15 March 2021

1) Canoo of Los Angeles is offering a battery-powered truck, with a skateboard-style EV platform, having a highly modular, cab-forward, for a blisteringly quick utility vehicle. Similar to Ford’s F-150, it comes in about the height and two inches narrower, and with a wheelbase 10 inches shorter. Without a conventional drive train, its extended cab is far forward, thus giving it a larger bed than the Ford. With its battery and electric motor, it can generate 600 horsepower and 550 foot-pound of torque even down at zero rpm. These should make the Canoo a respectable tow rig, not to mention a capable crawler, what with its short wheelbase, skid plates front and rear, and integral tow hooks.

2) America has now administered over 100 million doses of COVID-19 vaccine (101.1 million). That equates to more than 35 million Americans fully vaccinated or 10.5% of the total U.S. population. Nearly 66 million, or almost 20% of the total population, have gotten at least one dose, while one-third of Americans age 65 and older are fully vaccinated. The first shot was given on December 14, and more doses have been administered in the U.S. than any other country in the world, although several smaller nations have vaccinated a higher proportion of their populations. The U.S. should have enough COVID-19 vaccine to immunize the nation’s entire adult population by this summer, with enough left over for some 172 million more people. The nationwide pace of vaccinations has quickened to an average of over 2 million doses a day. The majority of states have already vaccinated many of their front line essential workers and residents over 75 years old.

3) Rare earth elements are produced in various parts of the world, but primarily in China, who has been holding the U.S. and some other countries hostage under threat of a trade war by using these ‘must have’ minerals. But that is about to change with Noranda Alumina of Gramercy, Louisiana, who is proposing developing an $800-million dollar high tech refining center for extracting rare earth minerals from over 35-million tons of residual bauxite stored in Louisiana. Investing nearly a billion dollars on the new plant, it will create 2,000 construction jobs. Once in operation, the facility will employ 200 full time high paying jobs along with nearly 600 indirect jobs. This opportunity enables America to domestically produce these rare earth elements that go into a lot of green earth technologies, plus by recycling the residual bauxite, the extraction plant will be carbon neutral.

4) Stock market closings for – 12 MAR 21:

Dow 32,778.64 up by 293.05
Nasdaq 13,319.86 down by 78.81
S&P 500 3,943.34 up by 4.00

10 Year Yield: up at 1.64%

Oil: down at $65.56

8 March 2021

1) Walt Disney Co. will close at least 60 Disney stores in North America this year, which amounts to about one-third of their stores. Like so many other retailers, Disney has found that shopping has changed because of the coronavirus pandemic- and so has Disney’s entire business with its theme parks closed to some extent. But Disney+ streaming service has blossomed to 94.9 million subscribers. Disney’s revenue in the October to December quarter fell 22% to $16.25 billion from $20.88 billion in the previous year but still beat Wall Street expectations.

2) General Motors said it’s exploring the possibility of a second battery production site in the country, the first is its facility in Lordstown, Ohio, a site it will operate with partner LG Chem. Reports are that GM is interested in a second site in Tennessee, as a venture with Korea’s LG. The Ohio operation is set to open next year with enough capacity to build hundreds of thousands of batteries per year. The automaker is keen to quickly capitalize on a shift to electric vehicles and said it aspires to only sell zero-emissions, light-duty vehicles by 2035, including light-duty pickup trucks. The Ohio plant may be a down payment on this EV future, in which the automaker has invested $2.3 billion.

3) Lumber prices have skyrocketed 140% over the last year, although the economy might not be able to handle further increases in 2021, nevertheless lumber is the best performing commodity. Analyst predict lumber prices could gain another 35% in the next year. Rising lumber prices are from the pandemic induced housing boom, fueled by record low mortgage rates and a mass exodus to the suburbs. It’s a sign that the economy is recovering, but if prices of lumber and other commodities continue to rise quickly, the economy might falter, as prices move higher driven by demand, while supply will continue to shrink. Worker wage increases haven’t been keeping pace with the dramatic spike in all the commodities at this point in time. With interest rates going up and all these inflationary commodities advancing in price, there are growing fears of people being self-sustaining when wages remain static.

4) Stock market closings for – 5 MAR 21:

Dow 31,496.30 up by 572.16
Nasdaq 2,920.15 up by 196.68
S&P 500 3,841.94 up by 73.47

10 Year Yield: unchanged at 1.55%

Oil: up at $66.28

4 February 2021

1) Two companies, AmSty and Agilyx, have announced the certified circular recycling pathway for polystyrene for recycling has been cleared. Polystyrene waste is currently being transformed from solid form to its liquid feedstock called recycled styrene monomer (RSM) at their joint venture facility, to produce circular recycled products. These products can now be put back into the marketplace with original quality. This is the major advancement in recycling polystyrene waste in a world being overrun by plastic waste.

2) QuantumScape, the solid-state battery company, debuted its stock which soared up 256% in less than a month, but then plunged 60% from the high. The solid-state battery is lighter, has greater energy density, therefore more range, lower cost and faster recharge times. But solid-state battery packs for cars are far from ready. They do away with the liquid electrolyte that makes conventional lithium-ion batteries heavy, as well as being dangerous at high temperatures. Getting solid-state batteries to the market is difficult and will take some time, so battery packs for cars are far from ready. Two things sent the company stock down. First is a January 4 report saying that QuantumScape’s batteries are small and unproven, smaller than an iWatch battery and never tested outside a lab. A few days later, the law firm Gainey McKenna and Egleston announced a class-action lawsuit against QuantumScape on behalf of investors, noting a 40 percent drop in the stock price after the story ran. QuantumScape has made clear the batteries are still in the development stage, with results from testing small prototypes instead of full power packs. Other companies, such as Toyota, General Motors, Samsung, Ford and Hyundai are working and investing in the new battery technology. The solid-state space energy storage field has been dormant for many years but now it is heating up.

3) It’s reported that China has stolen personal data from 80% of Americans using their Chinese hackers. On the news show 60 Minutes on CBS the former director of the US National Counterintelligence and Security Center disclosed that 80% of American adults have had some amount of their personally identifiable information stolen by the Communist Party of China. Furthermore, there are concerns that the Chinese regime is taking all that information about Americans, such as what we eat, how we live, when we exercise and sleep, and combining it with our DNA data. With information about heredity and environment, suddenly they know more about us than we know about ourselves.

4) Stock market closings for – 3 FEB 21:

Dow 30,723.60 up by 36.12
Nasdaq 13,610.54 down by 2.23
S&P 500 3,830.17 up by 3.86

10 Year Yield: up at 1.13%

Oil: down at $55.95

6 March 2020

1) The devastation that the coronavirus fears has wrought on Europe’s tourist industry is brought into glaring focus in front of the famous Mona Lisa painting in Paris. Where there would normally be a continuous surge of admiring people to view the art classic, now just vacant space. The same at St. Peter’s Basilica in Rome, the normally long lines of waiting people to get in, are also gone. The drop in tourism is costing the EU (European Union) $1.1 billion dollars a month, just when the high season is getting under way. Expectations are that it will only get worst as the year progresses.

2) General Motors is making an all out effort to dominate the EV (Electric Vehicle) market and in the process beat Tesla at its own game. GM has developed new battery modules called Ultium that is said to reduce the cost of batteries and therefore make more affordable EVs. Plans are to offer 20 new EVs by 2023, both in America and China, with marketing plans to sell one million electric cars in the next five years. However, the UAW is concerned that EVs will hurt the union because they require less manpower to assemble. Presently, GM holds over 3,000 patents on electric automobile design.

3) Seattle area school district has closed down its 33 schools of more than 23 thousand kids for up to two weeks due to the coronavirus threat. These students will use online teaching during this time through Google Apps for Education. Students needing a device or internet connection will be provided with one. Teaching staff have been provided with a one day instruction on using the apps and how to monitor the progress of their students. ATS (Automated Teaching Systems) has been on the cusp of revolutionizing American schools, and the coronavirus may provide the impetus to open the market to wide spread commercialization.

4) Stock market closings for – 5 MAR 20: The instability of the markets continue with wild swings of the trading indexes.

Dow 26,121.28 down 969.58
Nasdaq 8,738.60 down 279.49
S&P 500 3,023.94 down 106.18

10 Year Yield: down at 0.93%

Oil: down at $46.13

12 August 2019

1) The electric car company Tesla Inc is being sued claiming the company limited battery range of its older vehicles using software updates. The alleged intent was for Tesla to avoid costly fixes to defective batteries. The lawsuit is seeking class action status for thousands of Model S and X owners. The suit claims that older generation batteries had their range curtailed by an automatic software update. As a result of a battery fire, Tesla claims they are revising charge and thermal management settings via the software to further protect the battery and improve battery longevity.

2) The Chinese-American trade war hasn’t been bad for all nations, other nations are experiencing increase trade as a result of the war. Australia is the biggest beneficiary with exports to China of natural resources. Second is Switzerland, the third is Mexico which has replaced China as U.S. largest exporter. Fourth is Brazil who is benefitting from agricultural export to China and the fifth is Canada.

3) Malaysia is expanding its efforts to prosecute seventeen Goldman Sachs executives, who were allegedly involved in misleading investors in a $6.5 billion dollar bond sale. The bonds were for the state investment fund, 1 Malaysia Development Bhd or 1MDB. Charges include executives knowing that funds would be siphon off so Malaysia is also seeking to recoup funds and fees.

4) Stock market closings for – 9 AUG 19:

Dow             26,287.44    down    90.75
Nasdaq          7,959.14    down    80.02
S&P 500         2,918.65    down    19.44

10 Year Yield:    up   at    1.73%

Oil:    down   at    $54.27

Samsung Note 7 Banned on UAE Flights……………….

samsung-7-note-ban

By: Economic & Finance Report

UAE Airlines has banned the Samsung Note 7 usage; as well as the charging of the phone on their airlines. The ban was issued by risk management of UAE airlines because the Samsung Note 7 has battery defects; in which the phone burns and explodes.

Other countries such as US, China, India, Europe, Singapore have all held special adversaries, either banning or discontinuation of using the Note 7 on commercial and domestic flights.

Because of the controversy surrounding the warnings of the Note 7, Samsung has issued a voluntary exchange program, in which customers can exchange their Note 7 phones, because of the faulty battery issue the phone seems to have. -SB