Baltic
Dry Index. 1382 -28 Brent Crude 71.41
Spot Gold 2751 US 2 Year Yield 4.12 +0.01
The problem is that you're creating a system of bubble finance where interest rates are so low that people can speculate. An asset value goes up. You put it up as collateral. You borrow against it. You buy more of the asset. You then take the rising asset. You borrow against it again. This is the nature of what's going on in the world. This isn't an excess of real savings. This is an excess of artificial credit that's being fueled by all the central banks.
David Stockman.
In the stock casinos a mixed Asian opening, as stocks continue levitating far above global economic reality.
Next week comes a political reality, as US voters decide which economic disaster policies to inflict on an already struggling global economy.
UK voters and consumers face their own version of economic disaster tomorrow, as His Majesty’s very far left Government impose their first tax, borrow and spend budget on a still largely unsuspecting UK public.
A widely already declared war on 10 million UK pensioners, many of whom are supposed to die off in the coming winter, unable to heat their homes due to HMG scrapping for most their Winter Fuel Payment.
Asia-Pacific markets trade mixed, Nikkei extends
previous day’s gains
Updated Tue, Oct 29 2024 1:06 AM EDT
Asia-Pacific markets traded mixed in spite
of gains on Wall Street as investors looked toward a slate of megacap
technology earnings to keep propelling the Nasdaq Composite to new
heights this week.
Japan’s Nikkei 225 added 0.62%,
extending gains from the day before. This comes after the
ruling Liberal Democratic Party lost its parliamentary majority after
voters cast their ballots on Sunday to determine the control of the lower
house, marking the first time since 2009 that Japan’s ruling coalition lost its
majority.
Japan’s jobless rate for the month of September came in at 2.4%, compared to
2.5% the previous month. The reading is also slightly lower than Reuters’
forecast of a 2.5% climb.
The Kospi lost 0.51% while the
Kosdaq slipped 0.41%. Australia’s S&P/ASX 200 was 0.36%
higher.
Hong Kong’s Hang Seng Index is up 1.21%,
while China’s CSI 300 added 0.17% in its first hour of trade.
Traders in Asia will also monitor
Singapore’s unemployment data.
Overnight in the U.S., stocks jumped.
The S&P 500 gained
0.27% to close at 5,823.52. The Dow
Jones Industrial Average advanced 273.17 points, or 0.65%, to end at
42,387.57. The Nasdaq rose 0.26%, closing at 18,567.19.
This week marks the busiest in the
third-quarter earnings reporting season, and is the final week leading up to
the U.S. presidential election on Nov. 5 and the Federal Reserve’s policy
decision on Nov. 7.
Five of the Magnificent Seven companies —
Alphabet, Microsoft, Meta Platforms, Amazon, and Apple — are set to announce
their latest financial results this week. Traders will also be eyeing the
October jobs report due Friday.
Asia markets live: Nikkei slips, Singapore and Japan unemployment rate
Stock futures are little changed as Wall Street
braces for Big Tech earnings: Live updates
Updated Tue, Oct 29 2024 9:22 PM EDT
Stock futures are muted Monday night as
investors readied for key corporate earnings releases, including reports from
notable tech names.
Dow Jones Industrial Average futures
slipped 35 points, sitting slightly below flat. S&P 500 futures and Nasdaq 100 futures were also
both little changed.
Ford
Motor slid about 6% after the automaker provided full-year guidance
that was on
the low end of its previously set range. On the other hand, North Face
parent VF Corp jumped
23% after posting better-than-expected results.
Those moves come after a winning
session on Wall Street for the three major indexes. Notably, the
blue-chip Dow broke a
five-day losing streak, while the tech-heavy Nasdaq Composite notched its
eighth positive session of the last nine.
Stock investors appeared to welcome
a drop
in oil prices, which came after weekend airstrikes from Israel toward Iran
didn’t hit energy facilities as some expected. But equity gains were capped as
Treasury yields continued
to rise.
“One the one hand, macro conditions right
now are very favorable: resilient growth, disinflation, stimulus and then
relatively healthy earnings,” Vital Knowledge founder Adam Crisafulli said
on CNBC’s “Closing
Bell: Overtime.” “But you have expensive stocks, and then you have
this yield dynamic that’s acting as a headwind.”
Traders will keep an eye on earnings
reports from major companies due on Tuesday as the busiest week of this
earnings season continues. Pfizer and McDonald’s will post results
before the bell, followed by Alphabet, Snap, Reddit, Chipotle and Advanced Micro Devices after
the market closes.
Tech juggernauts Meta Platforms and Microsoft are slated to
report on Wednesday, while Apple is
up on Thursday.
On the economic front, investors will
monitor job openings and labor turnover data due in the morning, the first of
several reports coming this week that will provide insight into the strength of
the job market. Elsewhere, stats on housing prices and consumer confidence are
also expected on Tuesday.
Stock market today: Live updates
In other news, nothing good. And so it starts, the death of the western car industries, forced to sell EVs no one wants or needs?
UK consumers running out of cash and credit?
Volkswagen to close at least three factories in
Germany amid electric car struggles
28 October 2024
Volkswagen bosses are
preparing to shut three German factories and sack “tens of thousands” of
workers, the car giant’s top employee representative has claimed.
The German car giant is also planning to
cut pay by 10pc as part of a far-ranging shake-up, according to the VW works
council, which represents rank and file employees.
Daniela Cavallo, head of the group, told
hundreds of staff about the plans during a meeting at the company’s Wolfsburg
plant on Monday.
Ms Cavallo said: “Management is absolutely
serious about all this. This is not sabre-rattling in the collective bargaining
round.
“This is the plan of Germany’s largest
industrial group to start the sell-off in its home country of Germany.”
Volkswagen
is under pressure to cut costs and remain competitive amid weaker
demand from China and Europe, and as it struggles to fund the shift to electric
vehicles. It is lagging behind competitors in China in the development of
battery-powered cars.
Ms Cavallo said the works council, which
holds half of the votes on VW’s governing supervisory board, mostly agreed with
executives about the scale of the car maker’s problems. But she added: “We are
miles apart on the answers to them.”
She suggested executives had two days to
back away from the proposals or risk strikes.
In a warning to Oliver Blume, VW’s chief
executive, she said that staff could “break off the talks and do what a
workforce has to do when it fears for its existence”.
Her remarks will be seen as a major
escalation of the conflict between Volkswagen’s workers and management over the
company’s future direction.
Ms Cavallo said Berlin needed to urgently
come up with a masterplan for German industry to ensure it does not “go down
the drain”.
A spokesperson for the German government
said: “It is well known that Volkswagen is in a difficult situation. There is
also a constant dialogue with both the employer and employee sides at
Volkswagen.”
Volkswagen employs 680,000 people around
the world. The company recently warned it would have to consider closing German
factories for the first time in its history in order to get the business back
on track.
Last month it was claimed that VW was
looking at cutting as many as 30,000 jobs. At the time, the company refused to
confirm the job cut figures.
Reports came after boss Mr Blume told
employees that the company was abandoning a pledge not to make any lay-offs
until 2029.
Volkswagen was approached for comment.
Volkswagen to close at least three factories in Germany amid electric car struggles
Automaker Ford weakens profit outlook amid price
war, shares fall
28 October 2024
(Reuters) -Ford Motor said on Monday it
expects to hit the lower end of its full-year profit guidance, dropping the
company's shares 5% in after-hours trading, as a price war hits the U.S.
automaker's bottom line.
Ford expects to earn about $10 billion in
earnings before interest and taxes this year, down from its prior range of $10
billion to $12 billion.
"No doubt, there's a global price
war, and it's fueled by over-capacity, a flood of new EV nameplates and massive
compliance pressure," CEO Jim Farley said on a call with analysts.
Rival General Motors beat Wall Street's
expectations when it reported third-quarter results last week and said profit
next year looks similar to this year.
Ford has also been weighed down this year
by high warranty costs and problems with its supply chain, worsened by recent
hurricanes, Chief Financial Officer John Lawler said.
Third-quarter profit fell less than
expected, however.
The company reported third-quarter net
income of $900 million, or 22 cents per share, down from 30 cents a year ago.
Results were hurt by a $1-billion charge it took on cancelling production of a
three-row electric SUV in August.
"Ford and other domestic automakers
are facing headwinds from still-elevated interest rates and well-above-average
inventory levels, which is leading to an increase in incentives and other
measures, which should eat into margins," said CFRA Research analyst
Garrett Nelson.
On an adjusted basis, Ford reported
quarterly profit of 49 cents per share, compared to analysts' average estimate
of 47 cents, according to data compiled by LSEG.
Ford’s commercial and gas-engine divisions
posted combined EBIT of about $3.4 billion, fueling the company’s profits amid
steep EV losses. The company's inventory was higher than its target range, as
it ended the quarter with 91 days of gross stock and 68 days of dealer stock,
Farley said.
Farley has made tough decisions about the
company’s electric-vehicle lineup as competition from Tesla and Chinese
automakers has intensified over the past year. Ford canceled the
highly-anticipated three-row EV, which it dubbed a "personal bullet train,"
saying the vehicle could no longer be profitable in the timeline
required.
Company executives have said that new
vehicles need to be profitable within 12 months of launch to make its
battery-powered business sustainable.
Ford's stock is down about 6% this year,
falling less than Jeep-maker Stellantis' 40% decline as the latter struggles
with slowing sales and profits in North America and announces management
shuffling.
---- Ford, one of the only legacy
automakers to report its EV results separately, is facing around a $5-billion
loss on its electric vehicles this year. It recorded a loss of $1.2 billion in
EBIT in the third quarter on its EVs, bringing its losses on the segment for
the first three quarters of 2024 to $3.7 billion.
The company said it made nearly $1 billion
worth of cost improvements year-over-year, but these gains were largely offset
by industry-wide pricing pressure.
Lawler said pricing pressure on EVs will
remain intense at least until 2026 as automakers flood the market with new
models.
Automaker Ford weakens profit outlook amid price war, shares fall
Car dealer Lookers slumps into the red after £504m
take-private deal
28 October 2024
Lookers, the car dealership giant, has
reported a pre-tax loss of £5m for 2023, a significant downturn from its
pre-tax profit of £73.9m in 2022. The Cheshire-based firm was taken
private in a deal worth over £500m last year.
Despite this loss, newly-filed accounts
with Companies House reveal that Lookers' revenue increased from £4.31bn to
£4.59bn over the past 12 months, as reported by City
AM.
Global Auto Holdings acquired Lookers for
£504m in October of the previous year, leading to its delisting from the London
Stock Exchange.
Over the course of the year, Lookers sold 97,218
new vehicles, marking a 15.8 per cent increase, and 80,880 used vehicles, a 2.2
per cent rise compared to 2022.
A statement approved by the board read:
"The group's trading performance was strong, with all channels showing
revenue growth."
"New vehicle volumes grew 15.8 per
cent, driven by fleet and commercial vehicle sales."
"Due to supply constraints resulting
from the semiconductor shortage in 2022, the OEMs prioritised supply to the
more profitable retail channel which resulted in volume reduction within both
our fleet and commercial vehicle channels."
"As supply restrictions eased in
2023, this pattern was reversed, driving significant growth in these
channels."
"The group's used vehicle volumes
increased 2.2 per cent against prior year performance."
Lookers stated: "Used vehicle margin
was affected by the return of new car supply which eroded profitably through
the year on a comparative basis and is the driver of overall gross profit
decline year on year."
The company also mentioned that
inflationary pressures had a £14m impact on its cost base, resulting in a £14m
increase in underlying operating costs.
Additionally, Lookers noted that higher
interest rates led to a £17m increase in finance costs.
Car dealer Lookers slumps into the red after £504m take-private deal
Mcdonald's UK restaurants take huge hit as profit
plummets by over £100m
28 October 2024
McDonald's UK has seen its pre-tax profits
significantly reduced by over £100m in 2023, despite nearing the £2bn turnover
milestone.
The American fast-food behemoth recorded a
pre-tax profit of £66.3m for its operations in the UK, a stark decrease from
the £170.8m reported in 2022, as reported by City
AM.
Operating profit at McDonald's plummeted
from £165.4m to a mere £10.7m.
Yet, according to the latest filings with
Companies House, the company's turnover saw an upswing from £1.59bn to £1.83bn
during the same timeframe.
Turnover from McDonald's owned restaurants
jumped from £703m to £942m, while income from licensees experienced a marginal
decline from £894.3m to £893.5m.
Inflationary pressures on food, paper, and
utility costs have been cited by McDonald's as factors affecting its financial
performance.
Despite these challenges, McDonald's
remains 'confident' about the future.
A board-approved statement read: "The
level of business and the period end financial position remain satisfactory, in
spite of the ongoing challenges presented by the inflationary environment, both
for the company and the wider Mcdonald's system."
"The directors are confident of being
able to develop the business further in the future."
"Total sales in 2024 have so far
grown since 2023 due to the strength of the brand and the success of delivery
and drive-thru services."
These figures emerge following a report by
City AM that indicated "bold" price increases at a McDonald's
franchise empire had driven a sales surge of over £15m in its most recent
fiscal year.
AG Restaurants, helmed by Andrew Gibson,
is a significant player in the UK's dining sector with 27 establishments
across Glasgow and a workforce
exceeding 3,000. The company has disclosed a turnover of £135.2m for 2023,
marking an increase from the previous year's £120.1m.
Additionally, its pre-tax profit saw
growth, rising from £1.8m to £2.3m. The McDonald's franchisee has indicated
that it intends to mitigate any adverse effects of its price hikes through a
"strong marketing calendar".
Mcdonald's UK restaurants take huge hit as profit plummets by over £100m
Finally, Boeing seeks a miracle rescue.
Boeing to raise up to $24.3 bln to shore up
finances, stave off downgrade
By Utkarsh Shetti October 29, 20245:46 AM GMT
Boeing to raise up to $24.3 bln to shore up finances, stave off downgrade | Reuters
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.
Business
confidence in UK economy falls ahead of Reeves’s maiden Budget
Monday
28 October 2024 6:00 am
Business
confidence has slumped again in the run-up to Rachel Reeves’ maiden Budget as
bosses fret over the state of the
economy,
another survey has shown.
The
closely-watched Lloyds’ Business Barometer fell by three points to 44 in
October, down three points on the month before and dragging the reading to a
four-month low.
The
decline reflected falls in both firms’ confidence in the economy as a whole as
well as their own trading prospects.
Lloyds’
survey is only the latest to point to worsening economic sentiment ahead of the
new government’s first Budget. Last week’s S&P’s purchasing managers’ index
put business confidence at its lowest level this year while consumer confidence
has worsened significantly.
Many
economists have criticised the government’s
gloomy rhetoric,
with Chancellor Rachel Reeves repeatedly warning that she will have to take
“difficult decisions” in the Budget.
Reports
suggest she is looking to raise £40bn through a combination of tax rises and
spending cuts to ensure that public services receive a funding boost.
The
increase in the tax burden is likely to fall most heavily on businesses, with
Reeves set to hike employers’ national insurance and raise
capital gains tax.
Despite
the decrease in confidence, the survey showed that hiring intentions had
actually improved marginally compared to September.
Hann-Ju
Ho, senior economist at Lloyds Commercial Banking, suggested that firms were
actually in a fairly healthy position entering the final quarter of the year.
“Business
sentiment remains above historical levels,” he said. “The increase in hiring
intentions suggests more employers want to grow their
workforce.
“Businesses’
broader economic outlook continues to reflect this rounded picture, and as they
move into the final part of the year, they will look to manage these
considerations effectively,” he added.
Business confidence in the economy falls as Budget nears
Covid-19 Corner
This section will continue until it becomes unneeded.
New
Covid compensation scheme may be set up for 'disabled' after jabs
27
October 2024
A
Covid vaccine compensation scheme could be set up for people who claim they
have been 'left disabled' from the jab.
Wes Streeting, the heath secretary is
considering the new programme to help those who are now suffering from
life-changing conditions as a result of taking the AstraZeneca jab.
This
comes amid calls to overhaul the existing scheme, Vaccine Damage Payment Scheme
(VDPS), as there is concern it cannot handle to high volume of claims, which
latest figures show are more than 15,000.
Those
effected are keen to see the scheme, which was originally set up in 1979,
reform its eligibility criteria and payout structure, as they claim it is 'no
longer fit for purpose'.
While
thousands have been turned down by medical assessors who say there is not
enough evidence of the jab causing harm, payments of £120,000 have been doled
out in 175 cases - fewer than two per cent of those who applied.
Applicants
have been awarded payments for conditions including dangerous blood clots,
inflammation of the spinal cord, excessive swelling of the vaccinated limb and
facial paralysis as well as for strokes and heart attacks.
An
astonishing 97 per cent of successful claims relate to the AstraZeneca vaccine
with just a handful relating to damage caused by Pfizer or Moderna, according
to Freedom of Information requests made by The Telegraph.
One
of the key criticisms cited by campaigners is the all-or-nothing payment of
£120,000.
They
argue the payment doesn't go far enough for those most severely disabled by a
vaccine injury, such as those who have suffered brain injuries, unable to work
and facing ongoing care costs for the rest of their lives.
However,
those who receive a payout under the scheme can still pursue private legal
action against the Government to secure more damages.
Sir
Jeremy Wright MP, the shadow attorney general, said: 'If you are in the very
small minority of those injured [by the Covid vaccine], those people have a
right to expect the state to look after them properly – they were only doing
what the state asked them to do.'
Campaigners
note that the £120,000 figure was set in 2007 and hasn't kept pace with
inflation and the rising cost of living.
According
to figures from the Bank of England, if the sum had increased alongside
inflation payments, it would now be just over £195,000.
Another
criticism is the length of time it takes for victims to get payment.
MailOnline
has spoken to some successful applicants who had to wait nearly two years to
see a penny of the £120,000 sum.
They
said this added to stress of being unable to work due to disability and having
to rely on their savings to survive.
More
New Covid compensation scheme may be set up for 'disabled' after jabs
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.
US deal could
see CO2 battery power 18,000 homes for 10 hrs on single charge
October
25, 2024
Energy
Dome’s advanced CO2 battery, funded by Bill Gates, secured its first US deal
with utility holding company Alliant Energy.
The
firm’s CO2 battery technology enables 24/7 dispatchable solar and wind power,
advancing energy storage and supporting global grid decarbonization with
long-duration storage solutions.
The US
Department of Energy’s (DOE) Office of Clean Energy Demonstrations has awarded
Alliant Energy a federal grant of up to $30 million for the Columbia Energy
Storage Project.
The
200-megawatt-hour project will utilize Energy Dome’s CO2 battery technology.
The first installation is slated for 2026.
“This
visionary battery system, aptly named the “Columbia Energy Storage Project,” is
poised to be a trailblazer in the United States, marking a pivotal stride
towards a more sustainable, reliable, and cost-effective energy future,” said
the firm in a statement.
In
2022, Energy Done set up the world’s first CO2 battery at Italy’s Sardinia, a
renowned tourist spot.
Efficient
energy storage
When
there is an excess of solar energy during the day, the CO2
battery stores it; at night and during peak hours, it releases the
stored energy. Additionally, it will significantly lessen the issue of
lithium-ion battery solutions experiencing performance degradation.
The
CO2 Battery maintains the same performance over its anticipated 25-year
operating life, in contrast to lithium-ion batteries, which see a considerable
decline in performance after around ten years of use. According to Energy Dome,
this implies that the cost of energy storage will be roughly half that of a
lithium-ion battery with a similar amount of storage volume.
Carbon
dioxide undergoes a closed-loop cycle in the company’s CO2 Battery, changing
from gas to liquid and back again. The inflated atmospheric gas holder that
holds CO2 in its gaseous state is the “dome” from which the business derives
its name.
The
technology collects CO2 from the dome and compresses it using electrical power
from the grid to create heat that is transferred to a thermal energy storage
device during charging. Subsequently, the charge cycle is finished by
liquifying the CO2 and storing it in tanks at room temperature.
By
evaporating that liquid, recovering the heat from the thermal energy storage
system, and expanding the hot CO2 into a turbine that powers a generator, the
discharging process reverses the cycle. According to Energy Dome, the CO2
battery can have a storage capacity of about 200 MWh and is capable of powering
18,000 homes for 10 hours on a single charge.
Scalable
energy storage
Energy
Dome began its operations in February 2020 and has progressed
from a concept to full testing at a multi-megawatt scale in just over two
years.
The
CO2 battery offers global scalability by utilizing familiar industrial
components within an innovative and cost-effective framework. Its design allows
for identical deployment in various locations worldwide.
By
selecting standard components, the CO2 battery provides a straightforward and
economical solution. It is a plug-and-play system capable of addressing the
world’s most significant energy challenges, regardless of location.
According
to the firm, the idea advances efforts to speed up the global energy transition
by offering a workable way to store significant volumes of intermittent
renewable energy, facilitating a smooth transition to a cleaner grid.
“Our CO2 battery
is a tangible solution, available today, that will change how sustainable
long-duration energy storage is adopted, making it more accessible and
impactful for communities nationwide,” said Claudio Spadacini, CEO of Energy
Dome, in a statement.
The
proposed facility is set to be built south of Portage, Wisconsin, in the Town
of Pacific, near the existing Columbia Energy Center. Alliant Energy plans to
submit project proposals to the Wisconsin Public Service Commission in early
2024. Construction is scheduled to begin in 2025, with completion expected by
2026.
US deal could see
CO2 battery power 18,000 homes for 10 hrs on single charge
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
The
laws of economics tell us that the expansion of the central state can't go on
forever. Its limit is reached when the looted turn on the looters.
Llewellyn Rockwell.
