1 November 2019

1) The international auto makers Fiat-Chrysler and Peugeot, which is owned by PSA group of France, have agreed to merge. This deal will create one of the world’s largest auto makers by volume, having a market value of $48.4 billion dollars. The focus on the Jeep sport-utility vehicles and RAM trucks account for the majority of Fiat-Chrysler’s profit, helping to offset the Fiat brand.

2) New data shows that low income people are more likely to shop at Family Dollar and Dollar General than at Walmart, the traditional retailer for the poor. Low income is considered those with household incomes below $50 thousand dollars. The data was obtained by measuring location data from 50 million mobile devices. The Dollar General chain has 16,000 stores in 44 states and the Dollar Tree has 15,115 stores in the U.S. and Canada, while Walmart has 4,700 stores.

3) Five months of protests has brought Hong Kong’s economy into a recession with a sharp contraction in the third quarter. The economy is being driven completely by social events, so traditional economic measures to reverse a recession, such as cutting interest rates, should have little effect. So far, the city hasn’t seen significant capital outflow from the unrest, something many feared when protest demonstrations started. One major factor in determining if Hong Kong will recover is how soon mainland Chinese tourist will return. There is no signs of the protest coming to an end.

4) Stock market closings for – 31 OCT 19:

Dow            27,046.23    down    140.46 
Nasdaq         8,292.36    down      11.61
S&P 500        3,037.56    down        9.21

10 Year Yield:    down   at    1.69%

Oil:    down   at    $54.16

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