Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-63147 Mon, 16 Oct 2017 21:10:11 GMT Goldman Sachs thinks we're heading into a bear market http://implode-explode.com/viewnews/2017-10-16_GoldmanSachsthinkswereheadingintoabearmarket.html iehi-feed-63135 Sat, 14 Oct 2017 16:33:45 GMT Tesla fired hundreds of employees in past week http://implode-explode.com/viewnews/2017-10-14_Teslafiredhundredsofemployeesinpastweek.html iehi-feed-63134 Sat, 14 Oct 2017 16:24:13 GMT Trump Isn't Certifying the Iran Deal--What Happens Next? http://implode-explode.com/viewnews/2017-10-14_TrumpIsntCertifyingtheIranDealWhatHappensNext.html ... even if Trump's gambit to decertify and threaten the JCPOA did some harm to Iran, the international reaction would produce far less net economic and diplomatic pressure on Iran than existed before the JCPOA was finalized. And it is literally insane to believe that it is possible to produce 150 percent of the current deal with 50, 70, or even 99 percent of the leverage the United States possessed in 2015. It simply ignores the laws of diplomatic physics. ...

... Trump's move to decertify could end up the way his push for health-care reform did--with a whole lot of posturing and debate and false starts in Congress, and little to show for it. It could amount to Trump head-faking to a campaign promise and making a political statement about the folly of his predecessor without actually undoing that predecessor's policy.

... The gambit could also backfire in the opposite direction--by blowing up the Iran deal even if that's not what Trump wants. The elaborate decertification plan "suggests an elegance of plotting that the administration has given little evidence of possessing," Kori Schake writes in The Atlantic. "Congress is unlikely to trust the president enough to make a brave choice--which remaining in the agreement after the president decertifies it would be--they suspect he would then publicly castigate them for."

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iehi-feed-63102 Sun, 08 Oct 2017 22:38:53 GMT Tesla's Pretense Of Model 3 Production Has Been Ripped Away http://implode-explode.com/viewnews/2017-10-08_TeslasPretenseOfModel3ProductionHasBeenRippedAway.html The WSJ report indicates that Tesla is still where I thought it was back in July. And the article points out that there is limited value in hand assembly of Model 3 at this point, since it doesn't serve to test out the final assembly process.

Hand assembly of the Model 3 now seems mainly designed to soothe investors by convincing them that Model 3 "production" has started. What I find so distressing about this is that increasingly, Tesla's actions seem to be governed not by technical necessity but by the need to keep investors sold on Tesla.

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I think it remains a foregone conclusion that Tesla will not achieve its goal of 5,000 Model 3/week production by the end of the year. But I consider it a distinct possibility that Tesla will not even meet my "Pessimistic Scenario" of 2,500/week by the end of the year.

This will impose even more financial strain on the company and probably necessitate yet another capital raise early next year.

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iehi-feed-63021 Sat, 23 Sep 2017 14:40:44 GMT Uber only has itself to blame for London license loss http://implode-explode.com/viewnews/2017-09-23_UberonlyhasitselftoblameforLondonlicenseloss.html iehi-feed-63019 Sat, 23 Sep 2017 14:21:10 GMT Creating Test for Trump, Panel Says Imported Solar Gear Hurts U.S. Firms http://implode-explode.com/viewnews/2017-09-23_CreatingTestforTrumpPanelSaysImportedSolarGearHurtsUSFirms.html A flood of imported solar equipment has seriously hurt American companies, the International Trade Commission ruled on Friday, setting up a major test of President Trump's willingness to use the protectionist measures he endorsed during the campaign.

The commission will now devise a course of action to recommend to Mr. Trump by Nov. 13. Its recommendations -- which the president will have broad leeway to accept, amend or reject -- could include establishing tariffs or minimum prices on imported solar equipment.

The commission ruled 4-0 in a case that focused on the question of whether the financial woes of two companies, Suniva and SolarWorld Americas, were caused by their own business practices or by unfair competition, often from Chinese companies that benefit from state subsidies.

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"The president will examine the facts and make a determination that reflects the best interests of the United States," said Natalie Strom, a White House spokeswoman. "The U.S. solar manufacturing sector contributes to our energy security and economic prosperity."

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Several analysts predicted that tariffs would revive the manufacturing of solar modules, or panels, in the United States, encouraging producers to open or expand American factories, as some large Chinese panel makers are already looking to do. But others said problems in the market were the result of low prices stemming from a global glut rather than a lack of capacity.

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Although companies like Sunrun, which focuses on installing panels on residential rooftops, said they could withstand higher prices, developers of large-scale projects said they were already seeing a slowdown as customers pulled back from committing to deals that could become uneconomical if costs rose.

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The case relied on a section of United States trade law that has not been used since President George W. Bush levied tariffs on foreign steel in 2002. In the intervening years, Barack Obama's administration chose to rely more heavily on the World Trade Organization to settle trade disputes.

President Trump and his advisers have argued that the World Trade Organization has been ineffective and slow at resolving trade violations. They have urged more unilateral action by the United States.

Analysts see a good chance of the president's taking action to protect the solar industry, given his longtime support for tariffs as a way to protect industries from cheap foreign products, especially from China.

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iehi-feed-62968 Wed, 13 Sep 2017 15:29:35 GMT Wholesale Prices in U.S. Increase on Jump in Energy Costs http://implode-explode.com/viewnews/2017-09-13_WholesalePricesinUSIncreaseonJumpinEnergyCosts.html PPI rose 2.4% y/y after 1.9% gain in prior 12-month period... About three-fourths of the monthly gain in the headline gauge came from goods, most of which was due to a 9.5 percent jump in gasoline, along with the biggest rise in jet-fuel costs since 2009. Since the PPI pricing date was Aug. 15, the data shouldn't have captured the effects of Hurricane Harvey, said Scott Sager, a Bureau of Labor Statistics economist.

This would seem to take some of the wind out of the sails of that 3% median income gain announced yesterday (which, if you recall, was in part due to a rejiggered methodology... so we wonder now if it was even really greater than 2.4%, which is to say, greater than nothing at all, on an inflation-adjusted basis...)

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iehi-feed-62964 Wed, 13 Sep 2017 03:10:10 GMT The automaker's perfect storm http://implode-explode.com/viewnews/2017-09-12_Theautomakersperfectstorm.html iehi-feed-62952 Mon, 11 Sep 2017 15:10:29 GMT Saudi Arabia Says It's Open to Another OPEC Cuts Extension http://implode-explode.com/viewnews/2017-09-11_SaudiArabiaSaysItsOpentoAnotherOPECCutsExtension.html Saudi Arabia and Venezuela, both members of the Organization of Petroleum Exporting Countries, agreed to consider prolonging production cuts "beyond the first quarter of 2018, if needed," the Saudi ministry said in one of the statements. The kingdom and Kazakhstan said such an extension "would be considered in due course as market fundamentals may dictate," according to a separate Saudi statement.

OPEC and other producers including Russia pledged to reduce output by about 1.8 million barrels a day through March to trim global oil inventories and buttress prices. The producers are seeking to strengthen compliance with the cuts accord they reached last year. Benchmark Brent crude has lost 6.2 percent this year and was trading 44 cents lower at $53.34 a barrel at 2:07 p.m. on Monday in London.

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iehi-feed-62946 Sat, 09 Sep 2017 16:51:00 GMT Swamp Fever - Kunstler http://implode-explode.com/viewnews/2017-09-09_SwampFeverKunstler.html iehi-feed-62933 Wed, 06 Sep 2017 22:55:27 GMT The US is speeding toward its first national law for self-driving cars http://implode-explode.com/viewnews/2017-09-06_TheUSisspeedingtowarditsfirstnationallawforselfdrivingcars.html The overarching goal of the Self Drive Act is to establish a federal framework for the regulation of self-driving cars, something industry experts say is sorely needed in the early days of the technology. It would also dramatically increase the possible number of autonomous vehicles on the road. Right now, automakers and companies interested in testing self-driving technology have to apply for exemptions to the National Highway and Traffic Safety Administration's (NHTSA) federal motor vehicle safety standards, and the agency only grants 2,500 per year. The Self Drive Act would increase that cap to 25,000 per year initially, and expand it up to 100,000 annually in three years' time.

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The Self Drive Act would make it so that states can no longer write legislation that the auto industry considers restrictive -- like in New York, for example, which requires expensive police escorts for autonomous tests. It would instead leave it in the hands of the federal government, which can make the guidelines more uniform. "The lack of regulations has often been cited as a potential obstacle to the proliferation of self-driving vehicles," Krebs says. "So having this federal framework, if it gets passed by the Senate, will take care of that."

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iehi-feed-62931 Wed, 06 Sep 2017 17:44:03 GMT The Legend of "Trump the Outsider" and the Same Old Ugly Politics http://implode-explode.com/viewnews/2017-09-06_TheLegendofTrumptheOutsiderandtheSameOldUglyPolitics.html Trump isn't canceling anything here [with the DACA announcement]. He supposedly is rallying his base once again, but if that's even true, I don't know why this would rally them. Trump isn't actually canceling anything, he's just appearing to cancel something that his base is said to want canceled... while in reality he's only passing the buck to Congress to pass DACA into law. Then, he can remind supporters he cancelled it... it was Congress that brought it back.

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To be entirely honest, I also think many Trump supporters also like whatever he does as long as they see it as infuriating those they view as being on the left.  They had to put up with Obama, they remind me, so now the left has to put up with whatever "this" happens to be.

I guess I understand that sort of thinking, it's human nature to some degree.  But, it made more sense in the first few months of the Trump presidency.  At this point we should be talking about (and hoping for) the new administration to do positive things for people in this country, regardless of whether Democrat or Republican... or Libertarian, Green Party or whatever other political affiliation.

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iehi-feed-62904 Fri, 01 Sep 2017 20:41:46 GMT Trump Admin Delayed EPA Rules That Would Improve Safety in Cases Like Harvey Chemical Plant Explosions http://implode-explode.com/viewnews/2017-09-01_TrumpAdminDelayedEPARulesThatWouldImproveSafetyinCasesLikeHarvey.html Coastal Houston is the site of a large concentration of chemical plants, refineries, superfund sites and fossil fuel operations. Some have suffered damage from Hurricane Harvey, releasing toxic compounds into the environment, and environmentalists, in turn, are pointing the finger at politicians and industry leaders who have sought to ax regulations.

Specifically, they're criticizing the Environmental Protection Agency for delaying a chemical plant safety rule once President Donald Trump took office. In part, the rule would have ensured first responders knew what chemicals they may come in contact with and how to handle those chemicals in an emergency response situation.

The intention was to help prevent and mitigate chemical accidents.

"The rules that were delayed were designed to reduce the risk of chemical releases," said Peter Zalzal, special projects director and lead attorney at Environmental Defense Fund. "This kind of situation underscores why we shouldn't be rolling these rules back."''

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the EPA said: "None of the major amendments would have been effective until March 2018 and most well after that. The agency's recent action to delay the effectiveness of the 2017 amendments had no effect on the major safety requirements that applied to the Arkema Crosby plant at the time of the fire."

While it looks like the specific rules that would have been in effect (and improved safety) in the Texas situation would not be in effect yet anyways, this does not look good for Trump's priorities. This is a beautiful illustration of why blanket-cancellation of regulations just because a political foe presided over their passage is a phenomenally-bad idea.

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iehi-feed-62902 Fri, 01 Sep 2017 16:41:08 GMT Harvey Hurts Houston Mortgage Bonds Already Feeling Oil Pain: $30 bln At-Risk http://implode-explode.com/viewnews/2017-09-01_HarveyHurtsHoustonMortgageBondsAlreadyFeelingOilPain30blnAtRisk.html Some $8.9 billion of loans packaged into commercial mortgage-backed securities since the financial crisis are supported by Houston-area offices, malls and hotels, Morgan Stanley analyst Richard Hill said in a note Monday. And, across Texas, almost $30 billion of these loans have exposure to official disaster areas, according to Trepp, a specialist firm that tracks such debt.

Harvey, which has already broken the nation's rainfall record for a single storm, couldn't come at a worse time for the epicenter of the U.S. oil industry. A three-year slump in energy prices that's seen oil average $49 per barrel this year has sent Houston office vacancies soaring and propelled some loans tied to the region's property on to credit graders' watch lists.

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iehi-feed-62897 Fri, 01 Sep 2017 14:35:16 GMT Largest U.S. refinery may be shut up to two weeks: sources http://implode-explode.com/viewnews/2017-09-01_LargestUSrefinerymaybeshutuptotwoweekssources.html iehi-feed-62880 Tue, 29 Aug 2017 19:01:22 GMT U.S. home prices surge in June, led by Seattle http://implode-explode.com/viewnews/2017-08-29_UShomepricessurgeinJuneledbySeattle.html U.S. home prices climbed higher in June with gains that are eclipsing income growth -- creating affordability pressures for would-be buyers.

The Standard & Poor's CoreLogic Case-Shiller 20-city home price index rose 5.7 percent in June, according to a Tuesday report. The separate national average rose as well, putting it 4.3 points above its housing bubble-era peak in July 2006.

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Prices rose less than 4 percent in the more expensive New York City and Washington, D.C., markets. They increased just 2.9 percent in Cleveland and 3.2 percent in Chicago.

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iehi-feed-62875 Mon, 28 Aug 2017 14:26:32 GMT Gasoline Surges, Oil Declines as Harvey Shutters Refineries http://implode-explode.com/viewnews/2017-08-28_GasolineSurgesOilDeclinesasHarveyShuttersRefineries.html iehi-feed-62863 Fri, 25 Aug 2017 21:46:52 GMT First tanker crosses northern sea route without ice breaker http://implode-explode.com/viewnews/2017-08-25_Firsttankercrossesnorthernsearoutewithouticebreaker.html A commercial LNG tanker has sailed across the colder, northern route from Europe to Asia without the protection of an ice-breaker for the first time.

The specially-built ship completed the crossing in just six-and-a-half days setting a new record, according to the tanker's Russian owners.

The 300-metre-long Sovcomflot ship, the Christophe de Margerie, was carrying gas from Norway to South Korea.

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The ship, which features a lightweight steel reinforced hull, is the largest commercial ship to receive Arc7 certification, which means it is capable of travelling through ice up to 2.1m thick.

On this trip it was able to keep up an average speed of 14 knots despite sailing through ice that was over one metre thick in places.

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iehi-feed-62843 Wed, 23 Aug 2017 13:37:26 GMT Trump Not Totally Successful In Getting Machinery of Gov To Toss His Wealthy Buddies Favors http://implode-explode.com/viewnews/2017-08-23_TrumpNotTotallySuccessfulInGettingMachineryofGovToTossHisWealthy.html Coal magnate Robert Murray has just joined Wall Street billionaire Carl Icahn in an exclusive club -- wealthy backers of President Donald Trump who tried and failed to get lucrative concessions from his administration.

Murray, CEO of Murray Energy, one of the nation's biggest and most politically active coal miners, complained in an Aug. 4 letter made public Tuesday that the Energy Department had dragged its feet on his request that it use its emergency powers to force some Rust Belt coal-fired power plants to stay open. Trump was so taken by the idea that he immediately turned to Energy Secretary Rick Perry and ordered him to do it, wrote Murray, who said he had witnessed the conversation

Despite his best efforts, the "swamp" saves the day...

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iehi-feed-62828 Sun, 20 Aug 2017 18:45:41 GMT NAFTA Negotiations Start in Secrecy; Corporate Lobbying Heats Up http://implode-explode.com/viewnews/2017-08-20_NAFTANegotiationsStartinSecrecyCorporateLobbyingHeatsUp.html