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Supply
- Oil prices are poised for a nearly 11% fall this month, the worst monthly slide since March.
- Crude prices were down in early trading today, with the WTI off 2.2% at $35.38/bbl and Brent down 0.8% at $37.36/bbl. Natural gas was 0.5% higher at $3.33/MMBtu.
- Exxon plans to cut 15% of its global workforce, including 1,900 jobs in the U.S., through 2021. The company failed to raise its stock dividend for the first time in 38 years.
- Royal Dutch Shell increased its stock dividend on better-than-expected financial results in the third quarter.
- The national average price for one gallon of diesel fell for the seventh time in the past eight weeks.
- Lower prices for high-quality fuels are denying shipping companies a return on expensive scrubbers they’ve installed on vessels in recent years to curb emissions.
- A Venezuelan oil refinery allegedly suffered a terrorist attack Thursday, with a large blast seriously damaging a crude oil distillation unit.
Supply Chain
- Hurricane Zeta left more than 2.1 million people without power after charging into the U.S. Gulf Coast on Thursday. We are unaware of any major supply disruptions experienced by petrochemicals operations due to the storm.
- The southern California wildfires that forced more than 130,000 evacuations earlier this week have been mostly contained, officials say.
- Fires are still blazing in Colorado, damaging or destroying 700 structures and burning 600 square miles in the northern part of the state.
- Las Vegas, traditionally known for its gaming and entertainment industry, is emerging as a hub for logistics operators and manufacturers due to favorable tax rates and a well-positioned location.
- A federal judge ordered the U.S. Postal Service to resume late and extra truck trips from sorting facilities to delivery stations.
- Freight forwarder Kuehne+Nagel has cut 5,000 employees this year and imposed a hiring freeze because of the pandemic.
- Norfolk Southern railroad suffered a 13% drop in profit in the third quarter after delivering fewer shipments and taking a one-time charge of almost $100 million.
- With tight freight capacity nationwide and supply constraints with many plastic resins, clients are advised to provide expanded lead times on orders to help ensure delivery dates.
Markets
- The U.S. set a new record for confirmed COVID-19 cases Thursday with 89,940, about one new case per second. The total number of infections countrywide approached 9 million, with 1 million infections added in the past 14 days.
- Illinois reported a new daily case record for the second time in a week on Thursday, with 6,363.
- Ohio shattered its record for new COVID-19 cases on Thursday with 3,590, the first day with infections above 3,000.
- Minnesota reported a record number of COVID-19 cases Thursday, with 2,872.
- Indiana reported a record number of COVID-19 cases Thursday, with 3,649.
- New Jersey on Thursday reported its highest case count since May — 1,477, prompting the governor to impose new restrictions on some of the state’s hardest hit areas.
- Kansas reported a record number of cases Wednesday, as the state’s governor considered calling a special legislative session to impose a statewide mask mandate.
- Cases in Iowa are surging, with the hospitalization rate reaching a record 600.
- After reporting a record number of cases Wednesday, a South Dakota health official said 28 residents have possibly been reinfected with the disease 90 days after first contracting it.
- The greater Washington, D.C. region saw almost 2,500 new cases Thursday, the highest number since August.
- The U.S. registered more than 500,000 new COVID-19 cases in the week ended yesterday, a weekly record.
- U.S. virus hospitalizations have jumped almost 50% since the beginning of October, with a significant portion occurring in the Upper Midwest.
- A study out of Tennessee shows COVID-19 hospitalizations rise at a lower rate in areas that have mask mandates compared to areas without a mandate.
- There is a strong correlation between Google searches for phrases like “loss of taste and smell” and infection rates, suggesting search data can be used to identify COVID-19 hotspots.
- Researchers in several cities are testing sewage to track COVID-19 case levels. The tests mirror trends seen by the more common method of counting cases, but can also show specific areas, neighborhoods and even buildings where the virus may be spreading.
- U.S. auto sales have roared back faster than expected, fueled by low interest rates, government stimulus and a shift in consumer spending from services to goods.
- Electric vehicle maker Tesla plans to open 52 service centers in 2021, or one per week.
- The pandemic continued to boost the tech sector, with five big tech companies reporting strong results Thursday evening.
- While iPhone sales fell due to delays, Apple’s revenue beat analysts’ estimates on higher sales of iPads and laptops.
- Despite a recent antitrust lawsuit, Google parent Alphabet posted record revenue of $46.17 billion, or 14% higher than the same time last year.
- Amazon reported a 37% increase in revenue from last year on the surge of online shopping during the pandemic.
- Facebook’s revenue jumped more than 20% year over year, but the company lost active users in the core markets of the U.S. and Canada.
- Twitter stock fell 16% after the company reported higher-than-expected revenues but lower-than-expected growth in users.
- Toy sales are up 18% this year, with classics such as Tonka Trucks, Barbies, Hot Wheels and Legos making a comeback during the pandemic as parents seek to pry their children from video screens.
- Tupperware’s sales are up 14% year over year on the rapid rise of home cooking during the pandemic.
- A virus outbreak on the University of Wisconsin football team has imperiled the team’s season, raising broader questions about the ability of colleges to go forward with the season.
- Clemson quarterback and Heisman Trophy frontrunner Trevor Lawrence tested positive for COVID-19 and must quarantine for 10 days.
International
- Total global COVID-19 cases surpassed 45 million yesterday.
- Europe accounted for 40% of the world’s new infections in the past week, along with recording one in every five virus-related deaths.
- Regional authorities in Spain are imposing regional border restrictions barring non-essential travel within the country, which has been under a state of emergency order since Sunday.
- The European Central Bank signaled it will introduce additional stimulus measures before year-end on concerns for the region’s deteriorating economy, pushing the euro lower against the U.S. dollar.
- Strong export demand boosted factory output in Japan 4.0% in September, the fourth monthly increase.
- France’s finance minister said the country’s most recent lockdowns could cause a 15% drop in economic output.
- Germany’s finance minister said economic activity in Europe’s largest economy will not get back to pre-pandemic levels until 2022.
- Employment in Brazil grew by a higher-than-expected 313,564 jobs in September, a monthly record, fueled by aggressive government stimulus.
- China is giving out experimental COVID-19 vaccines to high-risk citizens, including those traveling abroad for school.
- Air traffic in Europe saw little improvement in the third quarter:
- Amazon launched an “eco-friendly” shopping platform for European customers where products include household goods with sustainable credentials.
- With an official COVID-19 death count exceeding 90,000 in Mexico, Mexicans face a muted and somber Día de Muertos (Day of the Dead) on Sunday, a day set aside to celebrate passed loved ones. The government is closing cemeteries and discouraging social gatherings.
Our Operations
- We bid our M. Holland families in the U.S. a safe Halloween and extend best wishes to our Mployees in Mexico for the Día de Muertos celebration.
- Reminder: Daylight saving time takes effect this Sunday, November 1, at 2:00 a.m.
- To access 3D Printing training, order parts and seek technical assistance, visit our online resource.
- Market Expertise: M. Holland offers a host of resources to clients, prospects and suppliers across nine strategic markets. To arrange a videoconference or meeting with any of our Market Managers, please visit our website.
Thank you,
M. Holland Company
We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.