16 March 2021

1) The technology known as carbon capture and storage, a concept that has been around for at least a quarter century to reduce the climate damaging emissions from factories, is being pursued by major international oil companies. The idea sounds deceptively simple, just divert pollutants before they can escape into the air, and bury them deep in the ground where they are harmless. But the technology has proved to be hugely expensive, and so has not caught on as quickly as advocates hoped. Exxon Mobil, BP and Royal Dutch Shell plus lesser known Norway’s Equinor, France’s Total, and Italy’s Eni are investors in capture and storage projects.

2) Reports are, that amid all the trillion dollar spending, the White House is now starting to consider how to pay for the programs meant to bolster long term economic growth with investments in infrastructure, clean energy and education. The challenges are twofold: 1) how much of the bill is paid for with tax increases and 2) which policies to finance with more borrowing. The administration hasn’t decided whether to pursue a wealth tax. With interest rates so low, U.S. borrowing costs are manageable right now. The federal government currently collects the biggest chunk of its revenue, about half in 2019, from individual income taxes, which now tops out at 37% of income above $518,000 per year. For now, there are few signs of inflationary spiral or fiscal crisis that policy makers thought would accompany debt levels like today’s. The Congressional Budget Office this month projected that the national debt would double as a proportion of gross domestic product over the next 30 years. But the cost of borrowing is rising for the government and across the economy so the large debt could mean trouble in the future.

3) India’s foreign-exchange reserves has surpassed Russia’s to become the world’s fourth largest, as India central bank continues to hoard dollars to cushion the economy against any sudden outflows. Reserves for both countries have mostly flattened this year after months of rapid increase. India’s reserves, enough to cover roughly 18 months of imports, have been bolstered by a rare current-account surplus, raising inflows into the local stock market and foreign direct investment. India’s foreign currency holdings fell by $4.3 billion to $580.3 billion as of March 5, edging out Russia’s $580.1 billion pile. China has the largest reserves, followed by Japan and Switzerland on the International Monetary Fund table.

4) Stock market closings for – 15 MAR 21:

Dow 32,953.46 up by 174.82
Nasdaq 3,459.71 up by 139.84
S&P 500 3,968.94 up by 25.60

10 Year Yield: down at 1.61%

Oil: down at $65.29

11 September 2020

1) The new jobless numbers indicate the U.S. job losses persist with claims higher than was forecasts. Jobless claims were unchanged at 884,000 for last week, with the total number of people on unemployment rising by 93,000 to a total of 13.4 million people. Prior to the pandemic, new claims were about 212,000 a week with 1.7 million people on unemployment. What is concerning is the pace of layoffs has not slowed with the economy opening up, adding to fears of a second round of Convid-19 outbreaks. It appears that millions of Americans are heading for long term unemployment with most running out of unemployment benefits after 26 weeks.

2) Quantafuel AS, a Norwegian company established in 2014, who makes diesel fuel from plastic waste, is a success having tripled its value, which is now at $1 billion dollars. This is a time when the world is struggling over what to do with the monumental qualitites of plastic waste that continues to grow at an alarming rate. Even more welcomed is Quantafuel addressing the demand for fuel oils. Their process is more environmentally friendly than incineration of plastic. The company is increasing the production of its present plant and has plans to build additional plants with the goal of boosting production 100 fold in the next decade. No doubt, the Chinese will be showing great interest in this process because of their very limited oil resources.

3) One side effect of the coronavirus pandemic is limiting efforts to root out slavery across the world, because companies and investors are unable to visit factory floors in many countries. Even before the pandemic started, there was an estimated 40 million people working in slave like conditions, with the economic shock of the virus making people more vulnerable to exploitation. Companies are facing increasing legal obligations to ensure their supply chain doesn’t include slave labor.

4) Stock market closings for – 10 SEP 20:

Dow 27,534.58 down 405.89
Nasdaq 10,919.59 down 221.97
S&P 500 3,339.19 down 59.77

10 Year Yield: down at 0.68%

Oil: down at $37.00