Ford Lays Off Hundreds Of Engineers

Ford Lays Off Hundreds Of Engineers

Ford is now the latest U.S. company to announce sweeping layoffs, with Bloomberg reporting this week that the auto manufacturer plans to lay off “hundreds of salaried workers” that are primarily engineers. Monetary policy continues to work wonders.

The layoffs are part of a plan to boost profits and lower operating costs as the company shifts toward EVs, the report says. And after all, who needs engineers when you can adopt Tesla’s technology, like Ford announced it would be doing with charging standards just weeks ago?

The cuts will be to engineers in EVs, traditional combustion engine models and commercial vehicles, the company said. The layoffs will number in the hundreds, despite CEO Jim Farley claiming earlier this year the company would need 25% more engineers than rivals to produce its EVs. 

The company expects to lose $3 billion in 2023 on its EV business but hopes for 8% returns on battery powered models by the end of 2026. Ford plans on building 2 million EVs per year by that point. 

T.R. Reid, a company spokesman, told Bloomberg: “We’re not cost competitive. We have specific priorities and ambitions that have implications for skills, assignments and staffing needs. These changes are consistent with that. They’ll make us cost effective.”

Tesla has forced many EV manufacturers to think closer about costs, with Elon Musk’s company starting 2023 by slashing prices on its best selling models, successfully stoking much-needed demand to maintain its dominance in the EV market. 

And it looks as though Tesla is still spearheading the industry for the time being. Recall, as part of Ford’s shift to EVs, it announced its customers would be able to tap into Tesla’s 12,000 Superchargers. 

“This is great news for our customers who will have unprecedented access to the largest network of fast chargers in the US and Canada with 12,000+ Tesla Superchargers plus 10,000+ fast-chargers already in the BlueOval Charge Network,” said Jim Farley, Ford president and CEO, at the time. 

“Widespread access to fast-charging is absolutely vital to our growth as an EV brand, and this breakthrough agreement comes as we are ramping up production of our popular Mustang Mach-E and F-150 Lightning, and preparing to launch a series of next-generation EVs starting in 2025.”

Tyler Durden
Tue, 06/27/2023 – 15:00

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Watch: Biden Trans ‘Health’ Official Says Gender-Affirming Care For Kids Is ‘Literally Suicide Prevention’

Watch: Biden Trans ‘Health’ Official Says Gender-Affirming Care For Kids Is ‘Literally Suicide Prevention’

Authored by Steve Watson via Summit News,

‘Admiral’ Rachel Levine, The Biden administration’s transgender Assistant Secretary for Health, has declared that “gender-affirming care” (blocking puberty, removing genitals, or adding fake genitals) is necessary to keep people, including children, mentally healthy and to stop them from killing themselves.

Yes, really.

It’s such an important issue for our youth and adults,” Levine stated in the video produced by the U.S. Department of Health and Human Services, adding “We often say that gender-affirming care is health care—gender-affirming care is mental health care—and gender-affirming care is literally suicide-prevention care.”

The comment came during an awkward discussion with an extremely young ‘trans activist’ and ‘musician’.

Levine also claimed that those who oppose lopping off kids’ private parts have “weaponised” the term “gender affirming care”.

A few months ago, Levine emphasised that sex-change operations on children, which also involve sterilisation the case of boys, are supported at “the highest levels” of the Biden administration, and hoped that they become a normal everyday occurrence.

Levine also previously described such practices as “empowering,” vowing that the administration will continue to push for the procedures to be available in all states.

Related:

Video: Trump Vows To “Sign A Law Prohibiting Child Sexual Mutilation In All 50 States”

Levine also declared during the latest video that ‘Pride’ should not just be celebrated for one month only and that it should instead be an entire “Summer of pride.”

The entire fifteen minute debacle is here, if you can stomach it. The comments have mysteriously been turned off. Wonder why?

Twitter doesn’t turn off comments:

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Tyler Durden
Tue, 06/27/2023 – 14:40

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Morgan Stanley Sees First Negative Payroll Print In August Or September

Morgan Stanley Sees First Negative Payroll Print In August Or September

Just a few weeks after Morgan Stanely declared that the Fed’s hiking cycle was over, this morning the bank’s chief economist Ellen Zentener pulled a sudden U-turn, and conceded that “the bar for a July hike is significantly lower than we had initially expected and have added a 25bp hike to our policy path. The revision is a level shift upward to 5.375% fed funds end-23, and 4.375% end-24.”

And in a conclusion that will infuriate her chief equity strategist Mike Wilson, who as noted yesterday, expects stocks to tumble in the second half to fresh cycle lows (i.e., around 3,600) as a hard landing recession slams stock earnings, Zentner said that she continues to see “a soft landing staving off rate cuts to next year.”

Yet in a typical sellside plot twist, Zentner’s assessment is hardly the bullish take a superficial read of her notes suggest: after all, by now it is common knowledge that the Fed’s aggressive rate hikes have just one purpose – to accelerate the recession and contain the inflation the Fed’s policies triggered in 2020/21. In this context, Morgan Stanley adding another rate hike to its forecast after previously calling it a day on the Fed’s hiking calendar, means that the bank now expects the economy to enter stall speed that much faster.

Zentner confirmed as much, writing over the weekend that a question that has come up in all of the bank’s client meetings last week was “when do they expect to see the first negative payroll print”?

In response, she says that she now forecasts a significant slowdown in monthly nonfarm payroll (NFP) growth this year that falls below the 90k replacement rate in 4Q23,and bottoms in January 2024 at 40k before gradually improving to 72k/month in 2024. With job growth that slow, Zentner warns that “is highly likely that at least one of those prints will be negative, especially since prior to Covid just one standard deviation on total nonfarm payroll growth was ~200k.”

This means that either August or September could mark the first negative payroll print, according to MS. The chart below shows the bank’s NFP forecasts with confidence intervals that are constructed using historical consensus forecast errors. In particular, the error bands are two standard deviation bands using consensus forecast error volatility from 2010 to 2019 (one standard deviation band of the consensus forecast error is 75k). Using this method, August is on the line and September is the first time the band moves into negative territory.

This matters because according to Zentner, “on a negative payroll print this year, risk-off sentiment in financial markets may soar, especially as investors remain on recession watch despite the strengthening soft-landing story.” Worse, in typical fashion, the Fed is unlikely to be quick to react: “this can make the FOMC at times seem tone deaf to the incoming data, though it is more likely a reflection of a Committee that makes low-frequency decisions in a high-frequency world. A negative payroll print could be a one-off, more supporting evidence could be needed,and that takes time.”

More in the full note available to pro subs.

Tyler Durden
Tue, 06/27/2023 – 14:20

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Gold’s Steady Migration From West To East

Gold’s Steady Migration From West To East

Authored by Michael Maharrey via SchiffGold.com,

There has been a steady migration of gold from West to East over the last three decades.

When the World Gold Council published its first Gold Demand Trends report 30 years ago, Asian demand made up 45% of the world’s total. Today, the Asian share of global gold demand is approaching 60%.

China and India have driven this migration of gold East. The World Gold Council describes the two countries as “super consumers” of gold. Thirty years ago, China and India accounted for about 20% of annual consumer gold demand. Today, the two countries make up nearly 50% of gold demand.

The Indian gold revolution started in the early to mid-1990s when government policy changes freed up the market. In 1992, gold demand in India accounted for 340 tons. In 2022, that had more than doubled to 742 tons.

India now ranks as the second-largest gold-consuming country in the world behind China.

Gold is not just a luxury in India. Even poor people buy gold in the Asian nation. According to an ICE 360 survey in 2018, one in every two households in India purchased gold within the last five years. Overall, 87% of households in the country own some amount of the yellow metal. Even households at the lowest income levels in India own some gold. According to the survey, more than 75% of families in the bottom 10% had managed to buy gold.

Indians traditionally buy and hold gold. Collectively, Indian households own an estimated 25,000 tons of gold and that number may be higher given the large black market in the country. The yellow metal is interwoven into the country’s marriage ceremonies and cultural rites. Indians also value gold as a store of wealth, especially in poor rural regions. Two-thirds of India’s gold demand comes from these areas, where most people live outside the official tax system.

We’ve seen a similar trajectory in China. The country also has played a significant cultural role in China, but through the last half of the 1900s, Chinese individuals were banned from buying gold. The government eased restrictions in the 1990s, and in 2002, the Shanghai Gold Exchange. Within two years, the market was completely liberalized.

China’s annual gold consumption rose fivefold from just over 375 tons in the early 1990s to a record high of 1,347 tons in 2013. Since then, China has ranked as the world’s largest gold-consuming country.

Economic growth has helped spur demand for gold in the East. As the World Gold Council explained, “This surge in demand was not just an expression of exuberance by Chinese investors free to buy gold. It was also driven by explosive economic growth, rapid urbanization and the desire for a simple alternative to the limited range of investments available domestically. The industry, acknowledging this desire for gold investment products, responded with innovation and speed.”

In other words, rising affluence is intersecting with the East’s traditional affinity for gold.

Turkey, Thailand and Saudi Arabia have also reported increased imports of gold in recent years.

We also see the eastward shift of gold in central bank gold buying. The biggest buyers in recent years have all been in the East. Countries steadily increasing gold reserves include China, India, Turkey, and Singapore.

We saw the migration of gold from West to East on a micro level in late 2022.  Many Western investors – particularly at the institutional level – were dumping bullion. Meanwhile, Asian buyers took advantage of lower prices to snap up less expensive jewelry, coins, and bars.

According to a fall 2022 Bloomberg report, “large volumes of metal are being drawn out of vaults in financial centers like New York and heading east to meet demand in Shanghai’s gold market or Istanbul’s Grand Bazaar.”

New York and London vaults reported an exodus of more than 527 tons of gold between April and October 2022, according to data from the CME Group and the London Bullion Market Association. At the same time, gold imports into China hit a four-year high in August 2022.

In the East, many people use gold as their primary form of savings and wealth preservation. An article published by Seeking Alpha summarizes this dynamic.

For millions of people in Asia gold still is the ‘basic form of saving.’ In contrast to the West, where financialization started decades ago, and gold has slowly been removed from people their day-to-day lives. Until a financial crisis emerges, that is. In the West, people own little or no physical gold when they feel financially confident. People in the East have retained a long-term view concerning gold. Their ancestors saved in gold, and so have they been taught. With the knowledge that ultimately, gold doesn’t lose its purchasing power.”

Trying to get gold when a crisis rears its ugly head is a little like trying to get insurance when your house is on fire.

Western investors spurn gold to their own detriment.

Tyler Durden
Tue, 06/27/2023 – 14:00

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Watch: New York Pride March Chants “We’re Coming For Your Children”

Watch: New York Pride March Chants “We’re Coming For Your Children”

There has been ample media discourse over red states in the US moving swiftly to prevent gender ideology and LGBT activism from being implemented in public schools and spaces with young children. The bulk of the narrative has been highly critical, with conservatives being accused of “blowing the issue out of proportion” and oppressing the rights of trans people.  A standard refrain from trans activists is that “no one is coming for your kids, so stop being paranoid.”  

And yet, these people just can’t seem to keep a secret.  A New York pride march says the quiet part out loud as they chant “We’re here, we’re queer, we’re coming for your children.”

Far from being a natural inclination among people towards gender dysphoria that they feel they need to express for the sake of their mental health, the trans movement is mostly composed of “trans trenders” – People joining a political movement simply because they want to feel like they belong.  The effects of this trend are becoming increasingly obvious in blue state public schools.

The state of New Jersey has been one of the most aggressive blue havens by far when it comes to gender ideology in education.  NJ started out with district rules that they said were designed to prevent discrimination against “trans students.”  These rules included the use of preferred pronouns being encouraged by staff.  Eventually, the policies expanded to include numerous gender based lesson plans and programs, and restrictions on teachers requiring them to keep student trans identities a secret from parents

The proof is in the pudding – NJ’s student population polled anonymously started 2019-2020 with only 16 trans identifying kids.  Three years later after gender ideology programs were widely introduced, the trans population of students skyrocketed to 675; that’s a 4000% increase.

Gender based lessons in NJ have been accused by parent groups of being anti-biology and as well as graphic and inappropriate for the age groups they are aimed at.  NJ schools have been exposed in the past for engaging in sexualized lessons and gender ideology propaganda for kids as young as kindergarten.  New Jersey standards mandate that:

By the end of the second grade, students should understand the ways people express their gender and how gender-role stereotypes may limit behavior.

Fifth graders learn about romantic and sexual feelings, masturbation, mood swings, and the timing of puberty.     

And eighth graders should know the definitions of vaginal, oral, and anal sex and identify short and long-term contraception and safer sex methods.       

In Oregon, multiple school districts now require children from kindergarten age to go through gender identity and sexual orientation training.  The lessons align with statewide standards, though some school districts are resisting the curriculum. 

In California, school districts are now encouraged to promote pornographic LGBT content in books such as ‘Gender Queer’.  Democrats say the books are meant to help students “explore their sexuality,” but is this a something that teachers and district leaders need to be concerned about? 

The bottom line?  When a predatory person or group tells you who they are and what they want, believe them.

Tyler Durden
Tue, 06/27/2023 – 13:40

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Oregon Voters Will Decide Whether To Embrace Ranked-Choice Voting

Oregon citizens will soon have the chance to shift their elections to a ranked-choice voting system. On Sunday, Oregon’s legislators approved sending H.B. 2004 to the voters in 2024. If the referendum passes, federal and statewide elections will shift to a ranked-choice system. Counties and cities will also be permitted to implement ranked choice for many local elections.

On ranked-choice ballots, voters don’t just choose one candidate for office (though they can if they want). Instead, they rank candidates in order of preference. To win a ranked-vote election, a candidate must receive more than 50 percent of the vote. If no candidate wins a majority in the first tally, the votes are tallied again, but the candidate with the fewest votes is excluded. For voters whose first choice was the ejected candidate, their second choice becomes their vote in the second tally. This process continues until one candidate gets a majority of the vote.

Ranked-choice voting has been adopted in Maine, Alaska, New York City, and other locales. FairVote, a non-profit that advocates for implementing ranked-choice voting systems, has a map here.

If voters approve, Oregon will be the first state to implement ranked choice with the legislature’s support. In Maine and Alaska, it was implemented via ballot initiative, and in Maine, it had to overcome significant legal resistance from some Republican politicians. In Alaska, the implementation of ranked-choice voting led to the election of the first Democrat in 50 years to Congress. That’s because Republican candidate Sarah Palin is such a divisive figure even in her state that many voters who top-ranked another Republican candidate (Nick Begich) declined to choose Palin as their second choice. As a result, Democrat Mary Peltola won the seat, prompting Palin and some other Republicans to attack ranked-choice voting’s legitimacy. Lawmakers in Florida and Tennessee have banned ranked-choice voting in their states (in Tennessee’s case, overruling the will of Memphis voters who supported it).

But lest anybody think it’s just Republicans opposed to a particular election system, you’ll find opposition in places where one party’s operatives have much control over which candidates are put before the voters. In New York City, prominent Democratic leaders attempted to stall the implementation of ranked-choice voting that citizens approved in 2021. Before Eric Adams was elected mayor, he criticized ranked-choice voting.

And in Washington, D.C., the local Democratic Party also rejects using ranked-choice voting for city elections. Party leadership voted against it in 2021, and they rejected it again earlier this year, putting out a statement that said, in part, “Our priority is to ensure that every vote is counted and that the voice of each voter is accurately represented, without introducing additional complexities that could hinder voter engagement and participation.”

But there’s little evidence that ranked-choice voting hinders voter engagement and participation. FairVote notes New York City saw its highest turnout in 30 years when ranked-choice voting debuted in its 2021 primaries. The group points to several other locations that saw increased turnout after implementing ranked-choice voting. Voters who have filled out a ranked-choice ballot say they are not confused by the system.

Ranked-choice voting gives some teeth to voters who don’t want to support divisive candidates or campaigns propped up by the machinations of local party officials. It is not some electoral silver bullet. Nothing is. But the goal of ranked-choice voting is to elect candidates most voters are willing to live with. Not for nothing, the system also allows voters to support third-party candidates without worrying that they’re throwing their votes away.

 

The post Oregon Voters Will Decide Whether To Embrace Ranked-Choice Voting appeared first on Reason.com.

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Biden’s $42 Billion Broadband Boondoggle

President Joe Biden has rolled out his Broadband Equity, Access, and Deployment (BEAD) plan, which will be subsidized by $42 billion from the Infrastructure Investment and Jobs Act of 2021. That is an obscene amount of money to invest in technology that will be obsolete by the time it’s built.

Nailing down internet service statistics is fraught, but let’s look at various reports to get some idea of what’s happening.

The stated goal of BEAD is to “connect everyone in America to reliable, affordable high-speed internet by the end of the decade.” The billions in subsidies are being divvied up among the states and territories based on the number of households without access to broadband service. The administration estimates that 8.5 million households and small businesses are in areas without high-speed internet infrastructure.

BEAD defines high-speed internet service as a download speed of at least 25 megabits per second and an upload speed of 3 megabits per second (25/3 Mbps). This level of service enables users to check emails, browse the web, Zoom, and stream videos. BEAD defines “underserved” areas as those lacking access to 100/20 Mbps.

A 2022 report by America’s Communication Association (ACA), which lobbies for more than 500 small- and medium-sized internet service companies, found that nearly 88 percent of households already live where at least two competitors offer 25/3 Mbps service, and 85 percent lived where at least one operator offers 100/20 Mbps service and a competitor offers 25/3 Mbps service. On current trends, the ACA projects that 95 percent will have access to at least 100/20 Mbps service by 2025.

In its January 2021 14th Broadband Report, the Federal Communications Commission found that nearly 90 percent of Americans had access to fixed terrestrial internet services at speeds of at least 25/3 Mbps in 2015. By 2019, that had risen to nearly 97 percent. In urban areas, those figures rose from 97 to 99 percent, and access to those speeds, even in rural areas, rose from 62 percent to 83 percent by 2019.

Citing more recent data, the technology data and management consultancy OpenVault in its first quarter 2023 report notes that 90.5 percent of American households are already signed up for internet download speeds of 100 Mbps or more.

“As usual, the politicians who wrote the rules for the BEAD and other federal grants are far behind the real-life curve,” observes Doug Dawson, the president of communications consultancy CCG. “Grants that allow somebody to build a network that can deliver only 100 Mbps are investing in obsolete technology. By the time those grant networks are constructed, any new networks that deliver only 100 Mbps will be years behind the rest of the broadband in the country.”

Providing access to high-speed internet services to the vast majority of Americans was not achieved by spreading around government largesse. The U.S. Telecom Association reports that private companies invested $86 billion in just 2021 (latest figures) to build out their broadband networks further.

In addition, US Telecom’s broadband pricing index report notes that the real prices for both the most popular and the highest speed options have fallen since 2015 by 44.6 and 52.7 percent, respectively.

In other words, U.S. private broadband companies are already providing access to faster and increasingly cheaper internet services and, on current trends, will finish the job well before Biden’s BEAD boondoggle gets off the ground.

The post Biden’s $42 Billion Broadband Boondoggle appeared first on Reason.com.

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Ron DeSantis’ Border Plan: Invade Mexico Shoot Drug Smugglers End Birthright Citizenship

Most governors don’t enter presidential races with immigration experience under their belts. Not so for Republican Florida Gov. Ron DeSantis—the 2024 hopeful has made a name for himself as a tough-on-migrants politician. From flying asylum seekers to Martha’s Vineyard, Massachusetts, last year, to supporting an E-Verify mandate that threatens to force undocumented workers out of Florida, DeSantis has been busy proving his hardliner bona fides.

Yesterday, while visiting the U.S.-Mexico border in Eagle Pass, Texas, DeSantis pitched his vision for a federal border policy. A detailed version of that platform was released on his website yesterday as well, featuring four pillars: “stop the invasion,” “build the wall,” “hold cartels accountable,” and “work with states to enforce the law.” The site proposes mass deportations, finishing the border wall, military action in Mexico (including port blockades), ending birthright citizenship, and allowing the use of deadly force against suspected drug smugglers who get through the border wall.

DeSantis’ platform would dramatically expand the size and spending of the federal government and make life far more difficult for peaceful, long-present undocumented immigrants, not just new border crossers.

He would bring back the Trump-era “Remain in Mexico” policy, which required migrants to await their immigration court hearings in Mexico, often facing murders, kidnappings, and rapes in dangerous border towns. He seemingly wants to expand Immigration and Customs Enforcement’s deportation mandate to include “illegal alien entries” writ large, not just dangerous criminals and terrorists. And he plans to “strengthen and enforce” the federal E-Verify system, which could keep undocumented immigrants from working and force American workers to get a government permission slip to do their jobs.

Some parts of this pillar would almost certainly run into legal challenges. He “will take action to end the idea that the children of illegal aliens are entitled to birthright citizenship,” challenging the longstanding interpretation of the 14th Amendment. He also wants to “close the Flores loophole that incentivizes child trafficking”—i.e., the legal agreement that requires migrant kids to be released from detention within 20 days. “It is part of a federal court order, so it’s unclear how he could close it,” notes the Associated Press.

Other policies are vague or hypocritical. One section calls for the prosecution of “entities that aid or conspire to violate U.S. immigration laws.” Does that include humanitarian groups who work to keep border crossers from dying in the desert? Another says DeSantis will end “any government funding for non-citizen travel.” What would this DeSantis say to the DeSantis who just this month used state funds to fly migrants to California?

Much of the Florida governor’s border platform mirrors former President Donald Trump’s, but he differentiates himself by saying he’ll get done what Trump couldn’t—including the border wall. DeSantis proposes sending the military “to assist the border patrol” until the wall is built and that he’ll “use every dollar available to him” and “every dollar he can squeeze out of Congress” to finish construction. (Trump’s border wall came out to roughly $20 million a mile. DeSantis says there are 600 miles “open” along the U.S.-Mexico border.)

To “hold cartels accountable,” DeSantis plans to take wartime measures. “If the Mexican government drags its feet, DeSantis reserves the right to operate across the border,” notes his website. “If the Mexican government won’t stop cartel drug manufacturing, DeSantis will surge resources to the Navy and the Coast Guard and block precursor chemicals from entering Mexican ports.” There is no universe where literalizing the war on drugs and violating Mexican sovereignty would be a good use of resources, much less halt the northward fentanyl supply.

The last pillar on DeSantis’ website suggests imposing “firm penalties on sanctuary jurisdictions,” which DeSantis calls “lawless.” Responding to an audience member, DeSantis said that “Texas has the right to declare an invasion,” something that he promises to defend (constitutional, legal, and practical definitions of invasion be damned).

In what might’ve been the splashiest moment of his remarks yesterday, DeSantis suggested using “deadly force” against suspected drug smugglers or people breaking through border enforcements. His campaign later clarified that this would apply to “those trying to smuggle drugs into the United States,” but it’s far from clear how border authorities would determine that before dispensing said deadly force. Customs and Border Patrol policy authorizes deadly force only when there’s “a reasonable belief” that someone “poses an imminent danger of death or serious physical injury” to an agent or other individual.

DeSantis has proven all too willing to embrace authoritarian approaches to immigration in Florida. Given the chance, he looks poised to do the very same in Washington.

The post Ron DeSantis’ Border Plan: Invade Mexico, Shoot Drug Smugglers, End Birthright Citizenship appeared first on Reason.com.

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US Official Says Ukraine Has Lost 15% Of Its Bradley Fighting Vehicles

US Official Says Ukraine Has Lost 15% Of Its Bradley Fighting Vehicles

Authored by Dave DeCamp via AntiWar.com,

Ukraine has lost over 15 percent of the Bradley fighting vehicles that the US has provided, a US military official told The New York Times in an article published on Monday.

The article detailed how Ukraine was struggling to make gains in its counteroffensive that was launched about three weeks ago due to heavy minefields laid by Russian forces and other stiff resistance.

The report reads: “The fierce resistance has taken a toll on Ukraine’s weaponry. The United States committed 113 Bradley fighting vehicles in March. At least 17 of them — more than 15 percent — have been damaged or destroyed in the fighting so far, the official said.”

The US announced a new $325 million weapons package for Ukraine earlier this month that included 15 Bradley vehicles to replace ones that were damaged or destroyed in the first few days of the counteroffensive. Ukraine has also been losing German-made Leopard tanks and is seeking more from Berlin.

The Times report also quoted an unnamed senior Biden administration official who said Ukraine’s struggles in its counteroffensive have been “sobering” for the US. “They’re behind schedule,” the official said.

Ukrainian President Volodymyr Zelensky said last week that the counteroffensive was going “slower than desired” but vowed his troops will fight on. “Some people believe this is a Hollywood movie and expect results now. It’s not,” he said.

While acknowledging that the counteroffensive has not gone well for Ukraine so far, US and Ukrainian officials have stressed the assault is in its initial stages and that significant advances could still be made.

Leading up to the counteroffensive, the Discord leaks and media reports revealed that the US did not expect Ukraine to regain significant territory. But the Biden administration pushed for the assault anyway and has rejected the idea of a ceasefire or peace talks.

Tyler Durden
Tue, 06/27/2023 – 13:20

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Medicore 5Y Auction Sees First Tail Since January

Medicore 5Y Auction Sees First Tail Since January

After a stellar 2Y auction yesterday, moments ago the US Treasury concluded the week’s second auction – an offering of $43 billion in 5 Year Notes. Unlike yesterday’s today which was a blowout across most categories, today’s sale was solid but nothing to write home about.

Pricing at a high yield of 4.019%, up from 3.749% in May and the highest since February’s 4.109%, the auction tailed the When Issued 4.012% by 0.7bps, the first tail for the tenor since February.

The bid to cover was 2.52, down from 2.58 last month and just below the 2.53 six-auction average.

The internals were also average, with Indirects awarded 68.1%, down from 72.7% and below the 70.1% recent average; and with the Direct award rising to 19.7%, the highest since Jun 2022, Dealers were left holding 12.2%, one of the lowest on record (but not the lowest – that was January’s 8.8%).

Overall, a mediocre auction but more than sufficient for government work.

Tyler Durden
Tue, 06/27/2023 – 13:15

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