Baltic
Dry Index. 1304 +05
Brent Crude 64.81
Spot Gold 3251 US 2 Year Yield 3.98 +0.10
US Federal Debt. 36.842 trillion!!!
There is no cause to worry. The high tide of prosperity will continue.
Andrew Mellon. US Treasury Secretary, 1929.
After Trump’s trade team folded in Geneva to China, US stock casinos soared as if Trump’s trade team had won.
Other stock casinos aren’t so sure. First off, what happens after 90 days? Won’t this capitulation just embolden others? US consumers are still going to pay more for Chinese goods and parts.
Is this another sign of the rise of China and decline of the USA?
Time
will tell, albeit in just 90 days.
Asia-Pacific markets trade mixed after Wall
Street’s massive rally on U.S.-China trade deal
Updated Tue, May 13 2025 12:23 AM EDT
Asia-Pacific markets traded mixed Tuesday,
following Wall Street’s massive rally on the back of a trade
deal between the U.S. and China, which includes a 90-day pause on
tariffs and a drop in reciprocal tariffs by 115 percentage points.
Analysts at Japanese investment bank
Nomura have now upgraded Chinese equities to a “tactical overweight.”
The agreement to temporarily reduce
tariffs “came as a significant surprise for markets, and will likely support
risk positivity in the near term,” Chetan Seth, Asia-Pacific equity strategist
at the bank wrote in a Tuesday note.
“While markets have been expecting some
reduction in tariffs over the past few days, we think this reduction is
much larger than expected and will bring a major relief for global
(including Asian) stocks,” they added.
Nomura trimmed its overweight stance on
India to fund the China upgrade.
Hong
Kong stocks fell sharply, with the Hang Seng Index declining
1.74% and the Hang Seng Tech Index plunging 3.06%. This was a
reversal from the strong gains both indexes logged in the previous session.
Meanwhile, mainland China’s CSI 300 index
was flat.
Indian markets fell at the open with the
benchmark Nifty 50 down
0.34% while the BSE Sensex index lost 0.39%. This is a reversal from the
significant gains in the previous session, when Indian markets posted
their best
one-day gain since February 2021, following optimism over the India—Pakistan
ceasefire.
Over
in Japan, the benchmark Nikkei
225 surged 1.71%, while the broader Topix index advanced 1.28%.
South Korea’s Kospi index was flat while
the small-cap Kosdaq added 1.15%.
In
Australia, the benchmark S&P/ASX
200 rose 0.51%.
U.S. stock
futures fell after all three key benchmarks hit their best day since
April 9, as investors awaited the release of an inflation report.
Overnight
stateside, stocks soared as investors’ fears of a recession in the U.S.,
sparked by a trade war with China, were abated after the two superpowers
arrived at a deal.
The Dow Jones Industrial Average surged
1,160.72 points, or 2.81%, and closed at 42,410.10. The 30-stock index ended
the session near its highs of the day, with buying enthusiasm remaining strong.
Meanwhile, the broad-based S&P 500 popped 3.26% to
end at 5,844.19, giving it gains of over 20% since its April intraday low at
the height of tariff pessimism. The benchmark’s year-to-date losses have now
narrowed to just 0.6%.
The Nasdaq Composite added 4.35%
and settled at 18,708.34, as the details of the trade deal sent technology
stocks with exposure to China — like Tesla and Apple — higher.
Asia
markets live: Stocks trade mixed
European markets set to open in mixed territory as
trade uncertainty lingers
Updated Tue, May 13 2025 12:23 AM EDT
European markets are heading for a mixed
open on Tuesday as uncertainty over the global trade outlook lingers despite a
90-day pause in the tariff spat between the U.S. and China.
The U.K.’s FTSE 100 index is expected
to open 4 points lower at 8,591, Germany’s DAX up 23 points at 23,569,
France’s CAC 3
points lower at 7,834 and Italy’s FTSE MIB 30 points lower at
39,222, according to data from IG.
Global markets rallied on Monday after
news that Washington and Beijing agreed to slash
steep tariffs for 90 days, raising hopes that a burgeoning trade war could
be averted.
Asia-Pacific
markets traded mixed overnight, however, setting the more pessimistic
tone for their European counterparts, as questions remain over what could
happen after the 90-day pause.
Meanwhile, U.S.
stock futures fell in overnight trading as investors await the latest
U.S. inflation reading ahead of producer price index data on Thursday.
European markets will be keeping an eye on
earnings from SoftBank, Tata Motors, Nissan, Honda, Metro Bank and Bayer. Data releases include U.K.
retail sales and unemployment figures. Germany’s ZEW survey of economic
sentiment is also due to be released.
European
markets live updates: stocks, news, data and earnings
Markets Soar After US-China Tariffs Scaled
Back
May 12, 2025 at 11:26 PM GMT+1
Xi Jinping’s decision to stand his ground
against Donald Trump paid
dividends to the Chinese leader Monday. After
two days of high-stakes talks in Switzerland, trade negotiators
from the world’s biggest economies announced a massive if temporary
de-escalation of tariffs, with the US slashing duties on Chinese products to
30% from 145% and Beijing dropping its levy on most goods to 10%.
The US administration began to
retreat on promised levies and make public entreaties to Beijing shortly
after markets nosedived in response to Trump’s “reciprocal” tariff
rollout on April 2. The retaliation that followed the announcement had
taken duties to levels that for many companies effectively blocked trade,
causing widespread uncertainty and fueling warnings of a self-induced US
recession.
The dramatic reduction in tariffs exceeded
expectations in China and sent the dollar and stocks soaring—providing
some much-needed market relief for the US president, who is facing pressure as
inflation looks set to speed
up at home. China equities also surged as the
deal—though only a 90-day delay—ended up meeting nearly all of the Chinese
president’s core demands. The “reciprocal” tariff for China, which Trump
set at 34%, has been suspended—leaving America’s top rival with the same
10% rate that applies to
US allies like the UK.
“This is arguably the best outcome that
China could have hoped for—the US backed down,” said Trey McArver,
co-founder of research firm Trivium China. “Going forward, this will make the
Chinese side confident that they have leverage over the US in any
negotiations.” —Natasha
Solo-Lyons and David
E. Rovella
Markets
Soar After US-China Tariffs Scaled Back: Evening Briefing Americas - Bloomberg
U.S. and China agree to slash tariffs for 90 days
in major trade breakthrough
Published Mon, May 12 2025 3:16 AM EDT
The U.S. and China on Monday agreed to
temporarily suspend most tariffs on each other’s goods in a move that shows a
major thawing of trade tensions between the world’s two largest economies.
The trade agreement means that
“reciprocal” tariffs between both countries will be cut from 125% to 10%. The
U.S.′ 20% duties on
Chinese imports relating to fentanyl will remain in place, meaning total
tariffs on China stand at 30%.
The breakthrough comes after U.S. and
China trade representatives held high-stakes talks in Switzerland over the
weekend.
“We had very productive talks and I
believe that the venue, here in Lake Geneva, added great equanimity to what was
a very positive process,” U.S. Treasury Secretary Scott Bessent said in a news
conference.
“We have reached an agreement on a 90-day
pause and substantially move down the tariff levels. Both sides on the
reciprocal tariffs will move their tariffs down 115%,” Bessent said.
Both China and the U.S. said they will
continue discussions on economic and trade policy.
Investors were buoyed by news of the
tariff reprieve. Stateside, Nasdaq futures pointed to a
3.6% gain, with the S&P 500 futures
higher by 2.8% and Dow up by nearly
1,000 points, or 2.3%.
The ICE U.S. Dollar Index also rose
sharply. The index, which measures the U.S. dollar against a basket of global
currencies, was last up 1.3% to 101.63.
Elsewhere, the pan-European Stoxx 600
index rose by 0.7% during early
morning deals.
Oil prices also popped. International
benchmark Brent crude
futures with July expiry traded over 2.3% higher at $65.38 a barrel, while
U.S. West Texas
Intermediate futures
stood at $62.49, up 2.4% for the session.
‘Keeps the pressure on’
Tai Hui, APAC chief market strategist at
J.P. Morgan Asset Management, said the magnitude of the U.S.-China tariff reduction
was larger than expected.
“This reflects both sides recognizing the
economic reality that tariffs will hit global growth and negotiation is a
better option going forward,” Hui said in a research note.
“The 90-day period may not be sufficient
for the two sides to reach a detailed agreement, but it keeps the pressure on
the negotiation process,” he added.
Hui noted that investors were still
waiting for further details on other trade terms, such as whether China would
relax rare earth export restrictions.
U.S. and China
agree to slash tariffs for 90 days in major trade breakthrough
China sees the U.S. trade deal as a huge
win for Beijing
Published Mon, May 12 2025 3:28 PM EDT Updated
Mon, May 12 2025 6:04 PM EDT
Chinese officials,
influencers and state-run media on Monday were casting the initial trade
agreement and 90-day tariff pause
with the U.S. as a victory and
a vindication of Beijing’s negotiating strategy.
They are arguing that their defiant public
posture worked and was a major reason they were able to strike a deal with
U.S. officials in Switzerland with
relatively few concessions.
“China’s firm countermeasures and resolute
stance have been highly effective,” said a social
media account linked to China’s national broadcaster CCTV.
In the eyes of the Chinese public,
negotiators from Beijing appear to have convinced President Donald Trump’s administration
to roll back most of the 145% tariff rate
that Trump imposed, and slash them to 30%.
In exchange, China pledged to roll back
most of the countertariffs it announced against the U.S.
On social media, Chinese users are touting
the deal. One hashtag, #USChinaSuspending24%TariffsWithin90Days, already has
420 million views on Weibo.
The line refers to a 24% figure cited near
the top of the joint statement Washington and Beijing released.
In total, the 90-day pause drops U.S.
import duties from 145% to 30% on Chinese goods, and Chinese tariffs on
U.S. goods from 125% to 10%.
A Chinese social media user, Chun Feng Yi
Ran, posted: “Our ancestors didn’t cave in, why should we give up what we
have?” The comment now has thousands of likes.
Beijing is also using the trade deal to
try to argue to the world that it is a responsible trading partner, even as
China’s negotiating playbook has often been a point a frustration for the
international business community and trading partners.
More
China
sees U.S. trade deal as win for Beijing
Trump might claim China tariff victory – but this
is Capitulation Day
Heather Stewart Economics
editor
Donald Trump will inevitably claim
Monday’s temporary truce in the US-China trade war as a victory, but financial
markets seem to have read it for what it is – a capitulation.
Stocks were up and bond yields were higher
after the US treasury secretary Scott Bessent’s early morning press conference
in Geneva, where he has been holding talks with China.
As with the UK
“trade deal” last week, the US is not reverting to the status quo before
Trump arrived in the White House.
Instead, tariffs on Chinese goods will
be cut
from 145% to 30% – initially for a 90-day period. In return, China has
cut its own tariffs on US imports to 10%, from the 125% it had imposed in
retaliation against the White House.
That still marks a big shift in the terms
of trade between the two countries since before Trump came to power, but falls
far short of what was in effect a trade embargo.
The two sides have pledged to keep
talking, but there was no reference in the statement put out by the White House
to other gripes it has previously raised about China, including the weakness of
the yuan.
Instead, the statement hailed “the
importance of a sustainable, long-term and mutually beneficial economic and
trade relationship”. The language was rather different to Trump’s Liberation
Day speech, about the US being “looted, pillaged, raped and plundered by
nations near and far”.
In other words, the president has caved.
He may have been swayed by market wobbles but it seems more plausible that dire
warnings from retailers about empty shelves – backed up by data showing shipments
into US ports collapsing – may have strengthened the hands of trade
moderates in the administration.
Confronted with warnings of a shortage of
toys, Trump told reporters that children should be happy with “two
dolls instead of 30 dolls”, and they might “cost a couple bucks more” than
usual. But it is difficult to imagine even this most bullish of presidents
withstanding the attacks that would come his way if he began to be seen as
responsible for Covid-style shortages of key goods in the world’s largest
economy.
More
Trump
might claim China tariff victory – but this is Capitulation Day | Trump tariffs
| The Guardian
In other news.
Lutnick says 10% baseline tariff will stick around
for “foreseeable future”
Published Sun, May 11 2025 10:27 AM EDT
Commerce Secretary Howard Lutnick said Sunday
that the 10% baseline
tariff rate
on imports from other countries is likely to “be in place for the foreseeable
future,” echoing President Donald
Trump’s comments
from days prior.
“We do expect a 10% baseline tariff to be
in place for the foreseeable future,” Lutnick told CNN’s Dana Bash on ‘State of
the Union.’
The commerce secretary rejected the idea
that consumers would take on increased costs caused by the tariffs, insisting
that business and countries will pay.
But data suggests that businesses are
already trying to pass costs onto
consumers,
and consumer
confidence has plunged in the weeks since the president’s April 2
tariff announcement. The prices of some
household items have
also already ticked up.
“Businesses, their job is to try to sell
to the American consumer, and domestically produced products are not going to
have that tariff, so the foreigners are going to finally have to compete,”
Lutnick said.
Lutnick’s comments came days after
Trump said
from the White House that
the 10% tariff rate will likely be the floor for trade deals, and the rate
could be “much higher” for some countries.
The United States reached a trade agreement
with the United Kingdom last week, but the 10% baseline tariff still applies to
most goods imported to the U.S.
Trump also suggested that the 10% baseline
number on products from the United Kingdom is a “low number.”
“They made a good deal,” Trump said of the
United Kingdom.
“Some will be much higher because they
have massive trade surpluses,” he also said.
Trump official
says 10% tariffs will stick around
Nissan job cuts double to 20,000 in overhaul
12 May 2025
Nissan Motor Co. will eliminate 11,000
more jobs than it previously planned, Japan’s national broadcaster reported
Monday, as part of a plan to restructure its flailing business.
The Japanese automaker said in November it
would cut 9,000 positions after weak sales in the US and China led to a 94%
drop in first-half net income. Now, those job cuts will be nearer to 20,000, or
around 15% of the entire workforce, NHK said, citing people that it didn’t
identify.
Nissan declined to comment.
Since November, things have just gotten
worse for Nissan. An outdated product line-up and bloated dealership incentives
have forced it to reduce production capacity and overhaul its executive
leadership and in April, Nissan said it will post a net loss of as much as ¥750
billion ($5.1 billion) for last fiscal year, a record annual deficit.
Nissan is due to announce on May 13 its
full-year results for the 12 months ended March 31.
Nissan job cuts
double to 20,000 in overhaul
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.
Hot
Money Monday: Stagflation’s ghosts are real – Powell admits it and experts say
hedge fast
12
May 2025
For
months, whispers of stagflation circled Wall Street like ghosts in the
corridors – visible enough to spook, but never quite real enough to confront.
But
last week, Fed boss Jerome Powell said the word out loud.
“Stagflation”
isn’t just a tail risk anymore – it’s here, it’s real, and the Fed is not
pretending otherwise anymore.
“The
Fed has just confirmed what we’ve been warning clients about for more than
three months,” said Nigel Green, CEO of financial advisory giant deVere Group.
Green
said the warning lights have been flashing: slower economic growth, higher
inflation and unemployment ticking upwards.
Those
three ingredients, when tossed together in the economic pot, make a bitter stew
called stagflation.
And
this time, Powell pointed the finger squarely at trade policies, specifically,
Donald Trump’s barrage of tariffs.
“When
you weigh rising prices against declining productivity, and then throw in trade
wars, the result is a stagnating economy with no good choices.
“That’s
the definition of stagflation, and now the Fed is saying it, too,” Green added.
The
Fed’s honesty is late, but welcome, Green quipped.
“Investors
can’t wait around for policy clarity from Washington. The time to hedge,
reposition and diversify was yesterday, but the next best time is now.”
More
Hot Money Monday: Stagflation’s ghosts are real – Powell admits it and experts say hedge fast
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.
Argo Expands
Strategy with Graphene Leaders Canada to Explore Graphene-Infused Asphalt
Innovations
Newsfile
Corp. Mon, May 12, 2025 at 8:01 AM
GMT+1
Vancouver,
British Columbia--(Newsfile Corp. - May 12, 2025) - Argo Living Soils Corp.
(CSE: ARGO) (OTCQB: ARLSF) (FSE: 94Y0) ("Argo" or the
"Company") is pleased to announce that, following our May 5, 2025
news release regarding the research and development ("R&D")
agreement with Graphene Leaders Canada Inc. ("GLC"), Argo is now in
discussions to expand its R&D agreement to include the development of
graphene-infused asphalt solutions. This initiative reflects Argo's commitment
to advancing eco-friendly, high-performance materials for industrial
applications.
The
expanded agreement will leverage GLC's advanced graphene nanoplatelet
("GNP") dispersion capabilities alongside Argo's expertise in
sustainable technology to explore the potential of graphene-infused asphalt for
infrastructure applications. The focus will be on research and development to
design and test graphene GNP formulations for asphalt, with independent testing
planned to assess performance. Graphene, a carbon-based nanomaterial known for
its exceptional strength, conductivity, and flexibility, presents significant
advantages for asphalt applications. Successful results could pave the way for
commercial-scale trials.
The
global asphalt market, valued at approximately USD 82 billion in 2023, is
projected to grow at a CAGR of 4.5% through 2030, driven by increasing
infrastructure investments and demand for sustainable construction materials.
Graphene-infused asphalt has the potential to capture a significant share of
this market by offering enhanced durability and reduced environmental impact,
addressing the needs of municipalities, developers, and governments worldwide.
"We
are excited to expand our relationship with Graphene Leaders Canada to explore
the transformative potential of graphene-infused asphalt," said Robert
Intile, CEO of Argo Living Soils Inc. "This project builds on our
commitment to sustainable innovation, aiming to deliver stronger, greener
infrastructure solutions that address the evolving needs of the construction
industry."
About
Argo Living Soils Inc.
Founded
in 2018, Argo Living Soils Corp. is dedicated to pioneering sustainable
solutions in agriculture and construction. With a focus on organic product
development and advanced technologies like biochar and graphene, Argo strives
to reduce global carbon emissions while delivering innovative, eco-friendly
products.
For
further information, please contact:
Robert Intile, CEO
Argo Living Soils Corp.
Email: robert.intile@argolivingsoils.com
Phone: 604-763-4017
Argo Expands
Strategy with Graphene Leaders Canada to Explore Graphene-Infused Asphalt
Innovations
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
The
Great Depression in the United States, far from being a sign of the inherent
instability of the private enterprise system, is a testament to how much harm
can be done by mistakes on the part of a few men when they wield vast power
over the monetary system of the country.
Milton Friedman
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