1) Demand for oil is shrinking as the trade war causes the world economies to retract. China’s economy is slowing faster than experts had expected, with the EU and US also not growing in oil demand. Fears that oil prices will drop below $40 a barrel fuel fears of a continual global slowing of economies. The U.S. boom in domestic oil production using fracking is dependent on high oil prices, and with American petroleum stocks at an all time high, it may not be feasible to continue fracking.
2) With mortgage rates dropping to their lowest level in nearly two years, there has been a surge in refinancing applications. In just one week, applications increased 26.8%, which is 41% greater than a year ago. Refinance mortgages are the most rate-sensitive because when low, people rush to refinance while they can get the lower rates.
3) For the second straight month, Boeing aircraft reports no new aircraft sales. The drop isn’t just because of the 737 MAX grounding, but the company already has a massive 5,000 aircraft backorder to fill, so many customers don’t need to place additional orders. With the airline Jet Airways halting operations, their pending sales contracts have been canceled, which totaled 71 aircraft.
4) Stock market closings for- 12 JUN 19:
Dow 26,004.83 down 43.68 Nasdaq 7,792.72 down 29.85 S&P 500 2,879.84 down 5.88
1) Boeing has not received any new orders for its 737 since its grounding, in addition, Boeing has had 100 cancellations of orders. Its stock is down 19%, but worst its stockholders have filed a law suit against Boeing claiming the company has defrauded its investors because Boeing failed to disclosed safety issues concerning their 737 MAX-8.
2) British Prime Minister May has asked the EU (European Union) for a second extension. Britain will be leaving the EU this Friday if an extension is not granted, so the EU held an emergency summit to consider warnings that a crash-out might cause a recession. Last reports are that the EU will grant an extension to 31 October this year.
3) The ECB (European Central Bank) will leave interest rates steady, forecasting no change for 2019. The ECB is being forced to backtrack on its tightening monetary policy as signs of a world economic slowdown are increasing.
4) 10 APR 19 Stock market closing:
Dow 26,157.16 up 6.58 Nasdaq 7,964.24 up 54.97 S&P 500 2,888.21 up 10.01
1) In ten years, the US debt to GDP ratio will be equal (100%). The debt to GDP ratio is presently 78%, the highest since the end of World War II, but it’s anticipated to be 96% by 2028. To bring this into perspective, countries with sever economic problems such as Greece have a ratio of 188%, Italy 130%, Portugal at 120% and Spain with 97%. On the positive side, Germany has a ratio of 59%. The IMF is warning of the problem for America if the ratio is left to continue as is. A high ratio hinders a government’s ability to counter any economic downturn. America’s entitlements is the principle cause for the increase, because when Social Security was started, there were 16 workers to support each retiree, now there are just 2.6 workers.
2) European Union borrowers are eager to see how a Brexit extension will effect markets, by possibly reducing the uncertainty that Brexit has brought on. This spring, the IMF and World Bank will be meeting for their annual conference on world economic matters.
3) Tesla, the maker of electric automobiles, is starting its new quarter with another round of cuts of sales staff following poor deliveries. The company is closing some of it’s show rooms in favor of online sales. These actions are rattling investors by stoking confusion.
4) 8 APR 19 Stock market closing:
Dow 26,341.02 down 83.97 Nasdaq 7,953.88 up 15.19 S&P 500 2,895.77 up 3.03
1) The executive and CEO of Quadriga, Canada’s largest crypto exchange, dies with $145 million dollars of customer money electronically locked away. Only the CEO knew the pass words needed to unlock the money.
2) EU economic slow down, with EU experiencing its weakest growth since 2013, amidst manufacturing slowdown. The German economy is accelerating while Frances is slowing down.
3) Tech companies Slack, Airbnb and Uber are making their IPOs this year, but several other tech companies are pulling their plans for IPO because of the uncertain world economic.
4) 5 FEB 19 Stock market closings:
Dow 25,411.52 up 172.15 Nasdaq 7,402.08 up 54.55 S&P 500 2,737.70 up 12.83
1) With just seven weeks remaining before Brexit, Scotland is warning of the looming consequences, but so far has been sidelined and ignored. Contend that Britain is not remotely prepared for exit and therefore calls for an extension, fearing a ‘crash out’ will be a catastrophe because EU rules touches every aspect of EU trade, and therefore will cause trade to come to a sudden halt.
2) White House economic adviser critiqued the Democratic tax proposals being pursued as being economically illiterate.
3) Car dealers are holding large numbers of unsold cars with sales expected to drop this year. This will put pressure on manufactures to cut car production and offer deep discounts to lower inventories.
4) 4 FEB 19 Stock market closings:
Dow 25,239.37 up 75.48 Nasdaq 7,347.54 up 83.67 S&P 500 2,724.87 up 18.34
1) China releases data showing a further slowdown of their economy, with consumer spending retreating as people buy less. They reduced their forecast for their 2019 GDP.
2) The British parliament voted to reject the Brexit plan by 432 to 202. With just ten weeks before Britain exits the EU, concerns for the British economy are growing. Britain exits the EU on 29th of March, with the exit agreement having taken two and a half years to negociate. Prime Minister May’s future is in doubt with an upcoming no confidence vote likely soon.
3) It’s estimated there is a 0.1% drop in the economy for every week of government shutdown. Job expansion is threaten as workers are dropped off the payrolls.
4) 15 JAN 19 Stock market closings: Netflix pushed the markets up with their announcement they are raising their rates.
Dow 24,065.59 up 155.75 Nasdaq 7,023.83 up 117.92 S&P 500 2,610.30 up 27.69
Could a possible “trade war” be on the horizon, over Pres. Trump’s aluminum & steel tariffs? It could be the case says economic and international business negotiators.
Many economists have indicated that the tariffs imposed could be detrimental to the US economy, while others believe that the impact is minimal, because the tariffs Trump is planning to issue, will only cost American taxpayers a few cents more on the dollar, to support home grown/home based manufacturers, in the steel and aluminum industries.
Gary Cohen, White House director of the National Economic Council is against imposing a tariff on steel and aluminum, while Commerce Secretary Wilbur Ross and White House National Trade Council Director Peter Navarro, are for imposing the tariffs on steel and aluminum goods & products. –SB
The US banks revenue from 2015, beat the revenue of Euro banks by almost double in profit. European banks earned $26B last year, compared to their American counterparts, whom earned $43B the same year (2015).
In 2016 the revenue between the two powerful continents will expand wider; especially since Great Britain has made the decision to BREXIT the EU. Analysts believe this will leave a monstrous dent in the financial sector and the banking industry in Great Britain. With no power players in sight; many investment bankers are already inquiring high end employment agencies about referrals and transfer opportunities in the US, or other market driven countries.
I guess to them, the money does not seem to be in Europe right now; well at least not in Great Britain, with economic prices fluctuating rapidly and uncertainty brewing, where else can anyone turn??? Cheerio -SB