Monday, July 14, 2025

Inflation: Ahead Of Tomorrow's Release Of The June CPI Numbers....

...The Cleveland Fed Inflation Nowcast is looking for a month-over-moth uptick.

From the Federal Reserve Bank of Cleveland, updated through today: 

Inflation, month-over-month percent change 

Month          CPI     Core CPI      PCE      Core PCE    Updated 

July 2025     0.16      0.24          0.16          0.22          07/14 

June 2025   0.25      0.23          0.23          0.22          07/14 

Note: If the cell is blank, it implies that the actual data corresponding to the month for that inflation measure have already been released.

....MUCH MORE, including year-over-year guesses nowcasts (2.64% vs last month's 2.4% YoY)

For comparison, the June 11 BLS release of the May numbers had both headline and core printing at a 0.1% increase. (and YoY headline at 2.4%)

"Blame Canada! Measles Edition"

From Marginal Revolution, July 12:

Polimath has a good post on measles. The recent spike in U.S. cases has drawn alarm. As the New York Times reports:

There have now been more measles cases in 2025 than in any other year since the contagious virus was declared eliminated in the United States in 2000, according to new data released Wednesday by the Centers for Disease Control and Prevention.

The grim milestone represents an alarming setback for the country’s public health and heightens concerns that if childhood vaccination rates do not improve, deadly outbreaks of measles — once considered a disease of the past — will become the new normal.

But as Polimath notes, U.S. vaccination rates remain above 90% nationally. The problem isn’t broad domestic anti-vax sentiment but rather concentrated gaps in coverage, often within insular religious communities. These local shortfalls do explain how outbreaks spread once they begin—but how do they begin in the first place, given these communities are islands within a largely vaccinated country? Polimath says blame Canada! (and Mexico!)

The greater concern in my mind is not the problem of low measles vaccination coverage in the United States, but among our immediate neighbors. In Ontario, the MMR vaccination rate among 7-year-olds is under 70%. As in the examples above, this rate seems to be particularly low “in specific communities”, whatever that is supposed to mean. This has resulted in the ongoing spread of measles such that Ontario’s measles infection rate is 40 times higher than the United States. Canada officially “eliminated” measles in 1998. But with vaccine rates as low as they are, it seems like Canada is at risk for losing that “elimination” status and becoming an international source for measles.

Similarly, Mexico is having a measles outbreak that is substantially worse than the US outbreak. Importantly, the Mexican outbreak has been the worst in the Chihuahua province (over 3,000 cases), which borders Texas and New Mexico.

I’m less interested in blame than in the useful reminder that not all politics is American politics. Vaccination rates have dipped worldwide and not in response to U.S. politics or RFK Jr....

....MORE 

He's right about the Polimath post. We highlighted and bolded the hyperlink.

"France to quicken defense-spending boost in bid to be ‘feared’"

Umlauts. Fräncë needs umlauts if they truly intend to inspire dread wherever they turn their Gallic gaze.*

From DefenseNews, Bastille Day, 2025:

https://www.defensenews.com/resizer/v2/G45RJDXVIRGTHAU4CPIN2UXD2M.jpg?auth=eafd835eed2933c7e4a627e2544dd9ad2edc8793b88276c2c87c28511949ff08&width=1024&height=682 

French military vehicles stand in formation for the annual Bastille Day military parade on the 
Champs-Elysees Avenue with the Arc de Triomphe in the background in Paris on July 14, 2025. 

France will accelerate a hike in defense spending to reach €64 billion (US$75 billion) in 2027, three years earlier than planned, President Emmanuel Macron told troops and military brass ahead of Bastille Day celebrations on July 14.

In the face of the greatest threat to freedom since 1945, France needs to step up, the president said in his traditional speech at the Armed Forces Ministry in Paris the evening before the national holiday. Macron said Europe must be ready to face a permanent Russian threat on its borders, from the Caucasus to the Arctic....


...MUCH MORE
*
From January 2014's "After Car Attacked By Paris Taxi Drivers, Uber to Toughen Image With Umlauts ": 

In a move designed to make Uber seem more "bad-assed and scary in a quasi-heavy-metal manner," the Goldman Sachs, Menlo Ventures and Bezos Expeditions-backed company officially changed it's name to Über on  Monday.
"Much like Mötley Crüe and Motörhead, Über is not to be messed with," said founder Gärrëtt Cämp, né Camp...

"Ödërïnt, düm mëtüänt" (Let them hate so long as they fear) 

"A.I. Drives Job Cuts Across Silicon Valley Giants: By the Numbers"

The canary in the coal mine. 

From Observer, July 8:

Executives say A.I. isn’t just doing the work—it’s reshaping who gets hired, retained or replaced. 

Tech layoffs are nothing new in Silicon Valley, a region long shaped by boom-and-bust hiring cycles, speculative investment and shifting economic conditions. But in recent months, executives have offered a different explanation for job cuts: the rapid rise of A.I. So far in 2025, nearly 400 tech companies have announced layoffs, affecting close to 94,000 employees, according to TrueUp’s tech layoff tracker. Many of these roles are expected to be replaced—directly or indirectly—by A.I.-driven efficiencies.

Salesforce, for example, cut 1,000 roles earlier this year, redirecting hiring toward sales roles focused on A.I.-powered products. CEO Marc Benioff said last month that A.I. currently handles 30 to 50 percent of the company’s work, reducing the need for roles in fields like software engineering and customer support. Despite the job cuts, Salesforce remains financially strong, reporting $9.8 billion in revenue for the February-April quarter, an 8 percent year-over-year increase.

Microsoft, the world’s second largest company by market capitalization, has also made significant cuts in 2025. The company laid off around 9,000 employees in July, following a separate round of more than 6,000 in May. Software engineers have borne the brunt of these reductions.

Though Microsoft has not explicitly linked the layoffs to A.I., the technology’s growing role inside the company is undeniable. In April, CEO Satya Nadella disclosed that A.I. now writes about 30 percent of Microsoft’s code—a figure he expects to climb.

Microsoft isn’t alone in its internal shift toward A.I. At Google, well over 30 percent of new code includes A.I. generated suggestions, CEO Sundar Pichai revealed earlier this year. At Meta, Mark Zuckerberg has described developing an A.I. agent with coding abilities comparable to a mid-level engineer as one of the company’s top goals for 2025....

....MUCH MORE 

In the short run the changes aren't really noticeable. 

And in the medium term, there will be attempts to revive the canary and return to the previous equilibrium: 

This device was used to resuscitate canaries in coal mines
https://museumcrush.org/wp-content/uploads/2018/04/cd0194_009-051216-2002_19_254_1-Canary-reviver-2.jpeg
....MUCH MORE at Manchester's Science + Industry Museum via MuseumCrush.

In the longer term, say five to ten years, we are going to experience a social problem that may be intractable and probably increasingly violent: an educated and sometimes intelligent population that is unemployable.

Sunday, July 13, 2025

"Nvidia and Foxconn Aim to Use Humanoid Robots in AI Server Factory"

In the words of Warren Buffett, "we eat our own cooking.

From PYMNTS.com, June 20:

Humanoid robots could reportedly begin helping assemble Nvidia artificial intelligence servers at a factory in Houston by the first quarter of 2026.

That is the goal of Nvidia and Foxconn, Reuters reported Friday (June 20), citing unnamed sources. The companies are expected to finalize the deployment within months.

It is not clear what type of humanoid robots would be used, how many would be put to work in the factory or what they would be doing, according to the release. Foxconn has been training them to move objects and do assembly work, it added.

The project would mark the first time Nvidia products were made with the participation of humanoid robots, and the first time Foxconn used such robots on one of its artificial intelligence (AI) server production lines, according to the report.

Nvidia already supplies a platform that helps manufacturers build humanoid robots, and the company’s CEO, Jensen Huang, said in March that he expects such robots to be widely used in manufacturing facilities within five years, per the report.

It was reported in December that Nvidia was turning to robotics amid rising competition in the AI chip space and was jockeying to become the top platform in an anticipated robotics boom.

“The ChatGPT moment for physical AI and robotics is around the corner,” Deepu Talla, Nvidia’s vice president of robotics, said at the time.

Humanoid robots, with their human-like form and potential for complex movements, could revolutionize the manufacturing, warehousing and customer service sectors, PYMNTS reported in July. They may be able to perform tasks that are challenging for traditional robots, such as navigating cluttered environments or manipulating objects with human-like dexterity.

Huang said in July: “The next wave of AI is robotics, and one of the most exciting developments is humanoid robots. We’re advancing the entire Nvidia robotics stack, opening access for worldwide humanoid developers and companies to use the platforms, acceleration libraries and AI models best suited for their needs.”....

....MORE 

Best Wishes To Our Friends In France

La fête nationale du 14 juillet

Sweet Little Girl With Flag On Bastille Day

 

The Attempted Murder Of Donald Trump At Butler, Pennsylvania, July 13, 2024

The shooter, Thomas Crooks, was able to get off eight rounds before he was stopped, coming very close to accomplishing his goal. 
India's NDTV published this graphic five days after the attempt:
 
https://c.ndtvimg.com/2024-07/7d259rs8_trump_625x300_18_July_24.jpeg?downsize=773:435 


credit: Daily Mail

Another visualization: 

https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1q9LBY.img?w=800&h=435&q=60&m=2&f=jpg

(Picture: Point Consciousness)

"Bayeux Tapestry to return to UK for first time in almost 1,000 years"

From The Art Newspaper, July 8:

The tapestry will be displayed at the British Museum from September 2026, as part of a bilateral season of culture between the UK and France 

The Bayeux Tapestry will go on show at the British Museum in London next year after UK Prime Minister Keir Starmer and President Emmanuel Macron of France agreed the historic loan. The display will mark the first time the precious tapestry, which depicts the 1066 Norman invasion and Battle of Hastings, has been in Britain in almost 1,000 years.

The tapestry will go on show in the Sainsbury Exhibitions Gallery of the British Museum between September 2026 and July 2027. In return, Sutton Hoo treasures and the Lewis chessmen, some of the British Museum’s most important objects, will be loaned to institutions in France.

The cultural partnership and exchange were announced today by Starmer and Macron, who is currently on a State visit to the UK, a move widely seen as re-setting UK-French relations following the tumultuous Brexit years. The loan will form part of a bilateral season of culture in 2027.

In a statement Nicholas Cullinan, the director of the British Museum, stressed how the new France-UK partnership reflects his strategy of working with other museums globally, based on lending or exchanging items. “This is exactly the kind of international partnership that I want us to champion and take part in: sharing the best of our collection as widely as possible and in return displaying global treasures never seen here before,” he said.

Cullinan adds: “The Bayeux Tapestry is one of the most important and unique cultural artefacts in the world, which illustrates the deep ties between Britain and France and has fascinated people across geographies and generations. It is hard to overstate the significance of this extraordinary opportunity of displaying it at the British Museum.”....

....MUCH MORE

re: those deep ties, they came to mind in a 2022 post:

 "French Groups Swoop For Depressed British Assets"
Apparently 1066 wasn't big enough in the cross-channel asset-grabbing biz..

In 2024 I explained part of my fascination with the tapestry 

"Israeli hacktivist group brags it took down Iran's internet"

There's a lot of stuff going on in the world, isn't there? And sometimes it seems events are choreographed for our titillation and amusement. 

Of course that comment could reflect either a semi-deep insight or a final psychotic break with reality on the part of yours truly.

This weekend we'll be pulling at different threads in the tapestry to see if we can reduce the seeming complexity of the embroidery to the underlying foundation mesh.

And what, possibly curious reader may wonder, led to this feeble excuse of an introduction?

I was contemplating whether I was going to be around to see the return of Halley's Comet which led to a 2021 post on the French-English Brexit fishing deal which used a panel of the Bayeux Tapestry as a graphic:

"France warns of 'reprisals' over Brexit fishing deal"
Huh. My first thought was to check the Bayeux Tapestry Museum to see if there are any analogs.
And, as a first pass guess, it looks like a no. Halley's comet isn't due until 2061 so the current reprisals probably won't be a re-enactment of 1066.*

***
*On the tapestry the comet flies across the top as the people watch and point:
(segment 32 on the digitized panorama)

https://upload.wikimedia.org/wikipedia/commons/7/7f/BayeuxTapestryScene32.jpg 

ZuckAI: "Meta Superintelligence – Leadership Compute, Talent, and Data" (META)

Driving home the point made in March 2024's "In Nvidia's World, If You (and your company) Don't Have Money You Will Not Be Able To Compete (NVDA)". 

From SemiAnalysis, July 11:

Meta’s shocking purchase of 49% of Scale AI at a ~$30B valuation shows that money is of no concern for the $100B annual cashflow ad machine. Despite seemingly unlimited resources, Meta has been falling behind foundation labs in model performance.

The real wake-up call came when Meta lost its lead in open-weight models to DeepSeek. That stirred the sleeping giant. Now in full Founder Mode, Mark Zuckerberg is personally leading Meta’s charge, identifying Meta’s two core shortcomings: Talent and Compute. As one of the last founders still running a tech behemoth, Mark doesn’t need SemiAnalysis to tell him to slow down stock buybacks to fund the future!

https://i0.wp.com/semianalysis.com/wp-content/uploads/2025/07/meta-capex-buyback-1.png?w=1445&ssl=1 

Source: Meta financials and SemiAnalysis estimates

In addition to throwing money at the problem, he’s fundamentally rethinking Meta’s approach to GenAI. He’s starting a new “Superintelligence” team from scratch and personally poaching top AI talent with pay that makes top athlete pay look like chump change. The typical offer for the folks being poached for this team is $200 million over 4 years. That is 100x that of their peers. Furthermore, there have been some billion dollar offers that were not accepted by researcher/engineering leadership at OpenAI. While these offers aren’t all successful, Zuck is crushing the competitors by drastically increasing their cost per employee.

Perhaps even more iconic, Zuck threw his entire Datacenter playbook into the trash and is now building multi-billion-dollar GPU clusters in “Tents”!

https://i0.wp.com/semianalysis.com/wp-content/uploads/2025/07/Meta-Tent-DC.png?resize=2048%2C1034&ssl=1 

 Source: SemiAnalysis Datacenter Model – as of 07/06/2025

As this report details, nothing is off the table. We unpack Meta’s unprecedented reinvention from Compute to Talent in the pursuit of Superintelligence as well as the story of how we got here. From Llama 3.0 open-sourced dominance to the epic fail of Llama 4 Behemoth, this Titan of AI is down but not out. In fact, we believe Meta’s ramp in training FLOPS will rival even that of OAI. The company is going from GPU-poor to GPU-filthy-rich on a per researcher basis....

https://i0.wp.com/semianalysis.com/wp-content/uploads/2025/07/ed28b1d1-8330-4f05-a834-57140ebe55c6.png?w=1024&ssl=1 

....MUCH MORE

Most recently on Zuckerberg, June 30 - "Meta shares hit all-time high as Mark Zuckerberg goes on AI hiring blitz" (META).

And more generally, I realize I risk embodying the definition of a fanatic lifted by Churchill:  

"A fanatic is one who can’t change his mind and won’t change the subject."

but the concept is crucial to understanding and investing in the current reality.

If interested our latest iteration was July 8's "The 'new normal' of growth stock dominance":

What our five years of blather regarding advantage flywheels is all about.* 

"Vietnam plans new penalties for illegal transshipments after Trump deal, documents show"

Following on July 9's Flashpoint: "China Warns US, SE Asia: We’ll Hit Back on Supply Chain Deals".

From Reuters, July 10:

  • Chinese imports have been subject to more scrutiny, document says
  • New measures to target trade fraud such as false obtainment of certification of origin documents
  • US cut Vietnam tariffs to 20% but transshipped goods to have 40% levy

Vietnam is preparing stricter penalties to crack down on trade fraud and the illegal transshipment of goods, and has focused its inspections on Chinese products as it tries to comply with commitments made to Washington, documents seen by Reuters show.
Last week, the Communist-ruled country struck a preliminary deal with U.S. President Donald Trump's administration that cuts planned U.S. tariffs on imports from Vietnam to 20% from the 46% level threatened in April.
But goods that Washington deems to be illegally transshipped through Vietnam will be subject to a 40% levy.

The new measures, which expand a crackdown in recent weeks on trade fraud and imported counterfeits, will be key to keeping on Trump's good side.
U.S. officials have repeatedly accused Vietnam of being used as a waypoint for Chinese goods destined for the United States. They allege some goods have "Made in Vietnam" labels despite having received no or little added value in the country - allowing Chinese exporters to take advantage of Vietnam's lower tariffs and avoid high U.S. duties on goods from China.

The Vietnamese government will issue a new decree that will "prescribe additional levels of sanctions for fraud of origin," and introduce stricter measures and checks to prevent fraud, according to a July 3 trade ministry document.
July 3 was the same day that Trump and Vietnam's top leader To Lam reached their agreement, making the Southeast Asian nation the only other country after Britain so far to reach a preliminary deal on tariffs.

Vietnamese authorities have been told to intensify inspections on exports to the United States, according to the document which said inspections have focused recently on products "at risk of trade fraud... or Chinese items that are subject to trade defence measures by the European Union and the United States".

The document cited wooden furniture, plywood, steel machine parts, bicycles, batteries, wireless headphones and other electronic products as examples.
It listed examples of fraud such as the use of fake papers to obtain certification of origin documents, forged certificates of origin of goods and the import of counterfeit products into Vietnam.
It added that trade fraud had increased in recent times and was focused on avoiding tariffs and trade defence measures.
Vietnam's trade ministry and the Office of the U.S. Trade Representative did not reply to Reuters requests for comment.

MUCH UNCLEAR
There remains much to be worked out in the U.S.-Vietnam tariff deal.
It is not yet clear how Washington will define an illegal transshipment and how much value Vietnam must add to imported products to avoid the 40% tariff.

Sources have said that the U.S. is pushing Vietnam to reduce its reliance on imported components from China, especially for electronic devices.
It is also not clear when the deal is likely to be finalised.

Vietnam's government decree will introduce stricter procedures to monitor companies that self-certify the origin of the products they trade, increase scrutiny of traded goods with more on-site inspections and increase scrutiny of the issue of certificates of origin, according to an undated draft seen by Reuters.

The draft decree does not currently list penalties, which are expected to be added in revisions or in other legal texts, said a person familiar with the process. The person was not authorised to speak on the matter and declined to be identified.

Vietnam has nearly tripled its exports to the United States since the start of the U.S.-China trade war in 2018, when the first Trump administration imposed wide-ranging tariffs on Beijing, pushing some manufacturers to move production south.

But as exports to the U.S. boomed, Vietnam vastly expanded imports from China, with their inflow almost exactly matching the value and swings of exports to the United States over the years, each totalling around $140 billion in 2024, data from the U.S. and Vietnam show.....

 
https://www.reuters.com/graphics/USA-CHINA/zdvxxynbxvx/chart.png 
 
....MUCH MORE 

Saturday, July 12, 2025

"Matthew Pietras worked for the Soros family, donated millions to museums, and produced a fistful of Broadway shows. So why did it all feel make-believe?"

From Airmail, July 12:

Was My Friend a Fraud?
To those of us who knew him, Matthew Christopher Pietras seemed larger than life, and well on his way to a place atop the pillars of New York society.
He was an aide-de-camp to Courtney Ross, the multi-millionaire widow of the legendary Time Warner C.E.O., Steve Ross. He played a similar role with the family of George Soros, the billionaire investor, and he also claimed a connection to the Qatari royal family.
He was listed as a producer of the Broadway shows Cabaret and Buena Vista Social Club, among many others. His name was etched on the wall of the recently reopened Frick Collection, and following a multi-million-dollar pledge to the Metropolitan Opera, he was in discussions to have a speakeasy bar named after him in the august institution’s basement.
But, following his sudden death, on May 30 at the shockingly young age of 40, rumors began to fly of lies, theft, and fraud.
I considered Matthew one of my closest friends for more than a dozen years. However, since his death, I realize I had shrugged off inconsistencies in his stories since the very first day we met. Talking to mutual friends in recent days has raised many more questions about the validity of his personal relationships with all of us. Were we really his friends? Or were we just adornments to him, brought out to shine at his parties like the brooches he loved to wear?
So this is my story, about my involvement with a man who acted like he ruled the world, but whose dazzling lifestyle and absurd generosity couldn’t bear too much scrutiny.

A Little Bit Extra

I first met Matthew when we were both working as non-union background actors—the lowest of the lows on set—on Law & Order: Special Victims Unit in April 2012. I was playing an upscale party-goer, and he played a cater-waiter. He dropped his tray during the shoot because—as he explained—unlike most young actors, he’d never actually worked in a restaurant.
It was a surprise to find myself engaging with such a personable young man. I was 44, he was 27, so we were an improbable pair. But we chatted all day after he squeezed in next to me. He had an M.B.A. from New York University and spoke easily about his time working as an intern for the United Nations in Afghanistan. He casually mentioned that he lived on Fifth Avenue, at the Pierre. When I asked how that was possible, he said the apartment belonged to his well-to-do grandparents, who’d taken him in when his parents threw him out for being gay. I assumed he was just another trust-fund kid killing time on a TV set.
However, Matthew was tiring of life as a background actor on shows such as Law & Order and Gossip Girl. He had started writing screenplays, and my husband—who was then Time Inc.’s chief content officer—and I often invited him to join us at screenings and parties. He was a great conversationalist who mixed well as he networked through our social circles. In particular, he paid close attention to accomplished “women of a certain age,” who helped form an infrastructure of credibility around their young friend.
His way with middle-aged women extended to a friend’s wife, who thought he would make a good mentor for her teenage son. Matthew was willing, but instead of being a role model for the young man, he became his lover. I was appalled when I learned of the affair months later. Even if the kid was above the age of consent, he was still in high school. However, when Matthew asked me not to interfere, I reluctantly bit my tongue. To my surprise, the relationship continued, on and off, for several years.
Matthew was a generous partner. Once, during a lunch, he announced he was taking his boyfriend to the Diamond District to buy a watch, and he invited me to tag along. He was chasing a hard-to-source Patek Philippe, and we all crowded into a cluttered watch shop. Matthew’s young friend tried on several watches, they settled on a handsome timepiece costing about $40,000, and the deal was made. Both Matthew and his friend were flushed with excitement over the acquisition.
In 2015, ahead of my 10th wedding anniversary, I sought his mailing address to send him an invitation to the party. Instead of the Pierre, he gave me a P.O.-box address almost two miles to the north. Such discrepancies didn’t bother me as I enjoyed his company, and the stakes were very low. I wrote to a mutual friend at the time that Matthew’s “capacity to perform and to lead a life that’s a mix of fact and fantasy is probably very useful to a would-be actor.” However, when he decided to leave acting and took the job working for Courtney Ross, I was thrilled.
The Soros Connection
I moved to Los Angeles in early 2018 after my husband joined the Los Angeles Times as its executive editor. While there, Matthew was a frequent visitor who joined us for dinners at hot spots like the Tower Bar and Pasjoli. He was traveling with Ross at the time, organizing her affairs and involving himself in the sale of her blue-chip art collection. Matthew said she called him “the son she never had.” He was also dating a handsome, and age-appropriate, piano tuner he had met at the Metropolitan Opera.
However, Matthew chafed at working for Ross—he said he found her needy and had grown tired of mediating her problems with her daughter—and I was delighted when he said that he had scored a significant upgrade: working for the Soros family. I thought he’d finally figured out how to live the life he’d once pretended to have. (Courtney Ross did not respond to air mail’s request for comment.)
Matthew was vague about what his job entailed. He said he “ran” George Soros and his sons Alex and Gregory, traveling with them when they went abroad to evaluate investments in Luxembourg and Ireland, and arranging the complicated logistics behind Soros family gatherings.
In particular, he seems to have worked closely with Gregory Soros, the youngest son, a recluse who is rarely seen in public. Matthew could be found attending zoning meetings on Shelter Island, where Greg is one of the biggest landowners, and I once overheard him spend literally hours on the phone dealing with Greg’s personal-chef situation—Greg didn’t want to have a chef on retainer but wanted one ready at a moment’s notice no matter where he was—which took on an earth-shattering importance. As much as I thought the assignment was absurd, I was struck by Matthew’s competence in addressing it. He was very good at making himself indispensable.....
....MUCH MORE 

"The Secret History of China’s Most Powerful Company"

From Real Clear Defense, July 3:

How did a small Shenzhen-based manufacturer of telephone switches defy tough domestic and international competition to become a world leader in telecoms technology? And how did it manage to start producing its own 5G processors despite international sanctions specifically designed to prevent this from happening? 

Telecoms equipment makers are notoriously publicity-shy. They guard their trade secrets jealously and manage their public images carefully. But even by the sector’s exacting standards, Huawei, currently the world’s largest manufacturer of telecommunications equipment, is exceptionally secretive. Its founder, Ren Zhengfei, studiously avoids the limelight, and media visits to the company’s huge campus in Dongguan in southern China are carefully curated and give away little.

In House of Huawei, Eva Dou lifts the veil of secrecy surrounding the tight-lipped company. Dou is a technology reporter for The Washington Post and spent seven years in China and Taiwan covering politics and technology for The Wall Street Journal. Tapping into her wide network of contacts in the sector, she has put together a thoroughly researched, credible and balanced account.

Dou anchors her narrative in China’s recent economic history. Ren established Huawei in 1987 in the Shenzhen special economic zone to manufacture telephone switches for China’s burgeoning economy. Before establishing the company, he worked for the engineering corps of the armed forces. According to Dou, Ren’s military work had little connection with his later work at Huawei but deeply influenced his management style.

Dou highlights two turning points. The shift from analogue to digital technology in the early 1990s allowed Huawei to expand production and begin supplying China’s state-owned enterprises. At that point, Ren made sure that his company was on the radar screen of the country’s top leaders. The second turning point came a decade later, when Huawei went global.

As Huawei expanded, so did its symbiotic relationship with China’s party-state. The government helped to ensure the company’s success, while Huawei supported the expansion of state surveillance. Soon after Xi Jinping came to power in 2012, he initiated the Sharp Eyes urban surveillance program and blanketed China with security cameras. In response, Huawei developed its Safe City facial recognition technology, which is now used throughout China and has been bought by countries in Asia, Africa and even Europe.

China’s national intelligence law requires organisations and individuals to ‘support, assist and cooperate with state intelligence work’, a clause that is frequently cited to justify sanctions placed on Huawei. Ren vehemently denies that Huawei has provided or would provide the Chinese state with access to its data networks. Dou is unconvinced but reminds us that China is hardly the only state that demands access to confidential telecommunications data.

Dou makes a valiant effort to dissect Huawei’s opaque organisational structure. Legally, Huawei is a limited liability company, with Ren holding about 1 percent of the shares, and the employees, represented by a trade union, holding the balance. On paper, Huawei’s highest authority is the shareholders’ meeting, to which the board of directors and the chief executive report. However, Dou concludes that the formal structure has little significance, with key decisions made by a group of top executives and Ren.

Huawei’s basic law stresses that Huawei is not a Western-style company focused on maximising shareholder value. Rather, Huawei’s purpose is ‘to become a leading world-class enterprise’ in its field. Ultimately, Dou likens Huawei to the Chinese Communist Party, whose purpose is to ensure its own long-term survival....

....MUCH MORE 

What Huawei has accomplished is astounding and borderline terrifying. 

During the mid-to-late twenty-teens the world began to notice that the company was a serious business competitor and an extension of China's Communist Party and government.

In an attempt to assuage these concerns one of their Western honchos said:

‘At Huawei, we’re not attaching laser beams to the heads of sharks’
—Alykhan Velshi, Vice President, Corporate Affairs, Huawei Technologies Canada, Markham, Ont.
Letter to the Editor, Maclean's Magazine, published July 23, 2019

That was in one of our posts on China's security laws which require Chinese (and foreign-domiciled!!) companies to work with the authorities when asked. I'm not sure the statement did much assuaging.

Some of our previous posts on the Chinese colossus:
While some people are bleating and tweeting into the ether about their political feelings, others are creating the technical container that will define, delineate, create, and constrict the future Them's the ones to watch out for.
Baaaa
At the moment I don't think ASML has to worry but U.S. policymakers should be dusting off their contingency plans. They have contingency plans, right? I think they're in the same drawer as the CDC's pandemic response folder....

And many, many more. Quite an amazing story. 

Infrastructure: "Where Will Brookfield Asset Management Be in 10 Years?" (BAM)

This was Mr. Carney's perch before he became Canada's Prime Minister.
(he also ran a couple central banks) 
From The Motley Fool, July 12: 
  • Brookfield Asset Management is a top-tier alternative asset management company.
  • The alternative asset management industry is projected to grow rapidly.
  • Brookfield has a lot of opportunities to deploy capital and attract new assets. 

Brookfield Asset Management (BAM -0.80%) is a leading alternative asset manager with about $550 billion in fee-bearing capital under management. This might sound like a lot (and it is), but it's a small percentage of the alternative asset management industry.

Brookfield focuses on investment opportunities in real estate, renewable power, infrastructure, private equity, and more. With investor interest in alternative investments surging, what does the future hold for Brookfield Asset Management?

Brookfield Asset Management's massive opportunity 
The alternative asset management industry itself has grown tremendously over the past couple of decades. To say there is growing investor demand for things like private equity investing, private real estate deals, infrastructure investments, and other nonstock market assets would be an understatement. In fact, since the early 2000s, the amount of alternative assets under management globally has grown by 10X. 
 
Brookfield estimates that there is a total of about $150 trillion in global assets under management (all types), and that $25 trillion of it is alternative assets. However, by 2032, this is expected to more than double to $60 trillion, so this translates to roughly $35 trillion in growth opportunities over the next seven years alone....
....MUCH MORE 
 
One of our "set it and forget it" energy favorites, uranium miner Cameco also owns a 49% stake in nuke plant maker Westinghouse. Brookfield owns the other 51%.
Some previous variations on the theme:

Infrastructure: Blackstone Is Buying An Electric Utility (BX; TXNM)
This is something we will see more of, private equity in regulated utilities. It's hard to asset-strip the darn things due to said regulators but boy-oh-boy do they cash flow. Just ask Warren Buffet....
 
"9 Takeaways from the JP Morgan Chase Energy Study You Won't Want to Miss"
Or maybe you will want to miss it, your call....
 
And with a lot of links to what we called the infrastructure series (and a couple pretty pictures): 
"Money Managers Rush to Invest in The World’s ‘Essential Plumbing’"
A topic near and dear....

"Original Birkin bag shatters record with £7m sale"

From the BBC, July 10:

The original Birkin bag, which set the template for arguably the most coveted accessory in fashion history, has been bought for €8.6m (£7.4m; $10.1m), becoming the most valuable handbag ever sold at auction.

The black leather bag was made for singer Jane Birkin in 1985 after she spilled her belongings while sitting next to the boss of luxury fashion house Hermès on a flight.

She asked why they didn't make bigger bags, so he sketched out the design for a new, more practical but still highly desirable item on the aeroplane's sick bag.

The prototype he made was sold to a private collector from Japan at Sotheby's in Paris on Thursday, far surpassing the €439,000 (£378,000; $513,000) previous record sale.

The auction house said there was an "electrifying" 10-minute bidding war between "nine determined collectors".

Morgane Halimi, Sotheby's global head of handbags and fashion, said the price was a "startling demonstration of the power of a legend and its capacity to ignite the passion and desire of collectors seeking exceptional items with unique provenance, to own its origin".

She added: "The Birkin prototype is exactly that, the starting point of an extraordinary story that has given us a modern icon, the Birkin bag, the most coveted handbag in the world."

The €8,582,500 total includes commission and fees. Sotheby's did not publish a pre-auction estimate....

....MUCH MORE 

The various branches of the clan have made a lot of money from the bag.

"Luxury Heir Alleges His $13 Billion Hermès Fortune Has Vanished"
Have they checked the couch cushions? People say they sometimes find things behind the couch cushions....

***

....Well this story has it all doesn't it. Except for the thirteen large, of course.

We happened to catch the gardener story in December: "Hermès heir wants to leave his fortune to his gardener"

And a quick mention as part of the one-line outro from June's "LVMH, The Arnault Family And An Olympics Like None Other" wherein Gentlemen's Quarterly referred to the Arnault family as "the world's richest family":

A quick note, despite being too lazy to look it up I'm pretty sure the Walton clan is ahead of the Arnault fam. on the net worth leader board. The branches of the Hermès tribe, the Dumas, Guerrand and Puech families are up there as well.

"Russia's War Economy Is Heading To Recession. It Probably Won't Slow Down The War"

Following on July 11's "There's a Potato Shortage In Russia".

From Radio Free Europe/Radio Liberty, July 1: 

At Russia’s annual marquee event for business investment, a Kremlin-funded bubbly celebration of promise and opportunity, the country’s top economic minister poured cold war on the party.

“According to the numbers, yes, we’ve got a cooling down now,” Maksim Reshetnikov said at the St. Petersburg International Economic Forum. “Based on current business sentiment, it seems to me we are on the brink of transitioning into recession.”

If that wasn’t enough of a damper, the head of the Russian Central Bank seconded the downbeat sentiment.

“We have been growing for two years at a fairly high rate due to the fact that free labor resources were used,” Elvira Nabiullina said during the same panel discussion on June 19. “But we need to understand that many of these resources have really been exhausted. We need to think about a new model for growth.”

And there was also this from German Gref, the head of the state-owned banking giant Sberbank, on the sidelines of the forum: “We are colliding with a large number of problems, which today we can call a perfect storm.”

For more than 40 months now, since the start of the all-out invasion of Ukraine, Russia’s economy has been on a war footing, growing at a robust -- at times torrid -- rate, and showing resilience -- unexpected to many Western experts -- in the face of punishing sanctions.

The Kremlin has retooled the economy to power its war, pouring money into defense industries to churn out guns, tanks, drones, and uniforms. It’s poured money into wages for defense industry workers and paid soldiers sky-high salaries and benefits to entice them to fight in Ukraine.

That’s transformed local economies in many of the country’s poorer, remote regions, and also bought support for the conflict.

But high wages have fueled inflation, and Nabiullina hiked the key interest rate to 21 percent in October to try and tamp it down. Despite public complaints from the country’s industrial lobby, she has held firm, committed to slowing inflation and downshifting the economy.

It’s working, and now Russia is facing the first significant economic slowdown since the start of the full-scale war.

“I think a lot of indicators point to growth stopping, or close to it,” said Iikka Korhonen, head of research at the Bank of Finland’s Institute for Emerging Economies. “Manufacturing is still growing, but most other things are not.”

“For two years [the] Russian economy was overheated and growing at a pace way above its normal growth rate,” said Alexander Kolyandr, an economics expert with the Center for European Policy Analysis in Washington. “So what’s happening now is the economy returns to where it should be. For the moment it stands as a correction, coming back to the long-term growth rate.”

“The main challenge for the government at this point is to make this a soft landing, rather than a complete collapse,” he said.

What Comes Next?
Russia’s gross domestic product grew by 1.4 percent in the first three months of the year, compared with the same period in 2024, according to government statistics. In the last six months of 2024, however, the economy was humming along -- with average growth of around 4.4 percent.

Official estimates now forecast GDP growth at around 2 percent in 2025. The International Monetary Fund predicts even lower growth -- 1.5 percent.

The unemployment rate stands at a historic low of around 2.3 percent, underscoring how distorted the labor market has become as men are drawn away from civilian jobs to fight in Ukraine.

Faced with inflation running at over 10 percent in the first half of 2025, Nabiullina has warned repeatedly about an “overheated economy.” In early June, she engineered a small rate cut, to 20 percent, which experts called largely symbolic.

But the impact of the high interest rate is showing up in official statistics, according to data and forecasts from the Center for Macroeconomic Analysis and Short-Term Forecasting, a government-linked research group.

For some in the Kremlin, a soft landing would be a welcome correction to the two torrid previous years. The danger is if it becomes a hard landing.

“By keeping the key rate very high, despite the state continuously pumping money into the economy, they have been able to achieve economic slowdown,” said Maria Snegovaya, a senior fellow in the Russia program at the Washington-based Center for Strategic and International Studies....

....MUCH MORE 

 Also at RFE/RL:

November 21, 2024 - In Russia's War Economy, The Warning Lights Are Blinking 

Friday, July 11, 2025

"Beyond Moore’s Law: We Need To Rethink Materials For The New Computing Era"

Thus sayeth a PhD materials scientist and entrpreneur via EE Times, July 11:

For decades, materials were background players in semiconductor design. Now they are at the center stage. 

Earlier this summer, Meta penciled a 20-year deal to extend the life of an Illinois nuclear plant, which will provide 1.1 GW to power the company’s operations in the region.

The deal is a lifeline for nuclear operators. Still, more importantly, it’s a watershed for energy-hungry tech firms as a deployed example of how big tech can underwrite the viability of nuclear energy.

Elsewhere, xAI has been widely criticized for ignoring environmental regulations while using unlicensed methane gas generators to power its Colossus supercomputer in Memphis, Tennessee.

The demand-side numbers don’t lie: Goldman Sachs Research forecasts that global power demand from data centers will increase by as much as 165% by the end of the decade, with AI expected to account for 19% of that by 2028.

Meta’s deal looks like a bold solution to AI’s energy appetite, but it’s just kicking the can further down the road. The real problem isn’t supply. It’s demand.

As AI workloads continue to grow exponentially, the only sustainable path forward is radical energy efficiency —a challenge the semiconductor industry is now being forced to confront head-on.

The answer isn’t just coming from traditional chip architectures, but from a fundamental reimagining of the materials that connect and insulate our computing systems.

For decades, the industry was guided, you might say insulated, by the predictability of Moore’s Law. Every two years, we could count on faster, cheaper, denser chips. But that promise has broken down, coinciding with a second tectonic shift: the AI explosion that’s driving compute and bandwidth demand at a pace that far outstrips what traditional architectures were built to handle.

Triple threat: energy, heat, and physics

We’re pouring more energy into systems to achieve increasingly smaller performance gains. That’s not a growth curve; it’s a red flag.

Every watt of compute power becomes a watt of thermal load, forcing the deployment of ever more elaborate cooling systems, such as liquid immersion, cold plates, and phase-change materials. In compact environments where fans are impractical, thermal design is already the limiting factor....

....MUCH MORE 

 Here is the author, Stefan Pastine, at everybodyWiki.

And at MIT's Technology Review: "This US startup makes a crucial chip material and is taking on a Japanese giant

"The executives behind Palmer Luckey's new digital banking startup Erebor include banking, politics, and Big Law vets"

From Business Insider, July 11:

  • Anduril cofounder Palmer Luckey is launching Erebor, a bank that will serve crypto clients and startups.
  • BI obtained a memo that describes leadership at the neobank.
  • The executives have ties to traditional banking, politics, and Big Law.

Palmer Luckey, CEO of defense tech giant Anduril Industries, is quietly building a new digital banking venture — and we now know more about who will be helping him.

The startup, Erebor, is raising $225 million at a $2 billion valuation, Business Insider reported in July. It has backing from Peter Thiel's Founders Fund and Joe Lonsdale's 8VC. It filed for a national bank charter in June, and will serve clients like crypto companies and startups — a niche once occupied by Silicon Valley Bank.

While little has been publicly revealed about Erebor so far, documents obtained by Business Insider shed some light on the team behind it.

Luckey and four cofounders — Trevor Capozza, Jacob Hirshman, Aaron Pelz and Owen Rapaport — are at the helm, according to a fundraising memo that described the company's leadership and plans. Hirshman and Rapaport are listed as co-CEOs of Erebor, per the memo.

Three other executives — chief risk officer Joshua Rosenberg, chief financial officer Ricky Grant, and chief credit officer Vlad Dubinsky — have backgrounds in banking and bank regulation, and their involvement with the company hasn't previously been reported.

A banking lawyer at Skadden who appears on Erebor's bank charter application and is listed as its spokesperson didn't respond to a request for comment.

Here's what we know about the names.

Founder: Palmer Luckey

Luckey is the founder of Erebor, according to the memo.

He previously cofounded Anduril, a defense tech company that makes AI-powered autonomous military systems, in 2017. Founders Fund led the latest Anduril round — a $2.5 billion fundraise at a $30.5 billion valuation — with a $1 billion investment, the largest check the firm has ever written, Tech Crunch reported in June.

Before Anduril, Luckey launched Oculus, a virtual reality company, when he was 19. He sold it to Facebook, now Meta Platforms, for $2 billion in cash and stock in 2014. In 2016, Luckey was fired from Meta after donating $10,000 to a pro-Donald Trump group.

Meta and CEO Mark Zuckerberg have denied that Luckey left over his politics. Anduril partnered with Meta in May to make headsets and wearable devices for the military.

Luckey didn't respond to requests for comment.

Co-Founder: Trevor Capozza

Capozza is listed as a cofounder of Erebor in the memo. His LinkedIn profile says he is a cofounder of a "stealth startup," a term used to describe a company before it has officially launched.

He serves as the head of operations of Luckey's family office, according to LinkedIn. Capozza began his career at Optimozo, a private company, where he did asset management, his LinkedIn profile shows.

His name has appeared in tax forms filed by a Luckey-linked nonprofit, the Pacific Treasure Foundation, as well as in registration paperwork for a virtual-reality news website, a firm called Trisolaris LLC, and another business called Project Passive LLC.

Capozza declined to comment.

President: Michael Hagedorn

Hadegorn is Erebor's president, his LinkedIn shows. According to his profile, the fintech startup "seeks to revolutionize banking services for the innovation economy."

Hadegorn has held executive positions at UMB Financial Corporation and Valley National Bank. He started his career at Wells Fargo, where he worked for nearly 17 years. At Wells Fargo, Hagedorn led the Midwest banking group for five years, his LinkedIn profile shows.

Hagedorn didn't respond to a request for comment.

Co-Founder/Co-CEO: Owen Rapaport

Rapaport is listed as a co-founder and co-CEO of Erebor focused on "product, credit, and customer success," the memo says.

Before joining Erebor, Rapaport cofounded and served as CEO at crypto-monitoring company Aer Compliance, which merged with StarCompliance in 2024.

Before that, he worked at Electrum, a bitcoin wallet company, and was a consultant at Bain & Company, according to his LinkedIn.

Rapaport didn't respond to a request for comment.

Co-Founder/Co-CEO: Jacob Hirshman

Hirshman is listed as a cofounder and co-CEO of Erebor and is focused on "sales, marketing, and regulatory" work, the memo says. Hirshman's LinkedIn profile lists him as a cofounder of a "stealth startup."

Hirshman works at stablecoin issuer Circle, which debuted on the New York Stock Exchange in early June, as an advisor, according to his LinkedIn. Before that, Hirshman spent almost a year as an associate at Sullivan & Cromwell after graduating from law school at the University of Pennsylvania, his LinkedIn profile says.

Hirshman declined to comment....

....MUCH MORE 

Not a very talkative bunch, kudos to BI for doing a bit of digging.  

U.S. Treasury posts unexpected surplus in June as tariff receipts surge

 From CNBC, July 11:

  • With government red ink swelling throughout the year, June saw a surplus of just over $27 billion, following a $316 billion deficit in May.
  • Customs duties totaled about $27 billion for the month, up from $23 billion in May and a 301% gain from June 2024.

The U.S. government posted a surplus in June as tariffs gave an extra bump to a sharp increase in receipts, the Treasury Department said Friday.

With government red ink swelling throughout the year, last month saw a surplus of just over $27 billion, following a $316 billion deficit in May.

That brought the fiscal year-to-date deficit to $1.34 trillion, up 5% from a year ago. However, with calendar adjustment, the deficit actually edged lower by 1%. There are three months left in the current fiscal year, which ends Sept. 30.

A 13% increase in receipts from the same month a year ago helped bridge the gap, with outlays down 7%. For the year, receipts are up 7% while spending has risen 6%.

The government last posted a June surplus in 2017, during President Donald Trump’s first term.

Increasing tariff collections are helping shore up the government finances.

Customs duties totaled about $27 billion for the month, up from $23 billion in May and 301% higher than June 2024. On an annual basis, tariff collections have totaled $113 billion, or 86% more than a year ago....

....MUCH MORE 

"Google, PJM unveil AI plan to transform electric grid"

From E&E News, July 10:

The deal aims to bring resources online faster and to speed up reviews for projects applying to come online. 

PJM, the nation’s largest grid operator, is planning to use artificial intelligence to overhaul how it runs its electricity system across 13 states, with major implications for renewables, fossil fuels and an interconnection backlog stalling projects.

In an announcement Thursday, Google said it is teaming up with PJM and Tapestry, an arm of Alphabet focused on grid innovation, to use new AI technologies to change the way the grid operator plans projects and brings them online. The idea is essentially to do for the electricity system what Google maps and searches did for the internet to speed up and simplify the interconnection process.

This will be “the first time that artificial intelligence is being used to manage the entire interconnection queue and process,” said Page Crahan, general manager of Tapestry, on a call with reporters about the project.

Today, developers are “largely using the same tools that we designed for last century’s grid. We know that we can do better than this,” added Crahan, who said her team has been working for seven years on developing the AI tools.

Tapestry, which plans to build on existing AI technologies such as Google DeepMind, said the plan would speed up reviews for projects applying to link to the grid. That could be significant for PJM, which has thousands of projects waiting to connect, particularly renewables, across its territory. PJM said it would eventually use the new technology for all interconnection requests.

The plan comes as the grid operator is trying to figure out how to address a looming electricity shortage because of retirements of coal and gas plants and a surge in demand from AI and data centers.

PJM expects it could lose about 40 gigawatts, or 21 percent of its capacity, by 2030, said Aftab Khan, PJM’s executive vice president.

New power resources are not coming online “at an adequate enough pace … to replace the risk of retiring resources,” Khan said.

Nationally, the grid backlog is more than double the size of the existing installed power fleet, according to Lawrence Berkeley National Laboratory.

It’s unclear how the plan might ultimately affect the electricity mix, but speeding up interconnection requests could bring more solar, wind and batteries on the grid, since those resources dominate the current backlog. In a press release, Google said the AI tools could “support the rapid and reliable integration of diverse energy sources onto the grid.”

Crahan said the AI technologies would consolidate what currently is a “laborious” PJM process. Under the existing system, officials have to review many documents and computer models to approve and connect one project. Crahan compared it to retail shopping before the internet, when everyone was faxing orders.

As an example, she said planners currently use separate software for everything from assessing how equipment connects to the grid to economic analyses of projects.

“Each of these software programs will generate a file, which creates its own unique model of the grid. Every time a change is made to that one model, it needs to be applied to all the other models,” Crahan said. Because everything is siloed, it is “extremely difficult” to keep track of details and move projects along quickly, she said.

With the new tools, grid planners would be able to assess projects in one place. An online demonstration resembled a mix of Google Maps and Microsoft Windows, where a user could drag and drop large amounts of information around one screen. The AI technologies also would eliminate many time-consuming steps to review and connect projects, such as verifying that land rights are associated with a given applicant....

....MUCH MORE 

 From February's ""Nation's Largest Grid To Fast-Track NatGas Power Plants To Fuel Next AI Trade" (GEV)":

https://cms.zerohedge.com/s3/files/inline-images/2025-02-12_07-47-29.png?itok=ShVkC79C 

And more recently: 

July 4 - Heat Wave: The Role Of Natural Gas In Meeting Peak Electricity Demand In The Nation's Largest Grid System

"Singapore owns 5% of Michigan’s Upper Peninsula. Its wealth fund bet on timber"

Depending on how things go with Canadian - U.S. trade talks that could be a better than average bet.

From BridgeMichigan, July 7:

  • The Government of Singapore Investment Corporation owns more than 540,000 acres of land in Michigan’s Upper Peninsula
  • The $800 billion sovereign wealth fund is the single largest owner of foreign agricultural land in Michigan
  • Its complex corporate structure shows how landholders can easily mask their ownership

The government of Singapore owns more than 5% of all land in Michigan’s Upper Peninsula, according to federal records obtained by Bridge Michigan, making it the largest known foreign owner of agricultural land in the state. 

The Government of Singapore Investment Corporation, a state-owned sovereign wealth fund known as GIC, is listed in federal disclosures as the sole owner of more than 540,000 acres of Upper Peninsula forestland, much of which has active timber harvesting operations. 

The ownership of the land, which includes a sixth of all land in Gogebic County, along the Wisconsin border, has not previously been reported. 

It would not have become public, either, if the Rohatyn Group, a global private equity firm that manages the land, had limited their disclosures to what’s called for under federal rules — “three tiers” of ownership.

“These guys went out of their way to explain what they were up to,” said Patrick Schena, an expert on sovereign wealth funds and professor at Tufts University. “Not everyone may be motivated in the same way.”

Bridge sought the records through a Freedom of Information Act request as the state Legislature began to scrutinize foreign land ownership. ...

....MUCH MORE, including some other information that may be profitable to know.  

ICYMI: "China’s Producer Deflation Worsens as Weak Demand Persists"

Not only that, China is exporting deflation to the rest of the world. 

From Bloomberg via MSN, July 9:

China’s producer prices fell the most in nearly two years, overshadowing a modest improvement in consumer prices and adding to the urgency to tackle deflationary pressures.

Factory deflation persisted into a 33rd month, with the producer price index falling 3.6% from a year earlier, the National Bureau of Statistics said Wednesday. The decline was the most since July 2023 and sharper than any economists had forecast.

The consumer price index unexpectedly increased 0.1% and ended a four-month falling streak, although it likely reflected the short-term effect of government subsidies rather than a lasting recovery in confidence.

https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1IeEIT.img?w=768&h=565&m=6

The still-weak inflation may keep pressure on policymakers to ramp up stimulus to escape a vicious cycle of falling prices, business profits and wages. Cutthroat competition between companies has also added to the deflationary pressures, as they engage in ruthless price wars that policymakers now seek to curb

The Shanghai Stock Exchange Composite Index rose as much as 0.4% to the highest level this year as investors speculated about more stimulus to ease deflation. It pared gains to trade 0.1% down at market close.

Global trade headwinds weighed on export-heavy sectors. Manufacturing prices for computer, communications and other electronic equipment accelerated a drop from the previous month. The uncertainties of US President Donald Trump’s tariff regime further cloud the outlook for companies reliant on the global markets as domestic demand remains weak.

Dong Lijuan, chief statistician at the NBS, said producer prices fell on a monthly basis in part because adverse weather conditions affected construction work and put pressure on the prices of raw materials.

 Factory-gate prices for the coal mining and washing industry fell 22% year-over-year, the worst drop since 2007. The NBS attributed that to the increased use of renewable energy sources, which reduced demand for coal....

....MUCH MORE