Thursday, 26 June 2025

Fed’s Powell View. Fed’s Stocks Gift. Did EVs Sink Ship? Amoral NATO.

 Baltic Dry Index. 1665 -16               Brent Crude 67.95

Spot Gold 3335                     US 2 Year Yield 3.74 -0.01

US Federal Debt. 37.025 trillion

US GDP 30.095 trillion.

The older I get the less I listen to what people say and the more I look at what they do.

Andrew Carnegie

Another day and another attempt to rig US stock casinos higher. Cui bono?

In The Hague, Netherlands, the NATO war party promised to increase war spending to five percent by 2035.

In London, the amoral Socialist Government next week, wants to seriously cut disability benefits to the disabled, presumably to buy more N-bombs and F35s.

Down this road lies endless war and the bankruptcy of the Great Nixonian Error of Fiat Money.

Asia-Pacific markets mostly decline as investors weigh easing Middle East tensions

Updated Thu, Jun 26 2025 11:43 PM EDT

Asia-Pacific markets mostly declined Thursday, as investors continued to weigh the ongoing ceasefire between Israel and Iran.

Japan’s benchmark Nikkei 225 rose 1.04% and the Topix added 0.32%.

South Korea’s Kospi was down 1.81%, while the small-cap Kosdaq retreated 2%.

Australia’s S&P/ASX 200 slipped 0.21%.

Hong Kong’s Hang Seng index declined 0.72%, and the CSI 300 fell 0.31%.

U.S. futures were relatively unchanged. S&P 500 futures traded around the flatline, as did Nasdaq 100 futures and futures tied to the Dow Jones Industrial Average.

Federal Reserve Chair Jerome Powell maintained a cautious stance on inflation and tariffs during his second day of Capitol Hill testimony, indicating rate cuts could be considered if the effects prove temporary.

As he did during his testimony Tuesday before the House Financial Services Committee, Powell would not put a timetable on when he thinks further interest rate cuts will be possible, despite the heavy pressure President Donald Trump has exerted to get the Fed to cut rates.

Overnight stateside, the three major averages closed slightly higher. The S&P 500 ended the session near the flatline at 6,092.16 as investors watched to see if the benchmark index could return to its all-time high. The Nasdaq Composite added 0.31% to close at 19,973.55. The Dow Jones Industrial Average slipped 106.59 points, or 0.25%, settling at 42,982.43.

Asia-Pacific stock markets today: Live updates

Stock futures are little changed as S&P 500 nears new record high: Live updates

Updated Thu, Jun 26 2025 8:12 PM EDT

Stock futures were relatively unchanged on Wednesday as the S&P 500 remains within striking distance of its all-time high.

S&P 500 futures traded around the flatline, as did Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average ticked up 6 points.

The moves come after the S&P 500 finished Wednesday’s session flat, while the Nasdaq Composite rose 0.3% and the Dow Jones Industrial Average dropped 106.59 points, or about 0.3%. The three indexes are still on pace for a positive week, and the S&P 500 remains less than 1% from its February record.

But some on Wall Street are skeptical that the recent market momentum will carry on.

“The various macro factors that I’m looking at seem to suggest that there’s no way this situation can continue,” Komal Sri-Kumar, president of Sri-Kumar Global Strategies, said on CNBC’s “Power Lunch” Wednesday, citing the Israel-Iran conflict as well as President Donald Trump’s tariffs and the impact of the “One Big Beautiful Bill Act” on the fiscal deficit.

Tensions in the Middle East seemed to be calming after Trump said Tuesday that a ceasefire between Israel and Iran was in effect. Though the president accused both countries of violating the agreement, saying he’s “not happy” with either of them, the deal has since appeared to hold. The U.S. is planning to meet with Iran next week.

Investors are also gearing up for May’s personal consumption expenditures price index reading, due out Friday morning. Federal Reserve Chair Jerome Powell said Tuesday that its preferred inflation measure is likely to rise to 2.3%, while the core measure that excludes food and energy is expected to tick up to 2.6%. That’s up from the headline reading of 2.1% and 2.5% for the core in April. However, Powell still stressed that the central bank is committed to keeping inflation under control in the face of “uncertain” effects of Trump’s tariffs on the economy.

“You’re going to have a pickup in the rate of inflation … and I think that is going to be reflected during the second half of this year, with yields going up,” Sri-Kumar continued. “That is going to be negative for [the] Nasdaq in particular, and I think [the] S&P is not going to be free from being attacked by that either.”

Elsewhere on the economic front, investors are eyeing weekly jobless claims data, which is slated for release at 8:30 a.m. ET on Thursday.

Wall Street is also looking ahead to other earnings results. Walgreens is set to report before the bell Thursday, and Nike is scheduled for release after the closing bell.

Stock market today: Live updates

Fed Chair Jerome Powell reveals why interest rates haven't been cut

June 25, 2025

Federal Reserve Chair Jerome Powell struck back at President Donald Trump on Tuesday, claiming his sweeping tariff plan is the main reason he has not lowered interest rates. 'Increases in tariffs this year are likely to push up prices and weigh on economic activity,' Powell told members of the House Financial Services Committee.

For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,' the Fed chair testified. Powell has served atop the Federal Reserve since 2018 and has long caught the ire of the president, who has recently nicknamed the banker 'Too Late' Powell for not yet lowering the cost of borrowing.

'We should be at least two to three points lower. Would save the USA 800 billion dollars per year, plus,' Trump said in a late-night social media post ripping Powell ahead of his hearing. The president also called on his GOP lieutenants in Congress to pummel Powell for refusing to lower interest rates.

'I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come.' Several Republican lawmakers took Trump's memo and pressed Powell on why the central bank has yet to lower interest rates this year.

During a pointed questioning from Rep. Bill Huizenga, R-Mich., Powell continued to reiterate that Trump's tariffs have prompted uncertainty over rising inflation. 'The reason we're not is the forecast by all professional forecasters that I know of on the outside and the Fed do expect a meaningful increase in inflation over the course of this year,' he said.

The central bank chairman also conceded that tariffs may not push inflation up to forecasted levels. In that case, the Fed would move to quickly reduce rates, Powell testified. A drastic increase in unemployment could also prompt the bank to lower borrowing costs, he said.

We could see inflation come in not as strong as we expect,' he said. 'And if that were the case, that would tend to suggest cutting sooner.' Rep. Mike Lawler, R-N.Y., slammed the Fed chair for being too late in raising interest rates in 2021 when inflation from COVID-19 began to grip the nation.

More

Fed Chair Jerome Powell reveals why interest rates haven't been cut

Federal Reserve Poised to Hand Wall Street a Big Gift

June 25, 2025 at 10:51 PM GMT+1

Wall Street is poised to receive a big gift courtesy of the Federal Reserve. The central bank unveiled plans to roll back an important capital rule that big banks have complained limits their ability to hold more Treasuries and act as intermediaries in the $29 trillion market. (The Fed’s announcement confirmed proposed changes to the rule first reported by Bloomberg News last week.)

The Fed board voted 5-2 on Wednesday to propose changes to what’s known as the enhanced supplementary leverage ratio, which applies to the largest US banks—like  Bank of America, JPMorgan and Goldman Sachs. The revisions would reduce holding companies’ capital requirement under the ratio to a range of 3.5% to 4.5% from the current 5%. Their banking subsidiaries would see that requirement lowered to the same range from 6%. 

The proposal followed by a few weeks the ascent of Michelle Bowman, President Donald Trump’s pick to be the central bank’s new vice chair for supervision. Bowman’s predecessor, Governor Michael Barr, objected to the plan, which he said would reduce bank-level capital by $210 billion for US global systemically important banks (G-SIB). “Taken together, these changes would significantly increase the risk that a G-SIB bank would fail, orderly resolution would not be possible and the Deposit Insurance Fund would incur higher losses,” Barr said.

Some of the sharpest criticism of the Fed’s proposal has come from Senator Elizabeth Warren, a Massachusetts Democrat who recently wrote a letter to bank regulators. She called the leverage rule a “critical safeguard” that promotes financial stability and warned that the economy already faces risks from Trump’s trade war. David E. Rovella

Federal Reserve Poised to Hand Wall Street a Big Gift: Evening Briefing Americas - Bloomberg

More Labour MPs signal rebellion against Government over welfare reforms

24 June 2025

More Labour MPs have signalled they are willing to rebel over the Government’s welfare cuts after Sir Keir Starmer declared he would “press on” with next week’s vote.

Overall, 134 MPs are now backing an amendment that would effectively threaten the Government’s proposed changes, an Order Paper published by Parliament late on Wednesday indicated.

----Further MPs are thought to be supportive of the motion, but have not signed.

The Government is faced with the prospect of a major revolt when the welfare Bill comes before the Commons in a vote set for July 1.

----Speaking on Tuesday from The Hague, where he is attending the Nato summit, Sir Keir said that a vote on the reforms are “not a confidence vote” but are about “reforming” the system.

Asked if he would offer concessions to placate MPs unhappy with the reforms, he told Sky News: “We’re pressing on with a vote on this because we need to bring about reform.”

----Tory leader Mrs Badenoch said her party would offer support for the Bill but on the condition that the Government agree to take steps that “align with our core Conservative principles”.

She claimed the welfare budget would need to be slashed further, unemployment would need to come down and “no new tax rises in the autumn”.

More Labour MPs signal rebellion against Government over welfare reforms

UK to buy nuclear-carrying fighter jets

25 June 2035

The UK will buy at least 12 F-35 stealth jets that can carry nuclear warheads in the most significant strengthening of its nuclear capability in a generation, the government has said.

Sir Keir Starmer told a summit of NATO allies in The Hague that the new squadron will join an alliance mission that can be armed with US nuclear weapons.

The dramatic move will doubtless draw condemnation and concern from Russia and China.

But it comes at a time of growing global insecurity - and as the prime minister and his European and Canadian counterparts scramble to convince Donald Trump they are serious about bolstering their ability to defend Europe, instead of overly relying on the US.

The US president, a long-standing NATO sceptic, raised questions about whether he would uphold the alliance's founding Article 5 principle - that an attack on one is an attack on all - before he even arrived in the Dutch city last night.

An urgent need to keep Mr Trump on side has prompted NATO allies to agree to increase spending on defence and national resilience to a new target of 5% of GDP by 2035.

More

UK to buy nuclear-carrying fighter jets

In other news.

Cargo ship carrying new vehicles to Mexico sinks in the North Pacific weeks after catching fire

June 24 2025

Anchorage, Alaska (AP) — A cargo ship that had been delivering new vehicles to Mexico sank in the North Pacific Ocean, weeks after crew members abandoned ship when they couldn’t extinguish an onboard fire that left the carrier dead in the water.

The Morning Midas sank Monday in international waters off Alaska’s Aleutian Islands chain, the ship’s management company, London-based Zodiac Maritime, said in a statement.

Anchorage, Alaska (AP) — A cargo ship that had been delivering new vehicles to Mexico sank in the North Pacific Ocean, weeks after crew members abandoned ship when they couldn’t extinguish an onboard fire that left the carrier dead in the water.

The Morning Midas sank Monday in international waters off Alaska’s Aleutian Islands chain, the ship’s management company, London-based Zodiac Maritime, said in a statement.

Zodiac Maritime said it is also sending another specialized pollution response vessel to the location as an added precaution.

The Coast Guard said it received a distress alert June 3 about a fire aboard the Morning Midas, which then was roughly 300 miles (490 kilometers) southwest of Adak Island.

There were 22 crew members onboard the Morning Midas. All evacuated to a lifeboat and were rescued by a nearby merchant marine vessel. There were no injuries.

Among the cars were about 70 fully electric and about 680 hybrid vehicles. A large plume of smoke was initially seen at the ship’s stern coming from the deck loaded with electric vehicles, the Coast Guard and Zodiac Maritime said at the time.

Adak is about 1,200 miles (1,930 kilometers) west of Anchorage, Alaska’s largest city.

The 600-foot (183-meter) Morning Midas was built in 2006 and sails under a Liberian flag. The car and truck carrier left Yantai, China, on May 26 en route to Mexico, according to the industry site marinetraffic.com.

A Dutch safety board in a recent report called for improving emergency response on North Sea shipping routes after a deadly 2023 fire aboard a freighter that was carrying 3,000 automobiles, including nearly 500 electric vehicles, from Germany to Singapore.

One person was killed and others injured in the fire, which burned out of control for a week. That ship was eventually towed to a Netherlands port for salvage.

Cargo ship carrying new vehicles to Mexico sinks in the North Pacific weeks after catching fire

Morning Midas sinks in Pacific: Were EVs to Blame?

Morning Midas sinks in Pacific: Were EVs to Blame? - YouTube

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.

Graduate jobs at ‘weakest level since 2018’ as Reeves’ taxes rattle firms

Wednesday 25 June 2025 6:00 am  

Graduate jobs are now at their “weakest level since at least 2018”, fresh data has suggested, as Chancellor Reeves’ tax hikes on employers have made bosses avoid hiring junior workers

The UK government has made job creation a crucial part of its efforts to grow the economy and improve living standards for Brits after years of stagnation. 

But new data analysis by jobs platform Indeed has suggested that job postings have continued to decline after Reeves’ £20bn hike to employers’ national insurance contributions (NICs) kicked into effect in April. 

Graduate jobs are now down 12 per cent compared to last June, more than double the percentage decline in overall job postings. 

Indeed analysts also said the UK was now the only developed country to have job postings remain below pre-pandemic levels, with levels around 21 per cent below that seen at the beginning of February 2020. 

Job postings were especially low in HR, marketing and media, according to internal analysis, while lower vacancy levels were also recorded in the hospitality and retail sectors. 

AI gains threaten jobs market

Indeed’s data provides somewhat grimmer reading for Treasury officials than that published by the Office for National Statistics (ONS), which said earlier this month that vacancies in the first quarter of this year were 7.4 per cent below the first three months of 2020. 

The ONS also revealed that total vacancies were down 16.9 per cent year-on-year, though Bank of England officials have said they were relying on their own estimates to make judgements on monetary policy given the unreliability of the official stats body’s jobs surveys. 

Indeed also found that businesses were pre-empting radical changes proposed in the Employment Rights Bill, with the share of job postings mentioning zero-hour contracts beginning to fall. 

Fewer firms were offering work-from-home opportunities, though figures remained high including in banking and finance despite widespread reports of bosses’ calls for employees to return to the office. 

Jack Kennedy, senior economist at Indeed, said the job platform’s latest analysis showed the labour market was seeing “continued gradual softening rather than a nosedive”. 

“Despite the UK labour market holding out overall, new entrants like graduates face a challenging time in securing a first rung on the ladder,” Kennedy said. 

“This signals a wider landscape of employers holding onto existing staff, while some observers contend that entry-level roles in professional occupations are particularly exposed to AI displacement.”

More

Graduate jobs at ‘weakest level since 2018’ as taxes rattle firms

Covid-19 Corner

This section will continue only occasionally when something of interest occurs.

COVID-19 protein triggers immune attacks on healthy cells — but a common drug can stop it

Date: June 24, 2025

Source: The Hebrew University of Jerusalem

Summary: Scientists have uncovered a stealthy tactic used by the SARS-CoV-2 virus: one of its proteins can leap from infected cells to healthy ones, effectively tricking the immune system into attacking the body’s own tissues.

A new study reveals that the SARS-CoV-2 nucleocapsid protein can spread from infected to uninfected cells, triggering an immune response that mistakenly targets healthy cells. The research identifies how this viral protein binds to cell surfaces and shows that enoxaparin, a common anticoagulant, can block this harmful interaction, pointing to a potential avenue for treatment. These findings shed light on the mechanisms behind severe COVID-19 complications and immune-driven tissue damage.

A new study involving collaborative efforts of the laboratories of Dr. Alexander Rouvinski, Prof. Ora Schueler-Furman and Prof. Reuven Wiener, led by PhD students Jamal Fahoum and Maria Billan from the Faculty of Medicine at the Hebrew University of Jerusalem, uncovers a surprising mechanism by which the SARS-CoV-2 virus, responsible for COVID-19, might cause immune-mediated tissue damage by targeting cells it has never infected. A fruitful collaboration with clinicians: Dr. Dan Padawer, Prof Dana Wolf and Dr. Orly Zelig and their team members from several departments at Hebrew University -- Hadassah Medical Center provided the complementary clinical data necessary for this work. SARS-CoV-2 infection experiments essential for this research were performed in the recently established high biocontainment national laboratory, Barry Skolnick Biosafety Level 3 (BSL3) National Unit at the Core Research Facility at the Faculty of Medicine of the Hebrew University of Jerusalem.

Published in Cell Reports, the study demonstrates that the virus's nucleocapsid protein (NP), best known for its role in packaging viral RNA inside infected cells, is transferred to neighboring uninfected epithelial cells and attach to their surfaces. Once present on these otherwise healthy cells, NP is recognized by the immune system and is targeted by anti-NP antibodies, which mistakenly label the cells for destruction. This process activates the classical complement pathway, leading to inflammation and cellular damage that might contribute to severe COVID-19 outcomes and complications such as long COVID.

More

COVID-19 protein triggers immune attacks on healthy cells — but a common drug can stop it | ScienceDaily

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.

Modified perovskite solar cells harvest energy from indoor fluorescent lighting

24 June 2025

When you think of solar panels, you usually picture giant cells mounted to face the sun. But what if "solar" cells could be charged using fluorescent lights?

Perovskite solar cells (PeSCs) have emerged as a lower-cost, higher-efficiency alternative to traditional silicon solar cells due to their material structure and physical flexibility. Their large power conversion efficiency rate (PCE), which is the amount of energy created from the amount of energy hitting the cell, makes PeSCs well suited to converting lower light sources into energy.

In APL Energy, researchers from National Yang Ming Chiao Tung University in Taiwan created perovskite solar cells that effectively convert indoor lighting into electrical power.

"The most common solar cells in the market are silicon-based solar panels," said author Fang-Chung Chen. "However, PeSCs can be made thin, lightweight, flexible, and even semi-transparent, whereas silicon panels are rigid and heavy, which limits their use to flat, durable surfaces."

Previous research has shown that PeSCs can reach power conversion efficiencies comparable to silicon solar cells, but with the bonus of being able to work indoors. These PeSCs can be used to charge devices like remote controls, wearable devices, or trackers that can be connected to the internet.

To make a solar cell able to convert indoor light to energy, the researchers needed to tune the bandgap of the composition of the perovskite.

Bandgaps describe the minimum energy necessary for electrons to jump to higher energy levels, and different bandgaps can absorb different light wavelengths.

By adjusting the ratios of the molecules in the solutions used to make the perovskite layers of the solar cells, the researchers were able to achieve an optimal bandgap for absorbing indoor light. This bandgap adjustment is not something that can be done in silicon solar cells.

"The indoor efficiency of PeSCs is higher, meaning that the photovoltaic products can be more suitable for versatile user scenarios, including cloudy outdoor, indoor, and other dim-light environments," said Chen.

"Tuning the bandgap, unfortunately, accompanies a negative effect: It brings defects in the perovskite layers," said Chen. "To compensate for the loss in efficiency, we propose one method for fixing the defects."

Under the one standard sun illumination (close to 12,000 lux), the team's perovskite cells achieved a PCE of 12.7%, which, compared to some of the highest PCEs of silicon solar cells of 26%, isn't much. However, the PeSCs displayed an impressive PCE of 38.7% under 2,000 lux, which is a fraction of the light that comes from the sun on a sunny day and is a similar brightness level to those found in offices.

To Chen's surprise, their strategy for passivating the perovskite layer, which makes it less susceptible to corrosion, also improved the overall PeSC's stability.

"In the beginning, we only expected our approach would improve the device efficiency," said Chen. "Because the poor reliability of PeSCs is a large challenge for their adoption, we hope our proposed method can pave the way toward the commercialization of perovskite solar panels."

Modified perovskite solar cells harvest energy from indoor fluorescent lighting

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

World Debt Clocks (usdebtclock.org)

I'm not in Wall Street for my health.

J. P. Morgan

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