Afternoon Coffee: Apple Guidance Rattles Investors, ‘Unprecedented’ Typhoon Heads for Thailand

Apple announced Wednesday that it was cutting its earnings guidance for the holiday quarter, Quartz reports, knocking its shares down as much as 7% and fueling investor concerns over global economic contraction.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple CEO Tim Cook said in a note to investors. “As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed,” he added.

Tropical Storm Pabuk 

A tropical storm has formed within a mass of thunderstorms that recently passed through Vietnam, potentially bringing a typhoon to Thailand — an event that has not happened in that country during January in at least 68 years, according to Al Jazeera. The storm presents potential disruptions to shipping operations and has sent tourists fleeing during a popular travel season.

Underwhelming Fracking Output

The shale well boom helped turn the U.S. into a global oil superpower, but the technology behind it may not be as productive as owners had promised investors, The Wall Street Journal reports.

In an analysis, the Journal compared the well-productivity estimates that top shale-oil companies gave investors to projections from third parties about how much oil and gas the wells are now on track to pump over their lives. A majority of those estimates were overly optimistic, according to the report, with those companies on track to pump nearly 10% less oil and gas than they forecast.

Ocean Rates

And finally, a shipping update: Ocean freight rates could rise 5% to 10% over the next week, according to Freightos, as sulfur surcharges kick in ahead of IMO 2020. The price increases will vary based on the trade lane, Supply Chain Dive reports, but overall the shipping industry has indicated a low level of readiness to address the issue.

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