MH Daily Bulletin: October 27

October 27, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • A recent Plastics News story highlights business insight from M. Holland’s Plastics Reflections webinar. Click here to read the article, which examines the various challenges facing international resin markets, including the economy, inflation, high inventories, reshoring and more.
  • M. Holland is sponsoring the Association of Rotational Molders (ARM) Annual Meeting in Atlanta on Nov. 6-9! Please stop by Booth #19 to meet our team of Rotational Molding experts and learn more about our product offerings and grinding capabilities.

Supply

  • Oil rose 3% Wednesday, boosted by rising exports, increased refining activity and the strong U.S. dollar.
  • In mid-morning trading today, WTI futures were up 1.4% at $89.17/bbl, Brent was up 1.1% at $96.74/bbl, and U.S. natural gas was down 5.2% at $5.31/MMBtu.
  • U.S. crude stocks rose by a larger-than-expected 2.6 million barrels last week, according to the Energy Information Administration (EIA).
United States Crude Oil Stocks Change

Supply Chain

Domestic Markets

  • The U.S. reported 69,897 new COVID-19 infections and 1,095 virus fatalities Wednesday.
  • Health experts fear rising cases of influenza and respiratory illnesses could trigger a COVID-19 wave heading into winter.
  • Most offices in the largest U.S. cities are still less than half full even after employers ramped up campaigns to bring workers back in recent weeks.
  • Companies broadly plan to step up college hiring next year as labor conditions remain tight, surveys show.
  • U.S. GDP grew a better-than-expected 2.6% last quarter, rebounding from two consecutive quarters of contraction. 
  • U.S. initial jobless claims rose by 3,000 last week to 217,000, indicating the employment market remains robust. 
  • The U.S. trade deficit in goods widened sharply by 5.7% in September, the first expansion in five months:
United States Goods Trade Balance
United States MBA 30-Yr Mortgage Rate
  • In the latest news from earnings season:
    • Shares of Facebook parent Meta plummeted 15% after the tech giant saw a second quarter of revenue decline and warned of near-term sales headwinds.
Meta's Spectacular Stock Market Crash
  • Boeing’s quarterly loss widened to $3.3 billion from $132 million a year ago, on a range of issues in its supply chain, defense business and regulatory approvals.
  • Kraft Heinz said strong demand in the face of rising inflation led to an 11.6% increase in quarterly sales.
  • Same-store sales at paint and coatings manufacturer Sherwin-Williams rose nearly 21% on higher product prices.
  • Business-jet-maker General Dynamics saw better-than-expected profit on strong demand for private flying.
  • Hilton Worldwide raised its annual profit forecast after travel demand topped forecasts in the third quarter.
  • Shopping mall owner Unibail-Rodamco-Westfield raised its guidance for the second time this year after tenant sales for the first nine months of 2022 beat pre-pandemic levels.

International Markets

  • China reported more than 1,000 COVID-19 cases for the third consecutive day, prompting a tightening of restrictions and lockdowns in hotspot cities. 
  • China will ease restrictions on international flights starting Oct. 30, despite keeping overall flights down substantially from pre-pandemic levels. 
  • China’s year-to-date budget deficit almost tripled from a year ago to a record $980 billion, as COVID-19 outbreaks and a housing market slump hit government finances.
  • A recent study of COVID-19 in the first year of the pandemic found that mild sufferers were 2.7 times more likely to suffer blood clots than normal, while those hospitalized were 22 times more likely to develop blood clots. 
  • Canada’s central bank raised its main interest rate a smaller-than-expected 50 basis points Wednesday, saying it was getting closer to the end of its historic tightening campaign amid forecasts of stalling GDP growth.
  • The European Central Bank raised interest rates by 75 basis points when it met today.
  • Brazil’s central bank held interest rates at a nearly six-year high for its second policy meeting in a row.
  • South Korea saw its slowest GDP growth in a year in the third quarter.
  • Singapore is seeing its fastest pace of inflation since 2008.
  • Fitch ratings agency downgraded Argentina’s sovereign credit rating from CCC to CCC-, citing deep macroeconomic imbalances and risks over debt repayment.
  • Beer brewers Heineken and Carlsberg say global demand for beer could start to slow. 
  • Quarterly earnings at the world’s largest grain companies are surging after months of crop shortages and global volatility. 
  • New research suggests global temperatures will increase between 2.1°C and 2.9°C by the end of the century even if global climate promises are kept. 

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