1) With many of the big box stores under siege from store closings and bankruptcies, the U.S. retail sales has suffered a record drop in March. In turn, factory outputs have declined by the most since 1946, as part of the coronavirus economic contraction in the first quarter. The drop is the sharpest rate in decades despite the measures taken to prop up the economy. People are now making comparisons to the Great Depression of 1930’s, considering this recession will be as deep if not deeper than that depression. People are losing jobs by the millions, and one question is how many of those jobs will return and how many will be taken by technology displacement. Last month, retail sales plunged 8.7%, the biggest decline since 1992 when government began taking numbers. Restaurants and bars are included in the retail decline with a drop of 26.6% last month, although grocery and health care rose. Consumer spending has dropped sharply with forecast of a 41% decline for second quarter. Consumer spending accounts for more than two thirds of the U.S. economic activity.
2) The price of oil has fallen below $20 per barrel because of predictions of a record slump in world demand. In April, global oil demand is expected to fall by 29 million barrels a day from last year. This is oil demand levels that was last seen in 1995. The U.S. had been oil independent for several years now, because of its domestic shale oil production, but for this oil to be profitable to extract, oil prices must be above $40 a barrel. With oil prices forecast to be low for the foreseeable future, the shale oil industry is in dire straights.
3) Time when companies are under stress, such as during a recession, provides impudence for them to reorganize and streamline their operations. By adapting to a new environment through restructuring of a company, they are able to reduce operating cost, thereby being better able to survive. Recession brings layoffs and furloughs, so companies seek to get work done with fewer people, usually by using new technologies. Consequently, those jobs are gone, never to return, when the economy returns to health.
4) Stock market closings for – 15 APR 20:
Dow 23,504.35 down 445.41 Nasdaq 8,393.18 down 122.56 S&P 500 2,783.36 down 62.70
1) The retailer giant Amazon is expanding into the grocery business by leasing retail space across the Los Angeles area, signing leases for more than twelve locations. This is the first step of plans to open grocery stories across the nation. Amazon job postings are looking for people to work in retail concepts for a multiple customer experiences under one roof. Stores are reportedly to be about 35,000 square feet and intended to compete with big box stores such as Walmart, Target and Kroger.
2) The Institute for Supply Management says its manufacturing index dropped to 47.8 last month, the lowest since June 2009, below the forecast 49.1. Indexes below 50 indicate a contraction in manufacturing. Manufacturing accounts for 12% of the GDP (Gross Domestic Product), so a slowdown could effect other parts of the economy. Other indicators have shown output increased over last month.
3) Oil prices record its weakest quarter since late last year as fears over a global economic slowdown overshadowed the attacks on Saudi Arabia’s oil production facilities. Brent futures are down 8.7% since the end of June, despite the peak after the attacks. The price of oil is considered an economic indicator, since demand goes down as economies slow down, making more oil available, thus causing oil prices to decline.
4) Stock market closings for – 1 OCT 19:
Dow 26,573.04 down 343.79 Nasdaq 7,908.68 down 90.65 S&P 500 2,940.25 down 36.49
Wrap up of 2018 episode, Sammy BE (Bizman Bassey), James Lyman &
on the boards, magic Jon Don Sterling. The trio discussed topics and
issues ranging from economy, business, trade, and a little politics, for
the year of 2018.
Sammy and James spoke on the trade policies
with China, the new USMCA Trade Agreement between USA, Mexico, &
Canada (replacing of NAFTA). Problems that may have handicapped General
Motors (GM); Saudi Arabia policy & reporter death of Jamal
Khashoggi. The gentlemen ended of the 2018 year speaking of the
improving US economy (GDP) and the new Congress (Democratic House,
Republican led Senate), that will be entering in January 2019.
This a mouthful that you don’t want to miss, ending of 2018 wrap up episode…. Happy New Year… See You In 2019
We have a new section on Economic & Finance Report, entitled EARS To The GROUND…
EARS To The GROUND,We will be showcasing daily reporting from new around the world (mainly on economic, economy, business, finance, but not limited to) news sources that is readily available, and has been readily available.
EARS To The GROUND, will be providing tid-bits from news around the globe that our readership may not know is available or would want insight on….
Stay Tuned 4 EARS To The GROUND…….. SB
1) Slow growth of European manufacturing continues for 18 months as a result of fears of international trade. The issue of trade tariffs and the impact of exports from Europe leave manufactures reluctant to invest in expansion fearful that their markets may diminish leaving them high and dry..
Latin America will contract this year, about -0.6% according to the The Economic Commission for Latin America and the Caribbean (ECLAC). Some Latin American countries in the region are either heading to a recession or are already in a recession.
There has be slow growth rate recorded in some countries within the region, and the slow development of China and other emerging markets have not made it easier for Latin America to do substantial trading, without the growth of Latin America’s trading partners such as China, it makes it hard for Latin America to export and generate revenue from sales of goods and products. Much of South America trades commodities with China, and this variable definitely provides the contraction period to extend throughout the whole year of 2016.
In Central America, economies are seeing a decline of -1.9% from the previous year, which was 4.3% (2015) and it is currently 3.9% (2016), according from the data reported from (ECLAC).
The Latin Caribbean countries reported growth of 0.9% from the previous year in 2015 (ECLAC). -SB