1) Two of the largest Wall Street banks are trying to create an index to track the market impact of President Trumps’s tweets. J.P. Morgan Chase and Company has created an index to quantify the effects on U.S. bond yields. Citigroup Inc.’s foreign exchange team consider Trump’s tweets increasingly relevant to foreign exchange moves. Approximately 10% of the president’s tweets since his election in 2016 pertain to subjects of importance to U.S. markets.
2) The Elliott Management Corp. offers a plan to boost the share price of AT&T by more than 50% through asset sales and cost cutting. The four part plan calls for the company to divest assets including satellite-TV provider DirecTV, Mexican wireless operations, parts of its land line business and other assets. The bases for the plan is for AT%T to exit businesses that don’t fit its strategy as well as running more efficient operations, plus stop making major acquisitions.
3) China has added almost 100 tons of gold to its reserves since resuming buying in December. Bullion is near a six year high as central banks including the Federal Reserve cut interest rates. Trade war restrictions as with China, or sanctions as with Russia, gives an incentive for central banks to diversify, with gold providing an ideal hedge with increasing political and economic uncertainty. Spot gold was $1,510.27 an ounce on Monday, and is expected to rise to $1,600 an ounce in the coming months.
4) Stock market closings for – 13 SEP 19:
Dow 27,219.52 up 37.07 Nasdaq 8,176.71 down 17.75 S&P 500 3,007.39 down 2.18
1) News for budding entrepreneurs. Each year, roughly 30,000 new consumer products are introduced to the market place, but 95% of them fail. The primary reason for failure is lack of preparation, of not understanding the ‘product life cycle’. The life cycle is the time from inception to obsolescence the product experiences. As a product goes through its life cycle, the sales and profit margins will fluctuate, so you must adjust your marketing mix accordingly. The subject is complex and extensive, and a new entrepreneur should spend time researching and understanding the topic before investing in a new product venture.
2) AT&T and Microsoft announced they have agreed on a cloud deal worth more than $2 billion dollars. AT&T will use Microsoft’s Azure cloud service for its computing needs and Office 365 software for its 268,000 people. Additionally, the two companies will work together on edge computing with Microsoft technology deployed alongside AT&T’s up coming 5G network and applications requiring extremely small delays in passing data back and forth such as real time control systems applications.
3) The debt of America is about to hit a record high, a result of cheap money and soaring debt, which has fueled the decade long economic expansion and bull market. There are raising fears of what could happen if there is a shift in the fragile economic balance. The total American debt, both public and private amounts to nearly $70 trillion dollars, with the economy about $21 trillion dollars in size. Difficulties could arise if America should experience a recession with both government and private sectors having trouble meeting their repayments.
4) Stock market closings for – 17 JUL 19: Disappointing quarterly reports pulled the markets down.
Dow 27,219.85 down 115.78 Nasdaq 8,185.21 down 37.59 S&P 500 2,984.42 down 19.62
1) The FCC (Federal Communications Commission) ruled in June that carriers can block robocalls for customers without them having to sign up for the service. So AT&T will enable its Call Protect service without the customer asking for it. Call Protect does three things, 1) detects and blocks fraudulent calls entirely, 2) flags telemarketers and spam calls, and 3) maintain a personal block list.
2) Walmart reports that China’s factories are now getting urgent and desperate, as concerned U.S. retailers accelerate moving out of the country. They predict that China will see more factory shutdowns as the trade war continues. Suppliers of retail goods from Asia are under increasing pressure to shift their sources to manufactures in other countries at a time when their margins are already very thin.
3) Airline giant American Airlines is having a nightmare summer with a cancellation rate eighteen times higher than Delta Airlines. Labor disputes with alleged slowdowns and adverse weather are major problems the airline faces in trying to maintain its customer base, something hard to do when 7,500 international and domestic flights are canceled with resulting loss of revenues. There are added financial losses in paying compensation, hotel and restaurant cost to stranded customers.
4) Stock market closings for – 10 JUL 19:
Dow 26,860.20 up 76.71 Nasdaq 8,202.53 up 60.80 S&P 500 2,993.07 up 13.44
New article posted below titled, “NIGERIADECIDES: BABA MUHAMMADU BUHARI REELECTED AS NIGERIA’S PREZ.”
1) The takeover of Time Warner by AT&T, an $81 billion dollar acquisition, has been cleared by the US Appeals Court. This acquisition will bring Warner Brothers, HBO and Turner to AT&T’s video, mobile and broadband services.
2) US farm debt soars to levels that haven’t been seen since the 1980’s farm crisis. The debt has risen from $385 billion dollars to $409 billion dollars which indicates a high strain on the US farm belt, a result of commodity prices, storm damage and loss of key exports principally China. The present day situation is similar to 1980’s financial collapse of American farms.
3) China-US are making real progress in trade talks, but the talks are far from being completed. US is taking a tougher stand by insisting on an all or nothing agreement.
4) 27 FEB 19 Stock market closings:
Dow 25,985.16 down 72.82 Nasdaq 7,554.51 up 5.21 S&P 500 2,792.38 down 1.52