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Aura High Yield SME Fund: Letter to Investors 05 August 2022

The RBA raised rates for the fourth consecutive meeting with a view to combat the soaring rate of inflation. They are not shying away from introducing…

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The RBA raised rates for the fourth consecutive meeting with a view to combat the soaring rate of inflation. They are not shying away from introducing additional rate rises moving forward. As noted last week, the headline inflation for the July quarter came in at 6.1 per cent, well above the 2–3 per cent target range.

Monetary Policy Decision 1

At Tuesday’s RBA meeting, the board decided to increase the interest rate by 50 basis points to 1.85 per cent. With the RBA facing a persistent challenge of trying to reign in inflation, their only real lever to pull here is the interest rate.

With their priority being to bring the inflation target back into the 2–3 per cent range, whilst maintaining a low level of unemployment the RBA is facing a difficult challenge. With ongoing uncertainty due to the many domestic and global scenarios we have discussed before – and the need to rebalance supply and demand – the RBA is responding to a significant upward shift in monetary policy.

Inflation is currently at the highest level it has been since the early 1990s. It is expected that inflation will reach its peak later this year before it starts to return to the more normalised territory. The RBA’s forecast is for CPI inflation to be around 7.75 per cent over 2022 and slightly above 4 per cent over 2023 before returning to around 3 per cent over 2024.

The RBA has supported their rate rise with the expectation that the economy and employment will continue to grow strongly this year, consumer spending has remained resilient in the current economic environment and businesses are continuing to make investments.

As mentioned previously, the key source of uncertainty for the RBA at this stage is the behaviour of households spending and how this will evolve in a higher inflationary and higher interest rate environment. The RBA would be hoping that household spending pulls back, allowing inflation to cool off and reduce the need to hike rates further.

Portfolio Management Commentary

We are currently seeing consumer confidence fall and house prices decline. On the other hand, employment remains strong, and many households have built up and maintained financial buffers with the savings rate sitting at a higher level than before the pandemic.

From an investment management perspective, our major concern is that the RBA is hitting the brakes too hard as it tries to bring inflation back towards the target band. In our view, the probability of a second technical recession in two years is increasing with the ferocity of the RBA hikes. The main concern is that the RBA has not seen the full flow through impact of the May through July moves, mixed with the removal of quantitative easing (QE) measures. In some way, inflation is currently elevated as a result of the excessive stimulus injected into the economy by the RBA, not only through accommodative monetary policy but more importantly significant amounts of QE.

In the US, where there have been significant increases in the cash rate, the economy is now in a technical recession by the classic economic definition (two consecutive quarters of negative economic growth). Democrats are looking to redefine recession in this instance as we are not seeing a corresponding uptick in unemployment as we have seen in past recessions.

The economy is in a relatively strong position from a growth and employment perspective, so it is not all doom and gloom. We are working with our originators to ensure we are funding high-quality businesses and keeping a close eye on the portfolio. We still see a large number of good opportunities to fund and are seeing strong inflows into the Fund. We will release our distributions and monthly report next week.

Last week marked the fifth anniversary of the Aura High Yield SME Fund. We are particularly proud of the fact we have protected our investor capital since inception, particularly through a very uncertain and volatile period over the last two years. We thank all of our investors for their continued support since the inception of the Fund and look forward to working with you all in the years to come.

1 RBA Monetary Policy Decision

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International

NIH Doctor Flagged Wuhan Virus Lab Safety Problems As Early As 2017

NIH Doctor Flagged Wuhan Virus Lab Safety Problems As Early As 2017

Authored by Tom Ozimek via The Epoch Times,

A doctor working for the…

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NIH Doctor Flagged Wuhan Virus Lab Safety Problems As Early As 2017

Authored by Tom Ozimek via The Epoch Times,

A doctor working for the U.S. government in 2017 visited the China-based virus research facility that may have leaked the pathogen that causes COVID-19, and sounded the alarm on safety issues at the lab earlier than previously reported, according to documents obtained by The Epoch Times.

Dr. Ping Chen, who worked for the National Institute of Allergy and Infectious Diseases (NIAID), visited the Wuhan Institute of Virology (WIV) in October 2017 and prepared a report for her superiors after her visit.

While a version of her report obtained by a Freedom of Information Act (FOIA) request was fully redacted, Sen. Ron Johnson (R-Wis.) and his team were granted an opportunity to carry out an in-camera review of the report that had some of the redactions removed.

“It is clear to me by talking to the technician that certainly there is a need for training support” at the Wuhan lab, Dr. Chen wrote in the report, parts of which were attached to a letter sent by Mr. Johnson to Department of Health and Human Services (HHS) Secretary Xavier Becerra on Sept. 21.

The letter, which was obtained by The Epoch Times, includes fragments of Dr. Chen's report and suggests that HHS and the U.S. National Institutes of Health (NIH) were aware of safety issues at the Wuhan facility as early as October 2017.

The P4 laboratory on the campus of the Wuhan Institute of Virology in Wuhan, Hubei Province, China, on May 13, 2020. (Hector Retamal/AFP via Getty Images)

Earlier reporting based on two State Department cables and correspondence records obtained by Judicial Watch indicate that NIH was made aware of safety problems at the Wuhan lab in 2018, the year after Dr. Chen's report.

“I think the institute would welcome any help and technical support by NIAID,” Dr. Chen wrote in her 2017 report.

Mr. Johnson wrote in his letter to Mr. Becerra that Dr. Chen's 2017 report partially served as the basis for a Jan. 19, 2018, State Department cable that raised safety concerns about the Wuhan virus lab.

Evidence suggests that SARS-CoV-2, the virus that causes COVID-19, leaked from the Wuhan facility before spreading across the world. According to the so-called lab leak theory, the deadly pathogen that caused the pandemic escaped the Chinese facility, which was conducting risky gain-of-function research on bat coronaviruses that was partially funded by U.S. taxpayer dollars.

Demands

Mr. Johnson demanded that HHS provide a version of Dr. Chen's 2017 report that contains fewer redactions in order to scrutinize its contents more closely and determine how closely it aligned with the cable.

“In the public FOIA document, HHS redacted Dr. Chen’s entire report claiming that it contains privacy and deliberative information,” Mr. Johnson wrote.

“It seems apparent that the only reason that HHS redacted this information was to hide the report’s contents from the American people. Perhaps HHS did not want the public to fully understand the fact that NIH and NIAID officials were aware of safety concerns at the WIV dating as far back as 2017,” he added.

Mr. Johnson also accused NIH and HHS of obstructing his probe.

"HHS and NIH continue to obstruct my oversight efforts," he wrote. "It is unacceptable that HHS and NIH had Dr. Chen's report in its possession and only provided a slightly less redacted version for my staff to review in camera."

He demanded that HHS provide unredacted copies of Dr. Chen's report and all documents and communications relating to the report and to the Wuhan lab.

Mr. Johnson also asked for Dr. Chen to sit before a congressional panel and testify.

He set an Oct. 5 deadline for HHS to comply with his request.

HHS officials didn't immediately respond to a request by The Epoch Times for comment.

Chinese virologist Shi Zhengli is seen inside the P4 laboratory in Wuhan, China, on Feb. 23, 2017. (Johannes Eisele/AFP via Getty Images)

'Preponderance of Evidence' for Lab Leak

In August 2021, a report by Republican lawmakers noted a "preponderance of evidence" that the virus that caused the COVID-19 pandemic leaked from the Wuhan lab.

Chinese officials have denied the lab leak claim, insisting that the virus made a natural jump from animals to humans.

Rep. Michael McCaul (R-Texas) said in testimony before the Coronavirus Select Subcommittee Republicans that evidence points to a lab leak as the likely origin of the virus, saying that "it's time to completely dismiss the wet market as the source of the outbreak" and "the preponderance of the evidence that it came from the lab is very convincing."

U.S. intelligence agencies later said in a report that a natural origin and a lab leak are both plausible hypotheses but that a lack of evidence makes a definitive conclusion either way impossible.

It's a sentiment echoed by Mr. McCaul in his testimony.

"Unfortunately, we may never know for certain because the Chinese Communist Party went to great lengths to cover up this outbreak," he said. "They detained the doctors in order to silence them. They disappeared journalists. They destroyed lab samples. They hid the fact there was clear evidence of human-to-human transmission. And they have refused to allow a real investigation into the origins."

Wuhan Lab Funding Controversy

The U.S. Agency for International Development awarded a total of $1.1 million to the WIV between October 2009 and May 2019, the agency wrote in a May 2021 letter (pdf) to Rep. Guy Reschenthaler (R-Pa.).

Mr. Reschenthaler alleged that the funding was used for a study that used gain-of-function research to create "a hybrid, man-made virus by inserting a spiked protein from a wild coronavirus into a mouse-adapted SARS-CoV backbone, which could infect human airways."

The agency said the funds were channeled through EcoHealth Alliance and were meant for the purpose of advancing research on critical viruses that could pose a threat to humans. It also denied claims that the money was used for gain-of-function research, which seeks to boost viral lethality for the purpose of studying it.

In June 2022, the House Appropriations Committee approved a ban on sending any further funding to the Wuhan Institute of Virology.

More recently, the NIH quietly removed the WIV from a list of foreign facilities that are eligible to receive U.S. taxpayer funds to conduct animal experiments.

Tyler Durden Thu, 09/28/2023 - 19:40

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Government

Murder Crisis Plagues DC As Mayor Begs For More Officers After ‘Defunding Police’

Murder Crisis Plagues DC As Mayor Begs For More Officers After ‘Defunding Police’

How it started. 

How it’s going? 

#NEW – Mayor Bowser…

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Murder Crisis Plagues DC As Mayor Begs For More Officers After 'Defunding Police'

How it started. 

How it's going? 

D.C. Mayor Muriel Bowser, a former supporter of the 'defund the police' movement, urgently calls for increased policing as the nation's capital faces an out-of-control murder crisis. 

"What I can say is this: To me, numbers are just numbers. When we lose one person — whether it's one or 200 — that's too many," Bowser said at a press conference earlier this week. 

Of course, Bowser, like many Democrat mayors, blames firearms as the issue, deflecting any possibility her disastrous social justice reforms only embolden criminals - while punishing law-abiding taxpayers -across the imploding Washington, DC metro area. 

Even the Washington Post can't ignore the murder crisis: 

For the first time in a quarter-century, the year's homicide toll in Washington has surpassed 200 before October — a mark of surging violence that has angered and distressed local leaders, drawn scrutiny from Congress and made some residents question whether they can safely live in the nation's capital.

WaPo added:

The last time D.C. logged its 200th homicide before October was Aug. 12, 1997, in a year that ended with 303 people slain, according to police data. After that, annual totals generally trended downward, staying below 200 from 2004 to 2020, with a low of 88 in 2012. But the killing pace has picked up again, reaching 226 in 2021.

Heading into the 2024 presidential election cycle, Democrats will never admit their social justice reforms have failed. They conveniently blame guns. 

Directly north of D.C. lies another crime-ridden metro area: Baltimore City. And this week, mass looting was seen in Philadelphia. And just north of Baltimore and Philadelphia, New York City's progressive mayor recently warned of financial ruins due to a migrant crisis. 

Democrats have transformed cities into absolute messes. 

Tyler Durden Thu, 09/28/2023 - 20:00

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International

Who Owns The Most Satellites?

Who Owns The Most Satellites?

Nearly 7,000 satellites orbit the Earth, serving vital functions such as communication, navigation, and scientific…

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Who Owns The Most Satellites?

Nearly 7,000 satellites orbit the Earth, serving vital functions such as communication, navigation, and scientific research.

In 2022 alone, more than 150 launches took place, sending new instruments into space, with many more expected over the next decade.

But who owns these objects? In this graphic, Visual Capitalist's Bruno Venditti and Miranda Smith utilize data from the Union of Concerned Scientists to highlight the leaders in satellite technology.

SpaceX’s Dominance in Space

SpaceX, led by Elon Musk, is unquestionably the industry leader, currently operating the largest fleet of satellites in orbit—about 50% of the global total.

The company has already completed 62 missions this year, surpassing any other company or nation, and operates thousands of internet-beaming Starlink spacecraft that provide global internet connectivity.

Starlink customers receive a small satellite dish that self-orients itself to align with Starlink’s low-Earth-orbit satellites.

Percentages may not add to 100 due to rounding.

In second place is a lesser-known company, British OneWeb Satellites. The company, headquartered in London, counts the UK government among its investors and provides high-speed internet services to governments, businesses, and communities.

Like many other satellite operators, OneWeb relies on SpaceX to launch its satellites.

Despite Starlink’s dominance in the industry, the company is set to face intense competition in the coming years. Amazon’s Project Kuiper plans to deploy 3,236 satellites by 2029 to compete with SpaceX’s network. The first of the fleet could launch as early as 2024.

The Rise of China’s Space Program

After the top private companies, governments also own a significant portion of satellites orbiting the Earth. The U.S. remains the leader in total satellites, when adding those owned by both companies and government agencies together.

American expenditures on space programs reached $62 billion in 2022, five times more than the second one, China.

China, however, has sped up its space program over the last 20 years and currently has the highest number of satellites in orbit belonging directly to government agencies. Most of these are used for Earth observation, communications, defense, and technology development.

Satellite Demand to Rise Over the Decade

Despite the internet being taken for granted in major metropolitan areas and developed countries, one out of every three people worldwide has never used the web.

Furthermore, the increasing demand for data and the emergence of new, more cost-effective satellite technologies are expected to present significant opportunities for private space companies.

In this context, satellite demand is projected to quadruple over the next decade.

Tyler Durden Thu, 09/28/2023 - 19:20

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