2 October 2019

1) The retailer giant Amazon is expanding into the grocery business by leasing retail space across the Los Angeles area, signing leases for more than twelve locations. This is the first step of plans to open grocery stories across the nation. Amazon job postings are looking for people to work in retail concepts for a multiple customer experiences under one roof. Stores are reportedly to be about 35,000 square feet and intended to compete with big box stores such as Walmart, Target and Kroger.

2) The Institute for Supply Management says its manufacturing index dropped to 47.8 last month, the lowest since June 2009, below the forecast 49.1. Indexes below 50 indicate a contraction in manufacturing. Manufacturing accounts for 12% of the GDP (Gross Domestic Product), so a slowdown could effect other parts of the economy. Other indicators have shown output increased over last month.

3) Oil prices record its weakest quarter since late last year as fears over a global economic slowdown overshadowed the attacks on Saudi Arabia’s oil production facilities. Brent futures are down 8.7% since the end of June, despite the peak after the attacks. The price of oil is considered an economic indicator, since demand goes down as economies slow down, making more oil available, thus causing oil prices to decline.

4) Stock market closings for – 1 OCT 19:

Dow               26,573.04    down    343.79
Nasdaq            7,908.68    down      90.65
S&P 500           2,940.25    down      36.49

10 Year Yield:    down   at    1.64%

Oil:    down   at    $53.98

SAUDI ARABIA SHORTS ITS DEPENDENCE ON CRUDE PRICES…. AS OIL FALTERS……

Saudi Arabia oil

By: Economic & Finance Report

Saudi Arabia has been shortening its dependence on crude prices, even though they have been increasing the production of oil. Saudi Arabia’s budget for next year adheres to 70% of crude revenue.

The Saudi Arabia budget is the first budget in approximately a decade in which oil prices are less then $50/barrel. The truth of the matter is that the Saudi government is ready to face the reality of a declining of oil revenue an d so they have formatted their budget to be indicative of this. -SB