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Factbox: Companies feel impact of coronavirus outbreak in China

(Reuters) – Companies around the world have warned that a coronavirus outbreak in China could disrupt supply chains or hurt bottom lines as factories and shops shut and airlines suspend flights.

FINANCIAL IMPACT:

** Apple (AAPL.O) gave a wider-than-usual revenue outlook range for the March quarter to factor in uncertainty. Apple, which has suppliers in Wuhan, the central Chinese city at the heart of the outbreak, said the reopening of some suppliers’ factories outside Wuhan had been moved to Feb. 10 from the end of January.

** Baidu (BIDU.O) postponed the announcement of its fourth-quarter results.

** Carlsberg (CARLb.CO) expects the virus to hurt business, but said it was too early to give an estimate.

** Electrolux (ELUXb.ST) said the epidemic could have a material impact if its Chinese suppliers were further affected and that it was implementing contingency plans.

** Foxconn’s (2317.TW) shipments to customers including Apple could be disrupted if a Chinese factory halt extends into a second week, a source said. Foxconn has halted almost all its production in China, the person said.

** H&M (HMb.ST) said store closures in China – about 45 – hurt sales in January. The company said its flexible supply chain had limited disruptions.

** Jaguar and Land Rover parent Tata Motors (TAMO.NS) expects the outbreak to hamper production in China and hit profits.

** Levi Strauss (LEVI.N) shut about half its stores in China and said it will take a near-term hit.

** LG Display (034220.KS) said it had not closed any factories in China but warned the outbreak increased uncertainty for suppliers.

** McDonald’s (MCD.N), which closed several hundred of its roughly 3,300 outlets in China, said the overall impact on profits would be “fairly small” if the virus stayed contained in China.

** Japanese trading house Mitsui (8031.T) expects manufacturing activities to slow in automobile and other sectors, and possibly reduce steel product demand.

** Pandora (PNDORA.CO) said the virus had led to an “unprecedented” decline in consumer traffic in China and Hong Kong and that it was unable to estimate impact immediately.

** Remy Cointreau (RCOP.PA) warned that a potential impact from the outbreak would be significant because of its big exposure to China.

** Royal Caribbean Cruises (RCL.N), which cancelled three trips of its China-based cruise liner, trimmed its 2020 earnings forecast, adding it would take a further hit if travel restrictions continued until the end of February.

** Samsung Electronics (005930.KS) extended a holiday closure for some factories in line with Chinese government guidance but declined to comment on the impact.

** Samsung affiliate and battery maker Samsung SDI (006400.KS), which counts Volvo (VOLVb.ST) among its customers, warned of a hit to its March-quarter earnings.

** Sony (6758.T), which raised its annual profit outlook, said impact from the virus could offset the revision.

** SK Hynix (000660.KS), which has a chip plant in the eastern Chinese city of Wuxi, said the outbreak had not disrupted production but that could change if the situation was prolonged.

** Starbucks (SBUX.O), which closed more than half its roughly 4,300 stores in China, delayed a planned update to its 2020 forecast and said it expects a material but temporary hit.

** Tesla (TSLA.O) warned a 1-1.5 week delay in the ramping up of production of its Shanghai-built Model 3 cars could slightly hurt March-quarter profit after China ordered a shutdown of the factory. Tesla is also evaluating whether the supply chain for cars built in its California plant will be affected.

STORE/FACTORY CLOSURES:

** Companies including Apple, Alphabet’s (GOOGL.O) Google and Deere (DE.N) temporarily closed facilities in China.

** Fast Retailing (9983.T) closed about 280 of its 750 Uniqlo stores in China.

** Haidilao (6862.HK) shut restaurants and IKEA closed its stores in China. Burger King (QSR.TO) shut some restaurants.

** Hyundai Motor (005380.KS) said it will suspend production in South Korea due to the coronavirus outbreak disrupting parts supply, becoming the first major automaker to do so outside of China. [L4N2A41I5]

** Swatch (UHR.S) closed five stores in Wuhan, Yum China (YUMC.N) closed some KFC and Pizza Hut stores in the city, Luckin Coffee (LK.O) closed its cafes and AB Inbev (ABI.BR) suspended production at its brewery.

** Toyota Motor (7203.T) shut factories in China through Feb. 9.

** Walt Disney (DIS.N) shut its resorts and theme parks in Shanghai and Hong Kong.

HOTELS, BOOKING PLATFORMS, AGENCIES:

** Hyatt (H.N) and Shangri-La said they will allow travellers from China to cancel hotel bookings for free through Feb. 29.

** InterContinental Hotels (IHG.L) said it would allow customers to cancel for free reservations made for China for specific dates..

** Ctrip, China’s largest online booking platform, said more than 300,000 hotels on its platform had agreed to refunds on bookings between Jan. 22 and Feb. 8.

** Fliggy, Alibaba’s (BABA.N) booking site, offered similar refunds, as did several Chinese and European tour operators.

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UK-EU divergence is at odds with supposed Canada-style deal

Trade officials on both sides are likely to drag the Brexit deal past 2020 as contentious issues like tariff reductions and services negotiations will not be resolved so easily, says Deborah Elms, executive director of the Asian Trade Centre.  Nick Note: I can prove to you the world is FULL of the dumbest stupid assholes that ever lived and they are in positions of power. I keep telling you their is NO TRADE DEAL….. And get this THEIR WILL BE NO TRADE DEAL. So the sooner the Brits grow a hairy set of balls and tell Europe  their historic enemy the Germans ti KISS OFF the better they  will be. Pick up the phone and tell Merkil to kiss my bitter tasting ass. Keep the $35 billion in exit fee money. Then offer no taxes for any European company that locates in England. And for some really fun put 100% duty on German cars and Trucks. And call the French and Dutch car and truck markers and ask do you still want access to the biggest market in Europe? them here is how you get 0% duty… Remove all trade barriers or go get fucked with the Germans. With a deal the pound and the  British economy  will soar! The Brits do not have any negotiators so the pound will get pounded… I can’t wait. For the Germans this is not about trade its punishing the Brits for leaving. When you see things in this light it all makes sense. AND PROOF THEY ARE ALL STUPID!

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Search Results Web results Oil demand in China continues to fall amid coronavirus fears

Oil prices have slid to 13-month lows as fears of coronavirus outbreak rise. Azlin Ahmad of Argus Media says that OPEC needs to make a “big announcement” if it wants to push prices back up. Nick Note: That is EXACTLY what i think they will do and that is why we are buying the shit out of oil. And soon enough this hysterics will pass and viral flue season will be over. And things will return back to normal.. So in the mean time the sky is falling falling falling i tell you!

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Tents set up as a coronavirus precaution at March Air Reserve Base in Riverside County

Three tents were erected at March Air Reserve Base in case planes carrying passengers who need medical screening are unexpectedly rerouted to the base

RIVERSIDE — Three large tents were erected on the tarmac of March Air Reserve Base — where 195 coronavirus evacuees remained under federal quarantine orders — as a precaution in case additional planes carrying passengers who need medical screening are unexpectedly rerouted to the base, officials said Sunday. The tents were set up to meet a request from federal officials to provide enough housing at the facility for at least 250 more people in individual rooms in case a plane carrying passengers who need to be medically screened is temporarily diverted to March ARB, such as in the case of bad weather or for refueling, according to Brooke Federico, a public information officer for Riverside County’s County Executive Office. “Because of the time involved in constructing the tents, officials decided to have them in place in case any planes were unexpectedly diverted to March (ARB),” Federico said.

News of the tents came as officials said three more cases of coronavirus had been confirmed in California’s Santa Clara and San Benito counties. Eleven U.S. cases have now been confirmed.

PRESS RELEASE: Six cases of novel #coronavirus have been confirmed in California. As said by @CDPHDirector and State Public Health Officer Dr. Sonia Angell, the risk to the general public remains low. Read the release here: https://t.co/IiC2Fwl5X3#nCoV2019 #NovelCoronavirus

— CA Public Health (@CAPublicHealth) February 3, 2020

Nick Note: A pandemic and the ensuing panic is a terrible thing to waste!

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Boris Johnson will RULE OUT accepting EU regulations

 he lays out terms for Canada-style agreement today

  • Prime Minister will tell EU leaders he wants a Canada-style free trade agreement
  • Boris Johnson will say he would rather accept trade tariffs than EU rules 
  • His speech comes as the EU will also unveil its guidelines for Brexit talks

Boris Johnson will today rule out accepting Brussels regulations as he squares up to the European Union over a trade deal. Setting out his vision for the country’s post-Brexit relationship, the Prime Minister will tell EU leaders he wants a Canada-style free trade agreement. But in a tough-talking speech, he will warn they must drop demands that the UK sticks to their regulations as the price of a deal. If the leaders refuse to back down, Mr Johnson will say he would rather accept trade tariffs than EU rules and would instead follow Australia’s trading relationship with the EU, which is based on World Trade Organisation terms. ‘In either case, I have no doubt that Britain will prosper,’ the Prime Minister will say. Boris Johnson will today rule out accepting Brussels regulations as he squares up to the European Union over a trade deal His speech, which he will deliver to an audience of business leaders and ambassadors in London, comes as the EU will also unveil its guidelines for Brexit talks. The two sides are set on a collision course as the EU insists that any deal is dependent on the UK signing up to a ‘level playing field’ on regulations and rules, which would effectively stop British businesses being able to undercut those on the continent.  But the Prime Minister will argue no other country which has a trade deal with the EU has been forced to sign up to such obligations. He will say: ‘There is no need for a free trade agreement to involve accepting EU rules on competition policy, subsidies, social protection, the environment or anything similar, any more than the EU should be obliged to accept UK rules. In the ‘very unlikely event’ that talks do not succeed, Mr Johnson will say in his speech he will seek a much looser arrangement. ‘The choice is emphatically not ‘deal or no deal’.  The question is whether we agree a trading relationship with the EU comparable to Canada’s – or more like Australia’s,’ he will insist. ‘In either case, I have no doubt that Britain will prosper.’  But Foreign Secretary Dominic Raab said any suggestion the UK will have to follow EU rules and laws after 2021 ‘just ain’t happening’. He told Marr that staying tied to EU regulations ‘obviously defeats the point of Brexit’. At the end of the transition period in December, the country will leave the EU’s Common Fisheries Policy, which dictates how much British trawlers can catch and where. Fishermen complain they do not get a fair share of what is caught in UK waters. The Fisheries Bill going through Parliament will end the automatic right of EU vessels to fish in British waters, with access to fisheries set to be a matter for the UK to negotiate regulations in any trade deal. Nick Note: Bye bye Pound!

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U.S. whipping up panic over virus, China says, as Pakistan resumes flights

https://youtu.be/ICanbEch4Kw

BEIJING/SHANGHAI (Reuters) – China accused the United States on Monday of whipping up panic over a fast-spreading coronavirus with travel restrictions and evacuations as Chinese stocks plunged on the first day back from the extended Lunar New Year holiday. The death toll in China from the newly identified virus, which emerged in Wuhan, capital of the central province of Hubei, rose to 361 as of Sunday, up 57 from the previous day, the National Health Commission said. The World Health Organization (WHO) last week declared the flu-like virus a global emergency and it has since spread to 23 other countries and regions. The first death outside China was reported on Sunday – that of a 44-year-old Chinese man who had travelled from Wuhan to the Philippines. Airlines around the world have suspended flights but Pakistan, a close Chinese ally, bucked the trend on Monday and said it was resuming air travel after a three-day suspension.

  • U.S. health officials announce second case of person-to-person coronavirus transmission
  • Exclusive: Outbreak to hit iPhone output if China extends Foxconn factory halt – source

Wuhan and some other cities remain in virtual lockdown with travel severely restricted, and China is facing increasing international isolation. China accused the United States of spreading fear by pulling its nationals out and restricting travel instead of offering significant aid. Relations between the two sides had just begun to recover after a long and bruising trade war. Washington has “unceasingly manufactured and spread panic”, Chinese Foreign Ministry spokeswoman Hua Chunying told reporters, noting that the WHO had advised against trade and travel curbs. “It is precisely developed countries like the United States with strong epidemic prevention capabilities and facilities that have taken the lead in imposing excessive restrictions contrary to WHO recommendations,” she added, saying countries should make reasonable, calm and science-based judgements. Chinese delegate Li Song said the international community should treat the outbreak objectively and not “deliberately create panic” among the general public. A woman wears a face mask in a market alley in Jiujiang, Jiangxi province, China, as the country is hit by an outbreak of a new coronavirus, February 1, 2020. REUTERS/Thomas Peter Li said China had shared information about the virus with self-ruled Taiwan, which China claims as its own. Shut out of the WHO, Taiwan is being included as a high-risk area as part of China but is unable to get epidemic information first-hand. It has only 10 coronavirus cases compared with thousands in China. Taiwan’s Foxconn (2317.TW), which makes smartphones for Apple (AAPL.O) and other brands, has halted “almost all” of its production in China after companies were told to shut until at least Feb. 10, a source said. The company did not immediately respond to a request for comment. President Xi Jinping said controlling the virus was China’s most important task. “Xi stated that the prevention and control of the pneumonia epidemic is directly related to the people’s life safety and fitness, directly related to the overall economic and social stability, and directly related to China’s opening,” Xinhua state news agency said. Chinese stocks .SSEC closed down almost 8%, wipe $393 bln off the market value, the yuan currency had its worst day since August, and Shanghai-traded commodities from oil to copper hit their lower limits — all despite the central bank’s biggest cash input into financial markets since 2004. The WHO saud at least 151 cases had been confirmed in 23 other countries and regions, including the United States, Japan, Thailand, Hong Kong and Britain. Chinese-ruled Hong Kong, rocked by months of sometimes violent anti-China protests, announced the closure of four more border crossings with mainland China, leaving just three open. Australia evacuated 243 people from Wuhan and will quarantine them on a remote island. On Saturday it had followed the United States in barring entry to all foreign nationals travelling from mainland China. The virus is thought to have emerged late last year in a Wuhan market illegally trading wildlife. The number of deaths in China has now passed the total Chinese toll from the 2002-03 outbreak of Severe Acute Respiratory Syndrome (SARS), another coronavirus that emerged from China and killed almost 800 people around the world. Even so, Chinese data suggests the new coronavirus, while more contagious than SARS, is significantly less lethal, although such numbers can evolve rapidly.

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Oil hits 13-month lows as coronavirus worries rattle market

NEW YORK (Reuters) – Oil prices fell to the lowest in more than a year on Monday, dragged down by concern over demand in China after the coronavirus outbreak, though the possibility of deeper crude output cuts by OPEC and its allies offered some price support. “The coronavirus is the number one issue in the global market right now,” said Phil Flynn, analyst at Price Futures Group in Chicago. “We have not seen a demand destruction event of this scale that moves this quickly.” As the coronavirus outbreak hits fuel demand in China, the world’s biggest crude oil importer, refiner Sinopec Corp (0386.HK) told its facilities to cut throughput this month by about 600,000 barrels per day (bpd), or 12%, 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% in a little more than a week, executives and analysts said. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are considering a further 500,000 bpd cut to their oil output, three OPEC sources and an industry source told Reuters. The Wall Street Journal reported that another option being considered would involve a temporary cut of 1 million bpd by Saudi Arabia to jolt oil markets. “The market needs assurances that the supply/demand equation remains in balance for prices to hit a floor. This suggests a commitment from OPEC not just to extend oil supply cuts, but even implement deeper ones beyond March,” said FXTM analyst Hussein Sayed. Iranian Oil Minister Bijan Zanganeh said the oil market is under pressure with prices dropping below $60 a barrel, and “efforts must be made to balance it.” Ratings agency Fitch on Monday said the coronavirus outbreak could push the global oil market into surplus and that OPEC+ may need to cut production further if the outbreak lasts for several months. On the first day of trade in China since the Lunar New Year holiday, investors erased $393 billion from the nation’s benchmark equities index, sold the yuan currency and dumped commodities as coronavirus fears dominated market.

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OPEC+ Considering Further 500,000 bpd.. to meet Tuesday

Singapore — Benchmark Dubai crude future spreads continued their downward spiral on the first trading day for February, with OPEC’s call for an urgent meeting of its technical committee on Tuesday and Wednesday doing little to assuage fears of a slowdown in oil demand on the back of the spread of the coronavirus. Crude oil prices are being underpinned slightly by a more positive tone in world markets that have been gripped by worries over the economic fallout from the spread of the coronavirus.  The markets opened lower as traders assessed the spread of China’s coronavirus and its potential impact on global economic growth and demand for crude. On Monday, Iranian Oil Minister Bijan Zanganeh said the spread of the coronavirus had hit oil demand and called for an effort to stabilize oil prices. “The oil market is under pressure and (Brent) prices have dropped to under $60 a barrel and efforts must be made to balance it,” Zanganeh said. He said Iran would agree to holding an earlier OPEC meeting if the rest of the group’s members agreed to oil production cuts. OPEC and its allies, a group known as OPEC+, are considering meeting in February instead of March. OPEC and its allies are considering cutting their oil output by a further 500,000 barrels per day (bpd) due to the impact on oil demand from the coronavirus, two OPEC sources and a third industry source familiar with discussions said, and Reuters reported. OPEC+ is considering holding a ministerial meeting on February 14-15, one of the OPEC sources said, earlier than a current schedule for a meeting in March.

Additionally, an OPEC and non-OPEC panel called the Joint Technical Committee (JTC) has scheduled a meeting for February 4-5 in Vienna to assess the impact of the virus on demand, other OPEC+ sources said.

The technical panel is likely to make a recommendation on any further action to support the market, the sources said. The partners are also discussing the duration of the cuts and separate OPEC sources said last week the group wanted to prolong the curbs until at least June. Prices are being underpinned slightly by a more positive tone in world markets that have been gripped by worries over the economic fallout from the spread of the coronavirus. Talk of additional production cuts or an extension of the current cuts has helped slow down the selling. Any positive news from OPEC+ is likely to trigger a short-covering rally, but with the virus spreading and uncertainty over the impact on China’s economy rising, any price rise is likely to be short-lived. OPEC+ will hold a technical meeting on Tuesday and Wednesday to discuss the impact of the deadly coronavirus on oil demand, OPEC sources told S&P Global Platts on Sunday, as oil prices fall due to the outbreak. No specific production cuts have been discussed, just talks over whether to move up the ministerial meeting, one source said.

Some members are “already panicking,” an OPEC source said.

The outbreak is expected to blunt global oil demand by at least 900,000 b/d in February and 650,000 b/d in March, according to S&P Global Platts Analytics. In a worst case scenario involving travel curtailments, demand could drop by up 2.6 million b/d in February and 2 million b/d in March. Flat prices for oil — including those for benchmark Dubai cash and futures — have taken a beating in January due to fears of the virus triggering an economic slowdown in China. The second-month Dubai futures flat price, which was assessed at $63.77/b on January 02, closed the month 11% down at $56.54/b on January 31. Flight cancelations to China, and restrictions on the travel of Chinese citizens to other countries are some of the measures that may impact the Asian behemoth’s economy. Trade-related voyages via air, land and marine routes are also expected to be affected. Several Arab countries are starting to halt their flights to China in an attempt to curb the spread of the virus, with Saudi Arabian Airlines and Qatar Airways issuing notices effective February 2 and 3, respectively. The meeting of the Joint Technical Committee of the 23-member OPEC/non OPEC coalition known as OPEC+ in Vienna will determine whether the full ministerial meeting scheduled for March 5-6 should be moved forward, three OPEC sources said. OPEC+ members are in the midst of cutting 1.7 million b/d, up from 1.2 million last year, as part of a deal reached in December. The new deal is supposed to last until the end of March.

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OPEC may meet early as coronavirus impacts oil prices

LONDON (Bloomberg) – OPEC members are considering holding an emergency meeting next month, as oil prices sink on concern the coronavirus outbreak will hit demand. Algerian Energy Minister Mohamed Arkab said the producer group’s meeting scheduled for March is likely to be moved to February, the Algerie Presse Service reported. A decision may be taken “in the coming days,” he said. He currently holds the rotating post of OPEC President, giving him the authority to convene emergency meetings in consultation with the Secretary-General and other members. One delegate from an OPEC member said privately it could happen as soon as next week, and another floated mid-February as a date. Still, several delegates said they were unaware of discussions to bring the March 5-6 meeting forward. There’s good reason to be skeptical about the prospective change of dates. If the group convenes an emergency meeting without announcing new measures, the disappointment among traders could push prices even lower. It already unveiled deeper production cuts just over a month ago, and as these are put into effect, Saudi Arabia — which has borne the greatest burden in reducing supply – has slashed output to the lowest since 2014. Any meeting would probably include non-members such as Russia, as the latest production targets have been set in concert with those allies. One delegate said the availability of Russian Energy Minister Alexander Novak would be a factor in deciding whether an early meeting could be called. Novak’s schedule has been an obstacle to meetings in the past, and he is due to participate in a Russian Investment Forum from Feb. 12 to 14 in the coastal resort of Sochi. The March 5-6 meeting is for OPEC+, and they’re due to discuss the future of oil-production cuts that expire at the end of March. The outbreak of the pneumonia-like corona virus has left 7,800 people infected and 170 dead since the first case was reported on Dec. 30 in Wuhan, the capital of China’s Hubei province. As airlines across the globe suspend flights to China, oil prices have slumped, adding to the pressure on OPEC to extend or deepen the group’s oil-production cuts. Brent crude has dropped more than 10% this month even after the U.S. killed a key Iranian general and Libya’s oil production was cut to near zero following a blockade of the nation’s ports that virtually halted exports. Saudi Arabia has said it’s “closely monitoring” the effect of the virus on the oil market. Nick Note: Buy the shit out of this drop. It won’t last long. They are in Algo LA LA land. You need hundreds of millions sick and dying to justify prices this low…… It ain’t gonna happen.  Corona viruses have been around for decades. they are famous for flaring up with low kill rates and all of a sudden disappearing.

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Trump: We can’t let people with coronavirus come to US

United States President Donald Trump said on Sunday that the US “pretty much shut down” all travel from China to prevent more cases of the coronavirus coming to the country. “We’ve offered China help. But we can’t have thousands of people coming in who may have this problem, the coronavirus,” Trump stated in an interview with Fox ahead of the Super Bowl. On Friday, US Health Secretary Alex Azar declared a national health emergency over the deadly virus which originated in China with cases also reported in other countries, including the US. Azar also stressed that the US will block all foreign nationals who have been to China in the past 14 days from entering the US.