Feb 092020
 


Dorothea Lange Play street for children. Sixth Street and Avenue C, NYC June 1936

 

Authorities Order Foxconn To Keep Chinese Facilities Closed (AI)
China To Stagger Back To Work As Coronavirus Deaths Surpass SARS (R.)
In-Hospital Infection Blamed In Wuhan Hospital (NHK)
Coronavirus Outbreak Has Affected 4 Different Cruise Ships (H.)
Still No Port For Cruise Ship Westerdam (NHK)
Five Britons Contract Coronavirus In French Ski Resort (R.)
Coronavirus Brings China’s Surveillance State Out Of The Shadows (R.)
Coronavirus Threatens The Chinese Communist Party’s Grip On Power (SCMP)
Yesterday’s Gone: Iowa Was Waterloo for Democrats (Taibbi)
The Billion-Dollar Disinformation Campaign to Reelect the President (Atl.)
A Stock Market Boom Is Not The Basis Of Shared Prosperity (Palley)
Argentina Won’t Repay IMF Debt Till Recession Over – VP Kirchner (R.)

 

 

Late last night in my present timezone, CET, initial new coronavirus numbers came out and everyone said they meant the virus has now killed more people (805-806) than SARS. Everyone except for SCMP which cited a WHO number of 813 SARS deaths (they still haven’t figured that out after 17 years). And then, wouldn’t you know, when I got up in the morning, SCMP had revised their new deaths number to … exactly 813. If I weren’t born so wonderfully gullible I would ask myself something.

Global death toll for new coronavirus hits 805, exceeding that of SARS

The global death toll from the new coronavirus is now at 805, higher than that of SARS. Hubei province reported Sunday morning that there were 81 additional deaths, bringing the total number of fatalities in the mainland to 803 so far. The global death toll for the new coronavirus currently stands at 805, including one death in the Philippines and another in Hong Kong. That compares to the SARS outbreak which killed at least 774 people and infected 8,096 people worldwide in 2002 and 2003, according to data from the World Health Organization.

NOTE: SARS deaths took 9 months. This epidemic is just 1-2 months old.

China’s Hubei reports 81 deaths, global total just short of WHO’s SARS figure

China’s Hubei province, the epicentre of the novel coronavirus epidemic, reported 81 new deaths from the disease on Saturday, bringing the province’s total fatalities from the outbreak to 780. Total deaths globally stood at 805, just short of the 813 total fatalities attributed to the deadly Sars epidemic of 2002-2003 by the World Health Organisation. The provincial health authorities also reported 2,147 newly confirmed cases of the disease in the past 24 hours. This brings the total cases in Hubei to 27,100. These figures compared to the reported deaths and newly confirmed cases of 81 and 2,841, respectively, on Friday.

 

 

• 813 deaths, up from 724 yesterday. 89 new deaths is a new record again.

• Confirmed new cases rose to 37,198, an increase of 2,652 overnight

• 3,916 suspected new cases, bringing the total to 28,942 suspected cases.

 

And this little map looks promising, but I do have questions about it:

 

 

Questions like: what are the effects of the ever wider and ever more stringent lockdowns on this? Do fewer people get infected if they’re all locked up in their homes? Or are infected people also harder to find when they’re behind closed doors? Would families volunteer to deliver potentially infected family members to authorities, or would they wait until they’re as good as dead?

I found this interesting as well: “Wuhan has 49 crematoriums, which can each burn 5 bodies every two hours. They’ve been working 24 hours a day for 17 days now. 49 x 17 x 24 x 5/2 = 49,980 bodies.”

 

Still, as I said yesterday, it’s really all about Monday morning, when the economy is supposed to start “working” again. On Friday, Tesla said its Shanghai plant would re-open tomorrow morning. But then today, the government ordered Foxconn’s Shenzhen factories to remain closed. Will Tesla really open?

As I also said somewhere yesterday, “restarting” the economy where 100s of millions are under some form of lockdown now, means shoving all those millions into planes, trains and subways to bring them to plants where they spend 8-10-12 hours in close proximity to potential virus carriers. Thousands more petri dishes.

I’ll believe it when I see it.

 

 

Well, that’s my question: “No-one wants to bear the responsibility for restarting work at this critical moment.”

Authorities Order Foxconn To Keep Chinese Facilities Closed (AI)

As authorities attempt to stem the spread of the coronavirus in China, Foxconn did its part to help on Friday by telling staff not to return to work on February 10, following the Lunar New Year. Rather than resuming operations on the originally anticipated return date, the assembly partner told its tens of thousands of employees to stay away from the Shenzhen plant. A report by Nikkei claims the calling off of production has been further halted by the Chinese authorities, who have told Foxconn not to reopen. People familiar with the matter advised the factory was subject to on-site inspections by public health officials, which found there were “high risks of coronavirus infection” if it did reopen.

One internal memo about the inspection and government-ordered closure mentioned “Violation of epidemic prevention and control could potentially face the death penalty.” Part of the problem is the production facilities use central air condition and have a high density of workers, conditions ripe for viral transference. “The local governments do not want to risk the potential virus spreading in such a labor-intensive working environment,” a source told the report. “No-one wants to bear the responsibility for restarting work at this critical moment.” On Friday, Foxconn took the extra step of canceling flight bookings for employees from Taiwan returning from their home country to China between February 7 and February 14.


The measure was allegedly announced by Chairman Young Liu in a video conference that morning, who also confirmed the company’s Zhengzhou complex would need to be evaluated by the local government before it could be reopened. Foxconn has previously confirmed the coronavirus will affect production, and it is allegedly affecting Apple’s AirPods along with other products it makes, such as iPhones.

Read more …

What will stocks do?

China To Stagger Back To Work As Coronavirus Deaths Surpass SARS (R.)

China raised the death toll from the coronavirus epidemic to 811 on Sunday, passing the number killed globally by the SARS epidemic in 2002/2003 and raising anxiety among people preparing to return to work after an extended Lunar New Year break. Struggling to contain the spread of the disease, authorities had told businesses to tack up to 10 extra days onto holidays that had been due to finish at the end of January as the rising numbers of dead and infected cast a pall over the country. Many of China’s usually teeming cities have almost become ghost towns during the past two weeks, as the Communist Party rulers ordered virtual lockdowns, cancelled flights, closed factories and kept schools shut.


The sight of an economy regarded as a workshop to the world laid so low has also taken a toll on international financial markets, as shares slumped and investors switched into safe-havens like gold, bonds and the Japanese yen. Even on Monday, a large number of workplaces will remain closed and many white-collar workers will continue to work from home. The new deaths on Saturday reached another daily record at 89, data from the National Health Commission showed, pushing the total well over the 774 who died from SARS, or Severe Acute Respiratory Syndrome.

Read more …

“..around 40 percent of the patients with the new coronavirus they have treated may have contracted the illness at their hospital.”

In-Hospital Infection Blamed In Wuhan Hospital (NHK)

A team of medical professionals at a hospital in Wuhan says that around 40 percent of the patients with the new coronavirus they have treated may have contracted the illness at their hospital. The team works at a Wuhan University hospital in the Chinese city at the heart of the outbreak. They published their findings in the Journal of the American Medical Association on Friday. The study says 138 cases were confirmed at the hospital between January 1 and 28. Of those, 41 percent, or 57 people, were medical staff or patients who were initially hospitalized for other reasons.


The study found that one patient in the surgical department may have infected more than 10 members of hospital staff. It says that while patients had symptoms such as high fever and sense of fatigue, researchers revealed that 10 percent either had atypical symptoms such as diarrhea, or complained of nausea. It concludes that it was difficult to screen patients with symptoms not previously associated with the virus. The team says that an important feature of the new coronavirus is the rapid human-to-human transmission among people in close contact.

Read more …

I think the ship off Hong Kong was freed today. The Yokohama one with 61 infected won’t be so lucky.

Coronavirus Outbreak Has Affected 4 Different Cruise Ships (H.)

Cruises are, for the most part, meant to elicit feelings of relaxation—literally floating away from your landlocked responsibilities for a few days. But, for thousands of passengers aboard at least four different cruise ships, their vacations quickly turned into nightmare scenarios. As of Friday, four major vessels—the Diamond Princess, Westerdam, World Dream, and Royal Caribbean’s The Anthem of the Seas cruise ships—have been impacted by the 2019 novel coronavirus (2019-nCoV), aka the Wuhan coronavirus. Most affected by the outbreak is the Diamond Princess cruise ship, currently quarantined off the coast of Yokohama, near Tokyo.

The ship was docked Tuesday after a former passenger tested positive for the coronavirus. Since then, 61 passengers of the 3,700 people on board have tested positive for the virus, reports CNN. The ship’s quarantine is expected to last until at least February 19. The two other ships—the Westerdam, currently in search of a port in the East China Sea; and the World Dream, docked in Hong Kong—have also come to a halt due to fears of coronavirus, per CNN. No current or former passengers on the Westerdam have been reported as having the coronavirus, nor have any current passengers on the World Dream, though eight former passengers of the cruise ship have been confirmed as having the illness.


And most recently, on Friday, the Royal Caribbean’s The Anthem of the Seas was docked near New York City, at a port in Bayonne, New Jersey, where 27 passengers were screened for the coronavirus, according to CNN. Four of those passengers were sent to the hospital for further investigation, while the other 23 were cleared. In a statement, per CNN, Royal Caribbean confirmed that, like airlines, they too are working to help limit the spread of the coronavirus. “We continue to work in close consultation with the CDC, the WHO, and local health authorities to align with their guidance and ensure the health and wellbeing of our guests and crew.”

Read more …

Sailed on Feb 1. Now it’s like the original Flying Dutchman ship.

Still No Port For Cruise Ship Westerdam (NHK)

The operator of the cruise ship Westerdam is searching for a port to call at after being rejected by destinations including Japan amid fears of the spreading coronavirus. The US-based Holland America Line said in a statement on Friday that the ship is “currently sailing on a southwesterly course off the coast of Taiwan.” The firm says it is positioning the ship “for access to potential port locations.” The Westerdam departed Hong Kong on February 1 with more than 2,200 passengers and crew onboard. Taiwan denied it permission to call, citing a suspicion of coronavirus infection among the passengers. Japanese authorities followed suit, preventing it from entering a port in the southwestern prefecture of Okinawa. Holland America Line said in the statement that “The ship is not in quarantine” and there is “no reason to believe there are any cases of coronavirus on board.” It added the ship has sufficient fuel and food, and passengers are provided with free internet and phone access.

Read more …

Is this the first cluster than doesn’t involve Chinese people? Note that the original infection came from Singapore, not China.

Five Britons Contract Coronavirus In French Ski Resort (R.)

Five British nationals including a child have been diagnosed with the new coronavirus at a French mountain village, and health officials said they were checking who else might have been exposed, including at local schools. In total, 11 people, including the five who tested positive, have been hospitalized in southeastern France and were being examined, the French health ministry said on Saturday, adding that none were in serious condition. The group of Britons included holidaymakers and a family currently residing in the Alpine village and ski resort, Les Contamines-Montjoie. They shared neighboring apartments in a chalet and temporarily hosted a British man believed to have contracted the virus at a business congress in Singapore before his short visit to France in late January, the ministry added.


Two schools would be shut next week for checks, regional health official Jean-Yves Grall said, after it emerged that the nine-year-old who tested positive had attended lessons and French classes in different establishments. Two other children were also part of the group of 11 now in hospital in the cities of Lyon, Saint-Etienne and Grenoble, and they had been schooled in the area too, according to Etienne Jacquet, mayor of Les Contamines-Montjoie. Some parents in the village, nestled in the mountains close to the Mont Blanc peak and the Swiss city of Geneva, said on Saturday they had received little information so far and were being cautious.

Read more …

Thermal cameras, cameras that see through face-masks, a good crisis to step up state control.

Coronavirus Brings China’s Surveillance State Out Of The Shadows (R.)

When the man from Hangzhou returned home from a business trip, the local police got in touch. They had tracked his car by his license plate in nearby Wenzhou, which has had a spate of coronavirus cases despite being far from the epicenter of the outbreak. Stay indoors for two weeks, they requested. After around 12 days, he was bored and went out early. This time, not only did the police contact him, so did his boss. He had been spotted near Hangzhou’s West Lake by a camera with facial recognition technology, and the authorities had alerted his company as a warning.

“I was a bit shocked by the ability and efficiency of the mass surveillance network. They can basically trace our movements with the AI technology and big data at any time and any place,” said the man, who asked not to be identified for fear of repercussions. Chinese have long been aware that they are tracked by the world’s most sophisticated system of electronic surveillance. The coronavirus emergency has brought some of that technology out of the shadows, providing the authorities with a justification for sweeping methods of high tech social control. Artificial intelligence and security camera companies boast that their systems can scan the streets for people with even low-grade fevers, recognize their faces even if they are wearing masks and report them to the authorities.

If a coronavirus patient boards a train, the railway’s “real name” system can provide a list of people sitting nearby. Mobile phone apps can tell users if they have been on a flight or a train with a known coronavirus carrier, and maps can show them locations of buildings where infected patients live. Although there has been some anonymous grumbling on social media, for now Chinese citizens seem to be accepting the extra intrusion, or even embracing it, as a means to combat the health emergency. “In the circumstances, individuals are likely to consider this to be reasonable even if they are not specifically informed about it,” said Carolyn Bigg, partner at law firm DLA Piper in Hong Kong.

[..] Facial recognition firm Megvii said on Tuesday it had developed a new way to spot and identify people with fevers, with support from the industry and science ministries. Its new “AI temperature measurement system”, which detects temperature with thermal cameras and uses body and facial data to identify individuals, is already being tested in a Beijing district. SenseTime, another leading AI firm, said it has built a similar system to be used at building entrances, which can identify people wearing masks, overcoming a weakness of earlier technology. Surveillance camera firm Zhejiang Dahua says it can detect fevers with infrared cameras to an accuracy within 0.3ºC.

Read more …

Wishful thinking?

Coronavirus Threatens The Chinese Communist Party’s Grip On Power (SCMP)

China missed the best opportunity to contain the spread of the virus because officials at first delayed – or possibly covered up – the release of information and were slow in taking precautionary actions. The first patient who experienced symptoms was found on December 1, 2019, suggesting the origin of the disease was even earlier. And there has been some evidence of human-to-human transmissions since late December, with more emerging in early January when several medical workers were infected. These vital bits of information were not released to the public in time. Nor was any decisive action taken between early December and January 23, the day Beijing told the world about the severity of the epidemic and declared war on it just two days before the Lunar New Year on January 25.

Lives continued as normal in Wuhan in the week before then. On January 18, the Wuhan government hosted a banquet attended by more than 40,000 families in a bid to set a Guinness world record. On January 20, the municipal government said it was distributing 200,000 free tickets to residents for festive new year activities. Videos show few people wearing face masks in Wuhan before mid-January. Compare that to Hong Kong, where since early January the government has been updating people on the situation daily and holding frequent news briefings.


In terms of human-to-human transmissions, the alarm wasn’t raised until the prominent epidemiologist Zhong Nanshan spoke out on January 20 – nearly 50 days after the first patient was found and three weeks after it was established that human-to-human infections were taking place. Instead of acting against the virus, the government focused on controlling the information. In an effort to underscore the CCP’s determination to crack down on unsanctioned information, the broadcaster CCTV reported on January 2 that Wuhan police had interrogated and warned eight whistle-blowers, frontline doctors, for “rumourmongering” about the epidemic. It seemed all too familiar to 2003, when military doctor Jiang Yanyong defied government rules and risked his own life to break the news about the severe acute respiratory syndrome (Sars) to the international media.

Read more …

“Perhaps all the Democrats need to win the presidency is a Rust Belt millennial who’s gay and speaks Norwegian.”

Yesterday’s Gone: Iowa Was Waterloo for Democrats (Taibbi)

Democratic campaign events have long been more pep rally than discussion, more about the terribleness of Republicans than substance. “They’re so used to events where everyone is rooting for them,” says Redd. “It’s like, ‘No, we’re actually here to challenge you on issues that matter.’” Biden performed surprisingly well all year in polls, but he headed into Iowa like a passenger jet trying to land with one burning engine, hitting trees, cows, cars, sides of mountains, everything. The poking incidents were bad, but then one of his chief surrogates, John Kerry, was overheard by NBC talking about the possibility of jumping in to keep Bernie from “taking down” the party.

“Maybe I’m fucking deluding myself here,” Kerry reportedly said — mainstream Democrats may not have changed their policies or strategies much since Trump, but they sure are swearing more — then noted he would have to raise a “couple of million” from people like venture capitalist Doug Hickey. Kerry later said he was enumerating the reasons he wouldn’t run, though those notably did not include humility about his own reputation as a comical national electoral failure, or because there’s already a candidate in the race (Biden) he’d been crisscrossing Iowa urging people to vote for, but instead because he’d have to step down from the board of Bank of America and give up paid speeches. French aristocrats who shouted “Vive le Roi!” on the way to the razor did a better job advertising themselves.

With days, hours left before the caucuses, there were signs everywhere that the party establishment was scrambling to find someone among the remaining cast members to stop what Kerry called the “reality of Bernie.” But who? Yang said smart things about inequality, so he was out. Tulsi Gabbard was Russian Bernie spawn. Tom Steyer was Dennis Kucinich with money. Voters had already rejected potential Trump WWE opponents like the “progressive prosecutor” (Kamala Harris), the “pragmatic progressive” (John Delaney), “the next Bobby Kennedy” (Beto O’Rourke), “Courageous Empathy” (Cory Booker), Medicare for All can bite me (John Hickenlooper), and over a dozen others.

Former South Bend, Indiana Mayor Pete Buttigieg seemed perfect, a man who defended the principle of wine-based fundraisers with military effrontery. New York magazine made his case in a cover story the magazine’s Twitter account summarized as: “Perhaps all the Democrats need to win the presidency is a Rust Belt millennial who’s gay and speaks Norwegian.”

Read more …

The Trump people meddle in conspiracy theories. The “others” don’t. This is how and why you will lose the election.

The Billion-Dollar Disinformation Campaign to Reelect the President (Atl.)

One day last fall, I sat down to create a new Facebook account. I picked a forgettable name, snapped a profile pic with my face obscured, and clicked “Like” on the official pages of Donald Trump and his reelection campaign. Facebook’s algorithm prodded me to follow Ann Coulter, Fox Business, and a variety of fan pages with names like “In Trump We Trust.” I complied. I also gave my cellphone number to the Trump campaign, and joined a handful of private Facebook groups for MAGA diehards, one of which required an application that seemed designed to screen out interlopers. The president’s reelection campaign was then in the midst of a multimillion-dollar ad blitz aimed at shaping Americans’ understanding of the recently launched impeachment proceedings.

Thousands of micro-targeted ads had flooded the internet, portraying Trump as a heroic reformer cracking down on foreign corruption while Democrats plotted a coup. That this narrative bore little resemblance to reality seemed only to accelerate its spread. Right-wing websites amplified every claim. Pro-Trump forums teemed with conspiracy theories. An alternate information ecosystem was taking shape around the biggest news story in the country, and I wanted to see it from the inside. The story that unfurled in my Facebook feed over the next several weeks was, at times, disorienting. There were days when I would watch, live on TV, an impeachment hearing filled with damning testimony about the president’s conduct, only to look at my phone later and find a slickly edited video—served up by the Trump campaign—that used out-of-context clips to recast the same testimony as an exoneration. Wait, I caught myself wondering more than once, is that what happened today?

[..] Every presidential campaign sees its share of spin and misdirection, but this year’s contest promises to be different. In conversations with political strategists and other experts, a dystopian picture of the general election comes into view—one shaped by coordinated bot attacks, Potemkin local-news sites, micro-targeted fearmongering, and anonymous mass texting. Both parties will have these tools at their disposal. But in the hands of a president who lies constantly, who traffics in conspiracy theories, and who readily manipulates the levers of government for his own gain, their potential to wreak havoc is enormous.

The Trump campaign is planning to spend more than $1 billion, and it will be aided by a vast coalition of partisan media, outside political groups, and enterprising freelance operatives. These pro-Trump forces are poised to wage what could be the most extensive disinformation campaign in U.S. history. Whether or not it succeeds in reelecting the president, the wreckage it leaves behind could be irreparable.

Read more …

How you tie your impression of Trump as a con-man in with the topic is unclear. Today’s bubbles started with Greenspan and Bill Clinton, not Trump.

A Stock Market Boom Is Not The Basis Of Shared Prosperity (Palley)

The United States is currently enjoying another stock market boom. If history is any guide, it may well end in a bust. In the meantime, the boom is having a politically toxic effect. Donald Trump uses it to make the case for his reelection in the fall. But his argument, at a minimum, requires a big leap of faith. Trump’s assertion — that a stock market boom is the basis for shared prosperity — is just that, an assertion. It certainly hasn’t led to any broad-based prosperity. The beneficiaries are the happy few at the top of the U.S. economic pyramid. Anyone who ever read John Kenneth Galbraith’s The Great Crash 1929, his 1954 classic, has run across Galbraith’s idea of the “bezzle.” In addition to Ponzi schemes, Galbraith’s bezzle also captures the dynamic of speculative bubbles.

Those bubbles are a form of fraud we collectively inflict on ourselves. Investors buy in believing they will be able to sell at a higher price, and their purchases drive up prices and attract new investors who hope to jump on the price appreciation band wagon. The bubble continues until belief in ever higher prices is punctured, whereupon buyers evaporate and the bubble implodes. Once again, all feel richer along the way. Today’s stock market increasingly has the smell and feel of another bezzle. That smell is metaphorically rather perfectly reflected in President Trump who has all the integrity of a con man. Better yet, Trump’s business history, in addition to reliance on funding from suspect sources, is marked by serial bankruptcies.


Trump has also managed to use the presidential bully pulpit to cajole the U.S. Federal Reserve into further inflating asset prices by enjoining it to lower interest rates. In addition to directly impacting asset pricing, the Federal Reserve has given a green flag for speculative buying. In that process, it has strengthened beliefs that it stands ready to guarantee stock prices, via the so-called “Powell put.” That put is an amplification of the prior “Bernanke put,” which was in turn an amplification of the “Greenspan put” which launched the Federal Reserve’s commitment to stock prices. To be honest, it did not take much cajoling from Trump as the Federal Reserve has evidently learned little from the past 35 years of serial asset price bubbles.

Read more …

A lesson for Greece.

Argentina Won’t Repay IMF Debt Till Recession Over – VP Kirchner (R.)

Argentine Vice President Cristina Fernandez de Kirchner said on Saturday that the government will not pay “even half a cent” of its debt back to the International Monetary Fund before the country has exited recession. “The first thing we have to do in order to be able to pay is to exit the recession,” Fernandez de Kirchner said at a presentation of her book “Sinceramente” (Sincerely) at Havana’s international book fair. “If there is a recession no-one will pay even half a cent and the way you exit recession is through a lot of state investment.” Argentina needs to restructure $100 billion in sovereign debt with creditors, including part of a $57 billion credit facility that the IMF extended the country in 2018.


Dealings with the IMF are key as Argentina hopes to avoid a default amid a currency crash, steep inflation and a contracting economy. An IMF technical mission is expected in Buenos Aires next week to discuss obligations owed to the fund. Fernandez de Kirchner said Argentina should get a “substantial haircut” on its IMF debt. A leftist and militant Peronist, she has traveled frequently to Communist-run Cuba over the past year to visit her daughter Florencia Kirchner who is undergoing medical treatment there.

Read more …

 

Just one of those timelines where Dean Koontz wrote a book about a Chinese super virus called Wuhan that escaped a secret lab.

 

 

 

The Automatic Earth cannot survive without your support. Please donate.

 

Feb 072020
 


Takeuchi Seiho Bear in snow 1940

 

 

As I said earlier today, I picked up a whole slew of articles on the “coronavirus” through the day yesterday, collected some more today, and then decided not to put them in my daily Debt Rattle news aggregator today because it would have been too much.

I wasn’t trying to focus on number of deaths or cases, interest in that is overblown by now. What I look for is news about the consequences of the “coronavirus” epidemic. See, most people look at the numbers, think that they are lower than they could be, and lower than in armageddon predictions, so we’ll all be alright.

And I’m not saying that we won’t be, never have, I’m saying the numbers are no longer the main story. The story has changed into the effects of the virus on domestic and international policies, and ultimately -especially- on global trade and travel. And those effects have only just started. Just like I said 2 days ago in The Big Lockdown.

Initially, the effects, the fallout, from the epidemic, will appear minor, companies will be able to switch things a little and do their thing. But at some point that changes. As I saw somebody say earlier, if even just 1% of your car parts are from China, and you can’t get them anymore, you’re not going to be building a car. The vast majority of carmakers use 30% Chinese parts or more.

And then you also have many thousands of cancelled flights, and cruises, and what has a much bigger impact: shipping of goods to, but of course mostly from, China. Chinese ports are already filing up with items like fruits, but that’s nothing yet. If you put half your country on lockdown, who’s going to service incoming and outgoing ships?

The Lunar New Year is done this Monday, but we know Chinese trains are down 75% of their passengers, and plane travel is off by over 50%. Xi Jinping allegedly told Trump yesterday that “We are fully confident and capable of fighting the epidemic. The long-term trend of China’s economic development will not change”, but how much of that is wishful thinking?

How do you restart an economy that has 400 million people under lockdown, and that sees all westerners leave? Xi must be getting anxious and nervous by now. And renditioning people is not going to do the trick. Ideally, he would convince the rest of the world that the virus is contained and no longer dangerous. No doubt the lowering rates of change in new cases is step one in trying to do that.

Xi would have had it easier if China hadn’t first attempted to wipe the disease under the carpet for 1-2 months. But that would be against longstanding Party lines, as I wrote in The Party and the Virus. Step one is always: “complete denial, not a word”.

And now he doesn’t just have western governments to deal with anymore, there’s also the people (both at home and abroad). Just wait until the first death is recorded in the US, Britain, France or somewhere near. The west will tend strongly towards a lockdown too. Politicians will cry: “it’s too expensive”, but that won’t be people’s priority. Fear will be.

So, three essays so far on the topic, 2019-nCoV, The Party and the Virus and The Big Lockdown, and here goes with lockdown fallout.

 

 

This is like a quarter of the population. 80 million in US terms. Do the math for your own country. 20 million French, 25 million Germans? Wow. Let’s see that one.

400 Million People Are On Lockdown In China As Guangzhou Joins Quarantine

Guangzhou, the capital of China’s southwestern Guangdong Province and the country’s fifth largest city with nearly 15 million residents, has just joined the ranks of cities imposing a mandatory lockdown on all citizens, effectively trapping residents inside their homes, with only limited permission to venture into the outside world to buy essential supplies.

The decision means 3 provinces, 60 cities and 400 million people are now facing China’s most-strict level of lockdown as Beijing struggles to contain the coronavirus outbreak as the virus has already spread to more than 2 dozen countries. That’s more than 400 million people forcibly locked inside their homes for 638 deaths? Just think about that: If there was ever a reason to believe that Beijing is lying about the numbers (and not just because Tencent accidentally leaked the real data), this is it.

Read more …

Saw this yesterday and thought: that’s very extreme. Again, imagine this in your own country or city. What would that take? 100 infections and 2 deaths?

Wuhan Ordered To Round Up All Infected Residents For Mass Quarantine

A senior Chinese official has ordered Wuhan authorities to immediately round up all residents infected with the novel coronavirus and place them in isolation, quarantine camps, or designated hospitals, according to the New York Times. City investigators have also been ordered to go to each home and check the temperature of every resident, as well as conduct interviews with infected patients’ close contacts.


“Set up a 24-hour duty system. During these wartime conditions, there must be no deserters, or they will be nailed to the pillar of historical shame forever,” said Sun Chunlan, a vice premier in charge of leading the CCP’s response to the outbreak. “The city’s authorities have raced to meet these instructions by setting up makeshift mass quarantine shelters this week. But concerns are growing about whether the centers, which will house thousands of people in large spaces, will be able to provide even basic care to patients and protect against the risk of further infection.” -NYT

Read more …

No wedding parties, locked in your home just like those cruise passengers are in their cabins. The idea of switching off elevators so people don’t go out is “brilliant”.

China Imposes Tougher Lockdown Measures

Beijing has banned group dining for events such as birthdays and weddings while cities such as Hangzhou and Nanchang are limiting how many family members can leave home each day. Hubei province, the worst hit by the virus, has switched off lifts in high-rise buildings to discourage residents from going outside. Its capital, Wuhan, has a lack of beds and equipment, one senior city official said. Despite the rapid construction of two hospitals, the volume of patients is causing severe strain. Reports on social media say the Wuhan government is to carry out door-to-door temperature checks on residents.


Human Rights Watch director Kenneth Roth said China had suppressed reports in the early days of the outbreak and clamped down on criticism of its handling of the crisis. “There’s no place for secrecy in fighting an epidemic,” he said. Although he praised Beijing for quickly sharing the DNA sequence of the virus, he attacked the lockdowns policy. “Quarantines of this sort typically don’t work. Quarantines, the kind that public health officials advocate, are much more targeted. They’re aimed at people who have been identified as having the virus,” he said. Mr Roth said there were “huge gaps” in getting people fed, housed and treated. Chinese officials have strongly defended their approach.

Read more …

This morning’s numbers. “We have declared a people’s war against the epidemic through prevention and control..”

And Trump told Xi he would win that war. But only after he closed the borders with a 14-day quarantine even for Americans,

China Reports 73 New Deaths From Coronavirus, 3,143 New Cases

Chinese President Xi Jinping told his US counterpart Donald Trump on Friday that China’s economic development would not be affected by the outbreak, according to CCTV, China’s state broadcaster. CCTV reported that, in a phone conversation with Trump, Xi said the Chinese government and people had put their fullest efforts into containing the outbreak since it had started. “We have adopted the most comprehensive and strictest prevention and control measures through mobilising and rapid responses. We have declared a people’s war against the epidemic through prevention and control,” Xi was quoted as saying. “We are fully confident and capable of fighting the epidemic. The long-term trend of China’s economic development will not change.”

Read more …

It’s either one giant dilemma or very many smaller ones. But I don’t see him solving it before the peak of the epidemic in 2-3 months. What are Chinese workers do in the meantime?

China Faces Dilemma As It Tries To Get Back To Work

China is facing a dilemma as it tries to get back to business after the extended Lunar New Year holiday amid fears that a mass movement of workers across the country will worsen the spread of the deadly coronavirus that has struck nearly 30,000 people. Allowing the workforce to return to their jobs was crucial both for sustaining economic growth and providing support to fight the outbreak, according to Lu Zhengwei, chief economist at the Industrial Bank in Shanghai. “It’s obviously desirable for employers who are now paying rent, salaries and social welfare for their employees, for nothing in return,” he said, adding that most small and medium enterprises in China could only last about a month in the current situation.

After the State Council, China’s cabinet, issued a directive to extend the holiday until last weekend as part of measures to contain the virus outbreak, a number of provinces and municipalities – including Beijing, Shanghai, Zhejiang and Guangdong – pushed back the return to work to this Monday. That extended hiatus of business operations will have an impact on the country’s economy, which has already been battered by the protracted trade war with the United States. Advisory firm Oxford Economics has lowered its growth outlook for China to 5.4 per cent in 2020, compared with 6 per cent previously, according to its chief Asia economist Louis Kuijs. Meanwhile, Tao Wang, China economist at UBS, forecast the country’s first-quarter growth at 3.8 per cent, and 5.4 per cent for the whole year.

[..] Huang Xin, an official with the China Railway Corporation, said about 2 million to 3 million passengers were expected to travel each day from Saturday to Tuesday – only about one-quarter of the normal peak number following the Lunar New Year break. “We will be paying extra attention to return trips of college students and migrant workers,” he said at a press briefing in Beijing. “We will also use big data to adjust our railway capabilities.” [..] Similar arrangements had been made for air passengers, said Yu Biao, an official with the Civil Aviation Administration of China. Yu said the number of flights in China had been halved in the past week, and only 45 per cent of seats had been filled.

Read more …

Mandatory 14-day quarantines for US citizens. What will people do, use their remaining vacation days? Or not go?! I think I know.

China Grows Isolated As Airlines Cancel More Than 50,000 Flights

One by one, air carriers have cut service after demand fell sharply and governments took more drastic measures that they say aim to curb the spread of the disease [..] These steps have left China, the world’s second-largest air travel market after the U.S., more isolated. Airlines in dozens of countries have scaled back service or in the case of U.S. airlines canceled flights altogether to the Chinese mainland and Hong Kong as the coronavirus spreads.

This will drive down airlines’ 2020 revenue and deprive other segments of the travel industry, including hotels and retailers, of high-spending tourists. The outbreak has some travelers exercising more caution with their travel, even for destinations other than China. Many travelers would be inquiring about spring travel during this time of year, said Cindy Guo, who runs Top Travel International in Flushing. “Some people prefer to stay home” because of the virus, she said. The U.S. instituted travel restrictions on Sunday that include requiring returning U.S. citizens who have been in Hubei province — where Wuhan, the epicenter of the virus, is located — to face mandatory, 14-day quarantines.

The Trump administration has ordered self-quarantines for U.S. citizens who have been in other parts of mainland China. Additionally, foreigners who have been in China in the last two weeks, except for immediate family of U.S. citizens and permanent residents and a few others, won’t be allowed in at all. [..]

At stake are more than 165,000 scheduled flights in and out of China between Jan. 29 and March 28 that would affect 27 million travelers, according to data from aviation consulting firm Cirium. More than 54,011 flights, or 28% of the scheduled flights to, from and within China between Jan. 23 and Feb. 4 were canceled, 14% of them the international scheduled flights. Getting around within China is also becoming more complicated, and close to 32% of domestic flights were called off in that period.

Read more …

And of course it’s not just airlines. Shipping is a much bigger driver of the economy. It’s been less than 3 weeks, and goods are getting stranded, Try 2-3 more months and tell me what you find.

Global Shipping Being Hit By The Coronavirus. Now Goods Are Getting Stranded

The arteries of global trade are clogging up. Shipping companies that carry goods from China to the rest of the world say they are reducing the number of seaborne vessels, as measures to stop the spread of the coronavirus crimp demand for their services and threaten to disrupt global supply chains. About 80% of world goods trade by volume is carried by sea and China is home to seven of the world’s 10 busiest container ports, according to the United Nations Conference on Trade and Development. Nearby Singapore and South Korea each have a mega port too.

[..] “This will affect many industries and limit demand for containerized goods transport,” Sand told CNN Business. Everything from cars and machinery to apparel and other consumer staples are shipped in containers, and disruption to the industry could reverberate far beyond China as the country seeks to contain the coronavirus outbreak by keeping factories shut and workers at home. The longer the health crisis lasts, the harder it will be to move goods around the world.

Already, carmaker Hyundai has suspended production at its plants in South Korea because of a disruption to the supply of parts caused by the coronavirus outbreak in China, the company said in a statement. The shutdowns mean that some ships can’t get into Chinese ports, as the loading and discharging of goods slows, said Guy Platten, secretary general of the International Chamber of Shipping, a trade body.

Others are stuck in dock, waiting for workers to return to ports so that construction and repairs can be completed, Platten added. Still more vessels are idling in “floating quarantined zones,” as countries such as Australia and Singapore refuse to allow ships that have called at Chinese ports to enter their own until the crew has been declared virus-free, added Sand. Platten said he knew of at least one crew that is running low on food because their ship has been idled for so long.

Read more …

I so feel for these people. Claustrophobic as hell I am.

Coronavirus Infections Triple On Cruise Liner Quarantined In Japan

Dozens of additional passengers aboard a cruise liner in Japan have tested positive for coronavirus, bringing the total number of infections on the ship to 61 as 3,700 people remain trapped on the quarantined vessel.
Stuck at the port of Yokohama since earlier this week, the ship’s 3,700 passengers and crew face weeks of quarantine as medical workers test for signs of the deadly contagion. The ship is now like a “floating prison,” one passenger said on social media, where haunting images have emerged showing its abandoned halls, once bustling with activity. Of the thousands of passengers on board, 273 have shown symptoms of illness, such as cough and fever, or came in contact with those who have.


All of those passengers have now been tested, Japan’s Health Ministry said, noting the 41 new patients will be transferred to medical facilities in Tokyo, Saitama, Chiba and Shizuoka prefectures, as well as Kanagawa. It remains unclear whether additional cases could arise on the ship, as the novel coronavirus has been found to spread person-to-person, even among those not yet showing symptoms, with a long incubation period. Some passengers already expressed fear that they could eventually end up stuck on the vessel for much longer than 14 days if new infections occur. With the number of infections on the ship tripling on Thursday as health screenings continue, Japan now counts at least 86 cases of the lethal coronavirus nationwide.

Read more …

Welcome! Bring ’em on!

Now the CDC has to figure out who all these people have been in contact with the past 2 weeks and more.

How do they test for asymptomatic carriers? Does the US have enough testing kits? Even if they do, does Britain, does Belgium, France?

And would the US give them away? In China, cities steal each other’s supplies of face masks etc.

Royal Caribbean Ship With 12 Quarantined Passengers Docks In NJ

A Royal Caribbean cruise ship that has 12 passengers quarantined over fears of coronavirus has docked in Bayonne, New Jersey, this morning with ambulances on the scene. The “Anthem of the Seas” arrived in New Jersey just hours ago, at about 6AM, in thick dense fog, according to ABC 6. Several ambulances were on standby at the scene. The passengers in quarantine will all be tested by the CDC, who was also awaiting the arrival of the ship on the scene. The passengers of the ship are all Chinese nationals – many of whom started exhibiting symptoms while aboard the ship, which was coming back from the Bahamas.

Read more …

From planes to ships to automobiles. It’s a small step for man, big step for us all.

The Global Car Industry Is Bracing For A Huge Shock From China /span>

China makes more cars than any other country, and is also the world’s biggest market. When car plants across China shut last month for the Lunar New Year holiday, the industry was already under huge pressure: sales had been falling for two years due to the loss of tax incentives for electric cars and the slowing economy, and officials were expecting an unprecedented third year of stagnation.

Many of those plants have since been ordered to remain shut at least until next week as the Chinese government scrambles to contain the virus that first appeared in Wuhan, a major autos hub [..] Automakers are bracing for even longer shutdowns and a deeper recession in global sales.

[..] The extended factory closures are expected to make it much more difficult for the industry to emerge from its recession. According to S&P Global Ratings, the outbreak will force carmakers in China to slash production by about 15% in the first quarter. The auto industry is particularly exposed because the virus originated in one of China’s “motor cities.” General Motors, Nissan, Renault, Honda and Peugeot owner PSA all have large factories in Wuhan, which has been on lockdown since late January. Wuhan and the rest of Hubei province account for 9% of total Chinese auto production, according to S&P Global Ratings. PSA Group told CNN Business this week that its Wuhan plant would remain closed until at least February 14.

Volkswagen is most exposed to potential damage. The world’s largest automaker has 24 plants making cars or parts in China, accounting for 40% of its production. [..] The situation could get worse before it gets better. S&P Global Ratings researchers said the Chinese government could extend factory shutdowns in order to limit contagion risk, affecting as much as half of China’s car and auto parts production.

Read more …

9-10 days? You really think that’ll do it?

Toyota Keeps China Plant Output Stopped Till Feb. 16 As Virus Hits Supply

Toyota Motor Corp on Friday said production at all of its plants in China would remain suspended through Feb. 16, joining a growing number of automakers facing output stoppages due to supply chain issues as the coronavirus outbreak spreads. The Japanese automaker, which operates 12 vehicle and vehicle components factories in China, said it would extend its production stoppage “after considering various factors, including guidelines from local and region governments, parts supply, and logistics.” The decision extends Toyota’s initial plans to suspend operations through Sunday, and comes as the threat from the coronavirus crisis closes in on the global auto industry.

Read more …

Big one. What’s in the fine print of the contract? What’s the use of going to court if the buyer can’t take delivery? How long would a court case take? How much do you value your buyer?

France’s Total Rejects Force Majeure Notice From Chinese LNG Buyer

French oil major Total has rejected a force majeure notice from a liquefied natural gas (LNG) buyer in China, the first global energy supplier to publicly push back against firms backing out of deals amid the coronavirus outbreak. Concerns that Chinese companies could back out of contracts because of the coronavirus epidemic have slowed down spot crude oil and LNG sales into China, the world’s top energy consumer, increasing global supplies and depressing prices of energy products. “Some Chinese customers, at least one, are trying to use the coronavirus to say I have force majeure,” Philippe Sauquet, head of Total’s gas, renewables and power segment, said during the company’s full-year results presentation on Thursday.

“We have received one force majeure that we have rejected.” Companies invoke force majeure when they cannot meet their contractual obligations because of circumstances beyond their control. Sauquet did not disclose the name of the buyer Total rejected a force majeure notice from. Reuters reported on Thursday that China National Offshore Oil Corporation (CNOOC), the country’s biggest importer of liquefied natural gas (LNG), has declared force majeure on some prompt deliveries with at least three suppliers because of the rapid spread of the coronavirus, two sources said on Thursday. Total is one of the biggest suppliers of LNG to CNOOC, industry sources said.

Last week, a Chinese international trade promotion agency said it would offer force majeure certificates to companies struggling with the fallout from the coronavirus epidemic to give to their overseas partners. Lawyers told Reuters that LNG contracts are typically governed by English law which spell out events that constitute a force majeure and some may include the epidemic clause. Serving the force majeure notice is the first step in a long-drawn out process, they said. The onus is also on buyers to prove that they are not physically able to receive the cargo to demonstrate a force majeure. For instance, if there are port closures or if workers are unable to get to the ports due to the virus.

Read more …

I love lines like: ““There is absolutely no need to panic buy..”, because what’s the other side of that? You can trust us to tell you when there’s a need to panic?

But a government could never tell you to panic.

Best version is “This is not the time to panic”. And then you go: Okay, I’ll watch some TV then, and I’ll make sure I get my ten hours of sleep. But first thing in the morning….

Panic Buying As Hong Kong Government Silent On Coming Quarantine Move

Anxious Hongkongers scrambled on Thursday to stock up on essentials over fears that border restrictions to contain the coronavirus would choke off shipments, while the government provided scant details on the mandatory quarantine taking effect in less than 36 hours on arrivals from mainland China. As long queues formed at shops all over the city for the second straight day and people jostled to grab toilet and tissue paper, as well as rice and perishables, food suppliers sought to assure the public there was no need for hoarding. “There is absolutely no need to panic buy. We have always worked to ensure a stable supply of food and all these years, throughout all sorts of big events, we have never had a shortage,” Thomas Ng Wing-yan, chairman of the Hong Kong Food Council, told a press conference.


The fears, fed by online rumours, mounted when the government announced on Wednesday it would impose a 14-day quarantine on anyone entering from mainland China, sparking concerns that supplies would also be held up. But while the government said it would reveal more on the quarantine measures on Thursday, the day ended with no information forthcoming, as sources told the Post that Chief Executive Carrie Lam Cheng Yuet-ngor was still locked in meetings over facilities and details on implementation. Even as they gave assurances, representatives of rice, pork, egg, seafood, poultry and fruit-and-vegetable merchants urged the government to exempt cross-border truck drivers from the 14-day quarantine set to kick in on Saturday, to avert any delays in supplies reaching the city.

Read more …

Li Wenliang appears to have been off by a week or so. Bless his soul, he got caught in Phase 1, in which the Party’s knee-jerk reaction is “complete denial, not a word” (they can’t help themselves). One week later he would have come in in Phase 2, “damage control, massaging the numbers downward”. He would have gotten much less Party flack… See again The Party and the Virus.

Coronavirus Kills ‘Hero’ Chinese Doctor Who Sounded Alarm

A Chinese doctor who tried to warn the world about a new coronavirus died of the disease on Friday, prompting an outpouring of sorrow as the death toll passed 630 and Beijing declared a “people’s war” on the rapidly spreading pathogen. Li Wenliang, 34, died in the early hours of the morning at the hospital where he worked and first raised the alarm about the new coronavirus in the central Chinese city of Wuhan, the epicenter of the outbreak, hospital officials said. An ophthalmologist, Li was one of eight people reprimanded by Wuhan police last month for spreading “illegal and false” information about the coronavirus, a flu-like pathogen that since triggered a global health emergency.


His messages to a group of doctors on Chinese social media warning of a new “SARS-like” coronavirus – a reference to Severe Acute Respiratory Syndrome (SARS) which killed almost 800 people around the world in 2002-2003 – triggered the wrath of Wuhan police. China was accused of trying to cover up SARS. He was forced to sign a letter on Jan. 3 saying he had “severely disrupted social order” and was threatened with criminal charges.

Read more …

… but Phase 2 already gave way to Phase 3: “close all the doors, not to worry, nothing to see here, we got this, no you can’t come in, too risky!”

That’s what these guys get.

Citizen Journalists Who Exposed Beijing’s Lies In Wuhan Have Vanished

Bloomberg reports that Beijing has silenced two of the citizen journalists responsible for much of the horrifying footage seeping onto western social media. As BBG’s reporter explains, Chinese citizen journalists Chen Qiushi and Fang Bin have effectively been “the world’s eyes and ears” inside Wuhan (much of the film produced by American news organizations has consisted of drone footage). In recent days, SCMP and other news organizations reporting on the ground and publishing in English have warned that Beijing has stepped up efforts to censor Chinese social media after allowing citizens to vent their frustrations and share news without the usual scrutiny.

On Wednesday, China said its censors would conduct “targeted supervision” on the largest social media platforms including Weibo, Tencent’s WeChat and ByteDance’s Douyin. All in an effort to mask the dystopian nightmare that life in cities like Wuhan has become. But that brief period of informational amnesty is now over, apparently. Fang posted a dramatic video on Friday showing him being forcibly detained and dragged off to a ‘quarantine’. He was detained over a video showing corpses piled up in a Wuhan hospital. However, he has already been released.

Chen, meanwhile, seems to have vanished without a trace, and is believed to still be in government detention. Last week, we shared one of Chen’s more alarming videos documenting the severe medical supply shortages and outnumbered medical personnel fighting a ‘losing battle’ against the outbreak.

Read more …

 

The Automatic Earth cannot survive without your support. Please donate.