MH Daily Bulletin: October 28

October 28, 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 about 1.3% Thursday on optimism over record U.S. exports.
  • In mid-morning trading today, WTI futures were down 0.9% at $88.18/bbl, Brent was down 1.0% at $96.02/bbl, and U.S. natural gas was down 3.5% at $5.67/MMBtu. Prices are headed for a weekly gain of around 3%.
  • Combined U.S. exports of crude oil and refined petroleum products surged to a record 11.4 million bpd last week.
  • In petrochemicals earnings news:
    • Exxon Mobil beat third-quarter earnings estimates, reporting $19.7 billion in net income, a record. 
    • Chevron reported third-quarter net income of $11.2 billion, beating expectations with its second highest quarterly profit on record.
    • Shell posted near-record quarterly profit of $9.45 billion and said it would raise dividends for the fifth time of the pandemic this fall.
    • TotalEnergies saw record quarterly profit of $9.9 billion, while booking another massive charge of $3.1 billion for its exit from Russia.
    • PetroChina, Asia’s largest oil and gas producer, saw profit jump 60% to $16.66 billion between January and September, while China National Offshore Oil Corp (CNOOC) saw an 89.1% profit surge in the third quarter.
  • Oil firms are preparing to abandon Venezuela following years of underinvestment and mismanagement spurred by U.S. sanctions.
  • More oil news related to the war in Europe:
  • U.S. and Western officials are reportedly finalizing plans to impose a cap on Russian oil prices.
  • TerraPower, a small nuclear reactor company backed by Bill Gates, is looking at building five additional reactors in the U.S. West by 2035. 
  • Linde, the world’s largest industrial gases firm, says U.S. investment opportunities could top $30 billion over the next decade as lawmakers push bills to speed up the energy transition. 
  • France’s Engie has acquired over 6 GW of North American green power capacity.
  • The China-backed Asian Infrastructure Investment Bank is cautioning against governments dropping renewables targets for short-term energy security.
  • By 2030, annual investment in renewables must triple to $1.3 trillion per year if the world is to reach long-term net-zero emissions, experts say.

Supply Chain

Domestic Markets

  • The U.S. reported 56,669 new COVID-19 infections and 539 virus fatalities Thursday.
  • Respiratory illness is surging in the U.S. after two years of pandemic restrictions reduced people’s immunity.
  • Subvariants of Omicron are more likely to evade antibody drugs, new research shows. 
  • Up to one-third of people who recovered from COVID-19 saw symptoms rebound several weeks later.
  • Remote-work positions on LinkedIn are dropping even as demand for the jobs rise, new data shows.
  • The Personal Expenditure price index rose 6.2% in the year that ended in September and the Employment Cost Index rose 1.2% in the latest quarter, indicating inflation pressures continue.
  • The Federal Reserve is widely expected to deliver another 75-basis-point interest-rate hike at its meeting next week.
  • U.S. goods imports expanded 0.8% in September while exports fell 1.5% in the third straight monthly decline.
  • U.S. wholesale inventories rose 0.8% from August to September, the 26th month of growth:
United States Wholesale Inventories
  • New orders for U.S.-made capital goods unexpectedly fell by 0.7% in September, suggesting a loss of momentum in business spending on equipment.
  • U.S. mortgage applications fell 1.7% last week, the fifth week of declines, as interest rates topped 7% for the first time in 20 years.
  • In the latest news from earnings season:
    • Amazon posted its first quarterly profit of 2022 but warned of a sharp slowdown in current-quarter sales amid widespread economic uncertainty.
    • Apple saw record revenue of $90.1 billion in the third quarter despite a miss on iPhone and services sales.
    • Facebook parent Meta lost nearly 25% of its market value Thursday, or $85 billion, just a day after reporting falling revenue and climbing costs.
    • Caterpillar’s sales climbed by 21% as the company sold more equipment at higher prices for the construction and energy markets.
    • Unilever raised its full-year outlook after lifting prices by an average of 12.5% in the third quarter, making up for a modest decline in unit sales.
    • Southwest Airlines said delivery delays for its Boeing jet orders prevented it from fully capitalizing on strong travel demand in the third quarter.
    • Comcast posted a dip in quarterly revenue as a slowdown in its media segment offset strong growth elsewhere.
Advertisers Hit the Brakes Amid Economic Uncertainty
  • Defense contractor Northrop Grumman said full-year results would be on the lower end of forecasts amid lingering supply-chain snags and higher costs.
  • Merck raised its outlook after posting a 14% rise in sales, led by growing demand for its oncology treatments.
  • Gilead Sciences’ third-quarter profit and sales blew past estimates on strong demand for its COVID-19 treatments.
  • Anheuser-Busch InBev, the world’s largest brewer, saw better-than-expected earnings on strong sales in Mexico and South Africa.
  • McDonald’s smashed quarterly targets but said it is bracing for an economic downturn in the U.S. and Europe.
  • Mastercard topped quarterly expectations even as spending growth slowed to its lowest level in more than a year.
  • Carbon became the latest prominent 3D printing company to announce staff reductions in the face of an industry slowdown. 

International Markets

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