1) German economic forecast for growth has been reduced as foreign industrial orders fall. Last year, Germany narrowly skirted a recession. The forecast for economic growth was reduced from 1.8% down to 1.0% due to slower global economic growth and the uncertainties from Brexit.
2) There are about 54,000 bridges in America which need urgent repair, and it’s estimated it will take 80 years to rebuild them. The report by the American Road and Transportation Builders Association says that about 9% of the highway bridges are deficient with 174 million vehicles crossing each day. On a rating scale of 0 to 9, a rating of 4 or below is considered deficient.
3) Oil prices briefly topped $70 for the best grade of crude oil, but was unable to hold because of signs of tightening global supplies plus uncertainty over world economic outlook. Prices were pushed up by forecast of declining OPEC exports.
4) 4 APR 19 Stock market closings:
Dow 26,384.63 up 166.50 Nasdaq 7,891.78 down 3.77 S&P 500 2,879.39 up 5.99
1) Trump’s Venezuela oil sanctions has put Russia’s massive loans at risk. With loans of over $7 billion dollars from Russia, which were to be repaid in crude oil delivers instead of currency, Russia faces ‘no payment’ until the sanctions are lifted.
2) Because of the increased production of oil in the US and imports from Canada, the use of oil carrying trains is increasing after having declined. Pipe lines are unable to carry the increasing volumes of oil to refineries.
3) Italy is now in negative economic growth for the second quarter, with no prospects of reversal in the near future.
4) 31 JAN 19 Stock market closings:
Dow 24,999.67 down 15.19 Nasdaq 7,281.74 up 98.66 S&P 500 2,704.10 up 23.05
Aramco, Saudi Arabia’s state owned oil corporation is valued over a cool $2 trillion dollars net. Saudi Arabia is selling a stake of the oil giant, somewhere less then 5% according to analysts. The company will be transferred into a holding company as well, which will have a board that would be elected to monitor the business dealing of Aramco and its subsidiaries.
The Saudi government plans to institute a $2 trillion wealth fund that will diversify the Saudi economy and have the entity to be less dependent on oil and crude products. The Saudi government wants to move away from being too reliant on oil and crude since the depletion of oil prices within the past year. -SB
Asian stocks posted higher gains because of the rate cuts that were provided by China. China cut it’s deposit and lending rates, so it can offset deflation. The gains posted in Asia were somewhat limited because of small data adhered in the U.S. equity markets, which did not show major significance in its economic data.
US consumer buying did beat expectations but it did not send a ripple effect in the equity markets. The US dollar inched up .01%, while the Euro snagged $1.1160, which happened to be the Euro’s five year low. China yuan fell greatly to the US dollar, while US crude fell $.37 cents. In February US crude oil netted its first gain monthly, the last monthly gain in crude oil was in June 2014…