Apple’s stock market valuation hit $3 trillion, up from a mere $1 trillion in 2018, about equal to the GDP of Britain and more than any country except the US, Germany and Japan. In the third quarter of last year Apple’s revenue in China hit $14.76 billion, a year-on-year increase of 58%. Apple stores personal data of Chinese customers on servers run by a state-owned Chinese firm, and at the insistence of the PRC has abandoned the encryption technology it uses elsewhere, making those data available to the Chinese government. And the company censors those of its apps President Xi Jinping finds offensive. “Apple’s courtship of the Chinese government shows a disconnect between politicians in Washington and America’s wealthiest company,” concludes a NYT investigative report.
The daily number of new covid cases in America hit a reported one million, but airports remain jammed and efforts are made to keep schools open. Three non-symptomatic cases were reported in Yuzhou, following which the city of 1.2 million was completely locked down and cars banned in support of a zero-Covid strategy in advance of the Beijing Olympics, which has also prompted a lockdown of 13 million in Xi’an. Despite a diplomatic boycott of the games ordered by President Biden, American diplomats needed to support US athletes will attend, and presumably be allowed access to transport. Clapping will be permitted by the limited audience but no shouting, since that emits virus particles.
On the home front, Federal Reserve Board monetary policy gurus are planning to raise interest rates, but share prices continue to break records. That might be because the rate increases planned are tiny, the equivalent of turning a garden hose on the inflationary conflagration that has taken prices up at an annual rate of about 6.8%.
But fear not: the Fed expects the inflation rate to drop sharply this year and be in line with its 2% target (as it measures it) by the end of 2023 or early 2024. So far this month price increases have been announced by Mondelez International (Oreo cookies, Cadbury candy, snacks +6-7%); Campbell Soup; Kraft Heinz (Jell-O, Grey Poupon Mustard, Bagel Bites, Ketchup, Oscar Mayer franks, Weight Watchers, and other items, average +5%); potatoes; celery; mayonnaise; frozen meals; wine, beer and liquor; stuffed chicken breasts; bacon; milk; Ikea. And if you think wages, house prices and rents are going to stabilize, think again.
Oh, yes. The Marine Exchange of Southern California reports there are 101 containerships anchored or loitering across 1,000 miles of coastline waiting for space at Long Beach/Los Angeles. “Thanks to President Biden, Supply Chain Bottlenecks are Easing,” Democratic National Committee press release.