Saturday, 24 May 2025

Special Update 24/05/2025 Tariffs, A Return To The 1930s.

 Baltic Dry Index. 1340 -01              Brent Crude 64.78

Spot Gold 3358                   U S 2 Year Yield 4.00 unch.

US Federal Debt. 36.888 trillion!!!

Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape from the state.

William F. Rickenbacker

What part of the Great Depression doesn’t Tariff Team Trump understand?

At a stroke, President Trump yesterday just aligned the EU, Apple and China against the USA.

While EU governments will be slow to react, nothing happens fast in the EUSSR, Europe’s population will increase their boycott of US products and vacations.

At a stroke, President Trump just aligned slightly over two billion consumers against US goods and services.  Nothing good for anyone lies in this economic madness.

Dow slides 200 points, S&P 500 tumbles for a fourth day after Trump threatens tariffs on EU, Apple: Live updates

Updated Fri, May 23 2025 4:34 PM EDT

Stocks declined Friday after President Donald Trump raised trade fears again, warning Apple  and recommending stiffer duties on the European Union.

The Dow Jones Industrial Average lost 256.02 points, or 0.61%, to end at 41,603.07. The S&P 500 shed 0.67% and closed at 5,802.82, and the Nasdaq Composite dropped 1% and settled at 18,737.21.

Apple shares fell 3% after Trump posted on Truth Social that iPhones sold in the U.S. must be made in the U.S. and if they are not “a tariff of at least 25% must be paid by Apple.” The move against Apple by Trump is the first against a specific company in his tariff rollout this year.

The president also said trade discussions with the EU “are going nowhere” and recommended “a straight 50% tariff on the European Union, starting on June 1, 2025.”

Stocks came off their lows of the day after CNBC’s Eamon Javers reported the White House did not interpret Trump’s remarks as a formal statement of policy.

Trump’s actions come at a time when tariff tensions were easing. Trump in April implemented duties on most nations in the world, which rattled the stock market and nearly put the S&P 500 in a bear market. The president then paused the stiffest tariffs for 90 days and hatched some preliminary agreements with the U.K. and China, causing stocks to recover. The S&P 500 got back to even on the year last week, but was back in negative territory at the end of Friday’s trading.

Investors were buying stocks on speculation that more agreements would be rolling out with various nations during this three-month pause. Friday’s actions by Trump could mean that hope was misplaced.

“We’ve had this de-escalation tailwind at the market’s back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years — and a re-escalation of trade war rhetoric threatens that. I don’t think we’ll retest the lows or anything like that, unless it really ramps up, but this is certainly a step in the wrong direction from the market’s perspective,” said Ross Mayfield, investment strategist at Baird, in an interview with CNBC.

Elsewhere, shares of United States Steel surged 21% after Trump said on Truth Social that the company would form a “partnership” with Nippon Steel. Earlier this year, the Japanese company’s bid to buy its U.S. rival had been blocked.

Friday’s declines added to the market’s weekly losses. The S&P 500, Dow and Nasdaq all lost more than 2% on the week.

Looking ahead, Rick Wedell, the president and chief investment officer at RFG Advisory warned that this “roller coaster ride” of de-escalating and re-escalating tariff tensions is likely to be a permanent fixture of Trump’s second term.

“It is very important for investors to understand that this lingering trade issue is likely to be here for, I think, the duration of this administration. I don’t think they are going to look the other way on trade at any point. I think they think of this as a defining characteristic of the administration’s legacy is fixing the international trade deals,” he said. “I would just encourage investors to never get lulled into a false sense either way.”

Stock market news for May 23, 2025

Markets slump as Trump vows 50 per cent tariffs on the EU

Friday 23 May 2025 2:06 pm  |  Updated:  Friday 23 May 2025 4:57 pm

European Union (EU) imports into the US, sending markets in Europe and the UK into the red.

In a post on his Truth Social platform, Trump said that the new rate of trade levies would kick in on 1 June. 

The US President slammed the EU as a trading bloc “which was formed for the primary purpose of taking advantage of the United States on TRADE” and “has been very difficult to deal with.”

“Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable.”

He added: “Our discussions with them are going nowhere!”

Trump signed off the post with: “Thank you for your attention in this matter!” 

EU tariffs were originally set at 20 per cent in Trump’s initial ‘Liberation Day’ package of tariffs, before being dropped to ten per cent as the US President softened almost all global levies weeks later following market turmoil

The ten per cent rate of tariffs was intended to hold until 8 July, when the 90-day pause on higher rates of tariffs is set to expire.

More

Markets slump as Trump vows 50 per cent tariffs on the EU

A Trumpian tariff world turning upside down.

Trump calls for 50% tariff on EU, says he’s ‘not looking for a deal’ with bloc

Published Fri, May 23 2025 7:47 AM EDT Updated Fri, May 23 2025 3:30 PM EDT

President Donald Trump on Friday said he is “recommending a straight 50% Tariff on the European Union” after complaining that trade negotiations have stalled.

The steep new import duties would start June 1, Trump wrote on Truth Social.

The EU “has been very difficult to deal with,” Trump wrote of the 27-nation bloc. “Our discussions with them are going nowhere!”

Asked later Friday if he was looking to cut a deal with the EU in the next nine days, Trump said he was not.

“I just said, it’s time that we play the game the way I know how to play the game,” he said during an executive order signing event at the White House.

“I’m not looking for a deal,” added Trump, who frequently praises tariffs as a clutch negotiating tool and a way to bring in federal revenue.

“I mean, we’ve set the deal. It’s at 50%.”

Trump’s initial announcement came less than 30 minutes after he threatened to impose a tariff of at least 25% on Apple’s iPhones if the company does not start manufacturing them in the United States.

U.S. stock futures sank immediately following the posts, which showed the Republican president once again wielding the threat of massive import taxes in response to economic activity he disfavors.

European stock markets fell 2%.

It’s a reversal in momentum for Trump, who recently touted preliminary trade “deals” with China and the United Kingdom and has backed off other tariff proposals. Markets were encouraged by those moves, as investors felt relief from the economic uncertainty and instability Trump’s tariffs had threatened to create.

But Trump “believes that the EU proposals have not been of the same quality that we’ve seen from our other important trading partners,” U.S. Treasury Secretary Scott Bessent said in a Fox News interview Friday morning.

Asked if the EU will be able to negotiate in the nine days before the 50% tariffs kick in, Bessent said, “I would hope that this would light a fire under the EU.”

Meanwhile, the White House view Friday morning was that the stock market was overreacting to Trump’s tariff comments, CNBC’s Eamon Javers reported.

The White House, said Javers, did not interpret the president’s post as a formal statement of policy.

The EU was the second-largest purchaser of U.S. exports in 2022, taking in nearly $351 billion in American goods, according to the Office of the U.S. Trade Representative.

The EU’s main executive body, the European Commission, declined CNBC’s request for comment on Trump’s new tariff threat.

Trump has long accused Europe of taking unfair advantage of the U.S. through trade. He announced a blanket 20% tariff on the EU on April 2 as part of his “reciprocal” tariff plan, though he quickly revised that duty down to 10% for 90 days.

Europe is also dealing with Trump’s sector-specific tariffs, including a 25% levy on all steel and aluminum imports.

“To go to 10% was going to be the highest tariff rate that we had on the world in 90 years. To go to 50% is a completely different order of magnitude,” Chicago Fed President Austan Goolsbee said Friday morning on CNBC’s “Squawk Box.”

“If they’re putting in place tariffs that have a stagflationary impact, which is to say they slowed down output by raising the cost of production while also raising prices, then that’s the Central Bank’s worst situation,” Goolsbee said.

Trump seeks 50% tariff on EU, says he's not looking for a deal

BYD beats Tesla in European EV sales despite EU tariffs in 'watershed moment,' report says

23 May 2025

BYD sold more pure battery electric vehicles in Europe than Tesla for the first time ever last month — a "watershed moment" for the region's car market, according to a report from JATO Dynamics. 

New car registrations data from the automotive intelligence firm shows that BYD's Europe volumes rose 359% in April from last year as the company continues its global expansion efforts.

Over the same period, Tesla reported yet another monthly drop, with total volumes down 49%, JATO said. That follows protests against CEO Elon Musk and the company in the region. 

According to Felipe Munoz, global automotive analyst at JATO, though the difference between the two brands' monthly sales totals is relatively small, the implications of BYD beating out Tesla "are enormous." 

"This is a watershed moment for Europe's car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022," Munoz said. 

JATO added that BYD is also beating well established European car brands across the region, outselling Fiat and Seat in France, for example.

That growth comes even before production begins at its new plant in Hungary, which is expected to become the center of European production operations. 

Tariff shrug

BYD's success in the EU comes despite the economic bloc's imposition of punitive tariffs on battery EVs made in China last October. It attributed the move to unfair trade practices.

The punitive tariffs appeared to be favorable to Tesla, assigning its made-in-China vehicles a 7.8% duty compared with BYD's 17%. Other Chinese EV makers were given tariffs as high as about 35%. The EU also has a standard 10% car import duty.

JATO's report said that while tariffs had an initial impact on the sales of Chinese automakers, the companies have mitigated it by expanding and diversifying their European line-ups with the introduction of plug-in hybrids.

"China is not only the world leader in BEVs; its automakers are global leaders in plug-in hybrid vehicles too," Munoz said.  

Battery EVs run entirely on electricity, while hybrid vehicles combine an electric battery with an internal combustion engine. Hybrid vehicles have not yet been targeted by EU tariffs.

More

BYD beats Tesla in European EV sales despite EU tariffs in 'watershed moment,' report says

Global Inflation/Stagflation/Recession Watch.        

Given our Magic Money Tree central banksters and our spendthrift politicians,  inflation/recession now needs an entire section of its own.

America's most powerful banker Jamie Dimon stuns with warning US faces something worse than recession

23 May 2025

America's most powerful banker has warned that the US economy faces a greater threat than a recession.

JPMorgan Chase CEO Jamie Dimon has warned that the threat of stagflation could still strike the US economy. 

Stagflation is the combination of economic stag-nation and in-flation. Prices continue to soar at the same time as unemployment rises and economic growth slows - a triple whammy of problems. 

Economists consider stagflation, last seen in the US in the 1970s, to be worse than a recession. 

It would send stocks down, hitting 401(K)s and other retirement savings. 

In contrast during a recession, unemployment increases and the economy shrinks - but the silver lining is that there is little or no inflation

'There's a chance that (we'll) have stagflation (in the US),' Dimon told Bloomberg on Thursday. 

Dimon said while he was not making a certain prediction, 'we have to be prepared for something like that.' 

'Global fiscal deficits are inflationary. I think the remilitarization of the world is inflationary. The restructuring of trade is inflationary,' he said during the TV interview.  

At JPMorgan's annual investor's day on Monday, Dimon said that the chances of stagflation returning are probably twice that of what others have projected.

The billionaire also said that markets were showing an 'extraordinary amount of complacency' in the face of the economic threats of Trump's tariffs.

Dimon said the full effect of Trump's aggressive trade policies have yet to be felt. 

Dimon is not alone, with a host of major economists also warning that stagflation could return

'Directionally, it is stagflation,' Mark Zandi, chief economist at Moody's Analytics, warned back in March.

'It's higher inflation and weaker economic growth that is the result of policy - tariff policy and immigration policy.'

This is not the first time Dimon has warned that the US economy is in peril in recent months. 

Last month the banker predicted that the economy was likely headed towards a recession.  

'Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,' Dimon told investors. 

Dimon has run JPMorgan Chase, the largest US bank, for 19 years and is one of the most prominent voices in corporate America.  

The bank, which has prominent retail as well as investment arms, has become the world's biggest and most powerful bank with $4 trillion in assets under Dimon. 

The banker has a net worth of $2.5 billion, according to Forbes.

America's most powerful banker Jamie Dimon stuns with warning US faces something worse than recession

Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section.

A newly discovered type of superconductor is also a magnet

May 22, 2025

Magnets and superconductors go together like oil and water—or so scientists have thought. But a new finding by MIT physicists is challenging this century-old assumption.

In a paper appearing in the journal Nature, the physicists report that they have discovered a "chiral superconductor"—a material that conducts electricity without resistance, and also, paradoxically, is intrinsically magnetic. What's more, they observed this exotic superconductivity in a surprisingly ordinary material: graphite, the primary material in pencil lead.

Graphite is made from many layers of graphene—atomically thin, lattice-like sheets of carbon atoms—that are stacked together and can easily flake off when pressure is applied, as when pressing down to write on a piece of paper. A single flake of graphite can contain several million sheets of graphene, which are normally stacked such that every other layer aligns. But every so often, graphite contains tiny pockets where graphene is stacked in a different pattern, resembling a staircase of offset layers.

The MIT team has found that when four or five sheets of graphene are stacked in this "rhombohedral" configuration, the resulting structure can exhibit exceptional electronic properties that are not seen in graphite as a whole.

In their new study, the physicists isolated microscopic flakes of rhombohedral graphene from graphite, and subjected the flakes to a battery of electrical tests. They found that when the flakes are cooled to 300 millikelvins (about -273 degrees Celsius), the material turns into a superconductor, meaning that any electrical current passing through the material can flow through without resistance.

They also found that when they swept an external magnetic field up and down, the flakes could be switched between two different superconducting states, just like a magnet. This suggests that the superconductor has some internal, intrinsic magnetism. Such switching behavior is absent in other superconductors.

"The general lore is that superconductors do not like magnetic fields," says Long Ju, assistant professor of physics at MIT. "But we believe this is the first observation of a superconductor that behaves as a magnet with such direct and simple evidence. And that's quite a bizarre thing because it is against people's general impression of superconductivity and magnetism."

Ju is senior author of the study, which includes MIT co-authors Tonghang Han, Zhengguang Lu, Zach Hadjri, Lihan Shi, Zhenghan Wu, Wei Xu, Yuxuan Yao, Jixiang Yang, Junseok Seo, Shenyong Ye, Muyang Zhou, and Liang Fu, along with collaborators from Florida State University, the University of Basel in Switzerland, and the National Institute for Materials Science in Japan.

Graphene twist

In everyday conductive materials, electrons flow through in a chaotic scramble, whizzing by each other, and pinging off the material's atomic latticework. Each time an electron scatters off an atom, it has—in essence—met some resistance, and loses some energy as a result, normally in the form of heat. In contrast, when certain materials are cooled to ultracold temperatures, they can become superconducting, meaning that the material can allow electrons to pair up, in what physicists term "Cooper pairs."

Rather than scattering away, these electron pairs glide through a material without resistance. With a superconductor, then, no energy is lost in translation.

Since superconductivity was first observed in 1911, physicists have shown many times that zero electrical resistance is a hallmark of a superconductor. Another defining property was first observed in 1933, when the physicist Walther Meissner discovered that a superconductor will expel an external magnetic field. This "Meissner effect" is due in part to a superconductor's electron pairs, which collectively act to push away any magnetic field.

Physicists have assumed that all superconducting materials should exhibit both zero electrical resistance, and a natural magnetic repulsion. Indeed, these two properties are what could enable magnetic levitation (Maglev) trains, whereby a superconducting rail repels and therefore levitates a magnetized car.

Ju and his colleagues had no reason to question this assumption as they carried out their experiments at MIT. In the last few years, the team has been exploring the electrical properties of pentalayer rhombohedral graphene. The researchers have observed surprising properties in the five-layer, staircase-like graphene structure; most recently, that it enables electrons to split into fractions of themselves. This phenomenon occurs when the pentalayer structure is placed atop a sheet of hexagonal boron nitride (a material similar to graphene), and slightly offset by a specific angle, or twist.

Curious as to how electron fractions might change with changing conditions, the researchers followed up their initial discovery with similar tests, this time by misaligning the graphene and hexagonal boron nitride structures. To their surprise, they found that when they misaligned the two materials and sent an electrical current through, at temperatures less than 300 millikelvins, they measured zero resistance. It seemed that the phenomenon of electron fractions disappeared, and what emerged instead was superconductivity.

The researchers went a step further to see how this new superconducting state would respond to an external magnetic field. They applied a magnet to the material, along with a voltage, and measured the electrical current coming out of the material. As they dialed the magnetic field from negative to positive (similar to a north and south polarity) and back again, they observed that the material maintained its superconducting, zero-resistance state, except in two instances, once at either magnetic polarity.

In these instances, the resistance briefly spiked, before switching back to zero, and returning to a superconducting state.

More

A newly discovered type of superconductor is also a magnet

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

World Debt Clocks (usdebtclock.org)

This weekend’s music diversion.   Approx. 5 minutes.

Johann Baptist Vanhal, Orgelkonzert F Dur I. Allegro moderato

Johann Baptist Vanhal, Orgelkonzert F Dur I. Allegro moderato

This weekend’s tariff and shipping diversion. Approx. 12 minutes.

U.S. BIGGEST PORT COLLAPSE: Port of Los Angeles SHUTDOWN — 2.7 Million Jobs at Risk

U.S. BIGGEST PORT COLLAPSE: Port of Los Angeles SHUTDOWN — 2.7 Million Jobs at Risk - YouTube

Finally, English city names explained. Approx. 26 minutes.

The origin of every English city's name

The origin of every English city's name

With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.

Friedrich August von Hayek

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