A soggy start to the UK election will likely have a ‘stormy’ ending for the Conservative Party.
“Haven’t you forgotten something?”
Nasdaq Composite narrowly secured its fifth consecutive record close
On Friday 14th June 2024, the Nasdaq Composite edged up to close at a record high for the fifth consecutive session.
The tech-centric index rose slightly by 0.12%, finishing at 17688. The S&P 500 dipped slightly to close at 5431 and ending its four-day streak of gains.
The Dow Jones Industrial Average fell by 57.94 points, closing at 38589.
Elon Musk suggests Optimus robots could make Tesla a $25 trillion company – that’s more than half the current value of the S&P 500
It has been calculated that the S&P 500’s total value is currently $45.5 trillion. Tesla’s CEO, Elon Musk, claimed on Thursday 13th June 2024 that the company’s Optimus humanoid robots could potentially raise the automaker’s value to over half of that amount.
During the 2024 annual shareholder meeting in Austin, Texas, Musk, who reportedly identifies as ‘pathologically optimistic,’ declared that Tesla is not just entering a ‘new chapter,‘ but is on the brink of beginning an entirely ‘new book,’ with Optimus poised to play a pivotal role.
Tesla initially revealed its intention to develop humanoid robots at the AI Day event in 2021, showcasing a performer in a unitard as a stand-in for a sleek, gender-neutral robot prototype.
Musk’s vision
At the shareholder meeting, Musk was reserved about Optimus’ present capabilities. He suggested that, in the future, these robots could operate in a manner akin to Star Wars’ R2-D2 and C-3PO, undertaking tasks such as cooking, cleaning, factory work, or even teaching children.
In terms of shareholder value, Musk speculated that Optimus might play a key role in boosting Tesla’s market capitalization to $25 trillion eventually. No time scale was put forward.
And, don’t forget about the development of the robot taxi and of the fully autonomous vehicle.
Elon Musk’s bumper $56 billion pay deal to be reinstated as Tesla vote goes in favour
Tesla shareholders have voted to ratify CEO Elon Musk’s 2018 compensation package, which was previously rescinded by a Delaware judge in January.
During the annual meeting in Austin, Texas, shareholders voted in Musk’s favour.
Following Musk’s announcement that shareholders were likely to approve his pay package and a resolution to relocate the company’s incorporation to Texas, Tesla’s shares increased.
The vote endorsing the compensation plan does not supersede the court’s decision, yet it offers a public relations triumph for Musk and may aid his endeavor to persuade a court to grant him his performance options eventually.
Nice work if you can get it!
S&P 500 and Nasdaq continue to push higher after another all-time high record
Both the S&P 500 and the Nasdaq Composite each hit yet another all-time high on 13th June 2024. The S&P 500 notching fresh records for the last four consecutive days.
S&P 500 closed at another new all-time high on 13th June 2024
Nasdaq Composite closed at another new all-time high on 13th June 2024
17,667.56 USD – Up 59.12 on the day
Tech led AI frenzy feed the new moves to all-time highs!
Norway and Sweden discover large deposits of important rare Earth metals
Significant deposits of rare earth metals have been found in both Norway and Sweden.
Norway
Rare Earths Norway (REN) has announced the discovery of the largest deposit of rare earth elements in Europe at the Fen Carbonatite Complex in southeastern Norway.
The deposit reportedly contains 8.8 million metric tons of total rare earth oxides (TREOs), including an estimated 1.5 million metric tons of magnet-related rare earths, which are vital for technologies like electric vehicles and wind turbines.
This discovery marks a significant advancement in Europe’s efforts to decrease its reliance on imported rare earths, especially from China.
Sweden
The discovery in Arctic Sweden of over one million tonnes of rare earth metals could significantly aid the EU in reducing its reliance on China for these crucial elements, which are essential for a wide range of high-tech applications.
These findings are critical for the green transition and Europe’s goal of increased self-sufficiency in vital raw materials. It is crucial to acknowledge, however, that the extraction process is intricate and necessitates meticulous attention to environmental impacts.
Due to the required permitting processes and environmental assessments, it could take over a decade for the materials from these discoveries to enter the market.
Fen Carbonatite Complex
The Fen Complex, located in Nome, Telemark, Norway, is renowned for its unique assortment of igneous rocks, such as carbonatite. It represents the remnants of a volcanic feeder pipe from a volcano that erupted 580 million years ago, characterised by carbonate-rich magma. The volcanic pipe’s circular formation spans roughly 2 km in diameter.
The EU imposes higher tariffs of up to 38% on Chinese EVs
In a significant development that may affect the electric vehicle (EV) market, the European Union (EU) has tentatively agreed to levy tariffs on Chinese EV manufacturers.
This decision reportedly follows an inquiry into the surge of inexpensive, government-subsidized Chinese vehicles entering the EU market.
From 4th July 2024, Chinese EV producers who participated in the investigation will incur an average duty of 21%, while those who did not will face a substantial 38.1% tariff. Specific rates will be imposed on firms such as BYD, Geely, and SAIC.
Additionally, non-Chinese automobile companies manufacturing some EVs in China, including those based in the EU like BMW, will also be impacted. Tesla might receive a specially calculated duty rate upon request.
These levies are on top of the current 10% tariff on all electric cars manufactured in China. The EU’s action comes after the United States’ drastic measure last month to increase its tariff on Chinese electric cars from 25% to 100%.
Some critics view this anti-subsidy probe as protectionist, potentially harming China-EU economic relations and the worldwide automotive production and supply chain. The German Transport Minister has reportedly cautioned about the possibility of a trade conflict with Beijing.
Although the tariffs are intended to shield the EU’s own industry, they highlight the challenges of maintaining a balance between free trade and competitiveness in the swiftly changing EV sector.
Unless a qualified majority of EU nations opposes it, the tariffs will become permanent in November 2024. The European car industry stresses the need for free and fair trade but recognizes that promoting the adoption of electric cars requires a diverse strategy.
As the dispute over tariffs persists, the repercussions for the EV market are yet to be determined.
One thing is for sure, the consumer will suffer through these tariffs and also through extra road tax levies yet to be introduced, especially in the UK.
UK GDP flatlines – not so helpful for Sunak and his election campaign
In April 2024, the U.K.’s economic growth came to a standstill, figures released on Wednesday 12th June 2024 indicated, putting a pause on the subdued recovery from the previous year’s recession just weeks before the UK election.
Analysts had anticipated growth a levelling off following a 0.4% expansion in March 2024.
Over a longer period however, the outlook was slightly more positive, with a 0.7% increase in gross domestic product (GDP) in the three months leading up to April 2024.
The construction sector saw a 1.4% decrease, marking its third consecutive decline, and production output fell by 0.9%. However, the U.K.’s dominant service sector witnessed growth, with a 0.2% increase.
The UK had managed modest growth each month in the first quarter of the 2024 as the country emerged from a mild short technical recession.
Nasdaq and S&P 500 hit new all-time highs as Fed feeds scraps to the AI frenzy!
The S&P 500 soared to a new high, surpassing 5400 for the first time on Wednesday 12 June 2024, following the Federal Reserve’s latest policy statement and the May 2024 inflation report, which suggested a softening of inflationary pressures.
The S&P 500 index rose by 0.85%, closing at around 5421 while the Nasdaq Composite advanced 1.53%, finishing at 17608.
Both the S&P 500 and Nasdaq reached unprecedented levels and set closing records on Wednesday 12th June 2024. Conversely, the Dow Jones Industrial Average marginally declined by 0.09%, or around 35 points, to settle at 38712.
S&P 500 at new all-time high 12th June 2024
Nasdaq Composite at new all-time high 12th June 2024
The Federal Reserve maintained the interest rates, aligning with widespread expectations. The Fed also acknowledged some progress on inflation. Modest further progress has been made toward the Committee’s 2% inflation goal and this was more than enough coupled with the recent jobs report to push U.S. markets even higher.
A tiny glimpse of the ‘2% inflation future’ was all it took to send markets on an AI led feeding frenzy to push the S&P 500 and Nasdaq to new all-time highs.
One caveat though, the Fed’s recent forecasts predict only one rate reduction this year, a decrease from the three rate cuts anticipated earlier in 2024.
It was enough to propel markets to fresh all-time highs!
Apple’s stock reaches a record high following the unveiling of its AI software
Apple’s shares reached a new record high of approximately $207 per share on Tuesday 11th June 2024, surpassing the previous record set in December.
At its annual developer conference on Monday 10th June 2024, the company launched its highly anticipated venture into AI. Apple is playing catch-up in the AI race and this announcement cheered its loyal followers.
Analysts predict that the introduction of new AI features will prompt consumers to update their devices, as these features are exclusive to the latest models.
This is the perfect business model – new products driven by new features, this time it’s ‘AI’ for Apple Intelligence. I wish I thought of it – ‘A‘ for Apple and ‘I‘ or Intelligence. Not just any intelligence, this is Apple intelligence.
So, now we have Apple AI – let’s see what Apple’s version of AI really is.
Apple share price one year chart hitting $207 on 11th June 2024
S&P 500 and Nasdaq close at new all-time highs again
The S&P 500 and Nasdaq Composite reached new closing highs on Tuesday 11th June 2024, propelled by Apple as the tech giant’s stock hit a record itself.
The S&P 500 index climbed to a new high to close at 5375, while the Nasdaq Composite finished the day at 17343. Both indices also hit new intraday highs. However, the Dow Jones Industrial Average fell by around 120 points to close at 38747.
S&P 500 reaches new all-time high on 11th June 2024
Nasdaq Composite hits new all-time high on 11th June 2024
Investors seemed to be cashing in on Nvidia, a leader in artificial intelligence, and shifting focus to Apple, which recently introduced new features likely to drive a surge in iPhone upgrades.
Apple’s stock reached a new high during the trading session, its first since December 2023, with around a 7% increase. Nvidia’s stock declined by 0.7% as some profit taking ensued.
“Plenty of potholes, poo, party politics and politicians but where are the policies to fix the real issues?”
‘Just a load of… p’s!’
Probably just unachievable pledges and false ‘election’ promises in the manifesto… again!
Apple finally now has AI and it’s called: Apple Intelligence (AI)
Apple has entered the artificial intelligence race with the announcement of its version of AI – Apple Intelligence on Monday 10th June 2024, in its attempt to catch up in the AI race.
Reportedly to use it on your phone, you’ll need at least the high-end iPhone 15 Pro from this year’s lineup.
According to Apple’s website, Apple Intelligence will also be compatible with devices equipped with the M1 chip, including the iPad Air, iPad Pro, and Macs.
Apple Intelligence, set to launch in beta this autumn, will offer a variety of features. It will be able to proofread and rewrite your text in different tones, create personalized emojis known as ‘Genmoji,‘ and search for specific messages on your iPhone.
Additionally, it will summarize and transcribe phone calls, manage priority notifications, and integrate OpenAI’s ChatGPT for enhanced Siri responses.
Nothing new here then, just AI features already available elsewhere. Hopefully it will have a decent Apple AI make-over when it finally and fully arrives across all Apple products and platforms.
Apple isn’t leading in AI… yet – it’s just following for now!
Raspberry Pi tech IPO to raise £166 million in London listing debut
The British computing startup Raspberry Pi is aiming to raise £166 million ($211.2 million) from its initial public offering in London on Tuesday 11th June 2024.
The company, known for its compact single-board computers, has set its share price at 280 pence each. Conditional dealing of Raspberry Pi shares will commence on Tuesday, allowing specific investors, such as institutional buyers, to begin trading.
Based on the pricing of its shares, the company is valued at around £542 million.
This is a rare win for London’s stock exchange which has struggled to attract technology listings in recent time, losing out to the U.S.
In early morning trading Tuesday 11th June 2024 – Raspberry Pi shares climbed over 30%
Microsoft rolls back on AI feature that captures screenshots on new PCs
After Microsoft announced its Recall feature for Copilot+ AI PCs, security analysts reportedly said it could expose user data to hackers and cyber-crime.
Microsoft reportedly said Friday 7th June 2024 that the feature will be ‘off‘ by default.
The software company also announced security protections.
Gold: a precious dilemma as it becomes scarce
The shimmering appeal of gold has enchanted humans for ages, yet beneath its radiant exterior, miners face escalating challenges.
According to the World Gold Council, the gold mining sector is finding it increasingly difficult to maintain production growth as the reserves of this precious metal become scarcer.
Depletion
Discovering new gold deposits is becoming increasingly challenging as many potential areas have already been scouted, leaving limited unexplored territories. Large-scale gold mining requires extensive exploration and development, often spanning 10 to 20 years before a mine becomes operational.
Exploration
Approximately 10% of global gold discoveries produce enough metal for mining operations. The success rates for exploration are quite low, and the chances of a discovery advancing to the stage of mine development are minimal.
Production
Despite record first-quarter mine production in 2024, the overall trend is concerning. Since around 2016-2018, global gold production has plateaued, with no sustained growth.
In 2023, mine production increased by a mere 0.5% compared to the previous year. The growth rates have steadily declined over the past decade.
Reserves
Globally, around 187,000 metric tons of gold have been extracted. China, South Africa, and Australia are at the forefront of production. The United States Geological Survey estimates that there are approximately 57,000 tonnes of minable gold reserves remaining.
Regulation
The process of obtaining government permits has grown increasingly difficult, with bureaucratic procedures causing delays in mining operations. Additionally, remote mining projects necessitate infrastructure such as roads, power, and water, which adds to the costs and complexity.
In summary, the glittering seams of gold are thinning. Miners grapple with scarcity, regulatory hurdles, and the diminishing promise of new discoveries.
As we dig deeper, the quest for gold becomes a delicate balance between ambition and reality.
Gold chart over one year
Countries holding largest gold stockpiles of gold
U.S. job gains reached 272,000 in May 2024 – exceeding expectations of 190,000
The U.S. economy exceeded job growth expectations in May 2024, alleviating concerns of a labour market downturn but potentially diminishing the Federal Reserve’s motivation to cut interest rates.
Non-farm payrolls surged by 272,000 for the month – a significant increase from April’s 165,000 and surpassing the consensus forecast of 190,000.
Concurrently, the unemployment rate increased to 4%, marking the first instance it has reached this level since January 2022.
Is the diamond industry ‘in trouble’ as lab-grown gems gain market share?
The demand for diamonds has declined as its allure fades in a key consumer market, China.
“Diamonds don’t really fit in anymore despite the strong legacy of De Beers under Anglo,” independent diamond industry analyst Paul Zimnisky reportedly said.
According to Zimnisky’s rough diamond index, diamond prices have decreased by 5.7% this year, marking a decline of over 30% from their peak in 2022.
Lab-grown diamonds, potentially up to 85% less expensive than natural ones, are created in a controlled environment using high pressure and heat to mimic the formation of natural diamonds in the Earth’s mantle.
Sales of lab-grown diamonds have increased from a mere 2% of the global diamond jewellery market in 2017 to 18.4% in 2023, as reported by Zimnisky.
A fall in marriage rates as well as growing popularity for gold and lab-grown gems all drove down Chinese demand for diamonds, according to market research firm Daxue Consulting.
The lifting of pandemic restrictions has led consumers to redirect their spending towards travel experiences rather than diamond products.
The preference for lab-grown diamonds plays a critical role in driving down prices of natural diamonds.
Is this German chipmaker about to gain more traction in the AI race
While Nvidia continues to dominate the AI chip market headlines, Infineon, a German semiconductor company, is also making waves.
Infineon is capitalizing on the AI surge, aiming to generate billions in revenue through the sale of premium chips.
As AI applications proliferate, encompassing data centre servers and integrated chipsets for PCs and mobile devices, the demand for AI chips is skyrocketing. This trend has only one direction, and that is up.
Infineon is certainly one to watch – it may just become the next major player in the industry.
Others to watch: ARM Holdings, AMD and Intel
China’s exports up by 7.6% in May – more than expected
China’s exports in May increased more than anticipated, whereas imports fell short of expectations, according to customs data released on Friday 7th May 2024.
Exports increased by 7.6% in May from the previous year, surpassing the analysts’ expectations of 6% growth. Imports, however, increased by 1.8% during that time, missing forecasts of an expected 4% growth.
According to analysts’ calculations based on official data, China’s imports and exports to the U.S. and EU declined during that period. However, trade with the Association of Southeast Asian Nations (ASEAN) increased, with a 4.1% year-on-year rise in China’s exports to the region from January to May.
China’s exports to Russia decreased, but its imports from Russia grew by 7.5%. Despite trade tensions with the U.S., China’s exports have remained robust, contributing to the country’s overall economic growth.
European Central Bank (ECB) cuts interest rate by 0.25% to 3.75%
On Thursday, 6th June 2024, the European Central Bank announced a reduction in interest rates, a move that was widely expected, despite persistent inflationary pressures in the eurozone, which comprises 20 nations.
The central bank’s primary rate has been lowered to 3.75%, a decrease from the historic high of 4% where it has remained since September 2023.
The money markets had completely anticipated the 0.25% reduction at the June meeting. This marks the first decrease since September 2019, when the deposit rate was below zero.
Nvidia $3 trillion market cap propels S&P 500 and Nasdaq to new all-time highs
The S&P 500 reached a new high as Nvidia surpassed the $3 trillion mark for the first time, and the anticipation of an interest rate cut grew due to softer-than-expected job data.
S&P 500 all-time high as of 5th June 2024
Similarly, the Nasdaq 100 and Nasdaq Composite achieved new record highs
AI boom catapults Nvidia passed Apple’s market cap’ valuation
Artificial intelligence (AI) chipmaker Nvidia passed Apple’s market cap’ to become the world’s second most valuable company after Microsoft.
Nvidia’s shares have surged 24% following its impressive earnings report in May, in contrast to Apple’s shares, which have increased by only 5% this year amid a slowdown in sales growth in recent months.
Nvidia one year share price as of 5th June 2024
Nvidia Market Cap at $3.01 trillion as of 5th June 2024
Election UK style. “Take me to your leader.” “Err… we don’t have one!”
Election UK style. “Take me to your leader.” “Err… we don’t have one!”
Election UK style – “New rules please!”
Conservative Party HQ – “I have a plan!”
How about if we sell ‘slogan’ advertising space on the lectern. ‘I Have a plan‘ and ‘Change‘ spring to mind. A plan to do what and a change to what… exactly?
Banknotes with King Charles III enter circulation for the first time
Banknotes featuring a portrait of King Charles III entered circulation on Wednesday 5th June 2024.
Charles’s portrait will be featured on the front of the £5, £10, £20, and £50 banknotes, visible through the notes’ transparent security window. He is only the second monarch to appear on British banknotes, following Queen Elizabeth II.
Currently, there are more than 4.6 billion Bank of England notes in circulation, with a combined value of around £82 billion.