Keep On Rockin’ In The Free World

“No warning on earth can save people determined to grow suddenly rich.” – Lord Overstone

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Coronavirus Spreading To Heart of China Manufacturing

Coronavirus scare starting to hit big manufacturing cities and is definitely going to have a much bigger effect on the global economy.   Shantou is one of China’s “Santa’s Workshop” with a huge toy manufacturing base in the Guangdong province.

Guangdong is the most populous province of China and the 15th-largest by area. Its economy is larger than that of any other province in the nation and the 6th largest sub-national economy in the world with a GDP size of 1.47 trillion US dollars (9.73 trillion Chinese yuan) in 2018. — Wikipedia

China is the world’s largest toy manufacturer, producing around 70 percent of the world’s supply.  Most of China’s exported toys are produced by OEMs who manufacture for foreign brands.  China has numerous toy industry clusters along its affluent east coast. Guangdong province alone produces over half of the world’s toys, with the cities of Dongguan, Foshan, Shantou, and Shenzhen leading the way.

Watch Hasbro and Mattel stock on Monday morning open.

The following is a good primer on the manufacturing clusters in the Guandong province, which includes Shantou.

 

Shantou

The section on Shantou starts at about 7:40 minutes in.

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Panic Spreads In The Twitterati

The following Tweet is startling.  Dr. Feigl-Ding is from Harvard.

Make sure to watch the video we posted earlier for background on defining R0.

https://twitter.com/drericding/status/1220919589623803905?s=21

 

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Global Auto Sector Hit Hard By Coronavirus

By Taleb’s pure definition, the Coronavirus is a true “Black Swan.”

The first cases of the pneumonia-like coronavirus were reported in Wuhan, China on Dec. 31, 2019. Since then, the virus has spread to various other countries, including Thailand, Japan, the Republic of Korea and the United States.

Wuhan is one of China’s “Motor Cities” and home to numerous auto plants supplying the world’s largest market for cars.

General Motors (GM), Nissan (NSANF), Renault (RNLSY), Honda (HMC) and Peugeot owner PSA Group (PUGOY) are among several companies that have large manufacturing plants in Wuhan — ground zero of the outbreak.  GM partners with SAIC and Dongfeng Motor Corporation, one of the country’s largest auto groups, with their 6,000 employee facility in Wuhan making up about 10% of GM’s total workforce in China.

Renault sold nearly 180,000 vehicles in China last year, or about 5% of its global car sales. It manufactures its  SUVs — the Kadjar and Koleos 2 models — at the Wuhan plant.

Honda’s Wuhan JV contributed about 11% to the group’s revenue for the year to March 2019 and accounted for the majority of its Asian automobile revenue.  The company opened a third plant in Wuhan in April, according to a press release.

OEM_Locations in China

 

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Very Informative Update On Coronavirus

 

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What Is Coronavirus?

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Paul Tudor Jones Interview

I worked for one of the greatest global macro traders of all-time and almost went to work for this one.  PTJ is the best.

 

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QOTD: Did Boomers Burn Down The House?

QOTD = Quote of the Day

It’s kind of stunning how Time Magazine’s Person of the Year, a “very angry” 17-year old Swedish teenage girl diagnosed with Asperger syndrome, obsessive-compulsive disorder (OCD), and selective mutism, can trigger the President of the United States,  many of my old white male friends,  and much of the Twitterati.  

How low must we go?

She embodies the growing anger of the younger generation, which could culminate in a huge 2020 surprise,  toward baby boomers for bequeathing them a burning, white-hot world full of carbon and, among others, a $300 trillion-plus in global debt.   I would be pissed-off at that kind of inheritance.

Good luck, by the way,  having Greta & Co. bailout and pay your public pensions.

“act as if you loved your children above all else.”  – Greta Thunberg

 

Greta

Read the cover story at Time here.

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The Happiest Places On Earth

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The Black Swan Chart Of 2020

CNN_Voter Turnout Poll

 

The surprising outcome of the 2020 presidential election may be,

OK, Boomer.  It’s time to pass the torch of leadership to a new generation.   

The younger generations dwarf the boomers in terms of sheer numbers but they have a habit of not voting.   They may be changing, however, as it did in the 2018 midterm.

If the CNN chart holds and plays out, the 2020 presidential election is going to be nothing less than stunning.    The pollsters are going to be way off the mark once again.

The national polls were pretty much spot on in 2016 with Clinton taking around 2-3 percent of the national vote.   Their models blew it by underestimating the state-level turnout rates of certain voting groups.  They hadn’t modeled such a rush of first-time voters coming out of Appalachia, for example.

79 Percent Increase In 18-29-Year-Olds In 2018 Midterm

Look at the charts that follow, which show younger voters, such as the 18-29-year-old cohort group increasing their turnout by 79 percent in 2018 versus the 2014 midterm, which, no doubt, helped contribute to the Blue Wave and the Democrats taking back the House in a big way.

Voter_Turnout_By Age

Source:  USEP

The 2016 election was also the first election where the younger generations eclipsed the number of boomer voters.

Pew_voters

If the CNN chart is even close to reality in November, there is going to be another huge surprise on the first Tuesday night in November.

America’s Two Roads Diverged 

It doesn’t take a Ph.D. in political science to figure out which way it will break.  We believe it’s pretty safe to say the governing class in Washington will have a lot less old white males at the same time next year.

Even The Russians Are Concerned 

The last time the U.S. had a 70 percent voter turnout rate in a presidential election was in 1900 when William McKinley beat William Jennings Bryan by 51.6 to 45.5 percent in the popular vote and 292-155 in the electoral college.

The Russian military, who interfered attacked the 2016 presidential election appears concerned about a large turnout and is gearing up.

Russia

The federal government warned state election officials Thursday it suspects Russia my focus on voter suppression as a means to interfere in the 2020 presidential election. 

The joint FBI and Department of Homeland Security document, obtained by CNN and marked For Official Use Only, is titled “Russia May Try to Discourage Voter Turnout and Suppressing Votes in 2020 US Election.”

It warns of three potential ways the Russian government “might seek to covertly discourage or suppress US voters from participating in next year’s election.”

Russia may try to recruit Americans to protests and intimidate voters, sow discord online within political parties and try to hack voter registration sites or knock them offline, the report warns.  –  CNN, Oct 2019

 

Voter Turnout Poll_1

Voter Turnout Poll_2

 

Brext_3

 

 

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