28 Auguest 2020

1) The decay of the worlds airline industry is reaching out past the airline companies themselves, with jet engine maker Rolls-Royce announcing a $7 billion dollar lost for the first half of 2020. Rolls-Royce gets paid by the hours their engines are flown on airliners, and with the massive drop in air travel from the pandemic, the company’s revenues have drastically dropped leaving its survival in doubt. The company is being forced to sell assets to meet its cash needs, so they are reducing eleven of their locations to just 6, with the loss of 9,000 jobs. Stock dropped 9% on the news of reorganization which was already down 66% since the start of the virus crisis.

2) Not all of the retail industry is bleak news, with Abercombie & Fitch outperforming expectations in the second quarter. While the apparel company did lose ground in the last quarter, it performed better than analyst expected, with sales down by 17%, nevertheless their earnings per share made remarkable gains over last year. This is a result of aggressive costs reductions earlier in the quarter when the company slashed expenses by $200 million dollars by reducing salary expenditures and skipping dividends. Success in their e-commerce operations has also pushed up the revenues and promises to add more as people go to online for more of their shopping.

3) Another small indication that manufacturing is returning to America is Roche Holding AG plans to move its glucose testing strips manufacturing plant from Pueto Rico, where it has operated for about 40 years. The company is streamlining its operations by combining the plant with its other existing facilities. The move will cost 200 jobs in Peuto Rico, which has a number of other drug and medical device manufacturing plants.

4) Stock market closings for – 27 AUG 20:

Dow 8,492.27 up 160.35
Nasdaq 11,625.34 down 39.72
S&P 500 3,484.55 up 5.82

10 Year Yield: up at 0.75%

Oil: down at $42.96

2 December 2019

1) Deere & Co., the famous manufacture of green and yellow tractors, reported lower earnings blaming trade tensions and poor weather in the U.S. farm belt. Last year’s difficult growing and harvesting conditions have made farmers cautious about investing in new farm equipment. Sales of the construction and forestry division are expected to be down by 10% to 15%, while agricultural is down 5% to 10% next year.

2) Texas oil explorers say predictions of shale production isn’t reflecting the industry’s slowdown. Producers are being starved of funding, stocks have plunged and little interest in public offerings, which may cause a downturn to be more enduring. Seeking to cut costs, drillers have laid off 1,000 workers. There are predictions that U.S. oil production growth will flatten as early as 2021. There is a rapid decline of shale well production, partly a result of placing wells too close together.

3) Global manufacturing has been dragging the world economy down this last year. Weak auto sales have added to the problem, with China’s auto market the worst with a 11% decline in sales. Slow auto sales have cut production at auto plants, with Audi cutting 7,500 jobs. U.S. dealerships are struggling to clear inventory for the new year, with a 12% rise in incentive spending in November, compared to a typical 4%.

4) Stock market closings for – 29 NOV 19:

Dow         28,051.41    down    112.59
Nasdaq      8,665.47    down      39.70
S&P 500     3,140.98    down      12.65

10 Year Yield:    up   at    1.78%

Oil:    down   at    $55.42

CHINA PLACES RATE REFORMS FOR COMPANIES………

By: Economic & Finance Report

The Central Bank of China instituted key interest rate reforms on Saturday, August 17, 2019. The China’s Central Bank did this to help companies and corporations with borrowing costs.

China has been suffering from the trade war with the US. The lower interest rates could help companies with lowering their borrowing costs. The central bank will be trying to improve thier interest rates, which will then assist these companies in borrowing costs that would be minimal.

China’s State Council indicated they want the country to focus on market based reformation, which will then lower real interest rates significantly. -SB

MERCEDEZ BENZ US HEADQUARTERS IS RELOCATING… TO ATLANTA…

 

mercedez benz

By: Economic & Finance Report

 Luxury  car maker Daimler AG (Mercedes Benz) is relocating down to Atlanta. The US  headquarters in New Jersey will no more be in existence.

Executives and management indicated that the shift was provided because of lower costs, the tax breaks they would receive and the close proximity to their southern car plants which is located in the state of Alabama. 

The shifting of personnel is expected to occur in July 2015, which  will include 1,000 personnel movint to the suburbs of Atlanta.  Executives @ Daimler AG also indicated that the relocation made sense because of the dynamic presence of the south currently and the infrastructure renovation that Atlanta has be going through in the last few years, made the decision much easier to relocate US operations down south

-SB

APARTMENT RENTERS: EXPENSIVE CITY AREAS TO LIVE IN THE U.S.

apartments bldng

By: Economic & Finance Report

As prices of products and services increase so do living conditions around the United States.  Survey that was conducted by Apartments.com, below are expensive apartment rentals sections/cities around the country…

1) Philadelphia, Pa: Bottom of the list. (Home of Brotherly Love)

2) Pasedena, Ca:  Nothing like being close to southern LA, and celebrity life.

3) Washington, D.C. The nation’s capitol, why not they government regulates damn near everything anyway, to say the least… Why not place being expensive place to rent an apartment as well.

4) Queens, NYC:  Whoo-hoo we made it QU…. The apartment and cost of living is decent Not that expensive,  definitely suburban life, houses, yards, garage, drive way…. I should know, I’m from there….

5) San Diego, Ca: Nothing like living in Southern California, sun, beaches, good life…..

6) Newport Beach, Ca: That beach sun life, shout out to San Diego our cousin’s… Can’t forget beautiful women life….

7) Jersey City, NJ: I can see this, expensive apartments, condos, coops, especially by the water.. The view of looking toward New York City… Million dollar views… I see this definitely.

8) Great Neck, LI…  Long Island definitely expensive and the taxes yeeeesssshhhh…Hope you have a good income for the property taxes…

9) Palo Alto, Ca: Tech city baby… Latest technology home bases…

10) Oakland, Ca: Wow Oakland has come a long way… Expensive apartments to rent, very interesting….

11) Boston, Ma: Those Bostonians do it again, making the list.. I see you guys, watching you guys and gals too (lol).

12) San Francisco, Ca: I see the Golden Gate Bridge: South side lifeeeeeeeee…

13) Brooklyn, NYC: Big Ups to Broooooookkkkllllllynnnnnnn….

14) Manhattan, NYC:  Tops the List...Of course, everything in Manhattan is expensive not just apartment…. Lavish lifestyle, I should know… Trust I should know….

-SB