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Stocks find fleeting relief in Evergrande deal; Fed looms

Evergrande — China’s largest property developer, with $300 billion of liabilities — missed interest payments due Monday to at least two of its largest bank creditors, taking the cash-strapped developer a step closer to one of the nation’s biggest debt restructurings. Evergrande slid deeper in equity and credit markets Tuesday, fueling concerns  about broader contagion after S&P Global Ratings said the developer was on the brink of default.

“China’s a strategic play — you’re not going to jump in and out. And the amount that you’re in should be that which you’re comfortable with,” Dalio said. “It’s not smart to sell on the break, or buy.” While most investors are overweight the U.S., diversification is important given the “war of sorts going on in technology,” he said. As China has cracked down on business sectors from tech to online education and real estate, investors have questioned the viability of investing in the country. But Dalio, who first visited China in 1984, has remained positive on the world’s second-largest economy. Earlier this month, he said investors shouldn’t neglect China “not only because of the opportunities it provides but you lose the excitement if you’re not there.” As for the market swings in Chinese markets, Dalio has described them as little more than “wiggles.” Dalio has an estimated net worth of $15.6 billion, according to the Bloomberg Billionaires Index. Bridgewater’s Pure Alpha II hedge fund has gained 1.4% this year through August. The firm manages $105 billion in hedge fund assets. Nick Note: A hole 1.4% return on 105 billion and i guarantee they are not counint the china hit. The system is out of control. but  Ray is right…… China and the world economy will not wipe out over this…..  just yet. but But BUT happy retierment mutual fund sleeping holders as usual will take the hit and not even know it…. After all a 1.4% return is a lot of nothing…… Rmemeebr Ray et all did this, doomed from the start China deal,  trying to gussy up the balance sheet. It was perfect buy the shit out of  evergrande no more  8% US dollar bonds that will never be paid….. ENJOY your meal because we will soon eat their lunch…. Whats a little issue like you will never get paid back have to do with it…………

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China Evergrande’s rising default risks shift focus to possible Beijing rescue

Persistent default fears eclipsed efforts by China Evergrande Group’s chairman to lift confidence in the embattled firm on Tuesday, as Beijing showed no signs it would intervene to stem any domino effects across the global economy.Analysts played down the threat of Evergrande’s troubles becoming the country’s “Lehman moment,” though concerns about the spillover risks of a messy collapse of what was once China’s top-selling property developer have roiled markets. In an effort to revive battered confidence in the firm, Evergrande Chairman Hui Ka Yuan said in a letter to staff the company is confident it will “walk out of its darkest moment” and deliver property projects as pledged. In the letter, coinciding with China’s mid-autumn festival, the chairman of the debt-laden property developer, also said Evergrande will fulfill responsibilities to property buyers, investors, partners and financial institutions.“I firmly believe that with your concerted effort and hard work, Evergrande will walk out of its darkest moment, resume full-scale constructions as soon as possible,” said Hui, without elaborating how the company could achieve these objectives. Investors in Evergrande, however, remained on edge. Its shares fell as much as 7 per cent, having tumbled 10 per cent in the previous day, on fears its $305-billion in debt could trigger widespread losses in China’s financial system in the event of a collapse. The stock ended down 0.4 per cent. Other property stocks such as Sunac, China’s No.4 developer, and state-backed Greentown China on Tuesday recouped some of their hefty losses in the previous session. The Hong Kong property sector index rose nearly 3 per cent. “There must be negotiations behind the scenes about a systemic recapitalization (of Evergrande) by state proxies,” said Andrew Collier, managing director of Hong Kong-based Orient Capital Research. “If one piece of Evergrande’s debt is allowed to default, it would trigger questions about all of their remaining debt from investors and the government doesn’t want a wider crisis like that,” he said. The Chinese government has been largely quiet on the crisis at Evergrande in recent weeks. World stocks stabilized somewhat on Tuesday and oil prices recovered from the previous day’s heavy selling, as investors grew more confident that contagion from the distress of Evergrande would be limited. However, the spillover concerns at least in the property sector remained. S&P Global Ratings downgraded Sinic Holdings to ‘CCC+’ on Tuesday, citing the Chinese developer’s failure “to communicate a clear repayment plan.” Hong Kong-listed shares of small-sized Chinese developer Sinic plunged 87 per cent on Monday, wiping $1.5-billion off its market value before trading was suspended. A major test for Evergrande comes this week, with the firm due to pay $83.5-million in interest relating to its March 2022 bond on Thursday. It has another $47.5-million payment due on Sept. 29 for March 2024 notes. Both bonds would default if Evergrande fails to settle the interest within 30 days of the scheduled payment dates. “I think (Evergrande’s) equity will be wiped out, the debt looks like it is in trouble and the Chinese government is going to break up this company,” said Andrew Left, founder of Citron Research and one of the world’s best known short-sellers. “But I don’t think that this is going to be the straw that breaks the global economy’s back,” said Left, who in June 2012 published a report that said Evergrande was insolvent and had defrauded investors. The Chinese government will help Evergrande at least get some capital, but it may have to sell some stakes to a third party, such as a state-owned enterprise, Dutch bank ING said in a research note. “The spinoff of non-core businesses, for example, those that are not residential real estate type businesses, will probably be done first,” wrote Iris Pang, ING’s Chief Economist, Greater China. “After that could come sales of stakes that are at the core of Evergrande’s business,” Pang said.

Citi analysts in a research note said that regulators may “buy time to digest” Evergrande’s non-performing loan problem by guiding banks not to withdraw credit and extend the interest payment deadline.

Still, Citi said that while Evergrande’s default crunch was a potential systemic risk to China’s financial system, it was not shaping up as “China’s Lehman moment.” In any default scenario, Evergrande, teetering between a messy meltdown, a managed collapse or the less likely prospect of a bailout by Beijing, will need to restructure the bonds, but analysts expect a low recovery ratio for investors. S&P Global Ratings said in a report on Monday it does not expect Beijing to provide any direct support to Evergrande. “We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy,” the rating agency said. “Evergrande failing alone would unlikely result in such a scenario,” S&P said. Nick Note: My read is a bail out by any other name is still a bail out. You don’t butcher your best milk cow. And their is plenty more money for China to milk from American fund managers. So my conclusion is now is not the time  just yet for China to cash out the American suckers. So evergrande will be evermore!

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Dow Futures Rise 300 Pts; Federal Reserve Meeting in Focus

 U.S. stocks are seen opening sharply higher Tuesday, bouncing back from the previous session’s major selloff, ahead of the start of the Federal Reserve’s latest policy-setting meeting. Nick Bit: Announcement due tomorrow. At 7:05 AM ET (1105 GMT), the Dow Futures contract was up 300 points, or 0.9%, S&P 500 Futures traded 35 points, or 0.9%, higher, while Nasdaq 100 Futures climbed 120 points, or 0.8%. The main equity indices sold off aggressively Monday, weighed by concerns about contagion from Chinese property giant China Evergrande Group’s (HK:3333) debt crisis, political difficulties surrounding the passing of President Joe Biden’s economic agenda and lingering Covid-19 issues – not to mention the Fed meeting. The U.S. central bank’s policy-setting meeting starts later Tuesday, and markets will be looking for more information about plans for reining in its pandemic-era bond-buying program, the quarterly economic forecasts and the so-called dot plot, which the Fed uses to signal its outlook for the path of interest rates.

“ It is quite a close call, but we do not expect the Median Dot Plot for the first rate hike to shift from 2023 to 2022,” said analysts at ING, in a note. Building permits and housing starts data for August are the only economic data of note, both due at 8:30 AM ET. Crude prices also rebounded Tuesday, advancing after days of losses after indications that disruptions to crude output in the U.S. Gulf of Mexico will last into next year. Royal Dutch Shell (LON:RDSa), the biggest oil producer in the region, said Monday that production from two of its largest fields there will not resume until the first quarter of 2022 given the damage caused by Hurricane Ida in late August. Nick Note: The last thing the FED needs is a fart in the stock market. That means they are going to spread copious amounts of Joy Jell and blow a ton of happy smoke.

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More Than 5.85 Billion Covid10 Vaccines Given….. the biggest mass vaccination of humans ever

More Than 5.85 Billion Shots
Given:
In the U.S., 383 million doses have been administered Updated: September 16, 2021,

The biggest vaccination campaign in history is underway. More than 5.85 billion doses have been administered across 184 countries, according to data collected by Bloomberg. The latest rate was roughly 31.1 million doses a day. In the U.S., 383 million doses have been given so far. In the last week, an average of 781,574 doses per day were administered Enough doses have now been administered to fully vaccinate 38.1% of the global population—but the distribution has been lopsided. Countries and regions with the highest incomes are getting vaccinated more than 20 times faster than those with the lowest.

When will life return to normal?

While the best vaccines are highly effective at preventing hospitalization and death, it takes a coordinated campaign to stop a pandemic. Infectious-disease experts say that vaccinating 70% to 85% of the U.S. population would enable a return to normalcy. On a global scale, that’s a daunting level of vaccination. At the current pace of 31.1 million a day, the goal of high levels of global immunity remains a long way off. Manufacturing capacity, however, is steadily increasing, and new vaccines by additional manufacturers are coming to market.

Globally, the latest vaccination rate is 31,132,322 doses per day, on average. At this pace, it will take another 6 months to cover 75% of the population.

‘Pandemic of the Unvaccinated’

Israel was first to show that vaccines were bending the curve of Covid infections. The country led the world in early vaccinations, and by February more than 84% of people ages 70 and older had received two doses. Covid cases declined rapidly, and a similar pattern of vaccination and recovery repeated across dozens of other countries.

This progress is under threat. New strains, led by the highly transmissible delta variant, have caused renewed outbreaks. It’s now a life-and-death contest between vaccine and virus. Unvaccinated people are more at risk than ever, leading U.S. health officials to dub it a “pandemic of the unvaccinated.”

Even among those who are vaccinated, the delta variant may lead to mild cases, and those who get sick are able to spread the disease to others, according to the latest data. The vaccines remain effective at preventing hospitalization and death. Since the start of the global vaccination campaign, countries have experienced unequal access to vaccines and varying degrees of efficiency in getting shots into people’s arms. Before March, few African nations had received a single shipment of shots. In the U.S., 115.4 doses have been administered for every 100 people. Delivering billions of vaccines to stop the spread of Covid-19 worldwide is one of the greatest logistical challenges ever undertaken.

Global Vaccination Campaign

% of population
Countries and regions Doses administered Enough for % of people given 1+ dose fully vaccinated Daily rate of doses administered
Global Total 5,850,947,883 – – – 31,132,322
Mainland China 2,156,938,000 77.0 78.5 69.3 4,937,857
India 772,045,150 28.2 42.2 13.5 6,904,446
EU 552,876,042 62.2 66.5 62.4 1,058,260
U.S. 383,038,403 59.8 63.5 54.2 781,574
Brazil 216,611,648 52.5 68.4 35.9 1,811,626
Japan 148,775,011 58.9 65.1 52.8 1,211,318
Indonesia 118,994,105 22.3 28.2 16.1 1,256,699
Germany 104,949,545 63.2 66.9 62.7 198,618
Turkey 104,046,149 62.6 62.9 49.8 534,823
Mexico 93,588,719 36.7 48.1 31.8 703,885
U.K. 92,732,958 69.4 72.6 66.2 97,069
France 91,962,598 70.9 76.7 72.7 197,031
Russia 86,956,254 29.6 31.6 27.4 296,642
Italy 81,731,985 67.7 72.9 67.2 216,303
Pakistan 71,311,567 17.4 25.8 11.2 829,367
Spain 68,955,191 74.2 80.3 76.8 136,107
South Korea 56,145,166 54.3 67.6 40.9 777,413
Canada 54,743,909 72.9 74.7 68.7 83,227
Argentina 47,936,962 53.3 64.3 42.4 233,962

Roughly half of the U.S. population has been fully vaccinated, and states are flush with supply. The vaccination campaign, however, has slowed. Once the envy of the world for its swift rollout, the U.S. has since been overtaken by dozens of countries. There are still wide gaps between the most and least vaccinated counties in the U.S., leaving many communities vulnerable to continued outbreaks. Distribution in the U.S. is directed by the federal government. Pfizer and BioNTech’s vaccine, as well as Moderna’s shot both require two doses taken several weeks apart. J&J’s inoculation requires just a single dose. Additional booster shots may be used to enhance protections over time. So far, 211 million Americans have received at least one dose of a vaccine—81.7% of the adult population. At least 180 million people have completed a vaccination regimen. The U.S. is sending some of its excess supply to other hard-hit regions of the world.

Vaccines Across America

Enough doses have been administered to cover 59.8% of the total population

It takes about two weeks after a final vaccine dose for immunity to fully develop. While the CDC has offered guidance on mask-wearing after vaccination, many local governments and businesses have set their own rules. Unvaccinated people, including children, should still wear masks indoors, according to the CDC’s latest guidance.

U.S. Vaccinations vs. Cases

Vaccines have helped reduce case numbers in the places where they’ve been deployed most widely. Currently, 25 places have administered enough shots to cover at least 60% of the population.
U.S. health officials are now focused on how to vaccinate people who have been reluctant to get a shot. Younger, unvaccinated populations are increasingly viewed as key to getting the pandemic under control.
Vermont leads all states, with enough vaccinations to cover 74.4% of its populations

After focusing first on hospitals and other institutional health-care settings, states expanded the number of places that offer the shots. Mass vaccination centers were created from sport stadiums, theme parks, convention halls and race tracks. Now the campaign has moved to more traditional health-care settings: pharmacies, doctors’ offices and clinics.

In the U.S., the latest vaccination rate is 781,574 doses per day, on average.

U.S. Vaccination Campaign

% of population
Jurisdiction Doses administered Enough for % of people given 1+ dose fully vaccinated Daily rate of doses administered Supply used
U.S. Totals 383,038,403 59.8 63.5 54.2 781,574 83.0%
California 49,388,334 64.8 70.4 57.5 88,524 86.5%
Texas 31,378,670 56.2 58.7 49.5 73,131 77.0%
Florida 26,016,494 63.3 65.8 55.6 68,662 81.9%
New York 25,195,859 67.4 69.6 62.1 52,378 87.7%
Pennsylvania 15,838,570 64.4 71.1 56.7 27,961 85.1%
Illinois 15,007,332 61.3 67.4 52.5 24,145 86.1%
Federal Entities* 12,829,380 – – – 39,737 92.6%
Ohio 11,830,706 52.6 53.4 49.3 17,961 81.7%
New Jersey 11,320,871 66.2 71.5 63.1 20,071 82.9%
North Carolina 10,927,893 54.0 58.0 48.3 26,712 78.3%
Virginia 10,550,840 64.0 66.9 58.8 20,090 84.8%
Michigan 10,377,873 53.8 56.0 51.4 12,398 78.4%
Georgia 10,285,679 49.7 53.5 43.5 24,481 73.1%
Washington 9,820,796 67.2 70.1 62.0 22,432 88.9%
Massachusetts 9,641,149 72.3 76.5 67.0 10,420 89.6%
Arizona 8,029,150 57.0 58.3 50.0 14,879 83.0%
Maryland 7,799,862 66.9 69.6 63.0 12,658 79.9%
Colorado 7,011,329 63.1 64.7 58.3 12,401 87.1%
Wisconsin 6,640,583 59.3 60.0 55.3 10,276 92.1%
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Pfizer Covid Shot Safely Bolsters Antibodies in Younger Kids

(Sept. 20) Pfizer Inc. and partner BioNTech SE said their Covid-19 vaccine was safe and produced strong antibody responses in children ages 5 to 11 in a large-scale trial, findings that could pave the way to begin vaccinating grade-school kids within months. The long-awaited results offer one of the first looks at how well a Covid vaccine could work for younger children. Pressure to immunize kids has been on the climb in the U.S., where a new school year has started just as the delta variant is fueling a surge in cases. In a trial with 2,268 participants, two shots of a 10 microgram dose — one-third the adult shot — produced antibody levels comparable to those seen in a trial of 16-to-25-year-olds who got the adult dose, the companies said, with similar side effects. Nick Note: The rate of infection and hospitalizations among the kiddies are soaring. The story they are not telling you…

HARD TO LOOK AT

Kids are getting infected and hospitalized and dieing. School should be out until vaccinations. Best case that is not going to happen until year end. I am working on my fun cool mask for kiddies. I will soon have product for you. The idea was to make a fun cool mask the kiddies would wear. We started with  a 5 layer replaceable N95 certified filter. I got with my premed student Nichole and gave her this product. She made a bunch of the cool N95 fun masks and took them to the local playground and the kiddies went wild….

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US surges premarket, Dow jumps over 300 pts

US equities rebounded firmly early Tuesday, as Wall Street looked to bounce back from its worst day in four years. Just after 1500 BST, the Dow Jones Industrial Average was up 332 points to 16,203.66, while the S&P 500 and the Nasdaq 100 were 43 and 128 points higher respectively.

“After the market-wide panic of ‘Black Monday’, cooler heads seem to be prevailing this Tuesday morning, as investors begin to pick up the pieces, even if China itself continues to struggle,” said Connor Campbell, financial analyst at Spreadex.

Chinese shares closed lower on Tuesday, although other stocks in the region began to rebound from “Black Monday”. The Shanghai Composite closed down 7.63%, despite the People’s Bank of China injecting a $24bn boost to ease the pressure the index was under. The Shanghai Composite closed down 7.63%, despite the People’s Bank of China injecting a $24bn boost to ease the pressure the index was under. Meanwhile, the People’s Bank of China cut interest rates for the fifth time since November in a bid to buoy its flagging economy. The PBOC lowered its benchmark lending and deposit rates by 0.25 percentage point, adding that the rate cuts will become effective on 26 August and are aimed at reducing corporate borrowing costs. China’s central bank also reduced its reserve requirement ratio by 0.5 percentage points, starting from 6 September, adding the cuts are meant to ensure enough liquidity and stable credit growth. “The fact that the PBOC can use the reserves requirement ratio cut as a buffer in this way underlines why recent concerns about the destabilising impact of capital outflows on China’s economy are overdone,” said Mark Williams, chief China economist at Capital Economics. “The reserves requirement ratio of return for large banks still stands at 18.0% after this move.” On the economic data front, the Markit composite Purchasing Managers Index declined slightly in August, figures released on Tuesday showed. The index fell 0.7 points to 55.0, while the sub-index monitoring the services sector slid from 55.7 to 55.2, marginally ahead of expectations for a 55.1 reading. US consumer confidence jumped from 90.9 to 101.5 in August, well ahead of expectations for a 93.4 reading, its second-highest reading since the recession. “The rebound in this month’s survey is reassuring given the recent volatility in financial markets and the sharp decline in confidence observed last month, which was driven in part by concerns over Chinese growth,” Barclays‘ analysts said in a note. “In addition, after a weak employment outlook last month, consumers were considerably more confident in the job market in August, giving us confidence in our positive employment outlook.” Meanwhile, according to the S&P Case-Shiller 20-city composite index, after seasonal adjustment prices declined 0.1%, while prices in June were up 5% year-on-year, little changed from May. Sales of new single-family homes rose last month, recovering from the sharp decline they suffered the previous month. According to figures released by the Commerce Department, new home sales rose 5.4% in July to a seasonally-adjusted annual rate of 507,000, after a 7.7% slump in the previous month. Analysts had expected a 5.8% increase for a 510,000 annual rate last month, compared with a downwardly revised 481,000 rate in June. In company news, Netflix jumped 8.10% after entering bear market territory on Monday, while Apple surged 5.25% after falling to a 10-month low in the previous session. Best Buy soared 14.3% after its profit and sales beat estimates. Elsewhere, European stocks recouped some of their losses, while the dollar fell 0.15% against the pound but rose 0.57% against the yen and 0.92% against the euro.Gold futures slid 0.62% to $1,146.50, while oil prices staged a solid comeback, with West Texas Intermediate climbing 3.29% to $39.54 a barrel and Brent gaining 2.84% to $43.94 a barrel. Nick Note: I as so stated in our live streaming TV… am not so sure this is the big one. I am seeing a rebound which is what i expected. We got a 5% what i am calling for now retracement from the August and early September recording  breaking highs. So far every swoon has seen a rush to buy on the bottom. A 5% drop is not a correction. and a really big one is coming. As you know the real driver of the coming correction will be the Fed raising rates…. And cutting off this mindless stimulus. Until then i am the careful bear,,,,,

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DOW dives almost 1000 points on fear of EverGrande default, focus turns to Fed and girlfriends murdered in Grand Teton National Park

* Energy, bank stocks lead market declines

* All eyes on Fed’s policy meeting later this week

* Major airlines mixed as U.S. relaxes travel rules

* Indexes down: Dow 2.23%, S&P 2.24%, Nasdaq 2.63% (Adds comment, details; updates prices)

Sept 20 (Reuters) – U.S. stocks sharply dropped on Monday as risk-off sentiment gripped investors on concerns over the pace of global growth and a possible spillover from China Evergrande’s troubles, ahead of the Federal Reserve’s policy meeting later this week. The Nasdaq tumbled as much as 2.9% in afternoon trading, led by declines in growth names including Microsoft Corp, Google-owner Alphabet Inc, Amazon.com Inc, Apple Inc, Facebook Inc and Tesla Inc. “The potential default of the Chinese property developer could have far reaching and unexpected consequences. There’s the X-factor, the potential that ripples from one collapse could erode other sectors,” said Danni Hewson, financial analyst at AJ Bell. “If the Chinese economy is dented, what happens to demand for those nice-to-haves like a shiny new Tesla. Shares in the car company have tumbled and the Nasdaq with them, in fact the tech heavy index makes for pretty grim viewing today.” All the 11 major S&P sectors declined. Economy-sensitive industrials, financials and energy dropped between 1.9% and 4%. The banking sub-index shed 3.9%, tracking U.S. Treasury yields as worries about the default of Evergrande appeared to affect the broader market, with commodities slipping and investors flocking to the perceived safety of bonds.. Wall Street’s main indexes have been hurt this month by fears of potentially higher corporate tax rates denting earnings and have shrugged off signs inflation might have peaked. The S&P 500 is down 4.6% from its intra-day record high hit on Sept. 2 and is on track to snap a seven-month winning streak. “This is just an environment where there’s been a lot of money that has been rewarded for excessive risk taking. And now we’re seeing a little bit of that risk come off… this is classic profit taking,” said Dennis Dick, a trader at Bright Trading LLC. “I still think a big reason for (today’s selloff) is the White House and the Biden administration talking about raising the capital gains rate.” All eyes on Wednesday will be on the Fed’s policy meeting, where the central bank is expected to lay the groundwork for a tapering, although the consensus is for an actual announcement to be delayed until the November or December meetings. At 13:30 p.m. ET, the Dow Jones Industrial Average was down 772.43 points, or 2.23%, at 33,812.45, the S&P 500 was down 99.47 points, or 2.24%, at 4,333.52. The Nasdaq Composite was down 396.26 points, or 2.63%, at 14,647.71, set for its worst day since May 12. Strategists at Morgan Stanley said they expected a 10% correction in the S&P 500 as the Fed starts to unwind its monetary support, adding that signs of stalling economic growth could deepen it to 20%. The CBOE volatility index, known as Wall Street’s fear gauge, hit its highest level in over four months. Airline carriers traded mixed after the United States relaxed travel restrictions on air passengers from China, India, Britain and many other European countries who have received COVID-19 vaccines in early November. Declining issues outnumbered advancers for a 8.44-to-1 ratio on the NYSE and for a 5.54-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded 19 new highs and 165 new lows. Nick Note: Allow a little for sqid marks… And so far this appears to me to be a typical 5% correction off the highs.  And i  expect the PRC commies will come to the riscew. And Millineals will hear the Robin Hood call of the wild and follow the Reddick buy on the dip bloggesr to become the next stock market millionaire. Doing all this as you get all the free time you need  to dance, fuck boys and girls, get high and drive you girlfriend to the mountans and kill her…. Just like in the Netflix movies

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UK and US meat industry warns some firms have just five days’ CO2 supply

LONDON, Sept 20 (Reuters) – Some of Britain’s meat processors will run out of carbon dioxide within five days, forcing them to halt production, the head of the industry’s lobby group warned on Monday. A jump in gas prices has forced several domestic energy suppliers out of business and has shut fertiliser plants that also produce carbon dioxide (CO2), used to stun animals before slaughter and prolong the shelf-life of food. The shortage of CO2, also used to put the fizz in beer, cider and soft drinks, has compounded an acute shortage of truck drivers in the UK, which has been blamed on the impact of COVID-19 and Brexit.

“My members are saying anything between five, 10 and 15 days supply,” Nick Allen of the British Meat Processors Association told Sky News.

With no CO2 a meat processor cannot operate, he said. “The animals have to stay on farm, they’ll cause farmers on the farm huge animal welfare problems and British pork and British poultry will disappear off the shelves,” Allen said. “We’re two weeks away from seeing some real impacts on the shelves. On the poultry side we’re hearing they’re even tighter supplies so we might see poultry disappearing even sooner.” Allen said the government was working hard to try and resolve the issue and could hopefully persuade a UK fertiliser producer to re-start their plant. The British Retail Consortium (BRC), which represents retailers including the major supermarket groups, said the CO2 crisis added to existing pressures on production and distribution. “Retailers are working with their suppliers to resolve this issue, but government must investigate this issue as soon as possible and work with industry to ensure a solution is found quickly and problems don’t escalate further,” said Andrew Opie, the BRC’s director of food and sustainability. Foreign office minister James Cleverly said the government was looking to address short-term shortages. “We will ensure that we are able to put food on the table, obviously that is a real priority,” Nick Note: When we had the sea food factory industrial gases where critical for our operations. And when the nearest supply was two weeks away by boat and 1,500 miles you learned to pay close attenuation. The majority of our refrigeration were run on ammonia gas with huge compressors. If they went down we would turn 10 million in sea food to cat food or worse yet $1000 of fish-meal.the  Cheap gases we used we would bring from the US in tanks mounted on 20 foot containers We also used a lot of Co2 gas. It was used to flash freeze fish fillets, lobster and shrimp. We had a  IQF (individual quick frozen) Co2 tunnel to process shrimp. The cost of the gases was virtually nothing but you could not operate without it. We purchased from the commercial gas manufactures in Louisianan. All produced as a by product from natural gas. Co2 is used to stun chickens and turkeys before slaughter.  It is used to freeze chicken parts like chicken McNuggets. The chicken, Turkey, fish and meat packers cannot operate without it. You could of course eat veggie burgers…. Or go total vegan….. And their is the option of foods made from ants and worms. Not my cup of tea. I suggest you fill up your freezer and let someone else worry about the shortages. This is not new. We have been urging you to stock up all year. In a food inflation your yielding more on your survival stash of foods then in your treasuries….

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Europe and Asis extends losses amid global selloff

https://youtu.be/kLbJvWwmawY

 

 

 

 

(Bloomberg) — Growing investor angst about China’s real estate crackdown rippled through markets on Monday, adding pressure on Xi Jinping’s government to prevent financial contagion from destabilizing the world’s second-largest economy. Hong Kong real estate giants including Henderson Land Development Co. suffered the biggest selloff in more than a year as traders speculated China will extend its property clampdown to the financial hub. Intensifying concerns about China Evergrande Group’s debt crisis dragged down everything from bank stocks to Ping An Insurance Group Co. and high-yield dollar bonds. One little-known Chinese property developer plunged 87% before shares were halted.

Hong Kong’s benchmark Hang Seng Index slumped 3.3%, its biggest loss since late July. The selling also spilled over into the Hong Kong dollar, offshore yuan and S&P 500 Index futures. Holiday closures in much of Asia may have exacerbated the volatility, traders said.

Faced with uncertainty over how far Xi is willing to go with his market-roiling campaigns to achieve “common prosperity” and rein in overindebted companies, many investors are choosing to sell first and ask questions later. Interest payment deadlines this week on several Evergrande bonds and bank loans add another layer of risk as market participants brace for what could be one of China’s largest-ever debt restructurings. “The price action across several asset classes in Asia today is horrendous due to rising fears over Evergrande and a few other issues, but it could be an overreaction due to all of the market closures,” said Brian Quartarolo, portfolio manager at Pilgrim Partners Asia. Xi faces a tricky balancing act as he tries to reduce property-sector leverage and make housing more affordable without doing too much short-term damage to the financial system and economy. Mounting concerns that he’ll miscalculate are spreading ever-further beyond China-focused property developers and their suppliers.

“It’s what the Chinese would describe as trying to get off a tiger,” said Justin Tang, head of Asian research at United First Partners.

Chinese policy makers may be able to avoid a financial crisis, but the Evergrande ordeal could still inflict lasting damage to credit conditions and the economy, Societe Generale SA analysts wrote in a note on Monday. “The repercussions from Evergrande’s prospective collapse will likely contribute to China’s ongoing economic deceleration, which in turn anchors global growth and inflation, and casts a pall over commodity prices,” wrote analysts led by Phoenix Kalen, head of emerging-market strategy in London. Hong Kong real estate companies took the brunt of the selling Monday, with the Hang Seng Property Index tumbling 6.7% for its biggest drop since May 2020. Henderson Land plunged 13% and Sun Hung Kai Properties Ltd. sank 10%, the most since 2012. Chinese officials told Hong Kong developers that Beijing is no longer willing to tolerate what it calls monopoly behavior, Reuters reported Friday. The officials didn’t lay out a roadmap or a deadline, according to Reuters, which cited unidentified developers. Hong Kong’s government has long struggled to bring home prices under control amid outsized demand, limited supply and low borrowing costs. The city’s average property value was a world-beating $1.25 million as of June 2020, according to CBRE Group Inc. “This is a paradigm shift,” said Hao Hong, chief strategist at Bocom International, referring to the Reuters report. “People need to keep a close look.” Ping An Insurance declined 5.8% to a more than four-year low on concerns about its property-sector exposure. The company issued a statement Friday saying that its insurance funds have “zero exposure” to Evergrande and other real estate companies “that the market has been paying attention to.” Real estate accounts for about 4.9% of Ping An Insurance’s investments, versus an average 3.2% for peers, according to Bloomberg Intelligence. In credit markets, the average price of high-yield dollar notes from Chinese borrowers slid some 2 cents Monday, set for the worst decline in about a year. That dragged down prices in the broader market for Asian junk bonds by 1 to 2 cents, traders said. Even debt with investment-grade ratings was stung. Yield premiums on notes from Country Garden Holdings Co., China’s largest developer by sales, widened to a record. The Hong Kong dollar fell to the lowest level this month, while the offshore yuan declined for a third day. FTSE China A50 Index futures slid 3.2% in Singapore. Mainland financial markets are closed for public holidays until Wednesday, when Hong Kong will be shut. S&P 500 Index futures dropped 1.2%. Evergrande is scheduled to pay interest on bank loans Monday, with a one-day grace period. While details on the amount due aren’t publicly available, Chinese authorities have already told major lenders not to expect repayment, people familiar with matter said last week. Evergrande and banks are discussing the possibility of extensions and rolling over some loans, the people said. Payments due Thursday include $83.5 million of interest on an 8.25%, five-year dollar bond, Bloomberg-compiled data show. Evergrande needs to pay a 232 million yuan ($36 million) coupon on an onshore bond the same day. The developer’s stock sank by as much as 19% on Monday to the lowest level since 2011. Its dollar bond due 2022 was indicated down 3.1 cents on the dollar at 26 cents, set for a record low. Nick Note: Warning to ALL people buying into the stock and real estate markets. Throw in people chasing higher yield… The End is neigh!

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US deep in red premarket, Dow tumbles over 450 pts

United States stock indexes traded significantly lower on Monday amid a global selloff, driven by inflation concerns, as well as the surge in new COVID-19 infections. Over the weekend, media reported that the Washington-held Quad summit should lead to a new semiconductor partnership among participants. The Dow Jones Industrial Average slid 1.37%, or 473 points at 4:24 am ET, while the Nasdaq lost 1.05%, or 160 points. The S&P 500 plunged 1.18% or 52 points at the same time. Nick Note: This is getting out of hand. Part of the fear in the market is the silence by the Chinese government on its latest wipe out of investors…especially the stupid US funds and investment bankers…. How did they hook them in. Its the classic free money trap. CHASING HIGHER YEILDS. Evergrande bonds were paying 8% in the classic what you see  is what you do not get! And for the record the owners of this debt are US retirement savers who log on to their IRA fund and check the yield……. . China is closed for 2 days another freeging holiday. My read is the Chinese government will intervene and bond investors will take up to a 80% hair cut. Before I jump off the bridge i need to get a read on what is going on. I see a China take over of Evergrande…..  As to the China real estate crises its worse in the US……… And the reaction in the US markets is overdone. Do not get me wrong a wipeout is coming… It will come as the FED raises rates and cut of the 150 billion a month in direct stimulus