MH Daily Bulletin: October 21

October 21, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • During M. Holland’s recent Plastics Reflections webinar, our panelists discussed the macroeconomic factors influencing global and domestic economies — including what it means for suppliers, distributors and manufacturers in the plastics industry. In case you missed it, click here to gain access to the full recording.
  • A recent Plastics News article focuses on M. Holland’s distribution of Purell medical-grade resins from LyondellBasell. Click here to read the article.

Supply

Supply Chain

  • La Niña will return to the U.S. for the third winter in a row, bringing warmer temperatures for the Southwest, Gulf Coast and Eastern Seaboard.
When Can You Expect El Niño and La Nina?

Domestic Markets

  • The U.S. reported 56,448 new COVID-19 infections and 532 virus fatalities Thursday.
  • The CDC is being advised to add COVID-19 vaccines to the agency’s lists of regular immunizations, like the flu. At the same time, more Americans are delaying or skipping follow-up shots.
  • The price for Pfizer’s COVID-19 vaccine could be as high as $130 once it hits private markets sometime next year.
  • U.S. jobless claims unexpectedly fell to 214,000 last week, indicating the labor market remains tight.
  • Factory activity in the Fed district of Philadelphia contracted again in October despite a modest improvement from September.
united-states-philadelphia-fed-manufacturing-index
united-states-existing-home-sales
  • U.S. airlines are coming out with impressive third-quarter results as the pandemic-related travel boom shows no sign of slowing.
  • Verizon, the U.S.’s No. 1 wireless carrier, posted a 23% slide in third-quarter profit and missed subscriber targets as more people switched to cheaper plans from AT&T and T-Mobile.
  • American Express saw a 24% gain in quarterly revenue to an all-time high, but the firm’s stock fell after it set aside larger-than-expected reserves for bad loans.
  • Shares of Allstate fell over 10% Thursday after the insurer announced over a billion dollars of reserve claims and inflation-related charges in the third quarter.
  • Chemicals giant Dow beat third-quarter profit estimates and outlined plans to cut costs by $1 billion next year to combat soaring European energy prices.
  • Cosmetics group L’Oreal posted strong quarterly sales growth of 9.1% on brisk demand in Europe and the U.S.
  • Adidas saw third-quarter sales rise 11% but cut its full-year guidance, citing weaker demand from China.
  • Visa, Mastercard and American Express will benefit from a surge in cross-border transactions as people continue to ramp up traveling.

International Markets

  • Beijing is ramping up public checkpoints and locking down residential buildings after COVID-19 cases quadrupled in recent weeks to a total of 18.
  • German producer prices rose a higher-than-expected 2.3% in September, notching a 45.8% gain year over year.
  • Japan’s imports rose 45.9% year over year in September to a record high, while its core inflation rate hit 3%, the fastest pace in eight years: 
japan-core-inflation-rate
  • The Bank of Japan began emergency bond purchases on Thursday after the yen dropped to a 32-year-low against the dollar. Additional intervention could be in the works.
  • Economic growth in the six-member Gulf Cooperation Council will remain strong but slow significantly next year as high oil prices hurt demand for the commodity, economists say. 
  • The U.K.’s prime minister resigned after just six weeks in office, the shortest tenure on record, after her failed tax cut plan sent the country’s currency crashing and forced Bank of England intervention.
  • India’s economy will grow well below its potential over the next two years as the central bank’s rate hikes show little progress in easing price pressures.
  • Canadian home prices fell by a record 3.1% from August to September, led by sharp declines in Ontario.
  • Walmart’s Mexico unit posted a 10% jump in third-quarter profit despite rising logistics and labor costs. 
  • Mexico’s Grupo Financiero Banorte, which owns one of the country’s largest banks and pension funds, raised its full-year outlook after a 30% surge in third-quarter profit.
  • Sweden’s Ericsson and Finland’s Nokia missed quarterly estimates as both companies were engaged in expensive patent litigation.
  • Canada ranks highest among G-7 nations in greenhouse gas emissions, with the U.S. ranked second.

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