#EFRPod we are back @ it once more, Sammy BE @ecofiretv, James Lyman @obsoletepeople & on the boards Magic Jon Don Sterling @thedramablock . We are the EFR Podcast show live and direct in your area.
This episode #EFRPod, we had the dubious pleasure to interview an an established entrepreneur business consultant, author, and motivational speaker, who happens to write for business/entrepreneur publication, INC. Magazine and he has lectured on the TED Talks lecture series; his name is Mr. Damon Brown @BrownDamon .
Damon came on to discuss entrepreneur development, generational entrepreneurial leadership, future business leadership models, what it takes to be a leader in business and in life, and his life successes and failures, and how he was able to evolve in his business mentorship role, and help others to achieve their goals and life long dreams.
Online stock brokers TD Ameritrade, E*Trade & Charles Schwab have officially cut their online broker commissions to zero. Charles Schwab was the first brokerage, Interactive Brokers followed suit in cutting their commission rates, then came along TD Ameritrade and E*Trade.
Many online brokers are cutting their commissions to nil (0 zero), because of the climate that brokerages such as Robin Hood has had on the industry, allowing free trades of equities to their clients.
Since then other brokers have also cut their commissions to incur more of fairer playing field for their investors, traders and account holders. Many have speculated this was bound to happen at some point. Well, it looks like it has finally arrived. -SB
1) The retailer giant Amazon is expanding into the grocery business by leasing retail space across the Los Angeles area, signing leases for more than twelve locations. This is the first step of plans to open grocery stories across the nation. Amazon job postings are looking for people to work in retail concepts for a multiple customer experiences under one roof. Stores are reportedly to be about 35,000 square feet and intended to compete with big box stores such as Walmart, Target and Kroger.
2) The Institute for Supply Management says its manufacturing index dropped to 47.8 last month, the lowest since June 2009, below the forecast 49.1. Indexes below 50 indicate a contraction in manufacturing. Manufacturing accounts for 12% of the GDP (Gross Domestic Product), so a slowdown could effect other parts of the economy. Other indicators have shown output increased over last month.
3) Oil prices record its weakest quarter since late last year as fears over a global economic slowdown overshadowed the attacks on Saudi Arabia’s oil production facilities. Brent futures are down 8.7% since the end of June, despite the peak after the attacks. The price of oil is considered an economic indicator, since demand goes down as economies slow down, making more oil available, thus causing oil prices to decline.
4) Stock market closings for – 1 OCT 19:
Dow 26,573.04 down 343.79 Nasdaq 7,908.68 down 90.65 S&P 500 2,940.25 down 36.49
1) The crown prince of Saudi Arabia, Prince Mohammed bin Salman, has warned of astronomical oil prices if tensions escalate in the Persian Gulf. In a ‘60 Minute’ interview, the Prince called for strong and firm action to deter Iran and lessen the threat to world interests, so as to avoid disruptions of oil exports. The attacks on Saudi oil production facilities caused Brent crude to jump 19.5%, the biggest jump on record. The Middle East provides about 30% of the world’s energy supplies constituting about 4% of world GDP (Gross Domestic Product).
2) In order to avoid a quarterly decline in U.S. retail sales, automakers are offering big discounts to maintain sales growth. For the last three months, auto sales have flattened with average incentive spending rising 6% to more than $4,110 per vehicle, which is a third quarter record.
3) The fashion retailer Forever 21 Inc. has filed for bankruptcy protection and is the latest big fashion merchant who, like many other retailer chains, is unable to cope with high rents and heavy competition from e-commerce. The chain has 800 stores across the world, selling affordable but eye-catching designs, but has falling out of favor with the generation-Z consumers who turn to e-commerce. The bankruptcy will allow the company to reorganize and gain additional capital for operations.
4) Stock market closings for – 30 SEP 19:
Dow 26,916.83 up 96.58 Nasdaq 7,999.34 up 59.71 S&P 500 2,976.74 up 14.95
1) Saudi Arabia has restored 75% of its crude oil output and will have restored full production by next week. The September 14 attacks had reduced crude production to half, but promises that production will be fully restored by the end of September. The Saudis have managed to avoid a world wide oil crisis by drawing upon their stockpiles to continue supplying their customers at near pre-attack levels of crude.
2) The retailer giant Amazon plans to purchase 100,000 electric delivery vans from the company Rivian as part of its carbon neutral plan. Furthermore, Amazon announced plans to up its present 40% renewable energy to 100% by 2030. Rivian will design a custom electric delivery van for Amazon to be delivered between 2021 and 2024, who also has an agreement with Ford to develop an electric F-150 pickup truck. Amazon is also working to halt its support of the fossil fuel industry, stopping donations to climate denying politicians and think tanks, and stopping the oppression of climate refugees.
3) The British travel firm Thomas Cook has collapsed with bankruptcy, leaving about 600,000 customers stranded. The 178 year old group, which is debt plagued and struggling against fierce online competition for some time, is blaming Brexit uncertainty for the recent drop in bookings, and thus its inability to secure $250 million dollar loan to prevent collapse. This also leaves 22,000 staff members unemployed, with the British government chartering airlines to fly stranded passengers home.
4) Stock market closings for – 23 SEP 19:
Dow 26,949.99 up 14.92 Nasdaq 8,112.46 down 5.21 S&P 500 2,991.78 down 0.29
10 Year Yield: down at 1.71%
1) There are expectations that global growth will slow this year to a rate that can become a financial crisis. The Organization for Economic Cooperation and Development claims new data showing the US-China trade dispute is increasingly threatening the outlook of the two largest economies as well as others. Furthermore, the uncertainty from the Brexit and a possible crash out would further aggravate economic growth in the European sector.
2) Saudi Arabia is avoiding a global oil crisis by using the crude it holds in reserve until production can be fully restored. The Saudi’s claim necessary repairs will be completed in two to three weeks, thus restoring production levels prior to the attack. However, oil experts are skeptical that these repairs can be done in such a short period of time. This uncertainty is due in part from Saudi Arabia’s lack of transparence of their oil operations.
3) Good news for home owners, sales of used homes rose to its highest in more than a year, with the median price up 4.7% from last year to $278,200. This home sale bonanza is fueled in part by the low interest rates now available and by income gains. However, there are fears of a global economic slow down darkening this rosy picture in the near future. Presently, it would take 4.1 months to sell all the available houses, with realtors considering anything below a five month supply a tight market.
4) Stock market closings for – 19 SEP 19:
Dow 27,094.79 down 52.29 Nasdaq 8,182.88 up 5.49 S&P 500 3,006.79 up 0.06
1) World oil prices dropped sharply with Saudi Arabian source saying that their oil production could be fully back on line within weeks. This is far sooner than was initially assumed by world markets. Production may be back up in as little as two to three weeks. The attacks resulted in the largest single supply disruption in half a century.
2) Economists say the GM (General Motors) strike no longer has the economic impact that they once did. They assert it will take a lengthy shutdown to make a national impact. This is a result of GM’s market share shrinking while its work force is now smaller, in part because of automation. A prolonged strike could impact the economy by disrupting the supply chain effecting other industries. GM has shifted workers health care cost to the UAW (United Auto Workers) union, increasing pressure on the union for a quick settlement.
3) There are expectations that the Federal Reserve will lower interest rates on Wednesday for the second time in two months with another likely cut later this year. The consensus is the feds will drop the interest rate by about a quarter percent in an attempt to starve off the world economic slowdown from reaching America. Job growth has slowed and the index of manufacturing activity shows contraction, increasing fears that a recession will happen in the near future.
4) Stock market closings for – 17 SEP 19:
Dow 27,110.80 up 33.98 Nasdaq 8,186.02 up 32.47 S&P 500 3,005.70 up 7.74
1) The drone attacks on two Saudi oil refineries has caused a jump in world oil prices. The strikes wiped out half of Saudi Arabia’s output capacity leading to fears of de-stabilization of the world’s crude producing region and therefore to the world’s economy. Prices for oil leaped with the opening of markets on Monday, the biggest jump in prices ever. President Trump claims that Iran was behind the attacks and that a coalition should be formed to counter the threat of Iran. The strike was made using 10 drones with the disruption surpassing the Kuwaiti invasion by Saddam Hussein in 1990.
2) UAW (United Auto Workers) workers at GM (General Motors) have gone on strike which has shut down the automakers highly profitable U.S. operations. Lost production is expected to cost GM $40 to $50 million dollars a day. There are a number of issues which GM and union officials said must be resolved before a new contract can be signed. The UAW wants to block the closing of plants engaged in manufacturing of sedans, which the company and other manufactures are discontinuing as the market goes to SUVs and crossover automobiles.
3) Gold and silver prices have surged from the global turmoil of Saudi oil attacks. Gold and silver are the traditional safe haven for investors in times of uncertainty. This gives further impetus to lower the interest rates by a quarter point to counter a slide into a recession.
4) Stock market closings for – 16 SEP 19:
Dow 27,076.82 down 142.70 Nasdaq 8,153.54 down 23.17 S&P 500 2,997.96 down 9.43
1) A federal judge has ruled that investors may sue five big banks for conspiring to rig prices on bonds worth hundreds of billions of dollars issued by Fannie Mae and Freddie Mac for a seven year period. This clears the way for investors to pursue antitrust claims against Bank of America, BNP Paribas SA, Deutsche Bank AG, Goldman Sachs Group and Morgan Stanley. The banks are accused of fixing prices at a specific level before bringing the bonds to the secondary market.
2) The U.S. trade deficit narrowed overall slightly in July, however the gap with China surged to a six-month high. The trade tensions have caused wild swings in the trade deficit as exporters and importers try to stay ahead of the tariff fight between America and China. The Atlanta Federal Reserve is forecasting the economy growing at a 1.7% pace in the third quarter.
3) Oil dependent nations are facing economic troubles because gas and oil production are unsustainable. As oil and gas supplies dwindle and demand decreases, their once lucrative revenues may be decreasing. Nations whose economies are principally oil production face a trouble future as their oils supplies decline in the next few decades, with nothing to replace those revenues. Those nations facing economic troubles are the UAE, Nigeria, Qatar, Libya, Angola, Kuwait, Venezuela, Iraq and Saudi Arabia.
4) Stock market closings for – 4 SEP 19:
Dow 26,355.47 up 237.45 Nasdaq 7,976.88 up 102.72 S&P 500 2,937.78 up 31.51