1 October 2020

1) After two previous recalls for Mustangs and Super Duty pickups, Ford has announced a third recall of nearly every new vehicle it sells today, a total of about 620,246 vehicles for dysfunctional (blank picture) backup cameras. All 2020 models are being recalled, the Ford Explorer, F-150 pickups, Mustang, Transit, Super Duty pickups, Expedition, Escape, Range and Edge. The only exception is the Ecosport. All have defective back up camera systems that can go dark or have a flickering image. Backup cameras are federally mandated, and therefore Ford vehicles don’t comply with Federal Motor Vehicle Safety Standards and therefore must be repaired.
2) Disney has announced it is laying off 28,000 employees in the U.S., a direct result of the pandemic’s effects on its theme parks. The laid-off employees comprise 67% of their part time workers and will affect Disney’s Parks, Experiences and Products unit. The parks and resorts division has more than 100,000 U.S. employees. On shutting down its theme parks globally this spring, Disney’s profits dropped a whopping 91% for the first three months of 2020. The theme parks have been impacted, a result of the limited capacity from physical distancing requirements and the continued uncertainty of the duration of the pandemic.
3) Nigeria is overhauling its State Oil Company and may sell a stake in the company. Nigeria is Africa’s biggest crude oil producer so the sale of shares is a big deal. The Nigerian government seeks to establish a commercially oriented and profit driven national petroleum company, which generates about half of the government’s revenue and more than 90% of its export earnings. The company has for years been a tool for political patronage to cronies, with its closed operations fueling corruption. Being a publicly traded company sheds the cloak of secrecy by opening the books for inspection thereby making corruption more difficult and likely to be detected.
4) Stock market closings for – 30 SEP 20:
Dow 27,781.70 up 329.04
Nasdaq 11,167.51 up 82.26
S&P 500 3,363.00 up 27.53
10 Year Yield: 0.68% up 0.03
Oil: up at $39.86