1) The electric auto maker Tesla announced it is furloughing workers as well as cutting employee salaries as a result of the coronavirus shutdown of its facilities. Furthermore, the virus pandemic has slashed demand for cars and forced several other automakers to furlough workers. Barring any significant changes, Tesla plans to resume normal operations on May 4. Salary reductions will start on April 13 and remain in place until the end of the second quarter. Workers salaries are cut by 10%, directors by 20% and vice presidents by 30%. The company considers it has sufficient cash reserves to weather the shutdown.
2) Nuro’s driverless delivery vehicles has received another approval. California’s DMV has given a permit for Nuro to operate in specific parts of Santa Clara and San Mateo counties. While test have been permitted since 2017, a human monitor was required, but these vehicles will be fully autonomous having no humans. This is another step in the rapidly changing retail market, which is embracing wide spread automation in its sales, as robots become more involved in consumerism activities.
3) The number of deaths projected for the coronvirus has been lowered, but there are fears of a ‘second wave’ to follow. The pandemic model has scaled back its projected death toll by 26% to 60,000 however, if social distancing practices are not maintained, a second wave of infections may ensue. So far, about 400,000 coronavirus cases have been reported with roughly 13,000 deaths. But even the revised forecast suggest months of infection troubles for the United States. About 94% of the population has been ordered to stay at home.
4) Stock market closings for – 8 APR 20:
Dow 23,433.57 up 779.71 Nasdaq 8,090.90 up 203.64 S&P 500 2,749.98 up 90.57
1) The threat of coronavirus spreading has caused stock markets to sharply fall over fears of the virus’ impact on the world economy. The death toll in China has risen to 81, and a fifth case has occurred in America. With China the biggest driver of global growth, the virus started in the place where it could have the biggest impact. There are worries that this virus caused market dip could spark a major correction in the markets.
2) General Motors plans to go all electric at its Detroit Hamtramck plant starting next year. GM is committing a $2.2 billion dollar investment in the factory to include $800 million dollars on tooling and projects related to trucks. The plant will be GM’s second builder of plugin models of cars. Only Tesla has sold electric cars in significant volume so far. The Hamtramck plant will employ 2,200 workers.
3) With the Federal Reserve’s bond portfolio swelling at a pace not seen since the 2010s, the Feds are faced with the tricky maneuver of turning the tap off soon. A misstep could have painful consequences, with the risk of what happens when the Feds stops increasing their balance sheet. Questions arise over what will happen to the stock markets when that liquidity spigot closes. This is part of the process called quantitative easing.
4) Stock market closings for – 27 JAN 20: The spread of coronavirus pushes markets down.
Dow 28,535.80 down 453.93 Nasdaq 9,139.31 down 175.60 S&P 500 3,243.63 down 51.84
Breaking News: Tesla Inc market value has now surpassed both legendary Ford Motors and General Motors company market values combined.
January 8, 2020 (Wednesday) Tesla Inc had a market cap of $89 billion, approx 2 more billion dollars then Ford Motors ($50 billion) and General Motors ($37 billion) combined.
Many of Tesla Inc’s attributes for rising market cap has to be with a profitable 3rd quarter the electrical auto maker had; also surpassing auto deliveries in the Chinese market, while also having its stock more then double over the past few months. These all seem to be contributing factors to its increased market cap currently.
With all the accolades Tesla has achieved, there are skeptics in the investment community who believe the company will not able to sustain cash flow nor provide more profitability in the next few years.
1) The mega brewers Anheuser-Busch and MillerCoors, America’s two largest brewers of beer, are embroiled in a legal battle with Anheuser-Busch claiming MillerCoors stole recipes and trade secrets. The legal conflict rose from attack ads in Super Bowl commercials last February. The legal war continues to escalate with suits and counter suits being filed by both companies. During discovery, Anheuser-Busch claims to have uncovered evidence MillerCoors had obtained trade secrets.
2) The very popular SUVs across the world has led to a nearly sixfold increase in the number of SUVs on the road since 2010, which makes them the second biggest contributor to the rise in carbon dioxide emissions. Only the generation of electrical power produces more carbon dioxide, although SUVs account for about a third of the emissions compared to power generation. SUVs are also the reason that oil demand from passenger cars has grown by 3.3 million barrels a day since 2010, while oil use has declined slightly for other kinds of cars.
3) The export of pork from America has hit an all time high. Buyers are stocking up in anticipation of a widening protein gap in China, the result of a pig killing disease in Asia. American exports jumped to 351,000 metric tons as both Mexico and China buy up future pork contracts, as well as sales of soybeans, another prime source of protein in Asia. The African swine fever has devastated pig herds causing domestic pork production to plunge.
4) Stock market closings for – 18 OCT 19:
Dow 26,770.20 down 255.68 Nasdaq 8,089.54 down 67.31 S&P 500 2,986.20 down 11.75
1) Increase in spending on gasoline and cars is expected to boost retail sales for March above the dismal sales of February. These numbers are being watched closely because there are conflicting statistics in reports that will indicate if there is a down turn of the economy. The retail sales numbers are the last to be coming in.
2) Contributions to restore Notre Dame continue to come in, now totaling almost one billion dollars. Notre Dame didn’t have any insurance, but Lloyds of London estimates that full restoration will require about eight billion dollars. Initial investigation found that the church structure came close to total collapse.
3) Fears of ‘medicare for all’ caused the health care stocks to drop. So far, health insurance and hospital stocks are down about $28 billion dollars, but in general today’s markets closed unchanged.
4) 17 APR 19 Stock market closings:
Dow 26,449.54 down 3.12 Nasdaq 7,996.08 down 4.15 S&P 500 2,900.45 down 6.61
General Motors announced they were closing its operations in Venezuela. GM is closing shop in Venezuela because the Maduro government has seized their plant in Valencia.
As protests were on going in the country on April 19, 2017; protesters were clashing with the Maduro government over free and fair elections; and food scarcity within the country. Maduro’s government decided to take over the factory in Valencia. This seemed to be the last straw for the General Motors corporation.
The plant in Valencia, last produced a car in 2015 but the company has over 79 dealerships in Venezuela and close to four thousand employees. Venezuela has taken over private companies property many times before, especially when protests have broken out in the country. -SB
Tesla Motors purchased Solar City for $2.6 billion dollars. This initially means that there will be combination with the electric car maker and the solar model company, as they fuse their companies together respectfully. Many people believe with many questions if the effort to pair the two companies was a sound decision.
Solar City shares have been declining lately and many believe Musk wanted to save the company from it own ruins, so in order to do this was a buyout situation in which Tesla would buy Solar City and combine the two entities together. As for if this was a wise decision by CEO Elon Musk, only time will tell about this merger. -SB
Hyundai the global automaker will be selling off its logistical unit. The company is sellig a stake actually of about 13%, from their logical unit. The company is selling the unit because of a new law that was established in South Korea last year (2014), about controlling families and the company boards having conflict of interest in running day to day operations and regulating company governance.
The family and the company executive body, maybe using the sale as a maneuvering role by the Hyundai family to attain a larger controlling interest in their Hyundai Mobis franchise.
It is also speculated that the Hyundai family is building a 571 meter tower in South Korea which would then make it the tallest building structure in South Korea…