Baltic Dry Index. 2035 +19 Brent Crude 68.81
Spot Gold 3423 US 2 Year Yield 3.8 -0.02
US Federal Debt. 37.137 trillion
US GDP 30.153 trillion.
Term limits would cure both senility and seniority- both terrible legislative diseases.
Harry S. Truman
By coincidence or not, on the day of Fed
Chairman Powell’s speech to a gathering of international banksters in
Washington, President Trump announced a trade deal with Japan.
Japan stocks jump over 3% as Trump announces trade deal; broader Asia markets also rise
Updated Wed, Jul 23 2025 10:46 PM EDT
Asia-Pacific markets opened higher after
U.S. President Donald Trump announced that he had completed a “massive
Deal” with Japan, which set tariffs of 15% on the country’s exports to the
U.S.
Overnight, the U.S. benchmark S&P 500
rose to another record high.
Japan’s Nikkei 225 jumps 3%; here’s how
the yen and JGBs are doing
Japan’s benchmark Nikkei 225 and the Topix
have surged over 3% respectively.
Japan’s 10-year bond yield added
eight basis points to 1.593%, while the 30-year bond yield was up
over 3 basis points to 3.12%.
The Japanese yen last traded at
147.15 against the dollar.
— Lee Ying Shan
China markets rise at the open
Mainland China and Hong Kong stocks opened
higher, with the region largely in the green.
Mainland China’s CSI 300 was up 0.3%, while Hong
Kong’s Hang Seng Index —
which includes major Chinese companies — gained 0.63%.
The Hang Seng Tech Index, which tracks the
largest technology companies listed in Hong Kong, rose 0.73%.
—Lee Ying Shan
Stocks of Japanese automakers soar on
report of lower U.S. tariffs
Shares of Japanese automakers surged after
the U.S. reportedly lowered its tariffs on autos from the country to 15% from
25%, according to the Tokyo’s public broadcaster NHK, citing a Japanese
official.
Stocks of Japan’s Honda jumped 8.42%,
while Toyota climbed
9.97%. Nissan jumped
over 7%, and Mazda Motor
surged over 16%. Mitsubishi Motors popped over 12%.
Stocks of South Korean carmaker Hyundai
also rose over 5% on the announcement, while Kia was up 7.06%.
It is unclear if the reduced rate will be
extended to other Asian automakers.
Read the full report here.
—Lee Ying Shan
Asia
stock market live updates: U.S.-Japan trade deal
US and Japan agree trade deal
Donald Trump announces ‘massive’ deal that
lowers levy to 15% from threatened 25%
22 July 2025
The US has agreed a trade deal with Japan
that will impose 15 per cent tariffs on goods imported into America from the
world’s fourth-largest economy.
The 15 per cent levy is lower than the 25
per cent President Donald Trump had threatened in a letter earlier this month,
but higher than the 10 per cent rate that had been in force while the countries
negotiated.
The higher levies signal that Trump is
willing to keep elevated tariffs on major US allies as he ratchets up his
aggressive trade policy. Dozens of nations face an August 1 deadline to reach a
deal after which Trump has said he will impose higher tariffs.
The US president said Japan would “open”
its markets to American cars and rice, which had been sticking points during
negotiations between the close allies. “
We just completed a massive Deal with
Japan, perhaps the largest Deal ever made,” Trump posted on his Truth Social
platform late on Tuesday. “Japan will open their Country to Trade including
Cars and Trucks, Rice and certain other Agricultural Products, and other
things. Japan will pay Reciprocal Tariffs to the United States of 15%.”
A US official confirmed that the US would
lower the tariff on Japan’s autos and auto parts to 15 per cent.
Japan’s chief negotiator Ryosei Akazawa
said steel and aluminium tariffs of 50 per cent, as well as defence spending
commitments, were not included in the trade deal.Japanese Prime Minister
Shigeru Ishiba said that his country would have auto tariffs reduced to 15 per
cent without any quota on the number of imports. “We have been able to achieve
a reduction in tariffs on automobiles and auto parts without quantitative
restrictions, ahead of the rest of the world,” he said.
The automotive sector is a pillar of the
Japanese economy and makes up the bulk of its $63bn trade surplus with the US.
More
Reaction to U.S. trade deal with Japan
23 July 2025
(Reuters) -President Donald Trump on
Tuesday said the U.S. and Japan had struck a trade deal that includes a 15%
tariff that will be levied on U.S. imports from the country.
In a post on Truth Social, Trump said the
deal would include $550 billion of Japanese investments in the United States.
COMMENTS
KRISTINA CLIFTON, SENIOR ECONOMIST,
COMMONWEALTH BANK OF AUSTRALIA, SYDNEY:
"We don't know all the details yet,
apart from just that he will place a 15% tariff on imports from Japan.
"It's a lower rate than what
President Trump announced on Liberation Day, so to that end, it's a better
outcome than potentially they could've seen. Steel, aluminium, and also cars
are important exports for Japan, so it'll be interesting to see if there's any
specific carve-outs for those."
HIROFUMI SUZUKI, CHIEF CURRENCY
STRATEGIST, SMBC, TOKYO:
"This is good news for the Japanese
economy. However, it alone will not prompt the Bank of Japan to raise interest
rates, and the pressure to buy yen will likely be limited. If anything,
political instability is having more of an impact on the market, and the
pressure for yen depreciation is likely to continue."
Reaction
to U.S. trade deal with Japan
Americans Seem to Be the Ones Paying Trump’s
Tariffs
July 22, 2025 at 11:16 PM GMT+1
Who’s paying for Donald Trump’s
tariffs? So far, it appears to be American
businesses and consumers. General Motors was the latest US company to
disclose how the levies are raising costs, with the automaker saying
Tuesday that the duties dented profits by more than $1 billion as it chose
to absorb the blow. That helps explain why car prices didn’t rise in last
week’s inflation data, while robust price increases for other commonly imported
goods like toys and appliances showed those tariff expenses are indeed
being passed
on to consumers.
GM said it suffered a $1.1 billion profit
hit from Trump’s trade war and revealed
no plan for a near-term fix to return to pre-tariff profit levels. The
automaker said it earned $2.53 per share on an adjusted basis, above the
Bloomberg consensus forecast of $2.33 but short of the $3.06
it made a year ago.
Meanwhile, import prices excluding
fuel were up notably in June, suggesting foreign companies aren’t
shouldering the burden by offering US firms lower prices—challenging the
Republican president’s claims that other countries pay the rate. While customs
duties are giving a significant
boost to US revenues, the data show that those coffers are being
filled domestically.
“The top-down macro evidence seems clear:
Americans are mostly paying for the tariffs,” George Saravelos, global
head of FX research at Deutsche Bank, said in a note Tuesday. “There is likely
more pressure on US consumer prices in the pipeline.” —Jordan
Parker Erb and David
E. Rovella
Americans
Have Been the Ones Paying Trump’s Tariffs: Evening Briefing Americas -
Bloomberg
In Fed Chairman Powell news, his speech, a
dud, was, upstaged by President Trump’s trade deal with Japan.
Top Republican mocked after falling for a 'fake'
Jerome Powell resignation letter
22 July 2025
A Utah Republican
is being raked over the coals for sharing a fake resignation letter, made out
to be from Federal Reserve Chairman Jerome Powell.
GOP Senator Mike Lee shared the fake
letter in a post on X with the caption 'Powell's Out!', before he realized his
mistake and deleted it.
The letter contained several obvious signs
of being fake, including a seal that appears to be AI generated.
It was also addressed to “The President, The White
House, Washington DC,'
and had several oddly placed hyphens in the middle of words.
Lee admitted his error to The
Hill, stating that “There appeared to be one, and it occurred to me seconds
after I posted it that I hadn’t seen it anywhere else, so I deleted it out of
an abundance of caution. I don’t know whether it’s legit or not.”
Still, that momentary lapse in judgement
drew the ire of social media users who took no pity on Lee.
Tim Miller, former communications
directors for Jeb
Bush's Presidential campaign and now a writer for the Bulwark mocked Lee, replying
on X that the post was deleted out of 'an abundance of caution!'
More
Top
Republican mocked after falling for a 'fake' Jerome Powell resignation letter
In other news.
Police Scotland looking to draft in Northern
Ireland cops for Donald Trump's north-east visit
Mon 21 July 2025 at 1:18 pm BST
Police Scotland is looking
to draft in extra officers from Northern Ireland for help during Donald Trump's visit
to Aberdeen this week.
The US President is due to
open a new golf course at his Balmedie resort, and
meet separately with Keir Starmer and John Swinney in the Granite City.
The Police Service of Northern Ireland
(PSNI) has received a request for "mutual aid" amid claims the single
force is under significant pressure ahead of the trip, reports the Daily
Record.
Trump will be in Scotland for five days
from Friday and he is expected to visit both his golf courses in Ayrshire and
Aberdeenshire.
The trip will inspire huge protests and
Police Scotland will deploy its officers to ensure order is maintained.
(NPoCC) and we can confirm that PSNI have
received a request to provide mutual aid to Police Scotland which we are
currently assessing.
"The decision to provide officers
under the mutual aid process will be considered against our own demands,
ensuring that we retain the capacity to respond effectively to local issues and
maintain our own operational competence."
The Scottish Police Federation warned at
the weekend of a strain on resources ahead of the trip, as David Kennedy,
general secretary of the SPF, told the Sunday Mail: "It’s a recipe for
disaster. We don’t have enough cops.
"President Trump is a magnet to
certain groups. There will be protests. And just because the President is in
one place doesn’t mean that’s where the protests will take place. With this
event, it is survival mode. That’s the mentality that will set in."
He added: "We’ll survive but we
shouldn’t have to just survive. They will need plenty of help from the UK.
"All this costs money and Police
Scotland’s budget is already bust. Everybody working longer hours and days has
a knock-on effect for months, if not years."
Police Scotland
looking to draft in Northern Ireland cops for Donald Trump's north-east visit
Air India cockpit recording suggests captain cut
fuel to engines before crash, source says
July 21, 2025
WASHINGTON/SEATTLE (Reuters) -A cockpit
recording of dialogue between the two pilots of the Air India flight that
crashed last month supports the view that the captain cut the flow of fuel to
the plane's engines, said a source briefed on U.S. officials' early assessment
of evidence.
The first officer was at the controls of
the Boeing 787 and asked the captain why he moved the fuel switches into a
position that starved the engines of fuel and requested that he restore the
fuel flow, the source told Reuters on condition of anonymity because the matter
remains under investigation.
The U.S. assessment is not contained in a
formal document, said the source, who emphasized the cause of the June 12 crash
in Ahmedabad, India, that killed 260 people remains under investigation.
There was no cockpit video recording
definitively showing which pilot flipped the switches, but the weight of
evidence from the conversation points to the captain, according to the early
assessment.
India's Aircraft Accident Investigation
Bureau (AAIB), which is leading the investigation into the crash, said in a
statement on Thursday that "certain sections of the international media
are repeatedly attempting to draw conclusions through selective and unverified
reporting." It added the investigation was ongoing and it remained too
early to draw definitive conclusions.
The Wall Street Journal first reported
similar information on Wednesday about the world's deadliest aviation accident
in a decade.
The Federation of Indian Pilots, through
its Indian law firm APJ-SLG Law Offices, sent a legal notice to Reuters about a
July 17 story published by the news agency which referenced the WSJ article.
The notice asked Reuters to desist from
publication of any content "that speculates on the cause of the crash or
attributes fault to any individuals, especially deceased pilots, in the absence
of official confirmation and final report."
Most air crashes are caused by multiple
factors, and under international rules, a final report is expected within a
year of an accident.
A preliminary report released by the AAIB
on Saturday said one pilot was heard on the cockpit voice recorder asking the
other why he cut off the fuel and "the other pilot responded that he did
not do so."
Investigators did not identify which
remarks were made by Captain Sumeet Sabharwal and which by First Officer Clive
Kunder, who had total flying experience of 15,638 hours and 3,403 hours,
respectively.
The AAIB's preliminary report said the
fuel switches had switched from "run" to "cutoff" a second
apart just after takeoff, but it did not say how they were moved.
---- NO SAFETY RECOMMENDATIONS
In an internal memo on Monday, Air India
CEO Campbell Wilson said the preliminary report found no mechanical or
maintenance faults and that all required maintenance had been carried
out.
The AAIB's preliminary report had no
safety recommendations for Boeing or engine manufacturer GE.
More
Air India cockpit
recording suggests captain cut fuel to engines before crash, source says
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.
Tariff
talks may drag on, but no US recession in sight: Ned Davis strategist
July
22, 2025, 11:27:54 AM IST
Ed
Clissold, Chief US Strategist at Ned Davis Research, said the Trump
administration appears to have backed itself into a corner by first announcing
a 90-day pause on trade decisions, then extending it by 30 days, and now
leaving it open-ended.
“If the countries they are negotiating with don’t like the deal, then they can
stand firm,” he said. He believes this approach is likely to continue for a
while and added, “This is probably going to be a story that’s going to be with
us for months and months to come.” The delay in India’s case also reflects this
wider pattern.
Clissold
thinks the economic impact of these trade moves will be small for now. “I think
it will be a slight negative, but probably not enough to cause a recession in
the US,” he said. However, if talks drag on for six to twelve months, they
could start affecting real business data. Companies may avoid starting new
projects due to a lack of clarity on trade rules, which could hinder capital
expenditure and slow growth.
Despite
global uncertainties, Clissold said India remains a strong long-term pick among
emerging markets, thanks to favourable demographics and global sector
alignment. His team maintains at least a market weight, if not slightly
overweight, on India.
The
US economy, in his view, is still on solid ground in the short term, supported
by strong earnings and job creation. But he warned of longer-term risks from
tariffs. “There’s no such thing as a free lunch,” Clissold said, stating that
protectionist policies could make the US economy less competitive over time,
much like what was seen in the 1970s.
Tariff talks may
drag on, but no US recession in sight: Ned Davis strategist - CNBC TV18
UK
borrowing climbs as inflation pushes up debt costs
22
July 2025
LONDON
(Reuters) -Britain borrowed more than expected in June as high inflation added
to the government's debt costs, according to official data that is likely to
add to speculation about the need for fresh tax increases later this year.
Public
sector net borrowing totalled 20.7 billion pounds ($27.88 billion) last month,
the data showed.
Britain's
budget watchdog, the Office for Budget Responsibility, forecast borrowing of
17.1 billion pounds in June when it published its outlook in March.
That
was before a strong inflation reading in April had the effect of pushing up
inflation-linked government bond payments.
Tuesday's
data from the Office for National Statistics showed interest payable on central
government debt was 16.4 billion pounds in June, the second-highest June
central government interest bill since monthly records began in 1997.
Finance
minister Rachel Reeves is expected to raise taxes in a budget statement towards
the end of 2025 in order to remain on track to meet her targets for fixing the
public finances.
UK borrowing
climbs as inflation pushes up debt costs
UK
grocery inflation jumps to 5.2% in four weeks to July 13, Worldpanel says
22
July 2025
LONDON
(Reuters) -British grocery price inflation rose to 5.2% for the four weeks to
July 13, its highest level since January last year, according to data from
market researcher Worldpanel by Numerator, adding to pressure on low-income
households.
The
figure is up from 4.7% in last month's report.
Britain
is struggling with persistently high inflation, as supermarkets face rising
staff wages, new employer taxes and regulatory costs, even as commodity prices
climb.
Worldpanel
by Numerator, which formerly published the data under the name Kantar
Worldpanel, said just under two-thirds of households say they are "very
concerned" about the cost of their groceries, and are switching to
supermarket own-label products.
Inflation
in Britain is the highest of any major advanced economy and is around one
percentage point more than in the United States or the euro zone.
Grocery
sales in value terms grew 5.4% year-on-year over the four weeks, helped by warm
weather which boosted ice cream and sorbet sales by 33%, while sales of iced
coffee and strawberries also jumped.
Sales
at Tesco, the country's biggest supermarket, increased by 7.1% in the 12 weeks
to July 13 compared to the same period last year, extending its market share to
28.3%, while No.2 player Sainsbury's sales gained 5.3%.
No.3
grocer Asda remained the industry laggard with a sales decline of 3%, outshone
by online specialist Ocado and discounters Lidl and Aldi, which showed sales
growth of 11.7%, 11.1% and 6.3% respectively in the period.
More
UK grocery
inflation jumps to 5.2% in four weeks to July 13, Worldpanel says
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.
Today, a growing fire problem of the
21st century.
Moment
raging inferno engulfs block of flats after overcharged e-bike battery bursts
into flames
22 July 2025
A raging inferno ripped
through a block of flats in west London after
an overcharged e-bike battery caught alight.
Residents in Hanwell
evacuated themselves at 6pm on July 19 after spotting the blaze from their
windows.
Neighbours stopped outside to
stare as the blaze took over the flat, while others shouted from their own
balconies at people trying to go in.
As the building went up in
flames, concerned residents in a neighbouring block told people to 'get out'
and warned them the e-bike 'can
explode anytime'.
Some residents say they've
been left traumatised by the incident - after having a 'lucky escape.'
The resident who filmed the
footage, 46-year-old journalist Artur Kieruzal, said: 'People who lived in the
block opposite saw the fire from their windows.
'At first, people thought it
was just fireworks - because it sounded exactly the same.
'They were shocked to see the
e-bike battery had literally exploded.'
People who lived in the block
of flats, including a 44-year-old mother-of-two, immediately evacuated
themselves.
The mother, who does not wish
to be named, said: 'We heard an explosion that sounded like fireworks.
'My son [11] ran out to me
and said: 'The house is burning.'
'I went out onto the terrace
and saw thick, black smoke - my husband [44] and I grabbed our children and
ran.
'We're on the fourth floor -
we couldn't see through the smoke, and we had to make our way down four flights
of stairs with children aged six and 11.
'We thought we could be
engulfed in flames at any moment, so we shouted: 'Fire, fire, everybody get
out,' to our neighbours.'
----The London Fire Brigade confirmed the source of
the blaze to be an e-bike battery after putting it out.
More
Moment
raging inferno engulfs block of flats after overcharged e-bike battery bursts
into flames
Fire breaks out on Virgin Australia plane mid-flight likely due to
power bank
22 July 2025
A fire broke out on a Hobart-bound Virgin Australia flight mid-air reportedly from a passenger’s power bank
inside the overhead cabin.
Flight VA1528, which departed from
Sydney, was beginning its descent into Hobart about 9am on Monday when the fire
started in an overhead locker, according to reports.
The cabin crew reportedly found a
lithium battery on fire after they opened the overhead compartment following
complaints of a smell of smoke. Passengers told local media that flames leapt
out of the locker, which triggered panic and prompted some travellers to jump
out of their seats.
The crew extinguished the fire before
landing and removed the bag once the plane landed.
The plane landed safely at Hobart
Airport after the incident, a Virgin Australia spokesperson
said in a statement. “All guests disembarked the aircraft, as per standard
operating procedures,” the spokesperson said.
"Safety is always our highest
priority. We appreciate the swift and professional response of our flight and
cabin crew, as well as the support of Airservices Australia firefighters."
The crew members were assessed by
paramedics upon landing.
Matt Cocker, the chief operating officer
of Hobart Airport, said one person received medical attention for suspected
smoke inhalation. “The outbound Virgin flight back to Sydney is currently
delayed; however, all other operations at Hobart Airport are running as usual,”
he said.
A series of incidents globally involving
lithium battery products, including power banks, overheating on planes, have
prompted authorities to tighten rules on power banks. In January this year, South Korea said that a spare
power bank was the possible cause of a fire that had engulfed a Busan Air
flight to Hong Kong.
Aviation rules generally say power banks
should be carried in cabin baggage, but increasingly airlines are banning their
use on board and say they must be kept within view to spot any problems.
Lithium batteries in devices
such as laptops, mobile phones, electronic cigarettes, and power banks can
produce smoke, fire or extreme heat when manufacturing faults or damage cause
them to short-circuit. They are a growing concern for aviation safety as
passengers carry more battery-powered items on flights.
Last year, the US Federal Aviation
Administration recorded three incidents of lithium batteries overheating on
planes every two weeks globally compared to just under one a week in 2018.
The Australian Competition and Consumer
Commission witnessed a 92 per cent increase in reported incidents involving
lithium-ion batteries in 2022, according to the Civil Aviation Safety
Authority.
Fire breaks out on Virgin Australia plane mid-flight likely due to power
bank
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
I
remember when I first came to Washington. For the first six months you wonder
how the hell you ever got here. For the next six months you wonder how the hell
the rest of them ever got here.
Harry
S. Truman
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