Wednesday, September 18, 2019

Hong Kong Protests: What Have We Learned?

Well, in the early days, last spring it was confirmed that short wave radio was an effective form of communication. More on comms further down.

It was shown that lasers have some efficacy when used against facial recognition cameras, either pointed directly at the camera or under the chin to make spooky campfire faces.

Also, they make pretty pictures when the protesters wanted to portray peaceful intent:

https://cdn.i-scmp.com/sites/default/files/styles/1200x800/public/d8/images/methode/2019/08/16/addf6040-bd83-11e9-8f25-9b5536624008_image_hires_115003.JPG?itok=DmBEFkgo&v=1565927409

We learned that reports of tear gas canisters being disabled by dropping in liquid nitrogen were FALSE (don't do it, seriously) but that simple mud actually works. Also, spray an aqueous solution of Maalox or other antacid on the affected area if you get teargassed.

Back to communications, since shortwave isn't for everyone, Forbes reported:
Hong Kong Protestors Using Mesh Messaging App China Can't Block: Usage Up 3685%

Finally, from FT Alphaville:

Snap AV: Hong Kong worries
A month or so ago, we commented on a new offering from luxury fashion shop Hermès.
Renowned for its silk scarves, pristine leather goods and achingly high gross margins (70 per cent in 2018), the French company had seemingly decided to pay homage, via the medium of its famous Birkin Bag, to the Chinese demand which had propelled its, and its competitors, growth since the financial crisis.

So, given China’s slowing economic growth and lingering political uncertainty in Hong Kong, it was with some interest we opened a note from UBS this morning titled “Luxury at a tipping point — slowing earnings momentum for some is a big risk for others”.
One chart in particular we thought was worth sharing for those who like to dabble in the equities of luxury goods companies.

For your eyes only, the luxury goods companies with the highest exposure, in terms of sales, to Hong Kong:


In short, any further Chinese encroachment on Hong Kong could spell trouble for Richemont (owner of brands such as Chloé, Cartier and Dunhill), Swatch and Burberry....MORE
One last thing - We've also learned Xi and the Politburo know folks can't recreate the 1989 "Tank Man" photos if they don't send in the tanks.