1) The once high flying German Deutsche Bank has run aground rapidly slashing jobs and losing a ton of money. Stock for Germany’s biggest lender is trading at a near all time low. This is a result of poor management and failing to fully clean up its crisis era balance sheet. The banks restructuring efforts have fell short coupled with countless legal black eyes that have all contributed to the bank’s financial woes.
2) The pharmaceutical companies Pfizer and Mylan have announced they are combining to create a global powerhouse in the low price drug market. Pfizer will gain most control of the company with 57% ownership, with Mylan shareholders owning the rest. Both companies lost exclusive manufacture rights from patent expirations, that were big money makers for the companies. Mylan, is the manufacturer of the emergency treatment for allergic reactions, the EpiPen. Mylan has recently been in the news for raising the price of EpiPens by 400%.
3) J.C. Penney, the 117 year old department store chain, is at risk of being de-listed from the New York Stock Exchange. To counter its downward spiral, the company has hired advisers to explore debt restructuring. Penney has $4 billion dollars in debt coming due in the next few years, while its revenues are increasingly being lost to sales on the internet and niche brands. Revenue has fallen over the last three years. The retail giant Sears has suffered similar troubles.
4) Stock market closings for – 29 JUL 19:
Dow 27,221.35 up 28.90 Nasdaq 8,293.33 down 36.88 S&P 500 3,020.97 down 4.89
1) America now has such a surplus of natural gas, that it’s being burned off instead of sold and used. The problem isn’t a lack of a market to sell to, rather it is insufficient distribution infrastructure. There isn’t enough pipeline capacity to get the gas from the oil fields to customers. In West Texas, enough gas is burned off each day to fuel every house in Texas. Natural gas prices are negative in some areas as producers pay people to take the gas off their hands.
2) The international banking giant Deutsche Bank is getting out of the investment banking by closing its equities business. This restructuring will result in posting a $3.1 billion dollar loss for the second quarter and an overall loss of $8.3 billion dollar into 2022. Additionally, there will be a loss of 18,000 jobs or one fifth of their labor force.
3) The summer labor force of teenagers is shrinking as American youth opt for summer school and extracurricular activities. Only about 40% of highschool age kids are working during their summer vacations, compared to more than 60% in the twentieth century. This leaves businesses with a dilemma of find enough workers, especially those business which are more active in the summer months and need that extra short term labor boost. Much of this shift is because of increased emphasis on education for the young, who opt for summer school and summer college prep programs instead of earning some pocket money.
4) Stock market closings for- 8 JUL 19:
Dow 26,806.14 down 115.98 Nasdaq 8,098.38 down 63.41 S&P 500 2,975.95 down 14.46
Goldman Sach’s rolled out a new review/performance based system to rate and grade employees performance at the work place. The new system allows employees to attain, receive information and feed back from their supervisors and managers.
This innovative system allows employees and managers to get feedback among themselves all year round. Entitled Ongoing Feedback 360+ allows employees more interactons and communication with their superiors on many work related issues and allows the managers to communicate to the employee on how to handle different work related issues, in a timely fashion.
The Ongoing Feedback 360+ will be used to allow direct communication with management and the employees at Goldman Sach’s, in a real time based ordinance. -SB
The emerging BRICS Nations (China, Russia, Brazil, South Africa and India) have set out to start their own BRICS Emerging Nations Development Bank. The BRICS countries represent approx forty percent (%) of the global population at hand.
The BRICS bank will have $100 billion dollars devoted to each countries development and expansion. The central location for the bank will be in Shanghai, China. The bank is speculated to be launched at the end of the year, 2015.-SB