Author: BlackMask Financial

BERLIN, May 30 (Reuters) – The Group of Seven major economies jointly condemned on Monday North Korea’s latest intercontinental ballistic missile test and called on all U.N. member states to condemn the nuclear-armed state’s actions. “We are very concerned by the unprecedented series of ballistic missile tests with increasingly versatile systems across all ranges,” the foreign ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States said in a statement together with the European Union’s top foreign policy official. North Korea fired three missiles last Wednesday, including one thought to be its largest intercontinental ballistic missile yet, following a trip to Asia by U.S. President Joe Biden.

NEW YORK, May 27 (Reuters) – Major U.S. retailers that recently scrambled to restock shelves amid product shortages disclosed this week that their stores are now packed with too much merchandise, and some are even doing what was unthinkable just a few months ago: discounting unsold goods. It’s a sign of possible more trouble to come for retailers amid soaring inflation and higher gas prices. With shoppers’ tastes quickly shifting, many retailers now find themselves with a surplus of merchandise, driving up costs.

Costco Wholesale Corp (COST.O) said its inventories ballooned 26% in its fiscal third quarter ended May 8 that included a “few hundred million dollars” of extra holiday merchandise and being a “little heavy” on small appliances and household items.  At Gap Inc (GPS.N), a 34% spike in inventories was caused by poor sales at Old Navy and longer transit times for goods, CFO Katrina O’Connell said Thursday.  Similarly, Macy’s CEO Jeff Gennette this week cited an “imbalance” in inventory. “Supply chain constraints relaxed,” resulting in it receiving goods from overseas earlier “than we expected,” he said. Meanwhile, shoppers changed buying patterns, buying fewer home items while snapping up occasion-based clothing and other merchandise.

Average retail inventories in the United States are rising at a faster pace than sales growth, according to Citi research on 18 retailers’ first-quarter results as of May 22. At 11 of the 18, inventories rose by 10 percentage points more than sales did, according to Citi analyst Paul Lejuez. That is the widest gap since before the coronavirus pandemic began, illustrating a trend that began in March 2022.

During the supply-chain crisis, major retailers went on buying sprees, loading up on a range of merchandise and bulking up investments in merchandise so they would have enough goods in stock for shoppers flush with cash due to stimulus checks.

But the retailers’ moves backfired, according to executives and analysts. With inflation soaring and fuel prices jumping, shoppers retrenched quite rapidly, buying less clothing, TVs and high-margin appliances.

That scenario is prompting retailers like Walmart (WMT.N) and Macy’s (M.N) to clear out excess inventories by discounting more items and offering deeper promotions, a move that could erode margins. Walmart CEO Doug McMillon said on its earnings call that it had started “aggressive” price rollbacks to boost sales of some higher-margin goods, including apparel. To be sure, retailers are still battling high costs of sourcing goods and hiring workers, which could limit the breadth and depth of promotions they offer, The Roosevelt Investment Group’s Senior Portfolio Manager Jason Benowitz said. “You will see some discounting and it will be more than last year but ultimately it will be held back by the still high cost of sourcing inventories and labor,” said Benowitz, whose firm holds shares in Amazon.com Inc (AMZN.O), Ross Stores (ROST.O) and Autozone Inc (AZO.N). As inflation lifted prices of everything from TVs to toothpaste, some lower-income consumers have curbed their spending, according to Walmart and Target.  Higher-income shoppers have shown resiliency, snapping up suits, gowns and footwear and spending more on services, economic data and results from retailers that cater to more affluent households showed. Holding excess merchandise proves expensive as warehousing costs rise. Walmart store and distribution centers had 32% more merchandise, Target had 43% more goods compared to a year earlier and Best Buy (BBY.N) had 9% more merchandise in the first quarter, the retailers said. Macy’s said on its earning call inventories rose 17% from the same period in 2021. Macy’s (M.N) Chief Financial Officer Adrian Mitchell said on Thursday consumers’ quick shift away from “pandemic categories” and receiving items sooner than expected, due to a loosening supply chain, resulted in higher inventories. He forecasted Macy’s second-quarter gross margins to reach 2019 levels. Some anticipate that many retailers this year will start to discount more to clear out unsold merchandise. Macy’s CFO’ warned of “an elevated promotional environment,” for example. Data from research firm StyleSage showed mid-tier department stores, such as Macy’s and Kohl’s (KSS.N), stepped up price promotions in mid-May, implementing them on 57% of items. In the clothing category, retailers put in place discounts on 36% of items as of mid-May, up from 32% in the whole of April, according to StyleSage. The average discount, however, remained steady at 12% since January. Kohl’s offered eight promotions in the second week of May, versus three in the year-earlier period, according to research from Jane Hali & Associates. Similarly, Walmart was offering up to 65% off on top-rated items and up to 25% of on tech and home goods during the week of May 9. At the same time last year, deals for tech products were just 10% and offers on home products were only on select items. NN: Retailers  algo’s had retailers double orders when the supply chain emptied. Just as those inventories are rising the consumer stunned by inflation driven price increases have pulled in  heir horns. A massive inflation that will soon be a depression is upon us, Retailers will soon be dumping inventories and a little later on this year their will be fire sales all over the place

https://youtu.be/YuIU0kz2i1s

The European Union proposed banning seaborne oil from Russia while delaying restrictions on imports from a key pipeline in an effort to satisfy Hungarian objections and clinch an agreement on a stalled sanctions package that would target Moscow for its war in Ukraine. The European Commission, the EU’s executive arm, sent a revised proposal to national governments on Saturday that would spare shipments of oil through the giant Druzhba pipeline, which is Hungary’s main source of crude imports, according to people familiar with the matter. Member states would phase out their imports of seaborne crude in six months and refined petroleum products in eight months, said the people, who asked not to be identified because the discussions are private.  The proposal would give more time to Hungary, which has opposed the deal, to find a technical solution that satisfies its energy needs. It would also address the concerns of other landlocked countries, including Slovakia and the Czech Republic. Under the revised draft, Bulgaria would get a transition period until June or December 2024 and Croatia could get an exemption for imports of vacuum gas oil. The commission also proposed restricting re-exports of Russian oil supplied by pipeline to other member states or third countries. The commission also appears to have limited the scope of a provision that would affect services linked to the shipment of oil to third countries. The draft currently prohibits providing technical assistance, brokering services or financing or financial assistance in six months following its adoption. The previous proposal also included “any other services,” which was understood as a reference to providing insurance for shipments. EU ambassadors are scheduled to meet on Sunday when they could discuss the revised package. Some member states are pushing to have an agreement before EU leaders meet in Brussels on Monday to discuss the war in Ukraine.  The sanctions package requires the backing of all member states. Several nations had previously opposed distinguishing between seaborne and pipeline deliveries over concerns that such a split was unfair as it would disproportionately hit their supplies. The EU had previously proposed phasing out all Russian oil imports by early next year. Hungary and Slovakia would have been given until the end of 2024 to comply, while the Czech Republic would have been granted an exemption until June 2024. The countries are heavily reliant on Russian oil, but they account for a relatively small portion of the EU’s overall imports from Moscow. NN: When sanctions are little more then press releases. Unhook my dick. Politicians canot run squat. They are clueless… See how they run!!

• Russian forces advance in east, shifting momentum
• Capture of Lyman would set stage for next phase of offensive
• Sievierodonetsk under assault

KYIV, May 29 (Reuters) – Russian forces intensified their assault on the largest city held by Ukrainian forces in the Donbas region in the east on Sunday as Kyiv said it was hopeful longer-range weapons it desperately needs from Western allies could soon arrive. Slow, solid Russian gains in recent days in eastern Ukraine’s Donbas, comprising the Luhansk and Donetsk regions, point to a subtle momentum shift in the war, now in its fourth month. Invading forces appear close to seizing all of the Luhansk region, one of the more modest war goals the Kremlin set after abandoning its assault on the capital, Kyiv, in the face of Ukrainian resistance. Russia’s defence ministry said its troops and allied separatist forces were in full control of Lyman, the site of a railway junction west of the Siverskyi Donets River in the Donetsk. However, Ukraine’s deputy defence minister, Hanna Malyar, said the battle for Lyman continued,  Sievierodonetsk, some 60 km (40 miles) northeast of Lyman on the eastern side of the river and the largest Donbas city still held by Ukraine, was under heavy assault. “The situation has extremely escalated,” said Serhiy Gaidai, the governor of Luhansk. The shelling was so intense it was not possible to assess casualties and damage, though two people were killed on Saturday and 13 more buildings in the city were destroyed, he said. Gaidai said on Friday that Ukrainian troops might have to retreat from the city to avoid capture but it was not clear whether they had begun to pull out. Russian artillery was also pounding the Lysychansk-Bakhmut road, which Russia must take to close a pincer movement and encircle Ukrainian forces, and police said there was “significant destruction” in Lysychansk. Ukrainian presidential adviser and peace negotiator Mykhailo Podolyak repeated a call for U.S.-made long-range multiple-rocket launchers. U.S. officials have told Reuters such systems are actively being considered, with a decision possible in coming days. “It is hard to fight when you are attacked from 70 km away and have nothing to fight back with … we need effective weapons,” Podolyak posted on Twitter. President Volodymyr Zelenskiy voiced hopes in a late-night video address that Ukraine’s allies would provide needed weapons, adding that he expected “good news” in the coming days. In a sign of frustration over Western differences on the war as its economic costs become more evident, Ukrainian Deputy Prime Minister Olga Stefanishyna said NATO had shown itself incapable of mounting a united response. Ukraine is a major grain exporter, and the blockage of its exports threatens to result in food shortages in a number countries, including in Africa. Zelenskiy said in a television interview he believed Russia would agree to talks if Ukraine could recapture all the territory it has lost since the invasion began on Feb. 24. Russia says it is waging a “special military operation” to demilitarise Ukraine and rid it of nationalists threatening Russian-speakers there. Ukraine and Western countries say Russia’s claims are a false pretext for a war of aggression. NN: I fully expect the bad news to keep coming. NATO, the EU and US are still living in LALA land. The Ukraine cannot win the war without LONG range rockets and a REAL air force. As we have learned the side that has the longest reach and controls the skies usually wins. NATO refuses to face the reality… Its their fight! Better fight in the Ukraine then Poland!.

 

https://youtu.be/N1_OSmV1di0

Conflict between Russia and Germany risks leaving one of central Europe’s biggest natural gas depots empty next winter, just as the continent urgently needs to ensure supplies due to the war in Ukraine. The Haidach underground depot — located in Austria but connected only to the German grid — is unlikely to get filled after Moscow cut supplies to a Gazprom PJSC unit seized by Berlin’s government, according to energy officials in Vienna, who asked not to be identified in exchange for discussing sensitive topics. The depot is equivalent to about a quarter of Austrian storage capacity.  Europeans need to build fuel inventories to keep warm and run their industries next winter. But Russian sanctions on Gazprom Germania GmbH — in retaliation for Berlin seizing the unit earlier this year — are depriving Haidach of crucial supplies needed for energy security should the war in Ukraine disrupt gas transit to the continent. To make matters worse, Austrian efforts to break the German bottleneck and stash gas at the site is plagued by pipeline constraints. The Alpine country would need to find a way to connect Haidach to the Austrian network and the nation’s grid operator said it’s still studying how it could meet the government’s demand. “From a technical perspective, a connection between the storage facility and the Penta West pipeline would have to be built,” operator Gas Connect said in emailed response to Bloomberg questions.  Austria’s Penta West is the closest pipeline that could be extended to connect Haidach with the rest of Austria’s 900-kilometer (559-mile) network. Receiving the necessary regulatory and environmental permissions for that could take years, one official said. Even if all approvals were granted, the Penta West pipeline’s capacity is already fully booked by traders fueling west European markets. A second gas tender being prepared in Vienna, which could be awarded to help fill Haidach with supplies other than Russian, is also facing challenges because there’s no way of verifying where the fuel comes from once it’s been injected into pipelines, a second official said. Haidach was built by Gazprom and Germany’s Wingas Gmbh and opened in 2007. It’s operated by Austria’s RAG AG. The facility has capacity to store about 33 terawatt hours of gas, enough to cover almost four months of Austrian consumption. Austria gets about 80% of its gas from Russia and has warned that being cut off from its biggest supplier would plunge the country into recession. Leonore Gewessler, Austria’s top energy official, said earlier this month that the country was prepared to spend as much as 5 billion euros ($5.4 billion) to top off storage depots, through tenders that may include Russian suppliers.  On Tuesday, the country paid a 45% premium over benchmark European prices in its first tender to create a strategic gas reserve before heating season begins. NN: its a lot different story then being presented in US media. Their are no replacement supplies and oil will hi t$150 a barrel. And that will end the inflation has peeked silliness. Since we are talking about myths the “hero”  Ukrainian freedom fighters  are getting their asses kicked,,,,,….. But,  if you admit that then NATO the toothless fighters should join the fight…… Speaking of joining the fight and engaging the enemy, If you want to keep the kiddies safe lock the fucking door. And make sure the donuts eater in blue stays at the front door as he is paid to do. Oh yes and see if you can get the liberal lefties that need victims to push their agenda get trained, carry and use a gun… As far as the steroid monsters their job is to take down a shooter now right now…… Not sit around for a hour!