1) Ten million people have rushed to file unemployment claims only to find a system swamped to the point of being nonfunctional. State websites are buckling, their phone lines jammed with backlogs mounting from jobless people seeking benefits, needing help. To make matters worst, the federal government has not dispersed all the necessary monies to states so there isn’t enough money for benefits. While the coronavirus is concentrated in a few areas of the country, the economic havoc has been nation wide.
2) Wells Fargo bank is bowing out of the new federal program aimed at helping small businesses retain workers and pay bills. The bank is no longer accepting new loan applications under the Paycheck Protection Program, which is part of the $2.2 trillion dollar economic relief package. The bank had committed $10 billion dollars to the loan program, but has already reached more than that amount in applications. Last year, Wells Fargo arranged more small business loans than any other lender. The Paycheck Protection Program offers 1% interest loans to business with fewer than 500 workers, and if borrowers don’t lay off workers in the next eight weeks, they will have their loans and interest forgiven. The program allots $350 billion dollars, but as of Friday only 17,000 loans have been approved for a total of $5.4 billion dollars.
3) Jamie Dimon, CEO for JP Morgan Chase, predicts a ‘bad recession’ as a result of the coronavirus, where the GDP (Gross Domestic Product) could plunge as much as 35% annual rate in the second quarter with a down turn lasting the rest of the year. Furthermore, the unemployment rate could spike as high as 14% during this recession. Because of the extension of new credit, a major recession means we are exposing the bank to billions of dollars of additional credit losses in helping businesses through this setback.
4) Stock market closings for – 6 APR 20:
Dow 22,679.99 up 1627.46 Nasdaq 7,913.24 up 540.16 S&P 500 2,663.68 up 175.03
1) Estimates for National Employment Report forecast 140,000 new jobs, but private employers added just 102,000. This compares to 41,000 new jobs for the pervious month. This report comes ahead of the U.S. Labor Departments’s more comprehensive non-farm payrolls which includes both public and private sector employment.
2) Renown former Chrysler CEO Lee Iacocca, the man who put the Mustang in Ford’s lineup, has died at 94. Mr. Iacocca is also noted for creating the minivan and Chrysler K-cars in his 32 year career in Detroit. He’s best noted for his turn around of Chrysler corporation when in 1979 the company was floundering with $5 billion dollar debt turning out gas guzzler cars that people didn’t want. To save the company, he secured $1.5 billion dollar loan guarantees from the Federal Government which kept the company afloat until new fuel efficient cars could be produced.
3) The U.S. trade deficient surges to a five month high in May as imports of goods increased with businesses building up stock supplies to avoid tariffs. The trade deficit increased 8.4% to $55.5 billion dollars. The widening trade deficit adds to weak housing, manufacturing, business investment and slow consumer spending which may spell a lowering of the American economy. The trade deficit may be further aggravated with the suspension of Boeing’s 737 MAX deliveries.
4) Stock market closings for- 3 JUL 19: Stocks surged up on news of new U.S.- China talks.
Dow 26,966.00 up 179.32 Nasdaq 8,170.23 up 61.14 S&P 500 2,995.82 up 22.81
President Trump is set to nominate Herman Cain for the US Federal Reserve Board of Governors.
Herman Cain was a former presidential candidate in 2012. He also served as chairman of the Kansas City Federal Reserve Board. His business background includes being the President/CEO of Godfather Pizza, CEO of National Restaurant Association, and being on boards such as Nabisco, Whirlpool, & Reader’s Digest.
Mr. Cain to be on the Fed Board, would have to pass an extensive background check and Senate confirmation process.-SB
On Thursday July 27, 2017, Amazon head honcho/founder and CEO, Mr. Jeff Bezos surpassed Microsoft founder Bill Gates, as the richest person in the world, he toppled Mr. Gates with an estimated net worth of $90 billion.
Later on Thursday July 27, 2017 Amazon stocks missed quarterly (Q2) estimates, Bezos net worth declined to $85.9 billion making him #2 richest person (After Bill Gates), thus allowing Bill Gates to reclaim his “richest person mantle” again.
Mr. Bezos and Amazon have had a productive year so far, having purchased Whole Foods, a middle eastern online retail giant Souq.com, and a host of other investments; such as the expansion of warehouses, streaming/content services, as well as marketing and promoting in house products such as the Echo Fire Stick. The Amazon brand remains a strong brand and even a more competitive household name. Successful contributions by an even more accomplished man.
Blackberry shares dipped a bit on Friday because of their mixed earning report for the end of the year quarter. Finishing down to $9.99. There seems that there is still a lot more work to be done as Blackberry is restructuring the company.
The company did below what analysts had predicted of $1 billion dollars in revenue. Blackberry reported losing $148 in revenue in the 3 quarter. Blackberry executives expect the company to continue with either “break-even” or a little better route in their cash flow for 2015, but the Chairman/CEO John Chen expects Blackberry to hit profitability in the beginning of 2016.