Yesterday evening in a high stakes negotiation ahead of the markets opening in Asia, the protagonists met to try and agree the largest cut in production ever-10%. The issue apart from the tumbling price of oil now at $22.76 in NYC on Thursday evening is as highlighted here previously storage: quite simply capacity has been exhausted. Watch this space for further news.
Many of you will not have heard of this Vietnamese company, but it is the largest manufacturer of branded athletic running wear making equipment for Nike, Adidas and New Balance among others. Located in Pouyen, Vietnam and employing 70,000 workers working 3 shifts a day, it is shortly to be closed for an indeterminate period due to fears of infection being spread by so many workers in such close proximity. So far the Covid19 virus has been well contained in Vietnam and Hanoi is not taking chances. One thing for sure is that the super industrious Vietnamese will not suspend operations for a moment longer than is necessary. The Vietnamese Dong having traded at 23000 + versus USD for the past year has fallen in line with other emerging market currencies in the past month and Vietnam’s role as one of the world’s manufacturing and therefore exporting nations will be damaged by any prolonged suspension.
Hailed as one of the all time greats in what is still a young sport, motor racing legend Sir Stirling died over the weekend at the age of 90. Despite having never won the F1 championship, he was one of the best known and best loved drivers throughout his life. My only (extremely remote) connection with him was as a very young child I was standing on the seat of my father’s car( a silver Triumph Renown) in Folkestone holding the steering wheel and pretending to drive while making accompanying engine noises. Two passing workmen stopped, looked through the open driver’s window and asked me:
“ So who do you think you are then, Stirling Moss?!”
Discussion and Analysis by Humphrey Percy, Chairman and Founder