must improve our cash
flow generation and structurally lower our costs. At the same time, we will
continue to ensure the development of the talent we need for our ambitious
future.'
Owned by China's Geely Holding Group with
production in both China and Europe, Volvo has been highly exposed to the 25
per cent tariffs introduced in the US by President Trump on imported cars.
Volvo confirmed its annual electric car
sales plummet 11 per cent in April, with sales of its electrified models –
fully electric and plug-in hybrids – falling 16 per cent compared to the same
period last year.
Volvo has its main headquarters and
product development offices in Gothenburg, Sweden, and makes cars and SUVs in
Belgium, South Carolina and China.
As of 2024 Volvo employs roughly 44,000
employees globally, whith nearly 20,000 are 'white-collar' workers.
Telling Reuters that cuts are 'everywhere'
and 'considerable' Samuelsson confirmed: 'It's white-collar in almost all
areas, including R&D, communication, human resources.
----In its latest sales report from April,
Volvo confirmed that its share of fully electric cars constituted 20 per cent
of all cars sold for the month while the share of plug-in hybrid models
accounted for 25 per cent.
Fully electric sales were down 32 per cent
from April 2024.
While poor EV uptake has hit Volvo just
like many other manufacturers, Samuelsson said it could become impossible to
import the smallest cars in the company's line-up to the US due to the new
tariffs.
More
Volvo to slash 15%
of its workforce thanks to low EV demand
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.
Hard
to swallow: food inflation rises for fourth month in a row
Tuesday
27 May 2025 12:01 am
Food
inflation rose for a fourth consecutive month in May, with the British Retail
Consortium (BRC)
warning a new packaging tax and the government’s workers’ rights overhaul will
fuel further price rises in the coming months.
The
cost of food rose by an average of 2.8 per cent year on year in May, up from a
rise of 2.6 per cent in April, according to fresh data from the retail industry
body.
The
upward pressure on prices was most keenly felt in fresh foods, which rose by
2.4 per cent year on year in May against growth of just 1.8 per cent April,
while the rising wholesale beef price also acted to push up prices in steaks.
Overall,
shop prices remained in deflation. The average basket in May was 0.1 per cent
cheaper than a year ago, the same as April’s figure in the monthly BRC-NIQ Shop
Price Index.
A flurry of
aggressive promotion campaigns has kept shop prices down in recent months, as retailers
continue to vie for the custom of increasingly price-sensitive and savvy
shoppers.
But
there were signs in May’s inflation reading that the period of downward price
movement may be coming to an end, as the ill effects of April’s hikes to
employer National Insurance contributions (NICs) and minimum wage begin to be
felt by bosses.
Prices
in the fashion and furniture categories saw fresh upward pressure in May,
according to the BRC’s chief
executive, Helen Dickinson, thanks to the unwinding of promotional activity.
Meanwhile
Donald Trump’s tariff regime pushed the cost of electrical items down for
consumers, as retailers looked to get ahead of any price rises that may be
necessary should the US President’s 90-day tariff pause come to a sudden halt.
Price
rises on the horizon
Dickinson
pinned the rise in food prices on the cost burden placed on retailers by the
government. She said it was “no surprise that inflation is rearing its head
once again” given retailers were now all absorbing the additional £5bn in costs
from NICs and living wage hikes.
The
lobby group boss also warned that two major policy changes on the horizon for
firms will further fan the flames of inflation.
“Later
this year, retailers face another £2bn in costs from the new packaging tax, and
there are further employment costs on the horizon from the implementation of
the Employment Rights Bill,” she said.
“Government
must ensure the Employment Rights Bill is fit for purpose, supporting workers’
rights while protecting jobs and investment for growth.
“If
statutory costs continue to rise for retailers, households will have to brace
themselves for more difficult times ahead as prices rise faster.”
Hard to swallow:
food inflation rises for fourth month in a row
Up
to 4,000 livelihoods at risk as ABF prepares to pull plug on bioethanol plant
Tuesday
27 May 2025 12:58 pm | Updated: Tuesday 27 May
2025 4:09 pm
ABF,
which owns the Vivergo Fuels plant in Yorkshire, has written to farmers warning
it planned to suspend purchases of wheat used in the production process unless
the government urgently steps in.
The
plant is capable of producing up to 420 million litres of bioethanol from over
1 million tonnes of feed grade wheat sourced from thousands of farms mostly
across Yorkshire and Lincolnshire. Over 160 skilled workers are employed by the
plant with a supply chain supporting around 4,000 livelihoods.
ABF
said the plant’s future could become untenable following the UK-US
trade deal which removed a 19 per cent tariff on ethanol imports,
allowing heavily subsidised US ethanol to undercut British producers.
The
leaders of the UK’s two largest bioethanol plants wrote to the Prime Minister
on 9 May before meeting Business
and Trade Secretary Jonathan Reynolds on 14 May where Reynolds said he
would act in “days not weeks” – but the firms claim there has been “little
evidence of urgency” from the government since.
Vivergo
Fuels Managing Director Ben Hackett said: “This is not a position we ever
wanted to be in.
“We
have asked government to increase domestic demand for bioethanol through a
simple change to regulation, and for the short term and affordable support we
need until that demand materialises. So far, nothing has been forthcoming.
“The
removal of tariffs on US ethanol, combined with ongoing regulatory obstacles,
has left us unable to compete on a level playing field. As a result, we will
have to scale back wheat purchasing to meet only our current contractual
commitments…time is rapidly running out.”
‘Unbeatable
cost advantage’
Last
month, ABF
CEO George Weston told City AM the plant had been
hamstrung by the government’s decision to double-count renewable fuel
certificates for overseas producers, which “gives them an unbeatable cost
advantage.”
“We
don’t believe that the government’s been obliged to do that, they’ve chosen to,
and they’ve put this business in an impossible position by the action they’ve
taken,” he said.
“We
really are doing everything we can to save that plant, we don’t want to
mothball or shut it but we may be forced to.”
More
Up
to 4,000 livelihoods at risk as ABF prepares to pull plug on bioethanol plant
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.
First
new antibiotic in 50 years to tackle superbug
26 May 2025
The first new antibiotic in
50 years to tackle a common superbug will be tested on patients.
The drug, which targets one
of the bacteria considered to pose the biggest threat to human health, has been
hailed as an “exciting” development in the fight against antibiotic resistance.
On Monday, Roche, the Swiss
pharmaceutical giant, announced that it will take zosurabalpin into the third and last phase of testing on
humans.
It is the first drug in five
decades to show promise of tackling Acinetobacter baumannii, a pathogen which
is described as a “priority” by the World Health Organisation and an “urgent
threat” by the Centers for Disease Control and Prevention, the US national
public health agency.
The drug-resistant bacteria disproportionately impact patients who are
in the hospital, causing infections such as pneumonia and sepsis.
It is estimated that between
40 and 60 per cent of infected patients, many of whom are immunocompromised
because of conditions such as cancer, die as a result of the bug.
One of the reasons it is so
difficult to treat is that it has a double-walled “membrane” protecting it from
attack, so it is difficult to get drugs into it and to keep them in, experts
say.
Zosurabalpin, which has been
developed alongside researchers at Harvard University, targets the “machine”
which stops the outer membrane from forming properly.
It works differently to all
existing antibiotics and it is hoped that it could lay the foundations for
future drugs.
Drug-resistant bacteria
Michael Lobritz, global head
infectious diseases at Roche, said: “Our goal is to contribute new innovations
to overcome antimicrobial resistance, one of the biggest infectious disease
challenges to public health.”
The phase-three trial, which
it is hoped will start later this year or in early 2026, will look at around
400 patients with a carbapenem-resistant Acinetobacter Baumannii (CRAB)
infection who will either receive zosuarbalpin or the current standard of care.
It is hoped that the drug
will be approved by the end of the decade.
Larry Tsai, senior vice
president and global head of immunology and product development at Genentech, a
unit of Roche, said that the drug-resistant bacteria “are present in every
country of the world” .
He said that “the innovative
biology involved in this research could potentially reveal new insights into
the structure of bacterial membranes, possibly leading to the discovery
of new antibiotics in the future”.
Pharmaceutical companies,
including Roche, have in the past been unwilling to pursue new antibiotics
because of a difficult market in which the drugs are used sparingly to try and
avoid resistance.
However, the UN has warned
that if nothing is done to address the issue, drug-resistant diseases
could cause 10 million deaths each year by 2050 and cause a worldwide
financial crash.
More
First new antibiotic in 50 years to tackle superbug
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
The
budget was unlimited, but I exceeded it.
Donald Trump
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