1) Boeing aircraft has not received any new orders for their 737 MAX in six months. This could give Boeing’s competitor Airbus a major market advantage having made 389 commercial plane deliveries in the same six months, making Airbus the largest supplier of this market segment with its A320 design. The grounding of the 737 MAX has forced Boeing to park completed aircraft to await its air worthiness to be restored.
2) Signs of inflation are increasing as U.S. consumer prices increased broadly in July. Expectations are for the Federal Reserve to again cut interest rates next month as much as half a percentage point in September. Continue trade tensions between China and America out weight fears of inflation so interest rates will continue to remain low, if not go lower.
3) Fears grow that protests in Hong Kong, which have persisted for the last two months, could have a lasting detrimental effect on U.S. and global markets. Hong Kong operates with a high degree of autonomy from China, having its own currency and judiciary system. This is fueling the rising concerns of investors of a major violent eruption of conflict between Hong Kong and main line China, coupled with concerns over U.S. – China trade war and the total impact on the world markets. With Hong Kong a financial hub, an invasion by Chinese troops with sever repressive measures on the people could disrupt other markets across the world. Furthermore, violence with loss of life could make it impossible for President Trump to resolve differences with China.
4) Stock market closings for – 13 AUG 19:
Dow 26,279.91 up 382.20 Nasdaq 8,016.36 up 152.95 S&P 500 2,926.32 up 43.23
1) Royal Dutch Shell is building a 386 acre chemical plant to make bulk plastic. The construction project is one of the largest active construction projects in America employing over 5,000 people. The plant has hundreds of miles of pipelines to feed it petroleum and will have its own rail system with 3,300 freight cars. The new plant is expected to produce a million tons of plastic pellets each year.
2) Saudi oil company Aramco is buying a 20% share in Reliance Industries Ltd of India an oil to chemicals business. This will include the 1.24 million barrels a day Jamnagar refining complex. This is part of Aramco plan for refinery investments to double its processing network and handle as much as 10 million barrels of oil a day by 2030. Reliance has agreed to purchase 500,000 barrels of crude a day over the long term.
3) The IMF (International Monetary Fund) has warned that addition tariffs in the trade war will sharply cut Chinese growth. The IMF has already forecast a 6.2% decline in China’s growth for this year, which assumes no new tariffs. They forecast a sharp cut in China’s growth if the additional tariffs threaten are imposed on the first of September. President Trump has cast doubts on a trade deal, and indicated he might cancel the trade talks scheduled for September.
4) Stock market closings for – 12 AUG 19:
Dow 25,897.71 down 389.73 Nasdaq 7,863.41 unchanged 0.00 S&P 500 2,883.09 down 35.56
1) Disney, the owner of the Star Wars franchise rights, is finding that today’s kids are not as interested in Star Wars as previous generations have been. While the last of the trilogies have turned a profit, they have not met the success of previous movies. Purchased from Lucasfilm Ltd in 2012 for $4.05 billion dollars, Disney is worried about the long term profitability of the franchise. It’s newly opened attraction Star Wars theme-park hasn’t meet expectations, indicated the young are not entranced by the intergalactic saga.
2) Gold continues to increase in value as more jittery investors flee traditional havens for money, to the supposed safety of gold ownership. With gold now at $1,500 per ounce, it is outperforming stocks this year. Concerns over the world economy from uncertainty of the U.S. and China trade war, China’s currency, oil and repercussions from political hot spots across the world have all combined to form a economic climate of fear and uncertainty. All foretell of a global slow down in growth, and as always the case, gold provides safety better than money in economic hard times.
3) A federal judge has ordered litigation over defective General Motors ignition switches to be narrowed in claims by owners. Owners claimed they lost value in their vehicles because of the defect, but the judge ruled the owners have failed to show the value of their vehicles has declined as a result of the defect. Instead, damages could only be measured by costs to repair defective vehicles, which is zero if GM paid for repairs. This defect is linked to 124 deaths.
4) Stock market closings for – 7 AUG 19:
Dow 26,007.07 down 22.45 Nasdaq 7,862.83 up 29.56 S&P 500 2,883.98 up 2.21
1) There are fears that the deepening China and American trade war may severely effect the fragile oil market. The tariffs increases has already send oil prices spiraling down over concerns of a sever global economic slowdown or recession. But China could use oil as an economic weapon by purchasing vast quantities of oil from Iran thus driving oil prices down from $60 to as low as $40 while also undermining President Trump’s foreign policy.
2) Gold, always a panic investment from economic fears, is again attracting investors with its prices pushing upward. With the devaluation of the Chinese money and threats that the U.S. might follow suit, investors are worried about the value of other monies sliding down. Fears of what will happen to the Euro and British Pound with a ‘no deal’ exit, coupled with European government bonds rates that are so low, is further attracting investors to gold. Hence, investors are migrating to the traditional safe heaven of gold.
3) In an attempt to further push into the Nordic markets, payment processor Mastercard Inc will buy the majority of the corporate services businesses of Scandinavian payments group Nets. The financial technology sector is consolidating fast as more people switch from cash to digital payments, both on line and on the street. The $3.19 billion dollar deal gives Mastercard further clearing and instant payment services plus e-billing solutions.
4) Stock market closings for – 6 AUG 19:
Dow 26,029.52 up 311.78 Nasdaq 7,833.26 up 107.23 S&P 500 2,881.77 up 37.03
1) The once high flying German Deutsche Bank has run aground rapidly slashing jobs and losing a ton of money. Stock for Germany’s biggest lender is trading at a near all time low. This is a result of poor management and failing to fully clean up its crisis era balance sheet. The banks restructuring efforts have fell short coupled with countless legal black eyes that have all contributed to the bank’s financial woes.
2) The pharmaceutical companies Pfizer and Mylan have announced they are combining to create a global powerhouse in the low price drug market. Pfizer will gain most control of the company with 57% ownership, with Mylan shareholders owning the rest. Both companies lost exclusive manufacture rights from patent expirations, that were big money makers for the companies. Mylan, is the manufacturer of the emergency treatment for allergic reactions, the EpiPen. Mylan has recently been in the news for raising the price of EpiPens by 400%.
3) J.C. Penney, the 117 year old department store chain, is at risk of being de-listed from the New York Stock Exchange. To counter its downward spiral, the company has hired advisers to explore debt restructuring. Penney has $4 billion dollars in debt coming due in the next few years, while its revenues are increasingly being lost to sales on the internet and niche brands. Revenue has fallen over the last three years. The retail giant Sears has suffered similar troubles.
4) Stock market closings for – 29 JUL 19:
Dow 27,221.35 up 28.90 Nasdaq 8,293.33 down 36.88 S&P 500 3,020.97 down 4.89
And Yes We’re Back Like Never Before. It’s the EFR Podcast Show featuring me (Sammy BE/Bizman Bassey) @EcoFireTV, James Lyman @ObsoletePeople & on the boards Jon Don Sterling @TheDramaBlock.
On this episode #33, the group interviewed social media manager Keith Dorsey @YoungGunsCEO. He happens to assist managing the careers of online mega stars such as RobbiiWorld, Hollywood Dollz & Woah Vicky.
came on the show to discuss social media presence, online platforms,
attaining a lucrative online following and base, as well as productive
advise for young entrepreneurs, trying to thrive in media… This is an
episode you got to listen to…..
Etsy has stated that it will be aquiring Reverb for $275 million. Reverb is the musical instruments online platform.
Reverb considered to be one of the world’s leading marketplaces for musicians; was created in 2012, in Chicago, IL. The platform is one of the leading musician websites, curated for musicians by musicians.
Etsy which is based in NYC, has recently been aquiring new media businesses but nothing of an aquisition in this caliber. With this acquisition new things shall arise in the music front. -SB
1) Managing Director Christine Lagarde of the IMF (International Monetary Fund) announced her resignation to become the next head of the European Central Bank. Her resignation from the global lender will be effective the twelfth of September. Lagarde’s second five year term as Managing Director of the IMF was not due to end until July 2021.
2) The pizza giant Domino’s Pizza is seeing its business eroded by food-delivery startups. Second quarter financial reports shows Domino’s sales fell short of analyst estimates causing its stock to drop as much as 7%. Services like GrubHub, DorrDash and EuberEats are cutting into Domino’s food-delivery business in recent years, a result of aggressive promotions and discounts, with Domino’s countering by speeding up its delivery time and expanding number of locations.
3) The electronic news magazine ‘60 Minutes’ had an interview this last Sunday with venture capitalist Kai-Fu Lee about the future of artificial intelligence and China’s efforts to dominate the emerging AI markets. Mr. Lee estimates that in the next fifteen to twenty-five years about 40% of the jobs will disappear from technology displacement. This is in keeping with the recent Osborne Report forecasting that as much as 47% of the jobs will disappear in the next 20 years. An example is the Navy has mandated that new ship designs must use automation to reduce crew sizes by 20%.
4) Stock market closings for – 16 JUL 19:
Dow 27,335.63 down 23.53 Nasdaq 8,222.80 down 35.39 S&P 500 3,004.04 down 10.26
1) America now has such a surplus of natural gas, that it’s being burned off instead of sold and used. The problem isn’t a lack of a market to sell to, rather it is insufficient distribution infrastructure. There isn’t enough pipeline capacity to get the gas from the oil fields to customers. In West Texas, enough gas is burned off each day to fuel every house in Texas. Natural gas prices are negative in some areas as producers pay people to take the gas off their hands.
2) The international banking giant Deutsche Bank is getting out of the investment banking by closing its equities business. This restructuring will result in posting a $3.1 billion dollar loss for the second quarter and an overall loss of $8.3 billion dollar into 2022. Additionally, there will be a loss of 18,000 jobs or one fifth of their labor force.
3) The summer labor force of teenagers is shrinking as American youth opt for summer school and extracurricular activities. Only about 40% of highschool age kids are working during their summer vacations, compared to more than 60% in the twentieth century. This leaves businesses with a dilemma of find enough workers, especially those business which are more active in the summer months and need that extra short term labor boost. Much of this shift is because of increased emphasis on education for the young, who opt for summer school and summer college prep programs instead of earning some pocket money.
4) Stock market closings for- 8 JUL 19:
Dow 26,806.14 down 115.98 Nasdaq 8,098.38 down 63.41 S&P 500 2,975.95 down 14.46