Thursday, 21 August 2025

The Fed, BoE On Interest Rates Hold. Jackson Hold?

Baltic Dry Index. 1927 -37           Brent Crude 67.16

Spot Gold 3338                 US 2 Year Yield 3.74 -0.01

US Federal Debt. 37.258 trillion

US GDP 30.214 trillion.

Government machinery has been described as a marvelous labour saving device which enables ten men to do the work of one.

John Maynard Keynes

Stocks, was that it? Are we there yet? Has the latest fiat money, stocks inflation bubble just ran into its pin?

Was Warren Buffett right to be selling out, all along?

Has Trump’s tariffs lunacy finally caught out stocks?

Is it Fed Chairman Powell hit back time tomorrow in his Jackson Hole speech?

Well maybe not in public, but what will Chairman Powell be briefing in private? Tariffs will stoke runaway inflation?

Bunker time for the next few weeks.

Stock futures are flat after a 4-day losing streak for S&P 500: Live updates

Updated Thu, Aug 21 2025 7:28 PM EDT

Stock futures were little changed in overnight trading Wednesday following a four-day losing streak for the S&P 500 as tech names dragged the broader market lower.

Futures on the Dow Jones Industrial Average were flat. S&P 500 futures and Nasdaq 100 futures also traded near the flatline.

Big Tech names and chipmakers led losses again in Wednesday’s regular trading as investors continued to rotate out of high-flying stocks. AmazonApple and Alphabet all registered losses of more than 1%. Broadcom dipped 1.3%, while Intel dropped 7%. At one point in the session, Nvidia fell more than 3%, but the stock closed just 0.1% lower.

“There just hasn’t been much conviction behind the recent bout of tech selling, and most people assume it will be over relatively soon,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “This mindset suggests a dangerous degree of complacency, and it means the ‘pain trade’ will be for the tech underperformance to continue.”

Investors are eager to hear from Federal Reserve Chair Jerome Powell on Friday at the central bank’s annual economic symposium in Jackson Hole, Wyo., where he could offer insights into the path of interest rates.

Fed funds futures are pricing in a more than 80% likelihood of the central bank cutting interest rates at its next policy gathering in September, according to CME’s FedWatch tool.

Minutes from Fed’s July meeting showed policymakers are worried about the state of the labor market and inflation, though most agreed that it was too soon to lower interest rates. Fed Governors Christopher Waller and Michelle Bowman dissented against holding rates steady, marking the first time two voting Fed officials have done so since 1993.

“The Fed is worried about inflation accelerating as companies pass tariffs on to consumers,” said David Russell, global head of market strategy at TradeStation. “The minutes are consistent with Powell’s hawkish comments last meeting. The bulls might get some cold water splashed in their faces at Jackson Hole.”

On Thursday, traders will watch for Walmart earnings before the bell, followed by results from Workday in the afternoon. On the economic front, weekly jobless claims and existing home sales data are also due.

Stock market today: Live updates

Inflation Risks Trouble the Fed More Than the Labor Market

August 20, 2025 at 10:45 PM GMT+1

Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as President Donald Trump’s tariffs fueled a growing divide within the central bank’s rate-setting committee.

Officials acknowledged worries over higher inflation and weaker employment, but a majority of the 18 policymakers in attendance “judged the upside risk to inflation as the greater of these two risks,” according to the minutes of the Federal Open Market Committee’s July 29-30 meeting.

Policymakers left interest rates unchanged in a range of 4.25% to 4.5% last month, citing elevated uncertainty in their outlook as economic activity moderated during the first six months of Trump’s term. Their statement at the time characterized the labor market as “solid” but said inflation remained “somewhat elevated.”

Indeed, the biggest spike in wholesale inflation in three years provided the latest sign that companies have begun to raise prices to offset rising input costs. Some Fed officials have voiced concerns that Trump’s trade war will influence prices well into next year. David E. Rovella

Inflation Risks Trouble the Fed More Than the Labor Market: Evening Briefing - Bloomberg

CNBC Daily Open: The U.S. tech-sell off extends to its second day — but don’t let it ruin your summer

Published Wed, Aug 20 2025 9:22 PM EDT

If you have any U.S. technology stocks in your portfolio (and let’s face it, who doesn’t?), you might want to look away.

For the second day in a row, tech stocks dragged markets lower, with the Nasdaq Composite slipping 0.67%. Juggernauts such as AppleAmazon and Alphabet were more meh-nificent than magnificent, falling more than 1%.

Palantir — the standout S&P 500 stock, having more than doubled so far this year — spent its sixth consecutive day in the red and lost its place among a ranking of the 20 most valuable U.S. companies.

While Palantir’s slide was partly triggered by a report from short seller Andrew Left’s Citron Research, which called the company “detached from fundamentals and analysis,” there was no single trigger for the broader pullback.

Investors could have been spooked by OpenAI CEO Sam Altman’s caution about an AI bubble forming, although some analysts dispute that assertion. “In our view the tech bull cycle will be well intact at least for another 2-3 years,” said Wall Street tech bull Dan Ives.

Or it could be something benign, like traders locking in profits. “Tech stocks,” said Carol Schleif, chief market strategist at BMO Private Wealth, “have had an incredibly strong run – with some up over 80% since the early April lows.”

Summer, after all, is far from over. Some investors might have just wanted to cash out for another round of margaritas.

What you need to know today

Fed officials divided over inflation and employment worries. Central bank governors generally agreed there were risks on both sides. But a couple — breaking from the majority — saw the labor market woes as more pressing, according to minutes of the Fed’s July meeting.

Trump likely to pick Kevin Hassett as next Fed Chair. The director of the National Economic Council firmly led the pack, according to a CNBC Fed Survey. However, respondents think the president “should” pick former Fed Governor Kevin Warsh.

No new solar or wind power projects, Trump says. Renewable energy projects will no longer receive approval, Trump posted Wednesday on Truth Social. His comment comes after the administration already tightened federal permitting last month. 

Fourth day of losses for the S&P 500. Investors continued selling off technology stocks on Wednesday, with Palantir having its sixth straight losing day. The U.K.’s FTSE 100 closed at another high despite inflation in July coming in hotter than expected.

----Trump has snapped up more than $100 million in bonds since taking office

U.S. President Donald Trump has been on a multimillion-dollar bond-buying spree since taking office in January, investing in debt issued by local authorities, gas districts and major American corporations.

Across 33 pages of filings with the U.S. Office of Government Ethics, or OGE, dated Aug. 12, the president outlined 690 transactions that have taken place since he took office. The documents were made public on Tuesday.

CNBC Daily Open: Second day of U.S. tech-sell off — but don't panic

Japan’s July exports clock steepest plunge in over four years, dropping by a more than expected 2.6%

Published Tue, Aug 19 2025 7:58 PM EDT Updated Tue, Aug 19 2025 8:44 PM EDT

Japan’s exports plunged 2.6% in July from a year earlier, their steepest drop since February 2021, as shipments to its two largest markets — the United States and China — declined.

The fall was sharper than the 2.1% contraction forecast in a Reuters poll and compared with a 0.5% decline in June.

Imports to the world’s fourth-largest economy sank 7.5%, less than the 10.4% fall expected.

Exports to the U.S. also continued to fall, dropping 10.1% in July and slightly softer than June’s decline of 11.4%. The U.S. is the largest market for Japanese exports.

Shipments to mainland China — Japan’s second largest export market — declined 3.5% compared to the same month last year, but shipments to Hong Kong spiked 17.7%.

The weak trade data came after Japan’s economy grew stronger than expected in the second quarter, with GDP rising 0.3% from the previous quarter and 1.2% from a year earlier, as net exports drove growth.

Hirofumi Suzuki, Chief FX Strategist at Sumitomo Mitsui Banking Corporation, told CNBC after the GDP release that while exports have been volatile, there was a higher level of automobile shipments in April to June.

He attributed the increase to a catch-up in shipments after production recovered from an accident at an automobile parts manufacturer in March.

While Suzuki did not name the company, Reuters reported that there was an explosion on March 7 at a plant in central Japan that supplies auto parts to the world’s largest carmaker, Toyota Motor.

Tariffs on automobiles were cut from 25% to 15% as part of Japan’s trade deal. Autos are one of Japan’s largest exports, and make up its largest export to the U.S. in 2024.

The value of auto exports — which includes cars, buses and trucks — to the U.S. plunged 28.4% year over year in July, a steeper fall compared to the 26.7% decline in June.

More

Japan's July exports drop by 2.6%, steepest plunge in over four years

In other news, trouble at (copper) mine.

Trump slams 'anti-American' pushback after fresh delay to Arizona copper mine

Published Wed, Aug 20 2025 4:28 AM EDT

U.S. President Donald Trump has slammed an appeals court decision to temporarily block a land transfer needed by mining giants Rio Tinto and BHP to develop what is slated to become one of the country's biggest copper mines.

In a post on social media platform Truth Social on Tuesday, Trump said the latest setback to Arizona's Resolution Copper mine would impact thousands of jobs at a time when the world's largest economy "quite simply, needs Copper — AND NOW!"

His comments came shortly after he met the chief executives of Rio Tinto and BHP at the White House, alongside Interior Secretary Doug Burgum.

Two of the world's largest mining firms, Rio Tinto and BHP have been trying to develop the Arizona copper project together for roughly two decades, but the procedures have been beset by legal issues.

The 9th U.S. Circuit Court of Appeals on Monday issued a temporary restraining order to prevent a land transfer while the court considers challenges that have been brought by opponents including the San Carlos Apache Tribe, which is seeking to block the project over religious, cultural and environmental reasons.

"It is so sad that Radical Left Activists can do this, and affect the lives of so many people. Those that fought it are Anti-American, and representing other Copper competitive Countries," Trump said in a Truth Social post.

Resolution Copper described the Monday ruling as "merely a temporary pause," adding it was confident the court would ultimately affirm the necessary land transfer.

"This proposed mine is a rip-off, will destroy a sacred area, decimates our environment, threatens our water rights, and is bad for America," Terry Rambler, chairman of the San Carlos Apache Tribe, said in a Facebook post.

Addressing Trump's Truth Social post on the recent court ruling, Rambler said the U.S. president's comments "mirror misinformation that has been repeated by foreign mining interests that want to extract American copper."

He added that he was willing to meet with the Trump administration to help "protect American interests."

Copper demand

The Arizona copper project is a proposed underground mine roughly 60 miles east of Phoenix, close to the the town of Superior. The joint venture is 55% owned by Rio Tinto and 45% by BHP.

Resolution Copper says the ore deposit represents "one of the most significant untapped copper deposits today" and estimates the potential for the project to add $1 billion a year to Arizona's economy.

A highly conducive metal, copper is a critical component to virtually everything in the modern economy, from solar panels and wind turbines to defense applications and artificial intelligence infrastructure.

Demand for copper is expected to skyrocket over the coming years, dramatically outstripping supply amid the energy transition.

----The U.S. produces only about 5% of the world's copper, according to Dutch bank ING and has seen a 20% decline in production over the last decade. Building new mines in the country, meanwhile, can take a considerable amount of time due to a lengthy permitting process.

----More than half of global copper reserves are said to be located in just five countries — Chile, Australia, Peru, the Democratic Republic of Congo and Russia.

Copper: Trump slams 'anti-American' pushback over Arizona project

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.

UK inflation rises by more than expected to 3.8% amid higher food prices

20 August 2025

Inflation rose again last month to a higher than expected 3.8% amid higher food and fuel prices, adding to fears that the Bank of England will delay further interest rate cuts.

Figures showed the annual rate as measured by the consumer price index (CPI) climbed from June’s 3.6% reading, sitting above the central bank’s 2% target for the 10th consecutive month.

That overshot financial market forecasts of a 3.7% figure for July and all but rules out another reduction in the cost of borrowing this year, with financial markets not fully pricing in the chance of a fresh quarter-point cut until next spring.

The data also suggests rail fares are on track to rise by 5.8% next year. Increases in regulated train ticket prices are usually calculated by adding one percentage point to July’s inflation reading as measured by the retail prices index, which was 4.8%.

The Office for National Statistics said a jump in airfares was behind much of the increase in average prices. Petrol prices nudged prices higher after a comparison with last year, when prices at the pumps were falling.

Food and non-alcoholic beverages were up 4.9% year on year in July, an increase from 4.5% in the 12 months to June.

Droughts in Spain, Italy and Portugal, where the UK sources much of its fresh fruit and vegetables have pushed up prices this summer at a time when prices would usually fall.

The Bank of England trimmed interest rates to 4% earlier this month in line with projections of falling inflation over the next two years. However, several MPC members voted to hold interest rates until the trend became clearer and July’s jump in CPI is likely to push the timing of future cuts deeper into 2026.

Companies have blamed employment tax rises and the uncertainty caused Donald Trump’s tariff war for an increase in domestic prices, while droughts in Spain have pushed up the cost of food.

Cornwall Insight, the energy consultancy, said on Tuesday that it expected the energy price cap covering domestic electricity and gas would go up by £17 or 1% in October, adding to domestic fuel costs.

UK inflation rises by more than expected to 3.8% amid higher food prices

No more interest rate cuts expected as inflation runs ‘miles above target’

Wednesday 20 August 2025 12:09 pm

No further interest rate cuts are expected to be made this year after inflation in the year to July was higher than economists forecast. 

Markets had priced in a 50 per cent chance of an interest rate cut being made at the Bank of England’s November meeting before fresh price growth data was published on Wednesday morning. 

But investors rapidly cut expectations and now believe it is more likely that interest rates will be held at four per cent, with inflation proving to be stickier than most economists forecast. 

The Bank of England’s early August forecast correctly predicted inflation in July would be 3.8 per cent. 

Services inflation, however, was higher than Bank forecasts at five per cent but this was partly due to higher airfares in a busy holiday period for British families. 

ING economist James Smith said a “larger-than-usual” rise in airfares could be ignored by the Bank of England. 

three-way split on the Bank’s Monetary Policy Committee (MPC) earlier this month left analysts across the City on edge as it pointed to divided opinions on the effects of a weakened jobs market and high inflation, partly driven by a larger rise in food prices. 

Food prices ticked up by 4.9 per cent over 12 months due to packaging taxes and higher commodity prices for coffee and oranges, which could worry Bank officials.  

UK inflation is expected to rise higher to four per cent in September, with food prices rising further. 

Deutsche Bank’s Sanjary Raja said the trade-off between a weakened jobs market and high inflation may force the MPC to “look for more patience” as it makes interest rates decisions. 

Pantheon Macroeconomics, which called for interest rates to be held before the August decision, said doves on the MPC had “taken a battering” given inflation remained high and GDP figures beat consensus predictions. 

“It is easy to forget that inflation in July was also well above the MPC’s expectations just a few months ago in the May Monetary Policy Report for instance, which projected headline inflation of 3.4 per cent, and services consumer price index (CPI) of 4.7 per cent,” Pantheon Macroeconomics’ Elliott Jordan-Doak said. 

“The big picture remains that inflation is set to stay miles above target for the foreseeable future.”

More

No more interest rate cuts expected this year due to high inflation

Covid-19 Corner

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

This research needs more follow up investigation, since not all excess deaths will be attributable to covid vaccination.

Significant Increase in Excess Deaths after Repeated COVID-19 Vaccination in Japan

2025 Mar 7;8(2):584–586. doi: 10.31662/jmaj.2024-0298

Abstract

Although Japan recorded the world’s highest rate of COVID-19 messenger ribonucleic acid (mRNA) vaccination doses per capita, COVID-19 cases and deaths exploded after the emergence of the Omicron variant, followed by a significant increase in excess deaths in 2022 and 2023. Although several hypotheses have been proposed to explain these phenomena, the truth remains to be established because sufficient studies and data disclosures have not been conducted to adequately investigate the possible contribution of mRNA vaccines. The causes of the excess deaths from not only COVID-19 but also other factors after repeated mRNA vaccinations must be elucidated, given this could provide valuable information to help combat future infectious disease outbreaks.

Japan recorded one of the world’s highest rates of COVID-19 vaccination doses per capita, amounting to 3.6 doses as of March 2024 (1), behind only Cuba and Chile. Because Cuba primarily used protein subunit vaccines (2) and Chile primarily used inactivated vaccines (3), Japan has the highest per capita rate of messenger ribonucleic acid (mRNA) vaccination doses in the world.

Japan was regarded as one of the most successful countries in handling the early stages of the pandemic, with much lower numbers of COVID-19 cases and deaths than other developed countries. After the emergence of the Omicron variant, however, the number of infections surged dramatically in Japan in 2022, despite more than 80% of the population having been fully vaccinated. Surprisingly, the number of excess deaths per million in Japan exceeded 1400 in 2023, three times higher than that in the United States, whereas COVID-19 deaths in Japan accounted for only 10% of these excess deaths (4).

Several hypotheses have been proposed to explain the cause of the significant number of excess deaths in 2022 and 2023. The most popular hypothesis is COVID-19-related deaths, including 1) people who died from COVID-19 but were either not tested or did not receive positive test results and 2) people who died because of the shortage of medical resources due to the surge in COVID-19 cases. On May 8, 2023, however, Japan downgraded COVID-19 from its category as a novel influenza, which required patients with COVID-19 to be treated only at designated medical institutions, to class 5 (the same as seasonal flu), which made it easier for hospitals to treat both patients with and those without COVID-19. Despite this major policy shift, the number of excess deaths in 2023 remained as high as in 2022.

Another hypothesized cause of the excess deaths is various adverse reactions to COVID-19 vaccinations. Indeed, under its relief system for injury to health with vaccination, the government has provided payouts for as many as 8432 injuries including 903 deaths after COVID-19 vaccination as of November 18, 2024 (5), numbers that are still increasing and already greatly exceed the numbers of injuries and deaths for which payments were made after all other vaccinations in the last 47 years. The aforementioned cases comprise many injuries and deaths in the young population, including the fatal case of a 14-year-old girl (6

More

Significant Increase in Excess Deaths after Repeated COVID-19 Vaccination in Japan - PMC

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.

Scientists just made vibrations so precise they can spot a single molecule

Breakthrough could open door to next-gen technologies in sensing, computing and beyond.

Date: August 16, 2025

Source: Rice University

Summary: Rice University scientists have discovered a way to make tiny vibrations, called phonons, interfere with each other more strongly than ever before. Using a special sandwich of silver, graphene, and silicon carbide, they created a record-breaking effect so sensitive it can detect a single molecule without labels or complex equipment. This breakthrough could open new possibilities for powerful sensors, quantum devices, and technologies that control heat and energy at the smallest scales.

Just as overlapping ripples on a pond can amplify or cancel each other out, waves of many kinds -- including light, sound and atomic vibrations -- can interfere with one another. At the quantum level, this kind of interference powers high-precision sensors and could be harnessed for quantum computing.

In a new study published in Science Advances, researchers at Rice University and collaborators have demonstrated a strong form of interference between phonons -- the vibrations in a material's structure that constitute the tiniest units, or quanta, of heat or sound in that system. The phenomenon where two phonons with different frequency distributions interfere with each other, known as Fano resonance, was two orders of magnitude greater than any previously reported.

"While this phenomenon is well-studied for particles like electrons and photons, interference between phonons has been much less explored," said Kunyan Zhang, a former postdoctoral researcher at Rice and first author on the study. "That is a missed opportunity, since phonons can maintain their wave behavior for a long time, making them promising for stable, high-performance devices."

By showing that phonons can be harnessed as effectively as light or electrons, the study paves the way for a new generation of phonon-based technologies. The team's breakthrough hinges on the use of a two-dimensional metal on top of a silicon carbide base. Using a technique called confinement heteroepitaxy, the researchers intercalated just a few layers of silver atoms between a layer of graphene and silicon carbide, producing a tightly bound interface with remarkable quantum properties.

"The 2D metal triggers and strengthens the interference between different vibrational modes in silicon carbide, reaching record levels," Zhang said.

The research team studied how phonons interfere with each other by looking at the shape of their signal in Raman spectroscopy, a technique that measures the vibrational modes of a material. The spectrum revealed a sharply asymmetric line shape and in some cases showed a complete dip, forming an antiresonance pattern characteristic of intense interference.

The effect proved highly sensitive to the specificities of the silicon carbide surface. The comparison between three different surface terminations of silicon carbide revealed a clear link between each surface and its unique Raman line shape. Moreover, when the researchers introduced a single dye molecule to the surface, the spectral line shape changed dramatically.

"This interference is so sensitive that it can detect the presence of a single molecule," Zhang said. "It enables label-free single-molecule detection with a simple and scalable setup. Our results open up a new path for using phonons in quantum sensing and next-generation molecular detection."

Exploring the dynamic of the effect at low temperatures, the researchers confirmed that the interference stemmed purely from phonon interactions and not electrons, marking a rare case of phonon-only quantum interference. The effect has only been observed in the particular 2D metal/silicon carbide system used in the study and is absent in regular bulk metals. This is due to the special transition pathways and surface configurations enabled by the atomically thin metal layer.

The study also explored the possibility of using other 2D metals, such as gallium or indium, to induce similar effects. By fine-tuning the chemical composition of these intercalated layers, researchers could design custom interfaces with tailored quantum properties.

"Compared to conventional sensors, our method offers high sensitivity without the need for special chemical labels or complicated device setup," said Shengxi Huang, associate professor of electrical and computer engineering and materials science and nanoengineering at Rice and corresponding author on the study. "This phonon-based approach not only advances molecular sensing but also opens up exciting possibilities in energy harvesting, thermal management and quantum technologies, where controlling vibrations is key."

The research was supported by the National Science Foundation (2011839, 2246564, 1943895, 2230400), Air Force Office of Scientific Research (FA9550-22-1-0408), Welch Foundation (C-2144) and the University of North Texas.

Scientists just made vibrations so precise they can spot a single molecule | ScienceDaily

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

World Debt Clocks (usdebtclock.org)

There is nothing so disastrous as a rational investment policy in an irrational world.

John Maynard Keynes


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