Baltic
Dry Index. 1418 +65 Brent
Crude 64.36
Spot Gold 3315 US 2 Year Yield 3.89 -0.03
US Federal Debt. 36.925 trillion US GDP 30.045 trillion.
I've dealt with politicians my entire life. You never make a bad deal with a politician. They're so easy.
Donald Trump
In doubling his 25 percent tariff on imported steel and aluminium from June 4th, President Trump broke his own 90 day truce in the tariff wars, provoking likely retaliation from the EU and China.
The road back to the 1930s just got a lot shorter.
Fifty percent tariffs on steel and aluminium will impact US auto prices and US beer sold in cans.
Later today in the District of Crooks, Fed Chairman Powell gets to set out his take on the latest developments in the tariff wars.
On Friday, the
Bureau of Lying Labor Statistics publish the US jobs report for May.
All in all, an interesting summer week.
Asia-Pacific
markets trade mixed after Trump says he plans to double steel tariffs to 50%
Updated
Mon, Jun 2 2025 11:51 PM EDT
Asia-Pacific
markets traded mixed after President Donald Trump told U.S. steelworkers late
Friday that he will double tariffs on steel imports to 50%, effective from
Wednesday.
Japan’s
benchmark Nikkei 225 fell
0.89% and the Topix declined 0.65% at the open. South Korea’s Kospi added 0.16% while the
small-cap Kosdaq traded flat.
Australia’s S&P/ASX 200 was also
unchanged at the open.
Hong
Kong’s Hang Seng index declined
1.66%.
China,
Malaysia and New Zealand markets are closed for the holidays.
“We’re
going to bring it from 25% to 50%, the tariffs on steel into the United States
of America,” Trump said during remarks at U.S. Steel’s Irvin Works in West
Mifflin, Pennsylvania, adding that the steep tariffs would “further secure the
steel industry.”
Trump
also posted on Truth Social that the steel tariffs will start on June
4.
U.S.
stock futures fell as Wall Street looks to the start of a new month of trading
following a strong performance in May. S&P 500 futures traded
down 0.3%, along with Nasdaq-100
futures. Futures tied
to the Dow Jones Industrial Average also declined 108 points, or 0.3%.
Last
Friday, the three major averages closed mixed. The S&P 500 was little
changed on Friday to close out a big winning month, inching down by 0.01% to
end at 5,911.69. The Nasdaq
Composite slid 0.32% to 19,113.77, while the Dow Jones Industrial Average added
54.34 points, or 0.13%, to finish at 42,270.07.
Asia-Pacific markets live: Trump steel tariffs, Indonesia inflation
EU ‘prepared to
impose countermeasures’ after Trump doubles steel tariffs to 50%
Published
Sat, May 31 2025 11:03 AM EDT Updated Sat, May 31 2025 12:11 PM EDT
The European Union on Saturday
criticized President Donald
Trump’s move to double
tariffs on steel imports, warning that it “undermines” efforts to reach a
“negotiated solution” in the ongoing trade war.
“We
strongly regret the announced increase of U.S. tariffs on steel imports from
25% to 50%,” an EU spokesperson said in a statement to NBC News.
“This
decision adds further uncertainty to the global economy and increases costs for
consumers and businesses on both sides of the Atlantic,” the spokesperson
continued.
The
spokesperson added that the EU is “prepared to impose countermeasures,
including in response to the latest U.S. tariff increase.”
The
United Steelworkers union (USW) also criticized Trump’s announcement and said
it is a “direct attack on Canadian industries and workers.”
“Thousands
of Canadian jobs are on the line and communities that rely on steel and
aluminum are being put at risk,” Marty Warren, United Steelworkers
National Director for Canada, said in a statement.
“Canada
needs to respond immediately and decisively to defend workers.”
Trump on
Friday announced that he planned on doubling
tariffs on steel imports to 50% from 25%, increasing the pressure on
manufacturers dependent on industrial metals for production.
The new
import duties are set to go into effect June 4.
----The EU, which said that it had paused its countermeasures against the U.S. on
April 14 “to allow time and space” for negotiations, said it is prepared to
instate those measures “if no mutually acceptable solution is reached.”
“The
European Commission is currently finalizing consultations on expanded
countermeasures,” the spokesperson said. “If no mutually acceptable solution is
reached, both existing and additional EU measures will automatically take
effect on 14 July — or earlier, if circumstances require.”
More
EU
responds Trump raising steel tariffs to 50%
China counters
Trump’s accusations of Geneva deal violations, says U.S. undermining consensus
Published
Sun, Jun 1 2025 11:00 PM EDT
China on
Monday refuted Washington’s claims that it had broken the Geneva trade
agreement, instead accusing the U.S. for breaching deal terms, signaling talks
between the worlds top two economies have taken a turn for the worse.
Trade
frictions between Washington and Beijing have flared up after a hiatus following
a meeting between U.S. Treasury Secretary Scott Bessent and his Chinese
counterpart He Lifeng in Geneva, Switzerland, that had led them to suspend most
tariffs for 90 days.
The Trump
administration has ratcheted up export
restrictions on semiconductor design software and chemicals to China,
while announcing it would revoke visas for Chinese students, drawing ire from
Beijing.
Those
steps “seriously undermine” the deal reached in Geneva, a Chinese commerce
department spokesperson said, while vowing that Beijing would take
measures to safeguard its rights and benefits, if the U.S. presses ahead with
actions that “damage China’s interests.”
China has
kept a firm grip on its rare earths exports, contrary to Washington’s
expectations. Chinese state media in an article Monday touted coordinated
efforts across the nation on scrutinizing and curbing illicit mining and
exporting of critical minerals.
Beijing
is “comfortable taking an extremely firm stance in these negotiations” and
“sees no reason to roll over,” said Stephen Olson, visiting senior fellow at
Yusof Ishak Institute in Singapore.
“It is
well understood in Beijing that any deal reached with the U.S. will only buy
some short-term peace, not the end of the story,” Olson added, citing Trump’s
tendency to disregard any agreements he has signed.
The U.S.
government has continued to “unilaterally provoke new economic and trade
frictions, increasing the uncertainty and instability in the bilateral economic
and trade relations,” the Chinese spokesperson said.
Last
Friday, U.S. President Donald Trump accused China of violating its preliminary
trade agreement with the U.S. In a social media post, Trump wrote, “China, perhaps not
surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for
being Mr. NICE GUY!”
The
accusations were “seriously contrary to the facts,” the Chinese spokesperson
said Monday, claiming that Beijing had “strictly implemented and actively
upheld” the agreements, citing its steps to cancel and suspend certain tariff
and non-tariff measures announced in April in response to Trump’s “reciprocal”
tariffs.
Bessent
said in a Fox News interview last week that bilateral trade
talks were “a bit stalled,” requiring the two countries’ leaders to
speak directly.
On
Sunday, National Economic Council director Kevin Hassett suggested that Trump
and China’s President Xi Jinping could have a
conversation about trade as soon as this week.
“A lot
more detailed talks are necessary [for both sides] to come to a more stable
agreement,” said Bert Hofman, professor at the East Asian Institute at the
Nationa University of Singapore, while noting the intrinsic differences between
the two governments are hampering progress with a top-level call.
“The U.S.
side seems very keen on a Trump-Xi meeting or phone call. This caters to Mr.
Trump’s desire to be seen as the master dealmaker. In contrast, the Chinese
tradition is the opposite: leader’s meeting or call should take place
once lower level officials have reached major agreements, with few if any
points outstanding,” Hofman said.
More
China
says U.S. undermined Geneva trade deal after Trump accusations
In other
news.
Fears of a US recession force ultra-wealthy to
bail on rentals in popular summer hotspot
31 May 2025
The rich aren't biting this year —
sparking concerns about the state of the economy.
The super-wealthy, who
flock to the Hamptons every
summer to live in the lap of luxury, aren't spending tens of thousands per
month to do so anymore.
A rental crisis has hit the Eastern end of
Long Island, as mansion rentals are down 30 percent this year, according
to CNBC.
And the luxury rental market that is
usually booked every summer doesn't show any signs of improving.
New York City residents —
who make up the majority of Hamptonites — will likely miss their infinity
pools, tennis courts, and ocean views.
For ultra high-end rentals, brokers say
their business is down between 50 percent and 75 percent.
While some people may simply be holding
out for better deals, brokers say renters are concerned about economic
instability.
'People are holding on to their money,'
said Enzo Morabito, head of the Hamptons-based Enzo Morabito Team at Douglas
Elliman. 'They don't like uncertainty.'
For example, one palatial seven-bedroom
estate in Bridgehampton, which normally rents for $350,000 from July 20 through
Labor Day, is still sitting empty, CNBC reported.
Another 11,000-square-foot mansion in
Bridgehampton has slashed its summer price tag from $450,000 to $375,000 in a
desperate bid to lure renters.
Experts say some would-be renters are
simply holding out for last-minute bargains or have been turned off by the late
season frost in the area.
But brokers warn there's deeper trouble.
Economic jitters, a turbulent
stock market,
and Donald
Trump's tariffs are
forcing wallets shut.
The crisis marks a sharp reversal from
January and February, when rental inquiries were flying in.
But by spring — and with the arrival of
tariff chaos — it was nothing but crickets.
Luxury broker Gary DePersia of My Hampton
Homes says what he's seeing is unprecedented, and that usually, the best
homes go early.
'This year, I have great rentals available
in every town, from Southampton to Montauk,' he says.
Some nervous landlords have started
slashing prices by up to 20 percent.
They're also offering concessions like
shorter stays instead of full-summer commitments.
Morabito warns that homeowners who rely on
summer rentals in order to pay a year's long mortgage may now be rethinking
their investments.
More
Fears of a US
recession force ultra-wealthy to bail on rentals in popular summer hotspot
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.
Covid-19
Corner
This section will continue only occasionally when something of interest occurs.
New
Covid variant NB.1.8.1 spreads globally: Impact, symptoms and travel
implications
31
May 2025
A
new COVID-19 variant called NB. 1.8.1 is stirring concern worldwide with a
surge in cases prompting the World Health Organisation (WHO) to label it as a
"variant under monitoring". Despite the risk to health being low,
experts remain vigilant due to increased infections and hospitalisations in
areas where NB.1.8. 1 is prevalent.
Identified
initially on January 22, 2025, NB. 1.8.1 is a derivative of the Omicron strain.
Fast forward to May 18, this variant has been detected in 22 nations, with 518
genetic sequences now logged in the GISAID database, reports Wales
Online.
Globally, NB 1.8. 1 accounts for 10% of all recorded COVID-19 infections - a
steep rise from a mere 2.5% reported only a month prior.
NB
1.8. 1 has become predominant in Hong Kong and China, with occurrences noted in
other areas including eastern Mediterranean hotspots like Egypt and locations
in South East Asia such as Thailand and the Maldives. Moreover, the Centre of
Disease Control (CDC) in the US has identified cases spanning New York,
California, Arizona, Ohio, Washington, and Rhode Island.
Are
there reports of NB. 1.8.1 within Wales?
This
year, the most prevalent variants in Wales have been the XEC strains, including
XEC. 2 and XEC.4. These have made up between 20% and 70% of all samples
sequenced in Wales each week since December last year. Other frequently seen
variants include the KP. 2 variant that was widespread in December last year,
the LF.7 variant seen sporadically throughout the year, and the MC variants,
which encompass the MC. 10, MC.13 and MC. 1 subvariants.
There
have been instances of the NB. 1 variant sequenced in Wales, but these have
only been detected a handful of times over three weeks out of the last 21.
Should
you be concerned?
According
to the World Health Organisation (WHO), the global health risk from the NB.
1.8.1 variant is low. While some countries are witnessing an increase in
hospital visits linked to this variant, there's no evidence to suggest it
causes more severe illnesses than recent variants.
More
New Covid variant
NB.1.8.1 spreads globally: Impact, symptoms and travel implications
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.
Porsche
halts sale of EV over battery fire fears
31 May 2025
Porsche has ordered dealers
to stop selling one of its electric models amid fears that the car will catch
fire.
The first-generation Taycan –
a model blighted by a string of safety malfunctions since its launch six years
ago – has been taken off the market.
It is understood Porsche
fears “a batch” of the high-end sports cars have a fault within their battery
packs.
----The Taycan, which was Porsche’s first
mass-produced electric vehicle (EV), has been subject to a dozen safety recalls
in the past four years, including brake, suspension and welding defects.
Orders to halt sales last
week are understood to relate to a previous recall issued in November by the
Driver and Vehicle Standards Agency (DVSA).
The gremlin involves a
potential short circuit within the Taycan’s battery, which “could lead to
thermal events and later to a fire in the vehicle”.
Porsche wrote to its official
used car dealers ordering them to immediately take a number of the affected
Taycan models off sale, according to Car Dealer Magazine.
A Porsche spokesman said:
“Enhanced battery monitoring software is anticipated to become available for
first generation Taycan models towards the end of June. With its imminent
arrival, we’ve advised our retail partners not to sell a small, specific batch
of first generation Taycan models until the software update is live.”
A slump in sales
In September 2023, a £200,000
Taycan was reported to have burst into flames in the middle of a busy street in
the city of Chongqing, south-western China.
Global sales of the
troublesome model plummeted 49 per cent last year – a slump the German
manufacturer blamed on the Taycan’s mid-cycle facelift and a slower-than-planned electric
uptake.
UK owners impacted by the
latest fire safety issue have been sent letters detailing the problem. A letter
seen by The Telegraph states: “Cases have come to light in which a short
circuit within the high-voltage battery has occurred ... subsequently causing
the vehicle to catch fire.”
More
Porsche halts sale of EV over battery fire fears
E-bikes drive
lithium-ion battery fire increase
28 May
2025
There
has been a 93% surge in lithium-ion battery fires between 2022 and 2024, new
research suggests, with e-bikes driving the increase.
It
means that UK fire brigades are now tackling at least three lithium-ion battery
fires a day, with e-bikes linked
to more than a quarter (27%) of incidents in 2024.
The
data, collected by QBE Insurance from Freedom of Information (FOI) requests to
UK fire services in March 2025, showed that e-bikes accounted for 362 fires in
2024, doubling from 181 in 2022.
Fires
involving electric scooters increased by 32% from 118 in 2022 to 156 in 2024,
while fires involving electric mobility scooters rose by 20% from 25 in 2022 to
30 in 2024.
Meanwhile,
between 2022 and 2024, fires involving electric cars rose by 77% (131 to 232),
with the number of electric vehicles (EVs) on the road more than doubling
during the same period.
Lithium-ion
battery fires are the result of “thermal runaway”, where batteries start to
irreversibly overheat, usually due to impact damage, over-charging or
over-heating.
QBE is
calling for improvements to lithium-ion battery safety, because the fires burn
hotter, faster and behave more unpredictably than ordinary combustion fires,
increasing the risk of injury to people and damage to property.
In
addition, it says that many people still do not know how to manage these
emerging technologies and devices safely in their homes or businesses.
Adrian
Simmonds, practice leader for property risk solutions at QBE Insurance, said:
“Lithium-ion battery fires continue increasing at a worrying pace.
“These
fires burn differently, they take longer to tackle, typically need ten times
more water to put out and are often more harmful to the surrounding
environment.”
Simmonds
explained that, while QBE supports the adoption of electric-powered transport,
it is also calling for “stricter regulation”.
For
instance, Simmonds said: “The UK should stop the sale of rogue e-bikes and
other unregulated devices. This could be done in the Product Regulation and
Metrology Bill, which is going through Parliament.
“In
the meantime, consumers should purchase e-bikes and e-scooters from reputable
companies, so retailers that show they take quality and compliance seriously
with a genuine CE mark.
“Raising
awareness around safe charging, use and disposal of lithium-ion batteries is
critical to keeping people and property safe.”
London
accounted for almost a third of all lithium-ion battery fires in the UK (31%)
and nearly half of all e-bike-related fires (49% or 178 incidents) in 2024.
More
E-bikes drive
lithium-ion battery fire increase
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
A
little more moderation would be good. Of course, my life hasn't exactly been
one of moderation.
Donald Trump
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