3 October 2019

1) Despite positive last quarters, both General Motors and Ford Motor company’s are concerned about the U.S. auto market taking a turn for the worse. Shares for the two automakers, as well as Fiat Chrysler, fell because of smaller figures for the quarter, although smaller than market analysis projected. There are also concerns of the overall impact from a slowing U.S. and international economies with the impact it would have on new car sales.

2) For the second day, the stock markets nose dived with the Dow losing more than 800 points these last two days. Fears of an economic recession cause the Dow to lose 490 points on Wednesday, with indications that manufacturing is slowing down, and even though manufacturing accounts for only 10% of the economy, investors see this as an indication that the economy is contracting soon with a possible recession in the near future.

3) With the markets in decline, there is a lot riding on the up coming job numbers this Friday. Fears of a coming recession could be reinforced with poor job numbers signaling that a recession is nearing. So far, there is little evidence of layoffs on the rise despite scattered reports that more companies are cutting jobs.

4) Stock market closings for – 2 OCT 19:

Dow           26,078.62    down    494.42
Nasdaq        7,785.25    down   123.44
S&P 500       2,887.61    down     52.64

10 Year Yield:    down   at    1.60%

Oil:    down   at    $52.47

1) There are expectations that global growth will slow this year to a rate that can become a financial crisis. The Organization for Economic Cooperation and Development claims new data showing the US-China trade dispute is increasingly threatening the outlook of the two largest economies as well as others. Furthermore, the uncertainty from the Brexit and a possible crash out would further aggravate economic growth in the European sector.

2) Saudi Arabia is avoiding a global oil crisis by using the crude it holds in reserve until production can be fully restored. The Saudi’s claim necessary repairs will be completed in two to three weeks, thus restoring production levels prior to the attack. However, oil experts are skeptical that these repairs can be done in such a short period of time. This uncertainty is due in part from Saudi Arabia’s lack of transparence of their oil operations.

3) Good news for home owners, sales of used homes rose to its highest in more than a year, with the median price up 4.7% from last year to $278,200. This home sale bonanza is fueled in part by the low interest rates now available and by income gains. However, there are fears of a global economic slow down darkening this rosy picture in the near future. Presently, it would take 4.1 months to sell all the available houses, with realtors considering anything below a five month supply a tight market.

4) Stock market closings for – 19 SEP 19:

Dow              27,094.79    down   52.29 
Nasdaq           8,182.88          up     5.49
S&P 500          3,006.79          up     0.06

10 Year Yield:    down   at    1.77%

Oil:    $58.68

NIGERIA & SOUTH AFRICA EXIT RECESSION !!!!!!!!!!!!!!!!

By: Economic & Finance Report

Two of Africa’s biggest economies have officially exited recession.  In the second quarter of 2017, Nigeria’s economy improved by 0.55%, a large part attributed to Nigeria’s growing agri sector (agriculture); as well as Nigeria’s oil production stabilizing again.

South Africa economy grew by 2.5% also attributed by their economy’s agri sector also. Nigeria for the past 25 years had not been in a recession, so when the country contracted this past year; it took many people by surprise, while in South Africa many economic factors played into its recession, especially from the finance sector and government interference tailgaiting corruption scandals. -SB

*The National Bureau of Statistics of Nigeria & South Africa provided current  statistical data*

10 BEST STOCK EXCHANGES IN AFRICA FOR 2016………………

By: Economic & Finance Report

Every year there is a study of the top best stock exchanges in Africa. Last year’s (2016) study was conducted by Jamelle Cole, CFA, CPA for Relentless Investment Research.

Mr. Cole’s analysis included indicators such as trade data, historical dividends, company evaluation/information, and trading hours by their respective exchanges.  Each category for each trading exchange; the highest number they could possibly accumulate was a 5.

The top 10 stock trading exchanges in Africa that made the list for 2016 (last year) in numerical order, were countries such as:

  1. CSE (Casablanca Stock Exchange) (Morocco)
  2. ZSE (Zimbabwe Stock Exchange) (Zimbabwe)
  3. NSE (Nigerian Stock Exchange) (Nigeria)
  4. LuSE (Lusaka Stock Exchange) (Zambia)
  5. EGX (Egyptian Exchange) (Egypt)
  6. GSE (Ghana Stock Exchange) (Ghana)
  7. JSE (Johannesburg Stock Exchange) (South Africa)
  8. USE (Uganda Securities Exchange) (Uganda)
  9. BSE (Botswana Stock Exchange) (Botswana)
  10. NSE (Namibian Stock Exchange) (Namibia)

There you have it; these are top stock and securities exchanges in Africa, for the year 2016. We shall see what the list has forthcoming in 2017…..-SB

*Study conducted by Mr. Jamelle Cole, CFA, CPA *Source: Relentless Investment Research*