Category: Info

Posted on

Iceberg A23-A is on the move

Iceberg

Iceberg A23-A is the world’s biggest iceberg that has been stuck to the ocean floor for more than 30 years.

Scientists believe the A23-A’s breakaway from Antarctica was a natural occurrence, but say it provides a stark reminder of the potentially disastrous implications as global sea levels rise.

It split away from the Antarctic coastline in 1986 and became an ice island in the Weddell Sea. It is about 4,000 sq km (1,500 sq miles) in area, which is more than twice the size of Greater London, and 400m (1,312 ft) thick, which is taller than the London Shard.

On the move

Recently, it has started to move at a faster pace and is now about to leave the Antarctic waters. Scientists believe it has lost its grip on the sea floor and is being pushed by winds and currents. It is likely to follow the path of other icebergs from the Weddell Sea and head towards the South Atlantic, where it will eventually melt and break apart.

Map of Antartica showing Weddell Sea

A23-A Iceberg moving through the Weddell Sea

Ecosystem

Icebergs are important for the ocean ecosystem, as they carry fresh water and nutrients that support marine life. They also affect the climate, as they reflect sunlight and cool the air. Iceberg A23-A is a remarkable natural phenomenon that has been observed for decades by researchers and satellites.

This is not happening because of climate change – it is a natural process of nature.

Posted on

Britcoin the new UK digital pound planned

Digital pound

Britcoin is a potential British digital currency that would be issued by the Bank of England and backed by the Government.

It would be tied to the pound and have a stable value, unlike cryptocurrencies such as Bitcoin. It would be accessible through digital wallets and interchangeable with cash and bank deposits. The Treasury and the Bank of England are consulting on its launch, which could take place by 2030.

Britcoin could be used for everyday transactions, both in-store and online, and could make payments more efficient and enable innovation. However, some MPs have warned that Britcoin could cause severe financial damage and undermine the role of banks.

Some MPs have warned that Britcoin could cause severe financial damage and undermine the role of banks for several reasons.

Concerns about introducing a digital pound

  • Britcoin could increase the chance of bank runs, if customers were able to quickly and easily switch their bank deposits into digital pounds, especially during times of financial stress or panic. This could reduce the liquidity and solvency of banks and make them more vulnerable to failure.
  • Britcoin could also raise the cost of borrowing for banks and consumers, as banks would need to replace the funding that they would lose from deposits with more expensive sources. The Bank of England estimated that if 20% of bank deposits turned digital, it could result in a rise in interest rates on commercial loans.
  • Britcoin could pose risks to data privacy and security, as the government or third parties could potentially access, track, or control how users spend their digital funds. This could raise ethical and legal issues and require robust regulation and protection.
  • Britcoin could also have unintended consequences on the wider economy and society, such as affecting monetary policy, financial inclusion, innovation, and competition. The MPs said that the benefits and costs of Britcoin should be clearly evidenced before any decision is taken to introduce it.
Digital £ pound
Art illustration: Digital £ pound proposal – Britcoin

The development of a state-backed ‘digital pound’ should proceed with caution, MPs have warned.

The benefits of the currency are still unclear and there must be systems in place to protect cash access and privacy, the Treasury Committee said in a report.

The Bank of England (BoE) and the Treasury have been consulting on the idea since February 2023. They are currently designing what such a system could look like. The CBDC would be directly issued by the Bank of England (BoE), just like banknotes.

This means people would have all the same safety and security that they have with their cash currently, which is different to cryptocurrencies that fluctuate in value and are generally run by private companies.

Posted on

Record number of fossil fuel lobbyists attend COP28 climate talks

Oil

A report published Tuesday by the Kick Big Polluters Out coalition found that at least 2,456 fossil fuel lobbyists registered to attend the two-week long summit. That’s more than almost every other country delegation, except for Brazil (3,081) and COP28 host the United Arab Emirates (4,409), the report said.

Supporters say the number of fossil fuel lobbyists attending the talks is ‘beyond justification’ and demonstrates that polluting industries are seeking to advance a fossil fuel agenda.

Others however say that Big Oil’s participation at COP28 should be welcomed.

Unabated

There’s also a debate about whether an agreement should centre on abated fossil fuels, which are trapped and stocked with carbon capture and storage technologies. Unabated fossil fuels are largely understood to be produced and used without substantial reductions in the amount of emitted greenhouse gases.

Delegates at the beginning of COP28 sealed a landmark deal to help the world’s most vulnerable countries pay for the impacts of climate disasters. To me, that suggests it is okay to carry on with business as usual because the industry can throw money at the poorer people suffering at the brunt end of climate effects.

Announcements at COP28 have sought to help decarbonize the energy sector, with nearly 120 governments pledging to triple renewable energy capacity by 2030, recent news reports show.

Whichever way we care to spin this, we are nowhere near ready to switch to renewables.

Posted on

GTA VI trailer leaked

GTA VI

Rockstar Games publishes Grand Theft Auto trailer early after it was leaked on X

Take-Two Interactive Software shares fell some 4% in extended trading on Monday 4th December 2023 after the company released its trailer for the next version of the Grand Theft Auto game.

GTA is due for release in 2025. The company had originally planned to market the trailer hours later, at 6 a.m. ET. on Tuesday 5th December 2023 but a leak caused Take Two to post it earlier.

After the leak, Rockstar Games, a subsidiary of Take-Two, published the trailer on YouTube. And X suspended the account that posted the leaked video.

Grand Theft Auto VI due for release 2025

Record seller

Grand Theft Auto VI is likely to impact Take Two’s revenue growth following its release. Grand Theft Auto V debuted in 2013, and it’s now the second best-selling video game of all-time, having sold more than 190 million copies. Microsoft-owned Minecraft, is still the top selling game of which over 300 million copies have been sold.

Posted on

Spotify to cut jobs

Music app

Music streaming service Spotify is laying off some 17% of its workforce, in a dramatic move aimed at reducing its costs and adjusting for a slowdown in growth, CEO Daniel Ek said Monday 4th December 2023.

It is reported Ek said Spotify invested too much in 2020 and 2021 and had to ‘rightsize’ its costs for a new economic reality.

Spotify reported a 65 million euros ($70.7 million) profit in the third quarter, citing lower spend on marketing and personnel.

The latest round of cuts is reported to equate to roughly 1,500 jobs – but this has not been confirmed by Spotify.

Posted on

Bitcoin marches on through $40,000

Bitcoin surges

Bitcoin extended its rally overnight, climbing past the $41,000 level for the first time since May 2022.

The price of Bitcoin quickly soared above $41,000 easily taking out $40,000. The cryptocurrency is up around 13% over the past month and up more than 130% year to date. But the price of Bitcoin is down more than 40% from its all-time high in 2021.

In November 2023, analysts reportedly said Bitcoin could soar to as high as $150,000 in 2025, as it rides a new bull cycle. Other altcoins are available, as they too ride the coat tails of Bitcoin’s encouraging move. Be aware though, Bitcoin is a volatile asset and as such is subject to dramatic moves in either direction. BE CAREFUL!

Bitcoin price snapshot 09:35GMT 4th December 2023

Why is Bitcoin on a tear?

Cryptocurrency industry analysts have suggested this bull-run could lead to fresh all-time highs in 2024 above $100,000.

Excitement around a Bitcoin ETF being approved in the U.S. in 2024 as well as the process of Bitcoin halving due in April 2024 is fueling this rally in cryptocurrencies.

Many also say the crypto industry is enjoying a market climb due to the FTX case and the Binance settlement with the U.S. Department of Justice (DoJ) as the two outstanding issues that were holding up the crypto market were resloved.

Posted on

Gold soars to a new record December 2023

Gold price

Gold was on a tear overnight 3rd December 2023 ripping to a new all-time intra-day high of 2135.

Gold prices are on course to hit fresh highs in 2024 and could remain above $2,000 levels, analysts predict. Geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts are cited as the drivers.

Prices of the precious metal have risen for two consecutive months. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.

Gold price 5 day 2023

Gold soars to a new record December 2023

Gold price 1 month 2023

Gold soars to a new record December 2023

Gold at $2500?

It has been estimated that gold prices could reach up to $2,200 by the end of 2024. Some have even suggested it could go as high as $2,500.

This was the highest level ever recorded since the gold price began to be tracked in 1970.

Posted on

UK economy growth forecasts cut for next two years

UK economy growth

The UK economy will grow much more slowly than expected in the next two years as inflation takes longer to fall, the Office for Budget Responsibility (OBR) says.

Are we locked in a never-ending austerity cycle?

Living standards are also not expected to return to pre-pandemic levels until 2027-28, the Office for Budget Responsibility (OBR) said. It comes as the chancellor announced tax cuts and a rise in benefits in his 2023 Autumn Statement.

The OBR publishes two sets of economic forecasts a year, which are used to independently predict or guess what may happen to government finances. These are based on its best guess calculations about and are subject to ‘change’.

It’s just a forecast – so should we take any notice?

According to the OBR, the UK will grow by 0.6% in 2023 – much better than previous predications last autumn, when it calculated the economy would fall into recession and shrink.

However, it slashed its growth outlook to 0.7% in 2024 and 1.4% in 2025 – down from a previous forecast of 1.8% and 2.5%.

The OBR warned that inflation – currently 4.6% – will only fall to 2.8% by the end of 2024, before reaching the Bank of England’s 2% target in 2025. Previously it forecast inflation would easily beat the target next year.

OBR & ONS data set

These gloomy predictions put the Government on a collision course with the Bank of England and Britain’s budget watchdog as they clash over whether or not the UK economy is on the up.

The Governor of the Bank warned the UK was facing years of low growth, while the Office for Budget Responsibility (OBR) said the Chancellor’s ‘vague’ plans to cut spending put the public finances at risk.

Let’s re-visit these predictions this time next year and see how close or how far off the mark they were.

Posted on

Heat is on at COP28

CO28

United Nations’ biggest and most important annual climate conference to-date, gets underway as the United Arab Emirates on Wednesday 29th November 2023 defended what it described as ‘fake news’ designed to undermine its work as the host of the COP28 climate conference.

The UAE organizers slammed a number of ‘fake press‘ releases in the name of COP28. Among them, a letter claiming COP28 president-designate Sultan Al-Jaber was due to step down from his position as chief executive of state oil giant the Abu Dhabi National Oil Co. (ADNOC).

Al-Jaber’s appointment as COP28 president-designate had provoked a furious backlash from climate activists when it was first announced. He reportedly pushed back over reports earlier in the week that said the UAE planned to use its role as the host of the climate summit as a platform to lobby foreign government officials for oil and gas deals.

Even so, the COP28 summit, which starts on Thursday 30th November 2023 and is scheduled to run through to 12th December 2023. I will provide a critical forum for government officials, business leaders and campaign groups to accelerate action to tackle the climate crisis. Let’s hope there is no further rolling back on previous pledges such as the UK’s government announcement to increase the number of North Sea oil and gas exploration and recovery licences.

OPEC

Meanwhile, also on Thursday 30th, the influential Organization of Petroleum Exporting Countries (OPEC) and its allies will convene to decide the next production policy steps in a delayed meeting caused by the conflict in the Middle East.

COP28
Art illustration of renewable and fossil fuel energy – Heat is on at COP28

UAE, one of the world’s major oil producers and a key OPEC+ component, is keen to burnish its reputation as a champion of the transition to green energy.

Tangible climate action though is the best way to push back all scepticism and cynicism. Now is as good as any time to start.

Production cuts will come – some analysts predict $100 a barrel.

The world is not ready to relinquish its thirst for oil and gas… just yet. It is still hungry for traditional power – and renewables is not ready to take over.

Posted on

Euro zone inflation drops to 2.4%, well below expectations – bringing early Christmas cheer

Cheers

Annual inflation in the euro zone sank to 2.4% in November 2023 from 2.9% in October 2023, data showed Thursday 30th November 2023.

Core inflation was also below expectations at 3.6%.

The European Central Bank has stressed that it is too early to declare victory in the 20-member euro zone bloc, as they monitor potential pressures from wage increases and energy markets.

Headline inflation has now fallen significantly from the peak levels of 10.6% in October 2022.

Target of 2% and is well within reach.

Posted on

China factory activity shrinks

China factory output

China’s factory activity contracted for a second month in a row in November 2023.

Non-manufacturing activity hit yet another new low this year, signalling that the world’s second-largest economy was still not out of the woods and may require more policy support.

The official manufacturing purchasing managers’ index unexpectedly dropped slightly lower to 49.4 in November 2023 from 49.5 in October 2023, according to data from the National Bureau of Statistics released Thursday 30th November 2023.

Posted on

Robinhood, the stock trading app to launch in UK

Robinhood app

Online investments app Robinhood said Thursday 30th November 2023 that it’s set to launch its platform in the U.K. in early 2024, marking the company’s third attempt at cracking international expansion.

Features on offer by the firm include the ability to choose from 6,000 U.S. stocks including Tesla, Amazon and Apple, and 24-hour trading five days a week. However, Robinhood will not offer U.K. stocks to begin with but will look to add them as it brings more products into the platform later. The U.K. version won’t include options and other derivatives at launch, either.

FCA warned of ‘gamification’

The FCA has previously warned about ‘gamification’ of investments, something the U.S. Securities and Exchange Commission is also worried about. Companies are obligated to respect consumer standards set out by the regulator.

Regulators are concerned brokerage apps like Robinhood and eToro, which engage retail investors with stimulating features like colourful graphics, push notifications, and a game-like interface, may encourage excessive trading that harms investors but is profitable for the market-makers.

Safeguards

Customer cash will be held in segregated accounts protected by U.S. Federal Deposit Insurance Commission insurance, Robinhood said, rather than the U.K. Financial Services Compensation Scheme. Robinhood users will be able to make a 5% annual yield on cash held in their accounts.

This will be the third attempt by Robinhood to launch in the UK.

Posted on

Elon Musk and his ‘X’-rated comment

Tweet!

It has been a turbulent time at Twitter since Musk’s acquisition and the subsequent renaming of the company to X.

X is a subsidiary of X Holdings Corp., which is owned by Elon Musk. X has faced several issues and controversies since its inception, such as advertiser boycott, declining user base, staff layoffs, and more recently accusations of antisemitism and even more recently of a profane outburst levelled against X advertisers.

What a mess

Elon Musk launches attack on X advertisers in a profanity-laced outburst.

Musk has slammed advertisers that have left X, warning they will kill the social media platform. At an event in New York, he accused companies that have joined an advertising boycott of the site formerly known as Twitter of trying to blackmail him.

Musk tells X (Twitter) advertisers to go ‘f**k yourselves,’ but admits it will die without them: Despite this, Musk refused to accept responsibility for the impact of his statements on X’s ability to do business. 

Instead, the billionaire insisted that if X (Twitter) went under, the blame would be entirely on the advertisers who fled as opposed to his decisions as its owner which more likely pushed them away.

His message to advertisers leaving X of: ‘Go f**k yourself’ – didn’t help matters as he admits responding to anti-Semitic post on X was one of the most foolish things he’s done on the platform.

Elon Musk is reported to have said on Wednesday 29th November 2023 that he regretted his November 15th tweet allegedly endorsing an anti-Semitic conspiracy theory.

Is the death knell of X and of a $44 billion investment?

Musk should be a force for good in the world – could that still happen?

Posted on

U.S. GDP grew at a 5.2% in Q3, stronger than expected

U.S. GDP revision

U.S. GDP figure better that forecast

The U.S. economy grew even stronger than previously calculated in the third quarter, the result of better than expected business investment and stronger government spending, the Bureau of Economic Analysis reported  Wednesday 29th November 2023.

Gross domestic product (GDP), a measure of all goods and services produced during the three-month period, climbed to 5.2% annualised pace, the department’s second estimate showed. The increase superseded the initial 4.9% figure and was better than the 5% forecast from economists.

Upward revision

Primarily, the upward revision came from increases in non-residential fixed investment, which includes structures equipment and intellectual property. The category showed an increase of 1.3%, which still presented a sharp downward shift from previous quarters. Government spending also helped boost the Q3 estimate, rising 5.5% for the July-through-September 2023 period.

However, consumer spending registered a downward revision, now rising just 3.6%, compared to 4% in the initial estimate.

Inflation

There was some mixed news on the inflation front. The personal consumption expenditures price index, a gauge the Federal Reserve follows closely, increased 2.8% for the period, a 0.1% downward revision.

Corporate profits increased 4.3% during the period, up sharply from the 0.8% gain in the second quarter.

Posted on

Could gold prices reach new all-time highs in 2024?

Gold a safe haven

Some expect gold to above climb $2,500

Gold prices are on track to rally to all-time highs in 2024 on the back of interest rates increases, inflation fear, looming recessionary concerns and geo-political unrest.

The precious metal is always sought after as a safe haven asset. The gold price hit a record intraday high of $2,072.5 on 7th August 2020, according to data. Some analysts say it could surpass that level and push beyond the record.

Another positive driver for gold is an anticipated peak in Fed rate hiking cycle as well as upcoming topping out of U.S. dollar strength.

Gold usually performs well during uncertain times

  • Gold tends to perform well in periods of economic uncertainty such as recessions and stagflation due to its status as a reliable store of value.
  • Gold is often used as a hedge against inflation.
  • Any type of recessionary move would be positive for gold.
  • Gold should trade higher when interest rates stop rising and the dollar retreats.
  • As interest rates rise, demand for gold drops as alternative investments like bonds become more appealing and yield better returns. These may now have peaked.
  • Gold prices tend to have an inverse relationship with interest rates.
  • Central bank purchases of gold have been consistently strong, alongside consumer demand for the precious metal.

Gold price year on year

  • Some analysts are particularly bullish on gold and have called for a target of $2,500 by the end of next year.
  • There has been a return of physical gold jewellery demand from China and India as both economies improve and retail spending returns.
  • First quarter gold jewellery demand in China was reported just shy of 200 tons. Analysts project more than 700 tons of jewellery demand from China by the end of 2023.
  • Chinese retail gold demand has been resilient in 2023 even as consumption of other commodities remained weak.

The target is $2,500 by the end of 2024

Much of this has to do with the fact that recessionary forces may take hold beginning early in 2024.

Let’s watch and see.

NOTE: This is not investment advice!

You must, as always do your own careful research before making an investment.

REMEMBER: RESEARCH! RESEARCH! RESEARCH!

Posted on

Amazon announces new AI chip

Amazon AI chip

Amazon Web Services (AWS) announced Trainium2, a chip for training artificial intelligence (AI) models, and it will also offer access to Nvidia’s next-generation H200 Tensor Core graphics processing units.

Amazon’s AWS cloud department of the encompassing Amazon empire has announced new chips for customers to build and run artificial intelligence (AI) applications on, as well as plans to offer access to Nvidia’s latest chips.

Amazon Web Services is attempting to stand out as a cloud provider with a variety of cost-effective options. It won’t just sell cheap Amazon-branded products, though. Just as in its online retail marketplace, Amazon’s cloud will feature top-of-the-line products from other vendors, including highly sought after GPUs from top AI chipmaker Nvidia

AWS will host a special computing cluster for customers and Nvidia to use. AWS customers can start testing new general-purpose Graviton4 chips.

Amazon’s dual-pronged approach of both building its own chips and letting customers access Nvidia’s latest chips might will help it against its top cloud computing competitor, Microsoft. 

Posted on

Office for Budget Responsibility says UK government spending plans ‘a very big risk’

Hopeful

Spending plans outlined in the chancellor’s Autumn Statement represent ‘a very big fiscal risk’, according to the UK’s OBR.

Mr Richard Hughes, chair of the Office for Budget Responsibility (OBR), told MPs on the Treasury Select Committee that spending plans carried a level of ‘uncertainty’. He suggested that much of the promised spending is funded by projected savings rather than income already received.

Last week, the OBR slashed its forecast for UK economic growth.

In March, the OBR said it expected GDP – a measure of the size and health of a country’s economy – to grow by 1.8% in 2024 and 2.5% in 2025.

Predications cut

Those predictions have now been cut, with a new forecast suggesting the UK economy will grow by 0.7% in 2024 and 1.4% in 2025.

‘It is very difficult to assess the credibility of the government’s spending plans, because after March 2025 the government doesn’t have any spending plans,’ Mr Hughes said, as he and other members of the OBR faced questions on the Autumn Statement.

Tax by stealth

Even though the chancellor announced a cut to NI rates, he opted to leave NI and income tax thresholds untouched, meaning they remain frozen until 2028. By doing this, more workers will fall into the higher tax bracket thus creating larger than expected tax revenue for the treasury. And, as workers secure pay rises, they may end up paying more tax if they are dragged into that higher tax band.

Some 2.2 million more workers now pay the basic rate income tax of 20% compared with three years ago, according to official figures, while 1.6 million more people have found themselves in the 40% tax bracket in the same period.

Just a thought, wasn’t the former UK prime minister ousted because of unfunded projections or was that unfunded tax cuts?

Only saying…

Posted on

Cyber-attack affects law firms

Hacker

A recent cyber-attack on CTS, a company that provides IT services to law firms and other organisations in the UK legal sector. 

It was reported the cyberattack occurred on Wednesday, 22nd November 2023, and caused a widespread outage that affected dozens of law firms and homebuyers. 

The cyberattack was reportedly caused by a CitrixBleed bug that has targeted other firms in recent weeks. 

CTS said that it was working with a global leader in cyber forensics to investigate the incident and restore the services as soon as possible. 

The cyberattack has raised concerns over the security and integrity of the data and systems of the legal sector, as well as the potential impact on the transactions and completions of the homebuyers.

The problem at CTS is having a knock-on effect on the firms involved in property completions. It is thought around 80 law firms have been affected.

Posted on

Bank of England governor worried over UK growth outlook

Central Banks are struggling to catch-up with inflation

The governor of the Bank of England, Andrew Bailey has raised concerns over economic growth as he warned again that interest rates will not be cut in the ‘foreseeable future’.

The bank boss said he was concerned over the UK economy’s potential to grow. It comes after the government’s forecaster cut its growth outlook for the UK, due to high inflation, interest rates, energy and food price increases which were exacerbated by the Covid pandemic and Russia’s invasion of Ukraine.

Inflation, which is the rate consumer prices rise at, has dropped sharply in recent months, falling to 4.6% in the year to October largely as a result of lower energy prices.

However, it is still more than double the Bank of England’s 2% target and Mr Bailey warned lowering inflation further would be ‘hard work’.

Interest rates are currently at 5.25%, a 15-year high, which has pushed up borrowing and mortgage costs.

The Bank of England (BoE) failed abysmally to maintain inflation at 2%.

Posted on

Virgin transatlantic flight to make history using 100% green fuels

Virgin 100% biofuel transatlantic flight

The first transatlantic flight using 100% sustainable aviation fuel (SAF) is scheduled to take off on Tuesday, 28th November 2023. 

UK Government funded project

The flight is operated by Virgin Atlantic and will fly from London’s Heathrow to New York’s JFK airport. The flight is part of a UK government-funded project to demonstrate the feasibility and benefits of using SAF as an alternative to conventional jet fuel. SAF can reduce carbon emissions by over 70% compared to fossil jet fuel. 

The flight will also use biochar credits to offset any remaining emissions and achieve net zero.

Biochar is the lightweight black residue, made of carbon and ashes, remaining after the pyrolysis of biomass, and is a form of charcoal.

Support

The flight is supported by a consortium of companies, including Boeing, Rolls-Royce, BP, Imperial College London, University of Sheffield, Rocky Mountain Institute, and ICF. The transatlantic flight has received a permit to fly from the UK Civil Aviation Authority, after undergoing technical assessments and ground testing. 

The flight will use a Boeing 787 Dreamliner powered by Rolls-Royce Trent 1000 engines. The SAF used will be made primarily from waste oils and fats, such as used cooking oil.

The flight is expected to be a historic milestone for the aviation industry, as it will showcase the potential of SAF to decarbonise aviation and create a greener future. SAF could also create a UK industry with an annual turnover of £2.4 billion by 2040 and support up to 5,200 UK jobs by 2035.

First transatlantic flight to use 100% SAF

The flight is not the first transatlantic flight to use SAF, but it is the first to use 100% SAF. In 2019, Gulfstream flew a G600 aircraft from Georgia to the UK using a 30/70 blend of SAF and jet fuel. 

The Virgin Atlantic flight will be the first to use pure SAF on a commercial airliner.

Update 29th November 2023 – History made

The first transatlantic flight by a large passenger aeroplane, fueled by ‘greener fuel’ was a success. Operated by Virgin Atlantic, it flew from London’s Heathrow to New York’s JFK airport.

Posted on

Is the shine returning for gold as investors place bets on rate cuts?

Gold

Gold prices on Monday 27th November 2023 climbed to a more than six-month high as the U.S. dollar weakened.

Investors, it is reported, have placed their bets, suggesting the Federal Reserve is finished with interest rate hikes.

Gold was up around 0.52% at $2,012 per ounce in early afternoon trading (London time). It reached a high of $2,017.82 earlier in the day. Gold futures for December 2023 hit $2,018.90 according to analysts’ data.

CME Fed watch tool

The dollar index, a measure of the greenback against major currencies, was 0.13% lower as markets price in a more than 90% chance the Fed will hold rates at its next two meetings.

Analysts at Goldman Sachs reportedly said that the outlook for 2024 is that gold’s ‘shine is returning’.

The potential upside in gold prices will be closely tied to U.S. real rates and dollar moves.

Posted on

Flying taxi company receives EU approval for its electric jets

Flying taxi

Lilium is a German start-up that is developed a five-seater electric jet that can take off and land vertically. It is a flying taxi.

The company aims to offer sustainable, high-speed air mobility through its aircraft, vertiports and digital service. Lilium successfully tested its prototype in 2019 and 2021 and plans to launch its services in multiple cities by 2025. 

eVTOL market

Lilium is one of the leading companies in the emerging eVTOL market, which faces challenges such as regulation, infrastructure, safety and public opinion. Lilium claims that its jet is faster, quieter and more efficient than its competitors, and that it can travel up to 300 km in just 60 minutes.

Lilium has been granted EU approval to design and operate its electric vertical takeoff and landing vehicles globally.

Lilium is a German start-up that is developed a five-seater electric jet that can take off and land vertically.

It’s a key milestone for the industry. Lilium has been working for several years to get such vehicles ready for commercial market.

Posted on

Santa rally likely this December 2023?

Sata rally 2023?

Santa rally is a term that refers to the tendency of the stock market to rise in the last week of December and the first two days of January.

This is not a guaranteed or consistent pattern, and it may depend on many and various factors that affect the market performance.

However, the stock market trends in December are historically positive, according to some resources. 

When it’s cold outside sometimes the market get hot

The term ‘Santa rally’ refers to the tendency of the stock market to rise in the last week of December and the first two days of January. 

Some possible explanations for this phenomenon are tax considerations, increased holiday spending, optimism and goodwill, and institutional investors adjusting their portfolios before the year end.

But it can get cold too

However, the stock market performance in December may vary depending on the economic and political conditions of the year. For example, in 2022, the stock market had its worst year since 2008, and many major indices were negative for December. The coronavirus pandemic, the trade war with China, the Brexit uncertainty, and the U.S. presidential election (2020) and problems that followed that election were some of the factors that contributed to the market volatility and decline.

Therefore, the stock momentum going into December 2023 may depend on how the current issues and events are resolved or at least managed. The market for 2023 and right now is in a general upward trend.

Some of the key factors that may influence the market are geo-political issues, the wars between Ukraine and Russia – Israel and Palestine, inflation rates, interest rates, budgets, corporate earnings, fiscal news, central bank interventions and other brewing world tensions.

Impossible to predict, but we can make an educated guess

It is not possible to predict with certainty how the market will behave at this time of year (or any for that matter), but looking at historical data, technical analysis, fundamentals, stock market movements in general and the overall news pattern – it is possible to make a more ‘informed’ decision.

Warning!

Don’t rely on it though – ‘nothing’ is, absolutely ‘NOTHING‘ is definite in the stock market.

Trade carefully and enjoy the holiday.