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Second Chinese City Bars Residents From Leaving Their Homes, Apple Closes All Offices & Stores In China

Second Chinese City Bars Residents From Leaving Their Homes, Apple Closes All Offices & Stores In China

Since our last update Friday evening, the situation on the ground in China has reportedly gone from bad to worse. The true extent of Beijing’s ‘quarantine’ has been exposed – and not just the ridiculously oppressive tactics exercised on sick people simply out trying to buy food so they don’t starve, but the even more bizarre notion that the WHO has decided to try and validate Beijing’s response when all evidence suggests that public relations is and always will be Beijing’s No. 1 concern.

By most recent count, total cases have eclipsed 12,000, while confirmed deaths inside China have hit 259. More than 100,000 people are still under observation, as we reported last night. The 46 new deaths announced last night (Saturday morning in China) was the largest daily death toll (that was the total from Friday) since the start of the crisis.

To that end, a report reportedly signed by hundreds of doctors blaming the Communist Party’s leadership for waiting a month to inform the Chinese public and the international community that the virus could spread from human-to-human contact. The leadership was apparently aware of this fact as early as mid-December, yet they actively concealed it until the situation started getting out of hand and cases were being confirmed in neighboring countries.

China’s finance ministry has finally announced that it’s going to lift import taxes on American-made medical products needed to help combat the outbreak (it’s interesting how it took them nearly – checks notes – two months since the start of the outbreak to lift the trade-war tariffs).

ABC News is the latest American media outlet to collect footage from Wuhan via drone. The haunting footage clearly shows the scope of the lockdown. An entire city as big as New York, with almost nobody outside or in the streets.

…click on the above link to read the rest of the article…

Protests Banned Across India After All Hell Breaks Loose

Protests Banned Across India After All Hell Breaks Loose

Tens of thousands of people in at least 15 cities across India Thursday defied a government ban on protests after violent demonstrations last week sent the country into chaos following the passage of the Citizenship Amendment Act (CAA), reported Bloomberg

CAA is a measure that the Modi government passed into law last Wednesday that allows amnesty to only non-Muslim illegal immigrants from Pakistan, Bangladesh, and Afghanistan. The result of the controversial new citizenship law considered by many to be discriminatory against Muslims led to violent protest late last week and through the weekend. 

Christians, Buddhists, Sikhs, Jains, and Parsis from the three eligible countries can now receive citizenship if they have illegally entered India though Muslims from the same countries cannot. 

The protest ban is a police order that prohibits more than four people from assembling. Still, tens of thousands of people ignored the government’s call to stand down and have been demonstrating this week, especially in regions of Bangalore, Hyderabad, Patna, Chandigarh, and Delhi.

Hundreds of people have been arrested in parts of India as authorities impose internet blackouts in an effort to end mass protests against a controversial citizenship law that has rocked the country for the past week https://reut.rs/34xlZUg

Telecom companies and internet service providers in high protest regions shut down data service this week, likely on government orders, to squash coordination efforts of organizers who were responsible for assembling thousands of people into the streets via social media. 

While Thursday’s protests have been relatively calm – here’s what happened last weekend: 

…click on the above link to read the rest of the article…

The Third Wave Of Globalization Has Ended

The Third Wave Of Globalization Has Ended

The global economy is certainly at crossroads. Protectionism and nationalism, a well-matched marriage of global chaos at the moment, has threatened to end the third wave of globalization that began in the late 1980s. 

Capital Economics has published a compelling research note, titled “The end of globalization,” specifying how 150 years of globalization could’ve put in a significant peak in the last several years, all thanks to President Trump’s trade war with China. 

The third wave of globalization began in the late 1980s, mostly driven by technological advancements and shifting labor and capital around the world to the most cost-effective regions. 

While the Western hemisphere consumed for three decades, the Eastern hemisphere manufactured the goods (which produced rising inequality in the West and thus how protectionism and nationalism were sparked), but the status quo of how supply chains are organized around the world could be changing as world trade volumes have hit a significant wall. 

U.S. Economy Grew at 1.9% Pace in Third-Quarter

In terms of the Elliott wave principle, a third wave eventually gives out to a corrective fourth wave. Capital Economics believes the world is headed towards a period of de-globalization, or as history will call it a fourth corrective wave.  

“It is possible that this is just a temporary hiatus and that an unforeseen technological breakthrough will trigger a new wave of globalisation. But such waves are rare. In fact, there are several reasons – even before we consider the trade war – why globalisation has peaked. First, all the major steps to integrate the global system have been taken. Second, advanced manufacturing techniques mean that the location of manufacturing no longer hinges on where labour costs are cheapest. Third, complex supply chains have reached their limit. Fourth, China is unlikely to open up its capital markets significantly.

 …click on the above link to read the rest of the article…

Did The Nasdaq Bubble Just Burst?

Regular readers will recall when back in March, Bank of America cautioned that after the tech bubble in 2000, the housing bubble in 2006, we were witnessing the third biggest bubble of all time: the e-Commerce bubble.

Well, after several weeks of sharp volatility which has hammered tech stocks, slammed momentum trades and hurt growth factors, the tech sector is once again sharply lower after hours largely on the back of disappointments from Google and Amazon, with the  ETF which tracks the Nasdaq 100 dropping about 2%, and threatening to slide back into a bear market.

The reason for this latest weakness in the QQQs may be that investors are finally realizing that the latest Nasdaq bubble may have popped, if for no other reason than what is shown in the Bloomberg chart below: namely revenue growth at the two e-commerce titans, Google and Amazon, appears to have finally peaked.

Granted, the decline is not in revenue but in revenue growth, however when investors are already beyond skittish about peak earnings, a slowdown in the second derivative may be all they need to sell now and ask questions later. Which may explains why FANG stocks are all sharply lower after hours as the market begins to reasses just how much longer the “e-commerce bubble” as defined by Bank of America has left before it pops…

Olduvai IV: Courage
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Olduvai II: Exodus
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