Tuesday, 7 October 2025

US Government Still Shut. Another AI “Deal.” Gold Nears $4,000.

Baltic Dry Index. 1932 +31             Brent Crude 65.59

Spot Gold 3977                  US 2 Year Yield 3.60 +0.02

US Federal Debt. 37.833 trillion

US GDP 30.313 trillion.

Any fool can know. The point is to understand.

Albert Einstein

Another day and another dodgy AI deal that looks a lot like the old dot.con deals of another great stocks con bubble.

Japan’s Nikkei 225 hits record high for second straight day after Wall Street gains on AMD rally

Published Mon, Oct 6 2025 7:41 PM EDT

Japan’s Nikkei 225 hit a record high Tuesday for the second straight session, lifted by a tech rally on Wall Street after a massive deal between OpenAI and AMD — seen as one of the most direct challenges yet to chipmaker giant Nvidia.

Chip stocks were among the top movers on the index. Shares of Advantest rose over 4%, while Tokyo Electron added 2%. Lasertec was up 1.35%, and Renesas Electronics advanced 4.85%.

The Nikkei 225 hit a fresh high Monday after Japan’s ruling Liberal Democratic Party elected staunch conservative Sanae Takaichi as its new leader Saturday, positioning her to become the country’s first female prime minister.

Meanwhile, the Topix index rose 0.31%. Japanese Government Bond yields rose to all-time highs Tuesday. The yield on the 10-year JGB rose by 2 basis points to 1.694% to reach the highest level since July 2008, while the 20-year JGB added nearly 4 basis points to hit 2.734% the highest point since 1999. The yield on the 30-year JGB added more than 4 basis points to 3.333%, an all-time high.

One basis point is equal to 0.01%, and yields move inversely to prices.

The Japanese yen weakened 0.11% to 150.49 against the greenback, falling for a fourth straight session. The currency plunged nearly 2% in the previous session.

Australia’s ASX/S&P 200 fell 0.27%, extending losses from the previous session.

Chinese, Hong Kong and South Korean markets are closed for the holidays.

U.S. equity futures were slightly lower in early Asian hours Tuesday after the major key benchmarks hit fresh records Monday stateside.

Overnight, the S&P 500 gained 0.36% to end the day at a fresh record for the 32nd time this year. Meanwhile, the tech-heavy Nasdaq advanced 0.71% to finish at 22,941.67, after notching its 31st all-time high of 2025.

Shares of AMD skyrocketed almost 24% to boost both indexes after the company announced a deal with OpenAI, which could see the latter take a 10% stake in the chipmaker.

The Dow Jones Industrial Average, however, fell 63.31 points, or 0.14%, to close at 46,694.97, weighed down by a decline in shares of Sherwin-Williams and Home Depot.

Japan's Nikkei 225 hits record high for second straight day

AMD stock skyrockets 23% as OpenAI looks to take stake in AI chipmaker

Published Mon, Oct 6 2025 6:52 AM EDT Updated Mon, Oct 6 2025 4:04 PM EDT

OpenAI and Advanced Micro Devices have reached a deal that could see Sam Altman’s company take a 10% stake in the chipmaker.

AMD stock skyrocketed 23.71% on Monday following the news.

OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said Monday. It will kick off with an initial 1-gigawatt rollout of chips in the second half of 2026.

“We have to do this,” OpenAI President Greg Brockman told CNBC’s “Squawk on the Street.” “This is so core to our mission if we really want to be able to scale to reach all of humanity, this is what we have to do.”

Brockman added that the company is already unable to launch many features in ChatGPT and other products that could generate revenue because of the lack of compute power.

As part of the tie-up, AMD has issued OpenAI a warrant for up to 160 million shares of AMD common stock, with vesting milestones tied to both deployment volume and AMD’s share price.

The first tranche vests with the first full gigawatt deployment, with additional tranches unlocking as OpenAI scales to 6 gigawatts and meets key technical and commercial milestones required for large-scale rollout.

If OpenAI exercises the full warrant, it could acquire approximately 10% ownership in AMD, based on the current number of shares outstanding.

The ChatGPT maker said the deal was worth billions, but declined to disclose a specific dollar amount.

The deal positions AMD as a core strategic partner to OpenAI, marking one of the largest GPU deployment agreements in the artificial intelligence industry to date.

AMD CEO Lisa Su told CNBC’s “Squawk on the Street” that AI is on a 10-year growth path, and “at the end of the day, you need the foundational compute to do that.”

“You need partnerships like this that really bring the ecosystem together to ensure that, you know, we can really get the best technologies, you know, out there,” she said. “So we’re super excited about the opportunities here.”

The partnership could help ease industrywide pressure on supply chains and reduce OpenAI’s reliance on a single vendor.

OpenAI unveiled a landmark $100 billion equity-and-supply agreement with Nvidia nearly two weeks ago, cementing the chip giant’s role in powering the next generation of OpenAI models. That arrangement combined capital investment with long-term hardware supply — though in Nvidia’s case, it was the chipmaker taking an ownership stake in OpenAI. 

Shares of Nvidia fell 1% on Monday following news of the OpenAI-AMD deal.

That deal accounts for a dedicated 10-gigawatt portion of OpenAI’s broader 23-gigawatt infrastructure road map. At an estimated $50 billion in construction costs per gigawatt — together with the AMD deal — OpenAI has committed roughly $1 trillion in new buildout spending in just the past two weeks.

OpenAI is also in talks with Broadcom to build custom chips for its next generation of models.

The arrangement between OpenAI and AMD adds a new layer to the increasingly circular nature of AI’s corporate economy, where capital, equity and compute are traded among the same handful of companies building and powering the technology. 

More

OpenAI looks to take 10% stake in AMD through AI chip deal

In other news, poor France.

French Political Deadlock Deepens After Another Premier Quits

October 6, 2025 at 5:00 PM GMT+1

French markets sank after Prince Minister Sebastien Lecornu unexpectedly quit just a day after President Emmanuel Macron’s cabinet picks disappointed even members of the proposed new government. Bruno Retailleau — who was tapped to become interior minister and leads the center-right Republicans  — slammed the choice of ministers as failing to “break” with the past.

The resignation deepens the political crisis gripping Europe’s second-biggest economy. The premium on French debt over safer German peers rose to a nine-month high. French stocks tumbled by the most since late August. Some analysts warned European Union financial markets are at risk of contagion from France

Macron now has three main choices: He can name a new prime minister, who would then need to propose a fresh cabinet; he could call a parliamentary election; or he could resign himself — something he’s previously said he won’t do. Calls grew louder over the course of the day for Macron to make a statement.

Lecornu was supposed to be Macron’s “last-chance” man to keep his presidency on the rails through 2027, writes Lionel Laurent for Bloomberg Opinion. He has ended up as the epitome of a failed strategy. --Jonathan Tirone

French Political Deadlock Deepens After Another Premier Quits - Bloomberg

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.

Are we in a recession? Yes — if you live in one of these 22 states.

October 5, 2025

The U.S. economy is very close to falling into a damaging contraction — and many states are already experiencing a recession, according to Mark Zandi, chief economist at Moody’s Analytics.

Zandi estimates that 22 states plus the District of Columbia are now experiencing persistent economic weakness and job losses that are likely to continue. Another 13 states are treading water, he noted.

The overall picture is one of a weak U.S. economy that is vulnerable to being pushed into a ditch by a strong wind. “The economy is still not in recession, but the risks are very high. We’re on the precipice,” Zandi said in an interview with MarketWatch.

California and New York are among the states that are treading water. If either of those falters, it would tip the economy into recession, Zandi said.

A separate forecast by UCLA Anderson School of Management released this week stated that a recession in California is now plausible.

According to Zandi, the cause of the weakness is economic policy.

President Donald Trump’s tariffs on imported goods have caused uncertainty, forcing companies to pull back from expansion plans and confusing supply chains. No labor-force growth this year has also hurt the economy.

In addition, federal job cuts tied to the Trump administration’s so-called Department of Government Efficiency, formerly led by Elon Musk, have pushed Washington, D.C., and surrounding states into the deepest downturn of any region.

On a national level, the National Bureau of Economic Research defines a recession as a significant decline in economic activity that is spread across the economy and lasts more than a few months.

The organization puts particular emphasis on a few indicators — including nonfarm-payroll employment, personal income adjusted for inflation excluding transfers, consumer spending adjusted for inflation and industrial production.

Zandi admitted that identical data aren’t produced for state economies. He said that he tries to replicate the NBER but that there is a fair amount of judgment involved in his conclusions. Zandi has given policy advice to congressional Democrats but says he’s an independent who worked as a top adviser to the late Sen. John McCain, a Republican, during a presidential run.

The prevailing narrative among economists is that the U.S. economy’s expansion will continue, driven by consumer spending.

Richard Moody, chief economist at Regions Bank, noted that third-quarter U.S. GDP is estimated to show the economy growing at a 3.8% annual rate. The latest data on business investment, jobless claims and consumer spending have been decent, he added. “Nothing suggests the economy is rolling over,” Moody said in an interview.

The most recent data released by the government before the federal shutdown surprised to the upside and showed the broader economy was in pretty good shape.

But Zandi said the latest data didn’t change his views. “GDP and consumer spending are stronger, but the job market is weaker,” he said.

A common denominator of the states in recession is that they have weak farm economies or faltering light manufacturing. Any part of the country whose economies depend on goods-producing activities, agriculture, mining and light manufacturing are currently weak, Zandi said, adding that a weak transportation sector is exacerbating the downturn.

The contraction in the New England region is not unusual because of its slow-population-growth trends, according to Zandi. “That region doesn’t grow very strongly even in the best of times,” he said.

But Zandi said he was surprised that Georgia is in recession. The state has seen a significant pullback in domestic immigration, in part because of high home values, he noted.

Pennsylvania, meanwhile, is a surprise on the upside, he added, with the state benefiting from strengths in education and healthcare.

Are we in a recession? Yes — if you live in one of these 22 states.

Covid-19 Corner

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

NHS 'call 999' warning on Covid-19 vaccine side effects

The Covid-19 vaccine is offered to help protect the body against viruses and is especially recommended during the winter period.

11:12, Fri, Oct 3, 2025 Updated: 11:14, Fri, Oct 3, 2025

Those who get the  Covid-19 jab this winter may encounter some side effects, including severe ones that might necessitate a trip to A&E. Vaccinations are crucial in bolstering the body's defences against viruses and are particularly recommended during the colder months.

This is due to the fact that viruses like Covid-19 mutate over time, causing the immune system's protection to diminish. While not everyone is obliged to get vaccinated, it is generally advised for those at an increased risk of severe illness from a coronavirus infection.

The NHS typically recommends the Covid-19 vaccine for individuals aged 75 or above, residents of care homes for the elderly, or those with compromised immune systems due to health conditions or treatments. Despite potential side effects and risks, the vaccine is widely considered safe.

Side effects of Covid-19 vaccine

Not everyone who receives a COVID-19 vaccine will suffer any side effects. However, NHS guidance has highlighted that there are some common side effects, including:

·         Feeling achy

·         A headache

·         Feeling tired

·         A sore arm from the injection

·         Mild flu-like symptoms

Generally, these side effects are mild and should subside within a week. The NHS suggests taking paracetamol to alleviate these symptoms while recovering.

However, a small number of individuals may experience serious side effects. For instance, some people might have a severe allergic reaction to the vaccine.

In such instances, the person administering the injection should be equipped to handle allergic reactions and provide immediate treatment. The NHS has also highlighted 'rare' instances of heart inflammation (myocarditis) resulting from the vaccine.

More

NHS 'call 999' warning on Covid-19 vaccine side effects | Express.co.uk

Technology Update.

One-step method uses clever precursor molecule to make graphene with regular irregularities

Khushleen Kaur 3 October 2025

A method for growing graphene-like films with precisely engineered defects offers a new route to tailor the material’s properties for specific applications.

Defects are often undesirable in materials like graphene. But in certain cases, they can actually enhance its chemical, electronic, mechanical and magnetic properties.

Now a team led by Reinhard Maurer from the University of Warwick, UK, and David Duncan from the University of Nottingham, UK, has developed a one-step chemical vapour deposition (CVD) process to introduce defects directly during growth. It employs azupyrene, a precursor molecule designed to mimic the topology of a Stone–Wales defect by including two pentagons and two heptagons where there would normally be four adjacent hexagonal rings. These other rings influence the material’s interactions with substrates and modifies its electronic and magnetic behaviour.

By growing carbonaceous films on copper substrates at varying temperatures, the researchers were able to control the concentration of these five- and seven-membered rings. The team used advanced microscopes at Diamond Light Source in the UK and MAX IV in Sweden to study the atomic structure of the defective graphene. Higher temperatures produced structures closer to pristine graphene. Importantly, the resulting monolayers were continuous and not contaminated with heteroatoms, an improvement over post-processing methods of graphene oxide or pristine graphene that can result in defect inhomogeneity and unwanted impurities.

The work opens new possibilities for graphene with engineered defects in areas such as nanoelectronics, gas sensing and catalysis, where controlled reactivity and electronic behaviour are essential.

One-step method uses clever precursor molecule to make graphene with regular irregularities | Research | Chemistry World

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

World Debt Clocks (usdebtclock.org)

The next best thing to knowing something is knowing where to find it.

Samuel Johnson

No comments:

Post a Comment