BERLIN (Reuters) – German sportswear company Adidas (ADSGn.DE) on Wednesday said it was temporarily shutting a “considerable” number of its stores in China due to the coronavirus outbreak. The company said the fast-spreading virus was having a negative impact on its business but added that it could not yet assess to what extent. Adidas has about 12,000 outlets in China, including franchise stores. Adidas saw sales growth slow to 11% in China in the July-September period from 14% in the second quarter. Several retailers have warned that coronavirus is taking its toll, including Nike Inc (NKE.N) and Hugo Boss (BOSSn.DE), which have both closed some stores in China. Adidas’s German rival Puma (PUMG.DE) said that factories will remain closed until Feb. 10. “We have so far not been informed of any production or shipment delays. A number of stores – both owned and operated and partner stores – remain closed for the time being due to local regulations”, a Puma spokesman said. “It is too early to comment on the effects of these closures”, he added. The group cancelled or postponed all Puma events in China in February including training and marketing meetings and put travel restrictions in place. Its Shanghai office remains closed until February 9. Nick Note: My opinion this is the first of many shutdowns in China and it will have a devastating effect on US corporation and the US supply chain. By extension when this hits if it hits as i believe. it will slam the US stock market like a stalled pickup truck stuck on the tracks at a oncoming freight train crossing.
Coronavirus turmoil spreads to airline cargo operation
MADRID/SEOUL (Reuters) – The air transport sector, already reeling from China passenger flight cancellations designed to slow the spread of coronavirus, now faces mounting freight and logistics disruption with broader repercussions at stake, economists warn. The thousands of dropped flights have already slashed “belly cargo” capacity in airliner holds, with operators like Lufthansa (LHAG.DE) also scaling back freighter services in response to crew health concerns and uncertain demand. The crisis has dimmed hopes of a rebound for air cargo after its worst year in the decade since the financial crisis, the International Air Transport Association, a group of 280 global airlines, said on Wednesday. Air cargo is widely seen as an early warning system for blips in global trade and business confidence that would not otherwise be easily visible for weeks or months. “We are in unknown territory with respect to the eventual impact of the coronavirus on the global economy,” IATA said. “With all the restrictions being put in place, it will certainly be a drag on economic growth.” Early victims of supply-chain breakdowns include Hyundai Motor Co. (005380.KS), forced to halt South Korean car production as flows of Chinese components dried up. But with manufacturing paused for the Chinese New Year – and planned stoppages at Airbus AIR.FR and elsewhere now being extended – it may be weeks before economies feel the full brunt of the freight upheaval currently playing out. As things stand, “many supply chains are essentially halted, so there’s nothing to transport,” Bernstein analyst Daniel Roeska said. “If you’re ordering people to stay in their houses it’s difficult to keep factories running.” Yet when output and freight demand pick up, operators once blighted by excess capacity may have the opposite problem, with sudden bottlenecks threatening customers and the wider economy. This week will see 25,000 fewer flights operated to, from and within China than a fortnight ago, aviation data firm OAG said, with services suspended by 30 airlines.
Some firms seeking to fly goods out of China are already finding prices prohibitive. One Shanghai-based e-commerce consultant told Reuters certain clients had delayed shipments after quoted cargo rates rose fivefold.
Freight forwarders are warning of “increased rate volatility for air freight, due to reduced belly cargo capacity,” according to Panjiva, the supply-chain research unit of S&P Global Market Intelligence. Air cargo represents less than 1% of global trade by tonnage but 35% by value, or about $6 trillion a year, Boeing says. In normal times about half that volume is carried in passenger jet holds, leaving China more dependent on freighter operations in the wake of the flight suspensions. Major air cargo carriers said they had no immediate plans to add China freighter services to replace the lost capacity. Korean Air Lines Co Ltd (003490.KS) and Japan’s ANA Holdings Inc (9202.T) both said higher China-bound shipments of medical supplies including masks had partially offset a decline in fresh food such as lobster and salmon and other goods. Germany’s Lufthansa said it had cut its freighter schedule to allow pilots to spend the night in Russia rather than China. The reduction also reflects lower demand, a spokesman said. Repercussions could be worsened by marine shipping cuts, S&P said – with Maersk, CMA-CGM and ONE among container lines that have discussed reducing Asia-Europe capacity. Delays to surface shipping may cause pockets of air freight demand as suppliers re-route goods to avoid delay penalties. “One of our customers is moving a shipment to air freight because they do need goods before the intended arrival date,” said Ben Bradley, a rail operator at Davies Turner in Britain.He was referring to the cancellation of a Feb. 15 rail shipment to London from Wuhan, the city at the center of the outbreak. Once Chinese production recovers, dedicated cargo carriers like United Parcel Service Inc (UPS.N), FedEx Corp (FDX.N) and DHL stand to benefit most, said Cowen analyst Helane Becker. Nick Note: I see the whole China supply chain collapsing if this continues much longer……
Brexit trade tensions rise as UK ‘hires more patrol boats
Brits to keep out EU fishing fleet ahead of showdown over access to British waters
- EU access to UK waters will be crucial issue during post-Brexit trade discussions
- Brussels is adamant European trawlers must be able to continue to fish near UK
- But government said priority in UK fishing grounds will be given to British boats
Britain is bolstering the ranks of its fishing police force ahead of a potential showdown with the European Union over post-Brexit access to UK waters. Fishing rights have already emerged as one of the key battlegrounds in future partnership talks between the UK and the EU. Brussels is adamant that there must be ‘reciprocal access’ on fishing so that existing arrangements which allow European trawlers to fish near the UK can continue. But the government is equally adamant that who fishes in British waters will solely be a decision for ministers and priority will be given to British boats.
Meanwhile, a further 22 boats are on standby to help out if they are needed and more than 30 extra enforcement officers have been recruited to inspect fishing vessels and make sure they have the right to be in UK waters. The RNFPS currently has four River-class offshore patrol vessels and one helicopter so the additional boats – first reported by Politico – represents a significant increase in capability. Boris Johnson said in a big Brexit speech on Monday that the UK is ‘ready to consider an agreement on fisheries, but it must reflect the fact that the UK will be an independent coastal state at the end of this year 2020, controlling our own waters’. He added: ‘And under such an agreement, there would be annual negotiations with the EU, using the latest scientific data, ensuring that British fishing grounds are first and foremost for British boats.’ But the EU’s chief Brexit negotiator Michel Barnier said there needed to be ‘reciprocal access to our territorial waters and our markets’. He also insisted that ‘agreement on fisheries will be inextricably linked to the trade agreement’.
EIA Weekly Petroleum Status Report
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.4 million barrels from the previous
week. At 435.0 million barrels, U.S. crude oil inventories are about 2% below the five year average for this time of year.
U.S. crude oil refinery inputs averaged 16.0 million barrels per day during the week ending January 31, 2020, which was 48,000 barrels per day more than the previous week’s average. Refineries operated at 87.4%of their operable capacity last week. Gasoline production increased last week, averaging 9.9 million barrels per day. Distillate fuel production
decreased last week, averaging 5.0 million barrels per day. U.S. crude oil imports averaged 6.6 million barrels per day last week, down by 46,000 barrels per day from the previous week. Over the past
four weeks, crude oil imports averaged about 6.6 million barrels per day, 12.3% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 676,000 barrels per day, and distillate fuel imports averaged 194,000 barrels per day. U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.4 million barrels from the previous
week. At 435.0 million barrels, U.S. crude oil inventories are about 2%below the five year average for this time of year. Total motor gasoline
inventories decreased by 0.1 million barrels last week and are about 4% above the five year average for this time of year. Finished gasoline
inventories increased while blending components inventories decreased last week. Distillate fuel inventories decreased by 1.5 million barrels
last week and are about 4% below the five year average for this time of year. Propane/propylene inventories increased by 0.6 million barrels
last week and are about 37% above the five year average for this time of year. Total commercial petroleum inventories decreased last week by 0.9
million barrels last week. Total products supplied over the last four-week period averaged 20.3
million barrels per day, down by 4.7% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.7
million barrels per day, down by 3.1% from the same period last year. Distillate fuel product supplied averaged 3.9 million barrels per day over
the past four weeks, down by 12.4% from the same period last year. Jetfuel product supplied was down 0.5% compared with the same four-week period last year.The West Texas Intermediate crude oil price was $51.58 per barrel onJanuary 31, 2020, $2.51 below last week’s price and $3.71 less than
a year ago. The spot price for conventional gasoline in the New York Harbor was $1.534 per gallon, $0.025 less than last week’s price but $0.071 above a year ago. The spot price for No. 2 heating oil in the New York Harbor was $1.595 per gallon, $0.114 below last week’s price and $0.286 under a year ago. The national average retail regular gasoline price was $2.455 per gallon on February 3, 2020, $0.051 lower than last week’s price but $0.201 over a year ago. The national average retail diesel fuel price was $2.956 per gallon, $0.054 per gallon below last week’s level and $0.010 under
a year ago
Tesla slumps over 19% amid Model 3 delay
Tesla Inc. extended losses on Wednesday as it dropped more than 19% following a coronavirus-caused delay of China-made Model 3 delivery. The company had its largest fall on record after it surged nearly 100% since the beginning of the year. Tesla’s equities hit the all-time high on Tuesday, reaching a $968.99 per share valuation. The company’s stocks lost 17.20% at 1:33 pm ET to trade for $735.56 per share.
Wuhan coronavirus crematoriums ‘working 24/7′ burning ‘100 bodies a day’ insider claims
A worker at a funeral home in Wuhan has reportedly made the disturbing claims – as Chinese authorities have insisted the official death toll remains at just under 500. Chinese crematoriums are working “24/7” as they burn bodies of people killed by the coronavirus in Wuhan, it has been claimed. Workers are reportedly working flat out and without break as they are constantly sent the bodies of victims – it is claimed they have been burning 100 bodies every day since January 28. One insider, who is said to work at a funeral home in Wuhan, has reportedly revealed the long working hours to deal with the surge of coronavirus deaths.Crematorium workers are reportedly working in makeshift protective suits and masks as they handle the bodies. It comes after Chinese-state media issued a decree banning funerals and demanding near instant cremation for victims. Wuhan is epicentre of the outbreak, being the first city in China to be placed under full quarantine. Disturbing accounts and reports have been emerging from the city, leading to speculation that the death toll is being downplayed by the Communist Party. Fears thick ‘death’ smog over Wuhan confirms China is burning coronavirus bodies. The worker said staff are exhausted and are working without proper equipment. Identified only as Mr Yun, he said: “90 percent of our employees are working 24/7 … we couldn’t go back home.” Chillingly, he claimed: “All Wuhan cremation chambers are working 24 hours. He alleged “every day, we need at least 100 body bags” – which is much higher than the official death toll which is only now nearing 500. And the New York Times reports the residents in Wuhan now do not believe the Chinese government’s official death toll. It is claimed people with the symptoms are being turned away by overstretched hospitals. The health care system is reported to be completely overwhelmed, with doctors also having a shortage of testing kits. Chinese authorities are also now threatening to arrest people who spread “unofficial” information about the coronavirus. He said: “We can’t stop because we can’t leave the bodies outside for a long time. “For us who transfer the bodies, we don’t eat or drink for a long time in order to preserve the protective suit, because we need to take off the protective suit whenever we eat, drink, or go to the bathroom. “The protective suit can’t be worn again after being used. And another worker is reported to have said: “All male staff at our funeral home are picking up and moving bodies now, and female staff are answering the phones, disinfecting the funeral home, and so on.“We work 24 hours. We are very tired.” He claimed they do not have the proper equipment to disinfect the facility. They are having to wearing two layers of dipsoable gloves as they don’t have rubber gloves, and are having to wear swim goggles. He said: “We are on the verge of collapsing. We really need help.” Nick Note. I put this story in the near fake news slot. I reported it because it has some credibility……..
Trapped on virus-ravaged cruise ship, shocked passengers struggle to keep spirits up
It ain’t the love boat anymore…. Try Sick Ship
YOKOHAMA, Japan – Quarantined for two weeks on a cruise ship ravaged by coronavirus, the Britons on board have only one option: keep calm and carry on. David Abel and his wife Sally are still smiling, for now. Their friends Alan and Wendy Steele are going “stir crazy” trapped in their cabin – although they say they are not worried about catching the deadly illness. Still, this was not how the Steeles planned to spend their honeymoon. Many of the 2,666 passengers and 1,045 crew members on the Diamond Princess are struggling to keep their spirits up, after the luxury liner was quarantined off the Japanese coast Wednesday, with passengers forbidden to leave their cabins. Last Saturday, a man from Hong Kong who had spent five days aboard the ship was confirmed as having contracted coronavirus. On Wednesday, with the ship docked at the port of Yokohama, Japan’s Health Ministry said nine other passengers and one Filipino crew member had tested positive. The nine passengers who tested positive – two Australians, three from Japan, three from Hong Kong, and one American – have been transferred to hospitals, but none is in serious condition, said Japanese Health Minister Katsunobu Kato. They were among 31 people deemed at high risk who were initially examined for the virus, while samples from 242 other people are still being tested. For those left on board, there is nothing to do but sit in their cabins, wait for meals to be delivered, watch television or a choose from a limited selection of movies on demand. Those lucky enough to have a balcony can at least sit in the sun, look at the ocean and talk to their neighbors. Abel said his greatest sympathy is with those confined to the inside cabins. “Can you imagine? It would be liked being locked in a wardrobe, wouldn’t it?” he said. “No fresh air. No natural light. It really must be a living hell for them.” Other passengers tweeting from the ship or talking to Japanese media reflected the anxiety on board. “Still shocked and scared. But better precautions. Have faith in the crews and captain,” tweeted Yardley Wong, who describes herself as a Christian entrepreneur from Hong Kong. Life on board had been winding down on Tuesday as medical staff went through the boat interviewing and testing passengers, with the casino closed and evening’s main entertainment show canceled. But guests still gathered for dinner, and smaller events continued where passengers mingled, hours before the captain ordered all passengers to go to their cabins and stay there. A person with the Twitter handle @daxa_tw and tweeting in Japanese has been posting videos and photos of life on board. “As for myself, I am going to assume that I have already been infected,” he tweeted. In a direct message, he said he feared the number of infected people could grow significantly “because this is a cruise whose main purpose is socializing.” Calls to room service go unanswered as crew members struggle to deliver basic meals. That means passengers cannot get an alcoholic drink. Breakfast for many arrived about 11 a.m. – a problem for Abel, who has diabetes and needs to eat regularly to maintain his blood sugar levels. Passengers had received just one cup of coffee by early afternoon. On orders of Japan’s Health Ministry, they have been told they are not allowed to smoke, a problem for Wendy Steele, a 51-year-old nurse from Wolverhampton in Britain. For lunch, they were sent stale bread with ham, he said, a far cry from the meals that had been offered throughout the cruise.
“We’re basically being treated like we’re prisoners and criminals at the moment; that’s how we feel,” he said. “There’s nothing coming down the tannoy telling us when we’re going to be released onto the ship,” he added, referring to the public address system.
Negin Kamali, a public relations officer for Princess Cruise Lines, which is owned by British-American cruise operator Carnival, said the onboard guest experience team was working on developing “in-cabin activities and entertainment,” adding that the passengers will be allowed to leave the boat after 14 days. Nick Note: It sounds like the Bounty to me. With Captain Blythe, the only thing missing is the bread fruit. I am told their are 2 cruise ships under quarantine and two others being monitored. As you know i hate the flying virus filled test tubes called jetliners. And i have never been in favor of the floating barf barges. ALL have issues with to many damn people in confined spaces with bacteria laden recirculated air..
Oil jumps 3% on reports of effective coronavirus drug
A vaccine will be too late for the current virus but the breakthrough will be crucial if there is another outbreak
LONDON (Reuters) – Oil prices jumped by more than 3% on Wednesday on reports that scientists have developed an effective drug against the fast-spreading coronavirus that has weighed heavily on global economic activity.
News that the Organization of the Petroleum Exporting Countries and its producer allies are considering further output cuts to counter a potential squeeze on global oil demand further supported that had collapsed by more than 20% since early January.
China’s Changjiang Daily, the official newspaper of the city of Wuhan where the virus outbreak began, reported on Tuesday that a team of researchers led by Zhejiang University professor Li Lanjuan have found that drugs Abidol and Darunavir can inhibit the virus in vitro cell experiments. Separately, Sky News reported that a British scientist has made a significant breakthrough in the race for a vaccine by reducing part of the normal development time from two to three years to only 14 days.
A vaccine will be too late for the current virus but the breakthrough will be crucial if there is another outbreak, Sky said
Nick Note: The jerk me off stage. Drug companies are not racing for a cure…. They are racing for a multi billion dollar contract to produce BULLSHIT for stupid ass politicians to show they are doing something……..and the even dumber (if Possible) gullible desperate panic stricken public.
Saudis mull deep oil output cuts over coronavirus: Reports
Saudi Arabia is reportedly pushing for a major short-term output cut.
Representatives of OPEC and its allies, known as OPEC+, are meeting to discuss possible scenarios for how to respond to ebbing demand from China, the world’s largest oil consumer and the epicentre of the coronavirus outbreak.
Saudi Arabia, the kingpin of Organization of Petroleum Exporting Countries (OPEC), is reportedly pushing for a deep, short-term oil production cut in response to waning demand triggered by the coronavirus outbreak. Fears over how coronavirus could ripple through China and the broader fabric of the global economy hammered oil futures in January which witnessed the biggest monthly crude price drop in 30 years. One option being discussed by OPEC+ could see Saudi Arabia spearhead a collective output cut of 500,000 barrels a day until the crisis has passed, the Wall Street Journal, reported citing OPEC officials, and Reuters News Agency reported, citing two OPEC sources and a third industry source.
Another scenario under consideration could see the kingdom implement a temporary cut of 1 million barrels a day to jar oil prices, cartel sources tell the Wall Street Journal.
The cartel and 10 allied nations led by Russia have yet to agree on how to respond to falling crude demand in China in the wake of the coronavirus outbreak. Saudi Arabia wanted OPEC+ to schedule an emergency meeting of its full delegation, but the meeting this week will only be a technical one to discuss the impact of the outbreak on oil markets and produce recommendations to members, according to the Wall Street Journal. Cartel officials have told the Wall Street Journal that after this week’s meeting, producers will decide whether to hold a Joint Ministerial Monitoring Committee led by Saudi Arabia and Russia, or a later summit of all 23 producers in Vienna. OPEC sources have also told Reuters the group and its allies are also considering holding a ministerial meeting over February 14-15, ahead of a previously scheduled March meeting. As the coronavirus outbreak hit fuel demand in China, refiner Sinopec Corp told its facilities to cut throughput this month by about 600,000 barrels per day (bpd), or 12 percent – the steepest cut in more than a decade. Independent refineries in Shandong province, which collectively import about a fifth of China’s crude, cut output by 30-50 percent over a little more then half. Nick Note: Information i have leads me to believe the Saudis are abut to shock the markets with a 1 million BPD production cut. As you know i have had you short the shit out of oil…. SO JUST DO IT…. and we shall see what we shall see!!! remember i keep promising you that i want to lose as much money as possible… So help me out here!
API Reports Crude Inventory Build
The American Petroleum Institute (API) Reported a crude inventory build of 4.18 million barrels for the week ending January 31, compared to analyst expectations of a 2.8-million-barrel build in inventory. Last week saw a drop in crude oil inventories of 4.27 million barrels, according to API data. The EIA’s report (which happens often) showed a build of 3.5-million barrels for that week. Oil prices were down yesterday in the afternoon hours, after trending upward earlier in the day on news that OPEC was in talks about what action to take in response to the effects of the coronavirus that have disrupted travel within China and consequently, oil demand. Today Wednesday April Brent crude oil is up $1.64(+2.90%) at $55.39. . Overall, the benchmarks have slid more than $10 since the beginning of the year. The API reported a build of 1.96 million barrels of gasoline for week ending January 31, after last week’s large 3.27-million-barrel build. Distillate inventories were down by 1.78 million barrels for the week, compared to last week’s 141,000 draw, while Cushing inventories rose by 960,000 barrels. US crude oil production as estimated by the Energy Information Administration showed that production for the week ending January 24 stayed at 13.0 million bpd for a third week in a row, a record high for the United States.