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Pump-Prices Surge To 6-Month Highs Ahead Of CPI, Crude Inventories See Another Build

Pump-Prices Surge To 6-Month Highs Ahead Of CPI, Crude Inventories See Another Build

Crude prices slipped lower today (along with everything else around 10amET ish), but never recovered (unlike stocks), as  traders weighed prospects for a ceasefire in Gaza against ongoing risks to oil supplies in the Middle East.

“The Middle East remains a powder keg, but in terms of oil production, it has yet to explode,” Stephen Innes, managing partner at SPI Asset Management, told MarketWatch.

“While the potential for escalation is often discussed, it’s in no one’s best interest, despite recent attacks such as the one on the Iranian consulate.”

Additionally,a s MT Newswires reports, in its influential monthly Short-Term Energy Outlook, the Energy Information Administration lowered its 2024 demand-growth forecast to 0.95-million barrels per day, even as it raised its estimate for actual demand to 102.65-million bpd from its March estimate of 102.17-million bpd after revising its estimate of 2022 demand up by 0.8-million bpd.

“Although the revisions to historical consumption resulted in more forecast petroleum consumption, they also decreased demand growth in 2024 compared with our previous STEO,” the agency noted.

Expectations ahead of the API print were for a third straight weekly build in crude stocks (though only marginal)…

API

  • Crude +3.03mm (+800k exp)

  • Cushing

  • Gasoline (-1.4mm exp)

  • Distillates (-600k exp)

Crude stocks rose for the third straight week…

Source: Bloomberg

WTI was hovering around $85.35 ahead of the API print and inched lower on the build…

Meanwhile, pump-prices continue to rise, as we expected, tracking wholesale gasoline prices higher…

Source: Bloomberg

…not exactly painting an optimistic picture for tomorrow’s CPI print with the highest pump-prices in six-months…

Source: Bloomberg

But hey, Bostic said everything would be fine, right? Right!

Tyler Durden
Tue, 04/09/2024 – 16:40

Is The Great Illusion In Ruins?

Is The Great Illusion In Ruins?

Authored by Victor Davis Hanson,

In 2021, Joe Biden was elected after a bitterly fought campaign that deposed the incumbent Donald Trump. Democrats eventually captured, for a time, both the House and Senate, ensuring the most left-wing government in modern American history.

Americans were then set to witness a great experiment.

For the first time in their lives, a truly radical socialist program would supposedly fundamentally transform the way America dealt with the border, immigration, the economy, race relations, foreign policy, energy, law enforcement, crime, education, and social questions such as religion, gender, abortion, and schooling.

In a sense, we were all to be lab rats of sorts, to be experimented on by the radical left and their various critical theories. Now in the last year of the Biden term, we can see the results of that experiment—and the unfortunate disasters that followed.

But first, how was such a radical move to the left even possible in a center-right America?

The Democratic nominee, Biden, had earlier united the left, but only through a Faustian deal. The handlers of a nearly non compos mentis Biden had ushered all his 2020 primary rivals out of the primary races in unison.

But in exchange for their exits that ensured Biden the nomination, the left took over his general campaign—in which Biden was virtually relegated to his basement—and then set his agenda.

Who was running things?

The mysterious architects of White House ideology included, inter alia, the omnipresent, now-Washington-DC-dwelling Obamas, the old socialist gadfly Bernie Sanders, the fossilized tribunes of the black and Latino congressional caucuses, the DEI firebrand Squad, and the neo-socialist scold Elizabeth Warren.

As a result, for one of the few times in American history, the hard left now had undreamt of power. And it was enhanced by a chorus in our compliant media, academia, corporations, the administrative state, foundations, entertainment, and popular culture.

So we were all to embark on a great adventure led by the foot soldiers of DEI, the Chicken-Little green extremists, the critical race and critical legal theory crowd, the modern monetary theorists, the woke commissars, the transgendered zealots, Antifa, BLM, the hate-Israel lobby, and the Trump Derangement Syndrome media sorts.

Ostensibly, America was to be reset financially, economically, socially, culturally, militarily, and politically. The nation would be arbitrarily divided into oppressors and oppressed—with one caveat: hyper-rich, left-wing white architects had to be exempt from the damage inflicted on those they targeted. Thus, like Orwellian pigs who walked on their two hind legs, they were free to fly their private jets, get their kids into racially quota-bound Ivy League schools, burn lots of fossil fuels to heat and cool their massive homes, and be protected by their walls, security details, and zip codes from the crime wave they would soon unleash on others.

Now, as we enter the fourth year of the great experiment, America is $35 trillion in debt, borrowing $1 trillion every 100 days. Home mortgages are at 7 percent. Key prices for food, insurance, rent, and fuels are 30-40 percent higher than when Biden entered office.

The nation has been humiliated and emasculated abroad. Racial relations are the worst in a half-century. The military is in virtual receivership. Biden is polling about 40 percent approval and is behind in key swing states in most of the 2024 polls.

As a result, the Biden administration is furiously trying to find a way to release more of its hated oil and natural gas on the world market. It stopped refilling the strategic petroleum reserve that it had earlier drained to lower gas prices before the 2022 midterms.

So it will quietly pump more oil and gas, appease Iran in fear of a war in the oil-producing Middle East, plead with the once “pariah” Saudis, and order the Ukrainians not to hit Russian oil installations—all to get more oil produced to lower November 2024 gas prices.

It will head nod to eliminating fossil fuels, mandating EVs, banning natural gas stoves, and subsidizing more inefficient wind and solar farms. But it now realizes that its green agenda on its watch will wreck the United States economy and throw the left out of power. So it pivots to an old-fashioned “Drill, World, Drill” mantra—at least until the election is over.

Biden fulfilled his agenda of getting 10 million illegal aliens into the United States by destroying the southern border. The point was to swarm America with poor, unaudited migrants, all in need of massive federal and state assistance, all supposedly now loyal to their entitlement benefactors. Who could stop them from voting as repayment to their enablers in the new age of 70 percent mail-in ballots, same-day registration, inadequate authentication and audit of ballots, third-party vote harvesting, ballot curing, and Zuckbucks pouring into key precincts to absorb the work of the registrars?

Most of the illegals went to Texas and Florida, key swing states that the left still thinks it can flip to blue status.

Long term, the 10 million will recalibrate congressional districts to favor neo-socialist agendas. Short-term, millions of new arrivals unlawfully may still try to vote in 2024.

Any who object to or publicize this agenda will be dammed with boilerplate smears of “election deniers,” “voter suppressions,” “racists,” and “xenophobes.” Yet all that said, the administration is now desperately trying to distance itself from its greatest “new Democratic Majority” border success, given that public opinion abhors what Biden had done at the border to the country at large.

So it floated a phony “bipartisan border security” bill in hopes of luring naïve Republicans to support a stealth de facto amnesty agenda that would have still allowed 5,000 illegals in a day rather than the now customary 10-15,000. The hope was that when it failed (and the left knew it would), to blame Republicans for what the left had wrought.

Biden knows destroying the border will ruin America for generations to come, costing billions of dollars in subsidies and legal and policing costs to integrate the massive influx. So until the election, it is thrashing about, claiming that it never did such a thing at all. Its duplicity is again proof that the open borders agenda was hated by the public, a human catastrophe, and not sustainable before an impending election.

Biden’s foreign policy is also in ruins.

Biden destroyed deterrence in an effort to beg, appease, and buy off America’s enemies to behave and not cause an election-losing war. But the more it fled from Afghanistan in humiliation, the more it appeased Russia as it massed on Ukraine’s border, the more it snored as a Chinese spy balloon traversed the United States, the more it put early holds on aid to Ukraine, the more it assured Putin a “minor” offensive into Ukraine would not elicit a US response, so all the more it convinced Putin that he could take Ukraine without an American pushback, the Chinese to threaten Taiwan, and Hamas to prepare for massacring Jews.

So here we are in Ukraine with nearly 800,000 dead, wounded, and missing Ukrainians and Russians.

The administration has no clue how to stop the Verdun that its appeasement birthed. The entire therapeutic approach to foreign policy lies in ruins.

Ditto the Middle East. National security advisor Jack Sullivan’s “quiet” portfolio that he inherited from the Trump administration simply blew up. Biden is now scrambling to stop the Israeli response to the encircled Hamas remnants, trapped in their last redoubt in Rafah.

Biden is now replaying the 1950s CIA-stereotype of the “Ugly American,” as he does his best to overthrow the Netanyahu government, and to allow the trapped Hamas remnants to escape and claim they defeated the Zionist entity, despite butchering more Jews in a single day than any time since the Holocaust. No matter: the Biden administration is stealthily communicating with the Israeli opposition concerning the best joint strategies to force Netanyahu out. Mass protests in the streets of Tel Aviv attest to the success of destabilizing the current Israeli government.

Team Biden whispers to the media about slow-walking or stopping key arms shipments, abdicating America’s once protective role in the UN, or encouraging the “international community” to go after Netanyahu for “war crimes” for accidentally hitting a civilian team in Gaza. (By such logic, are Biden and Gen. Mark (“righteous strike”) Milley equally culpable for being in charge when a US strike in Kabul blew up 10 innocent civilians by similarly mistaken targeting?). Meanwhile, Biden keeps courting Muslim-American Michigan voters, who repay his appeasement with cries of “Death to Israel! Death to America!”.

The release of violent criminals and an uptick in property crimes, murders and assault follow a similar script. The Biden administration outsourced criminal justice to defund the police/critical legal theorists at the federal, state, and local levels. No bail arrests led to violent offenders released the next day. Thousands were let go from jails and prisons.

The word spread in the criminal community that in the new Biden years, there were no real consequences, no serious punishments for violent assault or major felonies.

So in 2021-2023, crime exploded. When it reached the point of making life unlivable in the major cities and began to max out, the administration declared “crime is declining”—in the same way that hyper-inflation supposedly did so on the economic front.

After spiking the prices of key food staples, insurance, fuel, and interest rates, such hikes could not go too much higher without destroying outright the American way of life. So as the rate of inflation slowed, Biden bragged about “lowering inflation”—but not the 30-40 percent higher food prices since his own inauguration.

The common denominator for these disasters is the embrace of left-wing “theory.”

Critical legal theory mandates that jurisprudence is a construct.

Laws have no morality since they favor the powerful. The latter use “white privilege” arbitrarily to invent crimes and punishments to protect their own power hierarchies. All that nonsense has now led to a pre-civilizational free-for-all in our dirty, dangerous, and dysfunctional cities.

Modern monetary theory – printing lots of money to spread around to those who have none while diminishing the value of money of those who have it – only led to hyperinflation and high interest rates.

When DEI theories were unleashed on the military, potential recruits hesitated, and thousands quit. After Pentagon grandees virtue signaled their fear of “white rage” and “white privilege,” after DEI made promotions and assessments often contingent on race, gender, and sexual orientation, and after the new military was humiliated in Afghanistan, it found it could no longer deter the enemy, recruit sufficient soldiers, or win back the confidence of the American people.

In all these cases, the woke genie left the bottle—and won’t go back in. So it will be hard for the administration to assure a long-suffering public that things are just wonderful, much less to reverse these policies, if indeed they are reversible, before November.

Expect instead nonstop distraction as the left beats the January 6 horse to death, calls for abortion on demand, and waits for its underling judges, prosecutors, and juries to jail or bankrupt Trump and therefore do what balloting cannot.

In other words, the long-awaited Great Fundamental Transformation finally got its moment, crashed, and now has torched the nation—middle-class Americans most of all.

Tyler Durden
Tue, 04/09/2024 – 16:20

Markets Suffer Conniptions Ahead Of Crucial Consumer Price Print

Markets Suffer Conniptions Ahead Of Crucial Consumer Price Print

Weird day… no macro, no FedSpeak, no notable geopolitical malarkey and yet, markets had a conniption (early on)…

VIX spiked up, modestly reminiscent of last Thursday’s manic episode (but we note that the market is implying just a +/-0.8/0.9% implied move in the S&P 500 to tomorrow’s close)…

Source: Bloomberg

Stocks puked early (and dip-buyers stepped in). With around 30 mins left in the day Fed’s Bostic said some shit and the market went into panic-bid mode. You decide if it made sense to rip higher:

  • *BOSTIC: IF JOB DATA SIGNALS PAIN TO COME, OPEN TO EARLIER CUTS

  • *BOSTIC: IF DISINFLATION PACE RESUMES, COULD PULL CUTS FORWARD

  • *BOSTIC: CPI COMING IN AT CONSENSUS WOULD BE WELCOME DEVELOPMENT

  • *BOSTIC: POSSIBLE MAY NEED TO DELAY CUTS “EVEN FURTHER OUT”

Seems like exactly more of the same ‘data-dependent’ crap from The Fed, but as you can see the algos loved it. That fit of buying lifted Small Caps and Nasdaq green (and S&P at the death)…

We note that 0-DTE traders were putting down-pressure on markets from the cash open (with heavy put-buying), then the early 0-DTE call-buyers capitulated (which snapped stocks lower around 1030ET). The rest of the day saw call-buyers return and 0-DTE flow flat on the put-side…

Source: SpotGamma

The basket of MAG7 stocks was monkey-hammered at around that time and never really recovered…

Source: Bloomberg

Also of note, AI stocks have gone nowhere (well they’ve gone down) for the last six weeks…

Source: Bloomberg

Of course, it didn’t help that Boeing shit the bed again on whistleblower warnings about the 787…

Away from stocks, crypto crashed with Bitcoin erasing all of yesterday’s gains and some…

Source: Bloomberg

Crude was clubbed like a baby seal after WTI tagged $87 to the tick overnight…

Source: Bloomberg

Amid all this, Treasuries were bid with the long-end modestly outperforming (30Y -6bps, 2Y -4.5bps). Yields are down notably from yesterday’s highs…

Source: Bloomberg

With the 30Y Yield having erased all of the post-payrolls spike now…

Source: Bloomberg

The dollar was weaker overnight but jumped higher as the market conniptions struck early on to end modestly higher…

Source: Bloomberg

But, amid all that, rate-cut expectations actually improved notably on the day…

Source: Bloomberg

Despite dollar gains, gold managed to hit new record highs once again at $2365…

Source: Bloomberg

Finally, for everyone anxious about a hot print tomorrow…

Source: Bloomberg

…there, that should help calm any fears.

Tyler Durden
Tue, 04/09/2024 – 16:00

‘Devout Catholic’ Biden Disagrees With Pope’s Declaration That Gender Ideology Is “Deeply Harmful”

‘Devout Catholic’ Biden Disagrees With Pope’s Declaration That Gender Ideology Is “Deeply Harmful”

Authored by Steve Watson via Modernity.news,

The White House quickly responded Monday following a declaration published by the Vatican that denounces ‘gender affirming’ surgery and gender ideology as “deeply harmful,” a “violation of human dignity,” and aimed at “eliminating the basis of family.”

The 20 page declaration approved by Pope Francis outlines that a person’s gender is a “gift from God” and that any attempt at gender reassignment infringes on God’s creation.

The document further asserts that attempts to introduce new rights in relation to gender theory in recent years have “led to instances of ideological colonization,” which the Catholic Church regards as “extremely dangerous.”

“Human life in all its dimensions, both physical and spiritual, is a gift from God. This gift is to be accepted with gratitude and placed at the service of the good,” the declaration states.

It continues,”Desiring a personal self-determination, as gender theory prescribes, apart from this fundamental truth that human life is a gift, amounts to a concession to the age-old temptation to make oneself God, entering into competition with the true God of love revealed to us in the Gospel.”

The push for allowing people to identify as any gender they choose, rather than accepting the gender given to them by God denies “the greatest possible difference that exists between living beings: sexual difference,” the Church further decrees, adding that modern gender ideology “envisages a society without sexual differences, thereby eliminating the anthropological basis of the family.”

The document further clarifies that it is not possible to “separate the masculine and the feminine from God’s work of creation, which is prior to all our decisions and experiences, and where biological elements exist which are impossible to ignore.”

The Church states that only in accepting the difference between genders “each person can fully discover themselves, their dignity, and their identity.”

“Creation is prior to us and must be received as a gift,” the document further asserts, adding “At the same time, we are called to protect our humanity, and this means, in the first place, accepting it and respecting it as it was created.”

Pope Francis previously described gender theory as an “ugly ideology of our times which cancels out the differences [in humanity] and makes everything the same.”

Responding to the declaration during a briefing, Biden press secretary Karine Jean-Pierre stated “We are pleased to see that the document… furthered the Vatican’s call to ensure that LGBTQ+ are protected from violence and imprisonment around the world. However, the president will continue to be an advocate for the rights, safety and dignity of the LGBTQ+ community, including transgender people here in the U.S.”

“What about the more specific comments about gender theory and transgender individuals?” a reporter pressed.

Jean-Pierre responded, “I can speak to the president’s stance, and he’s always been very clear on the importance of protecting or having protections for the transgender community and the broader LGBTQ+ community, and that’s been very clear since day one of his administration.”

Between this and declaring Easter Sunday Transgender day, many are now highly suspicious of Biden’s claim to be a ‘devout Catholic’.

*  *  *

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Tyler Durden
Tue, 04/09/2024 – 15:45

PAMP It: Costco Selling Up To $200 Million In Gold Bars Per Month, Wells Fargo Estimates

PAMP It: Costco Selling Up To $200 Million In Gold Bars Per Month, Wells Fargo Estimates

Last December, wholesale retailer Costco announced that they had sold over $100 million worth of gold in Q3 2023.

You’ve probably read about the fact that we’re selling one-ounce gold bars. We sold over $100 million of gold during the quarter,” sad CFO Richard Galenti.

Now, Wells Fargo estimates that Costco “may now be running at” $100 million to $200 million per month in gold sales.

“Our work suggests there has been significant interest given COST’s aggressive pricing and high level of customer trust,” said analyst Edward Kelly in a Tuesday note to clients. “The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST’s robust monthly eComm sales suggests a sharp uptick in momentum since the launch,CNBC reports.

Costco is selling one-ounce bars made of nearly pure 24-karat gold. While the price is not disclosed online to nonmembers, it’s estimated that the product generally sells for about 2% above the spot price, which as of Tuesday morning was around $2,357 an ounce. That would put the price at Costco just over $2,400.

Sales of Costco gold bars are now limited to five per customer (up from two), while executive members receive 2% back. Those who use their Citigroup credit cards will receive a further 2%.

“Pricing at that level and shipping costs suggests it’s a very low profit business at best,” wrote Kelly.

Spot prices for gold have notably been on a tear this year, rising over 13% YTD amid persistent inflation, nearly $35 trillion in national debt (and growing), and investor fears over the state of the ‘deteriorating US fiscal situation,’ according to the report. 

According to DataTrek co-founder Nicholas Colas, “The move suggests that many foreign governments feel the need to hedge geopolitical outcomes that might be negative catalysts for other risk assets like stocks.”

The only good news is that this reinforces the idea of gold as a reasonable hedge for diversified portfolios,” he added.

Tyler Durden
Tue, 04/09/2024 – 15:25

Trafigura Gets Bullish On Power Markets As Wall Street Joins The ‘Next Big Trade’

Trafigura Gets Bullish On Power Markets As Wall Street Joins The ‘Next Big Trade’

It’s becoming increasingly clear that cutting-edge chatbot providers and other AI and hyper-scaler businesses will require energy-intensive data centers to operate. This places a significant burden on an outdated electrical grid that desperately needs modernization. 

In last week’s note, “The Next AI Trade,” we explained that soaring power demand is not just AI-related; there are multiple drivers, including onshoring trends, electrification of transportation and buildings, extreme weather, and, of course, data center demand. We also provided several investment ideas on how to capitalize on powering up America for the digital age. 

“Every day, I’m surprised by how fast power consumption is growing,” One River CIO Eric Peters wrote in a recent note, adding, “Take any application, add AI, and you need 7x-50x the compute power. AI is a black hole; it’ll suck money out of everything else and into its vortex. The arms race between industry giants is a 20 on a scale of 1-10.” 

In addition to grid modernization efforts, we explained to readers in December 2020, “Buy Uranium: Is This The Beginning Of The Next ESG Craze.” This is because nuclear power is clean and reliable compared to unreliable solar and wind. The latest sign that a nuclear renaissance is just beginning was a report last month from the federal government about the first-ever restart of a US nuclear power plant in southwestern Michigan. 

Given all this, Wall Street is jumping on the bandwagon and seeing the same investment ideas as we see in the uranium industry and companies that will upgrade the power grid to handle EVs and AI data centers. 

Richard Holtum, Trafigura’s global head of gas, power, and renewables, is the most recent Wall Street analyst to recognize these emerging trends. On Tuesday, he told the audience at the Financial Times Commodities Global Summit in Lausanne, Switzerland, about his incredibly bullish views on power markets. 

“Electrification of the vehicle fleet, AI — all these things are massively power-intensive,” Holtum said. 

Across the world, traders are building out power desks from the US to Japan as regulated electricity markets open up, allowing traders from overseas to buy and sell physical units, according to Bloomberg. 

He said, “There’s a growing realization that the one piece that binds the traditional fossil and the energy transition is the electron,” adding, “As more and more grids get liberalized, the trading sphere gets even larger.” 

He also noted that the nuclear power industry in the US could tremendously benefit from soaring power demand. 

Last week, Patti Poppe, the chief executive officer of Pacific Gas & Electric, told a Stanford University forum that nuclear power should continue to be part of the state’s power generation mix as efforts to decarbonize the grid move forward.

And Morgan Stanley analyst Carlos De Alba recently conveyed his optimistic outlook for the US metals and mining sector because investment levels in the industry have reached their lowest level in decades. He believes the sector is poised for massive investments as reshoring rare earth mineral supply chains goes into overdrive. 

What’s clear is that electrifying the economy will require an upgraded grid to handle the new electrical load – and the most reliable form of clean energy to power it all is nuclear. 

Tyler Durden
Tue, 04/09/2024 – 13:35

Ugly 3Y Auction Tails The Most In Over A Year As Foreign Buyers Flee Ahead Of CPI

Ugly 3Y Auction Tails The Most In Over A Year As Foreign Buyers Flee Ahead Of CPI

The first coupon auction of the week and the month is in the history books and boy, was it ugly: maybe it was nerves ahead of tomorrow’s CPI, maybe it was the realization that there is a lot more where this came from. A LOT more.

With $58 billion in 3Y paper for sale today, tied for the biggest amount on record for sale in the tenor…

… the reception was anything but warm.

The high yield of today’s auction was 4.548%, up markedly from last month’s 4.256% and the highest since November’s 4.701%, the auction tailed the When Issued 4.528% by 2.0bps, which was not only the first tail after 3 stopping though auction, but the biggest tail since February 2023.

The bid to cover dropped to 2.50% from 2.60%; it was the lowest since December’s 2.42 and well below the six-auction average of 2.584%.

The internals were also ugly, with foreign demand fading as Indirects took down just 60.3%, the lowest since December’s 52.1 (and below the 62.3 recent average), leaving 20.4 to Directs, the most since December, and Dealers awarded 19.31T, the most since, you guessed it, December.

In response to the auction, yields – which were sliding all day in a flight to safety as stocks dumped – moved higher by about 2 bps although remained near session lows amid the general selling everywhere else.

That said, if tomorrow’s CPI ends up being hot again, watch out below as all of today’s buyers end up being deeply underwater in less than 24 hours.

Tyler Durden
Tue, 04/09/2024 – 13:29

Musk Says Starlink Will Be Free For Brazil Schools If Government Cancels Contract

Musk Says Starlink Will Be Free For Brazil Schools If Government Cancels Contract

Authored by Stephen Katte via The Epoch Times (emphasis ours),

SpaceX CEO Elon Musk has said he will provide Starlink services free of charge for schools in Brazil if the government chooses to follow through and cancel a contract for the service in the country.

Many schools in Brazil have reported using the company to provide internet access to their citizens. Starlink terminals connect to the company’s satellites in low Earth orbit and provide high-speed communications.

Brazil’s government has reportedly announced plans to suspend all contracts with Starlink. Prompting Mr. Musk to offer the service free of charge.

Starlink will provide free Internet for schools in Brazil if the government won’t honor their contract,” he said in an April 8 social media post.

The moves come amid a growing stoush between social media company X, also owned by Mr. Musk, and the Brazilian government.

According to an April 6 post on the platform, the global affairs team announced they were being “forced by court decisions to block certain popular accounts in Brazil.”

We do not know the reasons these blocking orders have been issued. We do not know which posts are alleged to violate the law. We are prohibited from saying which court or judge issued the order, or on what grounds,” the post said. 

The global affairs team claimed the company had been threatened with fines if they didn’t comply with the order. They also said they were unable to provide a list of which accounts were impacted.

“We believe that such orders are not in accordance with the Marco Civil da Internet or the Brazilian Federal Constitution, and we challenge the orders legally where possible,” the post from the global affairs team said.

The people of Brazil, regardless of their political beliefs, are entitled to freedom of speech, due process, and transparency from their own authorities.

The announcement came after a report by investigative journalist Michael Shellenberger and colleagues David Ágape and Eli Vieira, titled “Twitter Files Brazil.”

Mr. Shellenberger said that sitting members of Brazil’s Congress and journalists were among those named by Brazil’s highest court for censorship. He has shared his findings on X.

Mr. Musk announced soon after he had removed all content restrictions in Brazil in defiance of the order.

As a result, Brazilian Supreme Court Justice Alexandre de Moraes opened a probe into Mr. Musk for alleged obstruction of justice after he challenged a court order requiring the removal of certain X accounts.

In his decision on April 7, Justice de Moraes said Mr. Musk will be probed for alleged obstruction of justice, criminal organization, and incitement.

Mr. Musk has made serious allegations of corruption against Justice de Moraes and Brazilian President Luiz Inácio Lula da Silva. In a follow-up April 8 post, Mr. Musk claims that events have since escalated and all Twitter Brazil employees are in danger of arrest. Once safe, he will release the information proving his allegations.

“We need to get our employees in Brazil to a safe place or otherwise not in a position of responsibility, then we will do a full data dump,” he said. 

“They have been told they will be arrested. Save the Brazilian X employees.”

Tyler Durden
Tue, 04/09/2024 – 13:15

Boeing Shares Tumble After NYT Reveals Whistle-Blower Report On 787 Dreamliner Fuselage Flaws

Boeing Shares Tumble After NYT Reveals Whistle-Blower Report On 787 Dreamliner Fuselage Flaws

Shares of Boeing are moving lower in early afternoon trade following a report from The New York Times of an engineer at the airplane manufacturer turned whistle-blower, revealing that sections of the 787 Dreamliner fuselage are improperly fastened together, posing structural integrity risks.  

Sam Salehpour, who worked on the 787 Dreamliner fuselage for more than a decade, detailed to NYT in a series of interviews that were packaged into documents and sent to the Federal Aviation Administration that the widebody plane is produced in several large sections by different manufacturers, and not all pieces were the same shape when they were fitted together. He said this could create structural issues over time. 

On April 17, Senator Richard Blumenthal, a Democrat of Connecticut and the chairman of the Senate Homeland Security and Governmental Affairs Committee’s investigations subcommittee, will hold a hearing featuring Salehpour to address his concerns about the 787 Dreamliner. 

“Repeated, shocking allegations about Boeing’s manufacturing failings point to an appalling absence of safety culture and practices — where profit is prioritized over everything else,” Blumenthal said in a statement. 

Recall, in 2014, an Al Jazeera undercover report found that workers at the 787 factory in South Carolina were not confident in the plane’s manufacturing quality, with at least one worker callin it “f**king sh*t.” 

“This is the culture that Boeing has allowed to exist,” Katz said, adding, “This is a culture that prioritizes production of planes and pushes them off the line even when there are serious concerns about the structural integrity of those planes and their production process.”

Boeing responded to the NYT report and said it was “fully confident in the 787 Dreamliner,” adding, “These claims about the structural integrity of the 787 are inaccurate and do not represent the comprehensive work Boeing has done to ensure the quality and long-term safety of the aircraft.”

Investors were spooked by the report, which is yet another issue for Boeing. Shares in New York tumbled 2% around noon. 

Salehpour’s allegations are yet more problems for Boeing after a door plug ripped off an Alaska Airlines 737 Max in early January. Since then, other issues have plagued Boeing jets across US carriers. The Justice Department has begun a criminal investigation into Boeing jets, and the CEO, Dave Calhoun, recently announced that he will step down later this year. 

Tyler Durden
Tue, 04/09/2024 – 13:00

Norfolk Southern To Pay $600 Million To East Palestine Over Toxic Train Derailment

Norfolk Southern To Pay $600 Million To East Palestine Over Toxic Train Derailment

Norfolk Southern has agreed to pay $600 million to settle a class-action lawsuit over the toxic train derailment in February 2023 in eastern Ohio, causing nearly half of the town’s population to evacuate.

The agreement, which is pending court approval, would resolve all class action claims from within a 20-mile radius from the derailment – and for residents who agree to the settlement, personal injury claims within a 10-mile radius from the derailment, the Daily Mail reports.

Following the derailment, which spilled more than a million gallons of hazardous materials and pollutants, residents reported various health problems, including rashes, headaches, and other issues.

The Feb. 3 derailment triggered officials to initiate a controlled release and burn of various chemicals as they cited concerns that those materials would explode and send out deadly shrapnel. Chemicals carried on the Norfolk Southern-operated train include toxic vinyl chloride gas, which was vented and burned, releasing a large cloud of black smoke that hung over the area for days.

Other chemicals carried on the train include butyl acrylate, ethylene glycol monobutyl ether acetate, and 2-ethylhexyl acrylate, the U.S. Environmental Protection Agency said (pdf).

On top of that, the federal response to the disaster was a complete debacle, with FEMA denying a request for federal assistance, Transportation Secretary Pete Buttigieg blaming the Trump administration for the disaster, and during the class-action litigation – the NTSB tried to block a 3rd party examination of the evidence. Meanwhile, a mobile lab of scientists at Texas A&M University and Carnegie Mellon discovered a chemical known as ‘acrolein’ in the air – a clear, colorless gas or a pale yellow, strong-smelling liquid which causes inflammation and irritation of the skin, respiratory tract and mucus membranes. Inhalation of the chemical can cause delayed pulmonary edema — excess fluid in the lungs. This can lead to coughs, chest pain and fatigue, the Mail reports.

That said, last week federal officials announced that the aftermath of the train derailment doesn’t qualify as a public health emergency because widespread health problems and ongoing chemical exposures haven’t been documented, the Mail continues.

The Environmental Protection Agency never approved that designation after the February 2023 Norfolk Southern derailment even though the disaster forced the evacuation of half the town of East Palestine and generated many fears about potential long-term health consequences of the chemicals that spilled and burned. The contamination concerns were exacerbated by the decision to blow open five tank cars filled with vinyl chloride and burn that toxic chemical three days after the derailment. -Daily Mail

That said, the head of the NTSB said recently that her agency’s investigation showed that the ‘vent and burn’ of the vinyl chloride was unnecessary because the company that produced it was confident that no dangerous chemical reaction would occur in the tank cars. Officials who made the decision to blow the cars say they were never told that. The results of the NTSB’s full investigation will be complete in June.

As part of the settlement, the company will not admit any liability or wrongdoing, but will provide compensation “for past, present and future personal injuries resulting from exposure to the chemicals involved,” said the lawyers for the plaintiffs in a joint statement.

The settlement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later this month, with payments to class members beginning as soon as the end of the year, subject to final court approval.

“This resolution comes shortly after the one-year anniversary of the disaster and will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals,” said lawyers for Norfolk Southern.

Last year, the company agreed to compensate homeowners around East Palestine who have had to unload their homes at a reduced value. Norfolk has already spent over $1.1 billion on the response to the derailment.

 

Tyler Durden
Tue, 04/09/2024 – 12:45