Monday, 18 August 2025

A Heartless Cruel World. Trade Instability. The Jackson Hole Junket.

Baltic Dry Index. 2044 +05            Brent Crude 65.89

Spot Gold 3354                  US 2 Year Yield 3.75 +0.01

US Federal Debt. 37.245 trillion

US GDP 30.208 trillion.

It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy...What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.

Adam Smith. The Wealth of Nations. 1776

Someone send a copy to President Trump.

Not much need for my input this morning, the articles below speak loudly for themselves.

Today’s political focus will be on the meeting between President Trump and Zelensky. A gaggle of Europe’s warmongers are in Washington to support more relentless NATO proxy war in Ukraine. How many more dead Ukrainians will satisfy them? For what?

The global stock casinos have been totally indifferent to the Ukraine war and will likely stay that way.

The US Treasury market will be focused on the Fed’s upcoming Jackson Hole Junket. Will Fed Chairman Powell use the junket to hit back at President Trump.

Asia-Pacific markets mostly rise as investors await details of U.S.-Ukraine talks

Published Sun, Aug 17 2025 7:58 PM EDT

Asia-Pacific markets mostly rose Monday , after the U.S.-Russia summit concluded without a ceasefire.

Japan’s Nikkei 225 benchmark advanced 0.65%, while the broader Topix index added 0.53%.

In South Korea, the Kospi index fell 1.25%, while the small-cap Kosdaq declined 1.52%.

Hong Kong’s Hang Seng Index moved up 0.19% while mainland China’s CSI 300 increased by 0.34%.

Meanwhile, Australia’s S&P/ASX 200 briefly hit an intra-day high of 8,960 and was last seen up 0.14%.

Over in Singapore, non-oil domestic exports shrank 4.6% in July from the year before, worse than the 1.8% contraction penciled by economists polled by Reuters.

July’s reading comes after a revised growth rate of 12.9% in June, data from Enterprise Singapore showed Monday.

U.S. equity futures ticked up in early Asia hours on hopes for rate cuts by the U.S. Federal Reserve, which fueled a winning week on Wall Street.

The S&P 500 slipped on Friday after hitting a record high, as investors took some gains off the table after a strong week.

The broad market index settled down 0.29% at 6,449.80. The Nasdaq Composite shed 0.40% to end the week at 21,622.98. while the Dow Jones Industrial Average outperformed, rising 34.86 points, or 0.08%, to close at 44,946.12, thanks to a 12% jump in UnitedHealth.

Asia markets mixed as investors await details of U.S.-Ukraine talks

Stock futures tick higher following back-to-back winning weeks: Live updates

Updated Mon, Aug 18 2025 12:19 AM EDT

Stock futures traded slightly higher early Monday after hopes for lower interest rates fueled a winning week on Wall Street.

Dow Jones Industrial Average futures edged up 57 points or 0.13%. S&P 500 futures and the Nasdaq 100 futures were up 0.14% and 0.21%, respectively.

Sunday night’s action comes after the three major averages notched their second straight positive week. The Dow climbed 1.7%, while the S&P 500 and Nasdaq Composite rose 0.9% and 0.8%, respectively. It was also the fourth week of gains out of the last five for the S&P 500 and Nasdaq.

Small-cap stocks outperformed last week, jumping more than 3% as investors bet on forthcoming rate cuts from the Federal Reserve.

Ross Mayfield, investment strategist at Baird Private Wealth Management, also pointed to the S&P 500 Equal Weight Consumer Discretionary index hitting an all-time high as a sign that tariff-driven economic fears may be overblown.

“With the market’s message quite upbeat ... it raises the question of whether the conventional wisdom about a weakening U.S. consumer and potential stagflation is missing the mark,” he wrote in a Friday note.

The Fed will continue to be in focus this week as central bank members travel to Jackson Hole, Wyoming, for the annual economic policy symposium. Investors will be monitoring the event for clues about the future path of rates. Fed funds futures are pricing in a nearly 85% likelihood that the central bank cuts rates at its next policy meeting in September, according to CME’s FedWatch tool.

Beyond economic policy, traders will be monitoring earnings reports due over the course of the week as the season winds down. Big-box retailers, including Home DepotLowe’sWalmart and Target, are among the major companies slated to release results this week.

Of the more than 92% of S&P 500 companies that have already reported this quarter, almost 82% have surpassed Wall Street’s expectations, according to FactSet.

Stock market today: Live updates

Wall Street Week Ahead

Aug. 17, 2025 6:20 AM ET

Wall Street's focus this week will be on the annual Jackson Hole Economic Policy Symposium to be held from August 21 to 23. Market participants will also gear up for a deluge of quarterly results from retail companies. Meanwhile, Russia and Ukraine developments will continue to grab eyeballs, with the latter nation's President Volodymyr Zelenskyy set to meet U.S. President Donald Trump on Monday.

The Jackson Hole gathering will see some of the world's most well-known central bankers, economists, and financial experts convene in Kansas City. The theme this year is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy." With the Federal Reserve's dual mandate of price stability and maximum employment coming under pressure after concerning jobs and inflation data this month, market participants will be watching the symposium keenly for any clues on the central bank's future actions.

Turning to the earnings calendar, retail giants Walmart (
WMT) and Home Depot (HD) will headline the week, along with smaller rivals Target (TGT) and Lowe's (LOW).

In terms of economic data, investors will be receiving the minutes of the Fed's July monetary policy committee meeting on Wednesday, followed by S&P flash PMIs on Thursday.

Wall Street Week Ahead | Seeking Alpha

Not in the cards: Why some suspect stable trade may not follow Trump’s tariff deals

Published Sun, Aug 17 2025 8:44 AM EDT

The White House has signed a number of notable trade deals in the months since President Donald Trump slapped sharply higher tariffs on imports in early April. But some on Wall Street are cautioning that turmoil surrounding relations between the U.S. and its major trading partners is far from over.

“Our views have been at odds with the investor consensus all year – and they still are,” Andy Laperriere, head of U.S. policy at Piper Sandler, wrote in a report this summer. “The emerging narrative is that even though tariffs are high, we now have deals that will provide stability in trade policy. Therefore, economic actors can adjust to the new reality and move on,” he said. In his firm’s opinion, however, “trade stability is not in the cards.”

Trump’s “reciprocal” tariffs went into effect on Aug. 7. The president had announced the sweeping levies back on April 2, and their initial size sent stocks reeling before a series of walk-backs from the White House eased investors’ concerns. Stocks have since recovered these losses and gone on to score record highs.

Lately, investors have been betting that Trump won’t implement the most draconian of his trade plans, in what has come to be known as the TACO trade, short for “Trump Always Chickens Out.” But the duties that Trump announced in early April have in large part taken hold. 

---- “One of the things that I think is interesting, that I think is underappreciated is that ‘liberation day’ mostly arrived,” Laperriere said during a webinar earlier this month. “When you look at our major trading partners, most of what was put on the board on April 2 is on the board now.”

Catalysts for instability

Trump’s tariffs have faced significant legal challenges, with a federal appeals court judge seeming skeptical in late July of the president’s claim that he has the authority to impose new tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA), a law that grants the president authority to regulate international commerce in response to a national emergency. Trump later warned U.S. courts against blocking his tariff policy.

With the ongoing litigation and unsettled backdrop, uncertainty around the future of tariffs and trade persists.

More

Why some suspect stable trade may not follow Trump's tariff deals

'Just baffled': Economist questions how Trump claims his plan is 'a win for America'

August 16, 2025

Natasha Sarin, president and co-founder of The Budget Lab at Yale, says she bristles at the thought of President Donald Trump touting his recent E.U. trade deal as a win.

“The idea that taking a tariff rate of 1.5 percent and turning it into a tariff rate of 15 percent plus is somehow a win for Americans — I’m just baffled by the concept,” said the economist to New York Times reporter Ezra Klein. “Because no one would say that if you took the sales tax on certain goods and you increased it 15-fold that was a win for Americans. But effectively, that’s what we’ve done.”

Sarin said the U.S. economy before President Trump took office was doing “quite well” relative to the rest of the world recovering from pandemic, despite many polls. Inflation had been very high, but it was coming back down toward the Fed’s 2 percent target, with just the last mile to go. The labor market, she said, was strong.

And then President Trump took office.

“At the time, many commentators, including myself, said the best-case scenario for the economy is literally if [Trump] did nothing,” Sarin said. “… Instead, beginning on Liberation Day and continuing since, the president and his administration initiated a trade war aimed at remaking the global order. The consequences of the trade war have been some of the most inflationary policies we’ve seen in our lifetimes.”

Now Trump’s trade war is beginning to reverberate.

“The Budget Lab at Yale, which I run, estimates that we’re going to see household prices increase by around $2,000 a year. We’re going to see an inflation uptick, and we’re going to see a weaker labor market as a result of all that has already been done.

Sarin told Klein the only reason most other nations haven’t responded to Trump’s tariffs with retaliatory tariffs of their own is because tariffs “are a bad tax” on their own people by forcing folks at the middle or bottom of the tax code to pay proportionately more for goods and necessities.

More

'Just baffled': Economist questions how Trump claims his plan is 'a win for America'

In other news, the Great Stain on Israel. President Trump, end this Jewish starvation of Moslem women and children. Would you really allow Moslems to be starving Jewish women and children? If yes, eternal shame on you!!!

‘The children in Gaza are too weak to play or sing: hunger has stolen their childhood’

Bryony Gooch  Sat 16 August 2025 at 1:32 pm BST

At the SOS Children’s Village in southern Gaza, a group of children are crowding around a bus carrying energy biscuits and milk from Unicef.

“You cannot imagine the happiness in the camp when they received those biscuits,” says Reem Alreqeb, who helps run the camp for displaced children in Khan Younis. “It isn’t that delicious, but the children felt good to taste them after three months without any sweets.”

Since Israel announced a military takeover of the Gaza Strip, life has felt even more uncertain and tense for Ms Alreqeb and the children at the camp, many of whom have lost their families. If they are asked to move, all that remains is a bus with a few tents. They don’t have enough food or basic supplies to bring with them.

“I’m doing my best to stay focused and grounded, especially for the sake of the children and families who rely on us,” she tells The Independent.

This isn’t the first time that SOS Children’s Villages has been forced to move the children from Gaza in its care since the ongoing conflict began on October 7, 2023. In May last year, they were forced to leave their permanent village in Rafah after a ground invasion began which displaced an estimated one million Palestinians.

In just one day, charity workers had to transport 170 people – including caregivers and their families – to a humanitarian zone in Khan Younis. On the final day of a three-day trip to bring bare essentials to the humanitarian zone, their car broke down as drones struck people overhead.

“The plane was shooting directly at the people who were around us,” Ms Alreqeb remembers. “I thought that we were going to die at that moment.”

Within three days, they managed to install tents and contract vendors to install bathrooms and water infrastructure, but that memory still haunts Ms Alreqeb.

“It was a nightmare,” she says. “I still dream about those days and hope that I never have to experience it again.”

In little over a year, the number of children in the camp has increased to almost 50, and they receive between 10 and 15 new children every month.

Working with Unicef and social workers on the strip, they work to look after children who are unaccompanied and separated from their families before reunifying them with relatives. Until the children are reunited with family, they stay with caregivers in a caravan that they call home, where all their needs are supported.

Many of the children who arrive at the camp are often “suffering from intensive hunger”, says Ms Alreqeb, with some children suffering from such trauma that they become violent.

“We have a team who are very experienced at dealing with those children,” she adds, referring to the social workers and psychologist who form part of the staff. “When these children receive the care they need, their behaviour improves.”

Every day they wake up to the sound of bombardment, but Ms Alreqeb says the ultimate challenge for the past three months has been finding food after Israel’s blockade in March.

It is a daily issue for caregivers and aid workers to petition other international non-governmental organisations (NGOs) and street vendors to supply the camp with what little food remains in the war-torn strip. While they are just about able to get the bare minimum of nappies, milk, food and fuel, starvation is taking its toll on the children.

More

‘The children in Gaza are too weak to play or sing: hunger has stolen their childhood’

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.

Trump’s controversial $250 visa fee could cost the US economy $11 billion as tourists stay away, research finds

August 15, 2025

Research suggests President Donald Trump’s new $250 “visa integrity fee” could cost the United States $11 billion — a much larger figure than the Congressional Budget Office previously estimated, according to a report.

The fee, packed in Trump’s so-called “Big, Beautiful Bill” that he signed into law last month, applies to all visitors traveling to the U.S. on a non-immigrant visa. The fee doesn’t apply to countries on the Visa Waiver Program, which includes most Western European nations and some Asian countries.

By 2034, the “visa integrity fee” would bring in more than $27 billion, the Congressional Budget Office estimated. Said differently, the office is predicting the U.S. will rake in $2.7 billion from 11 million foreign travelers paying the fee each year.

While the language of the law makes the fee sound like a win for the U.S. economy, it may actually become a major loss, as the cost could deter visitors. That loss could be as high as roughly $3.6 billion per year, or $11 billion in three years, according to a Tourism Economics analysis seen by Forbes.

A decline in travelers could lead to a dip in visitor spending and job losses in the tourism industry. In 2022, the travel and tourism industry contributed $2.3 trillion to the U.S. economy, according to the International Trade Administration.

The CBO appeared not to have taken these potential drops into account.

“By longstanding tradition, the Congressional Budget Office does not incorporate macroeconomic feedback effects into its traditional cost estimates,” a CBO spokesperson told Forbes. “We didn't specifically do a dynamic analysis of this provision.”

The Independent has reached out to the CBO for more information.

The fee, which will take effect in October, was introduced before the U.S. is set to host events which tend to draw large crowds from around the world, including the 2026 FIFA World Cup and the 2028 Summer Olympics.

Even before Trump’s mega-bill was passed international tourism was down.

The U.S. was the only country of the 184 economies analyzed by the World Travel & Tourism Council forecast to see international visitor spending decline in 2025, a May report found. At this rate, the U.S. is on track to lose $12.5 billion in international visitor spending this year, according to the report.

“This is a wake-up call for the U.S. government,” the organization’s CEO Julia Simpson warned in a statement. “The world’s biggest Travel & Tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act. While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign.”

Outside of Canada and Mexico, the United Kingdom, India, Brazil, Japan, and Germany comprised the top five countries with citizens that visited the U.S. this year as of May 2025, according to the International Trade Administration. Of these nations, the fee would only apply to citizens of Brazil and India, which could pack a punch to the U.S. economy.

In 2022, for example, Indian tourists visiting the U.S. generated around $13 billion, according to the International Trade Administration.

More

Trump’s controversial $250 visa fee could cost the US economy $11 billion as tourists stay away, research finds

U.S. visitors to Canada outnumber Canadians in U.S. in rare reversal

Published: August 13, 2025 at 8:40AM EDT

As Canadian travel to the United States continues to decline, new data shows a notable tipping point: More Americans visited Canada this July than Canadians did the United States, in a reversal not seen in years.

Statistics Canada’s latest figures show that U.S. residents made 1.8 million trips into Canada by automobile last month, with only 1.7 million Canadian return trips from the United States.

Canadian trips to the U.S. have outnumbered U.S.-Canada trips every July since before the COVID-19 pandemic, until now.

July travel has declined in both directions since last year, with U.S. visitor totals down 7.4 per cent and Canadian return trips plunging 36.9 per cent, down for six and seven months in a row, respectively.

“Recent data on foreign travel suggest that Canadians’ travel sentiment toward their southern neighbour has been shifting in early 2025,” a StatCan report from earlier this summer reads. “It is currently unclear whether the change is temporary or part of a more permanent shift.”

Girl Guides of Canada recently announced it would suspend excursions to the United States for an unspecified period of time, in a decision the organization said was linked to U.S. President Donald Trump’s tightening border control policies.

“This decision is rooted in our commitment to inclusivity and the safety of all our members,” Girl Guides of Canada wrote in an email to CTV News.

“It was prompted by the recent restrictions put on equal entry into the United States, as some members may hold citizenship from non-Canadian countries and could be impacted by the restrictions.”

As for air travel, Canada has seen an increase in visitors, with 1.4 million non-residents arriving this July, up just over three per cent from the same time in 2024. While most of this growth came from overseas travellers, U.S. visitors by air also increased 0.7 per cent.

Overall, international arrivals to Canada are down 15.6 per cent from the same time last year, according to StatCan.

Canada travel: American visitors outnumber Canadians in U.S.

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.

Strange atomic vibration discovered in graphene could solve one of the greatest mysteries in physics

08-15-2025

A cryogenic microscope that fits on a laboratory bench has now let scientists watch electrons shake graphene’s atoms in real time, revealing something called “phasons.”

The work ties those shivers to the zero-resistance current and odd “strange metal” signals that appear when two graphene sheets are rotated by about 1.1° or what’s referred to as the “magic angle.”

Dr. John Birkbeck of the Weizmann Institute of Science is to be credited for leading the new experiments.

Phasons and twisted graphene

Twisted bilayer graphene is celebrated for hosting superconductivity, but its electrons also display the linear-in-temperature resistivity that defines a strange metal.

Those two features usually live in very different materials, so seeing them together puzzles theorists.

In graphene’s flat bands, electrons move sluggishly, which magnifies every subtle interaction. One crucial interaction couples electrons to phonons, quantized vibrations that carry lattice energy.

----What makes a phason special

A phason slides the two graphene layers against each other in opposite directions. Unlike ordinary acoustic modes whose coupling fades as wavelength grows, the phason’s grip on electrons strengthens at longer wavelengths.

That upside-down behavior means the phason can scatter slow carriers even when its own energy is just a few millielectronvolts.

In the microscope, the phason announced itself as an inelastic step in conductance that grew taller as the twist angle approached the magic value.

“Our technique not only measures the phonon spectrum but also quantifies how strongly electrons couple to each phonon mode,” said Dr. Birkbeck.

The team also saw the phason’s energy collapse toward zero near 6°, while the coupling soared, a sign that this mode could seed both resistivity and pairing.

Building a quantum twisting microscope

Two years earlier the group debuted a room-temperature version of the quantum twisting microscope. Now they cool the device to 4 Kelvin and add nanometer-precise rotation so that electrons can tunnel between aligned patches of graphene.

During tunneling an electron may give up energy to emit a vibration. By sweeping bias voltage, the researchers dictate that emission energy, while the twist angle selects momentum, letting them scan the entire vibration map.

The tip itself is another atom-thin conductor held against a sample only a few hundred nanometers wide. Self-cleaning by van der Waals forces removes contaminants, ensuring that every change in current stems from the quantum states, not dirt.

“It can detect any excitation coupled to tunneling electrons,” noted Jiewen Xiao, also at the Weizmann Institute, stressing the method’s reach beyond phonons.

Unusual clues to superconductivity

Classical theories predict that phonon coupling weakens for low-energy acoustic modes, making them unlikely glue for electron pairs.

More

Strange atomic vibration discovered may solve physics mystery - Earth.com

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

World Debt Clocks (usdebtclock.org)

By means of glasses, hotbeds, and hotwalls, very good grapes can be raised in Scotland, and very good wine too can be made of them at about thirty times the expense for which at least equally good can be brought from foreign countries. Would it be a reasonable law to prohibit the importation of all foreign wines, merely to encourage the making of claret and burgundy in Scotland?

Adam Smith. The Wealth of Nations. 1776


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