5 November 2019

1) Saudi Arabia has started its long anticipated IPO (Initial Public Offering) of Aramco, the Saudi state run oil giant. A sliver of the firm will be offered on a local stock exchange with the intent of raising billions of dollars for the kingdom. Initially, the firm’s shares will be traded on Riyadh’s Tadawul stock exchange, but later shares will be offered on foreign exchanges. Aramco is valued at $2 trillion dollars, with first and second quarter income of $46.8 billion dollars.

2) The high end luxury retailer Barneys of New York fell into bankruptcy, parts sold off as scrape to end an era. The retailer introduced such names as Armani, Alaia, Comme des Garcons, Louboutin and Zegna. The name Barneys was taken control of by Authentic Brands Group, a name which is part of the New York culture since 1923, and will license it to other companies like Saks Fifth Avenue. Next week, the company’s inventory at its five stores and two warehouse locations will be sold.

3) Predictions for 2020 investors include a recession, questions of interest rate cuts, market volatility, impact of the up coming election cycle, Brexit, earnings growth, low unemployment, mild inflation and wage growth. Each of these uncertainties can play a part on the ultimate outcome for the 2020 economy with interactions of them making the future economy uncertain for investors.

4) Stock market closings for – 4 NOV 19:

Dow           27,462.11    up    114.75
Nasdaq        8,433.20    up      46.80
S&P 500       3,078.27    up      11.36

10 Year Yield:    up   at    1.79%

Oil:    up   at    $56.45

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