Thursday, 4 September 2025

A Global Debt Crisis? Stocks, Bonds, Gold? US Jobs.

Baltic Dry Index. 1940 -46              Brent Crude 67.17

Spot Gold 3531                    US 2 Year Yield 3.61 -0.05

US Federal Debt. 37.316 trillion

US GDP 30.244 trillion.

"We pay the debts of the last generation, by issuing bonds payable by the next generation."

Dr. Laurence J. Peter, author, The Peter Principal.

In the stock casinos, rising tension. Are global bonds signalling the arrival of a global debt crisis? What if the Supreme Court rules against Trump’s tariffs and the US government has to refund  most tariffs collected?

Will tomorrow’s US jobs report force the US central bank into cutting their key interest rate just as Trump’s tariffs inflation starts to hit? How high would gold and silver rise?

But for now, the Google – AI relief rally.

Asia-Pacific markets mostly rise, tracking tech rally on Wall Street

Published Wed, Sep 3 2025 7:54 PM ED

Asia-Pacific markets mostly rose Thursday following a tech rally overnight on Wall Street that lifted the S&P 500 and Nasdaq Composite, even as growing fears around the economy weighed on equities.

Japan’s benchmark Nikkei 225 rose 1.26%, while the Topix index increased 0.79%. Earlier in the session, shares of Kyoto-based Nidec Corp plunged as much as 22.44%, after the company announced a probe into allegations of improper accounting in its group.

Over in Australia, the S&P/ASX 200 benchmark climbed 0.64% after the country’s household spending in July rose 0.5% month on month, according to the Australian Bureau of Statistics on Thursday. This compares to a gain of 0.3% in June. On a yearly basis, household spending growth rose 5.1% in July, the fastest pace since November 2023.

The growth was boosted by demand for the health, transport, miscellaneous goods and services sectors.

Meanwhile, South Korea’s Kospi index traded 0.14% higher and the small-cap Kosdaq added 0.94%.

Hong Kong’s Hang Seng index reversed course and fell 1.21%, while the mainland’s CSI 300 retreated 2.47% in volatile trading.

India’s benchmark Nifty 50 rose 0.82% at the open, and the Sensex index was 0.64% higher.

Global bond markets will continue to be in focus with long-dated borrowing costs around the world under pressure. The U.S. 30-year Treasury yield nudged above 5% on Wednesday morning for the first time since July after a court ruled that most of the Trump administration’s tariffs are illegal, raising questions over the future of tariff revenues.

Japan’s 30-year bond yield was at a record high on Wednesday, with a 100 basis point rise this year driven by high inflation, low real rates and political uncertainty.

Overnight stateside, the three major averages closed mixed. The S&P 500 rose Wednesday, boosted by tech shares after a federal court decision in an Alphabet antitrust case fueled optimism that the tech giants would be able to weather regulatory threats.

The tech-heavy Nasdaq Composite gained 1.03% to end the day at 21,497.73, while the S&P 500 climbed 0.51% to finish at 6,448.26. The Dow Jones Industrial Average lagged, falling 24.58 points, or 0.05%, to settle at 45,271.23.

Asia-Pacific markets: Nikkei 225, bonds, Treasurys

US Employment Picture Darkens With New Data

September 3, 2025 at 11:51 PM GMT+1

It’s only the third day of a much-feared month of September and sobering US economic news is already piling up. Yesterday it was six straight months of shrinking manufacturing. Today it’s job openings falling in July to the lowest in 10 months, adding to other employment data (including a report last month that caused Donald Trump to fire the head of the Bureau of Labor Statistics) showing America’s once-robust post-pandemic jobs landscape continues to darken.

Even worse, the sectors most responsible for the new numbers aren’t cyclical and had been recent drivers of growth. Available positions decreased to 7.18 million from a downwardly revised 7.36 million in June, according to data published Wednesday by the BLS, a division of the US Department of Labor. The median estimate in a Bloomberg survey of economists called for 7.38 million openings.

The pullback in openings was driven by health care, retail trade and leisure and hospitality. Vacancies in health care, which has been a major source of new jobs this year, dropped to the lowest level since 2021.

And that’s not the end of it. Also on Wednesday, the Federal Reserve’s Beige Book reported “flat to declining consumer spending because, for many households, wages were failing to keep up with rising prices.” The Fed also stated that “nearly all districts noted tariff-related price increases” with many saying “tariffs were especially impactful on the prices of inputs.” Still, all this dour data is good news for Wall Street, inasmuch as it pushes a rate cut closer to a fait accompliDavid E. Rovella

US Employment Picture Darkens With New Data: Evening Briefing Americas - Bloomberg

CNBC Daily Open: Investors bet on Fed cuts, but labor data cuts deeper

Published Wed, Sep 3 2025 9:34 PM EDT

The S&P 500 and the Nasdaq Composite climbed Wednesday, powered by tech shares after a federal court decision allowed Google to keep its Chrome browser.

Optimism around a looming rate cut by the Federal Reserve also buoyed markets, with the CME Fedwatch tool indicating a 96.6% chance of a Fed rate cut in its September meeting later this month.

However, weak economic data seems to hang like a dark cloud over investors. Job openings ticked down in July to levels rarely seen since the Covid-19 pandemic, bolstering fears of cooling in the labor market.

The Job Openings and Labor Turnover report showed around 7.18 million listings in July, according to data from the Bureau of Labor Statistics released Wednesday. That’s only the second reading under the 7.2 million level since the end of 2020.

Economists also expect Thursday’s ADP private payrolls report to show a softer print for August, and jobless claims data is expected to show a slight uptick. The unemployment report due Friday is forecast to show jobless rate inching up to 4.3% from 4.2%.

In short, the Fed may be ready to cut rates, but the job market’s cutting deeper.

CNBC Daily Open: Investors bet on Fed cuts, but labor data cuts deeper

Global bond sell-off reflects unease over budgets and central banks

Published Wed, Sep 3 2025 6:00 AM EDT

Long-dated borrowing costs around the world are back under pressure, and analysts say that’s in part thanks to broad investor unease with the path of both fiscal and monetary policy in many major economies.

Bond markets have been on a bumpy ride this year, with massive spikes and falls at times stemming from White House policymaking, ranging from tariffs to concerns about the U.S. deficit related to the “big, beautiful tax bill.”

Moves have been more measured this week. But several yields hit notable milestones, reigniting discussion over the opportunities and risks in government debt.

The U.S. 30-year Treasury yield nudged above 5% on Wednesday morning for the first time since July amid questions over the future of tariff revenues following a recent court ruling. Japan’s 30-year bond yield was at a record high on Wednesday, with a 100 basis point rise this year driven by high inflation, low real rates and political uncertainty.

The yield on U.K. 30-year bonds on Tuesday reached its highest level since 1998 ahead of a highly anticipated budget set to be delivered in the coming months, and added another 4 basis points early Wednesday. The premium on French 30-year bonds breached a level last seen in 2008 as the government is on the brink of collapse, putting the country’s deficit reduction plans at risk.

German bonds, which benefited from a flight to safety earlier in the year, joined the rout, with the 30-year bund yield notching a 14-year high.

Rate pressure

Kallum Pickering, chief economist at Peel Hunt, said that while there is no crisis in the bond market, the elevated price being paid by governments, combined with high interest rates, is an economic problem across the advanced world.

″[High rates] constrain policy choices, they crowd out private investment, they leave us wondering every six months whether we’re going to face a bout of financial instability. These are really, really bad for the private sector,” Pickering told CNBC’s “Squawk Box Europe” on Wednesday.

“I’m actually getting to the point now where I think that austerity would be stimulative, because you would actually give markets confidence, you would bring down these bond yields, and the private sector would just breathe a sigh of relief and start distributing some of its balance sheet strength.”

Jonas Goltermann, deputy chief markets economist at Capital Economics, said there appears to be three overlapping drivers between the global move higher in long-end yields: fiscal concerns, monetary policy, and term premia effects such as supply-demand dynamics.

Both the U.K. and France are facing a “tricky budget arithmetic” in which “some combination of tax increases and spending cuts are needed to keep public finances on a sustainable footing and bond markets on side,” he said in a Tuesday note.

Market dynamics, meanwhile, suggest wavering confidence over central banks’ “ability and willingness to keep inflation under control in the medium term,” Goltermann continued, though he noted the relative resilience of U.S. yields where fears over central bank independence have become acute.

More

Global bond sell-off reflects unease over budgets and central banks

In other news.

Rising visa costs risk accelerating US travel decline as new fee comes into effect

September 3, 2025

Some travellers to the US could soon see their trip become even more expensive as a new $250 (€287.6) “visa integrity fee” will go into effect on 1 October this year. 

With travel numbers to the US already falling, this fee could further strain the country’s travel industry. 

It will increase the total US visa cost to $442 (€379.2). This would make it one of the most expensive tourist visas in the world, according to the US Travel Association, along with Australia’s visitor visa under subclass 600, at AUD 195 (€108.9) and the UK’s six-month tourist visa at £127 (€145.9). 

With a one-week mid-range US trip costing almost $2,000 (€1,722.1), according to money transfer comparison website Exiap, this added visa cost could make US travel significantly more expensive for families and group travellers in particular.

Which countries will be impacted?

The new visa integrity fee will affect travellers from non-visa waiver countries such as ArgentinaMexico, China, Brazil and India

The fee is expected to hit Central and South American countries especially hard, potentially costing the US a large number of visitors from these places.  It comes as visitor numbers from these countries to the US have been on the rise, despite a wider global downturn in US travel. 

Mexican traveller numbers to the US rose almost 14 per cent this year, as of May, according to the National Travel and Tourism Office. Similarly, visitors from Brazil increased 4.6 per cent year-to-date, while Argentinian travellers surged 20 per cent. 

Overall, travel from South America to the US rose 0.7 per cent, whereas Central American travel increased 3 per cent. 

However, with US trips already being relatively expensive for travellers from these countries, the visa fee increase could mean that visitors start looking at other potential holiday destinations. 

On the other hand, Indian travel numbers to the US have dropped 2.4 per cent so far in 2025, dampened by an almost 18 per cent fall in students. 

Similarly, Chinese visitor numbers to the US were still 53 per cent below 2019 level as of July. 

EU member states part of the US Visa Waiver Program (VWP), such as Belgium, France, Germany, Austria and Italy, among others, will not be impacted by the visa integrity fee. 

These travellers can still visit the US for business or tourism stays for 90 days or less without a visa, as long as they have an approved Electronic System or Travel Authorisation (ESTA). The UK will also be exempt from the visa fee hike under the same rules. 

---- US travel continues to drop sharply in 2025

According to preliminary figures from the US National Travel and Tourism Office, international arrivals, not including travellers from Canada or Mexico, fell 1.6 per cent, or more than 3 million, so far in 2025 when compared to 2024. 

Foreign travel to the US also dropped 3.1 per cent on an annual basis this July to 19.2 million. This was the fifth month that visitor numbers fell in 2025. It has countered expectations that travel numbers would finally top pre-pandemic levels of 79.4 million this year. 

Rising visa costs risk accelerating US travel decline as new fee comes into effect

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.

Economist, who predicted the 2008 financial crisis, warns USA could be in recession by the end of 2025

3 September 2025

President Trump has consistently pointed to a thriving U.S. economy as proof of his policies’ success.

High GDP growth, strong investment figures, and low inflation have been used to bolster his claims.

But not everyone is buying it.

Mark Zandi, chief economist at Moody’s Analytics, says the U.S. economy is edging dangerously close to a downturn.

Known for having correctly predicted the 2008 financial crisis, Zandi now sees a similar storm brewing, warning a recession could arrive by late 2025.

In an interview with Newsweek, Zandi stated: “I don’t think the economy is in a recession, at least not at this point, but it feels like it’s on the brink.”

His concerns aren’t speculative—they’re rooted in key economic indicators that he says are all trending in the wrong direction.

One of Zandi’s top concerns is jobs.

He notes that hiring has slowed to a “virtual standstill,” based on recent payroll reports.

While layoffs haven’t surged yet, the slowdown is significant enough to raise alarms about the overall health of the labor market.

According to Zandi, the only thing keeping the economy from slipping into recession is the absence of mass layoffs.

“That’s the firewall between recession and no recession,” he explained.

But he warned that firewall may not hold for long.

Zandi urges close attention to monthly employment data.

The moment job growth turns negative, he says, “that’s when alarm bells should start going off.”

He expects this shift to happen soon.

While Trump’s tariffs haven’t yet hit American consumers hard, Zandi believes the worst is ahead.

Many companies have delayed passing costs on to consumers, fearing political fallout or awaiting final tariff decisions.

Zandi expects the annual inflation rate—currently 2.7%—to rise above 3%, and possibly approach 4% within the next year.

He warns that price hikes will soon be unavoidable and painfully obvious to consumers at grocery stores, gas pumps, and retail outlets.

As inflation bites and layoffs begin, Zandi predicts a consumer-led slowdown.

With tighter wallets, Americans could cut back on spending, triggering even more strain on businesses—and more layoffs in return.

This cycle, he says, is the core danger.

Zandi outlines a classic economic spiral: consumers spend less, businesses lay off workers, and the resulting income loss causes even more spending cuts.

“It becomes a self-reinforcing vicious cycle,” he said—one that could push the economy over the edge.

More

Economist, who predicted the 2008 financial crisis, warns USA could be in recession by the end of 2025

EU Accelerating Toward Collapse: Merz, Draghi, And Lagarde Reveal Europe's Crisis Path

Wednesday, Sep 03, 2025 - 07:00 AM

The Chancellor seems to have collided with reality during the summer break. Merz sees the German social system in deep crisis. Meanwhile, his political allies in Brussels are calling for an increase in the very dose of poison that is making Europe sick.

Let’s be blunt: Large parts of the political elite have a fractured relationship with reality. This applies equally to the economic decay of Germany and the EU, as well as to the public communication of strategic political goals, which are systematically obscured. Open criticism of the course could cause the political fairy tale to collapse faster than reality seeps into public opinion.

Merz and the Welfare State

All the more remarkable are the warning words of Chancellor Friedrich Merz during his Saturday appearance at the CDU state party conference in Lower Saxony. “I am not satisfied with what we have achieved so far – it must be more, it must be better.”

Hear that! A faint tremor of self-criticism from the Chancellor. Rare, indeed. Yet the statement raises the question: what exactly does Merz mean by “achievements”? Is he referring to the so-called investment booster, supposedly providing marginal relief to the German economy while it teeters on collapse? Or does he mean the massive debt packages and widening financing gaps, most likely to be closed with tax hikes?

In his speech in Osnabrück, Merz later spoke unusually clearly about the state of the welfare system: “The welfare state, as we have it today, is no longer financially sustainable given what we can deliver economically.” A blunt diagnosis, leaving little to be desired in clarity.

There was, however, no mention of a market-oriented turn, trust in individual solutions, personal responsibility, or rapid bureaucratic reduction. The message seems to be: stay the course.

Moments of Honesty

Merz also spoke unequivocally about citizen welfare payments: it cannot continue like this. 5.6 million people receive the payments. Many could work but do not, he said. A reality that politics usually avoids.

A tentative attempt to openly name the precarious state of German social insurance. In times when political sugar-coating is routine, it’s almost a stroke of luck when a leading politician at least partially acknowledges economic realities.

Have the latest economic data perhaps shaken Merz and his colleagues in Berlin? GDP shrank again in the second quarter, and the outlook remains bleak. With the state intervening via massive credit programs and new debt hitting about 3.5% this year, the private economy is contracting at 4–5%. Calling this a recession would be euphemistic — we are in a depression.

More

EU Accelerating Toward Collapse: Merz, Draghi, And Lagarde Reveal Europe's Crisis Path | ZeroHedge

Covid-19 Corner

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

Over-the-Counter Nasal Spray May Cut COVID-19 Risk by 70%, Study Finds

3 September 2025

In the near future, a simple nasal spray in your medicine cabinet would not only ease allergy congestion but also significantly bring down your risk of catching COVID-19. According to a new clinical study, which is still ongoing, an over-the-counter antihistamine nasal spray has been showing remarkable preventive effects against coronavirus. With the cases of COVID-19 high again, experts believe this affordable and accessible spray can offer an extra layer of protection.

According to the trial, azelastine can cut COVID-19 infections by at least 70 per cent.

The phase 2 randomised and placebo-controlled clinical trial led by scientists from Saarland University in Germany says apart from keeping COVID-19 away, the spray can also be helpful in reducing the incidence of infections with the common cold. “This clinical trial is the first to demonstrate a protective effect in a real-world setting,” said Dr Robert Bals, Director of Saarland’s department of Pulmonology, Allergology, Respiratory Intensive Care and Environmental Medicine. “Azelastine nasal spray could provide an additional easily accessible prophylactic to complement existing protective measures, especially for vulnerable groups, during periods of high infection rates, or before travelling,” he added.

How was the study conducted?

For the trial, scientists had recruited 450 healthy adults, with an average age of around 33. Almost all the participants were vaccinated against COVID-19 and were randomly assigned to receive either azelastine nasal spray or a placebo.

The spray was used at least three times a day for more than 50 days. In cases of coronavirus exposure or symptoms, participants could increase the dose to five times daily for three days. On the sidelines, participants were also tested for COVID-19 with rapid antigen tests, or RATs, twice weekly.

According to the trial results, the groups with azelastine – around 2 per cent of the participants became infected with COVID-19 as compared to 7 per cent in the placebo group. Scientists said it meant that users of azelastine had nearly 70 per cent lower risk of getting infected with the virus.

There were also fewer symptomatic COVID-19 cases in the azelastine group. The trial also revealed that overall respiratory infections in the azelastine group were 9.3 per cent vs. 22 per cent in the placebo group.

More

Over-the-Counter Nasal Spray May Cut COVID-19 Risk by 70%, Study Finds

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.

Huasun achieves 34.02% efficiency for perovskite-heterojunction solar cell

The Chinese manufacturer said the result was achieved thanks to new perovskite crystallization additives and high-mobility carrier transport layer materials.

September 3, 2025

Chinese solar module maker Huasun claims to have achieved a power conversion efficiency of 34.02% for a 1 cm² tandem solar cell based on a perovskite top cell and a silicon heterojunction (HJT) bottom device.

The company did not say if the result was certified by an independent entity.

“At the laboratory level, the team innovatively introduced a dual passivation strategy combining physical field effects and chemical bonds, which significantly reduced interfacial non-radiative recombination losses,” Huasun stated. “At the same time, by applying new perovskite crystallization additives and high-mobility carrier transport layer materials, along with a series of material and process improvements, Huasun team achieved comprehensive optimization of grain orientation, energy level alignment, and interface stability—laying a solid foundation for further exploring efficiency limits.”

The manufacturer also claims to have achieved an efficiency of 29.01% in a large-sized cell with the same architecture on one of its production lines, without providing further details.

“This breakthrough was enabled by Huasun’s large-texture thin-film deposition technology, which ensures uniform coating on complex surfaces and overcomes key challenges in scaling perovskite materials,” it further explained. “By introducing organic stabilizers, Huasun improved deposition uniformity and environmental stability, while new interface transport materials enhanced reliability and process compatibility.”

More technical information about the cell design was not released.

In May 2024, Huasan achieved a 26.50% power conversion efficiency in an HJT solar cell based on a zero-busbar (0BB) module technology and silver-coated copper paste with low silver content.

Huasun achieves 34.02% efficiency for perovskite-heterojunction solar cell – pv magazine International

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

World Debt Clocks (usdebtclock.org)

"To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable."

Edgar Bronfman, Chairman, Seagrams .


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