Fewer Production Launches Expected This Year – IPC

An IPC survey of 101 companies found that 22 percent expect the coronavirus to result in fewer new product introductions this year. Supply Shock On average companies are reporting a five-week delay on receiving component shipments from their suppliers.  Around 50 percent of respondents don’t expect business to return to normal until July. Delays on … More Fewer Production Launches Expected This Year – IPC

Waiting For The Rebound, Rationality Shall Prevail

The U.S. stock market was an accident waiting to happen as valuations were historically excessive before the coronavirus struck.  Moreover,  markets are very distorted due to all the government intervention and the Federal Reserve’s extraordinary monetary policy since the Great Financial Crisis (GFC).   The traditional economic signals extracted from the financial markets are no longer … More Waiting For The Rebound, Rationality Shall Prevail

China Smart Phones Sales Fall 54.7% In February

After locking down large parts of the country to prevent the spread of the coronavirus, total mobile phone sales fell 54.7% to 6.34 million down from 14 million in February 2019.  It was also the lowest level for February since at least 2012 when China Academy of Information and Communications Technology showed (CAICT) started publishing … More China Smart Phones Sales Fall 54.7% In February

Oil Prices Set To Collapse

The Saudi-Russian Oil War is going to cause crude oil prices to collapse. Saudi Arabia plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to the collapse of its OPEC+ alliance with Russia. …“This is going to get nasty,” said Doug King, a hedge … More Oil Prices Set To Collapse

Auto Sales In China Down 80% In February

Auto sales in China, the world’s largest passenger car market, fell 80% in February because of the coronavirus epidemic, one of the country’s industry associations said on Wednesday. The China Passenger Car Association (CPCA) said in a statement that China’s overall passenger car sales dropped 80%, without giving a full sales figure for the month. … More Auto Sales In China Down 80% In February

China’s Manufacturing PMI Falls To 35.7 From 50.0, Services To 29.6

Those are some ugly numbers and the lowest on record.  Not totally unexpected though much worse than anticipated.  The February print came in much lower than the median forecast of 43 by economists surveyed by the Wall Street Journal. China’s official manufacturing PMI dropped to 38.8 in November 2008 at the start of the global … More China’s Manufacturing PMI Falls To 35.7 From 50.0, Services To 29.6

Tracking China’s Recovery With Alternative Data

Using YoY percentages to gauge economic activity, the Feb 26 median of intracity travel among China's 50 largest cities was down 33% from 2019, and down 43% from 2020 pre-LNY. pic.twitter.com/A9T7ZdOA3i — Exante Data (@ExanteData) February 27, 2020 Alternative data is increasingly being used as a way to get an edge on financial and commodity … More Tracking China’s Recovery With Alternative Data

Electronics Manufacturers Face Delays In Product Shipments

The IPC is reporting that electronic manufacturers could face up to five-week delays in product shipments due to the supply chain shock caused by the coronavirus.  Shipping delays from China and other countries are already having a negative impact. The IPC said 65% of manufacturers report their suppliers expect an average of a three-week delay.  … More Electronics Manufacturers Face Delays In Product Shipments