28 June 2019

1) The Ford Motor company will eliminate 20% of its European workforce in a sweeping move to overhaul the manufacture’s falling sales. This will entail reducing its manufacturing facilities from 24 down to 18, with England, Germany and Russia the hardest hit. About 12,000 regular, staff and workers at joint ventures will be effected. Predicted deliveries for automobiles is down, as a result of Britain’s uncertainty from Brexit, with Ford’s European sales dropping 8.3% in May.

2) The crypto-currency Bitcoin having moved up over the last eighteen months to $14,000, suddenly drop 16%, down to $11,000. Bitcoin’s all time high was $20,000 reached in December of 2017, and is noted for it’s wild deviations of price over the last few years. Facebook just announced they are coming out with their own crypto-currency which may be a factor in Bitcoin’s sudden drop.

3) The Federal Aviation Administration has announced more safety concerns with Boeing’s 737 MAX just as the aircraft is being evaluated for software fixes designed to correct computer flight control systems. This system was responsible for two recent crashes with the death of all passengers and crew. Boeing’s stock dropped 3% Thursday as a result of added concerns for its star product, which the FAA is now evaluating software fixes with the expectations of finally getting its airliners airborne again. Boeing is presently parking completed 737 MAX aircraft in its car parking lots waiting for approval so they can make deliveries.

4) Stock market closings for- 27 JUN 19:

Dow           26,526.58    down    10.24
Nasdaq       7,967.76         up     57.79
S&P 500      2,924.92         up      11.14

10 Year Yield:    down   at    2.00%

Oil:     down   at    $59.28

23 May 2019

1) British Steel, Britain’s second biggest steel maker, collapsed on Wednesday. This leaves 5,000 jobs directly at risk, while also threatening another 20,000 at suppliers. The company had been seeking a $95 million dollar loan to cover losses suffered because of European orders lost from the uncertainty of Brexit. European steel manufactures have been under pressure from Chinese steel manufactures, with Europe taking antidumping measures against China.

2) The collapse of airline Wow Air is having a detrimental effect on Iceland’s economy. The airline had turn tourism into Iceland’s major economic boom which pulled Iceland out of its financial collapse over a decade ago. In addition, Iceland has suffered a disastrous fishing season. With Wow Air out of business, tourism is expected to drop dramatically.

3) The Dollar General store chain is making its millions of profit via catering to those in the lower economic strata. About 57% of Dollar General’s customers come from households of less than $49,000 yearly income, with 30% less than $25,000. The company has been able to sidestep the recent meltdown of retailing that has ravaged other big retailers, despite having a minimum of e-commerce.

4) 22 MAY 19 Stock market closings:

Dow             25,776.61    down    100.72
Nasdaq         7,750.84     down      34.88
S&P 500        2,856.27     down        8.09

10 Year Yield:    down   at    2.39%

Oil:     down   at    $61.32

16 April 2019

1) The British business climate is expected to get worst after Brexit. A survey of chief finical officers finds that a full 80% consider Britain’s economy will slump after Brexit, especially if an unplanned exit occurs. The long term outlook for investment is poor, so with little investment, the economy will flatten.

2) Battle lines of banking are being drawn in China between virtual banks and conventional banks. A banking shakeup is in progress between hi-tech companies and traditional banks, who find it hard to quickly react to the challenges of virtual banks, much as with Amazon is to retailing or Urber is to transportation.

3) The auto maker Mercedes-Benz is being investigated for software cheating of emissions test. Germany has ordered recall of 238,000 cars using illegal software to defeat government testing for compliance of emissions standards.

4) 15 APR 19 Stock market closings:

Dow            26,384.77    down    27.53
Nasdaq         7,976.01    down      8.15
S&P 500        2,905.58    down      1.83

10 Year Yield:    down   at    2.55%

 Oil:    up   at    $63.57

8 April 2019

1) The European Union has offered to extended the exit date in an effort to avoid a unplanned crash-out. Prime Minister May asked for an extension to 30 June, but the EU countered with a offer for a one year extension, which could be terminated early if an exit plan is agreed upon before the one year is up.

2) Samsung has forecast the lowest quarter profits in more than two years. The first quarter outlook looks ugly with a 15% decline from last years first quarter. The poor performance is a result of poor semiconductor sales coupled with a slowing growth in the smart phone market.

3) New jobs in March is six times that of February. The US added 196,000 new jobs, many claiming this indicates solid growth in the economy, and therefore the economy is doing just fine. But some worry about the unemployment rate holding steady, because an upturn in the unemployment rate usually signals a recession in the near future.

4) 5 APR 10 Stock market closings:

 Dow           26,424.99     up    40.36
Nasdaq        7,938.69     up    46.91
S&P 500       2,892.74     up     13.35

10 Year Yield:     down   at    2.50%

Oil:    up   at    $63.26

1 April 2019

1) Britain’s Prime Minster’s third try to get her Brexit plan voted through Parliament has failed, even though it was a stripped down version. This time the vote was by the narrowest margin. It’s now two weeks remaining to draw up a new plan and try again before the crash out. There is growing dissatisfaction with British people over Brexit with increasing numbers of demonstrations for and against. Also, there are growing calls for a general election, with the Labor party apparently using the Brexit issue to force a general election.

2) Lyft, the competitor to Uber, goes public with stock going for about $10 more than anticipated. Initially priced at $72, the stock opened at $87.24 per share and closed 8.7% higher. The company anticipates to raise $29 billion dollars in it’s offering. The stock is a two tier stock with one tier having one vote per share and the other having 20 votes per share.

3) 29 MAR 2019 Stock market closings:

Dow         25,928.68    up    211.22
Nasdaq     7,729.32    up      60.15
S&P 500     2,834.40    up     18.96

10 Year Yield:    up   at    2.41%

Oil:    up   at    $60.18

28 March 2019

1) Eviction crisis is starting to look a lot like the sub-prime mortgage crisis. Housing is increasingly out of reach for many Americans, which is resulting in increased incidents of evictions. This is an indicator of housing being priced out of reach for many people.

2) There has been another incident with Boeing’s 737 bringing further doubts to the design. Soon after a 737 MAX-8 took off, it developed an engine problem forcing it to return. Boeing announced that they were completing a software fix for the MAX-8 series, and are close to submitting it to the FAA sometime this week. The new software is reported to now use the inputs from two different sensors, which must agree before the program will accept the input.

3) Prime Minister May has announced her willingness to step down if Parliament will past her Brexit plan, but didn’t give a specific date. Parliament considered eight proposed strategies and voted on each one, with all eight being voted down. This leaves Britain right where she started, with time quickly running out.

4) 27 MAR 19 Stock market closings:

 Dow                25,625.59    down    32.14
Nasdaq              7,643.38    down    48.14
S&P 500             2,805.37    down    13.09

10 Year Yield:     down   at    2.37%

Oil:    down   at    $59.35

27 March 2019

1) British parliament voted to take control of Brexit for one day this Wednesday, to try their hand at resolving Britain’s dilemma of departing the European Union. If the division running through the British public is any indicator, then it’s rather unlikely parliament will reach any consensus on a solution.

2) Airbus of France announced a $35 billion dollar sale to China for 290 of their A320 airliners plus another 10 of their A350 wide body airliners. This is another blow to Boeing in addition to the grounding of their best seller, the 737 MAX 8, which is comparable to the A320. The grounding of the 737 MAX 8 coupled with the fallout from the US-China’s trade war is a serious impediment to Boeing. China is the world’s largest aviation market.

3) Apple sales in China has declined due to demand for domestic products. Apple products have become too expensive, so the Chinese people are turning to domestic products which now have most of the same features as Apple for much less.

4) 26 MAR 19 Stock market closings:

Dow         25,657.73      up    140.90
Nasdaq       7,691.52      up       53.98
S&P 500      2,818.46      up      20.10

10 Year Yield:     down   at    2.41%

Oil:     up   at    $60.04

26 March 2019

1) Study finds that Generation-X and Millennials are disillusioned and worried about their careers and future. They are working hard and long hours with little to show for it, worried about layoffs and no longer being needed, and therefore having to start over again. Also fears of little for their retirement.

2) This week may well be the most significant week since Great Britain went to war in World War II. The Prime Minister admits to not having enough votes for the exit plan. Parliament is working on its own exit plan, while the British people are now deeply divided as a ‘exit crash out’ is quickly approaching.

3) The laws of economics threatens to doom many American coal electric plants, amid claims that it’s cheaper to do renewable energy technology than to update coal plants. These doubtful power plants represents 211 gigawatts of power generation, or about 74% of coal fired plants in America.

4) 25 MAR 19 Stock market closings:

Dow          25,516.83         up     14.51
Nasdaq       7,637.54    down       5.13
S&P 500      2,798.36    down       2.35

10 Year Yield:      down   at    2.42%

Oil:     up   at    $59.09

25 March 2019

1) The English pound has had its biggest single day drop because of Brexit. Brexit will be delayed until May the twenty-second if the British Parliament passes the exit deal.

2) Boeing has experience its first cancellation of its 737 MAX with Indonesia canceling a huge order of 49 aircraft. Boeing is rushing to complete its new warning system since the 737 MAX is its biggest seller.

3) Pinterest files for its IPO, releasing its prospectus this last Friday showing a $53 million dollar loss. Presently, the software has about 265 million users. Uber also plans to list its IPO on the New York Stock Exchange, the largest so far this year.

4) 22 MAR 19 Stock market closings: Dow dropped over fears of a global slowdown.

Dow                 25,502.32       down     460.19
Nasdaq              7,642.67       down     196.29
S&P 500             2,800.71       down       54.17

10 Year Yield:     down   at    2.46%

Oil:      down   at    $58.97

22 March 2019

1) Walmart has plans to compete with Amazon in the future, by using Jetblack personal shopping service to train AI systems. Jetblack has an army of human agents that can use in training Walmart’s AI system which can power an automatic personal shipping service in the next 5 to 7 years. This makes Jetblack more of a research facility.

2) The Chinese telecom company Tencent’s stock is down after the Chinese government imposed regulations designed to limit online games. They have suffered their largest decline in ten years with a 32% declined. Since smart phones is the biggest part of their business, this drop wiped off $100 billion dollars of book value.

3) The Prime Minister of Britain is trying to obtain a short extension of Brexit by going to Brussels. The major members of the European Union said they would endorse a short extension, but only if the British Parliament approves the exit plan. But British political parties are splintered over what should be done about Brexit.

4) 21 MAR 19 Stock market closings:

 Dow                   25,962.51     up     216.84
Nasdaq                 7,838.96     up     109.99
S&P 500                2,854.88     up        30.65  

10 Year Yield:     unchanged   at    2.54%

Oil:     down   at    $59.87