1) Several state attorney generals will investigate Facebook for possible stifling competition and putting users at risk. This comes after reports that Google will face antitrust investigations from state attorney generals. The investigations will center on actions that endangered consumer data, reduced the quality of consumers’ choices or increased the price of advertising. States investigating include New York, Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia.
2) President Trump unhappy at GM for decision to close four of its domestic auto plants. General Motors, which was once the giant automaker in Detroit, is now one of the smallest. GM has gone from 33 plants in the US to 29, but has an additional 27 manufacturing plants in China. Presently, GM sells more cars in China than it does in America. This accounts for $16 billion dollars in profit for GM.
3) The American consumer is carrying the U.S. economy in last quarter. The personal expenditures rose last quarter while business and residential investment, net exports and inventories have declined. There are concerns that consumers may rein in spending from fears of economic future. Global commerce is slowing, partly in response to the trade war, and without strong consumer spending it’s hard to see alternate sources of economic growth.
4) Stock market closings for – 6 SEP 19:
Dow 26,797.46 up 69.31 Nasdaq 8,103.07 down 13.75 S&P 500 2,978.71 up 2.71
1) Stock markets fell sharply over new trade war moves with the Dow dropping over 700 points and the S&P and Nasdaq also sharply dropping too. Troubles renewed with China devaluating its currency, opening at seven yuan to the U.S. dollar. In return President Trump accused China of manipulating its currency which suggests the Chinese have abandoned all hopes of resolving the trade war with America, and instead are moving in another direction for the future. Reports are that China has asked state owned companies to suspend U.S. agriculture imports. A weaker Chinese currency gives them an unfair export advantage, and so can be used as a potent weapon in the trade war.
2) Fears continue to increase over a near future recession, with bond yields giving the highest alert since 2007. The 10-year notes sank on Monday to 1.74% with fears of it sinking to a low of 1.5%. This is further pressure for the feds to further cut interest rates to starve off a recession. There are further concerns about the trade war with China that America will move to let the dollar weaken to counter China’s devaluation. Wall Street’s VIX volatility index, also know as their ‘fear gage’ rose to 21.48, its highest level since May 9, with Asian markets also plummeting.
3) Huawei, China’s manufacture of smart phones, might release a phone running the HongMeng OS by the end of the year. HongMeng OS is a competitor to Google’s Android OS, which would free Huawie paying licensing fees for other’s operating systems, allowing Huawei to undercut competition in the low end smart phone market. This is a response to President Trump’s executive order banning Google and Qualcomm from Huawei over security risks. The HongMeng OS is considered part of a long term strategy.
4) Stock market closings for – 5 AUG 19:
Dow 25,717.74 down 767.27 Nasdaq 7,726.04 down 278.03 S&P 500 2,844.74 down 87.31
1) The tech giants Apple, Google, Facebook and Amazon are facing antitrust troubles. The government is stepping up scrutiny of these big four with possible new rules, regulations and law suits. The investigative efforts will be split between the Justice Department and Federal Trade Commission driven by mounting criticism over political bias, disinformation and privacy breaches. This could spell years of troubles and law suits and possible breakup of the companies.
2) The threat of tariffs on Mexican imports has American oil refiners worried, since Mexico is the number two source of foreign oil to the United States. American produced oil is a light oil which is a poor match for Gulf Coast refining facilities, while the Mexican oil is a heavy oil that when blended with the America optimizes the refinery’s output.
3) The Medicaid system is still suffering from the Great recession, so there are fears than another recession could be devastating for the system. This is at a time when state spending on Medicaid is still high with no signs of subsiding. In a recession, payrolls decrease from people unemployed or underemployed, so contributions are down. This means less buildup of reserve funds needed for the future, and a second recession so soon, could seriously deplete those reserves quicker, leaving the future of the system in doubt.
4) Stock market closings for 4 June 2019: Jump in Dow comes from Fed signals flexibility on rates.
Dow 25,332.18 up 512.40 Nasdaq 7,527.12 up 194.10 S&P 500 2,803.27 up 58.82
1) Netflix has a problem that could have a very major impact on its financial future. There is a debate in the movie industry, if Netflix movies should qualify for Oscars awards, that Netflix movie productions are really just television and so don’t qualify for Oscars. If works could not qualify for Oscars, then big name producers will be less inclined to produce blockbuster movies for Netflix. Netflix has been making multi-billion dollar investments for their content trying to bring high quality productions to its subscribers.
2) Household net worth has fallen by the largest amount since the 2008 Great Recession. The net worth is the measure of total assets such as homes, bank accounts and stocks minus the debts. Net worth declined 3.5% last quarter, driven in part by the poor performance of stock markets.
3) Elizabeth Warren wants to break up ‘Big Tech Companies’, specifically Amazon, Google, Facebook and Apple. She says ‘Big is bad, small is beautiful’ and is calling for major changes to the anti-trust laws.
4) 8 FEB 19 Stock market closings:
Dow 25,450.24 down 22.99 Nasdaq 7,408.14 down 13.32 S&P 500 2,743.07 down 5.86
1) Boeing is testing a small self flying car, to compete in the budding autonomous air taxi market or electric Vertical Take Off and Landing (eVTOL) vehicles. Airbus and Google, plus several smaller companies are vying to pioneer the untapped market of electric flying machines carrying people.
2) Microsoft is expanding the number of different devices able to use their new software NewsGuard, software which can detect and root out fake news from the internet.
3) China has partially lifted its ban on Microsoft’s search engine Bing, allowing some access by its citizens. The ban is part of a very concerted effort by China to control their citizens criticism of the Chinese regime.
4) 24 JAN 19 Stock market closings:
Dow 24,553.24 down 22.38 Nasdaq 7,073.46 up 47.70 S&P 500 2,642.33 up 3.63
1) The new Congress may have profound future economic impact for America. New members of the Financial Services Committee includes members of the radical left of the democratic party, with very little experience in fiscal matters, but having a strong socialist agenda for reforms to the banking system. Fears for the impact are growing as these members expound on their desire to eliminate big banks in America.
2) Brexit is having an effect on British consumer spending. Reduce retail spending with retail sales falling 0.9% over concerns for consequence of Brexit uncertainty. Consumer spending had been strong during the summer of 2018.
3) Netflix is burning through its cash at a staggering rate to pay for their blockbuster original hits, having spent $3 billion dollars for productions in 2018. Their negative cash flow is expected to accelerate in 2019, but they are still adding new subscribers. All this to remain competitive with the other subscribers of Amazon, Hulu and Google with Apple, Disney and Warner Media also entering the market.
4) 18 JAN 19 Stock market closings: China announced spending spree of America products, bumping the markets upward.
Dow 24,706.35 up 336.25 Nasdaq 7,157.23 up 72.77 S&P 500 2,670.71 up 34.75
1) The question of ‘monopoly’ for the large tech companies is starting to come to light as a results of congressional questions about the power and influence of such companies as Amazon, Facebook and Google.
2) There are four major retailers on ‘death watch’ for 2019, and they are Barns & Noble, Kmart, JC Penny and Sears. This is particularly important concerning the viability of a consumer based economy.
3) There are talks circulating around Washington of easing the tariffs on China. However, there has been little progress in negotiations, in particular issues of intellectual property.
4) 17 JAN 19 Stock market closings:
Dow 24,370.10 up 162.94 Nasdaq 7,084.46 up 49.77 S&P 500 2,635.96 up 19.86
It looks as if Google will be investing in NYC for the long term. The search engine giant, is closing in on a lucrative $2.4 billion dollar real estate building, as an addition to its New York City portfolio.
Axios the online web publication reports that the deal seems to be “the priciest single handed real estate transaction on a building, in the history of New York City”. The building happens to be across the street from Google’s current campus facility, in the Chelsea neighborhood of Manhattan.
Google is not the only online mega company who has its sights on New York City, in early fall September 2017 specifically, Amazon indicated a long term economic contract with NYC, and NYS, to lease properties in the west end of Manhattan, and the borough of Staten Island, for the creation and hiring of 2,000 plus new Amazon employees. -SB
Google seems to beating Apple, as far as market share is concerned in the cellular mobile phone industry. Google Android in the 3rd quarter; controlled over 85% of the mobile phone market share world wide. Apple’s position decline significantly according to Strategy Analytics.
The 3rd quarter showed Apple Iphone faltering compared to the record reached by the Google Android. Google’s Android reached newer heights in the 3rd quarter; beating past quarters with capturing the market share of new Android buyers. -SB
It has been speculated that Google pays Apple to keep their search engine on their phones. The sum that they actually pay is presumed around $1 billion dollars. Both Apple and Google have declined to discuss on the rumor, but other sources in Silicon Valley have indicated Google pays a hefty fee, and has in the past several years to keep their search engine on the Iphone.
Business insiders believe both companies benefit having each other on their products, as the advertising revenue produces much advantages for both technology titans. Oracle who is in a nasty court battle with Apple, in court documents filed; indicated that both companies entered private partnerships with each other on ad sharing and keeping their brands on each of their products that are serviced. -SB