Tag Archives: METL

Asia stocks fragile amid growth worries, dollar in demand

  • Asian stock markets : https://tmsnrt.rs/2zpUAr4
  • Nikkei bounces after suffering steep losses last week
  • Flash PMIs to show impact of Delta on manufacturing
  • Dollar holds near 10-mth highs, awaits Powell take on tapering
  • Oil prices find support after worse week in 9 months

SYDNEY, Aug 23 (Reuters) – Asian share markets were trying to pick up the pieces on Monday following last week’s thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy.

A raft of “flash” manufacturing surveys for August out on Monday will offer an early indication of how global growth is faring in the face of the Delta variant, with analysts expecting some slippage and especially in Asia.

Concerns over China’s economy have only intensified in recent weeks, while Beijing’s regulatory crackdown on the tech sector delivered a double blow to markets.

More than $560 billion was wiped from Hong Kong and mainland China exchanges last week as funds fretted on which sectors regulators might target next. read more

The impact was all too evident in MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) which sank 4.8% last week to a nine-month trough. Early Monday, it had limped 0.2% higher but the gains looked fragile.

The rot spread to Japan where the Nikkei (.N225) shed 3.4% last week to its lowest since January. Bargain hunting helped the index bounce 1.2% early Monday.

“Following a strong V-shaped recovery, there are many signs of slower growth,” says BofA’s chief investment strategist Michael Hartnett.

“The U.S. yield curve is at a one-year low, emerging markets are negative YTD and both copper and oil are down double digits from recent highs.”

He expects negative returns for stocks and credit in the second half of this year and suggests investors own defensive quality.

The spread of the Delta variant also has the potential to upset the timing of the U.S. Federal Reserve’s tapering plans.

Dallas Federal Reserve President Robert Kaplan, a well-known hawk, on Friday said he might reconsider the need for an early start to tapering if the virus harms the economy. read more

That adds an extra frisson of uncertainty to Fed Chair Jerome Powell’s speech at Jackson Hole this week, which has had to be moved online because of pandemic restrictions. read more

“Our base case is that the FOMC will announce a taper in September if the August non‑farm payrolls is strong,” said Joseph Capurso, head of international economics at CBA.

“We anticipate the taper will be implemented in October or November, though the recent increase in Covid infections and deaths in parts of the U.S. may give Powell pause.”

That is in market contrast to the European Central Bank which is under pressure to add more stimulus, giving the dollar a leg up on the euro.

“Unlike the Fed, we do not expect the ECB to shift away from its ultra‑dovish monetary policy stance,” said Capurso. “We expect EUR to decline to a low of $1.12 in Q1 2022, before gradually appreciating.”

The single currency was trading at $1.1697 , after losing 0.8% last week to touch 10-month lows at $1.1662. That in turn helped the dollar index to a 10-month peak at 93.734 , and it was last trading firm at 93.507.

The dollar made large gains on commodity and emerging market currencies, and turned higher on the Chinese yuan.

It has been more restrained against the Japanese yen at 109.84 , which is also benefiting from safe haven flows.

Global growth jitters took a heavy toll on commodities last week, with base metals, bulk resources and oil all falling.

Gold was steadier at $1,777 , following a one-day plunge earlier in August.

Oil had suffered its sharpest week of losses in more than nine months as investors anticipated weakened fuel demand worldwide due to a surge in COVID-19 cases.

Early Monday, Brent had edged up 37 cents to $65.55 a barrel, while U.S. crude added 27 cents to $62.41.

Editing by Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

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Asian shares fall, dollar gains after Fed minutes

HONG KONG, Aug 19 (Reuters) – Asian shares fell on Thursday while the dollar reached multi-month highs against peers, after minutes from the U.S. central bank’s last meeting showed the increasing prospect of reduced monetary stimulus this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.63%, heading back towards 2021 lows set last month, with Chinese blue chips (.CSI300) down 0.21%, Australia (.AXJO) falling 0.54% and Hong Kong off 0.45%.

Japan’s Nikkei (.N225) dropped 0.37%.

Carlos Casanova, senior Asia economist at UBP, said the main drivers for markets this week were weaker economic activity data in China, which had prompted many economists to downgrade forecasts, the situation in Afghanistan and the Fed minutes.

The minutes from the July policy meeting published Wednesday fleshed out the Fed’s thinking on when to taper its monthly bond purchases, and showed officials expected they could ease stimulus this year if the economy continues to improve.

However, officials noted the spread of the COVID-19 Delta variant could temporarily delay the full reopening of the economy and restrain a jobs market that looms large in the Fed’s thinking. read more

“The minutes show a Fed that is pretty split on most things, but recognises that we are getting much closer to the point of tapering,” wrote ING analysts in a note.

Focus now shifts to the Fed’s annual research conference in Jackson Hole, Wyoming, next week for any read about the central bank’s next steps.

“We will have more visibility about the outlook for the U.S. 10-year yields from September onwards, there are some upside risks that they could go to 1.6% to 1.8% from the current levels, and for Asia Pacific that means outflows,” said Casanova.

U.S. Treasury yields were little changed in Asian trading. Benchmark 10-year notes were last at 1.2617% having risen to as high as 1.300% before the minutes were disclosed.

However, the greenback reacted more strongly with the dollar index , which measures the currency against the euro, yen and four other rivals, climbing to 93.347, its highest since April 1.

Gains were particularly strong versus risk-friendly currencies, and the dollar rose to nine-month highs versus the euro and Australian and New Zealand dollars.

Wall Street closed lower after the minutes with the Dow Jones Industrial Average (.DJI) ending the day down 1.07%, while the S&P 500 (.SPX) lost 1.07% and the Nasdaq Composite (.IXIC) fell 0.89%.

The stronger dollar dragged on gold. The spot price dropped 0.15%.

Oil extended losses into a sixth day on Thursday, hovering near three-month lows. ANZ analysts said rising U.S. inventories had fuelled fears of weaker demand amid a spike in COVID-19 cases worldwide. 0/R

Brent crude was down 85 cents or 1.3% at $67.38 a barrel, U.S. West Intermediate crude lost 1.4% to $64.53 a barrel.

Reporting by Alun John in Hong Kong. Additional reporting by Pete Schroeder in Washington; Editing by Sam Holmes

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Zambians vote in tight presidential election, internet restricted

  • Long queues point to high voter turnout
  • Challenger pitching economic fix to voters
  • Vote looks too close to call, say analysts
  • Zambia was Africa’s first pandemic-era default

LUSAKA, Aug 12 (Reuters) – Zambians voted for a new leader on Thursday with long queues pointing to a high turnout in an election showdown between President Edgar Lungu and main opposition rival Hakainde Hichilema that looks too tight to call.

But as millions cast their ballots, social media platforms were restricted in the country, internet blockage observatory NetBlocks said.

“Real-time network data confirm that social media and messaging platforms including Twitter, Facebook, Instagram and Messenger are now restricted in #Zambia on election day in addition to the earlier WhatsApp restriction,” NetBlocks said in a tweet.

Zambia Information and Communication Technology acting director-general Mulenga Chisanga did not answer calls for comment.

United Party for National Development (UPND) Presidential candidate Hakainde Hichilema looks on during a rally in Lusaka January 18, 2015. REUTERS/Rogan Ward

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The restriction of internet access could fuel tension and suspicion about the vote, which African and European observers said had been peaceful on Thursday.

Lungu and Hichiema, who voted at different stations hours apart, were both confident of winning the vote and the close contest raised the possibility of a run-off.

The electoral agency says it expects to declare a winner within 72 hours after polls close.

Zambia, Africa’s second-biggest copper producer, became the continent’s first country during the coronavirus pandemic to default on its sovereign debt in November. Its economy is flagging.

Writing by MacDonald Dzirutwe; Editing by Joe Bavier, Raju Gopalakrishnan, Elaine Hardcastle and Angus MacSwan

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Asian shares fall as Delta fears eclipse Wall Street uptick

HONG KONG, Aug 12 (Reuters) – Asian shares failed to follow a strong close on Wall Street with fears about the spread of the Delta variant of the coronavirus weighing on sentiment even as tame U.S. inflation eased fears the Federal Reserve would rush to reduce its economic support.

That data also caused dollar to retreat against most major currencies and U.S. Treasury yields to edge down overnight though both were steadier in Asian hours.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.25% in early trading, dragged by a 0.24% decline in Chinese bluchips (.CSI300). The Hong Kong benchmark (.HSI) fell 0.2% while Australian shares (.AXJO) were largely flat and Japan’s Nikkei (.N225) rose 0.35%.

U.S. stock futures were little changed, with S&P 500 e-minis down 0.02%.

The weaker performance by Asian benchmarks contrasts with the situation elsewhere in the world. On Wednesday the MSCI all-country index (.MIWD00000PUS), a gauge of stocks across the globe, hit a record high.

In comparison the Asian benchmark is down over 10% from its February peak.

“The money is just in the U.S. and European markets right now, and that’s our preferred market too,” said Daniel Lam, senior cross-asset strategist, Standard Chartered Wealth Management.

Lam pointed to a strong U.S. earning season and Europe’s high vaccination rates meaning the pace of reopening has been less harmed by the spread of the Delta variant of the new coronavirus, and “recent China regulation blues” in sectors such as education and technology.

“I think that the rotation from emerging markets to Western markets could continue in the near-term,” said David Chao, Global Market Strategist, Asia Pacific (ex-Japan) at Invesco.

“The APAC region’s zero-tolerance policy coupled with a relatively low vaccination rate has led to vicious lockdown-release cycle which could continue for a while.”

The Dow Jones Industrial Average (.DJI) and S&P 500 (.SPX) closed at record levels on Wednesday, after the U.S. Labor Department reported the largest drop in month-to-month inflation in 15 months, easing concerns about the potential for runaway inflation.

U.S. policymakers are publicly discussing how and when they should begin to trim the massive asset purchases launched by the Fed last year to stabilise financial markets and support the economy through the coronavirus pandemic. read more

The easing of fears about inflation reduces the pressure to taper those asset purchases soon rather than later in the year, after strong employment figures last week had given ammunition to those with a more hawkish tilt.

As a result, U.S. Treasury yields fell on Wednesday across most maturities, though trading was choppy.

Moves were more muted in Asian hours. Yields on benchmark 10-year Treasury notes was last 1.3455% compared with its U.S. close of 1.359%.

The dollar hovered below a four-month peak against major peers on Thursday, after retreating overnight as yields dropped.

“I expect the dollar to be range-bound on the recent strong unemployment and tempered CPI data,” said Invesco’s Chao.

Oil largely held onto gains from earlier in the week, U.S. crude dipped 0.03% to $69.23 a barrel. Brent crude was flat at $71.43 per barrel.

Gold also held on to overnight gains on Thursday, with the spot price down 0.1% having risen 1.3% in the previous session. Easing of fears about higher interest rates would typically help the non-interest bearing asset.

Editing by Lincoln Feast

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Asia stocks spooked by sudden slide in gold

  • Asian stock markets : https://tmsnrt.rs/2zpUAr4
  • Gold drops more than 4% at one stage, oil prices slide
  • Strong U.S. jobs report brings Fed tapering nearer
  • Rising Treasury yields lift dollar to 4mth high on euro

SYDNEY, Aug 9 (Reuters) – Asian shares wobbled on Monday amid sharp losses in gold and oil prices, while the dollar held near four-month highs after an upbeat U.S. jobs report lifted bond yields.

Sentiment was shaken by a sudden dive in gold as a break of $1,750 triggered stop loss sales taking it as low as $1,684 an ounce . It was last down 2.2% at $1,723.

Brent sank almost 2% on concerns the spread of the Delta variant would temper travel demand.

Holidays in Tokyo and Singapore made for thin trading conditions, leaving MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) down 0.1%.

Japan’s Nikkei (.N225) was shut but futures were trading just below Friday’s close. Nasdaq futures slipped 0.5% and S&P 500 futures 0.3%.

Chinese trade data out over the weekend undershot forecasts, though figures due later Monday should show inflation is no barrier to more policy stimulus. read more

The U.S. Senate was closer to passing a $1 trillion infrastructure package, though a single Republican lawmaker was holding up a vote on Sunday. read more

Investors were still assessing whether Friday’s strong U.S. payrolls report would take the Federal Reserve a step nearer to winding back its stimulus.

“There is not a lot of disagreement on a taper announcement coming sometime between September-December followed by actual tapering sometime between November and January,” said Rodrigo Catril, a senior FX strategist at NAB.

However, the pace of tapering was still up in the air and would decide when an actual rate hike came, he said. The Fed is currently buying $120 billion of assets a month, so a $20 billion taper would end the programme in six months whilst a $10 billion tapering approach would take a year.

The spread of the Delta variant could argue for a longer taper with U.S. cases back to levels seen in last winter’s surge with more than 66,000 people hospitalised.

Figures for July CPI due this week are also expected to confirm inflation has peaked, with prices for second hand vehicles finally easing back after huge gains.

There are four Fed officials speaking this week and will no doubt offer their own take on tapering.

In the meantime, stocks have been mostly underpinned by a robust U.S. earnings season. BofA analysts noted S&P 500 companies were tracking a 15% beat on second quarter earnings with 90% having reported.

“However, companies with earnings beats have seen muted reactions on their stock price the day following earnings releases, and misses have been penalized,” they wrote in a note.

“Guidance is stronger than average but consensus estimates for two-year growth suggest a slowdown amid macro concerns.”

Financials firmed on Friday as a steeper yield curve is seen benefiting bank earnings, while also penalising the tech sector where valuations are sky high.

Yields on U.S. 10-year notes were up at 1.30% in the wake of the jobs report, having hit their lowest since February last week at 1.177%.

That jump gave the dollar a broad lift and knocked the euro back to $1.1744 , its lowest since April. The dollar likewise climbed to 110.28 yen and away from last week’s trough of 108.71.

That took the U.S. currency index up to 92.882 and nearer to the July peak of 93.194.

Oil prices eased further after suffering their largest weekly drop in four months amid worries coronavirus travel restrictions would threaten bullish expectations for demand.

Brent fell $1.30 to $69.40 a barrel, while U.S. crude lost $1.29 to $66.99.

Editing by Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

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Iran begins process of making enriched uranium metal; U.S., E3 dismayed

VIENNA/WASHINGTON, July 6 (Reuters) – Iran has begun the process ofproducing enriched uranium metal, the U.N. atomic watchdog said on Tuesday, a move that could help it develop a nuclear weapon and that three European powers said threatened talks to revive the 2015 Iran nuclear deal.

Iran’s steps, which were disclosed by the International Atomic Energy Agency and which Tehran said were aimed at developing fuel for a research reactor, also drew criticism from the United States, which called them an “unfortunate step backwards.”

U.S. and European officials made clear that Iran’s decision would complicate, and potentially torpedo, indirect U.S.-Iranian talks seeking to bring both nations back into compliance with the 2015 deal, which was abandoned by former U.S. President Donald Trump.

The deal imposed curbs on Iran’s nuclear programme to make it harder for Tehran to develop fissile material for nuclear weapons in return for the lifting of economic sanctions. After Trump withdrew, Iran began violating many of its restrictions.

Tehran has already produced a small amount of uranium metal this year that was not enriched. That is a breach of the deal, which bans all work on uranium metal since it can be used to make the core of a nuclear bomb. read more

“Today, Iran informed the Agency that UO2 (uranium oxide) enriched up to 20% U–235 would be shipped to the R&D laboratory at the Fuel Fabrication Plant in Esfahan, where it would be converted to UF4 (uranium tetrafluoride) and then to uranium metal enriched to 20% U–235, before using it to manufacture the fuel,” an IAEA statement said.

A confidential IAEA report seen by Reuters said the agency had confirmed that Iran had taken the second of the four steps described, making clear it has begun the process.

Britain, France and Germany said on Tuesday they had “grave concern” about Iran’s decision, which violates the nuclear deal formally named the Joint Comprehensive Plan of Action (JCPOA). read more

“Iran has no credible civilian need for uranium metal R&D and production, which are a key step in the development of a nuclear weapon,” they said in a joint statement issued by Britain’s foreign ministry.

“With its latest steps, Iran is threatening a successful outcome to the Vienna talks despite the progress achieved in six rounds of negotiations,” they said, and urged Iran to return to the talks, which began in April and adjourned on June 20. No date has been set for a next round.

U.S. State Department spokesman Ned Price said that Washington was not setting a deadline for the talks but noted “that as time proceeds Iran’s nuclear advances will have a bearing on our view of returning to the JCPOA.”

Price said the United States found it “worrying” that Iran was continuing to violate the agreement “especially with experiments that have value for nuclear weapons research.

“It’s another unfortunate step backwards for Iran,” he said.

Reporting by Francois Murphy in Vienna and by Humeyra Pamuk and Arshad Mohammed in Washington;
Additional reporting by Doina Chiacu, Jonathan Landay and Simon Lewis in Washington and by David Milliken in London;
Writing by Francois Murphy and Arshad Mohammed
Editing by David Goodman and Sonya Hepinstall

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Mapuche woman picked to lead architects of Chile’s new constitution

SANTIAGO, July 4 (Reuters) – Delegates chose a woman on Sunday from Chile’s majority indigenous Mapuche people to lead them in drafting the country’s new constitution – a dramatic turnaround for a group that is unacknowledged in the country’s present rule book.

Elisa Loncon, 58, a political independent, is a Santiago university professor and activist for Mapuche educational and linguistic rights. She was picked by 96 of the 155 men and women, including 17 indigenous people, who make up the constitutional body that will draft a new text to replace Chile’s previous magna carta produced during the dictatorship of Augusto Pinochet.

Loncon accepted the position with fist clenched above her head, telling her colleagues to noisy celebrations: “I salute the people of Chile from the north to Patagonia, from the sea to the mountains, to the islands, all those who are watching us today,” she said.

“I am grateful for the support of the different coalitions that placed their trust and their dreams in the hands of the Mapuche nation, who voted for a Mapuche person, a woman, to change the history of this country.”

Her election represents a high point in a day of high drama which included the suspension of the delegates’ swearing in after protests outside and inside the venue, and clashes with police forced a delay to the event.

Problems arose after marches organised by independent, left-wing and indigenous groups fielding delegates for the constitutional body, as well as other interest groups, met heavily armed police manning barricades outside Santiago’s former congress building where the ceremony was being held.

Delegates inside the event then remonstrated with the organisers over heavy-handed police tactics, banging drums and shouting over a youth classical orchestra playing the national anthem.

A constitutional assembly member gestures as they gather for the first session to draft a new constitution, in Santiago, Chile July 4, 2021. REUTERS/Ivan Alvarado

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Amid demands by delegates for “repressive” special forces police to be withdrawn, the electoral court official presiding over the ceremony agreed to suspend the event until midday.

The fracas underscored the intense challenges for the drafting of a new magna carta against a backdrop of deep divisions that still simmer after Chile was torn apart by massive protests that started in October 2019 over inequality and elitism and were fueled by a fierce police response.

The constitutional body was picked by a popular vote in May and is dominated by independent and leftist candidates, some with roots in the protest movement, with a smaller share of more conservative candidates backed by the current centre-right government.

The delegates have vowed to address topics including water and property rights, central bank independence and labour practices, prompting jitters among investors of potentially significant changes to the free market system of the world’s top copper producer.

Before the ceremony began, Aymara and Mapuche delegates held spiritual ceremonies with song and dance in the downtown streets surrounding the body’s new headquarters and on a nearby hillside.

Unrecognised in the current constitution, they are hoping a new text will afford their nations new cultural, political and social rights.

The commission has up to a year to agree a common rulebook, establish committees and draft a new text.

Leandro Lima, a Southern Cone analyst for Control Risks, said the independents brought “legitimacy” to the process given Chileans’ deep mistrust in established politics but a paucity of policymaking experience and deep ideological divisions could cause critical delays to the drafting of the text itself.

Reporting by Aislinn Laing
Editing by Marguerita Choy and Diane Craft

Our Standards: The Thomson Reuters Trust Principles.

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METL Tires Using NASA Tech Are Coming to Bikes

Image: The Smart Tire Company

When you’re exploring another planet, the last thing you want to have to deal with is tire damage when AAA is millions of miles away. It’s a concern that prompted NASA to develop an airless titanium tire that’s flexible like rubber, but nearly indestructible. As has been the case with many of NASA’s inventions over the years, that space age tire technology will soon be available to consumers.

Using air-filled rubber tires on a vehicle just isn’t a practical solution for exploring nearby celestial bodies whose natural terrain is covered in rocks and sharp objects. So for the handful of wheeled vehicles that NASA has sent to the moon and Mars, metal wheels are a better alternative. For the Lunar Rover, which Apollo 15 brought to the moon, wheels made of hollow metal springs were created that could absorb bumps to make the ride more comfortable for astronauts. But most metals lose their shape over time and become brittle when repeatedly flexed, resulting in misshapen wheels that don’t roll as well, and even worse, severe damage that prevents them from rolling at all.

As an alternative, NASA has spent several million dollars over the past seven years developing Nitinol: a metal alloy made of aluminum and titanium that behaves differently. Metal springs eventually lose their ability to spring back to their original shape because the bonds between their atomic structures become so stretched they’re no longer able to return to their initial arrangements. But Nitinol features a more ordered atomic structure and exhibits something known as the shape memory effect, which allows it to be deformed but return to its original manufactured shape again and again without permanent damage. It allows metal tires to be created that can deform to absorb the impact of uneven terrain like rubber, without the possibility of a flat tire occurring.

Image: The Smart Tire Company

It’s incredible technology that will soon be available in the coming years for a vehicle that will probably never leave Earth’s atmosphere: your bike. A startup called The Smart Tire Company has announced that it’s creating a metal bicycle tire using NASA’s Nitinol alloy that never needs to be inflated, will never spring a leak, and will probably survive a lot longer than the bike itself.

Called the METL (Martensite Elasticized Tubular Loading) tire, its creators are hopeful it will be available as an alternative to premium bike tire options as early as 2022. It remains to be seen just how much a titanium alloy bike tire will cost, but you can assume that it will be a long time before kids find a bike with Nitinol wheels under the Christmas tree. For cyclists who are happy to spend tens of thousands of dollars on their bikes, however, the METL tires could be the last set they ever have to buy, although they’ll still require regular maintenance.

Image: The Smart Tire Company

The most common problem with airless tires is that they often feature open structure designs that can allow debris to get inside and throw off the balance of the wheel. Using a structure made of metal instead of rubber further complicates things because the smooth finish means the tire doesn’t have much grip. To solve this, the METL tires will also be finished with a rubber-like tread made from a material called Polyurethanium that adds grip and makes them suitable for riding on all terrains, including pavement, gravel, and dirt. Over time the tread will wear out and need to be reapplied, but that maintenance is expected to be a lot cheaper than having to regularly replace a set of tires.

The METL tires won’t suitable for every rider. They are, after all, made of metal, and are expected to be heavier than the premium lightweight tires used by professional cyclists and athletes. But for most other applications, including athletes who use larger bikes on off-road terrains, the tires won’t feel any different during a ride.

The Smart Tire Company is making a lot of promises about the advantages of its Nitinol tires over rubber ones—see this extensive FAQ on its website touting the virtues of the technology—and there’s good reason to be excited about the technology. Obviously NASA felt it was important enough to spend millions of dollars on its development. But we’ve been promised airless tires for many years now, from industry giants like Bridgestone who have the manufacturing capabilities to make them a reality. They’re still not here, though, not even for bikes, which is just about the least demanding application for the technology.

There’s little doubt that one day flat tires will be a thing of the past, but will it be thanks to this startup’s efforts? If it can deliver the METL tires in the next couple of years as it intends to, there’s good reason for Michelin, Goodyear, and Bridgestone to be concerned.

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