1) The British business climate is expected to get worst after Brexit. A survey of chief finical officers finds that a full 80% consider Britain’s economy will slump after Brexit, especially if an unplanned exit occurs. The long term outlook for investment is poor, so with little investment, the economy will flatten.
2) Battle lines of banking are being drawn in China between virtual banks and conventional banks. A banking shakeup is in progress between hi-tech companies and traditional banks, who find it hard to quickly react to the challenges of virtual banks, much as with Amazon is to retailing or Urber is to transportation.
3) The auto maker Mercedes-Benz is being investigated for software cheating of emissions test. Germany has ordered recall of 238,000 cars using illegal software to defeat government testing for compliance of emissions standards.
4) 15 APR 19 Stock market closings:
Dow 26,384.77 down 27.53 Nasdaq 7,976.01 down 8.15 S&P 500 2,905.58 down 1.83
1) The IMF (International Monetary Fund) has reduced their forecasted for world economic growth from 3.5% to 3.3%, which is the third reduction since last October. It forecasted 2.3% growth for the US economy, as well as reduced growth forecast for Germany and Great Britain.
2) Walmart is rolling out thousands of robots for use in their retail stores across America. These robots will automatically scan shelves and clean floors. With a million employees, Walmart is seeking ways to keep labor cost down.
3) Bank of America is raising it’s minimum wage to $20 an hour over the next two years. Starting the first of May, the rate will increase to $17 per hour. The bank has 205,000 employees.
4) 9 APR 19 Stock market closings: Markets pulled down by industrial sector.
Dow 26,150.58 down 190.44 Nasdaq 7,909.28 down 44.61 S&P 500 2,878.20 down 17.57
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) Germany’s business outlook falters amid Brexit concerns of potential US tariffs, especially on their car exports in addition to uncertainty of the German people. Germany has the largest European economy.
2) The father of Reaganomics says it’s time to get out of the market. He cautions that the end of easy money policies, the huge deficit and a near record economic expansion are all signs of a pending market collapse.
3) Trade talks continue between China and US as tariff deadline nears causing worries of talks failing. But after meeting with his advisers and Chinese officials, President Trump has extended that deadline citing the talks are going so well. Negotiators have reached a compromise on key issues, such as China’s requirement that American companies give intellectual property and technology to do business in China, more purchases of agriculture and energy products such as liquid natural gas. But so far, there hasn’t been a signing of an official agreement.
4) 22 FEB 19 Stock market closing:
Dow 26,031.81 up 181.18 Nasdaq 7,527.54 up 67.84 S&P 500 2,792.67 up 17.79
1) This next week, the markets promises to be positive because the big high-tech companies will be releasing their accounting statements with anticipation of healthy profits.
2) Germany announces it will close down all its coal fired power plants by 2038, which presently generates about 40% of Germany’s electrical power.
3) Facebook announced its plan to integrate it’s Whatsapp, Instagram and Messenger services so they can argue that the three are the same service, thereby avoiding anti-trust allegations and possible actions aimed at breaking up monopolies.
4) 25 JAN 19 Stock market closings:
Dow 24,737.20 up 183.96 Nasdaq 7,164.86 up 91.40 S&P 500 2,664.76 up 22.43