44.5 F
Chicago
Saturday, October 17, 2026
Home Blog Page 2238

Prediction Markets Volume Surged 565% In Q3, Fueled By US Elections

0
Prediction Markets Volume Surged 565% In Q3, Fueled By US Elections

Authored by Zoltan Vardai via CoinTelegraph.com,

Decentralized prediction markets could offer more accurate predictions for the US elections than traditional polling systems, according to Elon Musk…

Prediction markets saw significant growth in the third quarter of 2024, driven by bets on the upcoming United States presidential election, which could have wide-reaching effects on cryptocurrency regulations.

The betting volume on prediction markets rose over 565.4% in Q3 to reach $3.1 billion across the three largest markets, up from just $463.3 million in the second quarter of 2024.

The significant growth in prediction market volume was mainly attributed to increasing bets on the outcome of the US elections, according to an Oct. 14 CoinGecko report, which stated:

“Prediction markets picked up steam in 2024 Q3, growing 565.4% due to pundits betting on the upcoming US elections.”

Top three crypto prediction markets. Source: CoinGecko

Decentralized prediction markets could be more accurate in predicting the results of the 2024 US election than traditional polling, according to billionaire Elon Musk.

Prediction markets like Polymarket enable users to stake stablecoins like USD Coin USDC$1.00 on the outcome of a specific event.

Polymarket accounts for 99% of market share

Polymarket, the largest decentralized platform, dominated the market with over 99% market share as of September 2024.

Over 46% of Polymarket’s year-to-date (YTD) volume was driven by the US presidential elections poll, according to CoinGecko’s report, which added:

“Some $1.7 billion of bets have been placed on the “US Presidential Election Winner” since the start of 2024, accounting for ~46% of Polymarket’s yearly volume.”

Polymarket TVL, year-to-date. Source: DefiLlama

Betting volume on Polymarket grew 713%, while transactions increased by 848% during the third quarter of 2024.

At the time of publication, Polymarket holds over $172 million in total value locked (TVL), according to DefiLlama data.

Former President Trump leads Harris on Polymarket

Former President Donald Trump is currently leading Vice President Kamala Harris by eight points on Polymarket.

According to Polymarket data, former President Trump has a 53.8% chance of winning the election, while only 45.3% of Polymarket users have bet on Harris.

The odds flipped in Trump’s favor on Oct. 4, marking a sharp reversal from September. By Oct. 12, Trump was leading by over 10 points, Cointelegraph reported.

US Elections, Trump, and Macro: Impact on Crypto. Source: YouTube

Tyler Durden
Mon, 10/14/2024 – 11:55

Kamala Harris Has A Major Problem With Male Voters After Years Of Democrat Castration

0
Kamala Harris Has A Major Problem With Male Voters After Years Of Democrat Castration

It’s no secret that men aren’t fans of Kamala Harris – and the Democrat party is in full panic mode over it.

Photo John Locher/AP

Look no further than their recent cringe-fest commercials, Tim Walz awkwardly trying to load a shotgun with his balls, and Barack Obama lecturing black men for their lack of support.

They’ve even resorted to oversampling women in polls to achieve the desired result. And who could forget Hillary Clinton suggesting that women who voted for Trump only did so because their husbands pressured them.

This weekend, New York Times opinion podcaster Lulu Garcia-Navarro’s reaction to JD Vance encapsulated the situation.

When asked whether expelling illegal immigrants would exacerbate the housing crisis due to a lack of construction labor, Vance suggested that “You could re-engage men to enter the labor market.”

Garcia-Navarro was taken aback – clearly unable to grasp the notion that modern men would want to fill those positions.

Watch:

Breaking it down in a viral post on X is John Konrad, CEO of maritime news website gCaptain.

“Listen to her shock—her disbelief. She doesn’t get it. She thinks men wouldn’t want to work in construction, that we’d rather sit in cushy office jobs, sipping $6 lattes in front of Zoom calls,” Konrad says of Garcia-Navarro.

He then lays out one of the major problems with men building things in America – red tape, which Democrats apply liberally to anything they can’t directly control.

Why not build ships here? Because our shipyards are buried in OSHA regulations, HR policies, union rules—everything moves at a snail’s pace. I don’t want to build slowly with tons of paperwork and red tape—I want to BUILD.

They don’t get it. They don’t see how hard it is to build in this country while making progress, earning a decent living, and having freedom. In South Korea, I had all three, but it wasn’t home.

I could get a shipyard job here but I’d make half what I made in South Korea with four times the paperwork and it would take years to build one ship. No thanks.

Lulu is shocked I’d give up my “thinking job.” For construction. Sure, I LOVE my  job now—but I’d throw it all away to build again. To construct.

It’s like the movie Office Space. My wife said it’s a “guy movie,” and she’s right. Most people think it’s just an office comedy – or think the stapler guy “won” because he’s now rich. But to guys – real men- it’s a hero’s story. The main character leaves it all behind… and ends up working construction! That’s the happy ending.

Listen to her voice. Hear the contempt: “They’d work construction?”

YES, I WOULD, LULU.

And I wouldn’t just build condos. Turn us loose, and we’d build grand ships, towering bridges, and homes with character and strength.

American men are the best builders in the world. But we’re shackled by HR, red tape, DEI, lawyers and endless regulations. All the bullshit the NYTimes constantly advocates for.

We are sick of it. We are sick of the Times. We are sick of you Lulu. Sick of you telling us what we want.

We want to build… and not build for ourselves but build great things for YOU. Yes YOU Lulu. Great things for women and men and children of all colors and religions and backgrounds. Big great things that advance all of us together.

That’s why we look up to @elonmusk
—he’s out there building rockets and robots.

ROCKETSHIPS AND  ROBOTS!

Meanwhile, it isn’t just men…

Tyler Durden
Mon, 10/14/2024 – 09:25

Heinz Pulls Two ‘Racist’ Ads After Backlash

0
Heinz Pulls Two ‘Racist’ Ads After Backlash

Authored by Steve Watson via Modernity.news,

In a world where everything is racist, you can’t have a black person in an ad for tomato ketchup without legions of snowflakes complaining it perpetuates negative stereotypes and demanding that it be cancelled.

Ketchup kings Heinz folded like a soggy burger bun when they became the target of the angry puritan mob, pulling not one but two adverts after some complaints, likely mostly from white people with deep set guilt complexes.

The first ad, for a ‘family size’ pasta sauce, appeared on the London Underground and depicted a black woman getting married to a white man, with family members also in the picture.

At the meal they are eating the pasta with the sauce.

Seems diverse, right? Wrong.

Because there is no ‘black father’ present it’s actually deeply racist… or something.

It’s “shocking” that there are only two black people(?) out of five in the ad.

The lighter skinned people are looking at the black girl stuffing her face with pasta in a disparaging way, so it’s even more racist… or something.

But hang on.

Why can’t the man to the right of the bride be her father?

They might not even be related.

It’s a f***ing advert for pasta sauce, not some anti-black conspiracy.

Instead of ignoring this stupidity, Heinz issued a grovelling apology, stating “We always appreciate members of the public’s perspective on our campaigns. We understand how this ad could have unintentionally perpetuated negative stereotypes.”

“We extend our deepest apologies and will continue to listen, learn and improve to avoid this happening again in the future,” the company added.

The insanity hasn’t ended there however.

Now every Heinz ad is under scrutiny, and a second one has been axed following accusations that it represented a black minstrel show… or something.

It doesn’t seem to matter that the person in the ad is a black person. A minstrel show consisted of white people blacking up. This is an actual black person with ketchup on their face.

It’s also supposed to be The Joker, because there is a new Joker movie out. Hence the “ha ha” caption. There were also several versions of the ad with non-black people in them.

It’s obvious, and only those who are so blinded by their obsession with everything everywhere always being racist all the time would fail to understand this.

But again, like a lettuce leaf caked in ketchup Heinz dissolved into apology, stating  “Although it was intended to resonate with a current pop-culture moment, we recognise that this does not justify the hurt it may have caused. We will do better. We are working to remove the advertisement immediately.”

If they put black people in the ads they’re racist. If they don’t put black people in the ads, they’re racist.

Damned if you do, damned if you don’t.

*  *  *

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden
Mon, 10/14/2024 – 09:05

China Initiates Huge Military Drills Around Taiwan In Warning To Island’s President

0
China Initiates Huge Military Drills Around Taiwan In Warning To Island’s President

On Monday China has launched large military drills encircling the self-governing island of Taiwan, which Taipei has blasted as an “unreasonable provocation”. China’s PLA military deployed warships and fighter jets to send a “stern warning” against “separatist acts of Taiwan independence forces”.

The PLA Eastern Theater Command deployed joint operations of the army, navy, air force and rocket force. These assets have been largely concentrated in the Taiwan Strait, as well as surrounding Taiwan. “The joint drills focused on sea and air combat readiness, blockading key Taiwanese ports and areas, and assaults on maritime and ground targets,” described the eastern theatre command’s spokesperson, senior captain Li Xi.

“The drill also serves as a stern warning to the separatist acts of ‘Taiwan independence’ forces,” Li added. The last drills of this size occurred just after the May 20th inauguration of Taiwan’s new president Lai Ching-te.

Just before these fresh drills, China’s military issued and circulated a propaganda video entitled “prepared for battle” on vairous social media accounts. The about one-minute video features fighter jets, warships and amphibious assault vessels taking to the air and sea near Taiwan. Mobile rocket launchers are also seen being maneuvered and made ready for attacks. Text associated with the video said Chinese forces are “prepared for battle at all times and can fight anytime.”

The day prior, on Sunday, Taiwan’s Defense Ministry confirmed that the Chinese aircraft carrier Liaoning entered waters near the strategic Bashi Channel south of Taiwan.

Importantly, China’s Defense Ministry has also forewarned that PLA military actions will be “pushed further with each provocation of Taiwan independence until the issue is entirely resolved.” So there is likely more ahead in the coming months.

Watch the propaganda video released by the PLA Eastern Theatre Command:

CNN cited analysts who describe that Monday’s drills “appeared less intense than earlier versions but were part of general strategy of both keeping Taiwan under pressure and normalizing regular war games.”

Beijing is presenting these new drills as a necessary response to a speech last Thursday by Taiwan’s president Lai on the occasion of National Day. He emphasized that the People’s Republic of China “has no right to represent Taiwan”.

Polymarket: Will China invade Taiwan in 2024?

On Monday in response to the drills Taiwan’s presidential office called on China to “cease military provocations that undermine regional peace and stability, and stop threatening Taiwan’s democracy and freedom.”

President Lai has convened national security meetings to monitor and address the provocative war exercises. “In the face of external threats, I would like to reassure my compatriots that the government will continue to defend the democratic and free constitutional system, protect democratic Taiwan, and safeguard national security,” Lai stated on social media.

Taiwan’s Mainland Affairs Council also slammed the “blatant provocations” which harm regional peace and stability.  Taiwan’s military has in response deployed its own warships and fighter aircraft, as well as land-based radar systems. However, none of this is likely to deter continuing support from the United States and Western partners, something which also constantly angers China.

Tyler Durden
Mon, 10/14/2024 – 08:45

Liberals Are Losing Their Minds Over Elon Musk

0
Liberals Are Losing Their Minds Over Elon Musk

Authored by Jonathan Turley,

This week, Elton John publicly renounced the Rocket Man – no, not the 1972 song, but Elon Musk, whom he called an “a**hole” in an awards ceremony.

Sir Elton, 77, is only the latest among celebrities and pundits to denounce Musk for his support of former president Donald Trump and his opposition to censorship. Musk-mania is so overwhelming that some are calling for his arrest, deportation and debarment from federal contracts.

This week, the California Coastal Commission rejected a request from the Air Force for additional launches from Vandenberg Air Force Base. It is not because the military agency did not need the launches. It was not because the nation and the community would not benefit from them. Rather, it was reportedly because, according to one commissioner, Musk has “aggressively injected himself into the presidential race.”

By a 6-4 vote, the California Coastal Commission rejected the military’s plan to let SpaceX launch up to 50 rockets per year from the base in Santa Barbara County.

Musk’s SpaceX is becoming a critical part of national security programs. It will even be launching a rescue mission for two astronauts stranded in space. The advances of SpaceX under Musk are legendary. The Air Force wanted to waive the requirement for separate permits for SpaceX in carrying out these critical missions.

To the disappointment of many, SpaceX is now valued at over $200 billion and just signed a new $1 billion contract with NASA. Yet neither the national security value nor the demands for SpaceX services appear to hold much interest for officials like Commissioner Gretchen Newsom (no relation to California’s governor, Gavin Newsom): “Elon Musk is hopping about the country, spewing and tweeting political falsehoods and attacking FEMA while claiming his desire to help the hurricane victims with free Starlink access to the internet.”

Newsom is the former political director for the International Brotherhood of Electrical Workers (IBEW) Local 569. It did not seem to matter to her that increased launches meant more work for electrical workers and others. Rather, it’s all about politics.

Commission Chair Caryl Hart added “here we’re dealing with a company, the head of which has aggressively injected himself into the presidential race and he’s managed a company in a way that was just described by Commissioner Newsom that I find to be very disturbing.”

In my book “The Indispensable Right: Free Speech in an Age of Rage,” I discuss how Musk became persona non grata when he bought Twitter and announced that he was dismantling the company’s massive censorship apparatus.

He then outraged many on the left by releasing the Twitter Files, showing the extensive coordination of the company with the government in a censorship system described by a federal court as “Orwellian.”

After the purchase, former Democratic presidential nominee Hillary Clinton called upon Europeans to force Musk to censor her fellow Americans under the notorious Digital Services Act. Clinton has even suggested the arrest of those responsible for views that she considers disinformation.

Silicon Valley investor Roger McNamee called for Musk’s arrest and said that, as a condition of getting government contracts, officials should “require him to moderate his speech in the interest of national security.”

Former Clinton Secretary of Labor Robert Reich wants Musk arrested for simply refusing to censor other people.

Former MSNBC host Keith Olbermann called for Musk to be deported and all federal contracts cancelled with this company. As with many in the “Save Democracy” movement, Olbermann was unconcerned with the denial of free speech or constitutional protections. “If we can’t do that by conventional means, President Biden, you have presidential immunity. Get Elon Musk the F out of our country and do it now.”

Of course, none of these figures are even slightly bothered about other business leaders with political opinions, so long as, like McNamee, they are supporting Harris or at least denouncing Trump. Musk has failed to yield to a movement infamous for cancel campaigns and coercion. The usual alliance of media, academia, government and corporate forces hit Musk, his companies and even advertisers on X.

Other corporate officials collapsed like a house of cards to demands for censorship — see, for example, Facebook’s Mark Zuckerberg. Musk, in contrast, responded by courageously releasing the Twitter Files and exposing the largest censorship system in our history.

That is why I describe Musk as arguably the single most important figure in this generation in defense of free speech. The intense hatred for Musk is due to the fact that he was the immovable object in the path of their formerly unstoppable force.

The left will now kill jobs, cancel national security programs and gut the Constitution in its unrelenting campaign to get Musk. His very existence undermines the power of the anti-free speech movement. In a culture of groupthink, Musk is viewed as a type of free-thought contagion that must be eliminated.

Their frustration became anger, which became rage. As Elton John put it in “Rocket Man,” he was supposed to be “burning out his fuse up here alone.”

Yet, here he remains.

George Bernard Shaw once said “a reasonable man adjusts himself to the world. An unreasonable man expects the world to adjust itself to him. Therefore, all progress is made by unreasonable people.”

With all of his idiosyncrasies and eccentricities, Elon Musk just might be that brilliantly unreasonable person.

*  *  *

Jonathan Turley is the Shapiro Professor of Public Interest Law at George Washington University and the author of “The Indispensable Right: Free Speech in an Age of Rage.”

Tyler Durden
Mon, 10/14/2024 – 08:25

US Futures Rise On Columbus Day In Push For 46th Record High Of 2024

0
US Futures Rise On Columbus Day In Push For 46th Record High Of 2024

US bonds may be closed for the Columbus Day holiday, but stocks are open and merrily melting up on pace for their 46th record high of 2024. As of 8:00am, S&P futures are higher by around 0.2% and trading above Friday’s all time high while Nasdaq 100 futs rise 0.2% with NVDA, AAPL, and GOOG leading in MegaCap Tech as investors gear up for the latest round of corporate earnings and turn increasingly turn their focus toward the US election where a pro-market Trump victory looks more likely by the day. In China, the CSI 300 Index closer ~2% higher after a choppy session where markets pumped, then dumped, then rebounded once the National Team stepped in as traders digested the latest disappointing pledges from Beijing over the weekend to support the economy. Europe’s Estoxx 50 is flat. US cash bond markets are closed today; the Bloomberg Dollar index is higher. Commodities are mixed: oil prices are -2.3% lower, base metals are higher, and precious metals show mixed movements. This week, we will have a busy earnings calendar, along with Retail Sales release on Thursday.

In premarket trading, cryptocurrency-linked stocks were lifted by gains in Bitcoin as traders bet Beijing’s latest stimulus efforts would keep speculators chasing crypto rather than Chinese stocks. MicroStrategy led gains in cryptocurrency-linked companies. Boeing fell again as the beleaguered planemaker plans to cut its global workforce by about 10% and announced $5 billion in charges. SentinelOne Inc. shares rose 4.2% as Piper Sandler upgraded the cybersecurity software company saying current estimates of its market share gains are too low. Meanwhile, US-listed casino stocks tumbled after the election of a new Macau leader, who has warned against the influence of the gambling industry in the city. Here are some other notable premarket movers:

  • B. Riley rises 20% after the embattled broker-dealer and investment firm reached a deal with funds managed by Oaktree Capital Management LP for a partnership in Great American Holdings.
  • Boeing slips 2% as the beleaguered planemaker plans to cut its global workforce by about 10% and announced $5 billion in charges across its commercial airplanes and defense businesses.
  • Caterpillar drops 2% after being downgraded to underweight by Morgan Stanley as analysts view construction firms cautiously, flagging a disconnect between fundamentals and share price.
  • FanDuel parent Flutter Entertainment rises 4% as analysts mostly played down the likelihood of heavy new taxes for the industry amid a report on Friday that the UK is considering a tax of up to £3 billion on the gambling sector.
  • Longboard Pharmaceuticals gains 50% after agreeing to be acquired by Danish pharmaceutical company H. Lundbeck A/S in a deal with an equity value of $2.6 billion.

A newly accommodative Federal Reserve is providing fresh fodder for bulls — but they’re also fighting against lofty valuations. The S&P 500’s 20% gain through September has been its strongest performance for the first nine months of a year since 1997, according to National Bank of Canada economists including Stefane Marion. That’s pushed earnings-based valuations pushed to rich levels across industries.

“It remains uncertain whether the market will finish the year as strongly as it began and whether this easing cycle will provide substantial momentum for equities,” the economists wrote in a note to clients. “The current easing cycle is unfolding in an environment of unusually high valuations.”

Meanwhile, with just weeks to go until the election showdown between Kamala Harris and Donald Trump, odds are increasing shifting in favor of the latter but it’s “still too close to call,” according to Jefferies strategist Mohit Kumar. “A Trump victory would likely be positive for risk sentiment, though more for US assets at the expense of Europe and rest of the world,” Kumar said. “In our view, the environment remains broadly positive for risky assets.”

Corporate earnings are the next test. Results from Citi, Goldman and Bank of America are due Tuesday, where the banks will provide an early verdict on the impact of interest rate cuts on their bottom lines. JPMorgan, Wells Fargo and Bank of New York Mellon all topped estimates Friday. In Europe, profits are anticipated to come in lower due to anemic economic growth and a stunted recovery in China, which is likely to drag down luxury goods makers like LVMH.

“The season has set off on the right foot, with JPMorgan and Wells Fargo reporting better-than-expected earnings,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “Consumer resilience is shining through and that’s set the bar high.”

And speaking of Europe, stocks are flat with the Stoxx 600 little changed on the day with consumer products and travel & leisure shares the worst laggards, while technology and telecommunications stocks fared best ahead of the European Central Bank decision on Thursday, where another rate cut now seems likely. Here are the biggest movers Monday:

  • UK gambling stocks slumped on Monday following a report that Chancellor Rachel Reeves may be weighing proposals to increase taxes on the industry by as much as £3 billion ($3.9 billion).
  • Adidas advances as much as 2.3% after both TD Cowen and UBS raised their price targets on the sportswear company ahead of its third-quarter results on October 29
  • Bunzl shares rise as much as 2.3% after the distributor was upgraded by analysts at JP Morgan, which have lifted their medium-term underlying margin forecasts to reflect greater confidence in the firm’s positive trajectory
  • Ashmore gains as much as 13%, the most since Nov. 2022, after the emerging markets specialist fund house delivered a first-quarter performance that Morgan Stanley says shows an “improving path”
  • TI Fluid Systems soars as much as 22%, reaching their highest level in more than two years, after management at the UK automotive components supplier said they would be “minded to recommend” the latest takeover offer from ABC Technologies if it is made firm
  • BASF shares drop as much as 1.5% after UBS cuts its recommendation on the German chemicals firm to neutral from buy, saying that the next 12 months are likely to be challenging amid slowing global economic growth
  • Munters shares fall as much as 8.5% after Carnegie downraded on the Swedish industrial air and ventilation firm to sell from hold, noting that the lack of large order announcements in the key data center segment in 3Q represents a downside risk to sales estimates
  • Aker BP shares slip as much as 1.5% after the Norwegian oil company revealed a revenue miss, driven by production falling below the contracted volumes
  • Ipsen shares drop as much as 2.4% after the pharmaceutical company was downgraded by analysts at Kepler Cheuvreux, citing a more cautious outlook
  • Bossard shares drop as much as 9.2% after the Swiss industrial company’s outlook disappointed analysts who were expecting a recovery in the market. They see lower consensus estimates as a result
  • Pagegroup shares drop as much as 0.9% after the recruitment company conceded market conditions remain challenging as it reported a sharp drop in profit during the latest quarter

Asian equities reversed early losses to eke out small gains after Chinese stocks rebounded on Beijing’s commitment to shore up the economy. The MSCI Asia Pacific excluding Japan index rose as much as 0.4%, erasing an earlier drop of as much as 0.8%. Financial and technology shares were among the top gainers. Stocks also rose in South Korea, Taiwan and Australia. Markets in Japan and Thailand were closed for a holiday.

Mainland Chinese stocks closed higher after a volatile session as investors await more details on fiscal measures. Gauges in Hong Kong pared declines. Despite promises of more support for the struggling property sector and hinting at greater government borrowing, a briefing by China’s Finance Minister Lan Fo’an on the weekend didn’t produce the headline dollar figure for fresh fiscal stimulus that the markets had sought. Still, after an initial swoon, China’s main CSI 300 Index finished 1.9% higher in volatile trading Monday, after capping its worst week since late July as Beijing’s latest efforts to jumpstart growth disappoint those seeking more details on incentives. That said, don’t expect the bounce to last.

“While some investors may be disappointed, it seems to us that the policy pivot has occurred, we should see continued momentum in the coming weeks,” BofA Securities’ strategist Winnie Wu wrote in a note. “Be long-term greedy, short-term cautious” on China equities, she said.

In FX, the Bloomberg Dollar Spot Index rises 0.1%. The Norwegian krone is the weakest of the G-10 currencies, falling 0.4% against the greenback.

In rates, treasury futures are marginally lower on the day, following losses seen in core European rates led by long-end end gilts, where UK 30-year yields are cheaper by 3bp on the day. Cash Treasuries trading is closed Monday for the Columbus Day holiday, the session does include scheduled Fed speakers from both Kashkari and Waller. No US data is scheduled. Treasury 10-year note futures are lower by around 10 ticks on the day, trading on lows at 111-29+ and edging below Friday session lows but remaining inside last week’s trading range. German government bonds are also steady with little economic data to dictate otherwise The France-Germany 10-year yield spread has barely budged despite Fitch putting France on negative outlook on Friday just a day after the government presented its 2025 budget.

In crypto, bitcoin climbed to the highest level in two weeks as investors took disappointment over China as good news for cryptocurrencies which are seen as potential beneficiaries of China stock outflows.

In commodities, oil prices declined, with Brent crude futures falling 2.1% to $77.40 a barrel, and as OPEC cut its global oil demand growth forecast for the third consecutive month. Spot gold rose $5 to $2,661/oz, trading at all time highs.

Looking at today’s calendar, there are no US events scheduled due to the Columbus Day holiday. This week includes retail sales, industrial production and housing starts. Fed speakers scheduled include Kashkari (9am, 3pm) and Waller (3pm)

Market Snapshot

  • S&P 500 futures up 0.2% at 5,870.00
  • STOXX Europe 600 little changed at 521.61
  • MXAP little changed at 192.57
  • MXAPJ little changed at 614.03
  • Nikkei up 0.6% to 39,605.80
  • Topix down 0.2% to 2,706.20
  • Hang Seng Index down 0.7% to 21,092.87
  • Shanghai Composite up 2.1% to 3,284.32
  • Sensex up 0.8% to 81,995.12
  • Australia S&P/ASX 200 up 0.5% to 8,252.81
  • Kospi up 1.0% to 2,623.29
  • German 10Y yield little changed at 2.27%
  • Euro little changed at $1.0929
  • Brent Futures down 1.6% to $77.78/bbl
  • Gold spot up 0.1% to $2,659.77
  • US Dollar Index up 0.13% to 103.03

Top Overnight News

  • China promises incremental stimulus actions, but finance minister’s press briefing lacks numerical specificity (the government could unveil precise figures later this month after the standing committee meets). WSJ
  • China’s inflation undershoots the consensus in Sept, with PPI coming in -2.8% Y/Y (vs. -1.8% in Aug and vs. the Street -2.6%) while the CPI rose 0.4% (down from +0.6% in Aug and vs. the Street +0.6%). FT
  • China’s trade numbers for Sept came in below expectations, with exports rising 2.4% Y/Y (vs. the Street +6%) and imports inching higher by +0.3% (vs. the Street +0.8%). China auto sales rise 4.5% Y/Y in Sept, reversing 5 months of declines, thanks to aggressive pricing and government stimulus initiatives. SCMP / WSJ
  • The Eurozone’s weak economic growth and sluggish consumer price rises have raised concerns that the European Central Bank may be facing the threat of too little rather than too much inflation, economists have warned. Monetary policymakers will meet this Thursday and are widely expected to reduce rates. Having previously not anticipated a cut until December, investors now view a quarter-point reduction to 3.25 per cent as a given. FT
  • US to send a THAAD missile defense system to Israel, along w/100 American troops to operate it, to help defend the country. NYT
  • Harris and Trump are tied nationally at 48% according to a fresh NBC poll (this represents a sharp rebound for Trump, who was down 5 points in the last NBC reading). NBC
  • A top economic adviser to Donald Trump dismissed concerns that the former president would weaken the dollar or cut trade if re-elected, insisting he wants the US to remain the world’s reserve currency and uses tariffs as a negotiating tactic. The comments from Scott Bessent, a 62-year-old hedge fund manager who made a windfall betting on the Japanese yen and British pound for George Soros, are relevant because he has emerged as a top Trump adviser on the economy and finance in recent years. FT
  • Boeing after the Fri close preannounced a shortfall on Q3 EPS/revenue (op. cash flow wasn’t as bad as feared) and the company said it would cut its workforce by 10%. WSJ
  • Apple developers aren’t building apps for the Vision Pro at a rapid rate, which is hurting the device’s utility and weighing on sales. WSJ
  • US Energy Secretary Granholm said about 75% of power was restored across Florida and the vast majority of power in Florida is expected to be restored by the end of Tuesday.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were predominantly higher but with the upside capped amid the Japanese holiday closure, soft Chinese inflation and lack of China stimulus details, while participants await Chinese trade data. ASX 200 was underpinned amid strength in mining stocks despite a pullback in commodity prices. Hang Seng and Shanghai Comp traded mixed in which the former initially slipped back beneath the 21,000 level with notable weakness in tech and consumer stocks after the Chinese Ministry of Finance’s press briefing omitted an actual stimulus size. Conversely, the mainland ultimately shrugged off the lack of stimulus details and softer inflation data, while other government departments also pledged support efforts, picking up further throughout the session.

Top Asian News

  • Golden Credit (China state-owned rating agency) expects the incremental size of the lastest set of fiscal policy to be no less than CNY 4tln in size, which will lift Q4 GDP growth above 5.0%.
  • China’s Finance Minister Lan Foan said local governments have CNY 2.3tln in local funds to spend in the last three months of the year which includes debt quotas and unused funds. Lan stated that the central government has relatively large room to issue debt and increase the budget deficit, while they will better use policy measures to support the economy. Furthermore, they will implement fiscal and tax reforms in a step-by-step way and will roll out some reforms over 2024 and 2025 but did not announce the size of the stimulus.
  • China’s Vice Finance Minister said they will take measures to promote stability in the property market, while they will expand the scope of usage for local government debt and will complete the issuance of CNY 1tln in special treasury bonds in 2024. Furthermore, the official said it is necessary to support large state banks to increase first-tier core capital and will support large banks’ operations and profitability to support the economy.
  • China’s MIIT said China will launch another batch of specific initiatives in Q4 to promote consumption and expand domestic demand and noted there are currently about 36,000 projects under construction in the industrial field which started during the year and are expected to pull investment of more than CNY 11tln in the next three years. It was also reported that China’s Industrial Ministry official said China will roll out supportive measures for equipment upgrades and consumer trade-ins in Q4, while China’s financial regulator official said they will lower financing costs of small and mid-sized enterprises.
  • China’s upcoming local government hidden debt swap could be over CNY 2.2tln, according to Xinhua citing a state think tank.
  • China’s MOFCOM said there are still major differences between both sides in China-EU tariff negotiations and a mutually acceptable solution has not been reached so far, while the Chinese side officially invited the European side to send a technical team to China ASAP to continue face-to-face negotiations. Furthermore, MOFCOM said Chinese companies have authorised the China Chamber of Commerce for Machinery and Electronics to propose a price commitment plan that represents the overall position of the industry, and it warned against the European side conducting separate price commitment negotiations with some companies.
  • China’s MOFCOM said Taiwan’s Democratic Progressive Party has not taken any practical measures to lift trade restrictions on the mainland, while it added relevant departments are studying further measures based on the conclusions of the ministry’s investigation into trade barriers by Taiwan against the mainland.
  • Monetary Authority of Singapore maintained the width, centre and slope of the SGD NEER policy band, as expected. MAS said Singapore’s economy is currently forecast to expand at close to its potential rate and it expects GDP growth to come in around the upper end of the 2–3% forecast range for the year. MAS said core inflation has stepped down and is anticipated to decline further to around 2% by the end of 2024, while based on its outlook, the MAS assesses that the monetary policy settings are for now still consistent with medium-term price stability.
  • Golden Credit (China state-owned rating agency) expects the incremental size of the lastest set of fiscal policy to be no less than CNY 4tln in size, which will lift Q4 GDP growth above 5.0%.

European bourses, Stoxx 600 (U/C) began the session on a modestly firmer footing, but now display a more mixed picture. Indices dipped off best levels following softer-than-expected trade data from China, with particular weakness in Chinese exports. European sectors are mixed. Travel & Leisure underperforms amid news that the UK is considering a tax raid on gambling firms, whilst Consumer Products is weighed on by Luxury names after China reported weak inflation metrics. US Equity Futures (ES +0.1% NQ +0.1% RTY +0.2%) are modestly mixed, taking a breather from the strong session seen on Friday.

Top European News

  • UK PM Starmer is to ask the competition watchdog to soften its approach as he vows to rip out bureaucracy to make the UK more attractive for investments, according to FT.
  • UK Business and Trade Secretary Reynolds added to speculation that the government is planning to increase payroll taxes for businesses by raising their national insurance contributions as he insisted that the Labour government’s manifesto had only promised not to hike the contributions for employees, according to an interview with Sky News cited by Bloomberg.
  • Fitch Ratings has downgraded France’s outlook to negative from stable, while maintaining France’s credit rating at “AA-“, citing increased fiscal deficits and political risks; the agency expects government debt to rise to 118.5% of GDP by 2028, following the announcement of the 2025 budget.
  • German Economy Ministry in monthly report says current economic indicators point to continued weakness in the German economy in the past quarter.

FX

  • DXY is flat and trading within a very tight 102.96-103.10 range; the high for today is a little shy of its 100 DMA at 103.23. The docket for today is fairly thin, with only Fed’s Kashkari and Waller due to speak.
  • EUR is modestly lower and sits in a 1.0916-34 range, in what has been a catalyst-thin session thus far; markets digest Fitch’s recent outlook change on France, moving it to negative from stable, whilst maintaining its AA- rating.
  • GBP is flat vs the Dollar given the lack of UK-specific newsflow, but as traders remain very mindful of the looming UK Budget on October 30th.
  • JPY is slightly softer and trading within a 149.09-46 range. Price action overnight was fairly rangebound, but USD/JPY did edge higher into the European morning, but with no clear catalyst.
  • The Antipodeans are the worst G10 performers thus far, largely attributed to the weak Chinese inflation metrics and after the lack of stimulus details from China’s MoF on Saturday.
  • PBoC set USD/CNY mid-point at 7.0723 vs exp. 7.0722 (prev. 7.0731).

Fixed Income

  • USTs are holding above 112-00, in familiar and very tight ranges, given the lack of cash trade on account of Columbus Day. The main update thus far was the weekend unveiling of China stimulus; however, the somewhat limited details meant the market reaction was fairly muted initially
  • Bunds are firmer but with European specifics light so far and action somewhat thinner than normal owing to the lack of Japanese trade and no US cash trade due to Columbus Day. Bunds at the mid-point of a relatively slim 133.17-41 band, which is entirely within Friday’s 132.92-133.57 range.
  • OATs are in focus but trading broadly in-line with Bunds after Fitch cut its outlook on France following the draft unveiling of the 2025 budget. Despite this, the OAT-Bund 10yr yield spread remains steady around 76 bps, in familiar ranges.
  • Gilts are flat but with specifics light as we await the commencement of the UK’s investment summit ahead of the end-October budget.

Commodities

  • Crude is in the red after coming under pressure in APAC trade from the disappointing Chinese inflation data and lack of specifics from the MOF update. Into the European morning, the complex picked up off worst levels but has since slipped back towards session lows. Brent’Dec currently sits around USD 77.20/bbl.
  • Spot gold is incrementally firmer, benefitting from the initially somewhat muted reaction to China’s latest stimulus efforts. XAU came off best levels of USD 2667/oz as mainland China reacted more strongly to the efforts.
  • Base metals are under pressure, despite the latest China stimulus efforts and subsequent upgrades to China’s GDP view by some desks. Efforts which have been overshadowed by the lack of detail from the MOF on the weekend and since by disappointing inflation and trade data from the region.
  • OPEC MOMR to be released at 12:25BST/07:25ET.

Geopolitics – Middle East

  • US President Biden said he is sending THAAD missile defence to defend Israel, according to WSJ.
  • US Secretary of Defence Austin expressed deep concern over reports that Israeli forces fired on UN peacekeeping positions in Lebanon and called for the safety and security of UNIFIL forces and Lebanese armed forces during a call with Israel’s Defence Minister Gallant.
  • Israeli PM Netanyahu urged UN Secretary-General Guterres to remove UNIFIL forces from combat areas in Lebanon, while it was also reported that Israel’s Foreign Minister declared UN chief Guterres persona non grata over his Iran stance, according to Reuters.
  • Israel’s military said an IDF tank that was trying to evacuate injured soldiers backed several meters into a UNIFIL post in southern Lebanon and once enemy fire had stopped and following the evacuation of injured soldiers, the tank left the post. Furthermore, the Israeli military said no danger was posed to UNIFIL soldiers by IDF activity throughout the entire incident, according to Reuters.
  • UN spokesperson said UNIFIL peacekeepers in Lebanon remain in all positions and UNIFIL is taking all possible measures to ensure the protection of its peacekeepers, while the spokesperson added that the UN Secretary-General called on all parties including the Israeli military to refrain from any actions that put peacekeepers at risk, according to Reuters.
  • Israel’s military ordered the residents of 22 villages in southern Lebanon to evacuate north of the Awali River, while the Israeli military declared areas around a number of towns in northern Israel as closed to the public, according to Reuters. Furthermore, the Israeli army said Hezbollah fired 25 rockets from nearby positions of UNIFIL forces towards IDF positions and Israeli towns.
  • Lebanon’s Hezbollah said it attacked a Golani Brigade camp in northern Israel with a swarm of drones which was reported to have injured more than 60 people and it warned Israeli settlers against staying near army bases in northern Israel until further notice, according to Reuters. It was separately reported that Hezbollah said it shelled with rockets enemy forces in the settlement of Al-Manara for a fifth time.
  • Hezbollah promises Israel that what it witnessed in southern Haifa is nothing compared to what awaits it if it decides to continue its aggression against their people, according to AFP News Agency.
  • Iran’s Foreign Minister commented on X that they have no red lines in defending their people and interests.
  • Iran’s Revolutionary Guards aerospace commander Hajizadeh said Tehran is ready to respond to any misstep by Israel, according to Tasnim.
  • French President Macron urged Iranian President Pezeshkian to support a general de-escalation in the Middle East during a conversation, while Macron stressed in another discussion with Lebanon’s caretaker PM Mikati the ‘absolute necessity’ to obtain a ceasefire without further delay, according to the Presidential Office.
  • Turkish President Erdogan said Israel is a concrete threat to regional and global peace, while he said it is essential for Russia, Iran and Syria to take effective measures when asked about Israel’s strike on Damascus.
  • Pentagon said US forces conducted a series of strikes against multiple Islamic State camps in Syria.

Geopolitics – Other

  • Ukrainian President Zelensky said Russian forces tried to push back Ukrainian troops in Russia’s Kursk region, while he added that Ukraine is holding out positions.
  • Ukraine’s air force said on Sunday morning that Russia launched 68 drones and four missiles that targeted Ukraine.
  • Russian and Chinese warships conducted joint drills to repel a missile attack in the Pacific.
  • Taiwan’s Defence Ministry said a Chinese aircraft carrier group entered the Bashi channel on Sunday and will probably be operating in the western Pacific, while it was later reported that China’s military announced the PLA Eastern Theatre Command will dispatch its troops from the army, navy, air force, and rocket force to conduct joint military drills code-named “Joint Sword-2024B” in the Taiwan Strait and areas around Taiwan.
  • Taiwan’s Defence Ministry said it strongly condemns China’s irrational and provocative act, as well as announced that it has dispatched forces to respond to China’s drills. It later updated that aircraft and ships have been responding to the hostile situation in accordance with the rules of engagement and will not escalate conflict in their response.
  • US President Biden’s administration official said they are monitoring the PLA exercise and urge the PRC to avoid any further actions that may jeopardize peace and stability across the Taiwan Strait and in the broader region, while it added there is no justification for military exercises and pressure campaigns in response to a routine annual speech.
  • North Korea said it ordered artillery corps near the border to fully prepare to shoot after it threatened a “horrible disaster” over the alleged flight of drones over its capital, according to Yonhap.

US Event Calendar

  • Nothing scheduled

DB’s Jim Reid concludes the overnight wrap

This week kicks off with a partial US holiday (Columbus Day) today where bond markets will be closed but with equity markets remaining open. The main news over the weekend has been from China where the highly anticipated Ministry of Finance press conference on Saturday was light on specifics of immediate stimulus measures but provided strong forward commitment and the announcement of a large-scale local government debt swap that exceeded our economists’ expectations, with them suggesting it could mark a multi-year turning point in China’s fiscal policy framework. They have raised their 2024 GDP forecast to 4.9% (from 4.7%), based on already announced measures and are expecting more concrete measures to now appear at the upcoming NPCSC in late October.

Overnight Chinese markets opened firm, fell back just below zero, but are now back close to their opening highs. Currently, the Shanghai Composite is up by +1.66%. Oil is -1.2% lower after the China briefing but that could be as much due to taking out some weekend geopolitical risk premium with no Israeli retaliation seen as yet. Elsewhere, the KOSPI has gained +1.02% and the S&P/ASX 200 is up by +0.42%. However, the Hang Seng is -0.42% lower. S&P 500 (-0.06%) and NASDAQ (-0.21%) futures are also on the softer side. Japanese markets are closed for a holiday.

Also over the weekend, data revealed that China’s September CPI rose by +0.4% year-on-year, the slowest in three months, compared to a +0.6% rise in August and below market expectations of a +0.6% increase. PPI fell by -2.8% year-on-year, the fastest decline in six months, compared to a -1.8% drop in the previous month and below the expected -2.6% decline. So weaker prices than expected all round, but with the subsequent stimulus announcement markets should be comfortable excusing recent data for now.

In terms of this week, the key events will likely be on Thursday with US retail sales and jobless claims, alongside the latest ECB meeting. Outside of this, US earnings season starts to accelerate after last Friday’s unofficial start and there are plenty of central bank speakers to digest as well. Before we dig into these, the other main global highlights this week are the NY Fed 1yr inflation expectations (today), UK employment, German/European ZEW survey, ECB bank lending survey, Eurozone IP and Canadian CPI (tomorrow), UK inflation (Wednesday), US IP and NAHB housing index (Thursday) and US housing starts/building permits, China’s monthly data dump (including Q3 GDP, retail sales, IP, and property data), alongside Japanese CPI to round out the week on Friday.

Digging a bit more into that week ahead now, of all the Fedspeak, Waller today may be the most interesting given he’s traditionally a hawk and is a voter. In his last outing, Waller suggested that another 50bp reduction in an upcoming meeting was a possibility if the labour market weakened further or if inflation continued to come in softer than expected. Since then the opposite has seemingly occurred so will he revert back to more hawkish form?

Skipping to Thursday, September US retail sales will be a swing factor in putting together final Q3 GDP forecasts but jobless claims could spike a significant amount higher (DB forecast 270k vs. 258k last week) and to 3-year highs due to the latest storm. We were surprised that the market zoned in on the spike last week as much as it did as you have to assume for now that most, if not all, of the increase was storm related. The impact of the storm will also feed into this month’s payroll data so there will be a lot of difficulty in assessing employment trends in the next several weeks. Even retail sales might spike up a little this week as storm preparation in Florida may have boosted sales at the end of September.

The highlight of the week in Europe will be the ECB decision on Thursday. Our European economists expect a 25bps rate cut following recent lower-than-expected inflation prints as well as weaker growth (see their full preview here). The central bank will also release its bank lending survey on Tuesday and the survey of professional forecasters on Friday. The lending survey is a good guage to see whether we’re past the peak impact of the monetary transmission mechanism. In recent quarterly surveys, lending has improved with future expectations improving too so things have been looking up. Elsewhere in Europe keep an eye for the budget in Italy tomorrow, ahead of the EU deadline. Fitch and S&P are likely to opine on Italy’s rating after the close on Friday. The former could influence the latter to some degree. Indeed, late on Friday Fitch placed France on negative outlook after its budget announcement last week saying that “Fiscal policy risks have increased since our last review.” Over in Asia, the focus outside of China will be on the Japanese national CPI due on Friday.

In terms of earnings, we’ll start to see some momentum with the highlights including key semiconductor firms TSMC (Thursday) and ASML (Wednesday). Otherwise, US bank results will continue to come in with Bank of America, Citigroup and Goldman Sachs (all tomorrow) the highlights, alongside large cap healthcare names including UnitedHealth, Johnson & Johnson (both tomorrow) and Abbott (Wednesday). Other notable names include Netflix and Blackstone on Thursday and Procter & Gamble on Friday.

Looking back at last week now, risk assets put in a decent performance and looked through ambiguous data. The S&P 500 ended up advancing +1.11% (+0.61% Friday) and posted a 5th consecutive weekly gain, with Friday seeing its 45th record high of 2024 so far. Banks saw a particularly strong performance after the start of earnings season, with the KBW Bank Index ending the week up +3.98% (+3.04% Friday) at its highest level since April 2022. Europe also saw gains, with the STOXX 600 up +0.66% (+0.55% Friday), but in China the Shanghai Comp fell -3.56% (-2.55% Friday) amidst disappointment at the lack of detail around China’s stimulus.

Whilst equities were mostly advancing, sovereign bonds lost ground in general following on from the post payrolls trend the previous Friday. Inflation risk was also back in the spotlight though, particularly after the US CPI reading was stronger than expected last week. Indeed, the US 2yr inflation swap picked up another +13.9bps last week to 2.48%, its highest level in over three months. In turn, that meant investors slightly dialled back their expectations for rate cuts, with the rate priced in by the Fed’s December 2025 meeting up +4.9bps over the week to 3.34%. So when it came to sovereign bonds themselves, yields on 10yr Treasuries were up +13.3bps (+3.8bps Friday) to 4.10%, and those on 10yr bunds were up +5.6bps (+0.9bps Friday) to 2.26%.

Finally, oil prices ended the week modestly higher, although only after paring back their strong gains from earlier in the week. Indeed at one point, Brent crude reached an intraday peak above $81/bbl, but by the close on Friday, it was only up +1.27% (-0.45% Friday) to $79.04/bbl. That came alongside a modest increase in gold prices, which ended up posting a weekly gain of +0.11% thanks to stronger gains towards the end of the week (+1.42% Friday) as inflation risks came back into focus.

Tyler Durden
Mon, 10/14/2024 – 08:18

Whoever Wins This Pennsylvania County Is Expected To Win The White House

0
Whoever Wins This Pennsylvania County Is Expected To Win The White House

Authored by Joseph Lord via The Epoch Times,

Thousands turned out to the Bayfront Convention Center on Sept. 29 to hear former President Donald Trump speak. Hundreds more gathered outside the convention center to watch Trump’s speech on a jumbo display, while nearby stands were set up to register voters, hawk mail-in ballots, and hand out Trump-Vance yard signs and bumper stickers.

There’s a reason for that: Erie County, which hosts the city of Erie, is a strong indicator of who will win Pennsylvania. Since 1980, with the exception of 1988, the county has backed the winner of statewide presidential races.

While it doesn’t rise to the level of a national bellwether—it’s often backed candidates who went on to lose the general election—since 2008, it’s ultimately backed the candidate who won Pennsylvania.

That makes it a crucial county in 2024, when the winner of Pennsylvania is highly expected by pundits to win the entire election.

As recently as 2008 and 2012, the Democratic Party was king in the county: In his election and reelection bid, President Barack Obama won the county by 20 points and 16.9 points respectively. But in 2016, Trump shifted the county by 18.5 points in Republicans’ favor, and won the county by 1.6 percent.

In 2020, reflecting the razor-thin margins of the election in the state and nationwide, President Joe Biden carried the county by just 1 percent, or 1,417 votes.

The changing politics can be attributed in part to the area’s cultural and demographic background.

A few hours’ drive north of Pittsburgh, Erie County sits at the northwestern end of Pennsylvania, bordering the Great Lake of the same name, upstate New York, and Ohio.

The city of Erie, home to large immigrant and university student populations, is Pennsylvania’s fifth most populous, lying at the northern edge of the county. Beyond that, the area has several suburban areas and developments. The southern half of the county is largely rural, home to several scattered, small townships.

The county’s Rust Belt origins are on full display in Erie, with defunct factories and industrial centers dotting the city and its environs.

An Oct. 2 photo of one of the many former industrial centers in Erie County that have long been shuttered. Joseph Lord/The Epoch Times

Demographics

In many ways, the county, with its mix of urban, suburban, and rural voters, reflects larger voter distributions in Pennsylvania.

“I try to explain it this way: if you take all of Pennsylvania … and you shrink it down, it’s Erie, because we’ve got large industry, we’ve got tool and die … the small mom and pop places. The southern part of the county is all rural, strictly agriculture. You’ve got diversity,” Tom Eddy, chairman of the Erie County GOP, told The Epoch Times.

According to the Census Bureau, the county is home to around 271,000 people.

Around 83 percent of them are white. At an average household income of around $60,663, many voters in the area fall squarely into the white working class, a key electorate for both parties.

This demographic has trended toward Republicans since Trump entered politics. In 2008, about 55 percent of them backed Obama. In 2016, Trump’s first presidential campaign, 62 percent of the white working class voted for him. In 2020, their support dipped to 59 percent.

For Democrats, the goal is to largely hold onto their minority share of the demographic, while expanding among suburban, white collar, and Erie city voters—all demographics more favorable to the party in recent years.

Erie County Democratic Party Chairman Sam Talarico—a former schoolteacher who’s been involved in Democratic politics since 2000—acknowledged that in Erie and across the country, Democrats are increasingly struggling with the white working class.

On the other hand, he noted that suburban areas—such as Fairview Township and Harborcreek, which border the city center to the east and west—are shifting in Democrats’ favor.

“Fairview is our most affluent community, and it used to be a Republican stronghold. It’s about 50/50, right now, possibly a little more blue, and it’s turning bluer,” Talarico said.

Democrats are also striving to keep their substantial lead in the city itself, a lead aided by the city’s vast student and immigrant population—two demographics that also favor the Democratic Party.

Trump and the Republicans, meanwhile, are seeking to expand their lead among the white working class—which makes up a substantial swath of the Pennsylvania electorate—and to win over independents.

Signs along a major roadway show support for former President Donald Trump, Sen. JD Vance (R-Ohio), and Senate contender Dave McCormick in Erie County, Pa., on Sept. 30. Joseph Lord/The Epoch Times

Eddy noted that Democrats do maintain a slight advantage in voter registration in the county, with about 10,000 more registered Democrats than registered Republicans. But the most crucial bloc for both parties is the county’s 35,000 independents.

“I think the big swing is going to be the independent voter,” Eddy said. “They’re the ones that make the difference.”

Speaking about the closing gap between registered Republicans and Democrats in recent years, Talarico said, “I’m not going to say it isn’t concerning. It is.”

But like Eddy, Talarico said the real “X factor” will be the independents.

And many of those independents, he noted, are young people—a demographic that tends to favor Democrats, particularly young women.

For Republicans and Democrats on the ground, the stakes are clear: As goes Erie, so goes Pennsylvania; and as goes Pennsylvania, so goes the election.

Republican Enthusiasm

With just about a month left until the election, Erie County appears more politically active than ever: Bumper stickers, billboards, and yard signs expressing support for one candidate or the other litter the area, with a noticeably stronger showing of “Trump/Vance” signs.

There are strong indicators of Republican enthusiasm.

At GOP headquarters in Erie—a small office space in a strip mall just outside the city center—county residents stopped by in droves.

Republicans’ base of operations in Erie County, Pa., on Oct. 1. Joseph Lord/The Epoch Times

Almost every 10 minutes, a new person came into the office requesting voter registration forms, mail-in ballots, or apparel to show their support for Trump. Many offered $20 donations in exchange for a dwindling supply of Trump shirts. Several purchased apparel for their children.

The office is filling yellow file envelopes with voter registrations and mail-in ballots almost every day—including many who have never voted before. Often, the Republicans run out of apparel to offer voters due to the high demand.

“The energy level is extremely high. That’s what I’ve noticed more than I’ve noticed in any of the other elections,” Eddy said.

The Erie County Democratic headquarters is a few miles away in downtown Erie, comprising a large office space a few dozen blocks from the city center.

Compared to Republican headquarters, the energy level is noticeably muted and less chaotic. Volunteers could be seen talking, watching television, and taking calls in the office’s large backroom area. A handful of other volunteers and voters circled through to collect party apparel, yard signs, or bumper stickers.

While it’s harder to access the building by vehicle, with only a limited number of meter-based parking spots outside, the subdued atmosphere reflects the uncertain position Democrats find themselves in.

Democrats’ headquarters in Erie, Pa., on Oct. 2, 2024. Joseph Lord/The Epoch Times

While Talarico noted that “on paper” his party’s prospects look bleak, Talarico told The Epoch Times that he still sees reason for optimism.

“The most compelling thing I’ve seen is enthusiasm,” he said.

Before Biden’s departure, Democrats had just 60 or so volunteers; since Harris took over the ticket, that number has jumped to 320. Around 250 people attended a vice presidential debate watch party hosted by the county party.

Talarico also noted that Democrats have seen vast success in the county in recent nonpresidential elections.

That’s true. In 2022, Sen. John Fetterman (D-Pa.) handily defeated Republican Mehmet Oz in Erie County, winning 53 percent of the vote to Oz’s 44 percent. Democratic Gov. Josh Shapiro enjoyed greater success the same year, defeating his Republican opponent by a landslide 22-point margin in Erie County.

Thus, Talarico said, Democrats’ position might not be “as dire as it looks on paper.”

‘Trump Factories’

It’s not just the Erie County Republican Party that’s hard at work trying to flip the county back to Trump’s camp.

Leo Williard, a small business owner, has set up what he calls “Trump factories” in two auto dealerships owned by his friend and located just outside downtown Erie.

While still managing his own business, Williard told The Epoch Times that he spends hours every week talking to and converting Democratic voters to Trump’s side.

Williard said he was inspired to do so by the city of Erie’s Democratic leanings: While the rural and suburban areas are more evenly divided, the city itself votes overwhelmingly for Democrats.

Many of those who come into the dealership are from the city, he said.

“And we started talking to those people, and I have a table set up in the corner of his office up there that I call the ‘Trump corner.’ I call this whole process the ‘Trump factory,’” Williard said, adding that he was bringing as many as five to 15 Democrats a day over to Trump’s side.

“You can’t believe the people we are turning from Democrat to Trump.”

For many, financial concerns—particularly inflation—are the most pressing issue, Williard said, agreeing that inflation could be described as “the No. 1 issue” in the county right now. The modest income of many residents makes the hit harder than it might be in more affluent areas, Williard said.

Williard said that Democrats’ decision to nominate Vice President Kamala Harris did energize the Democratic base in the city, but he is confident.

“I still think that Erie County, based on the work I see being done and the enthusiasm I see, will go red. I think it will turn the state red,” Williard said.

Republicans have seen strong signs for optimism—but recent Democratic victories in the county still undercut any sort of certainty.

Tyler Durden
Mon, 10/14/2024 – 07:20

As Self-Driving Cars Near, Fear Heightens

0
As Self-Driving Cars Near, Fear Heightens

While previous (now discontinued) surveys about self-driving cars had shown people warming up to the idea of taking their hands off the wheel, a newer survey by the American Automobile Association now attests that Americans might be getting cold feet as the advent of self-driving cars – or at least robotaxis – is drawing nearer. The survey also only queried drivers, which might be why it has been getting worse results. Additionally, accidents involving driver support systems as well as fully autonomous vehicles made headlines, especially in the U.S., in recent years and could have contributed to a change of heart for some.

As Statista’s Katharina Buchholz reports, two thirds of U.S. drivers over the age of 18 said that they felt afraid in regard to self-driving vehicles, up from just 54 percent in 2021. Only 9 percent said they felt trust, down from 14 percent three years ago.

Infographic: As Self-Driving Cars Near, Fear Heightens | Statista

You will find more infographics at Statista

Probably the biggest U.S. incident in fully self-driving cars was an accident involving a Cruise robotaxi in San Francisco in October 2023, in the aftermath of which the GM subsidiary suspended operations in six U.S. cities. In the incidents, a different car hit a woman which was flung into the path of the Cruise robotaxi which did not assess the situation correctly due to the unusual way the pedestrian entered its path, did not stop and dragged the woman for 20 feet (6 meters). While the victim of this crash survived with major injuries, a 2018 accident with a self-driving car being tested in Tempe, Arizona, proved fatal for a pedestrian who was crossing a multi-lane road without a crosswalk when stuck by an Uber-Volvo prototype. While a safety driver was on board that day, the person didn’t watch the road, a court found.

Tesla’s driver assistance system, which does not constitute a fully autonomous driving experience, was involved in more than 700 crashes and 17 fatalities between 2019 and mid-2023, a Washington Post investigation has found. While it is not always easy to discern if the main cause of the accident was the driver using the system when they shouldn’t have or whether the system was faulty, the situations that arise from these crashes can certainly be distressing as automated systems tend to make different mistakes from humans. In the case of a specific accident, it is therefore often obvious that a human driver could have reacted better, for example braking after having hit someone.

However, automated driving systems do not make a lot of the mistakes humans are prone to, for example those tied to drowsiness, intoxication or speeding.

Researchers have found that self-driving cars tend to be better in routine situations, but that some maneuvers relatively easy for humans, like turning, can challenge them. Humans can also react better in totally new and unexpected situations that autonomous cars might not have been prepared for.

Tyler Durden
Mon, 10/14/2024 – 06:55

Norway, One Of World’s Most Cashless Economies, Just Made It A Lot Easier To Pay With Cash

0
Norway, One Of World’s Most Cashless Economies, Just Made It A Lot Easier To Pay With Cash

Authored by Nick Corbishley via NakedCapitalism.com,

In a major U-turn in the Global War on Cash, the government and central bank of Norway, one of Europe’s most cashless economies, are seeking to slow or even reverse the mass abandonment of cash. Only 3% of Norwegians used cash in their latest purchase in a physical shop, according to a recent central bank survey.

In a bid to change that, a new amendment to Norway’s Financial Contracts Act came into force on October 1 that bolsters citizens’ rights to pay with cash in retail settings. The new legislation should sound the death knell for all the “we only accept cards” signs plastered on shop windows throughout the country, reports the Norwegian online newspaper Nettavisen.

Norway’s central bank, Norges Bank, explains on its website how the new amendment will “clarify” customers’ right to pay in cash:

Section 3-5 (1) of the Central Bank Act stipulates that banknotes and coins issued by Norges Bank are legal tender. It further states that no one is obliged to accept more than 25 coins of each denomination in one transaction. Beyond this, the Act does not elaborate on what legal tender implies.

In June 2024, the Storting enacted an amendment to Section 2-1, third paragraph of the Financial Contracts Act, clarifying consumers’ right to pay with cash:

“In sales premises where a business regularly sells goods or services to consumers, the consumer shall be offered the option to pay with legal tender if it is possible to pay for the goods or services with other payment solutions in or in immediate connection to the sales premises. If the business has available change, it must also offer to provide change in connection with the payment, unless there is a clear discrepancy between the banknote offered as payment and the amount to be paid. The first and second sentences do not apply to the sale of goods from vending machines, sales in unstaffed premises, and sales in premises to which only a limited group of people have access. The first and second sentences also do not apply when the amount to be paid exceeds 20,000 kroner.”[1]

For anyone wondering, 20,000 kroner is worth close to $2,000. As Norge Bank explains, retail businesses that refuse to abide by this change in the law could face financial penalties:

In connection with this legislative amendment, the Storting also decided to introduce a sanction in the form of an administrative fine, which may be imposed if businesses willfully or negligently violate the rules in Section 2-1, third paragraph.

Motive #1: Genuine Financial Inclusion

One of the main justifications for the legislation is to support the estimated 600,000 people in the country — equivalent to roughly 10% of the population — who struggle to use digital payments, and who have been increasingly excluded from the retail economy. Cashless economics is often touted as a means of encouraging financial inclusion, which generally means extending exploitative and abusive financial services to those previously excluded. However, in reality there is no more inclusive form of payment method than cash.

“In a digital world, it can be easy to forget that there is a large group of people who are not digital,” says Minister of Justice and Public Security Emilie Enger Mehl. “Cash is also an important emergency preparedness for society. I am pleased that the majority in the Storting [Norway’s parliament] so clearly supported our proposal to strengthen the right to pay with cash. The regulations have been too unclear. People should be confident that they will be able to pay when they go to the store, to a restaurant or to the hairdresser.”

Many Norweigan pensioners are “jubilant” about the change in law, reports Nettavisen.

“This is very important for all the elderly who struggle to pay online, remember the code or who struggle to trust bank cards,” says manager Jan Davidsen, manager of the Norwegian Pensioners’ Association. “For many, cash provides security, it is something they have become accustomed to over the course of a long life. This has been a battle for us, so now we are going to celebrate!”

But not everyone is cracking out the champagne. As NC reader Anders points out in the comments below, Norway, like neighbouring Sweden, has near-free debit cards. And although the payment terminal does have fees associated with it, the costs for retailers are less than what cash costs. Some retailers are far from enamoured with the idea of having to once again handle cash.

“I’m not going to change my practices,” Anders Ellburg, general manager of Holmenkollen, an upmarket restaurant in Helsinki, tells Finans Fokus:

“Cash costs me a lot of money to handle. I run a clean business. Only those who run the black market are interested in cash.

Ellburg put his foot down against cash payment as early as 2014. The card advocate from the capital’s fashionable restaurant scene is the only one of the cash-free players we have contacted who wanted to have a chat with Finansfokus. But Ellburg also made it clear that we should rather talk to those who still use cash – and ask why on earth they do it.

“I was the first in Norway to issue a press release stating that I do not accept cash. When older people have come and told me that they have been to the ATM to withdraw money, I have explained that there is no difference between entering the code in the ATM and entering it at a bank terminal in the restaurant,” he says.

Motive #2: Financial Resilience

Besides ensuring that people are not excluded from participating in the economy, the new amendment has another important goal in mind: to provide the economy with greater financial resilience. In April, a press release from the Ministry of Justice and Public Security highlighted the importance of cash as an “always on” payment option, ensuring Norway’s economy will not be rendered completely inaccessible in the event of “prolonged power outages, system failure or digital attacks against payment systems and banks”.

The Norwegian Directorate for Civil Protection even recommends people to have some amounts of cash at all times in case digital forms of payment stop working — something that appears to be happening with increasing frequency. This echoes a similar message issued a couple of years ago by a Finnish central bank official. In October 2022, Päivi Heikkinen, the Head of the Payment Systems Department and Chief Cashier at the Bank of Finland warned that households in Finland should make sure they have some cash on hand, just in case the country’s payments system goes down.

“More payment methods bring resilience,” said Heikkinen. “If a single payment method sometimes does not work, then we have other payment methods at our disposal. Cash still plays a very important role here.”

A Growing Trend

In another neck of the Scandinavian woods, the world’s oldest central bank, Sweden’s Riksbank, keeps sounding the alarm about the fragility of cashless economies, as we reported in May:

Digitalization… makes payments “more vulnerable to cyber attacks and disruptions to the power grid and data communication,” the bank points out. At the same time, the geopolitical developments of the past few years required “Sweden to have strong civil defense.” The developments suggested “that we should concentrate more than before on the challenges of digitalization.”

Put another way, cash does not crash. It does not fail in a power cut or seize up during a cyber attack (though, of course, ATMs might). By contrast, digital payment systems need a stable and continuous internet connection to process transactions. When these connections fail, the result is often chaos. Digital payment outages have caused significant disruption in a host of countries in recent years, including the US, the UK, Australia, Indonesia, Germany, Canada, Spain and Norway. Generally speaking, the more cashless the country, the greater the disruption.

Since that post went up, the world has suffered an even more disruptive payments outage. In July, a content update by the cyber-security firm CrowdStrike caused millions of Microsoft systems around the world to crash, bringing the operating systems of banks, payment card firms, airlines, hospitals, NHS clinics, retailers and hospitality businesses to a standstill. Businesse were faced with a stark choice: go cash-only, or close until the systems came back online.

Such was the scale of the resulting disruption that even stalwart British media outlets like The Sun, The Times, The Guardian and The Mail ran articles on how the global IT outage had underscored the fragility of a cashless society. The Daily Mail plastered the message across its front page:

The digital payment outages didn’t stop there; they just keep on coming. On September 12, 250,000 card terminals in Germany — the equivalent of one-in-four of the country’s devices — stopped working, according to FAZ. Once again, the cause of the outage appears to be a software glitch, this time affecting the payment service provider Telecash. On the same day, outages were also reported in the Netherlands.

Protecting the Right to Use Cash: A Growing European Trend

In recent years a growing number of countries in Europe have passed or proposed legislation to protect the right of citizens to use cash as payment. They include Switzerland and Austria, two countries where cash is still very much King, as well as Slovakia, where the Robert Fico government last year passed an amendment to the constitution intended to protect physical payments from a future in which the digital euro becomes mandatory.

Back in Sweden, which is arguably even more cashless than Norway, the Riksbank, like its Norwegian counterpart, has called on the government to adopt urgent measures to strengthen cash’s role as a means of payment. Late last year, the central bank echoed a point we have been making for the past few years: “it is not enough to simply take measures to strengthen the availability of cash through withdrawal requirements and new depots, it must also be usable.”

That means taking a leaf out of neighbouring Norway’s book and adopting legislation that makes it much harder for retail outlets to reject cash payments. In a 14-page response to a parliamentary inquiry on the State’s role in payments, the Riksbank warned that “legislation on cash needs to be tightened up immediately” and “political decisions are needed urgently so that everyone can pay”:

“Cash is essential for digitally and financially excluded consumers. Cash is also the only payment instrument that can be used independently of electricity and telecommunications and is therefore important for Sweden’s emergency preparedness. There is no reason or time to wait for a new review, as the Inquiry infers. There is a considerable risk that cash will be further marginalised and that in the near future it can no longer be used for essential purchases. The Riksbank therefore proposes legislative amendments regarding the possibility of paying cash for essential goods and an obligation for banks to accept cash deposits from consumers”…

The Riksbank does not share the Inquiry’s assessment that, with regard to legal tender, the
legislator can wait to introduce even stronger obligations to accept cash until a new review of
the status of cash and access to cash has been carried out. In the Riksbank’s opinion, the Inquiry should have submitted legislative proposals that strengthen the position of cash even
more.

The inquiry itself concluded that Sweden’s shift toward a cashless society may have finally reached the outer limits of what is possible — at least for the “foreseeable future.”

“The use of cash for payment purposes has gradually declined over a longer period of time and is now comparatively low,” the inquiry reported, before adding that demand for cash has ‘remained virtually unchanged’ over the past five years. “Analysts have concluded that the direction of travel is clearly towards (in principle) a cashless society, especially in Sweden. The statistics, however, do not point to such a development, or indeed… that this will occur in the foreseeable future.”

Now, the central banks of both Sweden and Norway have the unenviable task of trying to slow or even reverse the mass abandonment of cash that they themselves helped set in motion. They will have their work cut out given that so much of their respective countries’ cash infrastructure — in particular private banks’ branch networks, ATMs and the distribution services offered by cash handling companies — has been allowed to wither over recent years.

It also remains to be seen whether enough Swedish and Norwegian citizens are prepared to reembrace cash if it is made more available and easier to use. As in many countries, demand for cash in Norway has risen slightly over the past year with the number of withdrawals at ATMs ticking up, according to Norges Bank. But is this a sustainable trend? As payment technologies have advanced this century, most Norwegian and Swedish citizens have embraced the speed, ease and convenience of digital payments. But they were also nudged in that direction.

By 2016, Sweden’s commercial banks had made 60% of their branches cashless, as a 2019 Riksbank working paper documents. This made it much more difficult for citizens to access cash and for businesses to deposit it, which in turn accelerated the uptake of digital payments and the abandonment of cash. The Riksbank did its part by withdrawing many of Sweden’s large denomination notes from circulation. Now, it is trying to halt, or at least slow, the country’s onward march toward a cashless future.

Time is of the essence. As the central bank warns, if urgent action isn’t taken to fortify Sweden’s cash infrastructure, it will soon be too late:

[T]here are already such problems with cash and cash handling that there is reason to immediately tighten legislation to safe guard the position of cash and access to cash services. If the state waits until cash and cash services are further phased out, this could lead to a situation where it is too late to take action, or there is a risk that operators will be forced to go back and reinvest in equipment and systems.

Given Norway and Sweden have gone further than most countries in removing cash from the economy, the fact they are both now warning about the dangers and vulnerabilities of a fully cashless economy as well as the urgent need to protect both access to and use of cash should be taken very seriously — not just within their borders but far beyond them.

Tyler Durden
Mon, 10/14/2024 – 03:30

Russia Claims Another Ukrainian Town In East As Fighting Also Intensifies In Zaporizhzhia

0
Russia Claims Another Ukrainian Town In East As Fighting Also Intensifies In Zaporizhzhia

Russian forces on Sunday announced more advances in the vicinity of the strategic Ukrainian city of Pokrovsk, after weeks of steady gains and several villages recently being brought under Russia’s control.

The defense ministry said Russian troops have now taken the village of Mykhailivka, which lies just outside the town of Selydove and to the south of Pokrovsk.

Via Reuters/RFE/RL

Selydove could be next to fall. It has already been largely turned to rubble after months of heavy shelling, and most of the population had along ago fled.

Further details published in Newsweek show that Selydove is a current main focus of Russian forces:

In an update published at 4 p.m. local time, the Ukrainian General Staff did not mention Mykhailivka by name, but said Russian forces were “concentrating its main efforts near Selydove, where 12 battles have taken place so far.”

Popular Ukrainian war-tracking blog, DeepState, showed the vast majority of Mykhailivka to be under Russian control as of Sunday.

For the majority of the war, Pokrovsk has acted as the logistical hub and rear operations base for Ukraine’s eastern defensive lines. It sits astride both a key railroad juncture and the highway to Ukraine’s fourth-largest metro, Dnipro.

The city’s defensive positions are a final obstacle to Russia’s access to most of the region. If Pokrovsk falls Russian forces will be able to easily flank entrenched troops in the north and south of the country. Donetsk and the whole east would then be under complete Russian control.

Apart from Donetsk, heavy fighting has also been reported in southern Zaporizhzhia region this weekend. Ukraine’s military on Sunday is sounding the alarm over “new assault operations”.

Fresh widespread power outages have been reported in Zaporizhzhia as a result. “Power outages have been reported in Zaporizhzhia and Kherson oblasts over the past 24 hours due to ongoing hostilities,” local media reports.

“Russian forces targeted a substation in Kherson Oblast with a drone, igniting a fire that has since been extinguished,” the update continues. “Consumers have been switched to backup power supplies.”

President Zelensky over the weekend has touted that the Ukrainian Army has held the lines in Russia’s Kursk region; however, the Kursk offensive ultimately has no bearing on the situation in Donetsk and Zaporizhzhia. It is in these eastern and southern regions of Ukraine where the war’s outcome is likely to finally be settled.

Tyler Durden
Mon, 10/14/2024 – 02:45