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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (136199)10/21/2017 2:56:29 AM
From: John Pitera1 Recommendation

Recommended By
dvdw©

  Read Replies (1) | Respond to of 217588
 
John Murphy has some good analysis today...

BOND YIELDS GAP HIGHER AND NEAR UPSIDE BREAKOUT -- THAT'S HELPING PUSH FINANCIAL SPDR TO NEW RECORD -- BANKS AND INSURERS ARE LEADING XLF HIGHER -- INDUSTRIAL SPDR ALSO NEARS NEW RECORD WITH HELP FROM TRANSPORTS -- MATERIAL SPDR NEARS NEW RECORD -- A RISING DOLLAR IS HURTING GOLD -- COPPER SHARES ARE DOING BETTER THAN GOLD MINERS IN RISING RATE ENVIRONMENT

By John Murphy

UPSIDE BREAKONT IN BOND YIELDS MAY BE IMMINENT... Bonds yields are jumping again today. That may be based on increased chances for a tax reform package. Chart 1 shows the 10-Year Treasury Yield ($TNX) gapping 6 basis points higher in Friday trading. That puts the TNX within striking distance of overhead resistance near 2.40%. An upside breakout is not only likely, but appears imminent. That's pushing Treasury bond prices sharply lower today, and is weakening stocks tied to bonds like utilities and REITS. Defensive consumer staples are also losing ground. [The stock/bond (SPY/TLT) ratio that I showed on Wednesday is also in record territory]. Money is moving into economically-sensitive stocks that do better in a stronger economy. That includes consumer cyclicals, materials, industrials (including transports) and small caps -- all of which are leading today's stock rally. Not surprisingly, financials are the day's standout performers.

(click to view a live version of this chart)
Chart 1

FINANCIAL SPDR HITS NEW RECORD ... Financials are usually the biggest beneficiaries of rising bond yields. And that's certainly the case today. Chart 2 shows the Financial Sector SPDR (XLF) gapping into record territory. The XLF is the day's strongest sector. Banks are leading it higher. Chart 3 shows the S&P Bank SPDR (KBE) gapping up to the highest level in nearly eight months. Insurance stocks are also having a strong week. Chart 4 shows U.S. Insurance iShares (IAK) achieving a bullish breakout into record territory. Financial shares usually do better in a stronger economy. So do other economically-sensitive stocks.

(click to view a live version of this chart)
Chart 2

(click to view a live version of this chart)
Chart 3

(click to view a live version of this chart)
Chart 4

TRANSPORTS HELP LEAD INDUSTRIAL SECTOR HIGHER... The daily bars in Chart 5 shows the Industrial SPDR (XLI)on the verge of hitting a new record. That economically-sensitive sector has also helped lead the market rally since the start of September. That's shown by the rising gray line which is a ratio of the XLI divided by the S&P 500. As I've explained in several previous messages, the XLI includes transportation stocks which have also been helping lead that sector higher. The lower box in Chart 4 shows the Dow Transports also nearing a new record (and helping lead today's rally). Two of today's top percentage gainers in the XLI are CSX and J.B. Hunt (JBHT) which are transportation stocks. Rails and truckers have been among the strongest groups in the TRAN and the XLI. Both groups usually do better in a strengthening economy.

(click to view a live version of this chart)
Chart 5

MATERIALS ALSO NEAR NEW RECORD... Materials are also one the day's stronger sectors. That makes sense considering that rising material shares suggest a stronger economy. The fact that so many of them are tied to commodity prices also hints at higher inflation. Both are consistent with rising interest rates. Chart 6 shows the Materials SPDR (XLB) nearing a new record. It's recent leadership can be seen by the rising gray line (the XLB/SPX ratio). Today's XLB bounce is being led by aluminum and steel stocks. Copper shares have also been rising. By contrast, gold shares are lagging behind (more on that shortly). That also makes sense. Gold doesn't do well when rates are rising. That's especially true with rising U.S. rates are boosting the dollar.

(click to view a live version of this chart)
Chart 6

BOUNCING DOLLAR HURTS GOLD -- RISING RATES BOOST COPPER SHARES... The fact that U.S. rates are rising faster than elsewhere on the globe is boosting the dollar. A rising dollar usually hurts the price of gold. And it is. Chart 7 shows the upturn in the Dollar Index (UUP) near the start of September (when Treasury yields turned up) coinciding with a decline in gold (GLD). It also makes economic sense that a stronger global economy would favor stocks tied to industrial metals (like aluminum, copper, and steel) over gold. And that is certainly the case. The rising brown line in Chart 8 is a ratio of the copper miners ETF (COPX) divided by gold miners (GDX). The ratio recently hit a new high for the year (thanks to a three-year high in the price of copper). Notice how closely the copper/gold mining ratio has tracked the 10-Year Treasury yield (green line). The fact that both lines are rising together is a vote of confidence in the global economy.

(click to view a live version of this chart)
Chart 7

(click to view a live version of this chart)
Chart 8

-------------------------------------------------------------------

Equity Markets1. We’ve had a bit of volatility in the stock market since yesterday, with much of it outside of the US trading hours. It started with the Catalonia crisis and ended with the Senate passing the budget proposal.





Source: BBC; Read full article




Source: WSJ.com; Read full article



Here are the VIX futures.




2. Shares of US homebuilders are soaring despite the slowing residential construction activity. Here is the relative performance versus the S&P 500.




This chart compares the share prices with housing starts and building permits.


Source: @bespokeinvest; Read full article

---------------------------

5. Goldman’s price-to-book premium to Morgan Stanley is gone (for now).


Source: WSJ.com, h/t Paul Menestrier; Read full article



6. Is (sleepy) IBM finally waking up?


Further reading



7. Trading volumes in the US and Europe have slipped in recent months.


Source: WSJ.com; Read full article



8. Mutual fund fees continue to shrink.


Source: @gadfly; Read full article



9. This chart shows the Dow Jones index average daily moves for each year since 1900.


Source: @bespokeinvest



10. Below we have the relative valuations of European, US, and Emerging Market equities.


Source: @IIF

---------------------------

AlternativesQuant funds are underperforming, but fundraising doesn’t appear to be a problem.


------------------------------

Credit1. Puerto Rico’s general obligation debt continues to deteriorate.




2. Kobe Steel’s credit default swap spread has stabilized – for now.




3. Bombardier’s bonds rally after the Airbus tie-up, as the US protectionist move backfires ( see story).


Source: WSJ.com, h/t Paul Menestrier; Read full article



4. This chart shows the percentage of M&A leveraged loans with leverage in excess of 6x.

clearly the animal spirits are inducing the investment shops to crank up the leverage on deals.


Source: @theleadleft, @stevemillerFFD



5. Corporate yield curves are flattening with Treasuries. ---- is this the behavior that occurs towards

the ending of a cycle?? I/m not sure. The slope of the yield curve, the absolute levels of all

interest rates along the curve and the interest rate differentials between the USD and the major

currencies are going to turn into the big story of 2018.... mark my words.... It may take until Q2 or Q3 but

these differentials and a rising rate global rate environment is going to have an impact on stock valuations.


Source: @tracyalloway

-----------------------------------

CommoditiesIt’s hot chocolate season. Lower inventories and expectations for higher demand in the US resulted in the cocoa futures’ bounce from the lows.




Back to Index



Energy Markets1. The latest decline in US oil output was also weather related – this time it was Hurricane Nate (supposedly).




2. This chart shows the yearly changes in US crude oil inventories.


Source: @JKempEnergy



3. The Saudis are losing export market share both in the US and in China.


Source: @JavierBlas2

Saudi Arabia is playing a diminishing role in terms of the % of oil imports that are going into

China, Russia is sending more crude and natural Gas into China, Pac Rim countries have expanded

there inputs, and the US has ramped up production.


Source: WSJ.com, h/t Paul Menestrier; Read full article



4. Here is the latest projection of US natural gas usage by sector.


Source: WSJ.com, h/t Paul Menestrier; Read full article

--------------------------------------------------------

apan1. Economists expect the BoJ’s securities purchases to keep declining, as yield targeting turns into a form of QE tapering. That is the global theme all global central banks have ended liquidity additions and are tightening

monetary policy. THIS IS A BIG DEAL IN THE BIG PICTURE!!!!!!!!


Source: Capital Economics



2. Japanese shares have decoupled from the dollar-yen exchange rate.


Source: @topdowncharts; Read full article



3. The expected consumption tax hike (in 2019) will do significant damage to the economy.


Source: Capital Economics

JJP



To: elmatador who wrote (136199)10/21/2017 5:17:33 AM
From: TobagoJack  Read Replies (1) | Respond to of 217588
 
re <<ANT and I have kept an eye on China food because Brazil is a food exporter. Even is China GDP slows down it won't dampen China's appetite for imported food.>>

... oh, ... best to stop with the cnbc spin, for it is worse than worthless and points diametrically the wrong way, iow, you can do a better job.

best instead to wager on china being a net food and energy and solutions exporter, by using not much imagination, then devoting imagination to the other way around

re <<because Brazil is a food exporter>>

yes, and china forgot more about agriculture than brazil ever could know

re <<... China ... needs the rest of the world to keep them fed. Which is normal. Countries can't be self sufficient in everything.>>


... china needs trade partners, that which is voluntary, which is normal, except when practiced by barrel of guns, and why would anyone want to be self sufficient anyway? But, okay, staples, maybe, if not addressable by inventory during short emergencies. You think Brazil can and would cut off china food supply?





for the same reasons china shall have the capability and capacity to tee-up 250 Trillion dollars of collateral-good fiat money is the same for why food security is merely another imperative w/ readying solutions

only people without imperatives, and we must feel sorry for them, are unable to imagine the work-arounds

... and history matters <<China has a long legacy of taming the environment. Two millennia ago, huge swaths of the Turpan basin, the hottest and driest region of what is modern-day China, were transformed into verdant pasture via a network of deep karez wells stretching over 5,000 km.>>

time.com

China May Not Have Enough Arable Land to Feed Its People. But Big Changes Are Coming



The character that adorns Liu Chengbao’s gateposts means “good luck.” Not that he’s seen much of that recently. Rising at 6 a.m. each day, Liu leaves his wife and father in his self-built, four-room house and trudges toward the terraced foothills of northern China’s Six Ring Mountains. The 51-year-old ekes out a living by growing corn and potatoes on his 0.65 hectares of land in Gansu — a dumbbell-shaped province roughly the size of California and famed for its kaleidoscope-colored mountains of blue, yellow and crimson ribbons. Only 300 people remain in Wang Meng village, where Liu lives, and no one is particularly sprightly — young people leave ever earlier these days. “I’m too old to get a job the city,” says Liu, “I don’t have the strength.”

Each year, Liu takes home around $1,500, which just about pays for his two children’s higher education in Lanzhou, Gansu’s sprawling capital. He has no savings. Other than his crops, he raises two cows and tends a small patch of vegetables. “We only eat meat at Spring Festival [Chinese New Year],” he says. When he’s not farming, Liu earns $15 a day as a local construction worker, carrying sticks or mixing concrete. Like all his neighbors, he uses pesticides and fertilizer on his fields. “It makes the yield better,” Liu says, “but I use less on the vegetables that we eat ourselves.”

Read More: These 5 Facts Explain China’s Coming Challenges

China’s food security relies on farmers like Liu — and it’s increasingly unsustainable. The nation of 1.3 billion accounts for almost a fifth of the world’s population, yet boasts just 7% of arable land. Moderate to severe soil degradation affects more than 40% of the country, exacerbated by overuse of fertilizer, intensive grazing and the reliance on biomass for rural energy. While China’s belching factories hog the headlines, experts say agriculture rather than industry exerts the biggest toll on the environment.

The effect is a downward spiral: poverty and land degradation feed each other. Last year, China produced 600 million tonnes of food — the 12th straight annual rise. But over the next three decades some 300 million Chinese are expected to abandon once productive fields for jobs in the city. Valuable arable land is gnawed away to build urban clusters, where the consumption of meat, grain and diary products is far higher. The average Chinese now eats 63 kg of meat a year, with an additional 30 kg per person expected by 2030. Already, 70% of China’s corn is used to feed livestock rather than the populace.

Faced with this growing crisis, the Chinese Communist Party (CCP) has been taking drastic steps to safeguard the nation’s food security. Significant acquisitions have been made overseas, including Australia’s largest dairy, over 324,000 hectares of farmland in Argentina and soybean-processing plants worth several billion dollars in Brazil. At home, tax has been reintroduced on fertilizers and pesticides and the series of incentives and subsidies that benefit farmers like Liu have been rejigged. Crops that are ecologically taxing, unprofitable and suffer from overcapacity — like maize — will have government support slashed, but those that are in demand and locally sustainable — soya, for example — will have inducements enhanced. It’s a revolution with serious risks for the legitimacy of the CCP should food prices soar and farmers struggle to make ends meet. “There could be massive social unrest if they screw up the agriculture industry,” says Erlend Ek, an agriculture expert at the China Policy research firm. “There hasn’t been this big of a change maybe since the Great Leap Forward.”

Read More: China's Genetically Altered Food Boom

That catastrophic industrial experiment, instigated by Mao Zedong in the late 1950s, lies at the root of China’s current food-security woes. The Great Leap Forward was an attempt to modernize Chinese industry by abolishing private property and grouping workers into communes. But following the death by starvation of 30 million people, the forced collectivization of land was rolled back and families were bequeathed a small plot — typically 0.65 hectares, like Liu’s — to farm and feed themselves. Apart from a smattering of large, paramilitary-run state farms around the nation’s periphery, practically all of China’s tillable land remains divvied into these morsels. (By comparison, the average size of American farms is 179 hectares.)

“Chinese agriculture is effectively a cottage industry,” says Sun Chang, chairman of Black Soil group, which aims to modernize Chinese agriculture by consolidating these plots into larger farms. “China is so far behind the U.S., Australia or Europe because of unorganized, subscale farms with no scientific management."

Because of these inefficiencies, staple crops in China are on average two to three times more expensive to produce when compared with the U.S. Yet China is determined to stay largely self-sufficient. In Gansu province, alfalfa is being grown as a high-quality, ecologically sound substitute to traditional forage. In southern Guangdong province, huge vats of wriggling insects are being cultivated as a high-protein addition to animal feed that naturally boosts immunity, reducing the need for antibiotics. Scientists are breading tiny wasps called Trichogramma, which feed on the eggs of destructive pests, replacing toxic insecticides. In Jilin province, pigs are reared on a meter-thick bed of microbe-infused rice husk and sawmill, which turns their excrement into sweet-smelling compost for the fields. Most incredibly, salmon and trout are being farmed in the arid Gobi Desert.

Read More: You Won’t Believe the Source of the World’s Most Sustainable Salmon

In the specialist world of fish farming, Rustan Lindqvist is a proud maverick. The Swede grew up fishing for salmon and trout in the frigid rivers south of Gothenburg, then spent 25 years working in aquaculture across Scandinavia. In 2012, he chanced upon plans to open a recirculation aquaculture system (RAS) farm in China’s Xinjiang province — quite literally the farthest point on earth from any ocean. Instead of farming in a natural river or lake, RAS uses deep wells to fill large indoor tanks. Fish at staggered stages of maturation are kept under meticulously controlled conditions. No longer does success rely on a fickle climate. “I thought someone finally understands the full potential of the RAS system,” says Lindqvist, who became the architect of the project. “You can actually build it in the middle of the desert.”

China, Gansu province, near Lanshou, fields, loess plateau. Wolfgang Kaehler—LightRocket/Getty Images

China has a long legacy of taming the environment. Two millennia ago, huge swaths of the Turpan basin, the hottest and driest region of what is modern-day China, were transformed into verdant pasture via a network of deep karez wells stretching over 5,000 km. Reforestation has also taken root due to the Yellow River Loess Plateau Watershed Rehabilitation Project. Launched by the World Bank in 2004, it has turned some of northwest China’s most degraded land productive again. The area is home to 50 million people and gets its name from the loess soil — a nutrient-rich though dusty composition that is inordinately prone to erosion when stripped of vegetation. And that is exactly what centuries of ever-swelling herds of free-grazing goats and sheep has wrought — transforming once lush hill and vale into a rippled sandpit.

Following three years of observation and consultation, scientists partnered with the local community to end free-grazing practices. Livestock was confined to pens and soil erosion arrested by forming reservoirs and terracing shallow slopes for crops, with fruit trees on steeper inclines. Ownership rights were enshrined for local participants, thus ensuring the continued maintenance of rehabilitated land. “This is transformation and change on a landscape about the size of France,” says Juergen Voegele, the project’s former task team leader for the World Bank.

Read More: The Environment Is the Silent Casualty of Beijing’s Ambitions in the South China Sea

Similar tactics are now being replicated all over China, boosting the quantity of so-called high-quality farmland. Currently, these prime fields comprise 30.4 million hectares, and by 2020 the government wants to increase that to 53 million to 67 million hectares — around half of all arable land in the country. To increase efficiency, China is also drafting a rural-land contract law, which for the first time will allow farmers to legally lease their land to a larger, consolidated farm. Sun’s Black Soil group has two pilot projects over 750 sq km — the size of Singapore — in northern China’s Heilongjiang province and has eyes on expanding. “Farmers are essentially turned into workers,” says Sun. “They don’t have to worry about working capital, standards, seeds, chemicals, buying equipment, sales. Only by doing this can you ensure food safety.”

It’s an idea that appeals to Liu. “Most local farmers would like this plan,” he says, as an old man hauls a wooden donkey cart by hand nearby. “If farmers could be paid 100 yuan [$15] per day, including lunch, and stay on their land, I think they would agree.” Liu’s only concern is providing for his family. That must change. For China to safeguard its food security, farmers need the luxury of caring about what they put on the nation’s dinner tables.



To: elmatador who wrote (136199)10/21/2017 5:34:23 AM
From: TobagoJack  Read Replies (1) | Respond to of 217588
 
once china starts exporting energy to brazil i expect the trade equation to change, but even in the current circumstances, the equation looks sustainable

unclear in terms of your history-doesn't-matter 18th century 'dependency' equation whether the trade is advantageous, as if the equation matters, as long as it is voluntary

http://www.brazilgovnews.gov.br/news/2017/10/exports-to-china-boost-trade-balance

Exports to China boost trade balanceForeign TradeA long-standing trading partner, China has established itself as the most important market for Brazilian products. The country's interest in Brazilian raw materials has had a decisive role for Brazil's trade balance.

Brazil's foreign trade surplus is expected to end the year above US$ 60 billion, largely driven by trade with China. Exchanges with the Asian country added to US$ 18.2 billion in September, at least 30% of overall trade in year-to-date terms.

Brazil's best-selling product, crushed soybeans, has China as its main buyer: 78% of our crushed soybeans are sold to the country, representing US$ 18 billion of the US$ 23 billion exported to all countries in 2017.

It is another example of China's importance to the Brazilian trade balance. The country is among our largest importers and exporters, with soy, iron one, crude oil and pulp among the top exports on the Brazilian side.

On the other hand, most of our purchases from China are of technology-intensive products, such as printed circuits and telephone parts, receiver and transmitter parts and other manufactured goods.

Performance per block

China's overall trade importance also outstrips the flow of trade with important trade blocs, such as the European Union.

From January to September, Brazil-EU trade added to a US$ 2.04 billion surplus, driven mainly by soybean meal, iron ore, crushed soybeans and raw coffee.

In the case of the Southeast Asian bloc, which does not include China, the trade balance was of US$ 3.06 billion over the same period. Exchanges with neighbouring Mercosur countries, while higher (US$ 7.7 billion), are still far from Brazil's volume of trade with China.



To: elmatador who wrote (136199)10/21/2017 6:28:12 AM
From: TobagoJack  Respond to of 217588
 
re <<Brazil is a food exporter>>

am wondering how soon brazil would buy into quantum communication technology by way of importing a system that allows connectivity to a commercial system run from beijing

cost of system is coming down fast, and can be purchased w/ iron ore and soy bean for win win

you have a choice to make, either learn the new geewhizbangohwhoawee communication system installation and maintenance or revert to becoming a miner. i suppose can always grow soy. in any case, choose carefully

globaltimes.cn

Breakthrough coming in quantum tech soonChinese researchers will soon make a breakthrough in quantum communication, a senior university official said on Thursday, after the world's first 2,000-kilometer quantum communication line between Beijing and Shanghai went into operation in September.

The research team, led by Pan Jianwei from the Chinese Academy of Sciences, has continued deep research to optimize the transmission of the quantum communication line so that a jam will not occur when the number of users increases, said Xu Wu, Party chief of the University of Science and Technology of China based in Hefei, capital of East China's Anhui Province.

Due to the attenuation of optical fiber, relay stations are needed to extend the distance of quantum communication. There are more than 30 relay stations, with an average distance of about 80 kilometers between them, on the Beijing-Shanghai line.

The research team is working to extend the distance between two stations to 300 or 500 kilometers to cut the number of relay stations and consequently the overall cost, said Xu, one of more than 2,200 delegates attending the 19th National Congress of the Communist Party of China (CPC), which opened on Wednesday in Beijing.

A breakthrough will be made in this regard in the near future, said Xu, whose university is applying for the status of a national laboratory in the quantum field.

Quantum communication has ultra-high security. It is impossible to wiretap, intercept or crack the information transmitted through this means.

The Beijing-Shanghai quantum communication line is connected to the world's first quantum satellite, which was launched by China in August last year, through a station in Beijing.

Given that it is a new type of communication, the line's operation might encounter some problems. The team will solve the problems through research so that the line can better meet the needs of the country and users, said Xu.

Since the launch of the first quantum line between Beijing and Shanghai, Chinese scientists have also been planning to conduct quantum key distribution experiments with a ground station in other countries such as Austria, Germany and Italy. Ground stations in Germany and Italy will be ready by the end of 2017, Pan said in August.

The intercontinental experiment shows that the quantum satellite can work not only with Chinese facilities, but also with facilities in other countries and regions, Pan said.

His research team is looking to integrate quantum communications with the traditional fiber network to securely transmit information and make the technology more practical. Their longer-term aim is to set up a global quantum communications network.




To: elmatador who wrote (136199)10/22/2017 7:27:18 PM
From: TobagoJack  Respond to of 217588
 
more watch & brief

besides waiting on brazil to import communication technology Message 31314252 and engage w/ imported Message 31314228 energy Message 31315735 , am wondering brazil shall start to import ships and planes and jet engines and drones, and and and

popsci.com

China's stealth fighter may be getting a new engineRelying on Russian engines has put China at the mercy of a single, foreign supplier. That could be changing.



With its J-20 heavy fighter, China became the second nation in the world (after the USA) to field a fleet of stealthy fifth generation fighters. But until recently, there has been a key limitation for the J-20 heavy fighter, and Chinese aerospace in general: a reliance on foreign engines. That's looks to be changing, quickly.

Images that just surfaced online show a new-built J-20 with stealthy WS-10 turbofan engines, which are developed and manufactured in China. These engines are distinguished by their serrated afterburner nozzles and interior flaps for manipulating the exhaust flow.

Once these new J-20s enter service, China will have comprehensively mastered the major parts of fighter technology, including radars, stealthy fuselage, missiles, computers, and engines.

Both prototype and production models of the J-20 fighter currently rely on an advanced variant of the Russian Al-31 turbofan engine. Using this tech since the fighter's first flight in 2011 has put China at the mercy of a single, foreign supplier. But not for much longer, it seems.

Photos of the new Chinese J-20, production number "2021," reveal turbofan engines that clearly belong to the WS-10 Taihang (built by Shenyang Liming). Among the shared features are the semicircle of small flaps, vanes for controlling exhaust flows, on the inner nozzle, and wider afterburning, variable geometry petals. The Russian Salyut AL-31 does not have those features.

Additionally, the WS-10X (possibly officially designated WS-10G or WS-10IPE) has sawtoothed serrations on the edges of its afterburning nozzles, like the F-35's F119 engine. The sawtooth edges provide a gain in stealthiness, as they redirect radar waves away from the nozzles. (The straight edges on non-stealthy engines like the AL-31 are major contributors to the radar cross section of a fighter).

In addition to the gains in stealth, the WS-10X is believed to provide about 14-15 tons of thrust. This may be enough power to allow the J-20 to engage in low supersonic supercruise at Mach 1-1.2 speeds. The Eurofighter Typhoon has a similar low supercruise capability, which means it can hit supersonic speeds without using fuel-thirsty afterburners.

The gains in engine connect to broader news in materials. The Chengdu Aerospace Superalloy Technology Company, a privately held corporation, made a major breakthrough in superalloy research. CASTC, according to the Global Times and People's Daily, is producing world class single crystal turbine blades from rhenium-nickel superalloys; adding rhenium to nickel increases the superalloy's melting point, allowing for a hotter and more efficient engine. High rhenium content superalloys are used in light weight, high thrust engines like the F-22 Raptor's F109 turbofan. Previously, the development of Chinese engines like the WS-10 were delayed as they suffered from quality control issues regarding single crystal turbine blades. China's mastery of the rhenium superalloy (and by the private sector, no less) won't just help China build current fighter engines, but also quickly research more capable, higher tech models.



To: elmatador who wrote (136199)10/22/2017 7:31:18 PM
From: TobagoJack  Respond to of 217588
 
am wondering how many shiploads of soy beans a nuke reactor is going to cost

world-nuclear-news.org

Brazil and China enhance nuclear cooperation


A memorandum of understanding (MOU) to further promote cooperation in nuclear energy has been signed between China National Nuclear Corporation (CNNC) and Brazilian power company Eletrobras and its nuclear subsidiary Eletronuclear. The agreement covers the completion of Angra unit 3 and possible follow-up projects.


The signing of the MOU (Image: CNNC)


The MOU was signed on 1 September by CNNC board chairman Wang Shoujun, Eletrobras superintendent of foreign operations, Pedro Luiz de Oliveira Jatobá, and Eletronuclear CEO Bruno Campos Barretto. It was signed in Beijing during a meeting of Chinese President Xi Jinping and Brazilian President Michel Temer.

Eletrobras said the MOU creates "the opportunity for a deepening of bilateral cooperation for peaceful uses of nuclear energy, highlighting the common interests in establishing a future partnership for completion of Angra 3".

CNNC said it will work with Eletrobras and Eletronuclear to promote the construction of Angra 3 and future nuclear power plant projects.

Eletronuclear noted this is the third MOU it has signed with CNNC. In 2015, it signed one with CNNC and Eletrobras aimed at nuclear cooperation. In December 2016, Eletronuclear signed a bilateral MOU with CNNC to guide cooperation in the resumption of construction of Angra 3.

Construction of Angra 3 originally started in 1984 on a PWR designed by German company KWU, but this faltered two years later. At that stage some 70% of the plant's equipment was said to have already been purchased and delivered to the site. A return to construction was approved in 2007, and an industrial agreement for the unit's completion was signed with Areva in December 2008.

Two Brazilian consortia were awarded contracts, one for electro-mechanical assembly associated with the reactor’s primary system, the other for secondary-side work. However, following a corruption probe in mid-2015, Eletrobras suspended both contracts.

In March 2017, the government announced it planned to sell Angra 3 by 2018. The National Energy Policy Council in June this year reviewed ways to restart construction, but the government expects that it will take about five years and $2.9 billion to complete the unit.

Researched and written
by World Nuclear News



To: elmatador who wrote (136199)10/22/2017 7:42:32 PM
From: TobagoJack  Respond to of 217588
 
on top of food is important Message 31315725 , am guessing brazil shall be sending more iron to china per iron is also important

but less the shipping cost, as china seems on track to supply ever more duper-size bulk carriers to ship still-more iron

first there be the valemax en.wikipedia.org made in china for vale, and now there be the ore tianjin

that is a lot of soy beans, generating a lot of middle class somewhere, and benefiting small cabal of cronyism somewhere else, i guess

maritimeprofessional.com

China Launches World's Largest Bulk Carrier
By Aiswarya Lakshmi
September 24, 2017


China launched world's largest bulk carrier 'Ore Tianjin' in the port city Qingdao, east China's Shandong Province, reported China Daily.



The mammoth ore ship, built by the Wuhan subordinate of China Shipbuilding Industry Corporation (CSIC), can carry 400,000 metric ton deadweight (DWT). It will go into service for ore transportation between China and Brazil upon delivery, which is expected in April 2018.

At 362 meters long, 65 meters wide and 30.4 meters deep, and a deck equivalent to three soccer fields, it's 25 meters longer than the world's largest aircraft carrier USS Gerald R. Ford.

Considering the huge size of the ship, innovation has been made to ensure its safety, stability and its energy saving and environment-friendly properties.

Han Bing, general manager, Qingdao Beihai Shipbuilding Heavy Industry, quoted as saying: ""The safety of structure is the biggest challenge of building such a mega-size ore ship. So, we comprehensively optimized the structure of the ship compared with the first-generation ore ship."

The ship boasts seven cargo spaces and a reserved large fuel bunker, which will help it to transport bulk cargo as far as 25,500 nautical miles.

The ship is equipped with the High Voltage Shore Connection System (HVSC), which means no electric generator is needed when the ship berths at ports, achieving zero-emission at ports.



To: elmatador who wrote (136199)10/22/2017 7:55:08 PM
From: TobagoJack1 Recommendation

Recommended By
dvdw©

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hmmmnnnn, i guess sour-grapes suspect-media chimes in on win-win trading

strafor forgot to mention the beans going the other way - typical and expected

stratfor.com

China Makes a Power Play in Brazil and Argentina

The last two years have been hard on Argentina and Brazil. A sweeping corruption investigation and the impeachment of President Dilma Rousseff have sent Brazil's currency tumbling. The country's economy contracted by 3.8 percent in 2015 and by another 3.6 percent the following year. The Argentine peso, meanwhile, fell 40 percent against the U.S. dollar after the government lifted currency controls in late 2015. But for foreign investors, the two South American nations' economic hardship presents an opportunity. The depreciated currencies in both countries, combined with their governments' need for investment, has enabled Chinese companies to buy up cheap assets and launch major infrastructure projects in Argentina and Brazil alike. The electricity sector in particular has been a focus of their activities.

Power DownIn Brazil, the economic decline has hit the electricity sector hard, especially after years of government price controls. Rousseff passed a measure in 2012 forcing power companies in Brazil to lower their rates to renew their 30-year contracts with the government. Then a severe drought in 2013-15 diminished the country's water reservoirs, causing many power companies to switch from hydroelectric to thermoelectric energy. The transition was costly. State-owned energy firm Petroleo Brasileiro, for example, had to import 30 percent more natural gas from Bolivia in 2013 to fuel its thermoelectric plants. Most power companies had to sell off some of their assets to offset the added expense. Today, Brazil's electricity sector has the second-largest debt of any of its industries, behind oil and natural gas; its outstanding obligations surpassed $54 billion last year. President Michel Temer, however, is trying to change the country's regulatory framework to alleviate the power companies' troubles. Temer is working on a measure that would allow the firms to sell the electricity they generate to commercial customers, such as electricity trading companies or large industrial consumers, at a higher price for a limited time.

Price controls in Argentina, likewise, have hindered the country's electricity sector. The measures discouraged investment in power generation, and now Argentina lacks the infrastructure to handle peak demand. Buenos Aires had to import electricity from Uruguay and Brazil last summer to accommodate the spike in usage. Even so, Argentina experienced several power outages. The number of blackouts in the country, in fact, doubled between 2004 and 2014, according to Argentine electricity company Edesur. Electricity prices for energy providers also increased over a similar timeframe by over 400 percent. Yet prices for consumers rose just 10 percent. To remedy the sector's problems, which prompted the country's energy minister to declare a state of emergency in December 2015, President Mauricio Macri introduced an unpopular measure to raise consumer electricity rates — in some cases by over 300 percent.

Cashing InDespite the political steps they've taken to rehabilitate their decrepit electricity sectors, leaders in Brazil and Argentina understand that legislation can only do so much. To truly address the issue, they need money — and China is happy to oblige. Since 2015, Chinese companies have spent a total of $21 billion to purchase 21 Brazilian electricity companies. The transactions included an arrangement early this year in which the State Grid Corp. of China bought a majority stake in Brazil's third-largest power company, CFPL Energia, for $4.5 billion. State Grid already operates close to 10,000 kilometers (more than 6,000 miles) of power lines throughout Brazil. The Shanghai Electric Corp., meanwhile, is considering acquiring Brazilian power company Eletrosul for over $1 billion.

On top of that, China pitched in $15 billion for a joint investment fund that will finance energy projects in the country along with logistics, mining, technology and agribusiness ventures. (Beijing's partners, Brazilian Development Bank and Caixa Economica Federal, another Brazilian state-owned bank, will provide the other $5 billion.) The fund, which entered operation June 1, will pave the way for Chinese companies to win contracts for the infrastructure projects it finances, especially since most of Brazil's biggest engineering companies are wrapped up in the corruption probe. The investigations have limited the Brazilian firms' access to credit and caused them financial problems. Their plight is part of the reason the Brazilian government is trying to draw foreign investment to help fund major infrastructure projects. If Beijing's interest in the country is any indication, the efforts are paying off. All told, China is expected to invest more than $20 billion in Brazil this year, a 68 percent increase over 2016.

And it's not far behind in Argentina. On May 17, Macri met with Chinese President Xi Jinping and signed an agreement for a $17 billion loan that Buenos Aires will use to construct two nuclear power plants, as well as solar energy and railway projects. The leaders also discussed expediting negotiations over a deal Chinese firms made to invest in four new hydroelectric dams in Argentina. That endeavor, like the power plant project, is a legacy of former President Cristina Fernandez de Kirchner's time in office. After assuming the presidency, Macri put the brakes on the initiatives, arguing that the Chinese firms involved had negotiated the deals directly with his predecessor rather than going through the Foreign Ministry in accordance with protocol. His misgivings notwithstanding, though, Macri opted to move forward with the projects because Argentina needs capital to increase its electricity output.

Beijing has taken advantage of the economic recession and decaying electricity sectors in Argentina and Brazil to increase its presence in the countries. Its activities in the region play into its overarching plan to internationalize its companies and expand its influence abroad. And the Brazilian and Argentine governments are so desperate for cash that they've laid aside their concerns that Beijing could use the investments to insinuate itself in their most strategic sectors.