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November 2024

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The Biden administration has announced a US$7.87 billion funding agreement with Intel (NASDAQ:INTC) under the CHIPS Incentives Program as part of its efforts to bolster the US semiconductor manufacturing industry.

The award represents one of the most substantial semiconductor manufacturing investments facilitated by the CHIPS for America program.

Intel plans to invest over US$90 billion in the United States by the end of the decade, enhancing the US capacity for manufacturing leading-edge semiconductors. These advanced chips are integral to crucial industries such as artificial intelligence and defense systems.

The company’s expansion plan spans facilities in Arizona, New Mexico, Ohio and Oregon. The expansion is expected to generate approximately 10,000 permanent manufacturing jobs and 20,000 construction jobs across the four states involved.

The Department of Commerce’s direct funding will support Intel’s fabrication and packaging of these chips, addressing vulnerabilities in the global semiconductor supply chain.

Secretary of Commerce Gina Raimondo hailed the partnership as pivotal for revitalizing the domestic semiconductor industry and securing US technological leadership.

“The CHIPS for America program will supercharge American innovation and technology and make our country more secure,” she stated in the announcement.

Meanwhile, Intel’s CEO Pat Gelsinger reiterated the company’s commitment to advancing semiconductor manufacturing on American soil, citing bipartisan support as a driving force behind the company’s investment strategy.

Intel’s semiconductor manufacturing process technologies, including Intel 3 and Intel 18A , are poised to contribute significantly to the US domestic semiconductor ecosystem.

CHIPS for America, part of the broader CHIPS and Science Act, is a cornerstone of the current administration’s economic agenda.

The initiative aims to re-shore critical manufacturing capabilities and stimulate economic growth, enhancing US competitiveness and addressing economic vulnerabilities.

Overall, CHIPS for America has allocated approximately US$19 billion in incentives to date, supporting projects across 20 states and facilitating the creation of an estimated 125,000 jobs.

Public investments in the semiconductor and electronics industries have played a large role in catalyzing over US$450 billion in private sector commitments in these industries since the beginning of the Biden-Harris administration.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Battery materials and technology company NOVONIX (ASX:NVX,NASDAQ:NVX) has signed a binding offtake agreement for synthetic graphite material, the company said in a Monday (November 25) press release.

The agreement is with PowerCo, a battery company set up by Volkswagen (OTC Pink:VLKAF,FWB:VOW). The company is looking to boost its battery cell output, and has identified three gigafactory locations.

The first is in Salzgitter, Germany, the second is Valencia, Spain, and the third is in St. Thomas, Canada.

NOVONIX and PowerCo signed a non-exclusive testing and development agreement in March of this year.

Under the newly announced offtake agreement, NOVONIX will supply a minimum of 32,000 tonnes of synthetic graphite material to PowerCo over a five year term that is set to begin in 2027.

This arrangement comes after NOVONIX penned a binding offtake deal with automotive company Stellantis (NYSE:STLA) earlier this month. It is for a minimum of 86,250 tonnes of synthetic graphite material over a period of six years.

‘Offtake agreements with high-quality partners such as Stellantis solidify NOVONIX’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy,’ said CEO Dr. Chris Burns.

NOVONIX’s Riverside facility, located in Tennessee, US, is reportedly slated to become the first large-scale production site for high-performance synthetic graphite in North America. The company has been awarded a US$100 million grant from an office of the US Department of Energy, and also received a US$103 million investment tax credit.

The facility plans to grow output to 20,000 tonnes per year. Commercial production is set to begin in 2025.

NOVONIX is due to start commercial supply to PowerCo in 2027, but will have to achieve agreed-upon milestones first. These include mass production qualification and the satisfaction of certain compliance criteria.

The company will also have to secure financing commitments for production facilities.

Should NOVONIX fail to satisfy these requirements, PowerCo has the right to terminate the agreement.

Shares of NOVONIX were on the rise following the news, reaching as high as AU$0.98 on Monday.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Incoming US President Donald Trump has proposed the application of a 25 percent tariff on all imports from Canada and Mexico on his first day in office, sparking concerns over possible economic implications.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump posted on his Truth Social platform, adding that the move was spurred by worries over illegal drug imports and immigration.

Canada and Mexico are America’s closest trading partners, with both being integral to the US-Mexico-Canada Agreement (USMCA). They account for significant portions of US imports in critical sectors, from energy to automobiles.

Analysts are already predicting widespread economic disruption if the tariffs are implemented, with Canadian and Mexican leaders raising concerns about the implications for trade relations and resource exports.

Canada and Mexico’s close ties to the US

Canada exported US$587 billion in goods globally in 2022, relying heavily on the US as its primary trading partner. In total, 74.5 percent of the country’s exports are destined for the US market.

Overall, the country’s top exports for that year included crude petroleum (US$123 billion), cars (US$29.4 billion), petroleum gas (US$24.3 billion) and refined petroleum (US$17.2 billion).

Canadian crude oil alone accounts 62 percent of US crude imports. Canadian officials argue that tariffs on such goods could disrupt supply chains and inflate costs for businesses and consumers across North America.

Mexico also has a strong trade relationship with the US, exporting US$421 billion worth of goods to the country. Its overall top exports include cars (US$48.4 billion), computers (US$39.3 billion) and crude petroleum (US$38.2 billion).

Lose-lose situation for all countries involved

Canadian responses to Trump’s comments focus on the economic losses for all parties involved.

Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic LeBlanc issued a joint statement on X, formerly Twitter, emphasizing the importance of maintaining the integrity of cross-border trade.

‘Canada and the United States have one of the strongest and closest relationships — particularly when it comes to trade and border security. Canada places the highest priority on border security and the integrity of our shared border,” they said in a post issued on Monday (November 25).

Prime Minister Justin Trudeau also addressed the issue, revealing that he had spoken with Trump to stress the significance of the USMCA in fostering stable trade relations.

‘This is a relationship that we know takes a certain amount of working on, and that’s what we’ll do,’ he said.

Mexican President Claudia Sheinbaum echoed this cautionary sentiment, saying, ‘To one tariff will follow another in response and so on, until we put our common businesses at risk.’

Tariffs to impact inflation, currencies

The automotive sector in particular stands out as a critical area of concern. The US imports the majority of its cars and car parts from Canada and Mexico, with Mexico surpassing China as the top exporter to the US in 2023.

The tariffs could lead to increased vehicle prices and production delays, impacting automakers and consumers alike.

The proposed tariffs come at a time when US businesses are already grappling with inflationary pressures and labor shortages. Analysts warn that additional tariffs could exacerbate these challenges by driving up costs.

The Peterson Institute for International Economics estimates that Trump’s broader tariff proposals could cost the average US household over US$2,600 annually, a figure that may rise further with the inclusion of Canada and Mexico.

The potential impact on currency markets has also been noted.

Following Trump’s announcement, the Canadian dollar and Mexican peso both experienced immediate declines against the US dollar, although partial recoveries were observed in subsequent trading sessions.

As the US’ trade partners seek to establish a compromise, analysts are warning that the economic costs of such tariffs could extend beyond North America, impacting further global supply chains and consumer markets.

The coming months are likely to see intensified discussions between US, Canadian and Mexican officials as they seek to establish a middle ground to avoid an all-out breakdown in their relationship.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

A controversial American live-streamer is facing the prospect of prison in South Korea for his offensive antics, in a case that is shining a light on the rise of so-called “nuisance influencers” seeking clicks overseas.

Ismael, who has built a reputation online for his provocative, often highly offensive video stunts, has been banned by multiple social media companies, after he was accused by critics of harassing locals in countries across Asia in an apparent effort to boost his online viewership.

Earlier this month, Ismael posted an online apology after he was accused of desecrating a South Korean monument to women subjected to sexual slavery in World War II, causing widespread outrage in the country.

The public backlash in South Korea appeared to reflect a broader frustration in the region with foreigners who exploit local customs for online fame, with Ismael being an extreme example of bad behavior.

According to Japanese news reports, foreign content creators have recently been accused of a string of transgressions in the country, from dodging railway fares to doing pull-ups on a shrine gate and “nuisance dancing” on Tokyo subway trains.

It coincides with a souring sentiment on mass tourism among many Japanese people as the country experiences record visitor numbers and a rise in reports of tourists behaving badly.

Earlier this month, a 65-year-old American tourist was arrested in Tokyo for allegedly carving letters into a shrine gate, just two months after a 61-year-old Austrian man was arrested for having sex on the grounds of a shrine.

Ismael’s recent trip to Japan was also met with controversy.

Last year, the live-streamer was arrested in Osaka on suspicion of trespassing in a construction site, according to the Kyodo News agency. Ismael also caused outrage in Japan by posting videos of himself taunting commuters about the atomic bombings of Hiroshima and Nagasaki, while hurling insults.

John Lie, a sociology professor at the University of California, Berkeley, said Ismael serves as a cautionary tale about the risks of disregarding cultural boundaries in an interconnected world.

Though it was possible he has a deeper motive, the provocateur’s behavior appeared primarily designed to attract attention in a “quest to be a social media celebrity,” Lie said.

“There’s nothing significant there save his provocateur persona: a garden-variety character in today’s social mediascape,” he added.

This post appeared first on cnn.com

Seoul residents awoke to a gleaming world of white this week, as record snowfall caused both disruption and delight across the South Korean capital.

The city recorded 16.1 centimeters (6.3 inches) of snow on Wednesday – the heaviest daily snowfall in November since records began in 1907, according to the Korea Meteorological Administration (KMA).

The previous record, set in 1966, saw 9.5 cm (3.7 inches) of snow.

Further heavy snow fell throughout the day and overnight; by Thursday morning parts of Yongin city, south of the capital, had recorded 47.5 centimeters (18.7 inches) of snow, according to KMA.

Photos of the capital show trees sagging under the weight of the snow, and Seoul’s iconic palaces blanketed in white. Residents bundled up in thick coats, with some throwing snowballs, building snowmen and reveling in the fluffy snow.

They weren’t the only ones enjoying the wintry wonderland.

The country’s first ever twin panda cubs – born to nationwide enthusiasm last July – were seen frolicking at the Everland theme park and zoo Wednesday, sliding down a snowy field. It was the cubs’ first time experience in snow after keepers kept them indoors last winter to protect them from the elements, Reuters reported.

But the snow also brought widespread disruption, with travel halted in many places and transportation services suspended.

As of Thursday afternoon, more than 130 homes in Seoul had reported losing power, according to the Ministry of the Interior and Safety. Hundreds also lost power in cities near the capital including Gwangju, the Associated Press reported.

More than 150 flights nationwide were canceled or delayed between Tuesday and Thursday, while over 100 ferry services were restricted, the Interior Ministry said. At least 18 roads around Seoul faced restrictions due to the snow, with authorities adding extra subway trains to accommodate the extra demand on public transit.

In Wonju, southeast of Seoul, there was a multi-car pileup on a highway, with videos showing emergency workers surveying damaged cars and directing slow-moving vehicles in other lanes.

President Yoon Suk Yeol was briefed on the snowstorm on Wednesday, and ordered “thorough management to avoid damage to the people,” according to his office. Yoon also asked authorities to ensure there was enough capacity on public transport to cope with rush hour on Thursday.

As of Thursday, heavy snowfall alerts remained in place for southern parts of Gyeonggi province, according to KMA, though the alert for Seoul has been lifted and snow has begun to lighten in the capital.

This post appeared first on cnn.com

Six so-called “narco subs” stuffed with cocaine were captured in a Colombian-led international anti-drug operation, authorities in the Latin American nation said Wednesday, as part of a huge global bust.

The mission, involving 62 countries, seized more than 1,400 metric tons of drugs – mostly marijuana – between October 1 and November 14, according to Vice Adm. Orlando Enrique Grisales, chief of naval operations staff for the Colombian Navy.

Among the haul was 225 metric tons of cocaine, 5 tons of which was found aboard a semi-submersible vessel plying a marine trafficking route from Colombia to Australia, he said.

The vessel, intercepted in Pacific waters with enough fuel to reach Australia, is the third such “narco sub” intercepted on the route, Grisales told reporters.

“The first was discovered in Colombian waters, and thanks to the maps it carried, we identified the route. That’s when we began working with Australian authorities,” he added.

Australian police have warned in recent years that international drugs cartels are increasingly targeting the country, where a surge in cocaine use combined with some of the highest street prices in the world has fueled a lucrative illicit market.

It’s not the first time “narco subs” have been seized by authorities. Traffickers started using the vessels in the late 1990s as Colombian cartels looked for ways to evade US law enforcement patrols in the Caribbean Sea to transport their illegal cargo into the United States.

The 225-ton seizure of cocaine is a huge haul. In a report this year, the UN Office on Drugs and Crime estimated that in 2022, global cocaine production reached 2,700 tons, a record high.

This post appeared first on cnn.com

A Chinese acrobat who lost his wife and performance partner to a terrifying fall on stage last year was seriously injured in another show this week, state media reported.

Zhang Kai, 39, plunged several meters to a hard cement ground while performing an aerial silks routine on Monday night, after two pieces of fabric he was holding broke loose from the top of a crane.

The horrific moment was captured by Zhang’s own livestream of his performance in Henan province on Douyin, the sister app of TikTok in China, according to the state-run Xiaoxiang Morning Herald.

Zhang, who suffered injuries to his face and leg fractures, was out of life-threatening danger as of Wednesday but remained in the intensive care unit, his family told the Chengdu Business Daily, another state-owned newspaper.

Zhang’s late wife, surnamed Sun, fell to her death during an aerial silks performance with her husband in a village in Anhui province in April last year, sparking horror and outcry on social media over the lack of safety measures for performers.

Online footage of that incident showed the couple being pulled high into the air by a crane above a large outdoor stage. As they swung in mid-air, Sun wrapped her arms around her husband’s head and hung off him during a transition act. But she lost her grip and plunged to the hard stage amid screams from the crowd. Zhang attempted to catch her with his legs but failed, the footage showed.

The tragedy caused shock on Chinese social media. Many users questioned why Sun did not wear any safety belt, and why there was no safety net or crash mat on the ground. Others called for stricter regulations on the acrobatic industry and better protection for performers.

An investigation into last year’s incident by the local government found the company which hosted the show had not obtained prior approval from authorities and failed to provide essential safety protection and emergency measures during the performance. The use of a crane in the performance was also a violation of regulations, the government said.

China’s Acrobats Association issued a statement at the time, calling for acrobatic groups and performers to pay greater attention to safety measures.

On his Douyin bio, Zhang, a father of two, said last year’s incident “took away the person I loved most, leaving me alone to support the entire family.”

Before Monday’s performance, Zhang said in a video on Douyin that he took the gig to stand in for a friend who was supposed to perform but couldn’t make it to the show that night, calling it a “new challenge.”

“Maybe when you guys see this, like me, you will feel a mix of sadness and an indescribable emotion,” he said as he turned his phone to show the construction crane used to hang the performance silks. “Later I’ll use this account to show you guys on livestream.”

On Douyin, many users wished Zhang a speedy recovery. Some urged him to switch to another job for his kids, citing the risks.

This post appeared first on cnn.com

China has suspended a top military official and placed him under investigation for corruption, the defense ministry said, as leader Xi Jinping broadens a sweeping purge in the upper ranks of the world’s largest military.

Admiral Miao Hua, a member of the powerful Central Military Commission (CMC), China’s top military body led by Xi, is under investigation for “serious violation of discipline” – a euphemism for corruption, Defense Ministry spokesperson Wu Qian said at a news conference Thursday.

Miao, 69, heads the Political Work Department of the CMC. He is widely seen as a close ally of Xi, having served in the army in the coastal province of Fujian when Xi was a senior official there in the 1990s and early 2000s.

The news of Miao’s suspension and investigation comes a day after the Financial Times reported that China’s Defense Minister Dong Jun had been placed under investigation for corruption, citing current and former US officials.

The Defense Ministry spokesperson dismissed the report as “sheer fabrication.”

“Those rumor mongers harbor evil motives. China expresses strong dissatisfaction over such smears,” he said.

Xi has waged a sweeping crackdown on corruption in China’s People’s Liberation Army (PLA) since last year, focusing on the Rocket Force, an elite branch overseeing the country’s nuclear and conventional missiles.

The purge led to the downfall of several senior generals, including former defense minister Li Shangfu and his predecessor Wei Fenghe, who were expelled from the party in June over corruption allegations.

The ongoing turmoil in the upper ranks of the military comes as Xi is seeking to make China’s armed forces stronger, more combat-ready and more aggressive in asserting its disputed territorial claims in the region. As part of Xi’s ambition to transform the PLA into a “world class” fighting force, China has poured billions of dollars into buying and upgrading equipment.

Since last summer, more than a dozen high-level military officers and aerospace executives in the military-industrial complex have been stripped of their public roles.

Most of the generals purged were linked to the Rocket Force or military equipment, including Li and Wei, the former defense ministers.

Last summer, Li disappeared from public view after only months into the job, and weeks after a surprise shake-up of the leadership of the Rocket Force. He was removed from his post in October, without any explanation, and replaced by Dong, the current defense minsiter.

Miao, the latest top military official to be investigated, is widely seen as a political patron of Dong, who is also an admiral and once served as the top commander of the PLA Navy.

A Fujian native, Miao rose through the ranks in the political departments of the military. He was appointed the political commissar of the Navy in 2014 before being promoted to the director of the CMC’s Political Work Department in 2017.

Xi has made rooting out corruption and disloyalty a hallmark of his rule since coming to power in 2012, and the purges suggest that campaign is far from over within the military.

This post appeared first on cnn.com

On November 21, 2024, Citron Capital shorted MicroStrategy Inc. (MSTR). What made this confrontation particularly electrifying was the clash between two titans: Citron, a legendary short seller, and MicroStrategy, arguably the strongest stock of 2024.

Why did Citron short MicroStrategy? Citron called its $91 billion valuation a reckless Bitcoin bubble. MSTR began buying Bitcoin in 2020; it currently owns 1.7% of the global Bitcoin supply and some analysts expect the company to own 4% by 2033. Citron viewed MSTR’s Bitcoin hoarding as a leveraged gamble that could implode if Bitcoin falters.

To see the impact of MSTR’s crypto trade, look at the correlation between the stocks and the crypto on a weekly chart.

FIGURE 1. WEEKLY CHART OF MICROSTRATEGY. The Correlation Coefficient in the bottom panel shows how MSTR strongly correlates with Bitcoin. MSTR has also outperformed the S&P 500 ($SPX).Chart source: StockCharts.com. For educational purposes.

The stellar rise in MSTR from a low of $43-and-change in January to a high of $543 in November has been anything but smooth and steady. MicroStrategy is a business analytics company that provides exposure to both AI and Bitcoin (due to its heavy accumulation). It’s like two trades in one. StockCharts’s Correlation Coefficient indicator shows how correlated MSTR is to $BTCUSD. You will want to keep an eye on this: if Bitcoin rises or falls, it will likely affect MSTR’s stock price.

You can also see MSTR’s relative performance against the S&P 500 ($SPX). Currently, it’s outperforming the broad index by over 300%. Overvalued and risky? That’s Citron’s take, and you can see the plunging effect of Citron’s thesis as it took action in the market.

Nevertheless, MSTR still ranks within the Top 10 of StockCharts Technical Rank (SCTR) report, its technical strength holding its measured position despite the big short and the risk it entails.

FIGURE 2. SCTR REPORT ON TUESDAY, NOVEMBER 26, 2024. MSTR is fourth from the top, with a SCTR score of 99.5.Image source: StockCharts.com. For educational purposes.

If this remains true, might the stock experience a bounce, attracting prospective bulls to enter positions at perceived discount levels? If so, where? Let’s shift to a daily chart.

FIGURE 3. DAILY CHART OF MSTR. Note how the swing points correspond cleanly with the Fibonacci Retracement lines.Chart source: StockCharts.com. For educational purposes.

Drawing Fibonacci Retracement levels from the August low to the November high, you can better contextualize the pullback to see where bullish investors may be looking for entry points. Note that I circled each level to highlight each potential support area.

One place that buyers may be looking for an early bounce is at the swing high point right above $380, which coincides with the Fib 38.2% retracement. While some buyers might have jumped in, that level may be too aggressive an entry as the price is looking to break below it. The next potential support levels are the swing low between $318 and $320, which converges with the Fib 50% line, and, below that, the October swing high near $267, which is close to the 61.8% Fib retracement level.

Should any of these points trigger a bounce, check volume and buying pressure as a potential indicator for institutional support. Right now, if you look at the Chaikin Money Flow (CMF), you can see that sellers are firmly in control of the stock (see green circle). You will want to see that situation reverse, with the CMF line crossing above the zero line.

Your Next Action Steps

While watching these levels, do the following:

  • Add MSTR to your ChartLists. This ensures you can have the chart handy with all key levels when monitoring it.
  • Set a price alert for when the price crosses below $323. Once it crosses below this level, prepare for a potential bounce somewhere between $318 and $320. You could also set a second alert for when the price crosses above $375, the 38.2% Fibonacci retracement level. This could be an entry point for a potential upside move.
  • Also, keep an eye on the CMF; if there’s a bounce, you’ll want to see buyers taking control of the market.

This should give you ample time to observe and respond, assessing whether the technical context signals a buy or a wait-and-see. You can also check the fundamental story to see what’s happening with the stock, particularly if the technicals remain fuzzy.

At the Close

MicroStrategy’s meteoric rise in 2024, fueled by its double play on Bitcoin and AI, has made it a magnet for both bulls and skeptics. While Citron’s short position underscores bearish concerns about overvaluation and leverage risk, the stock’s technical strength and correlation with Bitcoin continue to attract bullish attention. Keep an eye on support levels and for any shift between buying/selling momentum. The technical levels above should map out the key areas to watch and key technical events to anticipate.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.