With Russia’s Help, China Becomes Plastics Making Power In Pandemic

After giving up on recycling — American recycling that is — China is still in love with the plastics biz. In fact. their companies are becoming dominant in all things plastic, one of the most important supply chains in the world.

In other words, it will be yet another segment in global business that the world will need Chinese companies to get supply.

The pandemic has helped the petrochemicals industry make up for losses in oil and gas demand. Plastics are tied to the fossil fuels industry. Stay-at-home orders throughout the U.S. and Europe has led to more take-out food orders and a lot of that is being placed in plastic containers.

I’d like to highlight one thing though: China’s Sinopec is the behemoth in this space, and although you can buy into Sinopec on the U.S. stock market, if the incoming Biden Administration makes good on a Trump order to delist Chinese companies that are not compliant with the financial audit rules under the Sarbanes-Oxley Act of 2002, then Sinopec will probably leave the NYSE.

According to industry consultant Wood Mackenzie, petrochemicals will account for more than a third of global oil demand growth to 2030 and nearly half through 2050.

The growth in both plastics consumption and production is mostly coming from Asia where economies are catching up with the western levels of plastics consumption, and becoming a source for plastics exports to the U.S. and Europe.

Within Asia of course, China is the powerhouse. Last year Exxon Mobil XOM -4.8% began constructing its $10 billion petrochemical complex in Huizhou, China.

Russia Joins China, Wants To Be ‘Indispensible’

Russia’s petrochemical giant Sibur is also locked into China, mainly through a Sinopec partnership. The two companies began work on one of the world’s largest polymer plants for plastics making last August, spending $11 billion on the Amur Gas Chemical Complex in Russia.

The two sides are intimately connected in the global plastics biz.

“Amur is a milestone in the cooperation between Sinopec and Sibur,” Zhang Yuzhuo, chairman of Sinopec, says in a press statement, calling it a “model for Sino-Russian energy cooperation.”

The entire industry, while not exactly the sexy and green industry the Davos crowd is promoting heavily in the Western world, is seen by China and still-emerging markets like Russia — as a development tool for regions far away from the big city hubs of Moscow or Shanghai. This is as much about job creation as it is pumping out plastic molds and the ethylene needed to make it.

Russia recently introduced negative excise tax on LPG and ethane used in petrochemicals which was a meaty financial bone thrown to Sinopec and Sibur’s Amur project, among others in the Russian far east. 

The Sibur Russia angle has gained momentum recently due to the ramp up in production from the new ZapSib Siberian facility last year. They make polyethylene and 500 thousand tons of polypropylene there; all must-have ingredients for plastics manufacturers.

Their relationship with Chinese investors, buyers and counterparties was one of the main reasons to even build that manufacturing plant in the first place, and is something the Moscow market likes to give as one of the best reasons to be bullish about a rumored initial public offering for Sibur.

Sibur has said in press statements that they expect “another jump in scale” of plastics chemicals output with the addition of the Sinopec project, Amur.

“Sibur has long built relationships with Chinese clients, partners, and investors and Sinopec has been our strategic partner since 2013,” says Dmitry Konov, Chairman of the Management Board for Sibur. Konov told Reuters recently that there was no timeline for any IPO in the Moscow Exchange. Moscow was home to one of the top four largest IPOs last year, shipping firm Sovcomflot.

Konov said their logistical advantages in the far east, near China, and competitive pricing for its polymers means they will “scale up these relationships to further expand the delivery of high-quality petrochemicals from Siberia to China.”

VTB Capital, a Russian investment bank, says those projects would allow Russia to become one of the world’s top four producers of ethylene by 2030. Russia wants to position itself as the indispensable partner to China in this space, much in the way that China has positioned itself as the key source for numerous key inputs, whether its cobalt used in electric vehicle car batteries, or solar panels now expected to criss-cross the U.S. in the Biden Administration.

Due to the pandemic, China has been focused on industries of the future alongside those needed to get itself, and its trading partners, out of the pandemic rut — those polypropylene Olive Garden to go containers might not come from China, but the plastics that made it sure might.

China remains the place for growth in this space, too. Plastics-use patterns and penetration are rising. Figure the Asians are a good 10 to 20 years behind the U.S. in terms of plastics use. They’re gaining fast.

China As Plastics Demand Driver

Plastics aren’t made from tree bark, that’s for sure. It comes from fossil fuels and non-organic chemical compounds that make the stuff designed to last hundreds of years.

And China now accounts for roughly 40% of the demand for the chemicals used in making it, an increase of just 20% in 2005. 

China’s ethylene demand grew by 8.6% between 2014-17 while global demand grew by only half that. 

Looking out five years, Deutsche Bank industry analysts said in a November 25 report that China will account for over half of global consumption growth for ethylene (to which Sibur and Russia are happy as their go-to for now). 

China has 50% self-sufficiency in ethylene and derivative products – the domestic desire to expand capacities and increase self-sufficiency remains high. Russia is a solution. But Sinopec will invest domestically, as will the big Western multinationals who are frowned upon doing similar work back home. Exxon is case in point.

China was a relatively late entrant to the global petrochemical industry, but that does not mean much. They ramp up, and rev up fast due to state subsidies and state-owned companies’ ability to obtain raw materials and pass them along downstream for pennies on the dollar. These are loss leaders, but China doesn’t care about that stuff. They are looking to produce plastics for the locals, and for the export markets, especially U.S. and Europe, which are increasingly disinterested in anything fossil fuels related, at least on paper. 

In the 1990s, the Chinese petrochemical industry was significantly smaller than the U.S. In 1995, China’s ethylene capacity totaled 3% of global capacity. In comparison, Japan had 9% of global ethylene capacity and Korea had 5% of global capacity. Ethylene is naturally occurring.

During the 2000s, China’s petrochemical industry grew substantially driven by government support and strong demand from government-directed infrastructure spending, a burgeoning middle class with rising disposable incomes, expanding residential construction and exports of course.

Between 2004 and 2012, China’s ethylene capacity — the flammable gas used to make ethanol for cars, fruit ripeners, and — more importantly, plastics — doubled to 11 million tons per year. Within 25 years, China’s capacity has moved from 3% of global to 16% of global. Who thinks they’re going to slow that down? Need plastic? China will have it. For now, Russia has the chemicals. China might just gain on that next. Follow me on Twitter or LinkedIn

Kenneth Rapoza

Kenneth Rapoza

I’ve spent 20 years as a reporter for the best in the business, including as a Brazil-based staffer for WSJ. Since 2011, I focus on business and investing in the big emerging markets exclusively for Forbes. My work has appeared in The Boston Globe, The Nation, Salon and USA Today. Occasional BBC guest. Former holder of the FINRA Series 7 and 66. Doesn’t follow the herd.

.

Business Casual

📚 Get your free copy of “Poorly Made in China” from Audible, in addition to a free 30-day trial! → https://amzn.to/3dkzN9T (Note: As an Amazon Associate, we earn from qualifying purchases). China has been the leader of the recycling industry for over 30 years, importing materials more than any country in the world and making billions of dollars in the process. But recently, the Chinese government took a tougher stance on recycling, effectively disrupting the global recycling industry. More importantly, China’s decision has caused major problems for many Western countries, since they were the ones exporting millions of tons of recyclable waste to China. ⭑

Subscribe to Business Casual → http://gobc.tv/sub ⭑ Enjoyed the vid? Hit the like button! 📚 If you enjoyed this video about #China and want to learn even more, we also recommend you read the book “Junkyard Planet: Travels in the Billion-Dollar Trash Trade Kindle” by Adam Minter 👉 https://amzn.to/2M4wY0z (note: as an Amazon Associate, we earn from qualifying purchases). Your support makes our content possible! ❤️ Follow us on: ► Twitter → http://gobc.tv/twtr ► Instagram → https://gobc.tv/ig ► Facebook → http://gobc.tv/fb ► LinkedIn → https://gobc.tv/linkedin ► Reddit → https://gobc.tv/reddit ► Medium → https://gobc.tv/medium ⬇️Exclusive Sponsor Offers (Only For BC Fans) ⬇️ ✪ Sign-up for Acorns! 👉 https://gobc.tv/acorns ✪ Skillshare (get 2 months free) 👉http://gobc.tv/skillshare ✪ Try DollarShaveClub (just $5!) 👉http://dollarshaveclub.com/bc ✪ Try Blinkist free for 7 days! 👉https://gobc.tv/readblinkist

How One Bad Oil Bet Sparked A Global Trading Disaster

By now we are all keenly aware of the near-devastating impact that the novel coronavirus has had on oil markets and the fossil fuel industry around the world. (If this is news to you, what rock do you live under and is there room for one more?) But while a lot of the narrative here in the West has been about the historic oil price crash in what some are now referring to as Black April, the oil trading catastrophe actually started much earlier and can largely be traced back to the bad bet of just one man, Singapore’s commodities tycoon Lim Oon Kuin. 

The story of the oil market instability that ripped through Asia starting in China is not so much one of struggling oil companies, but a story of banking – that unsexy, behind-the-scenes sector that all too often gets none of the headlines and all of the control. It started way back in January, when most of us were just starting to gain some awareness of a strange and scary illness devastating the Chinese city of Wuhan.

Lim Oon Kuin, sitting in his office 2,000 miles away in SIngapore, watched as this news unfolded and made a decision. He decided that China would gain control of this epidemic before it turned into a pandemic and began stockpiling fuel, quietly adding to his already vast reserves. It should come as no surprise that that bet didn’t work out. 

As the coronavirus spread around the world and tanked global crude demand, as well as oil prices, a chain reaction of defaulted loans, was set off in Singapore that is still reverberating in global markets today.

“Banks tried to recover loans from Lim’s company, Hin Leong Trading Pte, triggering one of the biggest scandals in the oil industry this century,” Bloomberg reported about the bad deal that has left a permanent mark on oil trading.

“Lim’s empire collapsed, owing $3.5 billion to 23 banks, and the fallout from the debacle is still reverberating into 2021, shaking out large tracts of the vast and often opaque $4 trillion global oil-trading industry.”

While this may sound like an outright, unmitigated disaster, as with most financial meltdowns, there are winners as well as losers here.

The losers, as always, are the little guys:

“hundreds of small trading firms, many of them employing only a handful of people, who will find it expensive, if not impossible, to meet the increased demands for information from banks that have become wary of lending them money.”

This is to say that the big guys like Trafigura Group and Vitol SA will be gaining business lost by their small competitors, shoring up their oligopoly on trading. They not only benefit from increased confidence from finance companies who have become increasingly risk averse in this environment, they also have the capital to adapt to increased operational costs.

And, as usual, less developed countries will bear the brunt of the economic fallout from this sea change. As banks become more risk averse, re-prioritize their business models, and scale down, it’s going to impact small companies in small economies the most just while they are struggling with all of the other economic hardships related to this pandemic. In this case, the big banks truly were too big to fail. The same can’t be said for the little guys.

This is true, of course, for many market sectors, not just commodities trading. Across the world we’re seeing a sweeping consolidation as big companies are able to weather the financial storm of the COVID-19 pandemic and the little ones are folding. Look no further than the main street of your own town: as mom and pop restaurants struggle to make a sale, lines are down the block at the McDonald’s drive thru. As local shops shut down, Amazon becomes ever more of the globalized goliath it already was. 

More than anything, however, the story of Lim Oon Kuin and his bad oil bet is an object lesson in the butterfly effect and outsized might of the all-too opaque trading sector. His will never be a household name, but the impact of his oil gamble will continue to be felt around the world for years to come.

By: Tyler Durden

More Contents:

How to Simplify the Work of Your Planning Team http://www.eventplanner.net – Today[…] To make sure you’re not one of them, here’s a quick list of tips on how to simplify the event logistics and optimize your time […] planned more than one event, you can easily tell how similar they are in terms of logistics and marketing […]0[OC]

Most Popular Desktop and Laptop Operating System 2003 – 2020 : dataisbeautiful http://www.reddit.com – TodayI work in a lab and we were using windows 98 to run all of our old instruments whose software hadn’t be updated in decades […] assumed we needed automatic upgrades on everything and surprised us by locking us out of all our software. Edit: the computers weren’t online. We literally only used them to run the software and write the data down […]7

Josh Goldenberg, 7, starts Joshua Project to help the blind shop in stores http://www.vcstar.com – Today[…] In the meantime, Whole Foods Market in Thousand Oaks adopted the idea. Ashley Eaton, the regional marketing officer for Whole Foods, explained that the store not only agreed to having Josh place Braille labels on his favorit […] Titled the “Joshua Project” with a photo of the young change maker, the markers list categories, such as baking, pastas, drinks, and are placed toward the front of the store […]0

UCC pushes for stolen communication device free Uganda | Telecoms News in Uganda http://www.biztechafrica.com – Today[…] rank among the most stolen items in Uganda because they are some of the high-value items on the market […] “Reporting your stolen mobile phone not only protects your mobile money but also stops someone using your phone to commit a crime and incriminating you,” reads th […]1

Essentials | Robotics Article page essentials.news – TodayEssentials publishes hand-picked high quality links carefully selected by top trusted experts in their industry. Thanks to it’s social media filtering AI it helps focus on the news, and the people that matter. Find all the available topics here0

Futures Trading Consulation | Cannon Trading http://www.cannontrading.com – Today[…] Consultation The internet can be a great resource for getting started in the futures trading market, but nothing can replace professional trading consultation. Information online quickly becomes outdated […] that certain fills you would get on a “demo” account might not reflect the same result on a live market action. Demo accounts use hypothetical money and don’t have the emotional impacts of real money […]0

Essentials | Robotics Article page essentials.news – TodayEssentials publishes hand-picked high quality links carefully selected by top trusted experts in their industry. Thanks to it’s social media filtering AI it helps focus on the news, and the people that matter. Find all the available topics here0

States Cardiovascular Interventional Devices Market Supply and Demand Trends, Success Pointers, Macro and Micro Factors Analysis And Key Players- Sinomed, Gore industrytoday.co.uk – Today[…] Follow us on Twitter @IndustryToday States Cardiovascular Interventional Devices Market Overview: Introduction The report named global  market recently published by Decisive Markets Insights covers the entire market scenario from different perspectives […] Connect with us via the social networks Twitter, Facebook, LinkedIn, Google+ and PinterestN/A

Essentials | Robotics Article page essentials.news – TodayEssentials publishes hand-picked high quality links carefully selected by top trusted experts in their industry. Thanks to it’s social media filtering AI it helps focus on the news, and the people that matter. Find all the available topics here0

<b>Blockchain</b> Technology Market Emerging Technology Growth and Future Business Opportunities … http://www.redhotblock.com – TodayBlockchain technology offers secure and faster payment services with the help of cryptography technology which keeps the data encoded until it will& …

A Jobs to be Done Framework for Startups — JTBD Templates & Examples for Building Products Customers Want | First Round Review firstround.com – Today[…] Anyone can build products. Not everyone can build products that solve a real problem and land product-market fit. More specifically, here are three common problems I see both early- and late-stage product teams running into that indicate a framework might be useful: 1 […]22

In numbers: What is the environmental impact of Christmas? http://www.edie.net – Today[…] groups and may not have had to deal with the excesses of Christmas parties and shopping centre runs,  several studies in recent weeks have suggested that the ghost of Christmas past continues t […] And, with more of us shopping online, there are logistics emissions to deal with too […] Links for the studies cited in the above graphics are as follows:  Tombola  Sendcloud Mattress Online  Carbon Trust  edie Staff1

Pediatric Medical Device Market Supply and Demand Trends, Success Pointers, Macro and Micro Factors Analysis and Key Players – Boston Scientific Pega Medical Zeal Medical industrytoday.co.uk – Today[…] opinion on current market status along with historical evidence, the study discusses all important market aspects. This market report is a systematic study of growth, investment opportunities, market statistics, increasing analysis of competition, key players, business facts, key figures, sales, costs, revenues, gross margins, market shares, business strategies, an […] Connect with us via the social networks Twitter, Facebook, LinkedIn, Google+ and PinterestN/A

Tysabri Drugs Market Supply and Demand Trends, Success Pointers, Macro and Micro Factors Analysis and Key Players – Biogen industrytoday.co.uk – Today[…] Follow us on Twitter @IndustryToday Tysabri Drugs Market Summary Global Tysabri Drugs Market would reach a significant market size by 2027 growing at a CAGR of  from 2020 to 2027. The market has been segmented into different market segments and is expected to reach to a substantial size by […] Connect with us via the social networks Twitter, Facebook, LinkedIn, Google+ and Pinterest1

How perceived autonomy support and controlling coach behaviors are related to well- and ill-being in elite soccer players: A within-person changes and between-person differences analysis – ScienceDirect http://www.sciencedirect.com – TodayPsychology of Sport and Exercise Volume 28, January 2017, Pages 68-77 How perceived autonomy support an […] Pages 68-77 How perceived autonomy support and controlling coach behaviors are related to well- and ill-being in elite soccer players: A within-person changes and between-person differences analysi […] • Well- and ill-being are mostly associated with autonomy and competence […] • Coach relatedness and peer relatedness are not related in the same way to well- and ill-being […]0

Kayunga imam voted in Fool of the Year awards http://www.monitor.co.ug – Today[…] How could you?” The 2020 award was won by Mo Mutumba, who nearly scooped all the three votes by the imminent UFA directors Odongo, Jacobs and Seaman […] The votes from the trio accounted for 60 per cent, the public vote via social media accounting for rest […] how he ran away with the 2020 award after his ‘wife’ Richard Tumushabe also voted for him via Facebook […]1

Online Education Success Shares Effective Seo Strategies For Small Businesses | AutoTraffic autotraffix.com – TodaySEO or search engine optimization is a whole science that has been created to fine-tune websites into making them more visible to search algorithms. The visibility of the website is critical for a …N/A

Spanish Journal of Marketing – ESIC | Emerald Publishing http://www.emeraldgrouppublishing.com – TodayJournal description Spanish Journal of Marketing – ESIC is an international peer-reviewed journal publishing research in the fields of marketing. The journal is published open access in association with AEMARK (Spanish Association of Academic and Professional Marketing) and ESIC Business & Marketing School.N/A

Agricultural Value Chain Field Officer – Job Post | VacancyMail Jobs – Zimbabwe Jobs and Vacancies Portal – Jobs in Zimbabwe, Zimbabwe Jobs, NGO Jobs in Zimbabwe, Graduate Trainee Jobs, SundayMail Jobs, Zimbabwe Vacancies, Latest Jobs in Zimbabwe, Apprenticeship Jobs, College Intakes, Scholarships in Zimbabwe, scholarships of Zimbabweans, Apply for Jobs in Zimbabwe, Employment Agencies Zimbabwe, iharare Jobs, Kubatana Jobs, Interview Tips, Zimbabwe Jobs, Classifieds Zimbabwe, CV Writing Zimbabwe, CV templates, Recruitment Zimbabwe Jobs, Industrial Attachment Jobs, Attachment Zimbabwe, Full time Jobs, Part Time Jobs, Volunteering Jobs, Graduate Trainee Vacancies Zimbabwe, Internships Zimbabwe, Accounting Jobs Zimbabwe, Mining Jobs, Engineering Jobs Zimbabwe, Marketing Jobs Zimbabwe, Sales Jobs Zimbabwe, Teaching Jobs Zimbabwe, Nursing Vacancies Zimbabwe, Government Jobs in Zimbabwe, Zimbabwe Jobs, Diaspora Jobs For Zimbabweans, Vacancymail.co.zw, Recruitment Matters Zimbabwe, Careers Zimbabwe, ihararejobs.com, Ngo Jobs, Classifieds, Head Hunters Zimbabwe, Cv People Jobs Zimbabwe Latest Jobs And Vacancies Portal vacancymail.co.zw – Today[…] About TechnoServe TechnoServe works with enterprising people in the developing world to build competitive farms, businesses and industries. We are a non-profit organization that develops business solutions to poverty by linking people to information, capital and markets […] About TechnoServe TechnoServe works with enterprising people in the developing world to build competitive farms, businesses and industries. We … Posted by TechnoServe View Full Ad  Expiry Date 07 Jan 2021 Salary: Negotiable  Posted on 30 Dec 2020 A Local Company Is Looking For A […]642

You Cant Predict Your Seo Clients Future But You Can Estimate It! | AutoTraffic autotraffix.com – TodayForecasting is not about trying to predict the future … your SEO tool, you can spot a set of top keywords that are high in value and low in difficulty for your client. You’ll be able to …N/A

New York luxury real estate could be a bargain in 2021 – News from southeastern Connecticut http://www.theday.com – Today[…] BizBuzz newsletter Email* Submit Judging by the last quarter of 2020, New York’s luxury real estate market should enter 2021 with confidence […] But the city’s luxury residential market has enough momentum to make experts feel comfortable making some conditional predictions […] 2% for the same period, and days on the market are down by nearly half […]1

Lost Macaw Parrot / Bird Busby, New South Wales, NSW, Australia – L69073 http://www.parrotalert.com – TodayAs we provide a free service, we need help to meet our service running costs for the next 12 months. Please help us help you by donating any spare change: Donation Progress1

ICP Support – 30th Anniversary – Media article No. 2 http://www.icpsupport.org – TodayICP in the media: Article No […] With no internet or social media 30 years ago, it was a case of ringing newspapers and trying to get them interested in what you had […]7

Voice of Customer Manager Wanted – RetailJobsDubai.com retailjobsdubai.com – Today[…] related initiatives Champion VoC measurement to drive impact and customer- centric decision making Own ROX measurement and be the CX data storyteller in the group, able to build and communicate “the money story” behind CX Analyze CX initiatives implementation and support test & learn through dat […] different sources Create and update CX reports and dashboards and promote the adoption within the business Build and run end to end ETL process for CX measurements Keep your knowledge up to date via trainings and on th […]N/A

Essentials | Threats and Attacks Article page essentials.news – TodayEssentials publishes hand-picked high quality links carefully selected by top trusted experts in their industry. Thanks to it’s social media filtering AI it helps focus on the news, and the people that matter. Find all the available topics here0

Free Internet Marketing Tutorial – Online Marketing For Your Local Business Made Simple http://www.udemy.com – TodayMarketing Social Media Marketing Internet Marketing Online Marketing For Your Local Business Made Simple Specific, hands-on techniques from a digital marketing pro so you can success using social media, SEO, and ads […] special By the end of this course, you’ll have your business setup with a website and automated on social media By the end of this course, you’ll be able to effectively run a Pay-Per-Click (PPC) advertising campaign By the end of this course, your web presence will be search engine optimized (SEO) so people search for your product/service will be able to find you4

Big Business Benefits Of Using Visual Content articles.proformalbp.com – Today[…] content on our website to enhance the visual content of your social media marketing or digital advertising. Social Selling Entrepreneur is looking for experts in the field of digital marketing, SEO, social selling, email marketing, and traditiona… Social Selling Sales Suggestion: Don’t forget about Pinterest or Instagram when it comes to your social media marketing strategy […]0

Essentials | Robotics Article page essentials.news – TodayEssentials publishes hand-picked high quality links carefully selected by top trusted experts in their industry. Thanks to it’s social media filtering AI it helps focus on the news, and the people that matter. Find all the available topics here0

Pharmaceuticals for Womens Health Market Supply and Demand Trends, Success Pointers, Macro and Micro Factors Analysis and key Players -Bayer , AbbVie industrytoday.co.uk – Today[…] tracking the market for a few years and has worked with leading industry players to provide deeper market insights. To make reliable forecasts about the market, it has conducted vigorous research and implied robust methodology. Pharmaceuticals for Womens Health Breakdown Data by Type Granules Pills Powder Tincture Tablets Capsule Other Pharmaceuticals fo […] Connect with us via the social networks Twitter, Facebook, LinkedIn, Google+ and PinterestN/A

BambooHR ooni.bamboohr.com – Today[…] someone with a minimum of 3-5 years of practical experience, who has developed products onto the market […] design  A broad range of electrical, electronics and communications experience including embedded software development and programming into consumer products Battery and AC/DC power system experience  […] into consumer products Battery and AC/DC power system experience  A solid understanding of software development including CAD design  Educated to degree level in Electronics Engineering (MEng or BEng […]0

HOT JOBS & COOL JOBS: PHARMACY TECHNICIAN I OR II MEDICATION HISTORY TECHNICIAN LINCOLN NE USA http://www.e-physician.info – Today[…] Apply Now>> 27 Correctional Medicine Health Services Administrator – RN Required Needed in Lincoln, NE Lincoln, NE, USA Monitor subcontracte […] Apply Now>> 29 Emergency Medicine Physician Assistant or Nurse Practitioner Lincoln, NE, USA For more than 40 years, our history an […] Lincoln, NE, USA For more than 40 years, our history and national footprint in emergency medicine allows us to  […]0

Fatal Case of Chronic Jamestown Canyon Virus Encephalitis Diagnosed by Metagenomic Sequencing in Patient Receiving Rituximab – Volume 27, Number 1—January 2021 – Emerging Infectious Diseases journal – CDC wwwnc.cdc.gov – Today[…] lymphoma in remission, receiving maintenance rituximab since 2014, had fatigue, arthralgias, and weight loss in summer 2017 […] Department of Health and Human Services, the Public Health Service, the Centers for Disease Control and Prevention, or the authors’ affiliated institutions […]1

First Ride: KTM Duke 890 R http://www.devittinsurance.com – Today[…] Success on tarmac has since followed, with more and more KTM road models entering the market along with sporting triumphs culminating in Moto3 world championship wins in 2012, 2013 and 2016 […] Some clever marketing there from the Austrians […] Duke 890 R wheelies rather nicely in Track mode with the Sport throttle response… If you’re in the market for a seriously rapid commuter, occasional tourer, a weekend toy and a track bike, then you coul […]N/A

Application of Metagenomic Next Generation Sequencing to Detect and Identify Pathogens (Round 22) | Global Grand Challenges gcgh.grandchallenges.org – Today[…] specialized training in biosample preparation and sequencing to technical staff from awardee global health centers. Trainees will learn to use the open-source, open-access IDseq software developed by CZ-Biohub for the global health community to upload and analyze patient sequencing data […] A list of compatible sequencers appropriate for global health use is listed here […]N/A

First Ride & Review: 2020 Suzuki Katana | Devitt http://www.devittinsurance.com – Today[…] classic twins and the Royal Enfield 650 twins are selling like disposable facemasks, and the market has loved a retro design for a good few years now […] Pull onto a good, quiet piece of twisty road, on a sunny morning, with the right China’s New Year’s Eve flex. America’s State of Fear. Investing in 2021. 

.

Half as Interesting

Sign up for an annual CuriosityStream subscription and also get a free Nebula subscription (the new streaming platform built by creators) here: http://CuriosityStream.com/hai Get a Half as Interesting t-shirt: https://standard.tv/collections/half-… Suggest a video and get a free t-shirt if we use it: http://halfasinteresting.com/suggest Follow Sam from Half as Interesting on Instagram: http://Instagram.com/Sam.From.Wendover Follow Half as Interesting on Twitter: http://twitter.com/halfinteresting Discuss this video on Reddit: http://www.Reddit.com/r/halfasinteres… Check out my other channel: http://youtube.com/wendoverproductions

Chinese E-Commerce Giants Report Booming Singles Day Sales

A big screen shows the online sales for e-commerce giant Alibaba surpassed RMB 100 billion or US14 billion at 01:03:59 after the Nov. 11 Tmall Shopping Festival started midnight in Shanghai, China Monday, Nov. 11, 2019. (Chinatopix Via AP)

(BEIJING) — Chinese e-commerce giants Alibaba and JD.com reported a total of more than $50 billion in sales on Monday in the first half of Singles Day, an annual marketing event that is the world’s busiest online shopping day.

Singles Day began as a joke holiday created by university students in the 1990s as an alternative to Valentine’s Day for people without romantic partners. It falls on Nov. 11 because the date is written with four singles — “11 11.”

Alibaba, the world’s biggest e-commerce brand by total sales volume, adopted the day as a sales tool a decade ago. Rivals including JD.com and Suning joined in, offering discounts on goods from smartphones to travel packages.

E-commerce has grown rapidly in China due to a lack of traditional retailing networks and government efforts to promote internet use. Alibaba, JD.com, Baidu and other internet giants have expanded into consumer finance, entertainment and offline retailing.

On Monday, online retailers offered discounts on goods from craft beer to TV sets to health care packages.

Alibaba said sales by merchants on its platforms totaled 188.8 billion yuan ($27 billion) between midnight and noon. JD.com, the biggest Chinese online direct retailer, said sales reached 165.8 billion yuan ($23.8 billion) by 9 a.m.

Electronics retailer Suning said sales passed 1 billion yuan ($160 million) in the first minute after midnight. Dangdang, an online book retailer, said it sold 6.8 million copies in the first hour.

Alibaba kicked off the event with a concert Sunday night by Taylor Swift at a Shanghai stadium.

Chinese online spending is growing faster than retail overall but is weakening as economic growth slows and consumers, jittery about Beijing’s tariff war with Washington and possible losses, put off big purchases.

Online sales of goods rose 16.8% over a year earlier in the first nine months of 2019 to 5.8 trillion yuan ($825 billion), according to government data. That accounted for 19.5% of total consumer spending. Growth was down from an annual average of about 30% in recent years.

By JOE McDONALD

Source: Chinese E-Commerce Giants Report Booming Singles Day Sales

993K subscribers
Nov.11 was Singles’ Day in China, the country’s busiest online shopping day of the year. More than 35 billion RMB was spent on two online platforms, Tmall.com and Taobao.com, which are owned by China’s e-commerce giant Alibaba. A total of 170 million transactions were made during the day.

Scary! Rising US-China Trade War Tensions Could Take 10% Off the S&P

Global markets continue to digest the impact of President Donald Trump’s Sunday evening tweetstorm. Meanwhile, analysts from some of the world’s biggest investment banks including UBS and Bank of America Merrill Lynch have detailed their forecasts for what a full-on trade war between the U.S. and China would look should the worst happen.

Among the many hair-raising projections is the prospect of the S&P 500 entering a correction by losing 10% of its value, which would almost certainly trigger a long-feared recession. That particular forecast was made by UBS analyst Keith Parker, according to CNBC. Parker specified that key European and American cyclical markets would bear the brunt of the declines.

S&P 500

| Source: Yahoo Finance

“FASTEN YOUR SEATBELT AND DON’T HOLD YOUR BREATH”

There is an old saying that when two elephants fight, it is the grass that suffers. In this case, both elephants will also sustain a significant amount of damage if Parker’s projections hold true. He predicts that a full-scale trade conflict between the world’s two biggest economies will see China shed anything from 1.2% to 1.5% of its GDP, which is equivalent to a drop of between $132 billion and $165 billion.

If China responds to Donald Trump’s threatened 25% tariff with a tariff increment of its own from 7% to 15% on approximately $60 billion worth of American imports, this could see the U.S. shed 0.1% of its GDP, or about $14 billion. In the ensuing scenario, Bank of America projects that China may hike tariffs on U.S.-made vehicles and reduce its soybean imports from the U.S. Meanwhile, Chinese imports of American soybeans have already fallen off a cliffsince 2017, dropping roughly 98% last year as China looks toward less antagonistic partners like Brazil.

According to a Bank of America report also cited by CNBC:

“Fasten your seatbelt and don’t hold your breath. The latest escalation of the trade war was completely unexpected, despite the strength of the economy and the markets. This is evident from the immediate negative reaction of U.S. equity futures to the news.”

As the two elephants knock heads, the amount they are erasing from each other’s economies is equivalent to the GDP of mid-sized nations. European and Asian economies will also feel some pain, according to UBS.

IS TRUMP BLUFFING?

According to the White House, the new 25% tariff regime that could potentially kick off this entire sequence of events will come into effect just after midnight on Friday. Expectedly, markets have been in virtual freefall since Monday, with the NASDAQ and S&P 500 both shedding close to 1% on Monday alone. The miserable market conditions continued through Tuesday, with little sign of respite as investors react with horror at the thought of a damaging 20th-century-style trade conflict between economic superpowers.

Dow

The Dow Jones Industrial Average continues to trend downward following Sunday evening’s shock announcement. | Source: Yahoo Finance

Not everyone believes that the panic is warranted, however. JPMorgan CEO Jamie Dimon, for example, believes that the shock announcement by Trump was nothing more than a way of cornering a formidable opponent and forcing them to negotiate. Speaking to CNN Money’s Poppy Harlow, Dimon stated that regardless of the market’s reaction, Trump will count it as a win because it has become the only successful way of getting the Chinese to the negotiating table on his terms.

Whether this is a considered masterstroke of strategy or simply a typical Trump action, it certainly appears to have done the trick. Chinese Vice Vice Premier Liu He will be part of a trade delegation to the U.S. later in the week, which at the very least is a sign that China is willing to give ground so as to avoid a damaging trade war.

Source: Scary! Rising US-China Trade War Tensions Could Take 10% Off the S&P

Rakuten Taps Chinese Blockchain Firm for $60 Billion Authenticity Market

In 2008, at least 54,000 Chinese babies suffered after ingesting formula that had been contaminated. Demand for safe products has grown year over year, every year, since then. Companies like blockchain-centric Techrock have capitalized on this market by finding unique solutions to the authenticity problem. Techrock uses the blockchain to track every step of a product’s lifecycle and rewards consumers for verifying it through their mobile phones.

Chinese Consumers Increasingly Willing to Pay a Premium for Authentic Imported Food

In China, it is reportedly difficult to get authentic products. Some researchers have found that more than 90% of the food sold in China is faked in one way or another.

For non-food products, this isn’t such a big deal; but there are some markets where it’s life and death – such as baby formula and other food products, which can have deadly side effects. According to Techrock, which spoke to CCN about their recent partnership with Rakuten, the situation has created a market for authentic goods as large as $60 billion per year.

Techrock uses blockchain technology in two aspects of its business. On the one hand, it offers a loyalty program for customers who use the service to purchase authentic products. On the other, it creates a permanent record of a product’s authenticity.

From Supply Chain to Reward Points, Blockchain’s Role

Every product in Techrock’s store has a digital representation on the blockchain. The company has developed a reputation for delivering high-quality, authentic goods, and it’s applying the same process to its Rakuten “zone.”

Their target market is less about authentic shoes or electronics and more about health supplements and other things which people prefer not to risk. The loyalty program helps them retain customers, and using the blockchain for it, the points have no expiration date. A side effect of Techrock’s Tael loyalty program is that it introduces many people to blockchain for the first time.

Techrock recently entered a partnership with Japanese retail giant Rakuten to get authentic Japanese goods to customers. Rakuten has long had an interest in blockchain companies, but it only touches the technology in a tertiary way here.

Rakuten is looking to expand its reach in China, where it is far from the leading retailer. By contrast, Alibaba is the boss in China – but Alibaba’s eBay-style product suffers a lot of knock-off problems that the rest of the Chinese market does.

Growing Year-Over-Year

Built on Hyperledger, Techrock’s labeling technology ensures that products are real. The customer can verify this with an app on their phone, and once they do so, they earn their reward points at the same time. The rewards can be used to purchase more goods in the store, which encourages customers to keep using Techrock.

Techrock’s partnership with Rakuten means that Chinese customers don’t have to worry about fakes, and they have streamlined access to authentic, safe products. Techrock Co-Founder Alexander Busarov told CCN:

“We already sell in over 220 or 230 cities where our consumers are located. It’s all sent by the local dealer companies. We think our business will grow as the demand grows.”

China is reportedly the largest market for both food and firms that verify the safety of food. Consumers have been driven online as they continually lose trust in local vendors. Regulations and other issues make it such that local companies, like Techrock, will ultimately supply the demand.

Techrock’s partnership with Rakuten is notable because they’re the third to secure such a partnership – JD.com being one of the first – and they are built entirely on blockchain.

Source: Rakuten Taps Chinese Blockchain Firm for $60 Billion Authenticity Market

%d bloggers like this: