10 March 2020

1) Monday markets opened in a steep downward spiral from sell offs, driven by the coronavirus fears, followed by the sharp drop in oil prices. The Dow dropped 2,000 points, with a massive sell off of both the S&P 500 and Nasdaq, which triggered a key market circuit breaker that halted trading for fifteen minutes. There are widespread fears over the economic impact of low oil prices, with some experts fearing oil prices down to $20 a barrel. Gold prices crossed the $1,700 dollar an ounce, hitting the highest since December 2012. The banks are hard pressed as the interest continues to sink, cutting into their margins.

2) Experts speculate that the Feds will cut the interest rate to zero in the next few months in an effort to forestall a downturn of the economy. The entire U.S. yield curve fell below 1% for the first time in history on expectations that the Federal Reserve will cut rates to zero in the next few months. Some speculate the Feds may adopt a negative rate just as some European countries have, such as Germany’s -1%.

3) While checkout-free with cashless supermarkets is now a novelty, Amazon expects this technology to spread to other retailers. Amazon has announced it plans to license its automated checkout technology to other retailers, telling of several other companies that have already signed up for the technology. The technology has been proven with cashless convenience stores across America and with Amazon’s new Go-supermarkets. The technology represents another significant step in retail automation.

4) Stock market closings for – 9 MAR 20: The stock market is like a rectal thermometer- it’s rude and crude, but surprisingly effective in showing a sick economy.

Dow 23,851.02 down 2013.76
Nasdaq 7,950.68 down 624.94
S&P 500 2,746.56 down 225.81

10 Year Yield: down at 0.50%

Oil: down at $30.24

28 February 2020

1) Many on Wall Street are betting the Federal Reserve Bank will again reduce the cost of borrowing in light of the coronavirus economic threat. Futures contract traders consider there is nearly a 60% chance of a rate cut this March, when the Feds meet, in an effort to counter the effects of the virus on America’s economy. While it appears the spread of the pathogen is declining in China, elsewhere in the world it’s on the rise.

2) Oil prices continue its downward spiral with a twelve month low for U.S. crude. The drop in oil prices is in anticipation of slowing of the U.S. and world economies, a direct result of the spreading coronavirus threat. China, a major world importer of oil, has cut back purchases as it containment policies reduces oil consumption from limited travel to and from major cities, as well as travel within those cities.

3) The home food delivery business continues to grow with DoorDash filing the paperwork with the SEC (Security and Exchange Commission) to start the IPO (Initial Public Offering) process to offer stock to the public. The IPO process has met with poor results from unprofitable companies like Lyft Inc. and Uber Technologies Inc. while WeWork was forced to abandon its IPO last year because of a poor showing of its stock. DoorDash faces the same challenges as Lyft and Uber..

4) Stock market closings for – 27 FEB 20: This is the worst point decline ever for the three markets. The Dow has dropped 3,000 points since Monday.

Dow 25,766.64 down 1190.95
Nasdaq 8,566.48 down 414.30
S&P 500 2,978.76 down 137.63

10 Year Yield: down at 1.30%

Oil: down at $46.34

10 December 2019

1) Celadon, a truckload carrier and American trucking giant, is slated to declare bankruptcy as early as December the 11 th. This may possibly be the largest truckload bankruptcy in history. Already, fuel cards for truck drivers are getting turned off, leaving truckers stranded in the field unable to get home without using their own money. As many as 3,200 truck drivers may find themselves stranded in addition to being without jobs. In the first half of 2019, about 640 trucking companies went bankrupt, triple the number from last year as freight volumes decline for 11 straight months. Celadon’s stock has gone from $20 a share down to 41 cents.

2) The Federal Government’s liquidity problem hasn’t gone away yet, even with hundreds of billions of dollars in new liquidity created out of thin air. The Feds will not know if there is enough money to cover repos, the short term loaning of money from bank to bank to cover short term cash shortages. If there is insufficient liquidity, then there’s the danger of a ‘lock up’ of American’s financial system.

3) Yes Bank Ltd. is expected to reject an offer of $1.2 billion dollars, more than half its planned $2 billion dollar capital raising. Instead, the company is turning to institutional investors to make up the shortfall. The bank would prefer to have institutions rather than individual investors in their fund raising. Yes Bank needs new investors in order to replenish its capital, which is now down to regulatory minimum as a result of bad loans.

4) Stock market closings for – 9 DEC 19:

Dow           27,909.60    down     105.46
Nasdaq        8,621.83    down       34.70
S&P 500       3,135.96    down         9.95

10 Year Yield:    down   at    1.83%

Oil:    down   at    $58.87

19 September 2019

1) The Federal Reserved voted for a quarter percent drop in the interest rate, bringing the ire of President Trump in a tweet, complaining the Feds lack the guts and vision to cut more. But the board surprised everyone by its divided vote, three of the members voted against a policy decision, while seven voted for it. This is considered an indication of how uncertain things are and just what the economic future holds. In response, the stock markets fell over the news of just a quarter percent rate reduction.

2) Some fear that parallels in the market signal the coming of another recession. These parallels include an inverted yield curve with the stock markets making new highs in July, followed by a correction in August, then a rally in early September. Additionally, growth is slowing. These same signs occurred in 2007 prior to sliding into a sever recession. All that is needed is a trigger such as the world oil supply.

3) As a result of the UAW (United Auto Workers) strike, GM (General Motors) announced 1,300 layoffs in their Oshawa plant in Canada. This is because GM plants in the US are shut down and unable to deliver needed parts and assemblies to the Canadian plant. This shows that the strike is spreading to other units of the automakers business.

4) Stock market closings for – 18 SEP 19:

Dow             27,147.08         up    36.28
Nasdaq          8,177.39    down      8.62
S&P 500         3,006.73          up      1.03

10 Year Yield:    down   at    1.79%

Oil:    $58.25

18 September 2019

1) World oil prices dropped sharply with Saudi Arabian source saying that their oil production could be fully back on line within weeks. This is far sooner than was initially assumed by world markets. Production may be back up in as little as two to three weeks. The attacks resulted in the largest single supply disruption in half a century.

2) Economists say the GM (General Motors) strike no longer has the economic impact that they once did. They assert it will take a lengthy shutdown to make a national impact. This is a result of GM’s market share shrinking while its work force is now smaller, in part because of automation. A prolonged strike could impact the economy by disrupting the supply chain effecting other industries. GM has shifted workers health care cost to the UAW (United Auto Workers) union, increasing pressure on the union for a quick settlement.

3) There are expectations that the Federal Reserve will lower interest rates on Wednesday for the second time in two months with another likely cut later this year. The consensus is the feds will drop the interest rate by about a quarter percent in an attempt to starve off the world economic slowdown from reaching America. Job growth has slowed and the index of manufacturing activity shows contraction, increasing fears that a recession will happen in the near future.

4) Stock market closings for – 17 SEP 19:

Dow                 27,110.80    up    33.98
Nasdaq             8,186.02    up    32.47
S&P 500            3,005.70    up      7.74

10 Year Yield:    down   at    1.81%

Oil:    down   at    $58.81

21 March 2019

1) Fears of climate change is causing some retired seniors to pull up and move out of Florida, which for many years has drawn the ‘sixty plus year olds’ demographics for a life of peaceful retirement with its low cost of living, no income tax and nice warm weather. But the threat of hurricane damage from flooding and rising sea levels is also making the associated insurance cost soar, in turn causing retirees to reconsider and move more inland, the result some are claiming from global warming.

2) Losses from the flooding in Nebraska is estimated to be over one billion dollars with more flooding forecasted. But even worst is the anticipated impact on farmers. Last year, 19% of Nebraskan farms filed for bankruptcy, and many more are now anticipated to file as the consequence of the flooding pushes more farmers under.

3) The Feds have elected to not raise interest rates again this year, expecting an economic slowdown ahead. There isn’t any need to guard against inflation coupled with indicators of slower growth from household spending and business fixed investment. The GDP was 2.1% instead of the expected 2.3%.

4) 20 MAR 19 Stock market closings:

Dow                25,745.67    down     141.71
Nasdaq             7,728.97          up         5.02
S&P 500            2,824.23     down         8.34

10 Year Yield:    down   at    2.54%

Oil:     down   at     $59.99

31 January 2019

1) German technology giant SAP takes a drop in the markets because of a one time write off charge.

2) Chinese purchases of US commercial property is at the lowest since 2012. For the last four quarters, the Chinese have sold more than they bought as the Chinese government pushes to bring money back into China in an effort to stabilize its currency. With China’s economic problems springing from the slowing down in its growth, this trend is expected to continue in 2019.

3) The Feds signal an end to interest rate hikes, with economic growth remaining strong and expected to continue, while fears of inflation are diminishing. Their announcement spurred the stock markets up.

4) 30 JAN 19    Stock market closings:

Dow             25,014.86    up     434.90
Nasdaq          7,183.08    up     154.79
S&P 500         2,681.05    up        41.05

10 Year Yield:    down   at    2.70%

Oil:    down   at    $54.22

*NEW PODCAST, THE CAST EP. #1: 6IX9INE LEGAL WOES…..(WOAH)*

Episode #1 on THE CLOUD (Soundcloud that is). On the new podcast show, called THE CAST, hosts Sammy BE, Luisa L & Savannah Bee discuss, entertainment, music, fashion, and all topics in relation to society, lifestyles, and of course media.

The trio had a chance to speak briefly with the legal rep/lawyer (Art)for MTA Booking Agency, (former booking agency to Tekashi69). He briefly discussed MTA’s next course of action against the 6ix9ine controversy, and the next steps MTA will be taking in this regard.

He indicated to the group that we would get a full interview, on the controversy surrounding Tekashi69’s bookings of shows & concerts (and we would obtain MTA’s side of the story). So this a future interview you don’t want to miss out on.

Simply put, this is the beginning of something you don’t want to miss, on THE CAST Ep #1.

As always #BEBless #StayBless #GODBLESS #RealRecognizeDeal

Website Platforms To Check Out:

1) www.instagram.com/EcoFireTV (Sammy BE)
www.twitter.com/EcoFireTV

2) www.instagram.com/LuisaModels (Luisa L.)

3) www.instagram.com/ModelGirlModelWorld (Savannah Bee)

4) www.EconomicandFinanceReport.com (Economic & Finance Blog Site)

5) www.Soundcloud.com/Economic-FinanceReport (Podcast/Online Show)

6) www.youtube.com/channel/UCWZo5bug…Nlb2VRfDCQ/videos (Youtube)

7) www.SammyBuysHomes.com (Real Estate Investment)

8) www.TraderSoul.com (Financial Trading Website)

FIU LAW SCHOOL DEAN NAMED AS US LABOR SECRETARY NOMINEE………

By: Economic & Finance Report

R. Alexander Acosta Dean of Florida International University’s Law School, has been selected to be the new US Labor Secretary. Mr.  Acosta is also the Chairman of the Board at U.S. Century Bank, he was former assistant attorney general of the civil rights division, under former President George W. Bush, and former US attorney for the Southern District of Florida.

After President Trump initial nominee, Mr. Andrew Puzder withdrew on February 16, 2017, Mr. Acosta’s name was in contention. Mr. Acosta has been nominated and proceeded before the Senate in several different occasions, so many experts believe he will be confirmed as Trump’s new Labor Secretary. -SB