1) The renowned Mall of America announced plans to lay off and furlough hundreds of employees. Located in Bloomington, Minn. the shopping center will permanently lay off 211 workers across various departments at the end of the month with an additional 178 workers to remain on furlough beyond the end of September. The Mall employs about 1,000 workers. Like most other malls in America, the Mall of America has suffered severely from the pandemic and need for social distancing. The malls across America have suffered a decline in recent years as people’s shopping habits and revenues decline. The Mall of America has been delinquent on its $1.4 billion dollar mortgage for May, June and July, and in turn some of its 500 retail tenants are unable to pay rent or having skip out on lease obligations.
2) Federal report warns of the threat from climate change to the economy. The report considers there are consequences that can create chaos in the financial system and disrupt the American economy. It’s considered that climate change poses a major risk to the stability of the U.S. financial system to sustain the American economy, that jobs, income and opportunity are at stake. This is just another indication of the increasing difficulty and expense of keeping individuals in a high technology society. The report makes 53 recommendations for dealing with the climate risks.
3) With the start up of college and return to campus life, there has been a sharp increase in coronavirus cases stemming from universities. For instance, the University of Tennessee has more than 2,100 students and staff members quarantined for Covid-19. As of Monday the university has 600 active cases of Covid-19. Of the 2,100 quarantined cases, about half are on-campus students and the other half off-campus. The surge is blamed on reckless behavior by a small portion of the students, especially traditional college parties with close personal contact. Many other American universities are having similar experience such as the University of Notre Dame, and North Carolina State. Some universities have implemented curfews, restrictions on visitors and even lockdowns of fraternities and sororities.
4) Stock market closings for – 9 SEP 20:
Dow 27,940.47 up 439.58 Nasdaq 11,141.56 up 293.87 S&P 500 3,398.96 up 67.12
1) The coronavirus economic troubles has reached out to touch social security. The social security is financed by the payroll tax, those social security deductions on worker’s paycheck and the SSI employers pay for each worker. With a little over 30 million people now unemployed, one out of every six American workers, the monies needed by the government to send out social security checks has been drastically reduced. But the government’s obligation has not been cut, they are sending out the same amount each month, so the government must spend monies they get from other sources. The social security program is the largest single source of federal spending, which is now even more shakier than before.
2) More states are beginning the process of relaxing restrictions on businesses and shut down orders. About half of the states are retracting closing orders for businesses deemed nonessential allowing them to open for business again. The states are using a patchwork of strategies to reopen, based on the type of business and how their operations expose the public to infection of the virus. Two states with large populations, Texas and Ohio, have joined in the reopening process. States are feeling enormous pressure to restart businesses and restore social life, mostly in the South, Midwest and mountain West leading the way. There are big questions if the reopening is too early, that the waning virus infection might suddenly erupt in force.
3) American colleges and universities are also facing crippling financial difficulties from the coronavirus impact, with some small colleges already closing. They are having to bear the cost of having to suddenly shift to online classes, giving partial reimbursements of room and board, plus deferring summer secession without a change in their fixed cost of operations. Many experts considering the college education system is being forever changed in America.
4) Stock market closings for – 1 MAY 20:
Dow 23,723.69 down 622.03 Nasdaq 8,604.95 down 284.60 S&P 500 2,830.71 down 81.72
1) The dizzying swings in the stock market has made a mockery of efforts to forecast the market. This phenomena graphically reveals the high degree of uncertainty prevalent in the world today. One day, markets are up by one or two thousand points, next day down by the same amount as people are unable to decide if the economy will grow or contract. Market experts are unable to decide if the economic downturn is a short impulse from the coronavirus, or a long term event covering months or even years. One major component in seeing the economic future is the question of how many small businesses will fail during the shutdown, most from lack of cash. A high number of failures could drag the rest of businesses down.
2) American colleges and universities are also suffering financial problems from the coronavirus shutdown. Institutions are scrambling to close deep budget holes from loss of tuition and fees, refunds for student housing, dining and parking from students forced to leave school. Some have had a huge share of their reserves wiped out with some schools are facing financial collapse. Some face a double loss with their reserves in the stock market. To add to college’s worry, is the question of how many students will return this fall if the shut down is over. Furthermore, surveys show significant number of highschool seniors planning to take a year off before continuing their education, another loss of revenues for colleges.
3) Because of the virus shut down, demand for gasoline in America has collapsed. Sales are down 46.5% from last year. The same sharp decline in gasoline sales has been seen in Europe with demand for gasoline down as much as 85%. With big box retailers slowing and automakers shutting down, a slowdown is expected in the next few weeks.
4) Stock market closings for – 7 APR 20:
Dow 22,653.86 down 26.13 Nasdaq 7,887.26 down 25.98 S&P 500 2,659.41 down 4.27
1) The ever present problem of growing student debt is being aggravated by the ever rising cost of college. This rise in cost is fueled by decreasing funding by governments, a lack of cost controls by college administrations and an emphases on plush facilities instead of real education support.
2) Manufacturing shrank in August for the first time since August 2016. The manufacturing index slid to 49.1 from 51.2 in July, where an index below 50 signals a contraction. Production declined by 1.3 percent while employment fell by 4.3 percent with new orders falling by 3.6 percent. With the trade war increasing the cost of Chinese manufactured imports, it would be expected that American manufacturing would be increasing.
3) The United Auto Workers union is targeting GM for contract talks, with the UAW approving a strike. The UAW represents nearly 150,000 hourly workers at Ford, General Motors and Fiat Chrysler with 96% of it’s workers OKing a strike. Leaders of the UAW are under investigation for corruption by the FBI who have conducted raids on key leadership members recently for mis use of monies. The union is angry at GM for layoffs and the closing of plants, plus production plants in Mexico.
4) Stock market closings for – 3 SEP 19:
Dow 26,118.02 down 285.26 Nasdaq 7,874.16 down 88.72 S&P 500 2,906.27 down 20.19