tybs
Iron Ore, Steel Hit All Time High As Monster Commodity Rally Breaks Records
While most of the attention in recent days has focused on copper, overnight both Iron ore and steel climbed to records as Chinese investors returned from a three-day holiday and sparked a furious rally.
Spot iron ore prices topped $200 a ton for the first time ever, as futures in Singapore and China climbed. Iron ore with 62% content hit $201.15 a ton on Thursday, according to Mysteel. Futures in Singapore jumped as much as 5.1% to $196.40 a ton, the highest since contracts were launched in 2013. In Dalian, prices closed 8.8% higher. The story is familiar: steel demand is soaring as economies emerge from covid lockdowns just as the world’s biggest miners have been hampered by operational issues, curbing ore supply.
The boom as Bloomberg notes, comes even as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Instead, those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs. "China’s plan to cut steel output is not showing any success,” wrote RBC analyst Kaan Peker. While steel production outside China has been slow to ramp up, output should start to recover from late in the second quarter, he wrote.
Meanwhile, according to Fitch, the rally has more room to run, though prices will likely grind lower during the second half of 2021 as supply improves and demand growth slows. There’s also a risk that China could engage in policies that may stymie the rise in iron ore prices abruptly, it said. As a reminder, a similar surge in copper prices which pushed them above $10,000 last week and set to make a new all time high, has unleashed havoc on China's copper-reliant economy, as "some Chinese manufacturers of electric wire have idled units and delayed deliveries or even defaulted on bank loans, according to a survey by the Shanghai Metals Market." Meanwhile, end-users such as power grids and property developers have also been pushing back delivery times, unable to pay for the metal, while producers of copper rods and pipes saw orders slump this week, said the researcher."
Indeed, it's all fun and games as long as leveraged speculators can keep piling on even more leverage to push the price higher, but to buyers of the end product, the price surge is nothing short of catastrophic. The Thursday surge in iron ore came after Beijing said that it was suspending a ministerial economic dialog with Australia. While a largely symbolic move, ties have worsened in recent years and China has hit Australian barley and wine with crippling tariffs and told traders to stop buying commodities including copper, sugar, timber and lobster. So far iron ore has been spared in the spat, as the Asian nation relies on Australia for about 60% of its imports. Should iron be swept up in the growing trade war, there is no telling how high its price will rise.
Meanwhile, on the steel front, rebar closed at the highest since futures started trading in 2009..... and hot-rolled coil was at the highest since contracts were launched in 2014.
https://www.zerohedge.com/markets/iron-ore-steel-hit-all-time-high-monster-commodity-rally-breaks-records
Tesla Permabull Baillie Gifford Dumped 40% Of Its Stake In Q1
Baille Gifford and company has been one of the most ardent Tesla bulls over the course of the last few years, sticking with Musk through thick and thin, and vowing that it would always be a supportive shareholder refusing to sell its shares even when many others did.
But now, perhaps not unlike Tesla's relationship with China, it looks as though the honeymoon could be over. The firm appears to have dumped 40% of its stake in Tesla in Q1 2021. It previously held more than 27 million shares of Tesla. In a Form 13F filed on Thursday, we learn that that Baillie Gifford sold 11,088,110 shares of Tesla in Q1, according to WhaleWisdom. This leaves the firm with a 1.68% stake in the company. Recall, back in September 2020 when Baillie Gifford's holdings in Tesla fell under 5%, the firm said they would remain significant holders in the name:
Anderson said Baillie Gifford would remain ‘significant shareholders for many years ahead’.
‘Tesla no longer faces any difficulty in raising capital at scale from outside sources but should there be serious setbacks in the share price we would welcome the opportunity to once again increase our shareholder,’ he said.
It looks like Baillie Gifford could be rethinking that strategy.
https://www.zerohedge.com/medical/baille-gifford-dumps-11-million-tesla-shares-q1-2021-13f-indicates
SAM277 USAF C-32A departed Kyiv, Ukriane west
Secretary of State departing Kyiv after....
Blinken in Ukraine reaffirms US support amid Russia tensions
U.S. Secretary of State Antony Blinken met with top Ukrainian officials in Kyiv Thursday and reaffirmed Washington’s support for the country in the wake of heightened tensions with Russia, fueled by its recent troop buildup near the borders with Ukraine. The top American diplomat met with Ukrainian President Volodymyr Zelenskyy and reiterated the U.S.’s commitment to Ukraine’s “sovereignty, territorial integrity and independence,” while also underscoring the importance of Ukraine’s efforts to tackle widespread corruption and carry out reforms.
https://apnews.com/article/europe-ukraine-government-and-politics-cdfd9b277f6bade5697e042742987939
FORTE10 USAF Global Hawk Q-4B drone south of the departing SAM
Merkel Breaks With Biden, Opposes WTO Plan To Waive Vaccine IP Protections
Stocks are surging Thursday on reports that German Chancellor Angela Merkel has reportedly announced that she will oppose a proposal to waive IP protections for COVID-19 vaccines. The decision represents a major break with the Biden Administration, perhaps the biggest rift between Berlin and Washington since President Trump left office.
MERKEL OPPOSES BIDEN PLAN TO WAIVE CORONA VACCINE PATENT
According to a spokeswoman, the plan would create "severe complications" for the production of vaccines, according to German government spokeswoman. Biden's top trade rep revealed yesterday that the White House had decided to back the proposal for a waiver at the WTO, breaking ranks with a host of developed countries to join a host of developing nations in a conflict between rich and poor nations. Shares of vaccine makers and biotech stocks more broadly sold off on news that Biden was backing the waiver. But they've bounced back on reports of Merkel's opposition. The Nasdaq biotech stocks trimmed their losses, leading the index higher, while Moderna erased some of its losses. The news dragged US stocks higher, reversing the losses triggered by news of Biden's support for the proposal, which was originally put forward by India and South Africa. The countries are pushing for resolution of the issue by December.
Analysts at BofA pointed out that waivers are "not an existential threat.." but instead a "relatively modest threat" for the biotech sector given: (1) high barriers to vaccine development.. (2) a short window for competitors to contribute to supply given that $PFE $MRNA expect to .. produce >9B doses by YE22 .."
It still remains to be seen whether other major developed powers, like Japan, Norway and the UK, will weigh in on the proposal.
https://www.zerohedge.com/markets/merkel-breaks-biden-opposes-wto-plan-waive-vaccine-ip-protections
https://finance.yahoo.com/quote/%5EDJI
https://www.kitco.com/charts/livegold.html
https://www.kitco.com/charts/livesilver.html
Liberty steel owner in talks over £200m lifeline
The owner of Liberty Steel is in talks about a loan facility from California-based investment firm White Oak Global Advisors. The arrangement is at a preliminary stage but a skeleton agreement - a so called "term sheet" has been drafted.
Any loan would need the approval of Gupta Family Group's creditors which include Credit Suisse and Tata Steel. GFG has been scrambling to raise new financing since its major financial backer Greensill Capital went bust in early March, which threw the future of Liberty Steel and its 3,000 workers into doubt. A further 2,000 people work at other GFG steel sites in the UK.
Mr Gupta has already asked the government for £170m of support which has been rejected. Sources close to the matter say the injection of new money would increase the chances of Liberty's creditors recovering a greater portion of the cash owed to them, as it would potentially allow Liberty to return to full production and therefore benefit from higher steel prices. The agreement is still subject to further due diligence by the lender and there is no guarantee the loan will materialise. White Oak and GFG declined to comment.
The government has pledged to preserve Liberty Steel in some form and says it will consider "all options". In April, Business Secretary Kwasi Kwarteng told the BBC said he wanted to give GFG more "time to find finance". But Labour has called for it to step in before the firm collapses, not after, to save thousands of supply chain jobs and millions of pounds. In the meantime, the clock is ticking as "victims" of the Greensill collapse prepare their claims to liquidate some of the assets Gupta pledged to Greensill to keep the cash flowing. Applications to compel the liquidation (winding up orders) of three Liberty Steel group companies have been filed and were originally due to be heard by a judge this week.
Insolvency experts say winding up orders are the "nuclear option" for creditors trying to get their money back and their very existence will severely hamper Mr Gupta's own attempts to save the business.
https://www.bbc.com/news/business-57008206
American Express puts $40 million into a fund to provide loans to small business owners of color
Helping small businesses owned by people of color, immigrants and women recover from the Covid pandemic is the goal of a $40 million investment American Express is making with Accion Opportunity Fund.
The loans, which started going out this week, range from $5,000 to $100,000, depending on business need. The average is expected to be around $28,000 according to forecasts from the nonprofit fund, which aims to help build a financially inclusive world. “Our intention is to look at underfunded small businesses that are really looking to get stronger, to reopen, to stabilize and grow in 2021 and beyond,” Luz Urrutia, CEO of the Accion Opportunity Fund, told CNBC. ”[Businesses] we know are trying to invest, buy inventory, perhaps pivot and they need reasonable terms and credit to get back on their feet.”
To qualify for the loans with 12 to 60 month terms, an applicant must be in business for 12 months, have proof of $50,000 in revenue per year and own at least 20% of the business. Applicants with low FICO credit scores will be considered, but their credit rating will be a factor in determining the loan’s interest rate, which can range from 5.99% to 25.99%.
Underfunded small business owners often use cash advances or other products from “alternative” lenders with an average interest rate of 94%, according to Accion research.
“We specialize, particularly in businesses that don’t have the traditional documentation that don’t fit nicely into traditional credit boxes of much larger lenders like American Express,” said Urrutia, who spent her career in lending, including 18 years at Wachovia Bank before it was acquired by Wells Fargo. “FICO for us is a data point, but if a customer doesn’t have a FICO score. It’s OK. We will still loan if they meet other criteria. That takes specialized lending. A lot of the traditional mainstream lenders really don’t have the capacity,” she said.
Black-owned businesses will be a focus on the Accion loan program.
Last fall, American Express announced a $1 billion plan, which included a pledge to provide capital and financial education to 250,000 Black small businesses and provide $25,000 grants to Black female entrepreneurs in partnership with nonprofit IFundWomen.
moar
https://www.cnbc.com/2021/05/06/american-express-puts-40-million-towards-loans-to-small-businesses-of-color.html
US-China relations: Biden’s trade team set for first talks to discuss phase one deal
US Trade Representative Katherine Tai is expected to talk to her Chinese counterpart Liu He soon to review the agreement. Topics up for discussion likely to include the Chinese commitment to buy US$200 billion of goods and intellectual property protections.
Top trade negotiators from China and the Biden administration may hold their first conversation soon to review the phase one trade deal
, two sources familiar with the discussion said.
“The talk at the principal level may come soon. Both sides need to review the progress of the deal and put on the table the divergence and conflicts”, said one of the sources.
Katherine Tai,
who was sworn in as the US Trade Representative on March 18, has held over 20 virtual meetings with her counterparts, covering all major economies apart from China.
The last time the two biggest economies discussed the phase one deal – a two-year agreement signed in January last year that took effect one month later – was in August last year.
The deal stipulates that senior level consultations take place every six months. Tai said on Wednesday that she expects to engage “in the near term” with the Chinese side, led by vice-premier Liu He, to assess the implementation of the trade deal. Tai said last week that her office has yet to start a comprehensive review of US trade policy toward China, but she would closely monitor how China follows through on its commitments.
China agreed to increase imports from the US by at least US$200 billion over the two years covered by the deal in exchange for the removal of tariffs on its exports to US, but actual purchases have fallen behind, partly due to the coronavirus pandemic.
https://www.scmp.com/news/china/diplomacy/article/3132486/us-china-relations-bidens-trade-team-set-first-talks-discuss
tried to 'splain some of that with Gates/Dominion/server traces on election night etc
They just will not hear it at all.
82-8000 USAF 747 on descent for Lake Charles LA with 09-0017 behind
02-5001 USAFSOC C-32B departed Bragg after quick ground stop sw
RCH596T USAF C-17 Globemaster departed Buckley AFB after a ground stop-inbound from Travis AFB, CA
The handler "Jill" went to Las Vegas after Salt Lake City and is heading to Ft. Carson later
JCPenney cuts hundreds of jobs
Department store chain J.C.Penney has slashed hundreds of jobs as its new owners try to reshape the company that emerged from bankruptcy in late 2020.
J.C.Penney’s retail and operating assets were acquired by Brookfield Asset Management Inc. and Simon Property Group after the company sought protection in bankruptcy court at the beginning of the pandemic. Despite new owners, the woes continue for the ailing company, which cut 650 jobs last week as a way to streamline operations. The move impacted store, field and corporate teams. However, less than 1.5% of its total associate base was affected, the company told FOX Business.
"After months of operational review by our new owners, Simon Property Group and Brookfield Asset Management, JCPenney has adjusted our structure to better meet our strategic priorities," J.C. Penney said in a statement to FOX Business. "We have streamlined our organization, resulting in the elimination of positions across our corporate, field, and stores teams." The company said the layoffs were a "necessary step to ensure the long-term success" of the company.
However, the company focused on eliminating open positions first and tried to offer alternative positions to affected employees when possible.Last May, the company became one of the largest retailers to seek bankruptcy protection during the pandemic amid a wave of store closures forced by the spread of COVID-19 infections in the U.S.
As part of its efforts to restructure under Chapter 11, the company planned to permanently close nearly a third of its 846 stores over the next two years, which would leave it with just over 600 locations.
https://www.foxbusiness.com/lifestyle/jcpenney-job-cuts-jobs-bankruptcy
IMF reaches staff level agreement with Honduras, proposes more support
The International Monetary Fund said on Thursday it reached a staff-level agreement with Honduras and proposed to raise total support to $769 million to help the central American country recover from two hurricanes and the coronavirus pandemic. The fund had initially planned to provide $554 through a Stand-By Arrangement and a Stand-by Credit Facility. “The increase is justified in the context of balance of payments needs brought on by the tropical storms and continued pandemic,” said Joyce Wong, the Fund’s team leader for Honduras. The COVID-19 pandemic and hits by tropical storms Eta and Iota lead to a sharp economic contraction in 2020 that will only be partly reversed in 2021, the Fund said. The agreement is subject to approval by the IMF’s Executive Board, tentatively scheduled for June.
https://www.reuters.com/article/imf-honduras/imf-reaches-staff-level-agreement-with-honduras-proposes-more-support-idUSL1N2MT1YO
Some major shit habbened just after Hussein took over and not all of it was supporting them.
Too many families fighting for control.
At least there is less of them nao.
>non-white state additions
I guess I missed that part or need a refresher
not surprised though.