October 1, 2020 • Posted in News, Daily Bulletin

COVID-19 Bulletin: October 1

Good Afternoon,

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Crude prices were off in early trading, with the WTI at $39.70/bbl and Brent at $41.82/bbl. Natural gas was higher at $2.56/MMBtu.
For the first time since 1960, personal expenditures for electricity in the U.S. exceeded expenditures for gasoline.
A recent further slump in air traffic has further eroded demand for jet fuel and exacerbated a glut of diesel fuel inventories.
The Association of American Railroads said total rail traffic was down 2.1% last week year over year, with intermodal freight higher and carloads lower.
Bank of America is bullish on hydrogen, predicting the fuel source is on the cusp of breakthroughs that will propel the industry to $11 trillion by 2055.
Cambridge University pledged to divest all fossil fuel investments in its endowment fund by 2030.
LyondellBasell announced ambitious sustainability goals, saying it will produce 2 million metric tons per year of plastic from recycled and renewable resources by 2030.

Wildfires have now burned more than 4 million acres in California, twice the previous record season, with another month of the season to go. Hot and windy weather is forecast through the weekend.
According to the American Trucking Association, tonnage demand will rise nearly 5% next year, exacerbating a driver shortage and pushing costs higher.
Occupancy of big box warehouses rose 51% in the first half of 2020, driven by online retailers expanding their order fulfillment capacity in the wake of the pandemic.
Trucking capacity remains tight throughout the U.S., and spot pricing remains elevated.
Clients are advised to provide expanded lead times on orders to help ensure delivery dates will be met.

There were 42,812 COVID-19 infections in the U.S. yesterday and 946 deaths.
COVID-19 infections in 30 states are trending higher this week.
COVID-19 cases rose in 27 states in September compared with August, with Wisconsin experiencing the largest increase — over 110%.
There were 837,000 first-time jobless claims last week, down 36,000 from the prior week. Continuing claims fell by 980,000 to 11.8 million.
Personal income fell 2.7% in August from the prior month with the expiration of supplemental unemployment payments. Consumer spending rose 1.0% month over month.
Leaders of the White House and House of Representatives will meet today on a fourth stimulus package after the White House proposed a $1.6 trillion deal as a counter to the House’s $2.2 trillion proposal.
In an unusual twist during the pandemic recession, the trade deficit has increased instead of decreased:

Pending home sales rose a record 8.8% from July to August, fueled by low interest rates.
A number of companies announced major staff reductions this week, indicating that job losses are escalating into higher wage positions:
- American Airlines and United Airlines announced late yesterday that they will proceed with previously announced furloughs of tens of thousands of workers beginning today.
- Goldman Sachs announced staff reductions, joining major banks globally that have cut nearly 70,000 positions so far this year.
- Allstate is laying off 8% of its workforce due in part to a drop in auto claims processing as people drive less.
- Disney’s announced layoff of 28,000 theme park employees suggests the leisure industry may not recover until there is a COVID-19 vaccine.
Ford’s new CEO is wasting no time in shaking up the senior management ranks and restructuring operations.
Healthcare insurers are scaling back full reimbursement for telehealth services, reinstituting copays that were waived early in the pandemic.
The CDC extended its ban on cruises through October 31 in the wake of COVID-19 outbreaks on several recent cruise ships.
Many young people, free to work remotely from anywhere, are “Covid road tripping,” leaving permanent dwellings for prolonged travel to different cities.

China’s manufacturing recovery continued in September, when the purchasing manager’s index rose to 51.5 from 51.0 in August.
Europe’s unemployment rate rose to 8.1% in July, the fifth consecutive monthly increase.
Nations across Europe are reimposing restrictions in response to a spreading second wave of the pandemic.
COVID-19 fatalities in India passed 100,000, third highest globally behind the U.S. and Brazil.
Rwanda has achieved among the lowest COVID-19 infection rates in the world by mounting one of the most aggressive and technically sophisticated responses, including the use of drones and robots to enforce social distancing rules.
Insolvencies are soaring globally during the pandemic:

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