Reuters quoted two sources saying that the US Department of Commerce will extend the time for Chinese technology giant Huawei to purchase US corporate products. It is expected to be extended for another 90 days. If the ban is strictly enforced, it will seriously affect Huawei’s supply chain. However, it may also strike against US customers that Huawei is serving and suppliers that supply Huawei. In view of this, the United States proposed a delay in implementation shortly after the ban was issued.
China has announced that it has no plans to forcefully end the protests in Hong Kong, but it will not be ruled out if necessary. China has said that if the Hong Kong executive government fails to bring peace, then China will intervene. Satellite imagery, which has been widely shared on social networks, indicates an increase in China’s military presence in the border town of Shenzhen. The pictures show dozens of Chinese police and military vehicles in the grounds of a sports stadium.
Hong Kong is presently experiencing a political crisis. Large scale use of law enforcement and military is being used to disperse the protesters. However, the system itself is failing and it will lead to additional protests. Historically, an achievement of the Freudo-Marxists was the quantum leap through the rationalistic outlook which had dominated in the Marxist tradition. Furthermore, the escalation of the crisis in Hong Kong is inevitable due to the bygone times and political reality of the Chinese territory.
A day after massive anti-government protests effectively shut down one of the busiest airports in the world, life in Hong Kong had still not returned to normal. Hundreds more flights were cancelled Tuesday at Hong Kong International Airport, which was still dealing with the effects of the sit-in. The local authorities defended both the use of plainclothes policemen and their tactics, which viral videos showed turning violent over the weekend and into Monday. The protests, which have gone on for more than two months, after an extradition bill to mainland China was pulled, show no sign of slowing down. Meanwhile, Beijing ratcheted up the rhetoric, but remained at the gates. Waiting.
Hong Kong International Airport canceled all flights on Monday as the fourth day of protests at the airport’s main terminal continued. The Airport is one of the busiest in East Asia and the world. Thousands of protesters started rallying at the airport’s entrance and exit lounges four days ago trying to make their protest heard around the world.
“Foreign forces intervene” has become the new direction of China’s official explanation for the endless struggle in Hong Kong. On August 8th, Hong Kong media reported that the “United States Consulate General in Hong Kong” political group director Julie Eadeh and “Hong Kong Zhongzhi” core personnel Huang Zhifeng and Luo Guancong and other people met in Hong Kong and discussed Hong Kong affairs.
Hong Kongers from all walks of life, and seven districts of the city, took to the streets Monday as part of a general strike, the largest such demonstration since 1967. Teachers and students, aviation workers, finance employees, and civil servants took part in the protests, aimed at both Hong Kong’s pro-Beijing government and mainland China itself. What initially began as a row over a now-suspended extradition bill has morphed in to a movement against Chinese encroachment, Hong Kong’s non-democratic system, and its unaccountable police force. Now in their ninth week, and showing no signs of slowing down, some fear Beijing may be compelled to act.
Even with Hong Kong’s “Fugitive Offenders Ordinance” amended, the dispute-related demonstrations continued. The group opposed to the amendments held a parade in Kowloon on Saturday. Another group was on the Hong Kong Island across the sea with the title “Hope for Tomorrow,” holding a rally in support of police enforcement. The conference said that about 90,000 people attended the meeting. The police said that the number of people gathered at the peak was about 26,000.
The Chinese government announced it will suspend a program that allowed solo travelers to go into Taiwan that could cost the self-ruled island up to $1 billion by the month of January.
In the latest escalation between China and Taiwan, Beijing issued the travel ban to solo tourists heading into the island earlier today. China’s Ministry of Culture and Tourism issued the ban that takes effect on August 1st and effectively bans all individual leisure and travel from mainland China to Taiwan.
Kim Jong-un doubled down and conducted his second missile launch in less than a week. The first missile was detected at 5.06, followed by another at 5.27. The two were shot from a transporter-erector-launcher (TEL) vehicle at a point near Wonsan port, on the east coast of the peninsula, the same area where last week’s missiles were fired. The projectiles were similar to those of the last week, according to a General Staff statement, which added that “the successive launches by North Korea do not lead to reduce tensions and we urge you to stop them.”
In recent days, the Chinese media has been glorifying Russia and its various national and international accomplishments. Since all media is government run and there is a Great Firewall of China, the only news Chinese citizens can get is through the state-run and approved outlets.
Chinese official media announced on Friday that FedEx’s previous explanation of Huawei’s express shipments to the United States as an “operational failure” has been rejected. According to the report, FedEx was “involved in keeping more than 100 Huawei company parcels” and other illegal activity. This is leading to speculation that the US company may end up on China’s list of “unreliable entities” in the near future.
If a manufacturing firm has a goal to sell products in both the US and China, locating the production in China gave them an unfair economic advantage. China imposes very heavy tariffs and regulations on almost all imported goods, making access to China’s market far more costly for the production of manufactured goods outside of the country.
Former Chinese Prime Minister Li Peng, nicknamed “the butcher of Beijing” for his responsibility in the repression of Tiananmen Square demonstrations in 1989, died at 90, Xinhua state news agency announced today. “He died yesterday as a result of a disease whose treatment proved ineffective,” the Xinhua agency reported. The former prime minister had already battled bladder cancer.
Monday was another bad day for Chinese tech giant Huawei. The Washington Post dropped a major bombshell on the company regarding alleged (highly-illegal) dealings in North Korea, and Czech Radio added another involving activities in their own country. The news adds fresh and serious doubts about the company’s potential western footprint, and bolster’s Washington’s case that the giant is a threat to American national security and users’ privacy. President Trump met tech CEOs in the White House Monday, partially to discuss what to do about it.
Chinese regulators have just approved a new tech-heavy board of 25 companies for the STAR Market. This new STAR Market is modeled on the U.S.-based NASDAQ composite reflecting the ruling Communist Party’s desire to keep private capital within its own country. It allows mid-sized Chinese investors to invest in Chinese tech companies that until recently would have been listed on Wall Street, London Stock Exchange or Hong Kong Stock Exchange.
Thomas Cook Group, the UK’s largest travel agency operator, is in financial trouble and is negotiating with banks and its largest shareholder, China Fosun International. The agreement to be finalized will determine whether Fosun International will acquire Thomas Cook’s tourism business.
Nike has just cancelled a Betsy Ross shoe because Colin Kaepernick (a Nike endorser) claimed he and others found the specific flag design offensive, saying the flag from that period is associated with slavery in America. Is Nike so focused on social justice issues, they are not completing their duties to their shareholders.
GPS systems are probably the most critical systems in the world for modern logistics, industrial, and military operations. The on-demand world requires GPS to deliver up-to-date location and tracking services. They also offer the ability for smart weapons to hit their designated targets while limiting collateral damage.
It’s said that nothing ever really gets done at the G20, which is currently meeting in Osaka, Japan. Nineteen member countries and the European Union agreed to a new deal to tackle climate change. Guess who was the lone holdout. President Trump was harshly criticized, at home and abroad, for praising Saudi Crown Prince Mohammed Bin Salman, who ordered the killing of Washington Post columnist (who had legal residency in the U.S.) Jamal Khashoggi. There was one cautiously positive development to emerge from the summit, however. Trump and Chinese counterpart, Xi Jinping, agreed to restart talks and temporarily de-escalate the trade war.
The alarming melting of the polar ice caps are rightfully alarming the global population. However, the world’s largest economies and militaries see a strategic value in seizing the Earth’s transforming terra firma.
It is currently predicted that by 2030 Arctic waters will have a record minimal amount of ice. The loss of ice creates a unique opportunity for those looking to seize upon tragedy. Believed to have 30 percent of the world’s oil and natural gas, the Arctic circle (and surrounding emerging waters) will be a place of global contention in the coming decade.
The National Radio and Television Administration (NRTA) is in charge of controlling everything related to the press, publications, radios, movies, and televisions in China. For example, all foreign movies that want to enter the Chinese market would need its approval first, during which scenes containing sex, violence, and Chinese politics are usually deleted– the reason why many foreign movies in China are a bit shorter than the international version. It exists to make sure that Chinese citizens are getting the information that the government deems appropriate.
According to the latest report by IMARC Group, titled “China Shrimp Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, the China shrimp market reached a volume of 1.8 Million Tons in 2017.
If oil demand is down so much due to the China trade war and tariffs, how come the more economically sensitive materials, such as copper, have not felt the same economic downward price effects?
Today China has asked it’s refineries to hold off on placing new orders for crude oil imports in anticipation of lower prices once and if demand stalls further. The Chinese buyers have cut off purchases of U.S. crude oil as the trade dispute between Beijing and Washington continues.
Founder Ren Zhengfei claimed Huawei’s revenue will be $30 billion less than they had forecast over the next two years. His quote compared the largest Chinese telecom giant to a “badly damaged plane” as a result of US government sanctions, bans and actions against them. For instance, just recently Facebook banned Huawei from preloading its apps.
Today following the world news can be seen in a world at unrest. In these countries especially is apparent World Unrest:
Khazakhstan – The world’s largest land locked country and the ninth largest in the world with an area of 2,724,900 square kilometers. It is a democratic secular republic with a diverse heritage. After the elections resulting in the overwhelming victory of interim president Toqaev began wave of protests against the lack of fairness in the elections.
Last Sunday an estimated 1.03 million people (230 thousands according to the police) participated in a mass protest in Hong Kong against a proposed law that would allow the extradition of suspects, either political or criminal, to mainland China for the first time. Protestors fear that the amendments would mark the end of the “one country two systems” era.
Hundreds of thousands, and perhaps up to one million people jammed the streets of Hong Kong on Sunday to protest amendments by the Legislative Council, which would allow the extradition of those accused of crimes to mainland China. Opponents believe the bill will allow the communist regime to target political opponents, whether living in or visiting Hong Kong, and threaten the city’s longstanding autonomy. Beijing is said to want the bill “urgently,” and the LegCo pledged to press on regardless.
- Interest Rates: The 10-year Treasury is hitting around 2.08%, down from 3.25% just three months ago.
- Oil is down around $53 per barrel. Down from about $65 in April.
- Industrial Production has hit multi-year lows.
- Gold and the dollar are moving up.
These four indicators have many forecasting both a tougher time ahead and a rotation into safe havens. The central focus of concern is the trade wars with China and the new tariffs with Mexico.
With the China tariff up 25%, we’re constantly being told this will hurt the consumer and that it’s why inflation is rising (up 1.5% in April from 1.4% in March accounting to the Commerce Department). The Consumer Price Index increased 0.3% last month after moving up 0.2% in March. If the trade war with China trade is so bad where is the inflation, where are the price hikes?
Nike and other companies are saying the “consumer will get hurt” with the China and Mexican tariffs, but is this really true? Bear in mind that Nike is not neutral in this fight as it has large investments in China and as a global manufacturer has strong ties to both countries.
Tech giant Google suspended all business requiring the transfer of hardware, software, and technical services with Chinese firm Huawei, Reuters reported on Sunday. New Huawei smartphones will lose access to popular Google apps, like YouTube and Maps, as well as security updates. Those publicly available, via open source licensing, would not appear to be affected. The move comes days after the Trump administration blacklisted Huawei, prohibiting American firms from trading with the company without a license.
President Trump used an executive order Wednesday to declare a national emergency over threats to American technology. The move prohibits American companies from using telecom services solely owned, controlled, or directed by a foreign adversary. The order also “delegates authority to the Secretary of Commerce,” Wilbur Ross, “to prohibit transactions posing an unacceptable risk to the national security of the United States.” The move clears the way for a ban on Huawei, China’s controversial telecom giant.
More than 61 million voters will decide over 18,000 national and local offices, up for grabs in Monday’s midterm elections in the Philippines. The contests will serve as a referendum on the current president and his policies. President Rodrigo Duterte is widely expected to pass his first test. A victory could allow the popular populist to expand his control over the country and further tilt it toward China.
All 305 seats are up for grabs in the House of Representatives, increased from 297. Duterte’s PDP-Laban party holds 115 seats. His allies in the Coalition for Change add another 135. Duterte’s thumping majority isn’t under threat or likely to change. The House typically supports popular presidents, and at around 80% in the latest polls, Duterte certainly is.
Trump has been focusing on three major issues during the last few days: immigration, tariffs, and infrastructure. Of those issues, infrastructure is the one that seems at least a bit refreshing. The last time Trump really made infrastructure a major focus was during his 2016 campaign.
During that campaign Trump compared U.S. infrastructure to that of “a third world country.” His promise to rebuild and reinvest in the country’s infrastructure was something that excited and pleased many Americans.
It’s never good when North Korea is in the news. On Thursday, the Hermit Kingdom launched two short-range ballistic missiles in to the Sea of Japan. The pair were similar to one the DPRK test-fired on Friday. Later that day, American authorities seized a coal ship used by North Korea for sanction-busting.
The missile tests were the first by North Korea in more than 500 days. Yet, the self-imposed moratorium on long-range testing remains. The state media, whose prophesies of mass annihilation and lakes of fire normally rival that of any shortwave radio preacher, assured the world that nothing was amiss.
On Sunday, President Trump tweeted an escalation to his trade war with China, warning tariffs would more than double, from 10% to 25%. By Tuesday, stocks were sent tumbling, and companies scrambling. The Dow Jones Industrial Average dropped 472 points Tuesday, it’s worst day in four months. Grain futures hit their lowest mark in more than 40 years. Companies weren’t given much in the way of warning, with tariffs due to increase Friday. They’ll have to decide whether to eat the tariffs themselves or pass the costs on to consumers.
Trump’s escalation comes amid a five-month truce between the world’s two biggest economies, and as the U.S. and China appeared close to a deal. However, Administration officials say China has been backtracking from earlier commitments. In a Washington Post op-ed, former chief strategist Steve Bannon urged the president to “follow his instincts and not soften his stance against the greatest existential threat ever faced by the United States.” Trade advisor Peter Navarro, and others, see no deal as preferable to any deal, and some fear the president will cave, again.
Did you think Apple or Samsung? No it’s Huawei.
Is Huawei using its incredibly fast China growth and government backing to help launch and control the 5G standard? Many are concerned. Huawei smartphone units shipped increased from 39.3 million in Q1 of 2018 to 59.1 million in Q1 2019 according to IDC 2019.
“This doesn’t look like you. Please show me your real identity document.”
“There’s nothing more to say. I’ll go with you.”
This was the conversation that happened last Sunday (April 21) at Chongqing Jiangbei International Airport, before the police arrested Wu Xieyu, accused of murdering his own mother three years ago and on the run ever since. According to the police, at the time of being caught, Xieyu carried with him more than 30 fake ID cards that he bought online. He was allegedly at the airport sending off the manager at the night club where he worked. It remains unclear if he wanted to be arrested when he decided to enter a high-security airport.
- Year to date the Shanghai composite had skyrocketed more than 30 percent since its last close in 2018. The Shenzhen component has also seen massive gains of more than 40 percent in that same time period.
Four years ago, the Guinness World Record for the longest human-made phrase was set by the employees of Tiens Group in France. To celebrate its 20th anniversary, the CEO of the Chinese multinational company, Li Jinyuan, decided to invite all his 6,400 employees to France for a short trip. It evoked lots of discussions in China with people posting online expressing their envy.
Now four years later, Li Jinyuan has been missing for more than 100 days and the company is facing charges of commercial fraud, murdering, Multi-level Marketing (MLM) that is illegal in China, and more.
- EU: President Trump in an early morning tweet on Tuesday touted his administration’s tariffs on $11 billion of European Union products in the wake of a World Trade Organization (WTO) ruling.”The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products!” he said.
- China’s first official economic gauge for March signaled a stabilization, easing one of the biggest worries for the global outlook. The manufacturing purchasing managers index rose to 50.5 from 49.2 last month, the biggest increase since 2012 and exceeding all estimates by economists. Both new orders and new export orders – leading sub-gauges that signal future activities – rose to the highest levels in six months.
- Airlines grounding the Boeing 737 Max 8 planes continued to grow the day after one crashed in Ethiopia, killing all 157 people on board. The Ethiopian Airlines jet crashed shortly after it took off, drawing renewed scrutiny of the plane just four months after a similar crash of the same model that killed 189 people in Indonesia.
- Boeing stock fell more than 5 percent on Monday, a move that capped the Dow Jones Industrial Average. The stock’s sharp move drove the Dow down more than 150 points. Boeing has by far the biggest influence on the Dow given the index is price weighted. In other words, a higher share price will have a greater impact on the Dow.
With the lowering prices of devices such as sensors, several medium and small scale manufacturers and plant owners are shifting their focus towards the deployment of cyber-physical systems in order to convert them into smart factories. These type of cyber-physical systems not only help in eliminating errors that occur due to human intervention but also decrease the overall operational and production costs of a plant.
- Markets anticipate a trade deal is coming and the truce will be extended. All sides want a settlement so we believe it will be achieved. Mnuchin and Lighthizer are set to meet their Beijing counterparts on Thursday with the goal of hashing out a deal ahead of a March 1 deadline when U.S. tariffs against China are set to increase to 25 percent from 10 percent on $200 billion worth of Chinese goods.
- iPhone installed base is now over 900 million, adding almost 75 million over the past year. Predictions were that the iPhone installed base would hit one billion by the end of 2018, for instance. Apple may have missed that estimate, but it did grow the iPhone installed base by 9% over the past year.
- Apple Subscription – Over the last four quarters, its sales of apps, movies, games, Apple Music, AppleCare, iCloud subscriptions, and Apple Pay fees have generated roughly $39.6 billion for the company, with a 62% margin in the most recent quarter.
- The President of Venezuela’s opposition-dominated National Assembly Juan Guaido will announce new boards of directors for state oil company PDVSA and its U.S. business, Citgo, UPI reports. U.S. Treasure Secretary Steven Mnuchin said the he’ll hold PDVSA’s proceeds from crude oil sales to the United States, adding that the company could avoid being sanctioned if it recognized Guaido as the legitimate president of Venezuela.
- Saudi Arabia is determined to restore the balance on the oil market and is cutting deeper than required in the OPEC+ deal, with February crude production likely close to 10.1 million bpd, compared to the 10.3-million-bpd ceiling in the production cut agreement.
- PHILIPPINES: Terrorist group Daesh has claimed responsibility for a Sunday church bombing, which left 20 people dead and 100 wounded, on the southern island of Jolo. In response, a spokesman for President Rodrigo Duterte vowed to “crush these godless criminals.”