1) General Chuck Yeager, died at age 97, was remembered Monday as America’s greatest Pilot in a tweet attributed to his wife, Victoria Scott D’Angelo. After breaking the sound barrier, Yeager continued to break records and returned to combat. He was a double ace with 11.5 aircraft shot down and became an ‘ace in a day’ by shooting down 5 or more aircraft in a single day. After World War II, in 1947, he became the first man to fly faster than the speed of sound by flying the Bell X-1. In 1953 he flew more than 1,600 mph in the Bell X-1A. He also flew combat missions in both the Korean and Vietnam wars. Chuck Yeager had flown 361 different types of aircraft and flew 10,131.6 hours during his career, retiring from the Air Force in 1975.
2) With just 24 days to make a deal, the Brexit negotiators are finding the situation very gloomy for a trade deal, with talks now on a ‘knife’s edge’ again. The British and European teams are struggling to craft a free-trade agreement so the two sides can continue the orderly movement of goods and services across the English Channel. Otherwise, Britain and Europe will enforce new customs duties, tariffs, border checks, and quotas on goods, therefore increasing prices and fully ending the era of the free and frictionless trade. The major obstacle is the European access to fish in British waters, despite the fisheries accounting for just a small fraction of Britain’s gross domestic product. The Europeans are also pressing to maintain a “level playing field,” to keep Britain from undercutting worker protections or granting large state subsidies to British businesses, thus giving the U.K. firms unfair advantages.
3) Oil prices fell from a 9-month high while the dollar strengthened. Consumption in Asia remains robust, while other markets are soft or declining. Crude oil prices now look to be heavily dependent on how quickly Covid-19 vaccines can be rolled out. OPEC+ is facing more potential supply challenges, with Libya continuing to ramp up production while Iran prepares to raise oil exports with expectations that America will ease some sanctions under a Joe Biden presidency.
4) Stock market closings for – 8 DEC 20:
Dow 30,173.88 up by 104.09
Nasdaq 12,582.77 up by 62.83
S&P 500 3,702.25 up by 10.29
10 Year Yield: down at 0.91%
Oil: down at $45.60
By: Economic & Finance Report
Pfizer has announced their Covid-19 study on a medication they are beta testing has come back from their lab studies; with a 95% effective accuracy rate in trial testing.
Pfizer has been working with BioNTech (German based biotechnology company) on developing a Covid-19 vaccine as fast and accurately as possible. Both companies have indicated they have met those objectives. They are seeking to attain emergency clearance from the United States and European Union, to be able to distribute the vaccine as soon as possible. -SB
Image Credit: UsaNews.com
1) The White House considers the chances for passing a pandemic aid deal before the elections as being slim. The prime reason is considered to be House of Representatives Speaker Nancy Pelosi who is seeking too much, including stimulus checks for immigrants who are in the United States illegally. The White House has said aid to state and local governments has been another sticking point, while Democrats cite the lack of a national coronavirus testing plan. President Trump supports another major relief package, but he and Pelosi have been unable to reach a deal. America is facing a resurgence of Covid-19 cases, with 36 out of the 50 states seeing an increase for at least two weeks in a row. Deaths from the respiratory disease have also more than doubled in seven states.
2) Pacific Ethanol (NASDAQ: PEIX) transformed its business from a low-margin maker of gasoline additives into a high-margin producer of alcohol for disinfectants and hand sanitizers, a result of the coronavirus which is the reason Pacific Ethanol stock soared more than 1,300% over the past year. Pacific Ethanol announced it will change its name to reflect its new corporate focus on the production of specialty alcohols and essential ingredients for the fight against the coronavirus. The company also decided to release a large secondary stock offering which appears to have depressed its stock price. Additionally, for a company whose production has been largely for gas tanks, the decrease in gasoline demand has shrunk its historic market.
3) The troubles brought onto American airlines by the pandemic isn’t limited to just U.S. air carriers. The Saudia airline faces claims over 50 leased Airbus planes with additional demands for other damages and costs, as documents seen by Reuters show. Fifty aircraft, which account for a third of Saudia’s fleet, worth around $8.2 billion dollars, were bought by International Airfinance Corporation (IAFC) and leased to Saudia. But apparently Saudia has failed to pay basic rent, after it sought to reduce its rent payments while also engaging in un-authorised and un-notified engine and part swaps. Therefore, IAFC is seeking restitution in London courts.
4) Stock market closings for – 27 OCT 20:
Dow 27,463.19 down 222.19
Nasdaq 11,431.35 up 72.41
S&P 500 3,390.68 down 10.29
10 Year Yield: down at 0.78%
Oil: up at $38.93
1) Delta Airlines is expecting to spend up to $3.3 billion dollars on buyouts and early retirements in an effort to slash their labor cost. So far, 17,000 employees have signed up to leave the company because there is little in sight for the pandemic’s impact to end soon. The company is prohibited from laying off workers through 30 September under the terms of the $25 billion federal aid package met to support employee payroll. Delta has roughly 91,000 employees so this is a 19% reduction in their work force. The separation packages include cash severance, extended health care benefits and free flights. Other airlines are offering similar packages in an effort to reduce their work force.
2) Heritage Brands, an anchor of outlet malls across American, is closing all of its 162 stores starting next year. PVH Corp, which owns such brand names as Calvin Klein and Tommy Hilfiger, blames the closure on a combination of changing shopping habits of people and the Covid-19 pandemic. This will result in a 12% reduction in jobs or about 450 employees, saving the company $80 million dollars annually. The company had a 43% drop in revenue because of the impact of the coronavirus.
3) There are growing fears of an environmental disaster erupting in the Red Sea on the coast of Yeman. An abandoned oil tanker with 1.1 million barrels of crude oil, is beached on the coast of Yeman, with the potential to explode or rupture causing major environmental and humanitarian damage in the area. UN officials are trying to gain access to the ship to assess the tanker’s condition, conduct any possible urgent repairs and make recommendations for extraction of the oil, but the area is controlled by Houthi rebels. The danger is from sea water entering the ship’s interior causing rust and loss of structural integrity plus the inert gas that prevents the tanks from gathering inflammable gases has leaked out, so there is the threat of an explosion. To start with, an oil spill could result in 126,000 Yemeni fishermen losing their source of income.
4) Stock market closings for – 15 JUL 20:
Dow 26,870.10 up 227.51
Nasdaq 10,550.49 up 61.92
S&P 500 3,226.56 up 29.04
10 Year Yield: up at 0.63%
Oil: up at $41.04