1) Because of the very rapid spreading of the new coronavirus variant, England will enter its toughest nationwide lock down since March. For at least six weeks schools will be closed and people can leave home only once a day for exercise. Because of the number of people in hospitals reaching a new height the British threat level has been raised to its highest level of 5. People must now only leave home for work, if it is impossible to work from home, and for essential food and medicine. School study will be online until mid-February. All non-essential retail and hospitality businesses are closed, but restaurants and other premises will continue delivery of takeaway food but not alcohol. Places of worship can remain open, including communal worship, subject to social distancing.
2) The first stimulus payments from new the coronavirus relief bill are now on the way. However, the aid won’t suffice for many. The $300 check additions to unemployment are half the amount of the old Federal Pandemic Unemployment Compensation pay outs, which lapsed in late July. Since then, aid recipients have been getting by on state unemployment assistance, which can pay less than the minimum wage when calculated on an hourly basis. But workers will receive just over a third of last spring’s CARES package, which paid out $600 per week for four months compared to $300 for 11 weeks now.
3) Google workers have formed their first-ever union, a rare step for the tech industry that also represents the biggest and most organized challenge yet to the company’s executive leadership. This is the first union at a major tech company and it’s for and by all tech workers. So far, 226 workers have signed union cards with the Communications Workers of America (CWA), one of the country’s largest labor unions. While the pandemic made it more challenging to hold those meetings face-to-face, the shift to remote work, in some ways, made it easier to organize. The workers could theoretically mount a strike, though that would be a challenge and there are no current plans to do so. The union’s formation comes after years of rising employee tensions over the company’s business and operational decisions, such as work with the defense sector, plans for a censored search engine in China, and the company’s handling of sexual misconduct claims.
4) Stock market closings for – 4 JAN 21
Dow 30,223.89 down by 382.59
Nasdaq 12,698.45 down by 189.83
S&P 500 3,700.65 down by 55.42
10 Year Yield: unchanged at 0.92%
Oil: down at $47.34
1) When Joe Biden takes the presidential oath of office next year, he will need to address the question of his son and brother’s business arrangements with entities of foreign governments. A five-page report, with 65 pages of evidence, confirms the connections between the Biden family and the communist Chinese government, as well as the links between Hunter Biden’s business associates and the Russian government. Bidens’ global web of “consulting” and influence-mongering has created some unsavory question about conflicts of interest. Even if every past, present, or future business arrangement by Hunter and Jim Biden is technically legal, which is still an open question, plenty of difficulties can arise from financial pressure to do the bidding of those adversaries. To maintain public trust in his new administration’s diplomacy, the new president must force his son and brother to divest from many aspects of Biden family business.
2) Earlier this year, Australia was among the first countries to call for an official investigation into the coronavirus origins. China responded angrily which accusations that Australia’s highly irresponsible acts could disrupt international cooperation in fighting the pandemic. In recent months, China has imposed trade tariffs on Australia, targeted Australian journalists, and issued angry missives regarding Australia’s dealings with other regional powers. Chinese diplomats have distributed a document to Australian media listing Beijing’s grievances with Australia. These include unfairly blocking Chinese investment, spreading disinformation about China’s coronavirus response, falsely accusing Beijing of hacking, and engaging in incessant wanton interference in Xinjiang, Taiwan and Hong Kong. Yet while there may be legitimate concerns about China in a number of countries, such as the role of telecoms manufacturer Huawei in 5G networks, Australia has become more hawkish than most, but Australia could look foolish if Biden opens up partnerships with China on climate and pandemic management leaving Australia standing alone.
3) As Congress breaks for Thanksgiving, 12 million Americans may lose their jobless benefits on December 26 unless Congress can agree on a new stimulus deal in the next few weeks. More than half of the 21 million people currently collecting unemployment benefits can be effected. If lawmakers head home for Thanksgiving soon, it is even less likely they will reach a deal before they break for the year in December. As they do, millions of Americans could potentially lose their own residences when the nationwide eviction moratorium also expires at the end of the year. Tens of millions more cannot afford enough food to eat. Additionally, long-term unemployment is on the rise with the share of jobless workers out of work for 27 weeks or more, shot up from 19.1% to 32.5% in October, because there are simply not enough jobs being created to support all of the workers running out of aid before the end of 2020.
4) Stock market closings for – 20 NOV 20:
Dow 29,263.48 down by 219.75
Nasdaq 11,854.97 down by 49.74
S&P 500 3,557.54 down by 24.33
10 Year Yield: down at 0.83%
Oil: up at $42.47
1) Biden said he’ll forgive $10,000 in student debt for all borrowers. Will it actually happen? During his campaign, Biden advocated forgiving a large portion of outstanding student loan debt. Now that Biden is the President-elect, the 42 million Americans with education loans may be wondering, will it really happen? Biden’s proposal is a scaled-down version of plans that his rivals to the left in the Democratic primary campaigned on. Sen. Elizabeth Warren, wants to cancel up to $50,000 in student debt for individuals with household incomes under $100,000, while Sen. Bernie Sanders, said he’d erase all of the country’s outstanding education debt.
2) The European Union will impose tariffs on $4 billion dollars of U.S. goods starting Tuesday. This is a tit-for-tat escalation of a transatlantic fight over illegal aid to aircraft manufacturers Boeing Co. and Airbus. The EU tariffs will be on various Boeing models of airliners with a 15% duty, as well as other goods ranging from spirits and nuts to tractors and video games, which will be subject to a 25% levy. The move comes at an awkward moment for the EU, which is contending with a surge of Covid-19 cases and its worsening recession. For the last 13 months, the EU has faced U.S. tariffs on $7.5 billion dollars of European goods after Washington won a WTO (World Trade Organization) case against market-distorting aid. In a parallel lawsuit, the EU received final WTO permission to hit $4 billion dollars of American products with duties because of unfair subsidies to Boeing.
3) EU (European Union) regulators announced antitrust charges against Amazon. The European Commission considers Amazon’s collection of non-public data on its platform is then used to benefit its own retail business because sales of third-party retailers is then used to launch Amazon’s own products and undercut its competition. This complaint is one of the most common charges against Amazon as an anti-competitive outfit. About 2.3 million third-party sellers do business on the Amazon marketplace. The EU also has a second formal investigation which has officially been opened.
4) Stock market closings for – 11 NOV 20:
Dow 29,397.63 down by 23.29
Nasdaq 11,786.43 up by 232.58
S&P 500 3,572.66 up by 27.13
10 Year Yield: down at 0.96%
Oil: down at$41.62
By: Economic & Finance Report
Image Credit: Forbes.com
1) America’s economy is expanding at a record pace after a historic decline from the Covid-19 crisis. The economy grew at an unprecedented 7.4% pace from the second to the third quarter, which on an annualized basis, would be a growth rate of 33.1%. This would be the highest annualized growth rate on record. While this is undoubtedly positive, it comes with lots of caveats, for the U.S. economy is still in a deep hole with the gross domestic product still about 3.5% below the level recorded in the fourth quarter of 2019. Second, the economy is slowing. Third, there are about 11 million fewer people on payrolls than before the pandemic hit, plus layoffs persist. Finally, the report is a political football with politicians framing the numbers to best serve their individual’s objectives.
2) Cruise ships can begin a phased return to operations starting Nov. 1 under new health protocols. There has been 74 recommendations made for a potential safe return to cruising, including a new focus on “air management”, lower ship capacities, shorter sailing times, required testing and masks, and enhanced cleaning and medical staff on voyages. There are four phases to return to cruising, beginning with cruise ships establishing coronavirus testing of all crew. Phase 2 will be simulated voyages to test the ability to mitigate Covid-19 on cruise ships. Phase 3 is certification by the CDC, and the final phase is a return to passenger voyages.
3) One question this fall is America’s energy future of whether, and to what extent, we should transition from reliable fossil fuels, such as oil and natural gas, to more intermittent sources of energy such as wind and solar power. But arbitrarily halting oil and natural gas development would do serious harm to our economy, and thereby jeopardize post-pandemic recovery. Businesses need reliable, low-cost energy to reopen and return to normal operations, and presently fossil fuels currently accounts for 80 percent of overall American energy production. At the start of this year, the oil and gas industry was responsible for 12.3 million American jobs, while also generating $1.6 trillion dollars in federal and state tax revenue. So if the oil and gas revenue dries up, major public services will be reduced or even cut. The simple fact is that the United States cannot continue on the path of recovery without a thriving oil and natural gas industry because it supports jobs, lowers energy costs for families and businesses, and strengthens our energy and national security.
4) Stock market closings for – 30 OCT 20:
Dow 26,659.11 up 139.16
Nasdaq 11,185.59 up 180.73
S&P 500 3,310.11 up 39.08
10 Year Yield: up at 0.84%
Oil: unchanged at $36.10
1) More bad news for the airline business with another expected huge round of losses coming. The second quarter was the worst financial hit in the history of the airline business, and the third quarter won’t be much better. The airlines reported a second quarter combined losses of $12 billion dollars with revenues down 86% for the previous year. Analysts are forecasting a $10 billion dollar lost for the third quarter. The airlines did reduce cost by trimming expenditures, reducing labor as employees took buyouts and early retirement packages. Also, a modest pickup in travel during the summer has help with increased revenues, but forecast are for sales to be down 75% in the third quarter.
2) Oil prices fell the most in a week because the Gulf of Mexico production is set to resume and Libya is reopening its largest oil field. The hurricane had shut down about 92% of oil production in the Gulf, while at the same time Libya’s largest field will reach its daily capacity of almost 300,000 barrels in ten days. World demand for oil crude has dropped with refineries operating near minimum capacity.
3) The third major opioid makers Mallinckrodt Pic has become the third major manufacture of opioid to go bankrupt after being swamped by claims with respect to profiting from the U.S. opioid epidemic. The drug company filed for Chapter 11 after getting creditors and claimants to agree on a restructuring plan. This plan hands over ownership to bondholders, wipes out shareholders and sets aside $1.6 billion dollars to resolve all its opioid litigation. Current shareholders will most likely get nothing, with stock prices in the penny range for most of the year. The Chapter 11 filing estimates liabilities of $1 billion to $10 billion dollars and assets in the same range.
4) Stock market closings for – 12 OCT 20:
Dow 28,837.52 up 250.62
Nasdaq 11,876.26 up 296.32
S&P 500 3,534.22 up 57.09
10 Year Yield: unchanged at 0.78%
Oil: down at $39.44
1) The airlines around the world are expected to lose $77 billion dollars in the second half of 2020 as Covid-19 continues to crush air travel demand. There are desperate efforts to cut cost by cutting jobs, grounding aircraft and consolidating work, but all their efforts are not enough. The first half of 2020 has been brutal for airline business and the rest of the year isn’t looking much better despite modest increase in air travel. This translates into losing $13 billion dollars a month or $300,000 a minute. At the start, U.S. airlines were burning about $100 million per day, which they reduced to about $30 to $40 million at the end of the third quarter. The airlines hope to reach zero ‘cash burn’ by year’s end using workforce reductions and operational consolidation. Air travel in America is down roughly 70% from 2019.
2) As another hurricane is approaching through the Gulf of Mexico, oil workers are evacuating oil rigs in the gulf ahead of Hurricane Delta, in turn causing oil prices to rise in anticipation of lower available oil. Oil prices had been falling Wednesday, but started rising as the storm came into the Gulf and the off shore evacuations began. So far, 183 offshore oil facilities have been evacuated which has halted nearly 1.5 million barrels per day of oil output. In July, the Gulf of Mexico produced oil at 1.65 million barrels per day, which is 17% of U.S. crude oil output. The demand for oil at refineries is 13.2% lower than a year earlier, a result of the virus crisis.
3) Electric car maker Elon Musk is pushing his company to boost production to build half a million cars in one year. That means producing 170,000 cars in the fourth quarter, a 17% increase from the third quarter. A half a million cars would be a milestone for Musk’s company, a first in the history of Tesla. So far, Tesla has produced 330,000 cars while also posting profits for its fourth consecutive quarter. Additionally, Tesla is pushing production numbers up by adding more production capacity.
4) Stock market closings for – 8 OCT 20:
Dow 28,425.51 up 122.05
Nasdaq 11,420.98 up 56.38
S&P 500 3,446.83 up 27.38
10 Year Yield: down at 0.76%
Oil: up at $41.27