OIL AT US$70 PER BARREL, DOW JONES ABOVE 52,000, NIKKEI ABOVE 70,000

 

Things are looking good around the world. (But not here). Here are some vitals signs from around the world. The Dow Jones has moved comfortably past 52,000. The Dow was tiptoeing just below and just above 52,000. But the past few days it has moved decisively past 52,000. Base case projections say the Dow Jones can pass 56,000 by year end. Considering the Dow was at 47,000 just four months ago this is not impossible. Or even higher if there is a settlement in Ukraine. (Most likely will be).  If there is regime change in Iran the Dow Jones can move beyond 60,000. 

The Nikkei also crossed the psychological 70,000 a few days back and it looks like the movement will stay. And right now (9 am KL time 1/7/26) the Nikkei is at 71,698.36, up 2.34% or +1,636.04 points from last close.

There is considerable downward pressure on oil prices. WTI hit US$70 per barrel yesterday - the past few days it has been tiptoeing between above and below US$70.

There are still 1,200 oil tankers queuing up to be moved out of the Straits of Hormuz. Of a certainty they are being moved out and plenty of oil will reach the markets. Some say US$70 plus or minus will stay, but that will be topside.  If there is an agreement over Ukraine, oil prices may dip further. Indications are that Ukraine will see a resolution hopefully by the end of this year.

Here is a prediction for the Ukraine situation:

Outcome by end-2026	Probability
Durable ceasefire/freezing of front lines	60–70%
Formal peace treaty	25–35%
Continued high-intensity war	30–40%

This is good news.

There will be considerable rebuilding in Ukraine. The Russian and Chinese economies will likely benefit the most. 

What about the bearded monkeys? They will still be fighting over bananas. 

CHINA DOMINATES FIFA WORLDCUP 2026

This is how the Chinese have done it.

CHINA STARTS PRODUCING CANCER VACCINE

 

FROM SCMP HERE

China has broken ground on what developers say is the country’s first production line for AI-assisted personalised tumour vaccines, raising hopes for millions of new cancer patients every year – a disease that ranks as the nation’s second-leading cause of death.

By October, Beijing-based Likang Life Sciences is expected to complete a new drug research and manufacturing centre in the Beijing Economic and Technological Development Zone, with a total investment of about 110 million yuan (US$16.1 million), according to the district government.

The facility will house cell therapy research laboratories together with a production line of the company’s flagship product, LK101, a personalised cancer vaccine that analyses each patient’s tumour DNA to pinpoint the specific genetic mutations driving the disease. With AI, the company said the procedure could be completed in a day.

The project reflects a global shift in the pharmaceutical sector towards harnessing artificial intelligence. The technology was widely used in drug discovery and clinical trials, as well as areas such as data analysis, data monitoring and medical writing, said Grace Wang, a partner based in L.E.K. Consulting’s Shanghai office, in a video posted in early June.

The global AI healthcare market could exceed US$1 trillion by 2035, according to Bank of America, highlighting the commercial potential of such technologies.

“AI offers a compelling solution by automating manual workflows, improving diagnostic accuracy and enabling personalised treatment strategies,” said Alec Stranahan, senior research analyst of small- and mid-cap biotechnology at Bank of America, in a note on January 21. “Current adoption, however, is still in its early stages.”

China recorded about 5.15 million new malignant tumour cases in 2024, with 2.67 million in men and the rest in women, according to the latest data released by China’s National Cancer Centre. It is the nation’s second-leading cause of death after cardiovascular disease, according to the Chinese Centre for Disease Control and Prevention.