China’s new space station opens for business in an increasingly competitive era of space activity

By Eytan Tepper, Indiana University and Scott Shackelford, Indiana University 

The International Space Station is no longer the only place where humans can live in orbit.

On Nov. 29, 2022, the Shenzhou 15 mission launched from China’s Gobi Desert carrying three taikonauts – the Chinese word for astronauts. Six hours later, they reached their destination, China’s recently completed space station, called Tiangong, which means “heavenly palace” in Mandarin. The three taikonauts replaced the existing crew that helped wrap up construction. With this successful mission, China has become just the third nation to operate a permanent space station.

China’s space station is an achievement that solidifies the country’s position alongside the U.S. and Russia as one of the world’s top three space powers. As scholars of space law and space policy who lead the Indiana University Ostrom Workshop’s Space Governance Program, we have been following the development of the Chinese space station with interest.

Unlike the collaborative, U.S.-led International Space Station, Tiangong is entirely built and run by China. The successful opening of the station is the beginning of some exciting science. But the station also highlights the country’s policy of self-reliance and is an important step for China toward achieving larger space ambitions among a changing landscape of power dynamics in space.

A diagram of the space station.
The Tiangong space station is much smaller than the International Space Station and consists of three modules.
Shujianyang/Wikimedia Commons, CC BY-SA

Capabilities of a Chinese station

The Tiangong space station is the culmination of three decades of work on the Chinese manned space program. The station is 180 feet (55 meters) long and is comprised of three modules that were launched separately and connected in space. These include one core module where a maximum of six taikonauts can live and two experiment modules for a total of 3,884 cubic feet (110 cubic meters) of space, about one-fifth the size of the International Space Station. The station also has an external robotic arm, which can support activities and experiments outside the station, and three docking ports for resupply vehicles and manned spacecraft.

Like China’s aircraft carriers and other spacecraft, Tiangong is based on a Soviet-era design – it is pretty much a copy of the Soviet Mir space station from the 1980s. But the Tiangong station has been heavily modernized and improved.

The Chinese space station is slated to stay in orbit for 15 years, with plans to send two six-month crewed missions and two cargo missions to it annually. The science experiments have already begun, with a planned study involving monkey reproduction commencing in the station’s biological test cabinets. Whether the monkeys will cooperate is an entirely different matter.

Science and a steppingstone

The main function of the Tiangong station is to perform research on life in space. There is a particular focus on learning about the growth and development of different types of plants, animals and microorganisms, and there are more than 1,000 experiments planned for the next 10 years.

Tiangong is strictly Chinese made and managed, but China has an open invitation for other nations to collaborate on experiments aboard Tiangong. So far, nine projects from 17 countries have been selected.

Although the new station is small compared to the 16 modules of the International Space Station, Tiangong and the science done aboard will help support China’s future space missions. In December 2023, China is planning to launch a new space telescope called Xuntian. This telescope will map stars and supermassive black holes among other projects with a resolution about the same as the Hubble Space Telescope but with a wider view. The telescope will periodically dock with the station for maintenance.

China also has plans to launch multiple missions to Mars and nearby comets and asteroids with the goal of bringing samples back to Earth. And perhaps most notably, China has announced plans to build a joint Moon base with Russia – though no timeline for this mission has been set.

The three-person crew of taikonauts greets the crew already aboard the Tiangong station in early December 2022.

Astropolitics

A new era in space is unfolding. The Tiangong station is beginning its life just as the International Space Station, after more than 30 years in orbit, is set to be decommissioned by 2030.

The International Space Station is the classic example of collaborative ideals in space – even at the height of the Cold War, the U.S. and the Soviet Union came together to develop and launch the beginnings of the space station in the early 1990s. By comparison, China and the U.S. have not been so jovial in their orbital dealings.

In the 1990s, when China was still launching U.S. satellites into orbit, concerns emerged that China was accidentally acquiring – or stealing – U.S. technology. These concern in part led to the Wolf Amendment, passed by Congress in 2011, which prohibits NASA from collaborating with China in any capacity. China’s space program was not mature enough to be part of the construction of the International Space Station in the 1990s and early 2000s. By the time China had the ability to contribute to the International Space Station, the Wolf Amendment prevented it from doing so.

It remains to be seen how the map of space collaboration will change in the coming years. The U.S.-led Artemis Program that aims to build a self-sustaining habitat on the Moon is open to all nations, and 19 countries have joined as partners so far. China has also recently opened its joint Moon mission with Russia to other nations. This was partly driven by cooling Chinese-Russian relations but also due to the fact that because of the war in Ukraine, Sweden, France and the European Space Agency canceled planned missions with Russia.

As tensions on Earth rise between China, Russia and the West, and some of that jockeying spills over into space, it remains to be seen how the decommissioning of the International Space Station and operation of the Tiangong station will influence the China-U.S. relationship.

An event like the famous handshake between U.S. astronauts and Russian cosmonauts while orbiting Earth in 1975 is a long way off, but collaboration between the U.S. and China could do much to cool tensions on and above the Earth.The Conversation

About the Author:

Eytan Tepper, Visiting Assistant Professor of Space Governance, Indiana University and Scott Shackelford, Professor of Business Law and Ethics, Indiana University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Week Ahead: USD ready to rebound?

By ForexTime

Some of the world’s largest central banks are about to make their final rate decisions of the year, while offering their updated policy outlooks for 2023.

Throw into that mix: the latest inflation data out of major economies such as the US and the UK.

All that could make for some spicy market action, with FX pairs involving the US dollar, euro, and the British Pound perhaps feeling the burn going into 2023.

 

Here’s a list of the main economic data releases and events that could rock markets next week:

Monday, December 12

  • JPY: Japan November PPI
  • GBP: UK October monthly GDP, industrial production, manufacturing production

 

Tuesday, December 13

  • AUD: Australia November household spending, December consumer confidence
  • EUR: Germany November CPI (final print), December ZEW survey expectations
  • GBP: UK October unemployment rate, November jobless claims
  • USD: US November CPI – consumer price index

 

Wednesday, December 14

  • GBP: UK November CPI
  • EUR: Eurozone October industrial production
  • USD: Fed rate decision
  • Crude: EIA weekly oil inventories

 

Thursday, December 15

  • NZD: New Zealand Q3 GDP
  • AUD: Australia November unemployment, December inflation expectations
  • CNH: China medium-term lending rate; November industrial production, retail sales, jobless rate
  • CHF: Swiss National Bank rate decision
  • NOK: Norway’s Norges Bank rate decision
  • GBP: Bank of England rate decision
  • EUR: European Central Bank rate decision
  • USD: US weekly initial jobless claims, November retail sales, industrial production

 

Friday, December 16

  • AUD: Australia December PMIs
  • GBP: UK November retail sales; December PMIs and consumer confidence
  • S&P 500: ‘Triple witching day’ for US markets
  • USD: Deadline for avoiding US government shutdown

 

Markets are widely expecting a 50-bps hike respectively by the US Federal Reserve, the European Central Bank, and the Bank of England.

Anything other than a 50bps hike would be a surprise for markets, and likely translating into shock moves for USD, EUR, and/or GBP currency pairs.

A 50bps adjustment would also mark a “downshift” for these big 3 central banks, who had each hiked by 75bps at their previous meetings.

 

Focus on the Fed

As always, the Fed remains front and centre, given that it’s the most influential central bank in the world.

Consider how the rest of the FX world has found some relief from the US dollar’s declines over the past couple of months.

That’s largely due to markets becoming increasingly hopeful the eventual “downshift” (opting for smaller-sized rate hikes) by the Fed.

Such expectations have halved the benchmark US Dollar index’s year-to-date gains, from as much as 20% now down to 9.3% at the time of writing.

 

Watch what central bankers say and do

Markets are ready to react not just to what these central banks will do to their respective benchmark rates next week, but also to what each of these central banks say about their intentions on rate adjustments in 2023.

These policy outlooks will of course be informed by the latest figures on inflation, which we know is enemy #1 for these central bankers.

READ MORE: Why FX markets react to central banks? (September 22nd article)

Hence, if we do see a higher-than-7.3% US CPI print next week, that should pave the way for the Fed to keep hiking its benchmark rates for longer.

Such a narrative could fuel a rebound for the US dollar, especially if Fed Chair Jerome Powell can convince markets once more of the central bank’s ultra-hawkish intentions.

Yet, we note that such a rebound for the greenback may prove limited and fleeting.

Looking back at the earlier DXY chart, the dollar’s rebound may be capped once more at its 200-day simple moving average (SMA).

From a fundamental perspective, the dollar’s rebound may run out of steam especially if markets persist with hopes on the eventual Fed “pivot”, despite what Powell may say to the contrary.

 

Brace for potentially imminent volatility

Overall, it remains to be seen which central bank can sound the most hawkish (intend to send its own benchmark rate higher) between the Fed, ECB, or the BOE.

And it’s the currency of that more-hawkish central bank that may outperform next week, and through year-end.


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ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Murrey Math Lines 09.12.2022 (Brent, S&P 500)

By RoboForex.com

BRENT

On H4, the quotes of Brent oil are below the 200-day Moving Average, which indicates the prevalence of a downtrend. However, the RSI is already in the oversold area. A test of 0/8 (75.00) should be expected, followed by a bounce off it and growth to the resistance level of 2/8 (81.25). The scenario can be cancelled by a downward breakaway of the support level of 0/8 (75.00). In the case, the quotes may fall to -1/8 (71.88).

BRENTH4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

On M15, the upper line of VoltyChannel is too far away from the current price, which means growth of the quotes will be initiated by a bounce off 0/8 on H4.

BRENT_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

S&P 500

On H4, the S&P 500 quotes have dropped under the 200-day Moving Average again, indicating a downtrend. The RSI is testing the resistance line. In the end, a downward breakaway of the support level of 1/8 (3906.2) should be expected, followed by falling to 0/8 (3750.0). The scenario can be cancelled by rising over the resistance level of 2/8 (4062.5). This might lead to a trend reversal and growth of the quotes to 3/8 (4218.8).

S&P 500_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

On M15, an additional signal confirming the decline will be a bounce off the lower line of VoltyChannel.

S&P 500_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

The Analytical Overview of the Main Currency Pairs on 2022.12.09

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.0504
  • Prev Close: 1.0554
  • % chg. over the last day: +0.47 %

Initial jobless claims jumped to the highest level since February, indicating that unemployed people need more time to find work. These are the first signs that the US labor market is beginning to “cool down,” which will affect the Fed’s monetary policy toward slowing the rate hikes. The end of the tightening cycle is close.

Trading recommendations
  • Support levels: 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
  • Resistance levels: 1.0584, 1.0610

The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading above the moving average lines, the MACD indicator is positive again, and buyers’ pressure remains. But now that the price has reached the resistance level, a pullback is possible. It is better to consider buy deals from the support level of 1.0483 but with additional confirmation. Sell deals can be considered from the resistance level of 1.0584, but it is better with confirmation in the form of reverse initiative.

Alternative scenario: if the price breaks down through the support level of 1.0332 and fixes below it, the downtrend will likely resume.

EUR/USD
News feed for 2022.12.09:
  • – US Producer Price Index (m/m) at 15:30 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2199
  • Prev Close: 1.2236
  • % chg. over the last day: +0.30 %

The Bank of England will raise the interest rate next week. Analysts are leaning that it will be a 50 bps increase, raising the bank rate to 3.50%. Further, the Bank of England is projected to add another 50 basis points in the first quarter of 2023 and 25 basis points in the second quarter, with medians showing that the bank rate will peak at 4.25%. The UK is almost certainly headed for recession, with economists giving an average 85% chance of a recession within a year. Quarterly forecasts suggest that the economy will contract by 0.4% this year, which fits the technical definition of a recession.

Trading recommendations
  • Support levels: 1.2177, 1.2016, 1.1964, 1.1684, 1.1476, 1.1418
  • Resistance levels: 1.2279, 1.2381, 1.2431

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. The price is trading above the average lines. The MACD indicator returned to the positive zone, and there is a slight buying pressure inside the day. Under such market conditions, buy trades are better to look for from the support level of 1.2177, but with confirmation on intraday time frames. Sell trades are best looked for from the resistance level of 1.2279 but also better with confirmation in the form of a reverse initiative or a false breakout.

Alternative scenario: if the price breaks down from the 1.1965 support level and fixes below it, the downtrend will likely resume.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 136.64
  • Prev Close: 136.67
  • % chg. over the last day: +0.02 %

According to the Japan Foreign Trade Council, Japan’s exports and imports hit a record high in fiscal 2022 in value terms after rising energy prices and a weaker yen. The country’s trade balance is expected to be negative for the third consecutive year. Imports and exports will rise only slightly, while in value terms, they will both be markedly higher due to higher prices. This suggests that the Bank of Japan will continue to stimulate the economy.

Trading recommendations
  • Support levels: 135.33, 133.53
  • Resistance levels: 137.42, 139.09, 140.75, 143.17, 145.16

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator has become negative, and sellers’ pressure is increasing. Sell deals can be looked for from the resistance level of 137.24, provided that there is a reverse reaction and change in the structure on the intraday time frames. Buy trades are best considered on intraday time frames from the support level of 135.33, but only with confirmation.

Alternative scenario: If the price fixes above 138.00, the uptrend will likely resume.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3654
  • Prev Close: 1.3591
  • % chg. over the last day: -0.46 %

The Bank of Canada made it clear this week that the price appreciation cycle is coming to an end as serious signs of slowing economic growth are emerging. The Canadian dollar is a commodity currency, so it faces further pressure as oil prices continue to decline, hitting new lows since the beginning of the year amid demand and recession fears. This has led investors to return to safe-haven assets such as the US dollar and gold.

Trading recommendations
  • Support levels: 1.3518, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
  • Resistance levels: 1.3658, 1.3682, 1.3682, 1.3776, 1.3855

From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. But the price is trading below the moving averages, and the MACD indicator has become negative. The price is correcting. Buy trades should be considered after a slight pullback from the support level of 1.3518 or 1.3438, but with additional confirmation. For sell deals, it is best to consider the resistance level of 1.3658 but with confirmation in the form of reverse.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.

USD/CAD
There is no news feed for today.

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

The US labor market is beginning to cool down. China’s inflation is falling

By JustMarkets

The US indices rose on Thursday amid a technology sector recovery, despite rising Treasury bond yields. By Thursday’s close, the Dow Jones Index (US30) increased by 0.55%, and the S&P 500 Index (US500) added 0.75%. The technology index NASDAQ (US100) gained 1.13% yesterday. All three indices closed on the plus side.

Initial jobless claims jumped to the highest level since February, an indication that unemployed people need more time to find work. These are the first signs that the labor market is beginning to “cool down,” which in turn will influence the Fed’s monetary policy to slow the pace of rate hikes. The end of the tightening cycle is close. The steep inversion of the Treasury yield curve is a harbinger of recession, which also raises the possibility that the US Federal Reserve will soon take a pause.

Equity markets in Europe traded yesterday without a single trend. German DAX (DE30) gained 0.02%, French CAC 40 (FR 40) declined by 0.20%, Spanish IBEX 35 (ES35) declined by 0.79%, and British FTSE 100 (UK100) closed on Thursday down by 0.23%.

According to analysts, after underestimating the structural uptrend in inflation that began in 2017 amid an emerging labor shortage, the ECB now appears to be overestimating inflationary pressures. The slight decline in euro area inflation to 10% in November from 10.6% in October, largely due to lower oil prices, suggests that the worst of the inflation-induced shocks may be coming soon. So a 50 basis point rate hike on December 15 to 2.5% on the main refinancing rate makes sense. But it does not make sense to keep raising rates in 2023 because the winter recession in Europe will be disinflationary. Falling private consumption will play a big role in this downturn. Germany’s 2.8% monthly drop in retail sales in October may be a harbinger of recession.

Crude oil prices hit a near-one-year low on Thursday. Oil prices will continue to fall as President Vladimir Putin’s administration shows no serious signs of responding to the price cap, leading traders to believe that oil prices will eventually trade close to the $ 60-a-barrel limit.

Asian markets were mostly down yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.40%, Hong Kong’s Hang Seng (HK50) ended the day up by 3.38%, and Australia’s S&P/ASX 200 (AU200) ended the day down by 0.75%.

According to the National Bureau of Statistics of China, the Producer Price Index (PPI) remained unchanged compared to the previous month. November’s Consumer Price Index (CPI) fell to 1.6% year-on-year from 2.1%. This data suggests that economic growth continues to weaken. Growth in the world’s second-largest economy has slowed this year, largely under the influence of uncompromising COVID-19 restrictions.

Australia’s economy is likely to slow in the second half of 2023. Analysts project the Australian economy to contract from 2.6% in 2022 to 1.0% in 2023. Household consumption is projected to decline from about 2% in the first half of 2023 to nearly zero in the second half. Inflation will be 3% lower in 2024 than the RBA’s current forecast of 3.25%, allowing the RBA to cut rates by about 100 basis points in late 2023 and early 2024. The sharp slowdown in economic growth in 2023 will be due in part to the RBA continuing to raise interest rates in the first half of 2023 as wage growth and inflation remain high.

S&P 500 (F) (US500) 3,963.51 +29.59 (+0.75%)

Dow Jones (US30) 33,781.48 +183.56 (+0.55%)

DAX (DE40) 14,264.56 +3.37 (+0.024%)

FTSE 100 (UK100) 7,472.17 −17.02 (−0.23%)

USD Index 104.81 -0.29 (-0.28%)

Important events for today:
  • – China Consumer Price Index (m/m) at 03:30 (GMT+3);
  • – China Producer Price Index (m/m) at 03:30 (GMT+3);
  • – US Producer Price Index (m/m) at 15:30 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Biotech Co.’s Shares Soar to New 52-Week High

Source: Streetwise Reports  (12/7/22)

Prometheus Biosciences Inc. shares traded 170% higher to a new 52-week intraday high after the company reported positive results from two separate Phase 2 clinical studies for its PRA023, an anti-TL1A mAb used to treat inflammatory bowel disease. The company is actively planning to advance PRA023 into Phase 3 trials as a prospective treatment for ulcerative colitis and Crohn’s disease in FY/23.

Clinical-stage biotech company Prometheus Biosciences Inc. (RXDX:NASDAQ), which is engaged in the discovery, development, and commercialization of medicines for use in the treatment of immune-mediated diseases such as inflammatory bowel disease (IBD), today announced “results from its ARTEMIS-UC Phase 2 and APOLLO-CD Phase 2a studies of PRA023 demonstrating strong efficacy and favorable safety results in both studies.”

The firm advised that based upon the data collected during both of these independent Phase 2 trials, it plans to initiate discussions with regulators to move forward with two additional Phase 3 studies of PRA023 in FY/23 for the treatment of Crohn’s disease (CD) and ulcerative colitis (UC).

Prometheus advised that in its Phase 2 ARTEMIS-UC trial, “PRA023 met the primary and all ranked secondary endpoints including clinical, endoscopic, histologic, and patient-reported outcome measures in the initial cohort (Cohort 1) of the trial.”

In the double-blind, randomized ARTEMIS-UC trial, 135 patients with moderate-to-severely active UC who did not respond to prior therapies were treated over a period of 12 weeks with either PRA023 or placebo. The topline data showed that 26.5% of patients on PRA023 successfully achieved the predetermined primary endpoint of clinical remission versus just 1.5% in the control group. Additionally, 36.8% of the patients who receive PRA023 met the key secondary endpoint of endoscopic improvement, compared to 6.0% for those who were administered a placebo.

RXDX shares opened almost 200% higher today at US$105.07 (+US$69.01, +191.38%) over yesterday’s US$36.06 closing price and reached a new 52-week high price this morning of US$111.99.

The firm also reported positive findings in its Phase 2a APOLLO-CD trial, which enrolled a total of 55 patients diagnosed with a moderate-to-severely active CD with endoscopically active disease who also had failed other standard treatment regimens.

Results from the APOLLO-CD study demonstrated that 26.0% of patients who received PRA023 achieved endoscopic response versus the historical average placebo rate of 12%. In addition, 49.1% of trial participants’ patients administered PRA023 achieved clinical remission, compared to the historical placebo group rate of 16%.

Prometheus Biosciences’ Chairman and CEO Mark McKenna commented, “We are beyond enthusiastic with these study results and what they could mean for patients suffering from IBD. The performance of PRA023 in both UC and Crohn’s patients has surpassed our expectations . . . We believe PRA023 and our precision medicine approach [have] the potential to change the paradigm of IBD treatment, and we look forward to discussions with regulatory agencies as we prepare to advance into Phase 3 studies in Ulcerative Colitis and Crohn’s Disease.”

The company’s Chief Medical Officer Allison Luo, M.D. remarked, “PRA023 has clearly demonstrated clinical proof-of-concept in CD and remarkable efficacy for the treatment of UC . . . We look forward to further evaluating PRA023 in Phase 3 studies with the goal of bringing this promising candidate to the market.”

The firm explained that “PRA023 is an IgG1 humanized monoclonal antibody that has been shown to block tumor necrosis factor (TNF)-like ligand 1A (TL1A).” The company indicated that PRA023 shows the potential to substantially improve outcomes for patients with moderate-to-severe IBD in those persons predisposed to increased TL1A expression. In addition to prospective uses in the treatment of UC and CD, Prometheus is also investigating and developing PRA023 for use in treating systemic sclerosis-associated interstitial lung disease (SSc-ILD).

Prometheus Biosciences is a clinical-stage biotechnology firm based in San Diego, Calif., that is focused on discovering, developing, and commercializing novel therapeutics to treat immune-mediated diseases. The firm has created a precision medicine platform called Prometheus360™, which utilizes machine learning technology to query gastrointestinal bioinformatics databases to identify potential new therapeutic targets. The firm’s activities were initially focused mostly on gastrointestinal (GI) diseases such as IBD, but it is now expanding its efforts to target other autoimmune diseases.

Prometheus Biosciences started off the day with a market cap of around US$1.51 billion, with approximately 41.94 million shares outstanding and a short interest of about 11.6%. RXDX shares opened almost 200% higher today at US$105.07 (+US$69.01, +191.38%) over yesterday’s US$36.06 closing price and reached a new 52-week high price this morning of US$111.99. The stock has traded today between US$95.50 and US$111.99 per share and is currently trading at US$97.82 (+US$61.76, +171.27%).

Disclosures:

1) Stephen Hytha wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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60% stocks, 40% bonds? Ha!

So much for the conventional wisdom of the “balanced portfolio”

By Elliott Wave International

In his February 2022 book, Last Chance to Conquer the Crash, Robert Prechter said:

Countless advisors have counseled “diversification,” a “balanced portfolio” and other end-all solutions to the problem of allocating your investments. These approaches are delusional. … No investment strategy will provide stability forever.

That certainly has applied to the classic 60% stocks / 40% bonds portfolio this year.

On Oct. 14, a Reuters headline said:

’60/40′ Portfolios Are Facing Worst Returns in 100 Years: BofA

Of course, everyone knows that stocks are risky, but many investors expect bonds to provide a cushion in case equities slide into a downtrend. And, indeed, the stock market has been trending lower since January.

But bond prices have taken a hit, too. A BIG one. As you probably know, bonds prices decline when yields rise and that’s what’s taken place.

You may find it hard to believe, but Elliott wave patterns and sentiment readings in the bond markets warned of this. For example, the July 2021 Elliott Wave Theorist, a monthly publication (since 1979) which analyzes financial markets and major cultural trends, showed this chart and said:

U.S. Treasury bill rates have edged closer and closer to zero for over a year. The complacency about the nonexistent T-bill yield in the face of unprecedented inflating by the government and the Fed is truly amazing. … The Fed’s cavalier inflating is borne of optimism. … When optimism and complacency finally melt like popsicles in the sun, the lines in [the chart] will turn up.

During that same month / year (July 2021), The New York Times ran this headline:

Federal Reserve Officials Project Rate Increases in 2023 [emphasis added]

This next chart of the 6-month U.S. Treasury bill yield, which published in the Nov. 18, 2022 Elliott Wave Theorist, shows what we all know: Rates began to turn up more than a year before 2023 and then soared higher.

The question now is: What’s next?

Elliott wave analysis answered this question before, and it can help you answer it now.

You can read more about what Elliott Wave Theorist editor, and EWI Founder, Robert Prechter expects next in the Special Report: Preparing for Difficult Times. The report is free — for a limited time — inside their “12 Days of Elliott” event. You need only join Club EWI to read it, along with 11 other fascinating resources, December 1-12.

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How do floating wind turbines work? With 5 companies winning the first US leases to build wind farms off California’s coast, let’s take a look

By Matthew Lackner, UMass Amherst 

Northern California has some of the strongest offshore winds in the U.S., with immense potential to produce clean energy. But it also has a problem. Its continental shelf drops off quickly, making building traditional wind turbines directly on the seafloor costly if not impossible.

Once water gets more than about 200 feet deep – roughly the height of an 18-story building – these “monopile” structures are pretty much out of the question.

A solution has emerged that’s being tested in several locations around the world: wind turbines that float.

In California, where drought has put pressure on the hydropower supply, the state is moving forward on a plan to develop the nation’s first floating offshore wind farms. On Dec. 7, 2022, the federal government auctioned off five lease areas about 20 miles off the California coast to companies with plans to develop floating wind farms. The bids were lower than recent leases off the Atlantic coast, where wind farms can be anchored to the seafloor, but still significant, together exceeding US$757 million.

So, how do floating wind farms work?

Three main ways to float a turbine

A floating wind turbine works just like other wind turbines – wind pushes on the blades, causing the rotor to turn, which drives a generator that creates electricity. But instead of having its tower embedded directly into the ground or the seafloor, a floating wind turbine sits on a platform with mooring lines, such as chains or ropes, that connect to anchors in the seabed below.

These mooring lines hold the turbine in place against the wind and keep it connected to the cable that sends its electricity back to shore.

Most of the stability is provided by the floating platform itself. The trick is to design the platform so the turbine doesn’t tip too far in strong winds or storms.

An illustration of each in an ocean, showing how lines anchor it to the seafloor.
Three of the common types of floating wind turbine platform.
Josh Bauer/NREL

There are three main types of platforms:

  • A spar buoy platform is a long hollow cylinder that extends downward from the turbine tower. It floats vertically in deep water, weighted with ballast in the bottom of the cylinder to lower its center of gravity. It’s then anchored in place, but with slack lines that allow it to move with the water to avoid damage. Spar buoys have been used by the oil and gas industry for years for offshore operations.
  • Semisubmersible platforms have large floating hulls that spread out from the tower, also anchored to prevent drifting. Designers have been experimenting with multiple turbines on some of these hulls.
  • Tension leg platforms have smaller platforms with taut lines running straight to the floor below. These are lighter but more vulnerable to earthquakes or tsunamis because they rely more on the mooring lines and anchors for stability.

Each platform must support the weight of the turbine and remain stable while the turbine operates. It can do this in part because the hollow platform, often made of large steel or concrete structures, provides buoyancy to support the turbine. Since some can be fully assembled in port and towed out for installation, they might be far cheaper than fixed-bottom structures, which require specialty vessels for installation on site.

Floating platforms can support wind turbines that can produce 10 megawatts or more of power – that’s similar in size to other offshore wind turbines and several times larger than the capacity of a typical onshore wind turbine you might see in a field.

Why do we need floating turbines?

Some of the strongest wind resources are away from shore in locations with hundreds of feet of water below, such as off the U.S. West Coast, the Great Lakes, the Mediterranean Sea and the coast of Japan.

Map showing offshore wind potential
Some of the strongest offshore wind power potential in the U.S. is in areas where the water is too deep for fixed turbines, including off the West Coast.
NREL

The U.S. lease areas auctioned off in early December cover about 583 square miles in two regions – one off central California’s Morro Bay and the other near the Oregon state line. The water off California gets deep quickly, so any wind farm that is even a few miles from shore will require floating turbines.

Once built, wind farms in those five areas could provide about 4.6 gigawatts of clean electricity, enough to power 1.5 million homes, according to government estimates. The winning companies suggested they could produce even more power.

But getting actual wind turbines on the water will take time. The winners of the lease auction will undergo a Justice Department anti-trust review and then a long planning, permitting and environmental review process that typically takes several years.

Maps showing the locations off Moro Bay, north of Santa Barbara, and Eureka, near the Oregon border.
The first five federal lease areas for Pacific coast offshore wind energy development.
Bureau of Ocean Energy Management

Globally, several full-scale demonstration projects with floating wind turbines are already operating in Europe and Asia. The Hywind Scotland project became the first commercial-scale offshore floating wind farm in 2017, with five 6-megawatt turbines supported by spar buoys designed by the Norwegian energy company Equinor.

Equinor Wind US had one of the winning bids off Central California. Another winning bidder was RWE Offshore Wind Holdings. RWE operates wind farms in Europe and has three floating wind turbine demonstration projects. The other companies involved – Copenhagen Infrastructure Partners, Invenergy and Ocean Winds – have Atlantic Coast leases or existing offshore wind farms.

While floating offshore wind farms are becoming a commercial technology, there are still technical challenges that need to be solved. The platform motion may cause higher forces on the blades and tower, and more complicated and unsteady aerodynamics. Also, as water depths get very deep, the cost of the mooring lines, anchors and electrical cabling may become very high, so cheaper but still reliable technologies will be needed.

But we can expect to see more offshore turbines supported by floating structures in the near future.

This article was updated with the first lease sale.The Conversation

About the Author:

Matthew Lackner, Professor of Mechanical Engineering, UMass Amherst

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

Resource Co. Completes 2022 Drilling and Receives US$895 Million

Source: Streetwise Reports  (12/7/22)

Canadian-based Skyharbour Resources has announced it plans to complete a 10,000m drill program at its Russell Lake property. It has also recently received US$895 million from the exercise of share purchase warrants. Read here to learn more about the project and where the company is headed for 2023.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) is a Canadian-based exploration company. The company is focused on acquiring and advancing uranium exploration projects in Canada’s Athabasca Basin.

Why Uranium?

Uranium is an element that is mainly used to provide nuclear energy. Because of its radioactive properties, it can manufacture a tremendous amount of emissions-free energy. It is also considered more reliable than other emissions-free energy sources such as wind and solar. The outlook around the nuclear and uranium mining industries has changed significantly over the past several years and continues to improve.

While uranium has taken a dip in the past, recent news has led to its rise with the worldwide push to green energy, inflated energy costs, and the war in Ukraine. This August, Japan’s prime minister announced they would restart more idled nuclear plants and look at developing next-generation reactors. At this announcement, Forbes reported, “The Global X Uranium ETF surged 11.5%.”

Source: Skyharbour Resources.

The United States also has leaned into green energy. Currently, 20% of the electricity and 50% of the clean energy in the United States is nuclear, and this number seems to be on a path to only getting bigger.

On July 5, 2022, The New York Times reported that “the Biden administration has established a US$6 billion fund to help troubled nuclear plant operators keep their reactors running and make them more economically competitive against cheaper resources like solar and wind power.” The administration also is alluding US$2.5 million to fund two projects intended to showcase new nuclear technology.

Rajeev identified “the ongoing/planned exploration programs by Skyharbour and its partners” as major catalysts toward the company’s impending growth” and said that “as a result, Fundamental Research maintains its Buy recommendations for Skyharbour.”

This October 2022, the Biden administration also announced they would be providing US$150 million to improve nuclear research and development infrastructure at Idaho National Laboratory as a part of President Biden’s Inflation Reduction Act.

U.S. Secretary of Energy Jennifer M. Granholm commented that the Department of Energy “is taking critical steps to strengthen domestic nuclear development and deployment — helping ensure the United States is on track to reach a clean energy future.”

This, of course, leads to more uranium demand, or as Forbes said, “with many major nations rethinking their approach to clean, affordable energy, nuclear power plants are an obvious option. That’s good news for uranium investors, as more nuclear power means more demand for the radioactive metal.”

Skyharbour’s Plethora of Projects

Skyharbour Resources has been active in the Athabasca Basin since 2013 and has a myriad of projects, including Moore, Russell Lake, South Falcon Point, South Falcon East, Preston, East Preston, Hook Lake, Mann Lake, Yurchison, Riou River, Pluto Bay, Wallee, Usam Island, Foster River, West Dufferin, and South Dufferin.

Management noted that “Skyharbour holds an extensive portfolio of uranium exploration projects in Canada’s Athabasca basin and is well positioned to benefit from improving uranium market fundamentals with 15 projects, 10 of which are drill ready, covering over 450,000 hectares of land.”

Skyharbour estimates that over 30,000 meters of exploratory drilling will take place between all of its Athabasca Basin projects — including its two core assets and its multiple partner-funded projects — over the course of the next year. The company plans to dedicate a third of this work toward its flagship projects in Russell Lake and Moore Lake and is fully funded to conduct this work.

Catalyst: Plans to Break Ground at Russell Lake

Rio Tinto Plc. (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK), whose asset focus lies primarily in iron and copper, temporarily shelved the Russell Lake project. Rio has since optioned the project to Skyharbour, which plans to engage in advanced-stage exploration by drill testing “a number of the prospective targets [that] weren’t fully and systematically drill tested,” according to CEO Jordan Trimble. It wasn’t until a recent “resurgence in uranium and the nuclear industry” Trimble suggested that the industrial metals giant was willing to option the project to Skyharbour.

In resuming operations on the Russell Lake project, Skyharbour assumes the 40-person exploration camp previously used by Rio. Trimble believes that the inheritance and use of this asset for staging purposes “will bring [its]  drill costs down quite a bit, not just at Russell Lake, but also at the adjacent Moore Lake Project.”

A summer’s night at Russell Lake’s camp in the Athabasca Basin. Source: Skyharbour Resources.

On November 23, the company announced it will carry out multiple phases of diamond drilling totaling 10,000 meters at Russell Lake. It plans on breaking ground sometime within the next month.

This minimum 10,000-meter exploration program will be carried out concurrently with Skyharbour’s multiple partner-funded uranium-drilling program at some of its other projects in the Athabasca Basin.

Analyst Sid Rajeev of Fundamental Research noted that Russell Lake “is strategically located between Cameco’s Key Lake mill and MacArthur uranium mine,” such that Skyharbour has a direct and rapid processing line between “the world’s largest uranium mill and the largest high-grade uranium mine.”

Catalyst: 2022 Drilling Complete at Mann Lake

At the end of last month, the company announced its partner company Basin Uranium Corp. had completed drilling at Mann Lake for 2022. 6,279 meters were drilled. Core samples have been submitted for analysis to the Saskatchewan Research Council (SRC).

As they hold steady for the assay results, Skyharbour’s partner company Basin Uranium plans to continue its exploration programs at it Mann Lake project in the Athabasca Basin in 2023.

Rajeev identified “the ongoing/planned exploration programs by Skyharbour and its partners” as major catalysts toward the company’s impending growth” and said that “as a result, Fundamental Research maintains its Buy recommendations for Skyharbour.”

Catalyst: Skyharbour Receives US$895 Million

Friday, Skyharbour announced it had received US$895,027.32 from the exercise of share purchase warrants with a strike price of US$0.22 since June 29, 2022. 4,068,306 of the warrants have been exercised, with this batch of warrants expiring on Nov. 29, 2022.

Furthermore, the company noted that “collectively, Skyharbour has now signed option agreements with partners that total over US$34 million in partner-financed exploration expenditures, over US$22 million in stock being issued and just under US$15 million in cash payments coming into Skyharbour, assuming that these partner companies earn in the full amounts at their respective projects.”

Ownership and Share Structure

Skyharbour’s management owns approx. 5% of the company’s 145 million marketable shares. CEO Trimble owns 2.514 million shares of Skyharbour, maintaining a 1.73% stake. Director David Cates’ 1.247 million shares constitute an additional 0.86% management stake. Mr. Cates is the President and CEO of Denison Mines, a larger uranium developer that is a strategic partner and shareholder of Skyharbour Resources.

Aside from the aforementioned Denison and Rio Tinto, notable strategic and institutional investors in the company’s growth include the Global X and Sprott Uranium ETFs, Extract Capital, L2, Sachem Cove, and Sprott Capital Partners.

It is also worth noting that Skyharbour maintains a minority equity stake in several of its other option and joint-venture partner companies. Skyharbour has signed option agreements over the last several years with partners that total approx. CA$22 million worth of shares being issued between Azincourt Energy, Valor Resources, Basin Uranium, Medaro Mining, Yellow Rocks Energy, and Tisdale Clean Energy — the companies behind Skyharbour’s partnerships in East Preston, Hook Lake, Mann Lake, Yurchison, Wallee/Usam, and South Falcon East respectively.

The company’s burn rate is US$110,000. It has over US$6M in the treasury, with another approximately US$2.5 million expected to come in from option partner payments and shares in the next 12 months.

Skyharbour has a market cap of US$39 million and 144.99 million outstanding shares. It has 138.45 million shares in the public float and trades in the 52-week range at between US$0.2223 and US$0.6558 per share.

Disclosures:
1) Katherine DeGilio and Thomas Griffin wrote this article for Streetwise Reports LLC, and Thomas Griffin provides services to Streetwise Reports as an independent contractor. They or members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Skyharbour Resources Ltd. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.  As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd., a company mentioned in this article.

Analyst: Timing Perfect for Nevada Lithium Project

Source: Streetwise Reports  (12/7/22)

Rover Metals Corp. is making the jump from gold to lithium and critical elements. One analyst said the timing is perfect.

The timing of Rover Metals Corp. (ROVR:TSX.V; ROVMF:OTCQB; 4X0:FSE) move from gold to lithium and critical elements is perfect, an analyst said, as other projects near its new Let’s Go Lithium project in Nevada are “ripe for consolidation.”

Let’s Go Lithium is estimated to hold lithium-bearing clay mineralization similar to other advanced-stage deposits held in the state by Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE), American Lithium Corp. (LIACF:US-OTC; LI:TSX.V; 5LA1:FSE), and Noram Lithium Corp. (NRM:TSX.V).

Economic studies on Cypress’ and Noram’s projects have returned “robust economics,” according to Sid Rajeev, head of research for Fundamental Research Corp.

“We believe miners/battery manufacturers are actively monitoring juniors for M&A, as they are constantly seeking long-term stable sources of lithium for EV (electric vehicle) batteries,” Rajeev wrote in a note on December 1, 2022.

Rover Chief Executive Officer and Director Judson Culter said the company was open to such transactions.

“The battery producers want mines being built ASAP,” Culter told Streetwise Reports. “The bigger the resource companies are, the easier it will be for them to capitalize and build refineries.”

The World Needs More Lithium

According to Benchmark Mineral Intelligence, the deficit between lithium demand and production and highly probable and probable lithium projects will be over 3.5 million tonnes (Mt) by 2040. The world needs lithium and other critical elements like copper to help fuel the move to green energy. Lithium — a soft, silvery metal with highly reactive and flammable properties — is a major component of EV batteries. It’s also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.

One out of five vehicles sold worldwide could be an EV in less than two years, and Ford and General Motors have set a goal of achieving 40–50% of their sales from EVs in the U.S. by 2030.

To qualify for tax credits under new U.S. laws, a significant percentage of batteries and minerals in batteries must come from the U.S. or Canada, a regional trade-treaty country.

China only has less than a quarter of the world’s lithium resources but controlled about two-thirds of the world’s lithium processing and refining capacity in 2021, Rystad Energy said.

The Catalyst: Lithium

Rover has signed a definitive agreement to option a 100% ownership interest in the Let’s Go Lithium project. It’s located in Nevada’s southwest lithium jurisdiction near Albemarle Corp.’s (ALB:NYSE) Silver Peak mine, which is the only lithium-producing mine in North America.

The company plans to convert the project into an NI 43-101-compliant resource within two years and plans to conduct a drill program. Rajeev said that “delineating a lithium resource is a faster and cheaper process vs. mainstream metals such as gold [and] copper.”

Unlike other metals, lithium is deposited in “a vast amount close to the surface,” Culter said. “In gold and copper, you typically have to chase shoots or veins of the high-grade (ore), which are narrow (and go) to great depths. These are very tricky to follow below the surface.”

The climate and energy package recently passed in the United States is bringing new urgency to the production of electric vehicle (EV) metals and minerals like lithium. Rover officials said they want to be positioned to take advantage of that.

Rover last summer announced it had also closed on a deal involving the Indian Mountain Lake copper and zinc project in the Northwest Territories. It had verified high-grade lithium surface samples at Let’s Go Lithium of 780 parts per million lithium (ppm Li), 910 ppm Li, and 710 ppm Li.

Further analysis of samples using handheld laser-induced breakdown spectroscopy found results of 1,218 ppm Li, 778 ppm Li, and 724 ppm Li.

Culter said the company is readying a US$200,000 reverse-circulation drill program to follow up on those high-grade samples. That exploration money will also be the company’s required earn-in to a 100% ownership of the project.

Rajeev said Fundamental was maintaining its Buy rating on Rover.

The later-stage greenfields lithium project includes hydro power lines, direct road access, and a nearby town with a readily available workforce, the company said.

There have been four historical water wells drilled on the project that logged the claystone orebody as being close to surface, with an average thickness of over 300 feet across the approximate 6,000 acres of the property. Because of that, the project is district-scale in nature, Culter said.

Cypress is producing a feasibility study looking at the commercial viability of producing lithium carbonate for EV batteries from Nevada claystone like at Let’s Go Lithium.

Albemarle Corp.’s Silver Peak mine in Nevada is the only lithium-producing mine in North America, but it uses a water-intensive process to get at lithium-bearing brine deposits in an area that’s seeing record droughts. The claystone method uses acids to process lithium-bearing clay.

Rajeev said Fundamental was maintaining its Buy rating on Rover but adjusting its fair value estimate for its share price from CA$1.14 down to CA$0.56. It was CA$0.10 per share on Tuesday afternoon.

Ownership and Share Structure

Culter and family members own about 2 million shares of Rover, and directors Keith Minty and Louis Covello own about 360,000 and about 50,000, respectively. There are no institutional shareholders, and the rest are retail.

Rover’s market cap is CA$2.63 million, and it has 26.3 million shares outstanding, 24.9 million of them free-floating. It trades in a 52-week range of CA$0.39 and CA$0.06.

Disclosures:

1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Rover Metals Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Rover Metals Corp., a company mentioned in this article.