Saturday, 25 January 2020

Weekend Update 25/01/2020 Did China Coverup?


Baltic Dry Index. 557 -19  Brent Crude 60.69 Spot Gold 1572

Never ending Brexit now January 31. 7 days away.
Trump’s Nuclear China Tariffs Now in effect.
The USA v EU trade war started October 18. Now in effect.

“I can live with doubt and uncertainty and not knowing. I think it is much more interesting to live not knowing than to have answers that might be wrong.”

Richard P. Feynman

Given China’s previous record with the SARS outbreak in 2002 – 2003, when the authorities in China were slow to react, covered up the extent of the problem, and downplayed the number of deaths and patients, until eventually due to the scale of the problem they were forced to fire the Health Minister and Mayor of Beijing, many experts are again sceptical of China’s corona-virus story so far.

The BBC has reported, (I know, is that true or did you hear it on the BBC,) that the first cases were known about in the first few days of December, though they weren’t reported until December 31. Given a 5 to 14 day speculated incubation period, the onset could be as early as mid to late November.  

Isolating Wuhan and other cities starting just this week, means that this new corona-virus has had plenty of time to spread widely in China, and more widely in southeast Asia.

To avoid a major health event now, requires that the new virus has a low infection rate, and has for most, a low severity rate.  More common cold than severe flu. We are likely to know by the end of February.

If the worst happens, this new virus will become very disruptive to the global economy. Oil, copper, the Baltic Dry Index, and gold, are all starting to indicate a rising fear to the global economy.

“As far as the laws of mathematics refer to reality, they are not certain; and as far as they are certain, they do not refer to reality.”

Albert Einstein

China virus death toll rises to 41, more than 1,300 infected worldwide

January 25, 2020 / 12:07 AM
BEIJING (Reuters) - The death toll from China’s coronavirus outbreak jumped on Saturday to 41 from 26 a day earlier as the Lunar New Year got off to a gloomy start, with authorities curbing travel and cancelling public gatherings.

More than 1,300 people have been infected globally with a virus traced to a seafood market in the central city of Wuhan that was illegally selling wildlife. Health authorities around the world are scrambling to prevent a pandemic. 

State-run China Global Television Network reported in a tweet on Saturday that a doctor who had been treating patients in Wuhan, 62-year-old Liang Wudong, had died from the virus.

It was not immediately clear if his death was already counted in the official toll of 41, of which 39 were in the central province of Hubei, where Wuhan is located.

U.S. coffee chain Starbucks said on Saturday that it was closing all its outlets in Hubei province for the week-long Lunar New Year holiday, following a similar move by McDonald’s in five Hubei cities.

Wuhan, a city of 11 million, has been in virtual lockdown since Thursday, with nearly all flights at the airport canceled and checkpoints blocking the main roads leading out of town. Authorities have since imposed transport restrictions on nearly all of Hubei province, which has a population of 59 million.

---- The number of confirmed cases in China stands at 1,287, the National Health Commission said on Saturday.

The virus has also been detected in Thailand, Vietnam, Singapore, Japan, South Korea, Taiwan, Nepal, Malaysia, France, the United States and Australia.
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UK Researcher Predicts Over 250,000 Chinese Will Have Coronavirus In Ten Days

Fri, 01/24/2020 - 18:12

When it comes to estimating the human capital and potential fallout from a highly contagious epidemic, arguably the most important variable is the R0 ("R-naught") value of the disease, which represents the average number of secondary cases arising from an average primary case in a entirely susceptible population. That's the technical definition, a simpler one is that the R0, or basic reproductive number, of a contagious disease is the number of cases that a case of the disease generates over the course of its infectious period in a susceptible population. The higher this number, the more dangerous the disease, the more lethal the outcome.

Some indicative R0s are 0.9 – 2.1 for the common flu while the 1918-1919 pandemic-causing Spanish flu was estimated to have ranged from 1.4 – 2.8, with a mean of 2. Some other notable R0s are shown below, and note that SARS was between 2 and 5:

----So what about the R0 of 2019-nCoV, also known as the coronavirus that has claimed over three dozen lives in China and infected (at least) 1,000 people? Naturally, since the disease is most active in China which is notoriously opaque especially when it comes to matters that can cause a mass panic, the best one can do is guess, and that's what the World Health Organization did yesterday when it issued a statement on the coronavirus epidemic with the following projection:


In "Novel coronavirus 2019-nCoV: early estimation of epidemiological parameters and epidemic predictions", Reed et al, write that with an R0 of between 3.6 and 4.0, roughly 72-75% of transmissions "must be prevented by control measures for infections to stop increasing."

This is a major problem because Reed estimates that only 5.1% of infections in Wuhan are identified (as of Jan 24), "indicating a large number of infections in the community, and also reflecting the difficulty in detecting cases of this new disease." Furthermore, since all of this is happening in China which is not known for making the most socially-beneficial decisions under pressure, there is an ominous possibility that Reed is actually overly optimistic.

Needless to say, while 2.5 is quite high, and in line with that of the Spanish flu epidemic  which infected about half a billion people back in 1918, killing as many as 100 million before it eventually fizzled out, the real coronavirus R0 number may end up being far higher. That is the working hypothesis of Jonathan Read, a UK expert on the transmission and evolutionary dynamics of infectious diseases, who has published a paper with four colleagues that estimates transmission parameters for the Wuhan coronavirus, calculates that the R0 of 2019-nCoV to be between 3.6-4.0 or roughly the same as SARS, and reaches a conclusion about spread of the coronavirus epidemic that is frankly terrifying.

After Wuhan, the cities with the largest outbreaks elsewhere in China are expected to be Shanghai, Beijing, Guangzhou, Chongqing and Chengdu.

Reed also predicts that by 4 Feb 2020, the countries at greatest risk of importing infections through air travel are Thailand, Japan, Taiwan, Hong Kong, South Korea, USA, Malaysia, Singapore, Australia and Vietnam. In short: much of Asia will infected, and from there, the rest of the world awaits.
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Shanghai Disney shuts to prevent spread of virus

January 24, 2020 / 6:45 AM
BEIJING (Reuters) - Walt Disney Co’s Shanghai Disney Resort will be closed until further notice to help China stop the spread of a flu-like virus, costing the theme park operator revenue during the country’s biggest holiday season.

China is on a seven-day Lunar New Year holiday, a period when the Shanghai Disney park would be usually packed with tourists. Last year Shanghai Disney had to stop selling tickets to visitors as the park got overcrowded. 

“In response to the prevention and control of the disease outbreak and in order to ensure the health and safety of our guests and Cast, Shanghai Disney Resort is temporarily closing Shanghai Disneyland, Disneytown ... starting Jan. 25,” the company said on its website.

“We will continue to carefully monitor the situation and ... announce the reopening date upon confirmation.”

---- The outbreak has already prompted seven Chinese films that were set to premiere during the holiday to postpone screenings, forgoing what is usually the best week of the year at the Chinese box office.

Disney said it would refund tickets for admission to Shanghai Disneyland, on China’s east coast, more than 800 km from Wuhan, or other services at the park as well as hotel bookings.

The estimated financial impact on the U.S. company’s first theme park in mainland China, which opened in mid-2016 in its largest overseas investment at $5.5 billion, was not immediately clear.

The company was not immediately available to comment.

Shanghai Disney carried out a resort-wide makeover this month for a four-week event through Feb. 9 to celebrate the Year of the Rat with its characters including Mickey Mouse and Minnie Mouse and target China’s middle class and booming domestic tourism.

Walt Disney Co owns a 43% stake in Shanghai Disney Resort which has Shanghai Disneyland theme park and two hotels with a total of 1,220 rooms.

The impact on businesses is set to increase as China discourages locals from gathering in crowded places. It has already stepped up measures to contain the virus, with public transport suspensions in 10 cities, the shutting of temples and closing the Forbidden City, Beijing’s most famous tourist attraction.

Japan’s Fast Retailing Co Ltd said on Friday it has temporarily closed 17 Uniqlo stores in Wuhan. China is a key growth market for the company which faces a saturated market and weak consumer spending in Japan.

Starbucks shuts shops, suspends delivery in China's Hubei amid virus outbreak

January 25, 2020 / 4:53 AM
BEIJING (Reuters) - Starbucks has closed all shops and suspended delivery services in China’s Hubei province for the week-long Lunar New Year holiday, where a coronavirus outbreak originated from its capital Wuhan has caused 41 deaths in China.

Starbucks said on Saturday that the move is out of “health concerns” for its customers and employees, according to a post on China’s twitter-like Weibo. The central province of Hubei is home to nearly 60 million people.

Oil Posts Worst Week in a Year as Virus Selloff Deepens

By Jacqueline Davalos
Updated on January 24, 2020, 9:39 PM GMT
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China lockdown of 40 million people clouds fuel-demand outlook 
 France joins the U.S. in reporting cases of coronavirus

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