1) The devastation that the coronavirus fears has wrought on Europe’s tourist industry is brought into glaring focus in front of the famous Mona Lisa painting in Paris. Where there would normally be a continuous surge of admiring people to view the art classic, now just vacant space. The same at St. Peter’s Basilica in Rome, the normally long lines of waiting people to get in, are also gone. The drop in tourism is costing the EU (European Union) $1.1 billion dollars a month, just when the high season is getting under way. Expectations are that it will only get worst as the year progresses.
2) General Motors is making an all out effort to dominate the EV (Electric Vehicle) market and in the process beat Tesla at its own game. GM has developed new battery modules called Ultium that is said to reduce the cost of batteries and therefore make more affordable EVs. Plans are to offer 20 new EVs by 2023, both in America and China, with marketing plans to sell one million electric cars in the next five years. However, the UAW is concerned that EVs will hurt the union because they require less manpower to assemble. Presently, GM holds over 3,000 patents on electric automobile design.
3) Seattle area school district has closed down its 33 schools of more than 23 thousand kids for up to two weeks due to the coronavirus threat. These students will use online teaching during this time through Google Apps for Education. Students needing a device or internet connection will be provided with one. Teaching staff have been provided with a one day instruction on using the apps and how to monitor the progress of their students. ATS (Automated Teaching Systems) has been on the cusp of revolutionizing American schools, and the coronavirus may provide the impetus to open the market to wide spread commercialization.
4) Stock market closings for – 5 MAR 20: The instability of the markets continue with wild swings of the trading indexes.
Dow 26,121.28 down 969.58 Nasdaq 8,738.60 down 279.49 S&P 500 3,023.94 down 106.18
1) As the coronavirus continues the slowing of China’s economy, coupled with a general slow down in world economies, world oil prices are dropping. China is the world’s largest oil importer, with speculation that if oil continues to drop, America can expect a drop in gasoline prices, possibly going below $2 a gallon.
2) The credit card company Visa is planning major changes to the rates U.S. merchants pay to accept its cards. These changes are the biggest changes in a decade, with Visa hoping to encourage people to abandon checks and cash. Higher rates are coming for transactions on e-commerce sites, while certain retailers such as real estate and education will see lower rates. Retailers have long complained about the $100 billion plus dollars they spend each year to accept electronic payments.
3) Ford Motor Co. has posted a fourth quarter loss and provided weaker than expected 2020 forecast due to continued higher warranty cost, lower vehicle volumes, lower results from Ford Credit branch, and higher investment in future transportation. This is coming at a time when Ford and other automakers are making huge investments in producing a line of electric cars and trucks. For the fourth quarter, Ford is reporting a net loss of $1.7 billion dollars, or 42 cents a share. Revenue for the fourth quarter was down 5% to $39.7 billion dollars.
4) Stock market closings for – 4 FEB 20:
Dow 28,807.63 up 407.82 Nasdaq 9,467.97 up 194.57 S&P 500 3,297.59 up 48.67
1) Ford Motor Company’s sales in China has declined for the third straight year, falling by 26.1%. The company has been trying to revive sales in China after the decline started in 2017 and plans to introduce thirty new models in the next three years, with a third being electric models. General Motors has also experienced a decline in sales of 15% this last year.
2) One of the largest suppliers of parts to Boeing’s 737 MAX, Spirit AeroSystems, is laying off 2,800 workers. Based in Wichita Kansas, will eliminate 20% of its workforce. Smaller layoffs will happen at its facilities in Tulsa and McAlester, with half its annual sales from parts for the 737 MAX. Since last February, Spirit’s stock has fell from a high of $100 a share to $71.50 on news of the layoffs.
3) Expectations are that the U.S. will remove China from its list of currency manipulators two days before the signing of initial U.S. – China trade agreement. Part of the agreement is that both nations will not devalue its currency to gain a competitive advantages of exports. Labeling China a currency manipulator was viewed largely as a symbolic action.
4) Stock market closings for – 13 JAN 20: Stocks are up 495% in the past decade.
Dow 28,907.05 up 83.28 Nasdaq 9,273.93 up 95.07 S&P 500 3,288.13 up 22.78
1) The automaker of electric cars Tesla has made its first deliveries of their Model 3 that were manufactured in China. The gigafactory in Shanghai is Tesla’s first outside the U.S., which is expected to significantly boost Tesla sales in China, which Tesla considers will become its largest market for the Model 3. Production will soon be 1,000 cars a week, eventually reaching an annual production of 150,000 a year.
2) The national average price for gasoline increased by 1.6 cents to $2.57 a gallon. Gas prices had been dropping for seven consecutive weeks prior to the upswing. The price increase is a result of the drop in oil inventories while oil prices are above $61 a barrel. Gas prices are above $3 a gallon in Hawaii, California, Nevada, Alaska and Washington, while Missouri, Oklahoma, Mississippi, Texas and Louisiana are the five states with the lowest priced gas states.
3) Vietnam is switching from producing and selling raw robusta beans on the commodity markets, to producing instant coffee for the burgeoning Asian market. Instant coffee brings more profit with less risk while also bringing protection from large swings in international commodity prices. Vietnam aims to overtake Nestle as Vietnam’s biggest pure instant coffee supplier in the next five years, and doubling its coffee exports to $6 billion dollars a year.
4) Stock market closings for – 30 DEC 19:
Dow 28,462.14 down 183.12 Nasdaq 8,945.99 down 60.62 S&P 500 3,221.29 down 18.73