8 Janury 2021

1) The price of oil advanced as shrinking U.S. crude inventories added to expectations of a tighter global supply outlook after Saudi Arabia surprised the markets by pledging to reduce production for the next two months. Gasoline demand is falling to its lowest level since late May, spelling trouble for refining margins as a tighter global crude balance and straggling demand crimp profits for processing a barrel of oil. Saudi Arabia has decided to reduce crude output in February and March as part of an OPEC+ supply agreement. With the outlook for crude oil supply suddenly looking tighter, the oil options markets have grown less bearish.

2) A top scientist explains why a more infectious coronavirus variant is a bigger problem than a deadlier strain, with the deadly coronavirus having now mutated. One variant, called B.1.1.7, is more infectious, and has forced the UK into national lock down, with the variant having also been discovered in several US states, as well as other countries around the world. However, the new variant does not appear to be more deadly, so existing vaccines should also work against it. A really severe disease that one person gets won’t necessarily have as much impact as a lesser disease which a huge number of people get. While not any more deadly the new mutant B.1.1.7 is much more infectious, and is to blame for the surging numbers of people infected, filling up UK hospitals that forced the national lock down. It is estimated to have a 71% higher growth rate than other variants.

3) North Korea’s supreme ruler Kim Jong Un has announced a military expansion, but it is unclear if Pyongyang plans to ramp up its nuclear program too. This could put pressure on the incoming Joe Biden administration just when it is most vulnerable. North Korea plans to boost its military capacities in defiance of international sanctions, as well as a new five-year economic plan, admitting the previous program has failed. It’s unclear just what the military expansion will involve.

4) Stock market closings for – 7 JAN 21:

Dow 31,041.13 up by 211.73
Nasdaq 13,067.48 up by 326.69
S&P 500 3,803.79 up by 55.65

10 Year Yield: up at 1.07%

Oil: up at $50.91

Oil: up at $50.48

20 November 2020

1) The pharmaceutical company Moderna Inc. has announced its experimental coronavirus vaccine is 94.5% effective against Covid-19, the second vaccine to hit a key milestone in U.S. testing. The 30,000-subject trial, which is still underway, indicates it is effective at preventing disease that causes symptoms, while also showing signs of being safe. Moderna said it plans to ask federal health authorities to clear the vaccine by early December, and if approved, could go into distribution that month, making it one of the first Covid-19 vaccines to go into distribution in the U.S., where reported coronavirus cases and hospitalizations are surging. Earlier this month two other companies, Pfizer Inc. and BioNTech SE, said their experimental Covid-19 vaccine is more than 90% effective at protecting people from the virus in a large clinical trial.

2) American retail sales rose at a slower-than-expected pace last month, as spending slowed amid steady increases in weekly applications for unemployment benefits as the pandemic continues to accelerate. Retail sales for the month of October rose 0.3% to $553.3 billion, less than the forecasted 0.5% advance. Amazon, the online retail giant, is considered to be nearing its peak retail expansion in selling and delivering hard goods. Their problem is there’s really not much left to sell except maybe automobiles.

3) The spiraling COVID-19 crisis will confront president elect Joe Biden starting on day-one. But so far, there’s no indication he has any real plan and how he will get it done. He has vowed to enact a swift and aggressive national approach to combating COVID-19 with a federal mask mandate and impose similar restrictions at a local level. He wants to expanding testing and contact tracing efforts and use a more evidence-based approach in issuing guidance. But his success will partly hinge on the daunting task of controlling a spiraling pandemic that has constrained the country for nearly a year, and then repairing the economic damage it has wrought.

4) Stock market closings for – 19 NOV 20:

Dow 29,483.23 up by 44.81
Nasdaq 11,904.71 up by 103.11
S&P 500 3,581.87 up by 14.08

10 Year Yield: down at 0.85%

Oil: down at $41.58

5 November 2020

1) Even with the election stagnated, waiting on the counting of votes to find the winner, the markets were already climbing despite the final results could be days away. The Dow Jones industrial average whipsawed overnight, despite the uncertainty which usually depresses the markets. Nevertheless, the Dow climbed to a peak of over 700 points, with the Standard & Poor’s 500 index and Nasdaq also surging upward. The state of the Senate is also in doubt with neither side having a solid majority, another source of uncertainty. Voter turnout is expected to be the highest in more than a century. Experts expect volatile markets for the coming days, and maybe weeks until the election results are finalized. While bonds have dropped in their yield as expected, oil continues to gain in price. Even the foreign markets are showing an upward trend.

2) China’s new therapy for Alzheimer’s begins a much-anticipated U.S. study, the latest effort in the multibillion-dollar search for an effective treatment for the incurable disease. The drug made by Shanghai Green Valley Pharmaceutical Co. plans a $600 million dollar global Phase III trial. The U.S. Food and Drug Administration gave its approval in April to study whether the drug can produce lasting cognitive improvement among patients in the mild and moderate stage of the debilitating neurodegenerative disorder. The trial will have 2,046 people across China, the U.S. and Europe, the first 600 expected to start in the next six months. The first patients will begin taking the drug in four weeks.

3) Nearly 140 million votes have been cast in the 2020 elections, the most ever in a US presidential election, exceeding 2016’s record of 137.1 million. About 100 million people have voted ahead of Election Day, or about 73.4% of the total votes cast nationwide in 2016. The increased number of early votes is a result of heightened public-health concerns of coronavirus pandemic with in-person voting on Election Day. Several states have taken measures to expand early voting and access to mail-in ballots.

4) Stock market closings for – 4 NOV 20:

Dow 27,847.66 up by 367.63
Nasdaq 11,590.78 up by 430.21
S&P 500 3,443.44 up by 74.28

10 Year Yield: down at 0.77%

Oil: up at $39.11

OVER 3 MILLION AMERICANS ARE UNEMPLOYED BECAUSE OF THE CORONAVIRUS PANDEMIC!!!!!!!!!

image: nytimes.com

By: Economic & Finance Report

Over 3.3 million Americans have claimed unemployment benefits because of the coronavirus, the U.S. Labor Dept has indicated this past week. The virus has taken a toll on businesses, income wages and society’s everyday way of living.

These numbers reflect a growing number of Americans who are currently unemployed and are seeking financial relief; because of what the COVID-19 virus has done to their working wages. Many people have insisted that the impact has burdened them into massive financial debt.

It also has to be noted, that the United States has now surpassed all other countries with the most infected individuals who have tested positive for COVID-19. Over 85,000 people in the USA have the coronavirus, as presented by data by John Hopkins University on March 26, 2020 (US infections 85,840). SB

Sources: US Labor Dept; John Hopkins University Covid-19 Data

3 March 2020

1) Consumer electronics giant Samsung has started building a $220 million dollar research and development center in Hanoi, Vietnam. The center is to be completed by the end of 2022 and will employ between 2,200 to 3,000 people, and will be the largest of its kind in Southeast Asia. It will do research on subjects like artificial intelligence, internet technology, big data and 5G. Samsung is the single largest foreign investor in Vietnam, with investments totaling $17 billion dollars.

2) Huawei technologies, the controversial 5G supplier, is circumventing the barring of doing business with U.S. suppliers of critically needed electronic chips, by turning to manufacturing their own versions. The strategy appears to be working with Huawie selling more than 50,000 next generation base stations free of U.S. technology in their last quarter. The company is quickly ramping up its HiSilicon division to make more America component free devices, amide accusations that Huawei is stealing the intellectual property in making their own chips.

3) History shows that stocks often rebound quickly from a disease outbreak. Within six months, stocks are usually on the mend from drops caused by disease outbreaks. After the disastrous drops of last week, the markets started surging upward again, giving validity to this hypophysis- ‘Invest with a plan, instead of trying to predict trends.’

4) Stock market closings for – 2 MAR 20: Single greatest-gain in one day ever.

Dow 26,703.32 up 1293.96
Nasdaq 8,952.16 up 384.80
S&P 500 3,090.23 up 136.01

10 Year Yield: down at 1.09%

Oil: up at $47.52