Tuesday, 12 August 2025

US CPI Day. Another China Taco. Trump Tariff Chaos.

Baltic Dry Index. 2038 -13            Brent Crude 66.86

Spot Gold 3354                 US 2 Year Yield 3.76 unch.

US Federal Debt. 37.220 trillion

US GDP 30.195 trillion.

Inflation is the parent of unemployment and the unseen robber of those who have saved.

Margaret Thatcher

In good news for US children next Christmas, thanks to yet another Trump China Taco, toys made in China will be stockpiled ahead of any Trump China tariffs, now not due to take effect until November.

Still, tariffs by fickle Washington whim is no way to run a complex, highly integrated, global economy. 

Stagflation or worse, lies just one blunder away. Jimmy Carter come back, all is forgiven.

Japan’s Nikkei 225 hits record high as U.S.-China tariff truce extension lifts sentiment

Updated Tue, Aug 12 2025 11:37 PM EDT

Asia-Pacific markets mostly rose Tuesday, with Japan’s Nikkei 225 hitting a record high while the other key as investors assess the U.S.-China trade truce extension overnight that has allowed the world’s largest economies more room to negotiate a deal.

Investors will be keeping a close watch on the Reserve Bank of Australia rate verdict. The RBA is widely expected to slash cash rates later in the day.

Here are the highlights of the day:

Trump’s China tariff truce extension offers scope for ‘relief jump’ in HK stocks: Mizuho

U.S. President Donald Trump’s decision to extend the trade truce with Beijing for another 90 days offers scope for a “relief jump” for stocks listed on the Hong Kong exchange, Mizuho Securities’ head of macro research, Asia ex-Japan, Vishnu Varathan, wrote in a Tuesday note.

He added that the extension was presumably made on the “grounds of optimism about and goodwill for an impending trade deal.”

Hong Kong stocks have been trading near the flatline, with the Hang Seng Index last seen up 0.05% as of 11: 32 a.m. local time (11:32 p.m. ET Monday).

Singapore’s trade ministry upgrades 2025 GDP growth outlook to 1.5%-2.5%

Singapore’s Ministry of Trade and Industry has revised its 2025 growth forecast for the city-state upwards to 1.5%-2.5% from 0%-2%.

The ministry announced its narrowed forecast Tuesday and said it “largely reflects the better-than-expected performance of the Singapore economy in the first half of 2025.”

Singapore’s economy expanded by 4.4% on a year-on-year basis in the second quarter ended June, extending the 4.1% growth recorded in the preceding quarter, the ministry revealed.

— Amala Balakrishner

Asia stock markets today: live updates

Trump extends China tariff deadline by 90 days

Published Mon, Aug 11 2025 2:31 PM EDT Updated Mon, Aug 11 2025 4:31 PM EDT

President Donald Trump on Monday delayed high U.S. tariffs on Chinese goods from snapping back into place for another 90 days, a White House official told CNBC.

Those tariffs were set to resume Tuesday. But Trump signed an executive order hours beforehand that extends the deadline until mid-November, according to the official.

The delay was the expected outcome from the latest round of talks between U.S. trade negotiators and their Chinese counterparts, which took place in Stockholm in late July.

If the deadline were not extended, then U.S. duties on China would have shot back up to where they stood in April, when the tariff war between the world’s largest trading nations was at its peak.

At that time, Trump had cranked up blanket tariffs on Chinese imports to 145%, and China had retaliated with 125% duties on U.S. goods.

But the two sides agreed to pause most of those tariffs in May, after negotiators met for the first time in Geneva. The U.S. pared its tariffs back to 30%, and China dropped its levies to 10%.

Monday’s extension is the latest example of how Trump’s on-again, off-again tariffs have shifted with little prior notice, a dynamic that has made U.S. trade policy unpredictable for many businesses.

Trump has previously announced steep tariffs on countries or specific sectors, only to scale them back, tweak them or pause them days or weeks later.

The “reciprocal tariffs” he initially rolled out in early April, for instance, were quickly paused and then delayed multiple times before taking effect in an altered form last week.

On Sunday, Trump said he wanted China to “quickly quadruple” its orders of U.S. soybeans.

“This is also a way of substantially reducing China’s Trade Deficit with the USA,” Trump wrote in a Truth Social post.

Chicago soybean prices rose Monday. It was not immediately clear if China has agreed to step up its soybean purchases in response to Trump’s post.

Trump extends China tariff deadline by 90 days

Cover Story: Trump’s Tariff-by-Tweet Tactics Are Pushing Global Trade Into Perpetual Uncertainty

Published: Aug. 11, 2025  5:51 a.m.  GMT+8

President Donald Trump’s trade policy has entered a new, chaotic phase, where structured negotiations give way to abrupt threats and legally nonbinding agreements that have left global commerce in a state of constant tension.

After several delays, Trump’s “reciprocal tariffs” took effect on Aug. 7, hitting 67 countries with tariffs ranging from 10% to 41% — but leaving others to guess what comes next.

The highest rates in the executive order target Laos and Myanmar at 40% and Syria at 41%. Canada, a top U.S. trade partner, faces a 35% tariff. India is subject to a 25% tariff in the order, but that is expected to climb to 50% on Aug. 27 citing penalties for its purchase of Russian oil.

----Four months after threatening more than 180 economies with “reciprocal tariffs,” Trump has created a landscape of rolling deadlines, ambiguous agreements and the weaponization of trade policy for noneconomic ends.

He rolled out the “Liberation Day” tariffs on April 2, then delayed them, vowing to strike roughly 90 trade deals in 90 days. In early July, Trump set the deadline back until Aug. 1, then a day before they came into effect announced another delay.

While the administration raced to strike deals with some countries, the pace has been far slower than Trump promised. Nations that announced deals with Washington have yet to sign binding documents, leaving both governments and businesses to navigate an unpredictable landscape.

Agreements with allies such as Japan and the European Union are riddled with vague or conflicting terms. Japan is contesting a new 15% U.S. tariff, and the EU’s pledge to buy $250 billion of U.S. energy each year appears unrealistic.

This erratic approach has locked the U.S. and its trading partners in what some officials are calling “perpetual negotiations.” The ceaseless uncertainty is rippling through global supply chains and is now beginning to rock the foundations of the American economy itself.

On July 31, in a 30-minute phone call, Swiss President Karin Keller-Sutter believed she was finalizing a trade deal to shield her country from Trump’s sweeping tariffs. Instead, the outcome was shocking. Trump, incensed by a $39 billion trade deficit with the wealthy, neutral nation, dismissed Switzerland’s offer of a 10% tariff rate. Hours after the call, the White House announced it would hit Switzerland with a punitive 39% tariff, far higher than the 31% initially proposed in April.

“The woman was nice, but she didn’t want to listen,” Trump later recounted in a media interview.

The Swiss episode is a microcosm of the chaotic and deeply personal trade strategy defining Trump’s second term. His tariff-by-tweet diplomacy is creating a new era of profound uncertainty, where deals are vague, threats are personal and the economic consequences are only beginning to surface.

More

Cover Story: Trump’s Tariff-by-Tweet Tactics Are Pushing Global Trade Into Perpetual Uncertainty

Small US Companies May Get Clobbered by Trump Tariffs

August 11, 2025 at 10:30 PM GMT+1

It’s not just American consumers who are set to pay for Donald Trump’s trade war. Small US companies—critical to the economy as a source of more than half of its job creation—are about to get clobbered, too.

The US Chamber of Commerce estimated this month that the country has about 236,000 small-business importers—those with fewer than 500 employees. In 2023, the goods they bought from abroad were worth more than $868 billion.

They now face a combined annual tariff hit of $202 billion and are finding it difficult to navigate all the red tape required to comply with the president’s levies (the legality of which is yet another variable, given ongoing litigation).

For example, the latest tariff numbers from the White House, ranging from 10% to 50%, brought with them a need for business owners to increase customs bonds—guarantees they must buy from surety providers to ensure the government receives its tariff revenue, other taxes and any potential penalties.

Big firms often have in-house resources to handle additional bureaucratic hurdles, but compliance and forecasting are “where the smaller companies are really struggling,” said Erin Williamson of Geodis, a leading global logistics firm. “They may not have that internal compliance group or the infrastructure to really sit back and say, ‘OK, this is going to be the impact to us. How do we pivot?’” David E. Rovella

Small US Companies Getting Clobbered by Trump Tariffs: Evening Briefing Americas - Bloomberg

'Gold will not be tariffed': Trump's post ends a market frenzy no one was ready for

August 11, 2025

President Donald Trump abruptly declared that gold imports “will not be Tariffed,” ending a week of confusion that shook global bullion markets and pushed futures to all-time highs.

“Gold will not be Tariffed!” Trump posted on Truth Social, offering no explanation. His statement followed fallout from a U.S. Customs and Border Protection ruling that had cast doubt on the tariff status of widely traded bullion bar sizes—one kilogram and 100 ounces.

The July 31 customs letter, first reported by the Financial Times, appeared to classify those bars as subject to country-specific duties, triggering fears of a 39% levy on gold imports under Trump’s “reciprocal” tariff framework. The ruling spurred December futures on the Comex to record highs and ignited concern over disruptions to global supply chains—especially in Switzerland, a major exporter of gold bars to the U.S.

Reuters reported that the White House was drafting an executive order “clarifying misinformation” surrounding specialty product tariffs. The administration, however, had remained silent for days, leaving bullion markets in a holding pattern.

"Delighted to hear the crisis has been averted," said Ross Norman, an independent gold market analyst. “It will come as an enormous relief to the bullion markets, as the potential for disruption was incalculable.”

Following Trump’s post, U.S. gold futures fell 2.4% to $3,407 per ounce, while spot prices dropped 1.2% to $3,357. Shares of Barrick Mining slipped 2.8% after releasing earnings, and Newmont— the world’s largest gold producer—dipped slightly to $68.87.

Gold has hit record highs throughout the year amid intensifying trade tensions and global instability. The brief tariff scare added fresh volatility to an already jittery market.

'Gold will not be tariffed': Trump's post ends a market frenzy no one was ready for

In other news, more self-inflicted EUSSR madness.

German aviation lobby warns of economic fallout as airlines withdraw over costs

11 August 2025

BERLIN (Reuters) -Airlines are withdrawing aircraft from Germany due to soaring state-imposed costs, the German Aviation Association (BDL) said on Monday, warning of significant economic fallout.

The number of planes stationed in Germany has dropped from 190 in 2019 to 130 this year, resulting in an estimated loss of 10,000 jobs and 4 billion euros ($4.66 billion) in annual economic value added, BDL said.

"Since 2019, state-imposed costs have more than doubled, and airlines are increasingly avoiding Germany," said BDL President Jens Bischof, urging the government to prioritise post-pandemic recovery in the aviation sector.

The industry has criticised Berlin's decision to postpone a planned reduction in aviation tax, arguing that reversing the May 2024 hike would have signalled support for carriers.

State levies, including taxes, air traffic control fees and security charges, are expected to rise by 1.1 billion to 4.4 billion euros this year, hampering recovery, said BDL.

Passenger numbers rose just 3% in the first half of the year to 99.4 million, far below the 10% growth seen a year earlier.

Germany ranks 28th out of 31 European countries in post-pandemic aviation recovery, with seat capacity at 87% of 2019 levels, compared with a European average of 104%.

German aviation lobby warns of economic fallout as airlines withdraw over costs

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.

More red flags from last week. More Great Disconnect in the stock casinos.

Wendy's is struggling as low-income consumers cut back

August 9, 2025

Wendy's cut its sales outlook Friday, pointing to heightened competition and economic uncertainty weighing on its customer base.

Company executives discussed Wendy's challenges during a call with analysts Friday, following the release of its latest earnings report. Interim CEO Ken Cook said that in light of the current environment, the company now expects full-year global sales to decline between 3% and 5%, compared with previous projections of flat to down 2%.

Wendy's is coping with softer consumer demand in 2025, particularly among the lower-income customers that tend to frequent fast-food chains, Sara Senatore, a research analyst at Bank of America, told CBS MoneyWatch. 

"The low-income consumer remains under pressure," she said.

Fast food chains like Wendy's are competing for the attention of low-income consumers who have pulled back on eating out over concerns about the economy. According to a May study from Bankrate, among households earning less than $50,000 per year, 44% say they expect to spend less on dining out this year than they did last year.

Cook, who stepped in as interim CEO after former Wendy's former CEO Kirk Tanner departed to lead the Hershey Company, cited a "a combination of dynamic consumer behavior and a more challenging competitive environment" during a Friday call with analysts to discuss the results.

While sales improved in May and June due to new Frosty offerings, "overall demand recovered more slowly than we expected," he added. The burger chain's sales slipped 1.8% to $3.7 billion in the second quarter compared with a year earlier, according to the company's earnings report. 

Inflation-weary consumers who are skipping breakfast could signal this growing pressure, with Wendy's executives highlighting the trend.

More

Wendy's is struggling as low-income consumers cut back

McDonald’s Says Economic Stress Is Sapping Breakfast-Meal Sales

August 8, 2025

(Bloomberg) -- McDonald’s Corp. is trying to make its breakfast menu more attractive to entice budget-conscious diners who are skipping out on Egg McMuffins and hash browns.

The chain, like competitors, is seeing that breakfast is “absolutely the weakest daypart,” Chief Executive Officer Chris Kempczinski said Wednesday on a call with analysts following the chain’s earnings release.

It’s the “most economically sensitive” meal time, because it’s easy for a “stressed consumer to either skip breakfast or choose to eat breakfast at home,” he said.

The chain earlier this year started advertising breakfast nationally in the US for the first time in a while, Kempczinski said. McDonald’s is exploring “what more we might be able to do with breakfast value,” he added, without offering more details.

McDonald’s Says Economic Stress Is Sapping Breakfast-Meal Sales

Covid-19 Corner

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

Off topic but interesting.

Powerful new oral painkiller blocks signals without sedation or addiction

August 09, 2025

Scientists have shown the efficacy of a new non-opioid oral painkiller known as ADRIANA, the world's first selective α2B-adrenoceptor antagonist – a receptor subtype not previously targeted for analgesics. In clinical trials so far, it has provided powerful pain relief without sedation or risk of addiction.

Researchers at Japan's Kyoto University Scientists have developed an oral medication that targets the α2B adrenoceptor, a little-studied brain receptor that scientists have found actually plays a major role in mechanical pain. This makes it the first-ever α2B-selective painkiller.

This receptor belongs in the adrenergic receptor family – α2A, α2B, α2C – but no approved drug has targeted a2B to inhibit the receptor with high precision. Existing drugs like dexmedetomidine target broad a2 receptors and in this example's case cause sedation and are not oral. This in itself makes this small-molecule drug candidate, also known as compound c545, a potentially new class of pain-relief drug.

"If successfully commercialized, ADRIANA would offer a new pain management option that does not rely on opioids, contributing significantly to the reduction of opioid use in clinical settings," said corresponding author Masatoshi Hagiwara, a specially-appointed professor at Kyoto

The researchers found how a2B becomes more active after nerve injury, and in mice was able to perform the genetic knockout required to inhibit a2B, significantly shutting down neuropathic pain in the animals. However, it's not just applicable for this kind of pain. Preclinical work has shown it has promise for treating inflammatory and post-operative pain too.

More

New non-opioid painkiller ADRIANA shows promise

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.

New Graphene Oxide QC: Cheapest, Fastest Yet

11 Aug 2025 10:40 am AEST

King’s College London

The new method could help accelerate the transition of the technology from the lab to everyday use.

Researchers at King's College London have designed an 'interactional fingerprinting' method that creates a unique identity of individual samples. By mimicking humans' sense of taste and smell, the method can create a qualitative snapshot of the material without relying on inaccessible gold-standard measurement machinery manned by teams of specialists.

By promising a faster and cheaper way to quality control graphene oxide, the scientists hope to remove barriers to exploiting the material, unleashing advances in sustainable electronics and cleaner battery technology.

Since Manchester-based researchers won the Nobel Prize in Physics in 2010 for producing graphene, interest in graphene-based materials has been significant. Their light weight, strength and conductivity have led the Graphene Engineering Innovation Centre and National Graphene Institute to invest £180 million to produce efficient batteries, body armour and other products with GO and related materials.

While the potential of graphene and GO is great progress deploying the materials beyond the lab have been limited. A 2018 article highlighted an unreliable supply of commercially available graphene and the unreliable test conditions that created as a primary cause, concluding 'producers are labeling black powders as graphene and selling for top dollar.'

For GO, the introduction of different types of oxygen to single atom flakes of graphene can make supply even more variable, with the same team of researchers arguing only a small fraction of the material 'deliver(s) approximately what they display on the label or brochure.'

Established methods to characterise these materials exist, but each sample costs up to £5000 to analyse in a process that can take teams of specialists a month. These gold-standard measurements are also inaccessible to many across research and industry, with many of the machines needed to take them prohibitively expensive and not widely available.

The new work uses a first-of-its-kind molecular probing device to characterise GO in a fraction of the time and cost, empowering scientists to accelerate their research beyond the lab.

Principal author, Dr Andrew Surman, Senior Lecturer in Chemistry at King's College London explains "Graphene Oxide is really promising. But if we're to make good progress, we need to confirm that a new batch is like the last one. If your supply is unreliable - and behaves differently every time - how do you go about designing better products? Commercial services to test a new batch are expensive and can take weeks. That's not often feasible.

"Our approach should allow researchers and materials producers to perform a test in a couple of hours, using cheap tools they likely already have access to, to quickly quality control their samples where they work. By helping teams troubleshoot variation in their supply it helps ensure what they are working with is up to scratch, freeing them up for the important business of innovation in next-generation technology."

Their method, published in the Journal of the American Chemical Society, mixes small samples of GO dispersed in water with a series of molecular probes that fluoresce until they interact with the material's surface.

More

New Graphene Oxide QC: Cheapest, Fastest Yet | Mirage News

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

World Debt Clocks (usdebtclock.org)

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.

Ernest Hemingway

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