Transport disaster strikes Black Friday procuring amid Europe, China floods

TOPSHOT – The aerial photo shows an area in the Blessem district of Erftstadt on July 16, 2021, which was completely destroyed by the flooding.

SEBASTIEN BOZON | AFP | Getty Images

The 2021 Christmas shopping season could be marred by out of stock goods and shipping delays as the recent floods in Europe and China tighten already tight global supply chains.

Western Europe and the Chinese province of Henan – a major transport hub and headquarters of several large companies – are grappling with the aftermath of devastating floods.

The disasters damaged railways in both regions, which are used to deliver goods and raw materials. Water entered industrial areas and damaged facilities, machinery and warehouses, supply chain industry companies told CNBC.

“Black Friday and the holiday season for which products (and raw materials) are staged will have the brunt of the impact,” Pawan Joshi, executive vice president of supply chain software company E2open, told CNBC in an email.

“Consumer electronics, dorm furniture, clothing and appliances will all continue to be in short supply as shopping starts early in school and enters the main Christmas shopping season,” he said.

Delays in the distribution of raw materials needed to manufacture goods will have a cascading effect and disrupt supply chains “for weeks and months,” Joshi said.

The flood has the potential to take another blow to the auto industry, which is already suffering from a semiconductor shortage.

Pawan Joshi

Executive Vice President, supply chain software company E2open

Several companies including Germany’s largest steel manufacturer Thyssenkrupp, have declared force majeure. A force majeure event occurs when unforeseeable circumstances, such as natural disasters, prevent a party from fulfilling its contractual obligations and release it from sanctions.

Some of the industries hardest hit by the floods include automobiles, technology and electronics, according to those CNBC spoke to.

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Auto production is likely to be affected by production delays as many of the world’s largest automakers and their suppliers are based in the flood-ravaged regions.

“The flood has the potential to take another blow to the auto industry, which is already suffering from a semiconductor shortage,” said Pawan.

Production facilities in Germany, the Netherlands, Luxembourg and Belgium are expected to bear the brunt of the flood damage, supply chain risk management company Everstream told CNBC via email. Many suppliers that provide specialty parts for the automotive, technology and aerospace industries are based there, said Shehrina Kamal, vice president of Intelligence Solutions at Everstream.

“When the floods receded, most major highways and roads were expected to be cleared this past weekend,” she said.

“Given that some companies have issued profit warnings and even declared acts of God, the effects of the flood are likely to drag on through supply chains for several weeks,” concluded Kamal.

Zurich-based company Klingelnberg, which makes transmission components, warned that the damage to its Hückeswagen plant in Germany could affect its sales targets for 2021.

Disruption of copper is bad news for electronics

The floods could also disrupt supplies of copper, which is used in many products from electronics to electric vehicles.

Flood-hit Henan Province in China is a major center of copper production, said Vivek Dhar, a commodities analyst with the Commonwealth Bank of Australia.

Copper prices rose sharply last week on delivery concerns, he said, as Henan has seen strong growth in copper smelting in recent years.

“Hopes for copper demand are linked to the rebuilding of damaged infrastructure in central China. China’s electricity sector is a particularly strong driver of copper demand,” Dhar wrote in a note last week.

In Europe, Aurubis GmbH – a provider of high-precision copper wires for the electronics and electrical appliance industries – declared force majeure in the case of deliveries after extensive floods in their plant, according to Everstream Analytics.

Read more about China from CNBC Pro

Meanwhile, in Henan’s capital, Zhengzhou, the disruption could hit a wide range of industries, from automotive to pharmaceuticals to biotechnology, said Ryan Seah, APAC intelligence analyst at Everstream.

“Zhengzhou is a major transportation hub and one of the most important cities in China along the Belt and Road Initiative,” said Seah, referring to China’s gigantic infrastructure plan that spans several countries and continents. He added that the city is home to 91 China-listed companies and a variety of sectors.

There is also a large factory in Zhengzhou, which is made by Hon Hai precision industry, also known as Foxconn. It is the world’s largest assembly plant for Apples iPhones. Foxconn previously told CNBC that it “has activated an emergency plan for flood protection measures at this location”.

Stars and Strikes Household Leisure Celebrates 16 12 months Anniversary of First Location with Upgraded Arcade

Tip ranks

2 large dividend stocks that yield 7%; Analysts say “buy”

Let’s talk about defending your portfolio. It is a general stimulus for most investors when the economy starts to turn sour. We are now in a growth phase in which economic activity is recovering strongly from the closings of the corona crisis and the reopening is in full swing, economists forecast GDP growth of up to 8% for this year. But there are clouds on the horizon. Inflation is rising, and the April job report was, simply put, a disaster. The Biden administration is pushing billions of dollars in spending plans that are likely to boost inflation, while expanded unemployment benefits artificially boost the unemployment rate. But in all of this, the Federal Reserve has signaled that it does not intend to hike rates. In a letter from investment banking firm Canaccord, analyst Tony Dwyer acknowledges the turbulent market conditions. “While major market indices remain near record levels, there has been incredible volatility among them due to confusion over the inflation path and the Federal Reserve’s insistence that it is temporary. We expect rotational volatility to continue in the coming weeks as investors debate the inflation outlook ahead of the latest economic data in early June, while the Fed moves ahead of the FOMC’s June 15-16 meeting. June goes into its dormant phase, ”noted Dwyer. All of this leads to a market environment that is suitable for defensive stock prices as a hedge against uncertainty. And that, of course, brings us to dividend stocks. These are the classic defensive ways of playing that offer investors a dual path to return, both from stock appreciation and dividend payments. Wall Street analysts did some of the footwork for us, pinpointing dividend stocks that have held up their high yields, at least 7% to be precise. When we open the TipRanks database, we examine the details behind two such stocks to see what else makes them attractive buys. Black Stone Minerals (BSM) We’re starting out with a hydrocarbon exploration and development company, Black Stone Minerals. This company owns rights to more than 20 million acres across 60 productive pools in 40 states. The lion’s share of operations are spread from Texas through Alabama, but Black Stone also owns rights and hydrocarbon production in Montana and North Dakota, West Virginia and Pennsylvania, and the Rocky Mountain states. Black Stone released its financial results for the first quarter of 21 in early May. The results showed that the company has still not fully recovered from the COVID pandemic – sales and earnings are both still lower than last year. On a positive note, sales increased sequentially for three consecutive quarters. Revenues were $ 87.1 million and net income was reported at $ 16 million. The company confirmed its creditworthiness through its $ 400 million revolving credit facility during the quarter. During the quarter, Black Stone entered into several new property development agreements in Texas and acquired mineral and licensing rights for $ 20.7 million in cash and shares in the northern portion of the Midland Basin. Also in the quarter, Black Stone announced a dividend of 17.5 cents per common share. At the current price, the dividend yield on the common shares is 7.07% and the annual payout of 70 cents per common share. Raymond James analyst John Freeman is impressed with Black Stone’s development deals in the first quarter and writes of the company: “BSM had an incredibly strong first quarter of … the pandemic. We have already seen phenomenal results in the very early development of Austin Chalk and expect more useful downhole catalysts in the near future, this time from the Shelby Trough … “The analyst summarized:” Due to the strong progress we are increasing our production estimate for 2021 to the top of the BSM – Guide (up 3%) and are now modeling a return to growth in 2022 (offering an attractive .. dividend yield and rock-solid balance sheet. “Unsurprisingly, Freeman rates the stock as a strong buy and sets a price target of $ 15 which suggests an upside of ~ 50% for the coming year. (To see Freeman’s track record, click here) Overall, Black Stone has drawn the attention of 5 Wall Street analysts whose ratings break down 2 to 3 buys versus holds and give the stock a consensus rating of Moderate Buy, which sells for $ 9.90 and has an average K Price target of $ 11.40, which means room for 15% upside over the next 12 months. (See BSM stock analysis on TipRanks) Blackstone Mortgage Trust (BXMT) Of course, when we look at dividend stocks, we’re drawn to Real Estate Investment Trusts (REITs). Spreading the line between real estate managers and financial services providers, these companies are known for their high dividend yields and long-term dividend reliability. Both result from a regulatory requirement that REITs pay back a certain percentage of the profit directly to the shareholders. Dividends are a convenient mode of compliance. Blackstone Mortgage focuses on secured senior mortgage loans in the North American, European and Australian markets. The company has more than $ 368 billion in real estate portfolio worldwide and $ 649 billion in total assets under management. Assets under management include real estate assets of $ 196 billion. While BXMT’s revenue has been declining sequentially recently, revenue for the first quarter was still $ 185.75 million, and earnings per share of 54 cents per share were dramatically higher than the 39 cents loss for the year-ago quarter. In the first quarter, Blackstone completed $ 1.7 billion in new home loans, exceeding its total lending in 2020. The company also reported $ 1.1 billion in available liquidity. The solid results supported the dividend payment of 62 cents per common share. The dividend has been paid at this rate since 2H15, and the company has made steadfast payments for the past 8 years. At the current price, the dividend is annualized to $ 2.48 per share and gives an impressively high return of 7.74%. BTIG analyst Tim Hayes is bullish on Blackstone: “The pipeline is robust and management believes that earnings will benefit from continued portfolio growth and higher fee income as additions / repayments normalize. ROEs for new issues are expected to be in line with pre-pandemic levels as lower funding costs offset pressures on investment returns. Credit performance remains strong and continues to trend in the right direction…. BXMT recognized 100 percent interest collection in 1Q21, with 98% of the loans being successful [sic]… “The analyst concluded:” We think stocks are attractively valued, are currently trading at a discount to historical multiples and offer a dividend yield of 7.7% – a spread of ~ 600 basis points to the yield on US Treasuries at 10 years compared to the 2-year average pre-pandemic spread of ~ 475 bps. “Based on the above, Hayes rates BXMT stock with a Buy and a target price of $ 35. Based on the current dividend yield and expected price increase, the stock has a potential total return profile of ~ 16%. (To see Hayes’ track record, click here) Like BSM above, BXMT has 5 analyst ratings, including 2 for buy and 3 for hold, for an analyst consensus rating with moderate buy. (See BXMT stock analysis on TipRanks) To find great ideas for trading dividend stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly introduced rth tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the analysts featured. The content is provided for informational purposes only. It is very important that you do your own analysis before making any investment.

Biden tells Congress Syria strikes are per U.S. proper to self-defense

President Joe Biden arrives at Ellington Field Joint Reserve Base in Houston, Texas, United States on February 26, 2021.

Jonathan Ernst | Reuters

president Joe Biden On Saturday, Congress said the air strikes it ordered this week in Syria were in line with the U.S. right to self-defense, as members of its own party demanded more transparency about why military action was being taken without Congressional approval .

“The United States has taken this action in accordance with the United States’ right of self-defense contained in Article 51 of the United Nations Charter,” wrote Biden in a letter to House Speaker Nancy Pelosi and Senate President Patrick Leahy.

Biden on Thursday ordered air strikes against facilities in eastern Syria that Iranian-backed militias are using, according to the Pentagon. The Department of Defense said several facilities at a border checkpoint were destroyed and there were casualties, but did not provide additional information.

These strikes were in response to a February 15 attack in which missiles struck Erbil International Airport in northern Iraq, where a coalition military base is located. The attack killed a civilian contractor from the US-led military coalition and injured several others, including an American service member.

“I led this military action to protect and defend our personnel and partners from these attacks and future such attacks,” Biden wrote in his letter on Saturday.

The letter comes after some Senate Democrats pushed back over the strikes against Biden, asking him to provide information on why military action was taken without the approval of Congress. According to the resolution of the armed forces, presidents must inform Congress within 48 hours of taking military action. In the letter, Biden cited his constitutional authority as Commander-in-Chief.

“I conducted this military action consistent with my responsibility to protect the citizens of the United States at home and abroad and to advance the national security and foreign policy interests of the United States, under and as my constitutional authority to conduct United States external relations Commander in Chief and Chief Executive, ”wrote Biden.

The Pentagon informed leaders in Congress before the military Strikes, according to a spokesman for the National Security Council. House spokeswoman Nancy Pelosi was also notified ahead of the strike, according to a Democratic adviser.

Iran condemned the US air strikes on Saturday and declined responsibility for the missile attacks on US targets. Iranian Foreign Minister Mohammad Javad Zarif said the US strikes were “illegal and a violation of Syrian sovereignty,” according to Iranian state media reports.

– CNBC’s Christian Nunley and Reuters contributed to this report.

The Superintendence Of Trade And Commerce Strikes Once more – Media, Telecoms, IT, Leisure

United States:

The superintendent of industry and trade strikes again

January 26, 2021

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This time the company BODYTECH was fined USD 50,150. The reason, incomplete, unclear some confusing information given to consumers. With regard to distance selling by telephone, BODYTECH did not provide consumers with sufficient information on the terms of the contract, the price, the existence of the right of withdrawal and withdrawal or the conditions of exercise. In addition, the contracts contained conflicting information. With regard to the term, the contract initially provides for an unlimited term, but also provides that the term can be extended by the conclusion of a new partnership agreement for the same or a different term. The decision is not final as an appeal is available. However, the evidence gathered in the process is strong enough to support the fine.

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