Baltic
Dry Index. 3195 +06 Brent Crude 107.02
Spot Gold 4616 Spot Silver 81.76
US 2 Year Yield 4.00 +02
US Federal Debt. 39.244 trillion
US GDP 32.120 trillion.
Good decisions come from experience. Experience comes from making bad decisions.
Mark Twain
Day two of the Great Pow Wow in Beijing, with almost nothing to show for it so far, except for team Trump’s claim that China will buy 200 Boeing planes, unconfirmed by China so far. Team Trump had earlier hinted that China would buy 500 Boeing planes.
So far, no word on any Chinese soybean purchases.
Not to worry though, while the global economy increasingly struggles from oil inflation, supply chain disruption, and a growing hit to tourism, the Great Stock Casino Bubble, bubbles on.
Trump insists US-China relations are in a good
place as he wraps up trip
Fri, 15 May 2026 at 5:24 am BST
President Donald Trump is insistent that
US-China relations are good and getting better despite deep differences on key
issues.
The US president started his last day in
Beijing by boasting on social media that Chinese leader Xi Jinping had
“congratulated me on so many tremendous successes” and had been referring only
to his predecessor, former president Joe Biden, when he “very elegantly
referred to the United States as perhaps being a declining nation”.
But Mr Trump’s rosy outlook on the
US-China relationship collides with some difficult truths about the thorniest
issues between the two superpowers.
Beijing has shown little public interest
in US entreaties to get more involved in solving the conflict in Iran, even
though Mr Trump said in an interview with Fox News’ Sean Hannity that Mr Xi
had, in their conversations, offered to help.
And the White House believes China can
still do more to stem the flow of Chinese-made precursor chemicals into Mexico,
used to make illicit fentanyl that has wreaked havoc on many US communities.
Mr Xi, meanwhile, warned Mr Trump during
private talks that their differences on the self-ruled island of Taiwan, if
handled poorly, could hurtle the world’s dominant powers toward “clashes and
even conflicts,” according to Chinese government officials.
Mr Xi welcomed Mr Trump at his official
residence, Zhongnanhai, on Friday for the final talks of the summit before the
US leader makes the long journey back to Washington.
The compound is wrapped around two manmade
lakes that had been built for the pleasure of emperors.
Zhongnanhai is often compared to the White
House, the Kremlin or South Korea’s Blue House.
But unlike the other presidential
residences, Zhongnanhai does not serve as the main venue for diplomatic visits.
The invitation appears to be an attempt by
Mr Xi to extend a personal touch to a US leader who appreciates big gestures.
“I think he’s a warm person, actually. But
he’s all business,” Mr Trump said of Mr Xi in the Fox News interview. “There’s
no games.”
Mr Xi also welcomed former president
Barack Obama to Zhongnanhai in 2014. The two leaders took an evening stroll and
had dinner there.
Before the final talks got Friday
underway, China’s foreign ministry issued a statement asserting that Mr Xi and
Mr Trump’s meetings were injecting “stability” into the world.
Trump
insists US-China relations are in a good place as he wraps up trip - Yahoo News
UK
South Korea’s Kospi retreats from 8,000 milestone
as Trump-Xi talks enter second day
Published Thu, May 14 2026 7:46 PM EDT
South Korea’s benchmark Kospi gave up
earlier gains to fall more than 3% on Friday, retreating from a fresh record
high above 8,000 as broader Asia-Pacific markets fell. Investors were tracking
the second day of high-stakes talks between U.S. President Donald Trump and
Chinese President Xi Jinping.
The small-cap Kosdaq was down 2.61%.
Japan’s Nikkei 225 declined
1.1% and the Topix lost 0.13%. In Australia, the S&P/ASX 200 was little
changed.
Hong Kong’s Hang Seng index slid 0.89%
while the CSI 300 remained flat. India’s Nifty 50 was up 0.2%.
The Kospi topped
7,000 for the first time on May 5, after index heavyweight Samsung
Electronics reached a record high, crossing $1 trillion in market
capitalization.
The record-breaking streak comes
amid concerns
of concentration risks, particularly in artificial intelligence stocks.
Samsung Electronics and SK Hynix together made up a record 42.2% of the Kospi
in May, according to Manulife Investment Management.
The earlier gains in South Korea’s market
reflected investor optimism that the Trump-Xi talks could ease tensions around
trade and technology exports, particularly for chipmakers and AI-related
stocks.
Shares of Samsung Electronics fell by more
than 5% after its labor union said it would proceed with its planned 18-day
strike from May 21 involving more than 45,00 workers, even
though the company has proposed resuming wage talks without preconditions.
The union said it was willing to return to
negotiations after June 7.
Trump arrived in Beijing on Wednesday for
the closely watched summit, joined by a delegation of American business
leaders, including Tesla CEO
Elon Musk and Nvidia chief
Jensen Huang.
Xi warned Trump on Thursday that
Washington and Beijing could face “clashes and even conflicts” if the sensitive
issue of Taiwan independence is mishandled.
Failure to handle the matter “properly”
could place “the entire relationship in great jeopardy,” Xi was quoted as saying.
U.S. stock futures were little changed on
Thursday night. Dow futures fell
by 10 points, or 0.02%. S&P
500 futures dipped 0.02%, and Nasdaq 100 futures rose
0.06%.
Overnight in the U.S., the Dow Jones Industrial Average retook
50,000 after Cisco Systems reported
strong earnings. The 30-stock index popped 370.26 points, or 0.75%, to end at
50,063.46.
The S&P 500 climbed 0.77% and
closed at 7,501.24, while the Nasdaq
Composite gained 0.88% to 26,635.22. Those two indexes scored fresh
all-time intraday highs and record closes.
Asia
markets, Trump-Xi: Nikkei 225, Kospi, Hang Seng Index
Oil prices jump after Trump says China agreed to
buy U.S. crude following Xi talks
Published Thu, May 14 2026 10:43 PM EDT
Oil prices rose Friday after U.S.
President Donald Trump said
China has agreed
to purchase oil from America, following talks with Chinese
leader Xi Jinping.
International benchmark Brent crude futures
for July gained 1.49% at $107.30 a barrel. U.S. West Texas Intermediate futures for
June advanced 1.55% at $102.74 per barrel.
“They’ve agreed they want to buy oil from
the United States, they’re going to go to Texas, we’re going to start sending
Chinese ships to Texas and to Louisiana and to Alaska,” Trump said in a
pre-recorded interview with Fox News, after his meeting with Xi.
China has not confirmed the energy
purchases. CNBC reached out to Chinese authorities for comment but did not
receive a response before publication.
The gains also came after both presidents
agreed that the Strait of Hormuz must remain
open.
“President Xi also made clear China’s
opposition to the militarization of the Strait and any effort to charge a toll
for its use, according to a statement by a White House official on Thursday.
Meanwhile, U.S. Treasury Secretary Scott
Bessent told CNBC in an interview on
Thursday that China will work behind the scenes to help reopen the Strait of
Hormuz. “It’s very much in their interest to get the strait reopened,” Bessent
said.
Oil
prices jump after Trump says China agreed to buy U.S. crude following Xi talks
Bond market believes Fed behind the curve on
inflation as Warsh takes over
Published Thu, May 14 2026 3:25 PM EDT
Bond market investors believe the Federal Reserve needs to
play catch up on inflation as its new leader takes over, according to Ed
Yardeni, president of Yardeni Research.
Wall Street expects the central bank’s
Federal Open Market Committee to relinquish its bias toward easing rates at the
policy meeting next month, Yardeni said. Bond traders are hoping that is
replaced with a slant toward tighter monetary policy, the economist said.
Yardeni’s evidence: The 2-year U.S. Treasury yield is
above the federal funds rate, or FFR. When this happens, investors are hinting
that they do not believe the FFR is high enough to bat down inflation, he said.
“The market is signaling that the current
FFR is too low to curb inflation and may have to be hiked,” Yardeni wrote in a
Wednesday note to clients.
The Fed may have to show a willingness to
hike interest rates after five years of inflation running above its annual
target of 2%, Yardeni added.
“A simple removal of the easing bias may
not be enough,” he said.
Yardeni’s comments follow a series of
inflation readings this week showing a reacceleration in the wake of the Iran
War. That can complicate the outlook for Kevin Warsh, President Donald Trump’s pick to succeed
Fed Chair Jerome Powell.
April’s consumer price index showed
an annual
increase of 3.8%, the highest rate since 2023. Wholesale inflation jumped
6% over 12 months in April, its fastest clip since 2022.
Warsh, who was confirmed
by the Senate this week, has promised a “regime
change” at the central bank. Trump has long pressured the Fed to lower
interest rates, arguing that decreased borrowing costs would benefit the
economy.
But Fed funds futures traders are pricing
in no rate cuts for the remainder of the year, according to CMEGroup’s FedWatch tool. The likelihood of a rate
hike priced
in by the market jumped over recent days.
Bond
market: Fed behind the curve on inflation as Warsh takes over
Xi Jinping’s Secret Ability: Speaking
Fluent English?
March 5, 2024 by byma
Xi Jinping’s Secret Ability: Speaking
Fluent English?
In recent years, there has been much
speculation surrounding Chinese President Xi Jinping’s ability to speak fluent
English. While Xi Jinping is known to be well-versed in Mandarin, the official
language of China, many have wondered if he also possesses the skill of
speaking English fluently. In this article, we will delve into this intriguing
topic and explore the evidence supporting Xi Jinping’s alleged proficiency in
the English language.
Can Xi Jinping Speak English?
Historical Context
To understand Xi Jinping’s purported
ability to speak English, it is essential to examine his background and
education. Born in Beijing in 1953, Xi Jinping grew up during a tumultuous
period in Chinese history, marked by political upheaval and social change.
Despite his privileged upbringing as the son of a prominent party leader, Xi
Jinping faced many challenges on his path to leadership.
Educational Experience
Xi Jinping received a comprehensive
education in China, including a degree in Chemical Engineering from Tsinghua
University. However, little information is available on his English language
proficiency during his formative years. It is unclear whether Xi Jinping had
the opportunity to learn English extensively during his early education.
----Evidence of Xi Jinping’s English
Skills
Public Appearances
Despite the limited public instances of Xi
Jinping speaking English, there have been a few notable occasions where he has
demonstrated his language abilities. For example, in a 2015 speech at the
United Nations, Xi Jinping delivered a brief opening statement in English,
showcasing his willingness to engage with an international audience.
Diplomatic Interactions
In diplomatic settings, Xi Jinping has
interacted with English-speaking leaders and officials, suggesting a basic
understanding of the language. While interpreters are often present during
these exchanges, Xi Jinping’s direct communication with foreign counterparts
implies a level of English proficiency.
Personal Accounts
Some individuals who have interacted with
Xi Jinping in private settings have reported that he is capable of conversing
in English. These anecdotal accounts offer insights into Xi Jinping’s
linguistic abilities beyond his public appearances.
More
In other news.
Air boss warns airlines cannot continue ‘absorbing
cost’ of jet fuel shortages
Thu, 14 May 2026 at 10:13 am BST
Airlines are not able to continue
“absorbing the cost” of
disruption stemming from the closure of the Strait of Hormuz, according to the
head of the International
Air Transport Association (IATA).
Willie Walsh, IATA's director
general, told the BBC that while there is no immediate cause for alarm over potential jet
fuel shortages,
an inevitable
consequence of
rising fuel prices will be an increase in air ticket costs.
“There’s just no way airlines can absorb
the additional costs they’re experiencing,” he said.
“There may be some instances where
airlines will discount to stimulate some traffic flow… but over time it’s
inevitable that the high price of oil will be reflected in higher ticket
prices.”
While Mr Walsh did not think there would
be widespread cancellations, he added: “I think the concern will be that if
sufficient alternative supply isn’t sourced, there may be some shortages when
we get into the peak summer period.”
Last week, British Airways’ parent
company IAG warned its
profits will be hit as it expects to spend about two billion euro (£1.72
billion) more than planned on fuel this year.
More
Air boss warns
airlines cannot continue ‘absorbing cost’ of jet fuel shortages - Yahoo News UK
Iran war fallout forces Singapore Airlines-backed
Air India to cancel 27% of international flights
Published Thu, May 14 2026 4:51 AM EDT
Singapore Airlines-backed Air India
will substantially
cut international flights during the peak June to August travel period, as
the Iran war-led airspace restrictions and record-high jet fuel prices weigh on
the carrier’s operational viability.
The Airline is cutting nearly 140 flights
per week, which roughly translates to 27% of its total international flights,
according to aviation sector experts.
“These changes are aimed at improving
network stability and reducing last-minute inconvenience to passengers,” Air
India said in a statement on Wednesday. Air India, co-owned by Tata Group and
Singapore Airlines, will fly fewer flights to North America, Europe, Australia,
and Asia.
The company is India’ second-largest
airline,
with 3.6 million seats and a 14% share of the market, according to aviation
industry data provider OAG.
Indian carriers have been among the worst
affected by
the conflict in the Middle East, experts said, as they face closure of airspace
over Iran, Iraq, Israel, Kuwait, Qatar, and the UAE. The country was
already facing airspace usage curbs in Pakistan, as well as China, highlighted
Sanjay Lazar, aviation expert and chief executive at Avialaz Consultants.
“Increased flying hours and added crew
costs plus extra fuel used for the trip,” have made the sector totally unviable
now, Lazar said, adding that jet fuel in India is up to 40% more
expensive than in global hubs, due to local taxes.
Last month, the Federation of Indian
Airlines had warned that carriers in the country were “under
extreme stress and
on the verge of closing down or stopping operations,” as per local media
reports.
More
Iran war fallout
forces Singapore Airlines-backed Air India to cancel 27% of international
flights
Hoarding adds to economic damage triggered by Iran
war
From Diet Coke to diesel, governments
around world battle to contain wave of stockpiling
14 May 2026
With the stand-off in the Strait of Hormuz
in its third month, governments around the world are struggling with a shared
dilemma: how to prevent hoarders worsening shortages of products from petrol to
syringes.
In scenes reminiscent of pandemic-era
panic buying, South Koreans rushed to buy plastic rubbish bags after the Iran
war led to the closure of the strait, disrupting global supply chains.
Australians cleared the shelves of jerry
cans as drivers and farmers vied to stock up on fuel in rural areas. Social
media posts on possible shortages of condoms went viral in China last
month.
Companies are hoarding too to secure vital
supplies, exacerbating shortages and forcing governments to step in.
South Korean police, for example, have
launched a crackdown on firms suspected of hoarding syringes, as a shortage of
naphtha threatens medical supplies. Meanwhile, in India, online influencers are
driving a craze for ticketed Diet Coke parties, as limited supplies of the
canned drink give it a new cachet.
“We value things more highly when they are
limited — and people’s perceptions of scarcity can be exacerbated by social
media,” said Elizabeth Costa, chief of innovation and partnerships at the
UK-based Behavioural Insights Team, a consultancy that has studied ways to
“nudge” people to prepare for crises ahead of time.
Yet while toilet roll shortages at the
start of the coronavirus pandemic were an avoidable product of panic buying,
global shortages of oil and other essentials now look all too real, which is
giving households, companies and governments compelling reasons to stockpile
before supplies dry up.
The challenge for policymakers is how to
minimise the economic pain caused by hoarding, while making sure that poorer
households and countries can access essentials.
Economists understand the instinct for
consumers to buy before prices rise. “I went to the petrol station to fill up
my car — it’s perfectly natural,” said Mauro Pisu, a senior economist at the
OECD, who has been tracking the measures governments are taking in response to
the energy price shock driven by the Middle East conflict.
He and other economists argue that, as far
as possible, governments should resist the urge to impose controls to prevent
hoarding. They should instead allow market mechanisms, such as higher prices,
to prompt people to change their behaviour and cut demand.
“It will be important to let consumers
behave as they think best and make sure that they face the right price,” Pisu
said.
Many governments are doing the opposite.
Among the more than 50 countries that the OECD is monitoring, the most common
response has been to cut fuel duties or impose direct controls to keep prices
down. That approach was storing up trouble, Pisu said.
“If governments keep prices low to keep
consumers happy in the short term . . . it’s clear this will make shortages
more likely and acute,” he said.
More
Hoarding adds to
economic damage triggered by Iran war
Global Inflation/Stagflation/Recession
Watch.
Given
our Magic Money Tree central banksters and our spendthrift politicians.
UK
grows 0.6% in the first quarter — before the Iran war really started to hit
global economy
Published
Thu, May 14 2026 2:05 AM EDT
The
U.K. economy grew 0.6% in the first quarter, according to preliminary
figures from
the Office for National Statistics on Thursday.
It
matches what economists polled by Reuters expected for the January-March
period, and follows revised
growth of 0.2% in the fourth quarter.
“Growth
picked up in the first quarter of the year, led by broad-based increases across
the services sector,” Liz McKeown, director of Economic Statistics at the ONS,
commented on X on Thursday.
Production also grew slightly, she added, and while construction returned to
growth, that was only partly reversing weakness at the end of last year.
There
were indications that the Q1 data could be positive after a revised 0.4%
expansion in February, but the Iran war is expected to weigh on macroeconomic
data going forward. The economy grew 0.3% in March, the ONS said Thursday.
The
conflict between Iran and the U.S. has since put global energy supply chains
under severe strain because of the effective closure of the Strait of Hormuz
maritime passage, through which around 20% of the world’s oil and gas was
transited before the war.
More
UK grows 0.6% in
the first quarter of 2026
Water costs are rising faster than inflation — and
sending bills soaring
The cost of water and related services is rising twice as fast as inflation while utilities scramble to cope with escalating droughts and more intense storms.
May 13, 2026
When the reservoirs that provide water to
Corpus Christi, Texas, dropped to just a tenth of their full capacity,
officials knew they needed to take drastic action. Forecasts projected the
city, which had entered its fourth year of drought, could run out of water in a
matter of months.
So the city council approved nearly half a
billion dollars to seek out new water sources, including paying a
contractor almost
40 percent more to speed up construction of a nearly $500 million groundwater
project for which it didn’t yet have the necessary permits.
To fund this 11th-hour spending, residents
will likely see their water rates double over the next few years, according to
city manager Peter Zanoni — putting Corpus Christi among countless American
communities whose water costs are on the rise as the planet warms.
As utilities cope with weather extremes by
scrambling to repair their infrastructure and tapping new water sources, the
cost is beginning to show up in residents’ bills. Between 1998 and 2020, the
average cost of water, sewer and trash collection services increased more than
twice as much as the overall U.S. consumer price index, according to data from
the Bureau
of Labor Statistics.
“This drought has been punishingly
severe,” Zanoni said. “And it led us to this position where ... we have no
choice.”
Across the country, damages driven by
climate change have brought once-reliable utilities to their knees. Flooding
from supercharged storms has ravaged the aging pipes that deliver water to
cities from Seattle to Asheville, North Carolina. Longer and more intense
droughts have triggered restrictions on water use from Florida to Colorado. Within 50
years, a
2019 Forest Service study found, the nation’s demand for water could
periodically outstrip supply in nearly half of U.S. freshwater basins.
Water has long been one of the most
affordable utility bills for American households, said Megan Bondar, a water
utility analyst at the market research firm Bluefield Research. Most
communities get their water from relatively close rivers, aquifers and reservoirs,
so the cost is not subject to global forces, such as wars or supply chain
issues, that can send gas and food prices soaring. Water use is also fairly
predictable, making it easier for utilities to plan investments and implement
rate increases accordingly.
But climate change is increasingly
battering utilities with weather — and costs — they did not plan for.
More
Water costs are
rising faster than inflation — and sending bills soaring - The Washington Post
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.
Gujarat builds 870 MW battery power backup network to stabilise
renewable energy grid
May 11, 2026
Gujarat has initiated battery storage
systems at five locations in the state, with a total capacity of 870 MW, to
maintain the stability of the renewable power grid, officials said on Saturday.
Battery Energy Storage Systems (BESS)
are essential for storing electricity generated from solar and other renewable
sources. They help manage additional load and maintain grid stability.
"Gujarat has initiated battery
storage systems at five locations with a total capacity of 870 MW," an
official release stated.
The state has also registered 13
projects across Ahmedabad, Gandhinagar, Banaskantha, Patan and Kutch districts
to set up additional battery storage systems, it said.
Modhera in Gujarat, India's first solar
village, has launched the country's first BESS integrated with a solar power
plant, it said.
"Under the leadership of Chief
Minister Bhupendra Patel, the state has continued to advance in this direction
and has strengthened its position among the leading states driving battery
storage systems in India," the release said.
Recently, a battery storage system was
commissioned at Charal in the Sanand taluka of Ahmedabad, it said.
Four systems are operational at Modhera
in Mehsana and Lakhpat in Kutch. The state government has also included
advanced energy storage systems as a key component in the Gujarat Integrated
Renewable Energy Policy, 2025, the release said.
Accordingly, standalone battery storage
projects, works linked with new renewable energy installations, and those
integrated with existing renewable energy systems are being approved, it said.
Once the Standard Operating Procedure is
approved, registrations for battery storage will open for commercial and
industrial users, it said, adding that the move will allow them to set up
battery storage alongside their solar or wind projects.
The state government is developing
battery storage systems across Gujarat, with companies being invited in through
a competitive bidding process.
GETCO (Gujarat Energy Transmission
Corporation) and power distribution companies strategically identify locations
for battery storage systems based on grid capacity and operational
requirements, the release said.
Power generation from solar and other
renewable sources fluctuates throughout the day. Excess energy generated during
peak hours can be stored and supplied later during periods of high demand,
especially in the evening when solar output declines. Battery storage systems
help reduce stress on the grid and improve grid stability, it added.
Gujarat builds 870 MW battery power backup network to stabilise renewable
energy grid
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt Clocks
(usdebtclock.org)
Another weekend and no end in sight to the
closure of the Strait of Hormuz. Bad things will start happening fast in the
global economy by month-end. Have a great weekend everyone.
In tomorrow’s YouTube section, all types of
radar explained, doing the impossible in maths.
Facts are stubborn, but statistics are more pliable.
Mark Twain
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