28 June 2019

1) The Ford Motor company will eliminate 20% of its European workforce in a sweeping move to overhaul the manufacture’s falling sales. This will entail reducing its manufacturing facilities from 24 down to 18, with England, Germany and Russia the hardest hit. About 12,000 regular, staff and workers at joint ventures will be effected. Predicted deliveries for automobiles is down, as a result of Britain’s uncertainty from Brexit, with Ford’s European sales dropping 8.3% in May.

2) The crypto-currency Bitcoin having moved up over the last eighteen months to $14,000, suddenly drop 16%, down to $11,000. Bitcoin’s all time high was $20,000 reached in December of 2017, and is noted for it’s wild deviations of price over the last few years. Facebook just announced they are coming out with their own crypto-currency which may be a factor in Bitcoin’s sudden drop.

3) The Federal Aviation Administration has announced more safety concerns with Boeing’s 737 MAX just as the aircraft is being evaluated for software fixes designed to correct computer flight control systems. This system was responsible for two recent crashes with the death of all passengers and crew. Boeing’s stock dropped 3% Thursday as a result of added concerns for its star product, which the FAA is now evaluating software fixes with the expectations of finally getting its airliners airborne again. Boeing is presently parking completed 737 MAX aircraft in its car parking lots waiting for approval so they can make deliveries.

4) Stock market closings for- 27 JUN 19:

Dow           26,526.58    down    10.24
Nasdaq       7,967.76         up     57.79
S&P 500      2,924.92         up      11.14

10 Year Yield:    down   at    2.00%

Oil:     down   at    $59.28

27 June 2019

1) Ikea, the pioneer of inexpensive self-assembled home furniture is adapting its manufacturing and marketing methods to inexpensive housing. Sections for homes will be built in factories, then quickly assemble into ready to move-in houses. Bringing the factory manufacturing techniques to homes would significantly reduce the cost as compared to the hand built housing techniques now used. This could open the way to home ownership by the younger generations.

2) Despite the continual upsurge of the markets, Americans aren’t convinced the economy is doing well. A survey shows 39% of U.S. consumers believe the economy is ‘not so good’ or even poor. Lower income Americans are not doing as well as macro indicators would suggest, despite getting more raises recently. These gains don’t offset years of high unemployment and stagnant wages.

3) A huge drop in U.S. crude oil inventories and the outlook for demand has pushed oil futures prices up to near $60 dollars a barrel. Domestic stockpiles fell by 12.8 million barrels last week, the biggest drop in supplies since September 2016. In the past week, oil futures have jumped 10%, with the traditional expected increase in oil demand with summer driving. Gasoline reserves are further aggravated by the fire at Philadelphia Energy Solutions, the East Coast’s largest refinery.

4) Stock market closings for- 26 JUN 19:

Dow                    26,536.82    down    11.40
Nasdaq                  7,909.97          up    25.25
S&P 500                 2,913.78     down      3.60

10 Year Yield:    up   at    2.05%

Oil:    down   at    $59.21

26 June 2019

1) The problem of student loan debt is becoming more acuate. The effects of the $1.6 trillion dollar student loan debt, which represents about 8% of national income, is a massive burden, which has doubled since the mid 2000s. The consequences for massive student loans is that young people are delaying marriage and family formation, hampering the growth of small businesses, delaying the purchases of first homes, saving for retirement and in general reducing the discretionary income of young people. For a consumer based economy, all these spell an adverse overall effect on America’s economy.

2) The consumer confidence has fallen to its lowest level in 21 months with people more pessimistic about business and labor market conditions. Worries about recent increase in trade tensions between China and the United States further erodes consumer confidence. The consumer confidence index dropped 9.8 points to 121.5 for this month, the lowest since September 2017. While the index remains high, the drop has fueled fears of a continual downward slide reflecting a reluctance for consumers to make purchases other than essentials.

3) The British fund manager H2O, which had stellar returns with surging assets from clients buying in, last week clients starting pulling their money out. The investment manager lost $3.4 billion dollars in just three days. H2O is fighting back taking measures to assure investors the company can meet redemptions, but also making it more adverse for getting out. Their goal is to avoid fund freeze that has thrown other fund managers into chaos.

4) Stock market closings for- 25 JUN 19: Stocks decline after weak consumer confidence report.

Dow                 26,548.22    down    179.32
Nasdaq             7,884.72    down    120.98
S&P 500            2,917.38    down      27.97

10 Year Yield:    down   at    1.99%

Oil:    up   at    $58.77

26 June 2019

1) President Trump’s tax cuts could be undone a little at a time. Unlikely to repel his tax cuts directly, the Democrats could slowly undo them by an ‘end-run’ with new or other tax increases. The house Democrats have a package of tax legislation to be debated Thursday which proposes changes to the estate tax which would make it apply to more people sooner and making small increases to the corporate tax rate. Also, there are proposals to raise the tax rate to 70% for those earning over a million dollars.

2) Caesars Entertainment, who’s ownership includes the famous Caesars Palace in Las Vegas, is being bought by Eldorado Resorts for about $8.5 billion dollars in cash and stock. The plan is to build up their size to compete with larger companies such as Las Vegas Sands and Wynn Resorts. Caesars Entertainment owns and operates 34 properties in nine states and three continents.

3) Shale oil producing companies are pumping lots of oil, but are making little money. The process of fracking is an expensive procedure which requires high oil prices to be viable. As oil prices have sagged over the last couple of years, the margins have narrowed, forcing shale oil companies to more tightly control their expenses, including making extensive cuts in their labor force. Many of the older wells are failing to met expectations for production and oil companies have fewer future drilling locations than they anticipated. Shale oil wells initially produce a lot of oil and gas, but quickly taper off, so more money must be spent to coax the oil out of the rock, thus narrowing the margins.

4) Stock market closings for- 24 JUN 19:

Dow             26,727.54        up       8.41
Nasdaq         8,005.70    down    26.01
S&P 500        2,945.35    down      5.11

10 Year Yield:    down   at    2.02%

Oil:    down   a   t $57.79

24 June 2019

1) Gold, which is known as a ‘panic’ investment to guard against economic collapse, is passing $1,400 an ounce for the first time since 2013. Fueled by the fears of an international economic downturn and possible military action between Iran and the U.S., coupled with the large buying of gold by China, experts say that prices could reach $1,500 to $1,600 per ounce in the next year. Gold has historically been seen as a guard against devaluation of currencies.

2) Slack, the workplace messaging software used in tech and media companies, may be breaking the grip Wall Street has on Silicon Valley. The IPO’s of tech companies have been the controlling link of Wall Street on tech companies, but Slack used direct listing of its stock instead of the traditional IPO, thus cutting Wall Street out of the equation. This means that Wall Street isn’t able to tell companies what to do in becoming a public company.

3) Automation continues to cut into the job market with these ten career fields declining because of technology. The Telemarketer jobs are down 52%, followed by File clerks down 46%, Sorters of mail at 44%, Bill collectors down 39%, Data entry 36%, Order clerks 36%, Chief executives at 35%, Production worker helpers 30%, Installation, maintenance and repair helper 30% and finally Telecommunication line installer/repairers down 30%.

4) Stock market closings for- 21 JUN 19:

Dow                    26,719.13    down    34.04
Nasdaq                 8,031.71    down    19.63
S&P 500                2,950.46    down      3.72

10 Year Yield:    up   at    2.07%

Oil:    up   at    $57.60

STRICTLY BUSINESS, NOTHING PERSONAL: VLOG SERIES EP. #5: TALK SHOW BIZ

Strictly Business, Nothing Personal ep. #5: “Talk Show Biz

Sammy BE: @ecofiretv

Featured Actor: Logann Grace @loganngrayce

21 June 2019

1) Boeing has landed a$24 billion dollar contract from IAG SA, the owner of British Airways, to purchase 737 MAX airliners. Rival builder Airbus has vowed to fight the agreement since they never received an RFP (Request For Proposal) for making a bid on the contract. The secret negotiations between Boeing and IAG was the bomb shell surprise coming out of the Paris air show this week. This sale comes as a major endorsement to Boeing’s 737 MAX to reestablish Boeing as a major supplier of airliners.

2) The price of crude oil shot up 5% over news that Iran has shot down a American drone aircraft, fueling additional fears of a US-Iran military confrontation. The drone was shot down by a surface to air missile while flying over international airspace of the Strait of Hormuz. This is another move by Iran to control the seaway and thus control the flow of oil in an effort to force the U.S. to abandon its crippling economic sanctions.

3) The cost of opening a major fast food franchise in terms of liquid assets can be as much as a million dollars or more. You must have $500,000 cash to open a McDonald’s, $750,000 to open a Taco Bell and $2 million dollars to open a Wendy’s. Startup costs exceed a million dollars for most major fast food chains in America, with additional monthly fees for royalties, advertising and services, which can add up to 10% of gross sales.

4) Stock market closings for- 20 JUN 19:

Dow            26,753.17    up    249.17
Nasdaq         8,051.34    up      64.02
S&P 500        2,954.18    up      27.72

10 Year Yield:     down   at    2.00%

Oil:    up   at    $57.16

20 June 2019

1) The $800 billion dollar trucking industry is in a slowdown as retailers and manufacturers are shipping less. Freight rates have declined for the last six months with the spot market dropping 62.5% for May verses last year. Already, a few major trucking firms have gone bankrupt, with one laying off 550 employees. Even the major trucking companies FedEx, UPS and J.B. Hunt have experienced declines sparking fears of a slowdown of the economy.

2) Harley-Davidson is making good its promise to build more motorcycles outside the United States by partnering with China’s Qianjiang Motorcycle to produce smaller motorcycles. The new bike will have a 338 cubic centimeter engine verses the 601 cc engine for its domestic motorcycles. Harley-Davidson is trying to boost its overseas sales as its domestic market shrinks.

3) Expectations for future global growth and corporate profits have shrank as investor confidence continues to decline amid the trade war. Concerns of an economic slowdown further fuel fears of investors for the demise of global growth, despite America’s stock market now trading near its record high. Global profit expectations fell by the second largest amount on record. The giant retailer Walmart announced they will be laying off nearly 600 employees later this year.

4) Stock market closings for- 19 JUN 19:

Dow                 26,504.00    up    38.46
Nasdaq              7,987.32    up    33.44
S&P 500             2,926.46    up      8.71

10 Year Yield:    down   at    2.03%

Oil:    up   at    $54.14