16 March 2021

1) The technology known as carbon capture and storage, a concept that has been around for at least a quarter century to reduce the climate damaging emissions from factories, is being pursued by major international oil companies. The idea sounds deceptively simple, just divert pollutants before they can escape into the air, and bury them deep in the ground where they are harmless. But the technology has proved to be hugely expensive, and so has not caught on as quickly as advocates hoped. Exxon Mobil, BP and Royal Dutch Shell plus lesser known Norway’s Equinor, France’s Total, and Italy’s Eni are investors in capture and storage projects.

2) Reports are, that amid all the trillion dollar spending, the White House is now starting to consider how to pay for the programs meant to bolster long term economic growth with investments in infrastructure, clean energy and education. The challenges are twofold: 1) how much of the bill is paid for with tax increases and 2) which policies to finance with more borrowing. The administration hasn’t decided whether to pursue a wealth tax. With interest rates so low, U.S. borrowing costs are manageable right now. The federal government currently collects the biggest chunk of its revenue, about half in 2019, from individual income taxes, which now tops out at 37% of income above $518,000 per year. For now, there are few signs of inflationary spiral or fiscal crisis that policy makers thought would accompany debt levels like today’s. The Congressional Budget Office this month projected that the national debt would double as a proportion of gross domestic product over the next 30 years. But the cost of borrowing is rising for the government and across the economy so the large debt could mean trouble in the future.

3) India’s foreign-exchange reserves has surpassed Russia’s to become the world’s fourth largest, as India central bank continues to hoard dollars to cushion the economy against any sudden outflows. Reserves for both countries have mostly flattened this year after months of rapid increase. India’s reserves, enough to cover roughly 18 months of imports, have been bolstered by a rare current-account surplus, raising inflows into the local stock market and foreign direct investment. India’s foreign currency holdings fell by $4.3 billion to $580.3 billion as of March 5, edging out Russia’s $580.1 billion pile. China has the largest reserves, followed by Japan and Switzerland on the International Monetary Fund table.

4) Stock market closings for – 15 MAR 21:

Dow 32,953.46 up by 174.82
Nasdaq 3,459.71 up by 139.84
S&P 500 3,968.94 up by 25.60

10 Year Yield: down at 1.61%

Oil: down at $65.29

2 March 2021

1) The electronics giant Best Buy, has laid off 5,000 full time staff in a move the electronic retailer says was caused by changing consumer patterns because of the coronavirus, and the result of online sales growth in the Amazon race. Driven by the pandemic, their online sales has grown by almost 90 percent in the fourth quarter compared with the previous year. With many Americans stuck at home, there has been a surge in demand for items ranging from computers, gaming consoles to kitchen appliances. But the retailer said that owing to a spike in online sales, which have more than doubled so far in 2021 compared with the same time last year, the retailer needs fewer full-time staff and so plans to add 2,000 part-time workers to their staff.

2) Newport News Shipbuilding, the largest industrial employer in Virginia, has announced the layoffs for 314 employees. In addition, they are moving about 120 managers to lower-level positions. These changes are necessary cost controls to help ensure the shipyard’s future and the afford ability of the ships it builds, while also reducing the number of management layers. The Newport News Shipbuilding company designs, builds and refuels nuclear-powered aircraft carriers and designs and builds nuclear-powered submarines, while employing roughly 26,000 workers.

3) The badly mauled U.S. shale industry is finding a resurgence in one of the most unlikely places . . . private operators that most investors have never heard of. For instance, the case of little known and closely held DoublePoint Energy. It is now running more rigs in the Permian Basin than the giant Chevron Corp. The family owned Mewbourne Oil Co. has about the same number of rigs as Exxon Mobil Corp does. Once minor players, private drillers hold half the horizontal rig count as of December. It’s the first time in the modern shale era that they have risen to the level of the supermajors. This is the result from the big guys starting to show restraint. They’ve dialed back drilling after the pandemic sent oil prices into collapse. Now that the market is on the rise again, the majors and publicly-traded counterparts are mostly sticking to the mantra of discipline, all but ending shale’s decade-long assault on OPEC for market share. But if private drillers keep expanding at their current pace, it could eventually mean that U.S. production ends up on the higher end of analyst forecasts. And that, of course, could weigh on prices. Oil’s dizzying collapse last year is still fresh in the minds of many, and shareholders are quick to punish the producers they think are getting too aggressive.

4) Stock market closings for – 1 MAR 21:

Dow 31,535.51 up by 603.14
Nasdaq 13,588.83 up by 396.48
S&P 500 3,901.82 up by 90.67

10 Year Yield: down at 1.45%

Oil: down at $60.34

26 October 20

1) The renewable energy industry is possibly getting a boost from New York’s East River, which is set to become the testing ground for a technology that generates electricity from the tides by using tiny turbines. Verdant Power, a New York based marine energy technology company, is installing three small underwater turbines in the river that will generate electricity from the actions of the tide. The test system will feed power to Consolidated Edison Inc.’s grid. For years there has been other attempts to draw power from marine energy, but its adoption has been stymied by high costs and mechanical issues. The turbines use 16 foot diameter rotors which are expected to have 35 kilowatts of capacity each, about four times more than a typical U.S. residential rooftop solar system. The key to success is reducing the cost, but at 10 cents a kilowatt-hour, it’s still more than twice the cost of wind and solar power.

2) The oil giant Exxon Mobil, is still reeling from the massive oil bust, and so is now having to lay off workers after all. When the rounds of layoffs in the oil industry started last May, Exxon had no plans to lay off employees. But economic realities have force a reversal of that position, because other measures to control operating cost have not been sufficient to weather the downturn. Exxon’s market value has dropped by 66 percent from $418 billion dollars and has recently been removed from the Dow Jones Industrial index, a group of 30 key stocks that serves as a benchmark indicator of the U.S. stock market. Fears that the oil and gas industry will never recover fully from the pandemic are dismissed, the company saying that developing countries around the world will continue to rely on affordable and abundant fossil fuels for decades to power their economies. It’s projected that oil and gas will make up about 50 percent of the global energy mix by 2040, down from around 60 percent today.

3) China shows increasing aggressiveness with threats of retaliation, if U.S. arms sale to Taiwan proceed, sales worth more than a billion dollars. Failure to do so would “compel the Chinese side to fight back resolutely,” a Chinese statement said. America is selling 135 precision land attack missiles, plus associated equipment and training to Taiwan to improve its defense capabilities. Taiwan isn’t the only pacific neighbor fearing China’s belligerent stance, for Japan is planning to build a missile defense system at sea despite facing mounting costs. Japan’s Aegis Ashore systems is meant to intercept missile strikes from westward. Japanese officials are considering several proposals, including putting Aegis on platforms resembling oil rigs, or on converted merchant ships or naval vessels because of safety issues for civilians. Japan has also launched its first high technology submarine, one of a coming fleet, to protect Japan from China’s aggressive threats.

4) Stock market closings for – 23 OCT 20:

Dow 28,335.57 down 28.09
Nasdaq 11,548.28 down 42.28
S&P 500 3,465.39 down 11.90

10 Year Yield: down at 0.84%

Oil: down at $39.78

3 August 2020

1) Another sign of how badly the pandemic has wrecked the world economy is the huge losses that Exxon Mobil and Chevron have reported for the second quarter. The losses were even worst than Wall Street expected. Both stocks were the biggest losers in the Dow. Exxon lost $1.1 billion dollars with Chevron losing $8.3billion dollars. Oil is a principle component in a modern economy, and therefore a strong indicator of how an economy is doing.

2) Another internet satellite system has been approved by the FCC (Federal Communications Commission). Amazon’s Project Kuiper is a network in the sky of 3,236 satellites which will provide broadband internet access with the restriction that it doesn’t interfere with previously authorized satellite ventures. Amazon plans to invest $10 billion dollars in the project to compete with SpaceX, OneWeb and Telesat systems. Service will begin once the first 578 satellites have been launched. It’s expected service will begin sometime before 2026.

3) High tech giant Google has announced they are formally extending work from home until the summer of 2021. The extension will affect about 200,000 employees to include contractors and full time workers, including operations off shore. Most of the other tech companies have set at home working until the end of this year, but Google’s announcement fuels speculation if other companies will follow suit and extend their at home work schedule. Google was one of the first companies to implement work at home policy in an effort to prevent the spread of the coronavirus.

4) Stock market closings for – 31 JUL 20:

Dow 26,428.32 +114.67 +0.44%
Nasdaq 10,745.28 +157.46 +1.49%
S&P 500 3,271.12 +24.90 +0.77%

10 Year Yield: 0.54% -0.00 —

Oil: down at $40.43

6 September 2019

1) The Exxon Mobil oil giant agreed to sell its Norwegian oil and gas assets for as much as $4 billion dollars. The U.S. firm is exiting from production in the country after more than a century doing business there. In 2017, Exxon produced 170,000 barrels of oil per day from its Norwegian operations. The shares in Exxon, the world’s biggest publicly traded oil company, rose 1.7% on the news.

2) The announcement that China and America would resume trade talks pushed the price of oil up from optimism of an improving world economy. Chinese trade negotiators will come to Washington in early October for talks. Gasoline and distillate supplies fell, as well as stockpiles in storage.

3) Alan Greenspan, former Federal Reserve Chairman, forecast that negative rates will soon spread to the U.S. Negative rates are now in Belgium, Germany, France and Japan with $16 trillion dollars in negative yielding debt instruments around the world. Ten year sovereign bonds are trading with a negative rate. The thirty year U.S. rate is trading at 1.95% reaching an all time low.

4) Stock market closings for – 5 SEP 19:

Dow                   26,728.15    up    372.68
Nasdaq                8,116.83    up    139.95
S&P 500               2,976.00    up       38.22

10 Year Yield:    up   at    1.56%

Oil:     down   at    $56.17

29 April 2019

1) America’s GDP (Gross Domestic Product) for the first quarter of 2019 grew to 3.2%, well above the predicted 2.5% by experts. The US growth makes the American economy the strongest in the world.

2) Exxon Mobil oil company’s profits for the first quarter fell 49% to $2.36 billion dollars. The company is spending more on oil production, while also having lower margins in their refinery business. Exxon is expanding its production in the Permian Basin of west Texas and New Mexico, causing a 42% spike in exploration and production spending.

3) The technology stocks $1 trillion dollar rally continues. The tech sector has outperformed every other industry, with monies pouring into the technology stocks.

4) 26 APR 19 Stock market closings: Again Nasdaq and S&P 500 set record highs.

Dow              26,543.33    up    81.25
Nasdaq           8,146.40    up    27.72
S&P 500          2,939.88    up    13.71

10 Year Yield:    down   at    2.50%

Oil:    down   at    $62.80