Archives of “February 18, 2020” day

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Walmart adds to Apple woes ahead of Wall Street open today

  
  Analysis

Walmart Q4 earnings disappoint

Walmart

EPS missed estimates ($1.38 actual vs $1.43 forecast) and revenue also fell short of expectations ($141.67 billion actual vs $142.41 billion forecast), meanwhile comp. sales grew by just 1.9% in the final quarter of last year.

Overall, that is a poor report and will add to the drag from Apple’s warning from overnight as this will raise concerns about the health of the US consumer in general.
To top it off, Walmart said it did not include any potential impact from the coronavirus outbreak in its current assumptions – which I’m not sure can be even said as a good thing, as it is only a matter of time before we see corporate earnings suffer more pain.

China president Xi: China still able to meet 2020 economic target despite virus impact

  
  Analysis

Comments by China president Xi Jinping, via state media

  • Coronavirus impact on Chinese economy is temporary
It has become a daily message now by either Xi or Chinese premier Li Keqiang to try and exert some calm back into the country as they continue to do battle against the virus.
The fact that the NPC session looks likely to be delayed goes to show that China will definitely be quite severely impacted by the virus outbreak. I wouldn’t be surprised if they refuse to put a firm number/target in setting their goal for economic growth this year.
Xi

China trade body says some customers have stopped accepting China metal products amid coronavirus outbreak

  
  Analysis
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China trade body: some customers in Russia, Turkey, Middle East and North Africa have stopped accepting deliveries of China metal products amid coronavirus outbreak

More:
  • some overseas customers, including from India, ask China metal firms to pay damages for failure to deliver products on time

China’s cargo crisis – some carriers plan to declare force majeure, abandon containers

  
  Analysis
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Via the folks at global logistics information site Loadstar:

  • Japanese carrier ONE has joined several of its liner peers in imposing a congestion surcharge on reefer containers destined for major Chinese ports
  • some carriers are preparing to declare force majeure and leave refrigerated containers at alternative ports
  • coronavirus outbreak … severely restricting landside operations at the ports of Shanghai, Ningbo and Xingang
  • ONE … said it may need to “adjust the original transport plan”, which could result “in the discharge of reefer containers at an alternative port without prior notice”
Plenty more at that link above
Via the folks at global logistics information site Loadstar:

Japan press: Tokyo Metropolitan Government says the coronavirus may be spreading in the capital

  
  Analysis
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Expressing concerns Japan may become the next hotspot for an outbreak

  • A sudden spike in new coronavirus cases was confirmed among attendees at a New Year’s party for independent taxi drivers held on a traditional “yakatabune” river tour boat in the capital
The party was held on Jan 18:
  • was attended by about 70 taxi drivers and their families
  • the windows were shut due to heavy rain, creating a confined space with insufficient ventilation — the kind of environment where disease spreads more easily.
Here is the link for more, it appears 11 infections have come from the party.
Expressing concerns Japan may become the next hotspot for an outbreak 

Jeff Bezos announces $10 billion ‘earth fund’

  
  Analysis
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Amazon founder on his plan to fight climate change

Jeff Bezos announced this on his instagram account:
Today, I’m thrilled to announce I am launching the Bezos Earth Fund.⁣⁣⁣
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Climate change is the biggest threat to our planet. I want to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change on this planet we all share. This global initiative will fund scientists, activists, NGOs – any effort that offers a real possibility to help preserve and protect the natural world. We can save Earth. It’s going to take collective action from big companies, small companies, nation states, global organizations, and individuals. ⁣⁣⁣
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I’m committing $10 billion to start and will begin issuing grants this summer. Earth is the one thing we all have in common – let’s protect it, together.⁣⁣⁣
That’s a big chunk of money for the world’s richest man, but still only a dent in his $130.5B estimated net worth.

Apple says it doesn’t expect to meet revenue guidance this quarter- Full Report

  
  Analysis
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Apple issues update

Apple says they now expect a slower return to normal conditions in China with demand curbed within the country.
Here is the statement:
Our quarterly guidance issued on January 28, 2020 reflected the best information available at the time as well as our best estimates about the pace of return to work following the end of the extended Chinese New Year holiday on February 10. Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors.
The first is that worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province – and while all of these facilities have reopened – they are ramping up more slowly than we had anticipated. The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues. These iPhone supply shortages will temporarily affect revenues worldwide.
The second is that demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic. We are gradually reopening our retail stores and will continue to do so as steadily and safely as we can. Our corporate offices and contact centers in China are open, and our online stores have remained open throughout.
Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations.The situation is evolving, and we will provide more information during our next earnings call in April. Apple is fundamentally strong, and this disruption to our business is only temporary.
Our first priority – now and always – is the health and safety of our employees, supply chain partners, customers and the communities in which we operate. Our profound gratitude is with those on the front lines of confronting this public health emergency.
How can three things all be your ‘first priority’? Judging by all the Foxcon reports, it’s tough to make the argument that health and safety is exactly the priority.
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