1) At a time when auto sales are slowing or even sagging, pickup truck sales continue to rise even with hefty yearly price increases. The industry average for full size pickups is $45,260 in 2019. Chevrolet has announced an all new version of its Silverado that tops the $100,000 price. Profit margins for pickups are large compared with standard automobiles, about $10,000 per truck, with high end trucks bringing as much as $20,000.
2) Importers are dodging the tariffs on Chinese goods by entering the U.S. via third countries such as Vietnam. This practice is called transshipment where Chinese goods are minimally processed or altered in a third country then shipped to America as exports from that third country. The administration has spent this last year investigation strategies to best counter this ploy, which cost America billions of dollars in uncollected tariffs.
3) As global demand for oil weakens amid America’s shale oil boom, OPEC considers extending its production cuts for another nine months. The supply growth in oil is expected to exceed the demand growth for 2020 with OPEC members wanting to get ahead of the situation to avoid a drastic drop in world oil prices. Russia in particular is pushing for extension as it strives to raise its production capacity.
4) Stock market closings for- 1 JUL 19:
Dow 26,717.43 up 117.47 Nasdaq 8,091.16 up 84.92 S&P 500 2,964.33 up 22.57
1) American trade deficient continues to fall, now down to $49.3 billion dollars. This is a decline of 11.5% from last October’s $55.7 billion dollars. American exports fell, but imports fell even fast to give a net decline of the trade deficient.
2) Daimler has experienced a financial downturn while Toyota’s improved. Daimler’s fourth quarter net profit fell 49% even though revenue is up 7%. Sales are down for their luxury automobiles because of trade wars and bottle necks such as environmental certifications.
3) Boeing Aircraft is being sued for a wildfire that devastated Malibu California. The suit alleges that Boeing was negligent in the management of vegetation which allow the fire to spread. The fire resulted in three deaths, burned 100,000 acres while destroying 1,500 structures.
4) 6 FEB 19 Stock market closings:
Dow 25,390.30 down 21.22 Nasdaq 7,375.28 down 26.80 S&P 500 2,731.61 down 6.09
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
US trade deficit widened as imported products from China helped to increase the deficit further along. The deficit widened about $ 4 billion dollars (US) from the previous months of May and June 2016. In May 2016 the deficit rose to over $41 billion dollars compared to $37.5 billion in April 2016.
Insiders are calling it one of the biggest, if not the biggest trade imbalances since the beginning of 2016. Computers and cellphones imported from China were the main products that added an increase to the trade deficit.
2016 exports have not faring well because of the strength of the dollar against other currencies. The dollar has become more intuitive as of late and the steam does not seem to be slowing down, analyst predict the dollar to remain strong for the remainder of the year. –SB