Wednesday, 1 October 2025

US Government Partial Shutdown. Will Markets Care?

Baltic Dry Index. 2134 -86             Brent Crude 66.28

Spot Gold 3864                  US 2 Year Yield 3.68 +0.03

US Federal Debt. 37.548 trillion

US GDP 30.301 trillion.

“Never memorize something that you can look up.”

Albert Einstein

The government of the world’s leading economy is in partial shutdown this morning, hopefully with only minimal impact on the US economy.

Time will tell, if the shutdown lasts longer than just a day or two.

Government shutdown live updates: Funding ends after Trump, GOP, Democrats fail to cut deal

Updated Wed, Oct 1 2025 12:40 AM EDT

The United States government shut down early Wednesday morning, setting the stage for the furlough of hundreds of thousands of federal workers and the shuttering of a slew of key programs and services.

Here’s what to know:

  • The full shutdown began after top Democrats and Republicans, including President Donald Trump, failed to agree on a short-term deal to keep the government funded.
  • Democrats, led by Sen. Chuck Schumer and Rep. Hakeem Jeffries, demand that any stopgap funding measure include an extension of enhanced Obamacare tax credits.
  • Trump suggested Tuesday that his administration could take major actions during a shutdown, including cutting government benefits for “large numbers of people.”
  • The Senate adjourned after last-ditch votes on Republican and Democratic funding proposals both failed to pass.

More

Government shutdown 2025: Live updates, news and analysis

Asia markets trade mixed after U.S. government shuts down

Published Tue, Sep 30 2025 7:54 PM EDT

Asia-Pacific markets were mixed Wednesday, following gains on Wall Street as investors appeared unperturbed by the U.S. government shutdown.

Spot gold prices surged 0.09% to hit a fresh record of $3,875.32 as of 11:04 a.m. Singapore time (11:04 p.m. ET).

Over in Japan, the central bank released the results for its third-quarter Tankan survey. The Tankan survey measures business sentiment among domestic companies, and is closely watched by the Bank of Japan.

The index for business optimism among large Japanese manufacturers increased to +14 for the third quarter from +13 in the previous quarter, but was lower than the +15 expected by economists polled by Reuters. The non-manufacturing index held steady at +34.

A positive figure on the Tankan indicates that optimists outnumber pessimists.

Investors in Asia also await the Reserve Bank of India’s interest-rate decision later in the day.

Japan’s Nikkei 225 sunk 1.16%, while the broad based Topix was down 1.71%.

In South Korea, the blue-chip Kospi was up 0.79%, and the small-cap Kosdaq gained 0.56%.

The Taiwan Weighted Index led gains in Asia, adding 1.14% as healthcare and tech stocks powered the index’s rise. Chip heavyweight TSMC was up 2.3% after AI darling Nvidia topped $4.5 trillion in market cap.

Australia’s S&P/ASX 200 slipped 0.26%.

Markets on mainland China and Hong Kong were closed for a holiday.

Overnight in the U.S., the S&P 500 closed up 0.41% at 6,688.46, while the Nasdaq Composite climbed 0.31% to finish at 22,660.01.

The Dow Jones Industrial Average advanced 81.82 points, or 0.18%, to close at 46,397.89 — a fresh closing high.

Asia markets trade mixed ahead of a potential U.S. government shutdown

Consumer confidence weakens on growing concerns about jobs

Consumer-confidence index hits lowest level since April

Last Updated: Sept. 30, 2025 at 10:36 a.m. ET

Consumer confidence fell sharply in September on growing worries about the labor market.

The consumer-confidence index dropped to 94.2 in September from a revised 97.8 in the prior month, the Conference Board said Tuesday. This is the lowest level since April.

Economists polled by the Wall Street Journal had forecast the index to slip to 96.0 in September from the initial estimate of 97.4 in August.

Consumers’ assessment of the availability of jobs fell for the ninth straight month.

Key details: A measure that looks at how consumers feel about the economy right now fell 7 points to 125.4. That’s the largest drop in a year.

A confidence gauge that looks six months ahead dropped by 1.3 points to 73.4. Since February, the expectations index has been below the threshold of 80, which has traditionally been seen as a signal of recession.

Economists focus on labor-market conditions by measuring the spread between the percentage of consumers who think jobs are plentiful and the percentage who think jobs are hard to get.

That spread, called the labor-market differential, has narrowed for nine straight months and is now at a multiyear low of 7.8.

Big picture: The decline in sentiment reflects worries about the labor market that spiked after the weak July jobs report.

People are pessimistic because it is difficult to upgrade a job, interest rates are high, the threat of tariffs remains and “there seems to be a new impactful development in economic policy each week,” said Elizabeth Renter, senior economist at NerdWallet.

Consumer confidence weakens on growing concerns about jobs - MarketWatch

In other news.

UK economy stalls in second quarter

Tuesday 30 September 2025 7:25 am

The UK economy grew at a sluggish pace of 0.3 per cent in the second quarter of the year, official data has shown, another major setback for Chancellor Rachel Reeves’ as she hopes to oversee higher growth.

The Office for National Statistics left its growth figure unchanged from a previous estimate as it confirmed its figures for growth in the second quarter, which is likely to be viewed cautiously by Treasury officials.

The figure is much smaller than 0.7 per cennt growth seen in the first three months of the year, with firms reporting they had front-loaded spending in the year to get ahead of any potential global tariffs war unleashed by President Trump.

A one per cent surge in construction and 0.4 per cent rise in the services sector prevented the UK economy from decline, with production falling by 0.8 per cent and weighing down on results.

The ONS also said business investment fell 1.1 per cent between April and June, a key measure for showing whether companies are looking to expand at pace.

Over a year’s period, the UK economy grew slightly higher than expected at 1.4 per cent.

Data also showed that real household disposable income edged up slightly by 0.2 per cent after a sharper fall in the first three months of the year.

The ONS’ latest publication may spoil the mood at the Labour Party conference in Liverpool, with a ‘business day’ on Monday seeing government officials hear from private sector chiefs on tax and regulation.

Among those attending were representatives from major industry groups such as the Confederation of British Industry (CBI) and the British Chambers of Commerce (BCC) as well as bank chiefs from the likes of Citigroup UK.

In a speech in the afternoon, Reeves told conference attendees that “harder” choices would come ahead given expected growth downgrades and higher borrowing cost estimates by the Office for Budget Responsibility (OBR) will likely create to a £30bn shortfall in public finances.

She also used her speech to talk up investment and re-iterate the importance of “securonomics”, taking a swipe at critics who have called on her to spend more or adjust her fiscal rules.

Reeves and ministers including Darren Jones have refused to rule out increasing VAT at this year’s Budget, claiming that manifesto commitments not to raise it “stand”.

VAT rise could include broadening the base of products that the tax is charged on though reports have suggested that Reeves could look to reduce energy prices by creating another exemption, a move she may hope could drive growth across the UK.

Senior Downing Street officials also admitted public finances were in a “difficult” state and tax rises look all but certain later this year.

UK economy

Analysis-Italy reaps tax windfall thanks to inflation, job growth

29 September 2025

ROME (Reuters) -Italy's tax take is rising faster than expected thanks to job growth and inflation, putting the budget deficit on track to dip below the European Union ceiling of 3% of gross domestic product in 2025, a year ahead of schedule.

Tax revenues rose by more than 16 billion euros ($18.76 billion) between January and July, 5% higher than in the same period last year and outpacing the expectations of the Italian Treasury, which in April forecast a 0.8% increase for the full year.

The government had estimated a deficit of 3.3% of GDP in 2025, but the extra taxes mean the fiscal gap will probably be significantly lower.

Prime Minister Giorgia Meloni and her right-wing allies are claiming credit for the stronger numbers, yet economists say the upswing has been caused by phenomena not necessarily tied to the government, which took office in late 2022.

ARITHMETIC OF ITALY'S TAX TAKE

Tax evasion reforms introduced over the years are bearing fruit, analysts say, although much of the heavy lifting is down to inflation-driven fiscal drag and the creation of some 2 million new jobs over the past four years that have boosted tax receipts.

"Job growth boosts both tax revenue and GDP, but tax revenues grow faster than GDP since employment is taxed much more heavily than other kinds of income," said Marco Leonardi, economics professor at Milan's Statale University.

Meloni frequently points to the job growth as an achievement of her government, but never mentions the fiscal drag - a simple economic phenomenon where inflation and nominal pay growth raise the proportion of taxes paid on income.

Leonardi estimated that the state had collected an extra 25 billion euros from 2021 to 2024 thanks to this effect, with more cash piling up this year, outpacing limited tax cuts introduced by Meloni so far.

Consumer prices in Italy rose by 19% between 2020 and this year. Wages have risen in nominal terms in recent years too but by less than inflation, leaving ordinary Italians feeling worse off. Italian salaries adjusted for inflation are below the level of 1990, data by the OECD and Italy's national statistics bureau ISTAT show.

"The government says it has passed billions of euros of tax cuts, but the impact on our pay packet seems minimal or inexistent. Meanwhile, prices remain high," said Veronica D'Amato, an office worker from Rome.

In Germany, by contrast, the government shifts income‑tax brackets each year to offset fully the impact of inflation.

France has seen no tax windfall this year, partly as a result of more modest employment and consumer price growth than Italy, and faces a 2025 budget deficit of at least 5.4% of GDP.

RISING TAX COMPLIANCE

Italy's sturdier accounts are also a reflection of new rules introduced progressively since 2011 that have narrowed the scope to evade taxes, with successive governments pushing traceable digital payments and tightening controls. 

Tools now in place include expanded e‑invoicing, real‑time VAT reporting, penalties for retailers that refuse card payments, and heavy use of data matching across state systems.

More

Analysis-Italy reaps tax windfall thanks to inflation, job growth

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.

Where tariffs are hiding, and how to tell if you're paying one

Sep 28, 2025

Instead of putting "tariff" on the tag, some retailers are slipping costs into shipping, fees or relabels.

Why it matters: Trade duties and new import rules are driving up retailer costs, especially in apparel, furnitureholiday décor and toys. Those costs are starting to be passed to consumers.

The big picture: Retailers are reshaping how prices show up, including raising shipping fees on items that face duties after the late-August end of the "de minimis" exemption on postal shipments to the U.S. worth less than $800.

·         Vague charges like "processing" or "import fees" are appearing more often at checkout. Such shifting of tariff costs into the fine print makes it harder to compare prices.

Zoom in: Shoppers have been posting on social media about finding price stickers layered over old tags. TikToks and Reddit posts show Walmart and Target employees spending shifts tearing tags off clothing.

·         Both Target and Walmart confirmed they have changed their labeling or re-ticketing process for some items, specifically in apparel, to increase flexibility and stay competitive.

·         "Like other retailers, pricing fluctuations are a normal course of business and are influenced by a variety of factors," a Walmart spokesperson told Axios.

The online side: It can be easier to spot the higher prices at the end of the checkout process.

·         Stephanie Carls, retail insights expert at RetailMeNot, tells Axios shipping costs have routinely doubled or more — "it doesn't always say it's because of tariffs, but that's often what's behind it."

·         GlobalData retail analyst Neil Saunders said retailers often adjust shipping since tariffs feel like a shipping cost — but warns consumers "are more likely to balk at unreasonably high shipping fees than higher priced products."

Case in point: One retailer that shipped a pair of pants (linen trousers in "Cappucino") from eastern Europe for $15 in mid-August shipped the exact same pair of pants, retailing for the same price, for $42 in mid-September, per an Axios editor's receipts.

·         An Axios reporter ordered four shirts from Target at $10 each. Three came tagged at $8, while the fourth had its price torn off — highlighting the murkiness of re-ticketing.

More

Trump tariffs drive hidden price hikes in shipping, fees and new tags

Brits over £200 worse off as cost of living crisis continues

Tuesday 30 September 2025 2:41 pm

Brits have found themselves over £200 worse off each month compared to last year, as they continue to suffer the consequences of the cost of living crisis.

According to the latest report from specialist bank Shawbrook, the average UK adult is suffering a deficit of £224 each month.

Nearly 40 per cent of people confirmed they were worse off compared to last year, with women being affected in particular, with 43 per cent saying they were suffering financially.

Among age groups, Gen X, were in particular feeling the squeeze, with over 50 per cent acknowledging their situation had worsened.

Brits have suffered multiple crushing personal finance blows so far this year, as bills, taxes and food prices soar while wage growth fails to keep pace with rapidly spiralling costs.

Homeowners hit the hardest

Meanwhile, homeowners were hit the hardest, as mortgage holders reported an even higher average monthly deficit of £262 compared to 2024.

The difficulties reflect the state of the UK property market, as more prospective buyers struggle to get on the ladder and others scramble to pay off their mortgages.

According to price comparison website Money Supermarket, the average UK house deposit is £75,072, a sharp rise from last year’s figures of £71,565.

More

Brits over £200 worse off as cost of living crisis continues

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.

Approx. 6 minutes.

Lithium-ion Battery Fire CRIPPLES South Korea’s Government

Lithium-ion Battery Fire CRIPPLES South Korea’s Government

KAUST achieves 28.7% efficiency in perovskite-perovskite-silicon tandem solar cell

An international team of researchers led by King Abdullah University of Science and Technology has fabricated a triple junction perovskite-perovskite-silicon tandem solar cell that achieved a world record efficiency for this cell architecture. The device incorporates stabilised perovskites that ensure improved performance and stability.

September 30, 2025

Researchers at the King Abdullah University of Science and Technology (KAUST) in Saudi Arabia have fabricated a triple-junction perovskite-perovskite-silicon tandem cell with stabilised perovskite layers that achieved a power conversion efficiency of 28.7% on a device with 1-cm2 aperture area. It is a new efficiency record for this type of cell, according to the research team.

The research team noted that the high efficiency potential of such triple junction cells has yet to be reached due to well-documented issues with the 1.50-eV formamidinium lead triiodide (FAPbI3)-based middle layer and the 2.0-eV bromide-rich (Br-rich) top layer. The former typically suffers degradation during subsequent solar cell fabrication steps and the latter suffers from light-induced phase segregation.

“First, we systematically defined the various phase degradation mechanisms across different perovskite compositions as a unified phase instability framework, fundamentally driven by phase transitions and ion migration,” Stefaan De Wolf, corresponding author, told pv magazine.

“To address this, we introduced 3-ammonium propionic acid (3A⁺) into the perovskite lattice, forming multiple ionic and hydrogen bonds. This structural modification significantly raised the phase transition energy barriers and suppressed the formation of Schottky defects, which are known to facilitate such transitions.”

The group reported the effects of the modification “simultaneously” inhibited both the degradation in the 1.5 eV perovskites and the light-induced phase segregation of 2.0 eV perovskites.

“Furthermore, the carboxylic group in 3A⁺ interacts strongly with the buried interface, a self-assembled monolayer (SAM), enhancing electronic cloud coupling and promoting more efficient charge transport,” De Wolf said.

In the study, the researchers also tested the ammonium modification on tin lead (Sn-Pb) junction cells with a narrow bandgap of around 1.25 eV.

After testing, the team observed reduced bulk vacancy formation and improved efficiency of the sample perovskite solar cells, “including Sn-Pb narrow-bandgap, FAPbI3-based mid-bandgap, and Br-rich wide-bandgap compositions,” according to De Wolf.

“By incorporating these stabilised perovskites into triple-junction devices, we achieved an efficiency of 28.7% for perovskite/perovskite/silicon tandems, representing a new efficiency record in the field,” he said, adding that both stability and reproducibility of the devices were markedly improved, with the devices retaining over 85% of the initial efficiency after 1,000 hours of continuous illumination.

“These results not only push the boundaries of triple-junction solar cell efficiency but also offer a generalisable strategy for improving the phase stability of perovskite absorbers, an essential step toward their industrial deployment,” De Wolf said.

Details of the investigation are described in “Stabilised perovskite phases enabling efficient perovskite/perovskite/silicon triple-junction solar cells,” published in nature materials. Researchers from Marmara University in Turkey and Ludwig Maximilians Universität (LMU) in Germany also participated in the study.

Looking ahead, the team will continue to “push the efficiency of triple-junction perovskite-based solar cells beyond the single-junction Shockley-Queisser limit,” through comprehensive material and device innovations, according to De Wolf.

The group intends to focus particularly on optimising the top perovskite sub-cell, including new wide-bandgap compositions and refined interfacial designs, to minimize losses and enhance overall performance.

KAUST achieves 28.7% efficiency in perovskite-perovskite-silicon tandem solar cell – pv magazine Australia

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

World Debt Clocks (usdebtclock.org)

“If we knew what it was we were doing, it would not be called research, would it?”

Albert Einstein


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