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

U.S. Households’ Net Worth Hits Record $123.5 Trillion As Stocks Boom, But Debt Is Also Surging

While unemployment has remained stubbornly above pre-pandemic levels, record highs in the stock market have pushed the net worth of all households in the U.S. to a new high, despite the fast growth in household debt.

The net worth of households in the United States climbed to $123.5 trillion in the third quarter, up 8% from a year ago, the Federal Reserve said in a report Wednesday.

The Fed, which calculates net worths by subtracting overall debt held from the sum of assets like savings and equities, attributed the gains to the surging value of stocks, which jumped $2.8 trillion in the third quarter, as well as real estate, which increased in net value by $400 billion.

PROMOTEDJapan BRANDVOICE | Paid ProgramJapan Is Innovating Mobility As A Service And Creating A $61 Billion MarketTableau BRANDVOICE | Paid ProgramRevisiting Our 2020 Data Trends Predictions. How The Pandemic Changed Our Outlook For The YearSquare BRANDVOICE | Paid Program6 Tips for Omnichannel Marketing Success

Meanwhile, household debt, which includes mortgages, credit card debt and personal loans, jumped at an annual rate of 5.6% in the third quarter, reaching $16.4 trillion; that’s the fastest growth this decade, beating out a 3.9% increase in 2017.

Business debt fell 0.9% to $17.5 trillion in the third quarter, while federal government debt jumped 9.1% to $26 trillion.

CRUCIAL QUOTE 

“We’ve seen home prices rise, market prices for tradable instruments rise and savings increase… but those gains skew to upper income people,” KPMG Chief Economist Constance Hunter told the Wall Street Journal. “It’s a vicious cycle,” she added of the pandemic’s disparate impact on lower-income Americans. “Not only are lower-income households more impacted, they also are less likely to have the resources to draw upon to support their families.”

KEY BACKGROUND

The S&P 500 jumped 8% in the third quarter, while the tech-heavy Nasdaq Composite soared nearly 12%, and both have reached record highs in the fourth quarter–as has the Dow Jones Industrial Average. But far from everyone benefits from those gains. According to a Gallup poll in March and April, just 22% of Americans making less than $40,000 annually said they owned any stocks, compared to 84% of people making at least $100,000 per year.

TANGENT

There were 10.9 million unemployed people in the country last month, when the U.S. economy added a much lower-than-expected 245,000 jobs, according to data released by the Bureau of Labor Statistics last week. The number of unemployed people in the U.S. remains more than three times higher than it was before the pandemic, during which 22 million Americans have been forced into unemployment.

FURTHER READING

U.S. Household Net Worth Hits Record in Third Quarter (WSJ)

Unemployment Claims Spike Again As Covid-19 Spreads And Americans Wait For Federal Relief (Forbes)

10.9 Million Americans Are Still Unemployed—Rate Ticks Down To 6.7%, But Job Market Could Take Years To Recover (Forbes)Follow me on Twitter. Send me a secure tipJonathan Ponciano

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

.

.

Wall Street Journal

What’s News: American household net worth jumps $10 trillion to $80.7 trillion. Prosecutors charge four former leaders of defunct law firm Dewey & LeBeouf with fraud. Staples is closing 225 stores. Joanne Po reports. Photo: Getty Subscribe to the WSJ channel here: http://bit.ly/14Q81Xy Visit the WSJ channel for more video: https://www.youtube.com/wsjdigitalnet… More from the Wall Street Journal: Visit WSJ.com: http://online.wsj.com/home-page Follow WSJ on Facebok: http://www.facebook.com/wsjlive Follow WSJ on Google+: https://plus.google.com/+wsj/posts Follow WSJ on Twitter: https://twitter.com/WSJLive Follow WSJ on Instagram: http://instagram.com/wsj Follow WSJ on Pinterest: http://www.pinterest.com/wsj/ Follow WSJ on Tumblr: http://www.tumblr.com/tagged/wall-str… Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM

China’s Economy Continues Rebound With 4.9% Growth In Third Quarter

China’s GDP grew 4.9% in the third quarter compared to the same time last year, the country’s National Bureau of Statistics said Monday, as the economic superpower continues to rebound after the coronavirus pandemic.  

Key Facts

That growth was fueled by strong retail sales and industrial production, the government said. 

China’s exports rose 9.9% last month while imports soared 13.2%—two more strong signs of recovery. 

China’s is the only major economy that is expected to grow in 2020, according to the International Monetary Fund, which is forecasting 1.9% growth for the year. 

Crucial Quote 

Despite robust growth at home, the Chinese government also noted Monday that the global environment remains “complicated and severe” and that the country is under “great pressure” to prevent any further outbreaks of the virus. 

Key Background

China’s economy shrank 6.8% in the first quarter—its worst contraction in 40 years—as the government shut down nearly all activity in parts of the country to prevent the spread of the coronavirus. In the second quarter, growth bounced back to 3.2% after factories reopened and the government poured billions of dollars in stimulus measures back into the economy. 

Tangent

Economists expect the United States to see growth in the third quarter, too, but that growth is likely to be limited in the fourth quarter if further stimulus measures from the federal government are delayed until 2021. 

Further Reading

Economy Shrank At Historic 33% Annual Rate In Second Quarter—But That’s Not The Whole Story (Forbes)

China’s Exports Surged 9.5% In August Despite Escalating Tensions With The United States (Forbes)

Europe Breaks Record For Weekly Coronavirus Cases As Countries Enforce New Lockdowns (Forbes) Follow me on Twitter. Send me a secure tip

Sarah Hansen

Sarah Hansen

I’m a breaking news reporter for Forbes focusing on economic policy and capital markets. I completed my master’s degree in business and economic reporting at New York University. Before becoming a journalist, I worked as a paralegal specializing in corporate compliance

.

WION -The World is One News, examines global issues with in-depth analysis. We provide much more than the news of the day. Our aim to empower people to explore their world. With our Global headquarters in New Delhi, we bring you news on the hour, by the hour. We deliver information that is not biased.

We are journalists who are neutral to the core and non-partisan when it comes to the politics of the world. People are tired of biased reportage and we stand for a globalised united world. So for us the World is truly One. Please keep discussions on this channel clean and respectful and refrain from using racist or sexist slurs as well as personal insults. Subscribe to our channel at https://goo.gl/JfY3NI Check out our website: http://www.wionews.com Connect with us on our social media handles: Facebook: https://www.facebook.com/WIONews Twitter: https://twitter.com/WIONews Follow us on Google News for latest updates Zee News:- https://bit.ly/2Ac5G60 Zee Bussiness:- https://bit.ly/36vI2xa DNA India:- https://bit.ly/2ZDuLRY WION: https://bit.ly/3gnDb5J Zee News Apps : https://bit.ly/ZeeNewsApps

.

.

China’s GDP Contraction A Window To Its Post-Coronavirus Future

Media headlines out did each other in broadcasting China’s 6.8% contraction in GDP in the first quarter this year. It was indeed breaking news in that it was the first ever contraction since China started reporting quarterly GDP data in 1992. However, beyond the headlines, there is surprisingly little that is newsworthy. It is not telling us anything we didn’t know already.

A deep contraction was widely expected because of the massive quarantine and lockdown implemented to contain the COVID-19 outbreak, which practically shut down the economy. For example, Wuhan, the epicenter of the outbreak, ended its lockdown only on April 18 after 76 days. Not surprisingly markets largely shrugged off the news. The S&P 500 rose 1.6% on April 17, after Nasdaq flipped into positive territory for the year the day before. Wall Street was not alone, Asian and European stocks also finished the week higher.

The slew of Beijing’s counter-cyclical policies to help the economy recover from COVID-19 has also been well and fully anticipated. Export rebate rates were raised on over 1,000 products to help exporters facing slumping demands. New infrastructure projects, many are planned and budgeted but now moved forward, have started in 25 provinces which will help prop up demand for industrial production and employment.

The People’s Bank of China, the central bank, has been adding liquidity to the financial system by cutting interest rates and reserve requirement ratio, as well as directing more lending to small and medium size businesses through loan guarantees. According to its data, bank loans grew by 11.5% year-on-year in March, the fastest growth rate since August 2018.

This is an impressive feat. China’s central bank is succeeding in raising bank credit growth in the midst of a massive economic contraction, something that is extremely difficult to do. None of these will bring about a V-shaped rebound, but they will pave the way for a recovery that will gather strength through the course of the second half of the year even if the global economy is still in recession.

The real news in China’s GDP contraction, which had come and gone hardly being noticed, is a policy document released without fanfare on March 30 outlining a set of wide-ranging structural reforms to be implemented in the aftermath of COVID-19. Ostensibly these structural reforms are needed, above and beyond the cyclical measures described, to revitalize an economy ravaged by COVID-19.

Upon closer scrutiny, however, it becomes clear that these are some of the deepest structural reforms that had been proposed and debated for the last two decades, and were strenuously resisted and successfully blocked or deferred by local governments. It appears that Beijing is taking advantage of COVID-19 and the unprecedented GDP contraction to ram through tough reforms that would otherwise be harder to do. What are these reforms?

These are deep and sweeping structural reforms regarding land use, the labor market, interest and exchange rates and the financial markets. They are what really matters if the Chinese economy is to become more market driven and efficient. On land use, current restrictions on how rural land can be sold and used for commercial purposes will be lifted, and the system of rural land acquisition and sales will be made market driven. Behind these innocuous sounding policy-speak is the intention of slaying of one of communism’s sacred cows, the public ownership of land. Sweeping indeed.

The removal of the household registration system, the hukou, is the centerpiece for reforming the labor market. This will be implemented nation-wide with the exceptions of a few mega-cities like Beijing and Shanghai. For the tens of millions of migrant workers, they will be able to become fully-fledged urban residents in towns and cities where they are gainfully employed.

They will be able to live with their families and have full access to urban health care, education and social welfare services. Apart from lifting a highly discriminatory barrier that divides the Chinese population into two unequal tiers, at one stroke this reform will also increase urban consumption demand massively, especially in housing, while further enhancing the growth and dynamism of China’s burgeoning service sector.

The integration of benchmark lending and deposit rates with market rates will be the central plank of price reform in banking and finance, which will align them to become more market driven. The RMB exchange rate will be made more flexible. Civil servant salaries will be made comparable with the private sector. The institutional infrastructure for listing, trading and delisting in the stock markets will be streamlined with stronger regulatory oversight, and the development of the bond market will be fast-tracked to offer an expanded range of products in size and varieties. And, finally, the opening up of the financial sector to full foreign participation will be accelerated.

Successfully implementing anyone of these structural reforms would be an achievement. Getting all of them done would be a game changer. This is clearly what Beijing intends to do by seizing the opportunity created by COVID-19 and the unprecedented GDP contraction. For those who welcome engagement with China, be prepared for a more dynamic and innovative Chinese economy. For those who fear the rise of China, get ready to face a more determined China that marches to its own tune.

Finally, the GDP contraction may well be the catalyst that Beijing needs to dispense with the GDP growth target altogether. In the past decades, it has led provincial governments to boost production regardless of real demand in order to meet such targets, burdening China’s economic structure with wasteful over-capacity as a result. Allowing GDP growth to fluctuate with the rhythm of the business cycle would be an even greater achievement. That would be truly newsworthy.

I am the Chief Economics Commentator at Forbes Asia, and a Visiting Scholar at the Lee Kuan Yew School of Public Policy, National University of Singapore. I was the Global Chief Economist and Chair of the Academic Advisory Council at Mastercard from 2009 to 2018. I was the HSBC Visiting Professor of International Business at the University of British Columbia, Canada from 2010 to 2014; Adjunct Professor at the School of Management, Fudan University, Shanghai, China from 2006 to 2011, and Visiting Professor at the Graduate School of Business, University of Chicago, Singapore from 2003 to 2004. I am a Canadian who has spent 25 years working in Europe, sub-Sahara Africa, the Middle East and North Africa, and Asia-Pacific before returning to Canada in 2011. I studied at Trent University, and pursued post-graduate studies at the University of British Columbia and Simon Fraser University in Canada, where I received my Ph.D. I live on Salt Spring Island, off the west coast of Canada, with my wife and cat; where I garden enthusiastically.

Source: China’s GDP Contraction A Window To Its Post-Coronavirus Future

Please follow my Instagram: http://instagram.com/arminhamidian67

China released it’s latest GDP data overnight into Friday, showing the first contraction of the economy since it began publishing the data in 1992. CNBC’s Eunice Yoon reports. China reported Friday that its first quarter GDP contracted by 6.8% in 2020 from a year ago as the world’s second largest economy took a huge hit from the coronavirus outbreak, data from the National Bureau of Statistics of China showed. The contraction in the first quarter is the first decline since at least 1992, when official quarterly GDP records started, according to Reuters. China’s government figures are frequently doubted by analysts. Analysts polled by Reuters had predicted China’s GDP would shrink by 6.5% in the January to March quarter, compared to a year ago. The forecasts from 57 analysts polled ranged from a 28.9% contraction to a 4% expansion. China’s economy grew 6% in the last quarter of 2019. Here are some of the key figures released Friday, on a year-over-year basis: Industrial production dropped 8.4% in the first quarter, and marked a 1.1% decline in March. Fixed-asset investment fell 16.1% in the first quarter. Retail sales fell 19% in the first quarter. Sales of consumer goods fell 15.8% in March, while online sales of physical goods rose 5.9%. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2JdMwO7 » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
%d bloggers like this: