David Fuller and Eoin Treacy's Comment of the Day
Category - Autonomies

    Nike, Adidas Output Snarled as Covid Wave Shuts Asian Factories

    This article by Michelle Jamrisko for Bloomberg may be of interest. Here is a section:

    “It’s going to be worse before it gets better,” with shutdowns and staff disruptions increasing in Asia, said Deborah Elms, executive director of the Singapore-based Asian Trade Centre. “Places like Vietnam that largely avoided locking down cannot maintain an open posture. With vaccinations painfully slow, I assume more shutdowns in factories, with the ripple effects felt elsewhere.”

    Trade in goods has been a rare buffer for the Covid-ravaged global economy -- especially for export-heavy Asian countries -- but the latest reports show cracks in this growth pillar. The delta variant-driven surge has hit Southeast Asia especially hard, underscoring the delicate choices for policy makers who are balancing vaccination drives and mobility restrictions while trying to keep their economies afloat.

    The manufacturing pain is especially acute in Vietnam, where officials have taken drastic steps to ensure factories can continue operating. In some instances, electronics and tech companies have had workers sleep overnight on-site.

    The garment industry, with lower profits and more workers, hasn’t been able to replicate that effort. Feng Tay Enterprise Co., Pou Chen Corp. and Sports Gear Co. are among manufacturers that have suspended some operations in Vietnam.

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    Stock Traders Buy the Dip as Cyclicals Drive Rally

    This article from Bloomberg may be of interest. Here is a section:

    “We have a ways to go on the cyclical recovery here,” Levine, head of equities at the firm, said on Bloomberg TV and Radio. The U.S. has exhibited “an exceptionalism in the amount of fiscal policy, the amount of monetary stimulus and also in the way we vaccinated the population. And because of that I actually am very bullish,” she added.

    For Bill Callahan, an investment strategist at Schroders, “equities just make sense right now,” and dip buyers will be rewarded as the market continues to grind higher.

    On the economic front, data showed U.S. housing starts increased in June by more than forecast, suggesting residential construction is stabilizing despite lingering supply-chain constraints and labor shortages.

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    Branson's Space Jaunt Worth $841 Million for Virgin Galactic

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    The suborbital journey kicks off a landmark month for the future of space tourism, with Branson demonstrating Virgin Galactic’s capabilities nine days before Amazon.com Inc. founder Jeff Bezos plans to fly on a rocket made by Blue Origin, his space venture. Both companies envision businesses catering to wealthy tourists willing to pay top dollar for a short period of weightlessness and an unforgettable view of the Earth and heavens.

    Virgin Galactic’s test flight demonstrated that such trips -- once the stuff of science fiction -- are becoming increasingly realistic.

    While mostly accessible only to a tiny number of super- wealthy customers, they would add a new dimension to a burgeoning industry of private-sector space companies with plans for voyages to the International Space Station and new human outposts.

    Branson and his fellow crew members experienced a few minutes of weightlessness as the Unity reached its peak altitude.

    “So I looked out the window and the view is just stunning,” operations engineer Colin Bennett said afterward. “It’s very Zen; it’s very kind of peaceful up there as well.” Branson, who founded Virgin Galactic in 2004, said the memories of seeing the Earth from space will stay with him. “I’m never going to be able to do it justice,” he said. “It’s indescribably beautiful.”
     

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    Advance your thinking on 10 critical themes

    Thanks to a subscriber for this report from UBS which may be of interest. Here is a section on new materials:

    McDonald's, Amazon Accelerate Push Toward Higher Minimum Wage

    This article for Bloomberg may be of interest to subscribers. Here is a section:

    McDonald’s Corp. announced Thursday it will raise hourly wages by about 10%, bringing the average wage at its restaurants to more than $13 an hour. Chipotle Mexican Grill Inc. said earlier this week it will set hourly starting wages at $11 to $18. Target Corp. and Costco Wholesale Corp. have increased theirs to $15 and $16, respectively.

    McDonald’s is hiring 10,000 new employees at its company-owned stores over the next three months alone, and Walmart Inc. brought half a million people on board last year. Chipotle is hiring 20,000 workers across the U.S., and Target needs workers for the 30 to 40 stores it will open this year.

    Amazon.com Inc. also upped the labor market ante Thursday by announcing plans to hire 75,000 people in the U.S. and Canada at starting pay that will average more than $17 an hour. New employees will get hiring bonuses of $1,000 and those fully vaccinated for Covid-19 will get additional $100.

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    Kellogg Gains Amid Unexpected Organic Sales Growth in 1Q

    Kellogg shares rose as much as 3.9% to $65.50 premarket, which would be the highest intraday level since November, after the packaged food company surprised analysts with positive organic sales growth in the first quarter, vs expectations for a decline.

    “K impressed this morning, as another large-cap food name tops revenue and profit expectations, partially driven by positive shipment timing and emerging market strength,” Jefferies analyst Rob Dickerson writes

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    Yellen Says Spending May Spur 'Modest' Interest-Rate Increases

    This article may be of interest to subscribers. Here is a section:

    “It may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat,” Yellen, a former Federal Reserve chair, said in an interview with the Atlantic recorded Monday that was broadcast on the web on Tuesday. “It could cause some very modest increases in interest rates.”

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