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