KTFA --- Samson: Corona appearance tax in Wuhan … world factories flee China

by **Ponee** Sun Apr 26, 2020 10:44 pm

Samson: Corona appearance tax in Wuhan … world factories flee China
25th April, 2020

The emerging Corona Virus crisis affected all aspects of life, but the economy sector was most affected by the paralysis that afflicted it, after the epidemic demonstrated the scale of global dependence on China in production and manufacturing operations, which prompted a number of governments to provide financial support to companies, To move its factories from China

Last February, closing orders in China reached their climax, which meant that many international companies found themselves without factories to produce their products, such as clothing, electronics and others, which highlighted the world’s dependence on China in the field of manufacturing, and the need to take steps to prevent a recurrence of such a scenario in The future, according to a report by the specialist Quartz website

To make matters worse, when the “Covid-19” epidemic struck different countries of the world, major countries found themselves in great trouble, when they discovered that they were unable to manufacture medical equipment and masks locally, because they supported those operations for China long ago, which is what happened With the United States. To ensure similar pressure does not fall again, some countries have begun to provide financial incentives for companies to move manufacturing operations outside of China and build more flexible supply chains

In India, the Prime Minister’s Office is working on a plan that will provide capital-related benefits to electronics and medical device manufacturers, so that production be moved out of China, either by returning to India, or by following a more diversified manufacturing base, taking place in different locations.   “Many countries are now keen on diversifying their sectors, sites of manufacturing operations … there will be a shift,” a government official told the Economic Times. The Indian government has already started its efforts, as it has contacted more than 100 companies and is looking to expand the offer to other sectors as well, according to the “Quartz” website

As for Japan, it allocated 2.2 billion dollars earlier this April to help its companies transfer manufacturing operations from China. About   $ 2 billion has been allocated to companies that will return production to Japan, and the remainder will be allocated to companies that will move it to another location. This came after Japanese Prime Minister Shinzo Abe called, last March, to return “more complex” production operations to Japan and to distribute other production operations in Southeast Asia. Iris Ohamahama, a consumer goods maker, is set to become the first company to receive support when it begins producing medical masks, including the necessary raw materials, in Japan

In the United States, no similar plans have yet been announced, but Larry Kudlow, a senior economic advisor to President Donald Trump’s administration, has announced his support for such a move, in an interview with Fox Business

“As far as policies of repatriation companies are concerned, we can do a lot of things,” he said, suggesting that the United States pay the full costs of companies moving factories, equipment and intellectual property from China to the United States

It is reported that breaking dependence on China in the production sector will not be easy, because reorganizing supply chains will be very expensive, and because China’s industrial infrastructure is very advanced

But even before the Corona epidemic appeared, many multinationals were transferring their manufacturing operations from China, given the ever-rising costs in China. And the trade war between the United States and China complicated matters for those exporting from China to the American consumer market. However, a large-scale shift by companies to move manufacturing operations to their “home” is unlikely. And the “Quartz” website indicated that companies can transfer the production of important products or goods related to health and national security

But for other products, companies may move them to other less expensive locations in Asia or countries close to their main markets   LINK

Samson: OPEC expects $ 40 a barrel of oil in the second half
26th April, 2020

OPEC President, Algerian Energy Minister Mohamed Arqab, said on Sunday that the organization expects the level of oil prices at $ 40 a barrel by the second half of this year
This came, in an interview with Minister Mohamed Arqab, with Algerian state radio
Arqab explained that oil prices will rise during the coming May and June to an average of $ 35 a barrel, in conjunction with the implementation of an agreement to reduce production

And two weeks ago, the (OPEC +) alliance agreed to cut oil production by 9.7 million barrels per day, starting from May next for two months, in an agreement that was described as the largest historic production cut

The reduction in production will be reduced to an average of 8 million barrels per day, from next July until the end of 2020, followed by an agreement to reduce production cuts to 6 million barrels per day, beginning in early 2021 until April 2022

The Algerian Energy Minister indicated that the markets started to give positive signals in the past few days, after the big downturn in the middle of last week

Erqab justified his expectations of the start of price recovery, in addition to the agreement to reduce production, by quarantine measures imposed by the Corona virus in several countries, including China and Europe

Algeria holds the rotating presidency of the Organization of Petroleum Exporting Countries, until the end of December   LINK

************
Samson: The Washington Post: North Korea terrified amid rumors of the country’s leader’s death

18:09 – 04/26/2020

The Washington Post reported that there are indications that a state of terror prevails in North Korea’s capital, Pyongyang, with the disruption of train traffic in the country, amid rumors of the death of the country’s leader, Kim Jong Un.

The American newspaper quoted its own sources as helicopters flying at low altitudes over Pyongyang, while citizens rushed to shops, in addition to the disruption of train traffic inside the country and with China.

The American newspaper said today, Sunday, in an article written by its head of office in the Chinese capital, Beijing, Annafield, that the mysterious disappearance of the North Korean leader from the spotlight recently echoed not only around the world but also in the capital of Pyongyang, where supporters of the pro-regime elite wonder about the extent of Unconfirmed allegations that Kim is about to die or have died are true.

The article pointed out that the people of Pyongyang rushed to the shops to acquire all available goods, ranging from laundry detergent and rice to electronic devices and spirits.  LINK

************
04.26.2020