Energy companies on Monday were beginning a days-long evaluation of facilities hit by Hurricane Ida as widespread power outages and flooding onshore presented major hurdles to restarting oil and gas processing plants. Hurricane Ida knocked out at least 94% of the offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid. The loss of power could last three weeks, utilities officials said, slowing efforts to repair and restart energy facilities, which could also take at least two weeks to fully resume operations. Power outages from a hurricane last year left oil processing plants in Lake Charles, Louisiana, idled for up to five weeks and cost owners millions of dollars in lost production.
Japan's July factory output slips as COVID-19 hits car production
Japan's industrial output shrank in July as car production took a hit from a coronavirus resurgence in Asia that has cast doubt over
the recovery in the world's third-largest economy. A spike in highly contagious Delta variant cases has forced governments in Asia to
impose fresh lockdowns and curbs, which are causing disruptions in parts supply across the region, adding to a global chip shortage.
Japan’s Car production is likely to be a drag on output in August and September. Factory output dropped 1.5% in July from the
previous month, official data showed on Tuesday, though, the fall offset growing output of production machinery items, such as those
used for manufacturing semiconductors, and electronic parts and devices. Toyota Motor Corp said this month it would cut September
production by 40% from its previous plan due to the chip crunch.
India's economy likely rebounded in April-June amid pandemic risks
India's economy likely rebounded in the April-June quarter from a deep slump last year helped by improved manufacturing and in
spite of a devastating second wave of COVID-19 cases. Asia's third-largest economy suffered one of the biggest hits among major
economies, contracting 7.3% in 2020/21, after a nationwide lockdown early last year. But the economy has not been as badly
affected from the second wave in April-May this year. However, many analysts say the risk of spiking infections from the Delta
variant and the slow pace of vaccinations in some states could hit India's growth momentum, with the economy unlikely to reach its
pre-pandemic level of about $2.9 trillion before the middle of next fiscal year beginning April.
Dollar Up, but Near Two-Week Lows as Fed Taper Uncertainty Continues
The 10-year government bond yield (interpolated) on the previous trading day was 1.60, -1.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.59, -1.00 bps. LB31DA could be between 1.57 -1.61. Meantime, the latest closed US 10-year
bond yields was 1.29%, -2.00bps. USDTHB on the previous trading day closed around 32.45 Moving in a range from 32.34-32.47
this morning. USDTHB could be closed between 32.30-32.40 today. Meantime, The dollar was up on Tuesday morning in Asia but
remained near two-week lows. Moves were mostly light as August draws to a close, with the latest U.S. jobs report, including nonfarm
payroll numbers, due later in the week.
Sources : Bloomberg, CNBC, Investing, CEIC
