Good morning! Wall Street banks such as Goldman and JPM started summoning staff back to office, while many US hedge funds plan to let their employees work remotely at least one day a week starting in Sep. Which work mode do you prefer? 🤔
Morning Wrap your day:
- Our beef is under a cyberattack.
- Android has a new big challenger now: Huawei launched its latest mobile system HarmonyOS.
- It’s driving season! Oil prices advanced from the highest since 2018.
Wall Street ended with small gains ahead of key US labor market data due later in the week. Energy sector extended its rise as oil prices pushed higher.
- Philadelphia Fed President Patrick Harker said Fed needs to begin discussing the taper timeline.
- Investors are also digesting Biden’s plans to amend Trump’s China Blacklist.
- Shares of AMC, another so-called “meme-stock”, jumped 95.2%.
Asia: Sentiment across Asia was lifted by a pick up in US manufacturing. But China shares ended lower, as investors booked profits after a healthcare rally driven by the recent three-child policy. Hong Kong ended lower as blue-chip tech and healthcare firms retreated.
Not enough beef?
Source: Brainstudy.info, Morning Wrap
Cyberattack has been impacting our lives… impacting hospitals in Jan., the gas line in May, and the beef supply this time.
Ugh? Beef is under a cyberattack? 🥩
Yesterday, the world’s largest meat producer JBS confirmed that it got a ransomware attack - leading to a halt of 10 meat plants across US, Canada, and Australia. Production of beef, poultry, and pork was all disrupted.
- JBS accounts for 23% of the American beef supply, while Asia shares more than half of JBS’s total exports… so this is really something to all of us.
Who is responsible? JBS suspects that the hack is from a hacker group based in Russia. The White House soon said that it is engaging with the Russian Government, while Russia responded that no information could be provided.
That’s worrying… is our burger supply fine?
So far, so good. 🍔 Even there’s a temporary shortage, grocery stores are unlikely to push for an immediate price hike as consumers would react negatively. So this is yet reflected… but we may get some color from the following numbers.
- Number of cattle slaughtered would drop 22% this week vs. last week due to the plant closure, as per estimated by the Agricultural Department.
- Live cattle-futures was down 1.9% as the plant closure led to less demand. 📉
Oh no! When can it resume?
It’s moving back online slowly now. JBS’s backup server is free from this attack… that’s lucky enough!
- But still, given JBS’s giant size globally, this could lead to a supply chain disruption if it lasts 1 week or longer. 😰
Android’s New Big Competitor
Source: Codebugfix, Morning Wrap
What if our mobile phone can be connected to everything? That’s the concept of Huawei’s latest mobile system HarmonyOS, launched last night... Android has a new big challenger now 😮
Unlike the mobile-heavy Andriod, Huawei aims to expand its new HarmonyOS to Internet-of-Things: phones, TVs, watches, laundry machines… just to make everything hyper-connected and unified.
How about apps? Not enough apps - that’s always the biggest challenge of launching a new operating system. To solve that, Huawei developed a decoding system that could easily compile Android apps and run on its own system without re-developing.
- But Google apps are all missing as the blacklist is in force... still hard for international users 🤯 (see explanation at the bottom 👇 if you forgot)
How many people will use that? 🤔
Huawei expects that the new system could run on up to 300 mln devices by the end of 2021, with ⅔ on Huawei-branded phones. Immediately after launching, some of its own models could already be upgraded to the new system.
- The top drone maker DJI, Swiss watch producers Tissot and Swatch all entered into a partnerships with HarmonyOS.
+ Why Huawei needs its own OS?
If you can recall this: the US Government blacklisted Huawei citing the reasons “national security” and “military attachment”. All Huawei-branded phones cannot access Google’s services.
It’s Driving Season!
Source: Dribbble, Morning Wrap
What did you do during the Memorial Day weekend? Went for a drive? 🚗 The US driving season and UK’s rebounding traffic are helping the oil prices to advance from the highest since 2018. 📈 And there’s more behind.
Is the oil price recovering?
It reached the highest since 2018 on Tuesday, and Brent settled above USD 70 a barrel for the first time since 2019.
- 🏠 No driving, less demand. The oil prices plunged after the outbreak of covid - racing to the bottom in April. As you may know, the price of WTI crude oil even slumped into negative for the first time in history on April 20th, 2020.
- 🏃 It has rebounded since April on expectations of demand recovery as economies pick up, and the production cut of OPEC.
Then what are the recent drivers that lift the price?🛢
- OPEC+ voiced optimism on demand. They will also stick with their plan to only gradually release more supply until July.
- Iran deal is up in the air. There was hope that world powers and Iran could revive a 2015 nuclear deal this month, so that US might lift sanctions on Iranian oil exports. But now it seems less likely.
- Many of you are going for a drive! US steps into the summer driving season - its gasoline demand was the highest since the pandemic began last week. UK traffic on UK roads was even higher than pre-pandemic levels for the first time. 😯
To be honest, I was surprised by the data👆. Probably we have been stuck at home for too long? 😂
What’s Moving in the Business World?
😇 Zero death, finally! UK reported zero Covid death for the first time since the pandemic started, fueling demands to lift the lockdown. (More)
🧾 More tax transparency: EU reached a new deal that forces MNCs to report taxes country-by-country in every EU country where they operate. (More)
🚀 Zoom boom continues: Zoom beats quarterly estimates but shows signs of slowdown as pandemic eases. (More)
👔 Home or office? Deutsche Bank rolls out hybrid working plans after the pandemic - staff could have 40-60% work from home. (More)
🎞️ A new name? After the merger between Discovery and WarnerMedia, they gave their baby a new name – Warner Bros.Discovery. You sure that’s a new name…? (More)
💉One more choice. Singapore allows China’s Sinovac vaccine following WHO’s approval. (More)