1) Despite the economic failure of the first supersonic airliner, the French-British Concorde, there are now attempts to revitalize the supersonic airline service. Boom Supersonic has unveiled its first demonstrator aircraft called the X-B1, which is scheduled to start flight testing next year. The demonstrator is planned as a commercial stepping stone to an actual commercial supersonic airliner to transverse the Atlantic ocean in about three and a half hours- about half the present flight time. Plans called for supersonic jets that are quieter and more fuel efficient than the Concorde. Some might consider a supersonic airliner to be an optimistic endeavor considering the concerns over the airline’s industry future over the next several years.
2) Like other restaurant chains in decline, Ruby Tuesday’s decline was several years in the making, accelerated by the pandemic. Amidst speculation by industry insiders, the renowned Ruby Tuesday has filed for bankruptcy. By April, Ruby Tuesday had closed about 30% of its 470 restaurants, and with the virus crisis, restaurants continued closing. It has closed 300 restaurants in the last three years, 186 this year alone, while amassing a $43 million dollar debt plus $19 million dollars owed to landlords and vendors. The company is filing for chapter 11 bankruptcy and will continue operating about 230 restaurants in its bid to survive. Ruby Tuesday’s decline in sales was due to a major shift in consumer attention from casual dine-in to fast food and fast casual options.
3) The troubled aircraft manufacture Boeing Aircraft cuts their forecast for airplane demand due to the pandemic. Over the next decade, Boeing now expects deliveries of 18,350 commercial aircraft, which is down from its previous forecast by 10.7%. The coronavirus crisis is expected to create minimal demand for new jets during the next few years. Boeing still expects to deliver 43,110 commercial aircraft over the next 20 years, a forecast down only slightly from its previous forecast of 44,040 and so will be able to make up for lost sales in the years after the next decade.
4) Stock market closings for – 7 OCT 20:
Dow 28,303.46 up 530.70 Nasdaq 11,364.60 up +210.00 S&P 500 3,419.45 up 58.50
1) Large hurricanes bring economic damage on a large scale when they make landfall. This season’s biggie is Hurricane Laura now expected to make landfall as a category 4 storm this Wednesday evening or early Thursday morning. The National Hurricane Center rates the storm as having an “un-survivable storm surge” with large and destructive waves causing catastrophic damage along the coast of eastern Texas to the eastern part of Louisiana. The surge could penetrate up to 30 miles inland from the coast. Add to this, the catastrophic wind damage, and Laura promises to carry a large price tag economically as the storm continues first up into Arkansas then across the United States for the Atlantic with rains and flooding. This year is forecast to be a very active hurricane season so more economic damage may be in the play book.
2) Walmart is suspending its InHome delivery service, which offered the convenience of having people’s groceries delivered and unpacked by the delivery person in the customer’s kitchens. But because of the Convid-19 crisis and the need for contactless service, Walmart is discontinuing the service in favor of its Doorstep Delivery service, where groceries are delivered to consumers but now is left on the door step. With its other two delivery service, Walmart is becoming a strong contender in the e-commerce business.
3) Two long established regional grocery chains have filed for bankruptcy, another sign of the shifting of retail business in America, as traditional retailers fail to adapt to the new economic world. Balducci’s and Kings Food Markets of the north eastern coast were having financial struggles before the pandemic set in, but even thought both had a boost in sales from the pandemic, it wasn’t enough to save them. All stores will remain open as their holding company seeks a buyer. The two grocery chains date back to the first half of the twentieth century and they prospered through the decades before e-commerce.
4) Stock market closings for – 26 AUG 20:
Dow 28,331.92 up 83.48 Nasdaq 11,665.06 up 198.59 S&P 500 3,478.73 up 35.11
1) This year’s hurricane season was already forecast to be a very active season, but now is going from bad to worst because of La Nina. The hurricane season was already on a record making pace, with the peak of the season coming in just a few more weeks. The possibility of the pacific having a La Nina, a state where the sea surface temperature becomes cooler than usual, is increasing in probability. This change in pacific weather patterns decreases the hurricane killing wind shear across the Atlantic, thus allowing more storms to form and strengthen. The Atlantic has already had 10 storms, which is the earliest number to occur by this date. Predictions are for as many as 25 storms forming, compared with the 2005 record of 28 storms including Hurricane Katrine. Additionally, a La Nina can spell cooler temperatures and storms across the north, with drier weather in the southern U.S., all having significant economic impact on America.
2) Again, the first time jobless claims have dropped, this time it’s the first time below 1 million since last March. Last week, 963,000 people filed for first time unemployment benefits, the first time in five months claims were below 1 million. Although the decline is a positive sign, the economic job situation still remains critical with 15.5 million people still unemployed, but still people are returning back to work. The employment problem still remains worst than for the Great Recession just a decade ago, which had lower jobless claims. It took nearly five years for the peak in 2009 until 2014 to return to what they were before the Great Recession.
3) Oil prices dropped as a result of IEA’s (International Energy Agency) forecasts for global oil demand. This reduction is in part a result of the slowdown in air travel. Price of oil has been creeping up coming to a five month high on Wednesday, but then fell as much as 1.3%, from the forecast of a drop in consumption for every quarter to the end of the year. The forecast also signals a shift in the recovery toward a stalling of economic growth. There remains an inventory overhang that persists, which the oil industry continues to work down.
4) Stock market closings for – 13 AUG 20:
Dow 27,896.72 down 80.12 Nasdaq 11,042.50 up 30.27 S&P 500 3,373.43 down 6.92
1) Debt relief services for student loan burden is the newest wave of scams. With student debt soaring to nearly $1.5 trillion dollars and with defaults at a record high, over burdened students are looking for relief. Companies promise to help students through the maze of government programs to reduce or forgive loans, but they offer nothing that individuals can’t do on their own. One company’s fee is $1,195 for document preparation, then $40 per month for almost 20 years for a total of $10,555.
2) The consequences of switching to renewable energy is causing prices for electricity to soar, sometimes as much as 40,000%. With Texas in the grips of a massive heat wave, the price of electricity went from $15 to as much as $9,000 a magawatt-hour. The same problem is occurring worldwide in countries like Germany and England, with not only spikes in cost, but threats of power grid collapse.
3) The English ship Maxlimer is set to start a new revolution in robotics, by being the first crewless robot ship to cross the Atlantic. It’s a proof of concept ship, 36 foot long, created by SEA-KIT that some day may spawn crewless cargo and oil tanker ships plying their way across the earth’s oceans. The goal is to produce shipping that is cheaper and safer than manned ships are. The historic crossing of the Atlantic is scheduled for the first half of 2020.
4) Stock market closings for – 26 AUG 19:
Dow 25,898.83 up 269.93 Nasdaq 7,853.74 up 101.97 S&P 500 2,878.38 up 31.27