Tag Archives: markets

Too Weak

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Nike’s CEO, John Donahoe, has given his company’s game away. Recall that, earlier this year he claimed dismay over the People’s Republic of China government’s, and the Communist Party of China’s, abuse, slavery, and overt genocide against the Uighurs.

We are concerned about reports of forced labor in, and connected to, the Xinjiang Uyghur Autonomous Region (XUAR). Nike does not source products from the XUAR and we have confirmed with our contract suppliers that they are not using textiles or spun yarn from the region.

Even that weak statement turns out to have been just pretense, virtue-signaling for his American audience, which is doubly dishonest just for that.

Now, via an earnings call, he

called the sportswear apparel giant a “brand of China” this week, following a fiasco it was involved in earlier this year over concerns about human rights abuses committed by the communist government.

And

…we are a brand of China and for China[.]

With that call, Donahoe announced his utter rejection of everything for which the US, the nation with the economic, political, and moral environment that enabled his Nike to flourish, stands.

With that call, Donahoe has announced his complete acceptance of abuse, slavery, genocide by the nation he prefers to call home.

Reasons enough to not do business with Nike.

Rule By Law

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…and not rule of law, which our Constitution so strongly pushes. That’s what SEC Chairman Gary Gensler has decided to do.

The SEC announced this month that it will suspend enforcement of new rules issued under former Chairman Jay Clayton that subjected proxy advisory firms to the same anti-fraud rules as public companies and required them to disclose their business conflicts.

Just pick and choose the rules the Biden appointee deigns enforce. Don’t move first to change the rule, while enforcing it while it’s in force. Gensler Knows Better which rules are fit, and disdains the need for someone so awesome to submit his wishes to lesser masses who might impudently comment contrariwise to any change he deems necessary during such a rule change’s comment period.

Oh, wait:

Mr Gensler has directed SEC staff to consider revising the rules.

Give him a rule that better suits him. But he’ll still ignore the existing rule as beneath his dignity.

This is rule by law—which is another way of saying rule by men with the raw power to reign.

Blatant Cowardice

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Or blatant aiding and abetting. Or both. Here is the critical part of how things went down in the JBS Corporation hacker attack and JBS’…surrender…to the hackers:

After identifying the incursion early on Sunday, May 30, JBS said it alerted US authorities…. By that afternoon, the company had concluded that encrypted backups of its data were intact, said Andre Nogueira, chief executive officer of JBS USA Holdings Inc.

Then

Tuesday evening, progress getting JBS’s systems back online using its backup data made Mr Nogueira confident enough to issue a statement announcing that the majority of JBS plants would be operational on Wednesday, June 2.
The company’s consultants had continued negotiating with the hackers. Though forensic analyses by JBS and its specialists showed that no customer, supplier or employee data had been compromised, Mr Nogueira said, the cybercriminals claimed they had captured some.
JBS’s cybersecurity experts warned that the attackers may have left themselves some way to pry back in. After JBS negotiators and the hackers arrived at an $11 million sum….

Promptly getting back on the air with sound backups, JBS unharmed even if sorely inconvenienced, Nogueira continued negotiating with the hackers, and ultimately, Nogueira paid off anyway. And all, apparently, because the hackers claimed to have gained “some” data and that, according to his consultants, maybe—maybe—the hackers had left a back door for later use.

Never mind that the hackers claimed, after payment, that no, they didn’t have any stolen data. Who can trust the words of criminals? Never mind that, payment or not, the hackers’ back door remains—if it exists at all. Where’s JBS’ IT? Where’s JBS’ training—with enforced sanctions—of its employees regarding phishing and malware in general?

Then there’s this bit of cynicism:

The cost of the attack, he [Nogueira] said, would be immaterial to JBS….

Except for the part about Nogueira has made JBS an open target for further hacks, and their costs. Never mind the exposure Nogueira’s behavior has created for other businesses by demonstrating that such hacks actually work with impunity and as revenue-generators for the criminals (and political gain-generators for their State sponsors). Never mind, either, the costs this particular hack imposed on JBS’ customers and on the company’s suppliers.

The Biden Oil Price Spike

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President Joe Biden (D) has killed the Keystone XL Pipeline, is blocking oil production from Federal lands, killed oil production in northern Alaska, is working to kill fracking altogether, is working to kill American oil (and natural gas) production, and has given the go ahead to Russia’s Nord Stream 2 pipeline. In sum, he’s actively working to kill American energy independence.

All of that is driving up American citizens’ energy costs, and that is reflected in the market’s anticipation of spiking oil costs. Here are a couple of graphs illustrating that. They illustrate the expectation that oil will soon cost $100/barrel, after several years of $50-$65/barrel. The first presents the spike since the start of the year in the number of West Texas Intermediate $100/barrel futures contracts against a current $70 price.

This graph reflects the price of a $100/barrel call option on WTI for delivery in December this year and next.

The expectation of actual market pricing of $100 is rising, also, sharply enough to drive up the price of the option.

This is what expert traders (some of whom are trading on the trends themselves and not on underlying oil prices, to be sure) are seeing as the future price of oil for our citizens. Even if oil settles out at its current price of $70 or just a little higher (and the anticipations turn out to be overstated), this current price represents a sharp increase over the last several years, when Government wasn’t moving so zealously to restrict our nation’s oil supply.

This is what Biden has wrought for our nation’s energy supply and cost of energy.

An Inappropriate Judicial Question

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The Apple-Epic trial has gone to the jury (in this case, the judge, the matter being a bench trial). This case centers on the level of commissions Apple charges app developers for marketing their apps in Apple’s App Store and whether those app developers can, under Apple’s rules, market their products/collect revenue for their products through other venues as well as the App Store—vis., in-app advertising.

In the course of the trial, the presiding judge—the “bench”—US District Judge Yvonne Gonzalez Rogers, has asked an inappropriate question.

…confronted Mr Cook [Apple CEO] with survey data that, she said, indicated that 39% of developers were either very dissatisfied or somewhat dissatisfied with Apple’s distribution services. “How is that acceptable?” she asked.

There is much to decry about Apple’s business practices, particularly with its App Store.

In particular, one would think those survey results to be unacceptable, to developers, users, even to Apple.

However.

The question is a business matter, solely among Apple, its customer/developers, and the market in general. It is not at all a judicial matter, and it is completely out of place and inappropriate for a judge to ask in a courtroom.