1) In October and November Intermodal, shipping carriers rejected U.S. agricultural export containers worth hundreds of millions of dollars. Instead they are sending empty containers back to China to be filled with more profitable Chinese exports. These refusals came during the peak season for agriculture exports. The matter is being investigated to see whether the carriers refusing U.S. export cargo violated the Shipping Act. This act makes it unlawful for carriers to unreasonably refuse to deal with or negotiate, to boycott or take any other concerted action resulting in an unreasonable refusal to deal, or engage in conduct that unreasonably restricts the use of intermodal services. Carriers rejected an estimated 177,938 containers known as TEUs (20-foot equivalent units) in October and November.
2) There are three Pacific military flashpoints that could shape Biden’s entire China strategy these next four years. The suggestion that the departure of President Trump from Washington would ease US-China tensions are being discounted. China has flown more than two dozen combat aircraft near Taiwan and have passed a law which allows China’s coast guard to fire on foreign vessels. Meanwhile, the US Navy has sent an aircraft carrier strike group into the South China Sea. China could use large-scale military exercises near Taiwan or in the South China Sea, or stopping foreign vessels in the name of enforcing Chinese maritime regulations. The flashpoints are: 1) The South China Sea- China has built up tiny reefs and sandbars into man-made artificial islands, fortified with missiles, runways and weapons systems. 2) Taiwan and the Taiwan Strait- Despite 75 years as an independent nation, China claims Taiwan as belonging to China, and has repeatedly stated its intention to bring Taiwan under its control, with force if necessary. 3) Japan- Strongly aligned with the U.S. There is contention between Japan and China over Senkakus, an uninhabited rocky island chain, 1,200 miles southwest of Tokyo.
3) Experts predict that Phoenix Arizona may become uninhabitable by the end of this century. The Southwest is facing a reckoning from decades of human development, coupled with rising global temperatures from carbon emissions, which means that many major cities in the Southwest may become uninhabitable for humans this century. They are concerned that cities like Phoenix may have temperatures above 100 degrees for a third of the year, including well after dark.
4) Stock market closings for – 1 FEB 21:
Dow 30,211.91 up by 229.29
Nasdaq 13,403.39 up by 332.70
S&P 500 3,773.86 up by 59.62
10 Year Yield: down at 1.08%
Oil: up at $53.61