15 March 2019

1) GE (General Electric) paid $1.5 billion dollars civil penalty for sub-prime house loans prior to 2007, to resolve claims over residential mortgage loans made by their WMC Mortgage unit, a company purchased by GE during the boom prior to the economic collapse in 2008. Their lending activities concealed the poor quality of the loans being made.

2) The Chevron oil company is buying the Anadarko Petroleum Corporation for $33 billion dollars which will put Chevron Corporation in the top ranks of energy companies. Chevron will be the third largest oil producer behind Exxon and Shell.

3) The GE20 group announced the global economy is slowing down faster than was expected, with an anticipated global growth of 3.3% for this next year. This is the lowest expansion since 2016, which may become worst if US-China trade tensions should increase.

4) 12 APR 19 Stock market closings: JP Morgan-Chase and Disney pushed stocks up.

Dow             26,412.30    up    269.25
Nasdaq          7,984.16    up      36.80
S&P 500         2,907.41    up      19.09

10 Year Yield:    up   at    2.56%

Oil:    down   at    $63.76

12 April 2019

1) The ride service Uber’s long awaited IPO (Initial Public Offering) filing is being watched for. The IPO is coming just two weeks after Lyft’s IPO. Uber and Lyft have been running neck and neck in competition in the rider market.

2) Signs that the US economy is strengthening is indicated by the number of new jobs rebounding from February with 196,000 new jobs in March. The unemployment rate held steady at 3.8%, while consumers spending is also accelerating, another sign that the US economy is regaining momentum..

3) Disney corporation is entering the streaming competition against Netflex. The streaming service will be called Disney Plus. Right now, Disney also owns 60% of the Hulu streaming service. Disney Plus is coming out just when Netflix announced its price increases plus it’s the lowest cost of any of the streaming services.

4) 11 APR 19 Stock market closing:

Dow           26,143.05    down    14.11
Nasdaq        7,947.36    down    16.88
S&P 500       2,888.32          up      0.11

10 Year Yield:     up   at    2.50%

Oil:      down   at    $63.71

11 April 2019

1) Boeing has not received any new orders for its 737 since its grounding, in addition, Boeing has had 100 cancellations of orders. Its stock is down 19%, but worst its stockholders have filed a law suit against Boeing claiming the company has defrauded its investors because Boeing failed to disclosed safety issues concerning their 737 MAX-8.

2) British Prime Minister May has asked the EU (European Union) for a second extension. Britain will be leaving the EU this Friday if an extension is not granted, so the EU held an emergency summit to consider warnings that a crash-out might cause a recession. Last reports are that the EU will grant an extension to 31 October this year.

3) The ECB (European Central Bank) will leave interest rates steady, forecasting no change for 2019. The ECB is being forced to backtrack on its tightening monetary policy as signs of a world economic slowdown are increasing.

4) 10 APR 19 Stock market closing:

Dow            26,157.16     up     6.58
Nasdaq         7,964.24     up   54.97
S&P 500        2,888.21     up   10.01

10 Year Yield:    down   at    2.48%

Oil:   down   at    $64.47  0.14

10 April 2019

1) The IMF (International Monetary Fund) has reduced their forecasted for world economic growth from 3.5% to 3.3%, which is the third reduction since last October. It forecasted 2.3% growth for the US economy, as well as reduced growth forecast for Germany and Great Britain.

2) Walmart is rolling out thousands of robots for use in their retail stores across America. These robots will automatically scan shelves and clean floors. With a million employees, Walmart is seeking ways to keep labor cost down.

3) Bank of America is raising it’s minimum wage to $20 an hour over the next two years. Starting the first of May, the rate will increase to $17 per hour. The bank has 205,000 employees.

4) 9 APR 19 Stock market closings: Markets pulled down by industrial sector.

Dow             26,150.58    down    190.44
Nasdaq          7,909.28    down      44.61
S&P 500         2,878.20    down      17.57

10 Year Yield:    down   at    2.50%

Oil:    up   at    $64.24

9 April 2019

1) In ten years, the US debt to GDP ratio will be equal (100%). The debt to GDP ratio is presently 78%, the highest since the end of World War II, but it’s anticipated to be 96% by 2028. To bring this into perspective, countries with sever economic problems such as Greece have a ratio of 188%, Italy 130%, Portugal at 120% and Spain with 97%. On the positive side, Germany has a ratio of 59%. The IMF is warning of the problem for America if the ratio is left to continue as is. A high ratio hinders a government’s ability to counter any economic downturn. America’s entitlements is the principle cause for the increase, because when Social Security was started, there were 16 workers to support each retiree, now there are just 2.6 workers.

2) European Union borrowers are eager to see how a Brexit extension will effect markets, by possibly reducing the uncertainty that Brexit has brought on. This spring, the IMF and World Bank will be meeting for their annual conference on world economic matters.

3) Tesla, the maker of electric automobiles, is starting its new quarter with another round of cuts of sales staff following poor deliveries. The company is closing some of it’s show rooms in favor of online sales. These actions are rattling investors by stoking confusion.

4) 8 APR 19 Stock market closing:

Dow                          26,341.02     down     83.97
Nasdaq                       7,953.88           up     15.19
S&P 500                      2,895.77           up       3.03

10 Year Yield:    up   at    2.52%

Oil:    up   at    $64.46

8 April 2019

1) The European Union has offered to extended the exit date in an effort to avoid a unplanned crash-out. Prime Minister May asked for an extension to 30 June, but the EU countered with a offer for a one year extension, which could be terminated early if an exit plan is agreed upon before the one year is up.

2) Samsung has forecast the lowest quarter profits in more than two years. The first quarter outlook looks ugly with a 15% decline from last years first quarter. The poor performance is a result of poor semiconductor sales coupled with a slowing growth in the smart phone market.

3) New jobs in March is six times that of February. The US added 196,000 new jobs, many claiming this indicates solid growth in the economy, and therefore the economy is doing just fine. But some worry about the unemployment rate holding steady, because an upturn in the unemployment rate usually signals a recession in the near future.

4) 5 APR 10 Stock market closings:

 Dow           26,424.99     up    40.36
Nasdaq        7,938.69     up    46.91
S&P 500       2,892.74     up     13.35

10 Year Yield:     down   at    2.50%

Oil:    up   at    $63.26

HERMAN CAIN TO BE NOMINATED FOR FEDERAL RESERVE POST…….

Image Credit: Wikipedia.Org

By: Economic & Finance Report

President Trump is set to nominate Herman Cain for the US Federal Reserve Board of Governors.

Herman Cain was a former presidential candidate in 2012. He also served as chairman of the Kansas City Federal Reserve Board. His business background includes being the President/CEO of Godfather Pizza, CEO of National Restaurant Association, and being on boards such as Nabisco, Whirlpool, & Reader’s Digest.

Mr. Cain to be on the Fed Board, would have to pass an extensive background check and Senate confirmation process.-SB

5 April 2019

1) German economic forecast for growth has been reduced as foreign industrial orders fall. Last year, Germany narrowly skirted a recession. The forecast for economic growth was reduced from 1.8% down to 1.0% due to slower global economic growth and the uncertainties from Brexit.

2) There are about 54,000 bridges in America which need urgent repair, and it’s estimated it will take 80 years to rebuild them. The report by the American Road and Transportation Builders Association says that about 9% of the highway bridges are deficient with 174 million vehicles crossing each day. On a rating scale of 0 to 9, a rating of 4 or below is considered deficient.

3) Oil prices briefly topped $70 for the best grade of crude oil, but was unable to hold because of signs of tightening global supplies plus uncertainty over world economic outlook. Prices were pushed up by forecast of declining OPEC exports.

4) 4 APR 19 Stock market closings:

Dow           26,384.63          up     166.50
Nasdaq        7,891.78     down        3.77
S&P 500       2,879.39           up        5.99

10 Year Yield:    down   at    2.51%

Oil:    up   at    $62.18