Economic effects of Coronavirus

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MN-Skeptic
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Economic effects of Coronavirus

#1

Post by MN-Skeptic »

At first I was thinking that the economic impact from the coronavirus could just be talked about in the Retail Bankruptcies thread, but I think this is a major issue affecting 1) individuals, 2) small businesses (farmers, local stores and restaurants), 3) major corporations. So I'm starting this thread just to address the economic impact of the virus.

One thing I noticed this morning was the stock price of Gannett (GCI), the company which owns USAToday, along with a number of large regional newspapers. The 52-week high for their stock: $7.06. They are currently trading for 68¢/share. That's a 90% drop in value! :eek2:
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Re: Economic effects of Coronavirus

#2

Post by Volkonski »

Newspapers getting less advertising because so many businesses are shut down.
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Re: Economic effects of Coronavirus

#3

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And no workers to pick up newspapers on their way.

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Re: Economic effects of Coronavirus

#4

Post by MN-Skeptic »

Or to pick up in the hotel lobby.
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Re: Economic effects of Coronavirus

#5

Post by Volkonski »

Houston-based oil company Halliburton lays off 350 workers

https://www.houstonchronicle.com/busine ... m=referral
The job cuts were revealed in a filing with the Oklahoma Office of Workforce Development.

Halliburton's move follows a December decision to close a similar facility in El Reno, Okla., and cut 800 jobs. Some employees from the El Reno center found new jobs at the Duncan facility.

The layoffs are the latest sign of pain for Halliburton and the oil-field service company, which is struggling to adapt to oil prices near a 20-year low. A price war between Russia and Saudi Arabia has exacerbated a global oil glut while shutdowns related to the coronavirus pandemic have slashed demand.

At Halliburton's headquarters in Houston, about 3,500 workers have been ordered to work every other week through May.
The oil industry was slowing even before the pandemic. Now the pandemic has made things much worse by reducing demand for most petroleum products.
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Re: Economic effects of Coronavirus

#6

Post by Suranis »

This is kinda hilarious.



Companies that ran to China for cheap labour suddenly realise that a communist Authoritarian regime does not give 2/10ths of a fuck about the personal property or investments of stupid Foreigners. Eat shit, gringos, and thanks for the Factories! (I have no idea what they call foreign whites in China, so Gringo works.)
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Re: Economic effects of Coronavirus

#7

Post by RTH10260 »

the article mentioned
Trump administration weighs legal action over alleged Chinese hoarding of PPE
By Ebony Bowden and Bruce GoldingApril 5, 2020 | 6:41pm | Updated

Leading US manufacturers of medical safety gear told the White House that China prohibited them from exporting their products from the country as the coronavirus pandemic mounted — even as Beijing was trying to “corner the world market” in personal protective equipment, The Post has learned.

Now, the Trump administration is weighing legal action against China over its alleged actions, a lawyer for President Trump said Sunday.

“In criminal law, compare this to the levels that we have for murder,” said Jenna Ellis, a senior legal adviser to Trump’s re-election campaign.

“People are dying. When you have intentional, cold-blooded, premeditated action like you have with China, this would be considered first-degree murder.”

Ellis said the options under consideration include filing a complaint with the European Court of Human Rights or working “through the United Nations.”

Executives from 3M and Honeywell told US officials that the Chinese government in January began blocking exports of N95 respirators, booties, gloves and other supplies produced by their factories in China, according to a senior White House official.

China paid the manufacturers their standard wholesale rates, but prohibited the vital items from being sold to anyone else, the official said.



https://nypost.com/2020/04/05/trump-adm ... ng-of-ppe/

How does this compare to the US now prohibiting exports to Canada and other countries? And obviously China paid the going rate, while we read that the US authorities have confiscated products bought and paid by health care institutions and states, no mentioning of refunds. And may I have a :rotflmao: over the mentioning of the European Court of Human Rights, an instituition that the US is not member of and decides claims from residents within Europe. And another :rotflmao: about working “through the United Nations”, another much maligned institution.

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Re: Economic effects of Coronavirus

#8

Post by Whatever4 »

I thought foreign companies in China had to be joint ventures?
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Re: Economic effects of Coronavirus

#9

Post by tek »

Trump gonna use this to stir up more hate on Asians in 3.. 2..
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Re: Economic effects of Coronavirus

#10

Post by DejaMoo »

Chinese-backed company's mission to source Australian medical supplies
https://www.smh.com.au/national/chinese ... 54du8.html
As the coronavirus took hold in Wuhan earlier this year,
staff from the Chinese government-backed global property giant Greenland Group were instructed to put their normal work on hold and source bulk supplies of essential medical items to ship back to China.

A whistleblower from the company has told the Herald it was a worldwide Greenland effort - and the Sydney office was no different, sourcing bulk supplies of surgical masks, thermometers, antibacterial wipes, hand sanitisers, gloves and Panadol for shipping.

The boardroom and meeting rooms of Greenland’s headquarters in Market Street were used to repack the medical items into boxes stamped with the company’s logo. Pallet-loads of the medical supplies were then sent to China.

According to a company newsletter, the Greenland Group sourced 3 million protective masks, 700,000 hazmat suits and 500,000 pairs of protective gloves from "Australia, Canada, Turkey and other countries."
Here's the thing. The Chinese government organized and directed this not-so-stealthy move to acquire PPE and ship it back to China. Governments worldwide, including the US, were aware of this happening in their countries. Ordinary people knew it was happening. My employer has a substantial number of foreign-born employees, and we were knew that our Chinese coworkers were hitting the local stores, especially the medical supply and warehouse stores, buying up whatever they could find and shipping it back to China. People working in the medical supply and warehouse stores were dealing with large numbers of Chinese shoppers cleaning out their stocks, too.

And no one was concerned about it in the slightest. Because hey - the virus outbreak was in China, and our governments weren't concerned, so no big deal, right? If anything, we felt sorry for those poor people.

Until the virus became an issue in other countries, and suddenly, our inventories of PPE, both retail and wholesale, were already sadly depleted, in large part due to the Chinese government-directed effort to amass these supplies worldwide and ship them back to China.

Don't blame China. Blame the governments who were aware this was happening and took no action to stop it, or to negotiate a friendly, humanitarian sharing of the world's inventory.
I've heard this bull before.

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Re: Economic effects of Coronavirus

#11

Post by Volkonski »

City of Galveston stay home orders impacting businesses


https://abc13.com/6084197/?ex_cid=TA_KT ... ce=twitter
"The global impact of COVID-19 on the tourism industry has been devastating," said Galveston park board director Kelly DeShaun. "Travel and tourism is changed forever."

DeShaun said the park board relies heavily on tourists. She said they've implemented significant budget and operational reductions for the remaining six months of the fiscal year.

For the months of April and May, she predicts there will be limited, if any, revenue coming in to the parks board.

:snippity:

DeShaun said, "the economic impact of these last 60 days is destined to affect Galveston, not only for this fiscal year, but for several years to come."
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Re: Economic effects of Coronavirus

#12

Post by AndyinPA »

When this is over (in a couple of years), we will have a new normal. We will never see the normal we had three months ago again, not in travel and not in anything else.
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Re: Economic effects of Coronavirus

#13

Post by Foggy »

I agree 100%, AndyinPA. I'm living in a world beyond the scope of my imagination.
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Re: Economic effects of Coronavirus

#14

Post by jmj »

Cities That Went All In on Social Distancing in 1918 Emerged Stronger for It

They had lower mortality rates from the influenza pandemic. But their economies also appeared to fare better.

https://www.nytimes.com/interactive/202 ... 28d0f8d675

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Re: Economic effects of Coronavirus

#15

Post by Reality Check »

I was watching a video today from a guy I follow on YouTube. He runs a computer repair business in NYC. His name is Louis Rossman. He said the fine print of his business interruption insurance has an exclusion for viruses, bacteria, and microbial organisms as a cause of the interruption. I was curious if this clause is standard. I bet it is.



Jump to 5:50 for the discussion about the exception.
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Re: Economic effects of Coronavirus

#16

Post by Volkonski »

Exxon Mobil slashes capital spending by $10 billion because of oil crash

https://www.houstonchronicle.com/busine ... 184115.php

Vallourec cuts 900 pipe manufacturing jobs in North America

https://www.houstonchronicle.com/busine ... 184492.php

Service companies lead energy bankruptcy filings so far this year

https://www.houstonchronicle.com/busine ... 184036.php
Eight oil-field service companies with a combined $10.9 billion of debt filed for Chapter 11 bankruptcy during the first quarter, an increase over six companies during the fourth quarter of 2019.
More than 25% of construction firms report furloughs, layoffs
More than half said they had clients stop projects because of the economic fallout of the novel coronavirus.


https://www.houstonchronicle.com/busine ... 185282.php

BJ’S RESTAURANTS SUSPENDS RENT PAYMENTS

https://www.restaurantbusinessonline.co ... t-payments
In a securities filing, BJ’s also indicated that it has furloughed 16,000 hourly employees. The affected workers were paid for accrued and unused vacation time and sick leave. BJ’s said it has also provided emergency paid leave to employees who did not qualify for that benefit under state or local laws.
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Re: Economic effects of Coronavirus

#17

Post by Volkonski »

Our local newspaper is cutting down from 5 editions a week to three. :(

Sun cutting 2 editions

http://baytownsun.com/news/article_8fe4 ... e8c86.html
Because of the coronavirus pandemic and its negative effects on the economy, The Baytown Sun is cutting two editions from its publishing frequency.

Beginning today, The Sun will print and deliver copies only on Tuesdays, Thursdays and an expanded “Weekend Edition” delivered on Saturday mornings.

We do not take these actions lightly. Our goal is to ensure we weather the difficult days ahead and emerge stronger together with opportunities to grow our business when the pandemic passes.

We truly hope the reduction in frequency is temporary, but The Sun might not return to five-day printing immediately after the crisis abides. As we are able, we look forward to re-introducing print days.
The Sun was a 7 day a week evening newspaper when we first moved here. Several years ago it changed to a 5 day a week morning paper.

Today's edition had both today's and tomorrow's comics, crossword, etc.
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Re: Economic effects of Coronavirus

#18

Post by Volkonski »

Some of America’s Oil Refineries May Be on the Brink of Shutting
U.S. gasoline demand is down about half from a year ago


https://www.bloomberg.com/news/articles ... and-plunge
Marathon Petroleum Corp. plans to idle its Gallup, New Mexico, refinery next week, according to a person familiar with the matter. It’s the first U.S. facility to shut as the coronavirus pandemic empties skies of passenger planes and the roads of cars.

It’s not likely to be the last. Major U.S. refiners, including Marathon, Valero Energy Corp. and Phillips 66, have lowered rates at their facilities to be at or near minimum levels as storage tanks fill up with fuel they can’t sell. While that “minimum” level differs from company to company, and in fact from plant to plant, it’s seen typically somewhere around 60% to 65% of capacity. Below that, many facilities need to be idled.

“If after cutting rates to a minimum, refiners are still unable to move their products, they are faced with the prospect of completely shutting down,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

Slowing down a refinery isn’t like turning down the fire on a gas range when the water threatens to boil over. A refinery is a complex web of interconnected units, so once the amount of crude being processed in the distillation unit falls too low, secondary units don’t have enough feedstock to keep running. Since many units operate under high pressure as well as high temperature, it becomes more difficult to maintain the proper conditions for operation.
This isn't just about gasoline. If the refineries cut back due to lack of demand for gasoline they won't be producing as much of the many other petroleum products they make like kerosene, heating oil, diesel fuel, asphalt, petroleum coke, sulfur, etc.
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Re: Economic effects of Coronavirus

#19

Post by ZekeB »

Volkonski wrote:
Thu Apr 09, 2020 7:10 am
This isn't just about gasoline. If the refineries cut back due to lack of demand for gasoline they won't be producing as much of the many other petroleum products they make like kerosene, heating oil, diesel fuel, asphalt, petroleum coke, sulfur, etc.
The locals are getting concerned about ethanol production here. Those plants have been cutting back production. I know two people who are employed in car repair body shops. Both have been laid off. On the plus side, my insurance company is going to be giving me a rebate, due to far fewer claims in the past two months. I suppose car repair places are in the same boat. Fewer repairs needed with fewer miles driven. There is a ripple in the economy and it's going to be felt for at least the next year.

Personally I don't understand why the stock market is gaining speed again. It's too early. Companies haven't begun to report their losses yet.
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Re: Economic effects of Coronavirus

#20

Post by Volkonski »

Fuel demand rout sends ethanol output to lowest in a decade

https://www.houstonchronicle.com/busine ... 187676.php
Output of corn-based biofuel plunged by a record 20% to an average daily rate of 672,000 barrels. That’s the lowest rate since the Energy Information Administration began publishing weekly data in mid-2010. Stockpiles jumped to a record 27 million barrels, underscoring the demand struggles.

Federal regulations mandate nearly every gallon of gasoline sold in the U.S. contain about 10% ethanol. However, after the virus helped drive down oil prices amid a dispute between Russia and Saudi Arabia over production levels, ethanol producers can no longer profitably make the fuel. Dozens of plants have idled or slowed, including top producer POET, which said Tuesday it was idling three facilities in Iowa and South Dakota.

Meanwhile, 15 U.S. senators including Joni Ernst of Iowa have sent a letter to the Department of Agriculture requesting ethanol makers receive coronavirus relief funds earmarked for the farm sector. The sector accounts for more than a third of corn demand.
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Re: Economic effects of Coronavirus

#21

Post by Volkonski »

Half billion more people face poverty due to virus - report

https://www.houstonchronicle.com/news/w ... 189135.php
Around half a billion people could be pushed into poverty as a result of the economic fallout from the coronavirus pandemic unless richer countries take “urgent action” to help developing nations, a leading aid organization warned Thursday.

In the run-up to three key international economic meetings next week, Oxfam has urged richer countries to step up their efforts to help the developing world. Failing to do so, it added, could set back the fight against poverty by a decade and by as much as 30 years in some areas, including Africa and the Middle East.

“The devastating economic fallout of the pandemic is being felt across the globe," said Jose Maria Vera, Oxfam International Interim Executive Director. “But for poor people in poor countries who are already struggling to survive there are almost no safety nets to stop them falling into poverty.”

The report, which is based on research at King’s College London and the Australian National University, warns that between 6% and 8% of the global population could be forced into poverty as governments shut down entire sectors of their economies to manage the spread of the virus. As an example of the repercussions of the lockdowns in many Western countries, the report notes that more than a million Bangladeshi garment workers — 80% of whom are women — have already been laid off or sent home without pay after orders were cancelled or suspended.
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Re: Economic effects of Coronavirus

#22

Post by Volkonski »

Texas already in recession, State Comptroller Glenn Hegar says

https://www.expressnews.com/news/articl ... 184679.php
“You don’t have the data but it’s pretty evident that much of the world is shut down,” Hegar, the state’s top tax collector, said in a live interview with the Texas Tribune. “You just don’t know how bad it’s going to be.”

The comptroller had been warning of a slowdown for days now, but his remarks Tuesday seemed to be his first public admission that the state is now in the throes of it. Texas is combating the coronavirus pandemic and reeling from a global price war in the oil sector that has slashed profits.

Hegar said officials won’t have their first real glimpse into the slowdown until June, but early indicators show significant declines. Unemployment claims have skyrocketed in the last two weeks, hotel occupancy rates have dropped to historic lows, and most local businesses are no longer collecting sales tax — the single biggest source of state tax revenue.

Hegar said he has started talking to agencies about cutting their spending, and plans to use the rainy day fund to help get the state through until legislators reconvene next spring. Under state law, the comptroller can borrow from the fund to maintain cash flow.
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Re: Economic effects of Coronavirus

#23

Post by Volkonski »

US newspapers face 'extinction-level' crisis as Covid-19 hits hard

https://www.theguardian.com/media/2020/ ... ers-impact
The devastating sweep of Covid-19 is the biggest story in a generation, and for most newspapers and news sites it has triggered record numbers of readers. Yet the virus, industry experts warn, will spell the end for “hundreds” of those organizations, laying off journalists and closing titles.

Media outlets across the US have already responded to a huge drop in advertising triggered by the economic shutdown by sacking scores of employees. Some newspapers, just as demand is at its highest, have stopped printing – reverting to a digital-only operation that is just as vulnerable to the whims of advertisers.

The decrease in advertising was swift, as businesses tightened spending due to the economic impact of Covid-19. For a journalism industry already barely scraping by, the impact was almost immediate.

In Louisiana, one of the states suffering the most from the coronavirus, the Times-Picayune and the Advocate furloughed 10% of its 400 staff, and switched the rest to four-day work weeks. The Plain Dealer, a daily newspaper in Cleveland, Ohio, laid off 22 newsroom staff – including its health reporter.
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Re: Economic effects of Coronavirus

#24

Post by Volkonski »

The Associated Press
@AP
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5m
BREAKING: 10% of US labor force now out of work since virus slammed economy as 6.6 million file for jobless aid.


MSNBC
@MSNBC
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1m
NEW: Another wave of 6.6M American workers have filed unemployment claims for the week ending April 4, bringing the cumulative total to 16M over the past 3 weeks.
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Re: Economic effects of Coronavirus

#25

Post by Volkonski »

So the number of new filings has set a record for 3 weeks in a row. The similarity of the numbers today and a week ago makes me wonder if these numbers actually represent the number of filings that can be processed rather than the actual number of people newly unemployed.
Ali Velshi
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BREAKING: 6,606,000 people filed for unemployment benefits for the 1st time last week, adding to the 6,600,000 the prior week & the 3,300,000 million the week before. The total of 1st time claims during the pandemic now 16,606,000
Reuters Business
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With more than 95% of Americans under 'stay-at-home' or 'shelter-in-place' orders, reports continue to mount of state employment offices being overwhelmed by a deluge of applications
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