The virtual Jackson Hole conference today heard from Fed head Jerome Powell who said that the US central bank would probably be keeping interest rates low for the next 5 years even if inflation is higher than 2%.

Hurricane Laura headed for the US Gulf States of Louisiana and Texas has moved up to the worst level, category 5, with floods and damage, made worse by the need to separate people to stop the pandemic.

The likelihood of continued cheap money in the US hurt the dollar and almost all foreign stocks. The likely mess in US oil drilling boosted energy stocks. The Dow Jones and the S&P 500 started up nicely but now along with Nasdaq are lagging.

Gold (which offers no yield) was recommended by Pimco, a leading US fund manager owned by Germany's Allianz SE. It says “gold remains attractively valued”. While Mr. Powell doesn't expect inflationary pressures because yields have remained steady since the global financial crisis, other experts worry that historically, cheap money triggers inflation. ALIZY is the new ticker symbol for the German insurance and fund management group whose senior economist is Mohammed El-Erian. The ADR is now equal to a German share, worth over $200 plus.

A general selloff of pharmaceutical stocks came after good news on coronavirus testing from Abbott Labs (ABT) whose $5 test gives a result in 15 minutes, allowing for lots of follow-up on contacts which the Trump Administration calls unnecessary. Experts think it is the key to stopping the COVID-19 spread.

Here is the news:

Green from Green

*Yesterday's jump in Nio (NIO) stock resulted from a buy rating and $20.50 target price for the Chinese electric vehicle maker from Tim Hsiao of Morgan Stanley.

The main reason appears to be that Hefei's city government subsidies will cut the risk from NIO's debt. In April, NIO got a $1 bn investment from the city on condition that it set up its factories and HQ there.

The city and Anhui Province are centers of energy tech because of its university's focus on this.

Anhui works on wind and solar power as well as storage and batteries. In addition to NIO, the city has also welcomed Volkswagen's autonomous vehicle factory. VW got no subsidies but instead bought into its Jianghuai partner's stock to gain 50% control. It will make 10 Audi electric SUVs which will act as taxis for residents of the Haiheng district of Anhui and also offer the same service to other Chinese and eventually non-Chinese areas attracted by the demonstration. Nio fell 2.2% today, but we are still up 142%.

*Another Chinese electric vehicle IPO for X-Ping on the NYSE today will raise an estimated $1.5 bn. The previous one, Li Auto uses gasoline to charge its electric batteries on the go.

*Azure Power (AZRE) gained 8.5% today on how its island home is suffering from an oil spill. It makes solar panels to produce electricity in India and is controlled by the Quebec Pension Program.

*The likelihood that Microsoft will take over TikTok grew now that it agreed to partners with Walmart on a bid. The teen sensation's CEO who only joined recently has resigned. Walmart gained nearly 15% and MSFT 3.4% (I own the latter stock.)

*Johnson Matthey in Britain rose another 1.23% today after its deal to fund a Polish lithium battery firm reported in yesterday's blog. This is being funded by the EU and Germany. JMPLY fell 2% here.

*Vale (VALE) of Brazil, sold, was hit with a $4.78 bn asset freeze. Even Brazil regulates disasters.

*Both BP (BP) and Shell (RDS-B) fell despite the oil price rise because climate change is cutting the lure of oil.

Drug Dealers

*The higher they went the harder they fell today. Beigene, BGNE, the Chinese, lost 1.9%.

*Compugen (CGEN) of Israel, which rocketed up lately, lost 8% today after it hit a new all-time high Weds.

*Glaxo fell 1.05%. GSK earns a lot of dollars now worth fewer pounds sterling.

*Teva (TEVA) now judged to have missed its chance to settle charges it conspired to fix generic drug prices fell another 2.9% today.

*Other losers include Dr. Reddy's, Roche, Novo Nordisk, Novartis, Eisai, Zymeworks: RDY, RHHBY, NVO, NVS, ESALY, and ZYME.

*Our new buy Grifols SA ADRs, fell 0.86%. GRFS does blood plasma extraction to treat diseases. It is Spanish.

Banksters

Financial stocks are mostly lower except for Hang Seng Bank of Hong Kong, HSNGF, up 7.47%, and US bank State Street (STT) (which manages fund holdings), Bank of Nova Scotia, Banco Latinoamericano de Comercio Exterior, and Investor A/B of Sweden: BNS, BLX, IVSBF.

Eats

*Highway food seller Alimentation Couche-Tard (ANCUF) gained today because people will drive rather than risk public transit in buses, planes, or trains.

*Irish Greencore, maker of ready meals, recuperated by ~2.17% today despite having to shut a Northampton sandwich factory in Britain.