16 August 2019

1) Retail giant Walmart reported a strong second quarter and raised its earnings expectations for the year. This news eases concerns about consumer demand dropping because of the trade war with China. Shoppers spent more at stores and websites, indicating the consumer economy has not lost steam. Walmart posted a 20 quarter or five years of growth unmatched by any other retailer. The retailer gets 56% of its revenues from grocery sales, so it is less vulnerable to tariffs.

2) In July, American’s spent more at retail stores and restaurants, indicating the economic growth remains healthy, despite fears of a coming global economic slowdown and possible recession. Despite such fears, consumer confidence remains steady. Most economists are not forecasting a recession, because consumer spending and the job market remains strong.

3) Saudi Arabia is ramping up its oil exports to China, with crude shipments doubled over the last year, while its oil exports to America have dropped by nearly two thirds. This shift has occurred in part from oil embargo on Iran, which has caused Asian importers to shift away from Iran to other sources, aided by U.S. growing independence of any oil imports. The U.S. is becoming the worlds largest producer of oil.

4) Stock market closings for – 15 AUG 19:

Dow            25,579.39         up    99.97
Nasdaq         7,766.62    down      7.32
S&P 500        2,847.60          up      7.00

10 Year Yield:     down   at    1.53%

Oil:     up   at    $54.70

2 July 2019

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

10 Year Yield:    up   at    2.03%

Oil:    up   at    $59.19

7 February 2019

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

10 Year Yield:     unchanged    2.70%

Oil:     down   at    $54.00

LATEST TRADE WARS: US ISSUED $34 BILLION TARIFFS ON CHINESE GOODS….

*Image Source: Dreamtime*

By: Economic & Finance Report

In the first round, US issued tarriffs took place at midnight Friday, June 6, 2018. The tariffs was placed on $34 billion worth of chinese goods and products.

The Chinese government has indicated they will retaliate with tariffs on $34 billion dollars worth of USA goods and products.

Both nations seem to be raising the stakes on tariffs issued to one another, pursuing a showdown that may be detrimental to both countries imports and exports.

Neither side seems to be backing down, in the latest trade wars spat, between both countries. -SB

TRADE WAR ON HORIZON, TRUMP vs EVERYONE ELSE????

By: Economic & Finance Report

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

IMPORTED CHINESE PRODUCTS WIDENS THE US DEFICIT……….

china-us trade

By: Economic & Finance Report

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