1) The peak oil production could come in 2028 due to pandemic, a result of the economic fallout from the COVID-19 pandemic, which suppresses oil demand to such a degree that it will accelerate society’s transition from the fossil fuel. Some analysts predict oil demand will peak at 102 million barrels per day in 2028, two years earlier than predicted before the virus struck. The slow recovery will permanently affect global oil demand levels, lockdowns will stunt economic recovery in the short-term and long-term, while the pandemic will leave a legacy of behavioral changes that will also affect oil use. Right now, global oil demand is averaging about 89.3 million barrels per day, a 10 percent decline from last year, which experts say won’t rebound to those levels until 2023. Despite possible economic fallout governments in Europe and Asia, they are not backing off their clean energy goals. Electric vehicle sales are expected to reach 14 percent of total global car sales by 2025, and reaching 80 percent by mid-century.
2) Norwegian Cruise Line gives up on 2020 with Royal Caribbean, Carnival, and Norwegian Cruise Line Holdings suspended all cruises through the end of November. Resuming cruises have each company installing labs for COVID-19 testing at sea, then put through costly cruising simulations, and then following a number of additional regulations. So getting back to business by next month isn’t feasible anymore, therefore Norwegian Cruise Line became the first of the three giant operators to officially cancel the remainder of its 2020 voyages. Normally, December sailings are lucrative as people seek to leave cold weather behind during the holiday season. The cruise lines may not be able to hold out that long. To survive, companies need protocols that allows them to return to sailing safely, even if there’s a less than ideal experience for customers as well as the companies’ bottom lines. Consumers are already starting to lose faith in this once aspirational mode of leisure travel.
3) This last week, more than 61,000 children in the U.S. were diagnosed with Covid-19, the highest number than any other week. The true number of children with Covid-19 is higher because the illness tends to be mild in kids and because they may not always be tested. A 13-year-old boy has died over the weekend from Covid-19 infection, less than two weeks after he last attended class.
4) Stock market closings for – 3 NOV 20:
Dow 27,480.03 up by 554.98 Nasdaq 11,160.57 up by 202.96 S&P 500 3,369.02 up by 58.78
1) Newest job report is out with America gaining 4.8 million jobs as people return from the shutdown to work again. This gives an unemployment rate of 11.1%, which is still in the recession category, but is coming down over time. These returning jobs were mostly in the restaurant, hotel and retail sectors. There remains the question of how many restaurant jobs will finally return, with significant numbers of privately own businesses failing financially because of the shutdown.
2) The cornerstone of Ford’s reorganization, its F series Ford pickups, has dropped 22% in sales. Most of these are the F-150 full size pickups, with a new version just recently released. Total Ford sales are down 33.3%, with Ford executives making it clear just how critical the F-150 is to the future of Ford. Before the pandemic crisis set in, Ford had implemented a major restructuring of its operations intent on remaining a strong profitable company, and had expected to pay for this plan in part with the strong sales of the F-150. The F series models have been a part of Ford’s product line since 1948.
3) It’s reported that the developing world loses billions of dollars in money from migrant workers. These migrant workers range from Polish farmhands in the fields of southern France, to Filipino workers on cruise ships in the Caribbean, almost all of them losing their jobs because of the pandemic shutdown. These workers routinely sent cash home, so the third world economy is suffering too. Migrant workers comprise tens of millions of Indians, Filipinos, Mexicans and others from the developing countries, who sent a record $554 billion dollars back home last year. This is more than three times the development aid from foreign governments. Family members depend on this cash to pay for food, fuel and medical care. This drop in money sent home is four times the fall in the 2008 Great Recession.
4) Stock market closings for – 3 JUL 20:
Dow 25,827.36 up 92.39 Nasdaq 10,207.63 up 53.00 S&P 500 3,130.01 up 14.15
1) Speculation abounds over what the next stimulus package will have, such as extended income support for the unemployed and underemployed. New temporary subsidies for low wage workers. Cheap loans for small and medium size businesses with additional support for state and local governments. Cost estimates for a second stimulus program range from one to two trillion dollars. But like the first stimulus package, no one is offering ideas how this money will be paid off, especially if economic expansion doesn’t materialize.
2) The worlds fastest super computer is now Japan’s Fugaku supercomputer developed by Riken and Fujitsu with backing from the Japanese government. It has a speed of roughly 415.53 petaflops, which is 2.8 times faster than the US Summit supercomputers at 148.6 petaflops. The Fugaku was under development for six years and will start full time operation by April 2021, although it has been pressed into service in the coronavirus crisis, running simulations on how droplets would spread in office spaces with partitions. Previously, the fastest supercomputers have belong to America and China.
3) The sales of existing homes has dropped in May, a result of the coronavirus impact on the economy. The sales of existing homes in May fell 9.7% compared with April, which makes for an annual decline of 26.6%. This is the largest decline since 1982 when interest rates were 18%. There remains a shortage of housing which is helping to uplift the market, and therefore the economy as soon as the crisis has subsided.
4) Stock market closings for – 22 JUN 20:
Dow 26,024.96 up 153.50 Nasdaq 10,056.48 up 110.35 S&P 500 3,117.86 up 20.12
1) The American unemployed continue to climb with an additional 4.4 million for last week. This brings the five week total of more than 26 million workers now unemployed in America, or about 16% of the labor force. Nearly one in six workers have lost their jobs in the last few weeks. But because of lags in the reporting system, these numbers don’t fully show the extent of the problem. With people needing money to pay rents, mortgage, buy food and pay utilities, state governments are facing increasing pressure to retract the ‘shelter at home’ orders and forced closing of businesses, despite dangers of virus flare-ups. Experts warn such moves could undo all the containment that’s been accomplished at the economic cost of the last five weeks. To make things worst, layoffs are expected to continue, that we have not reached the unemployed plateau yet. State, county and city workers may form the next wave of layoffs as tax revenues needed to pay salaries plunge from the pandemic.
2) The clothing retailer Gap, has warned that its existing cash reserves may not be enough to continue operations, something that mirrors the predicament of so many American businesses, especially small businesses. The company says it must take further actions to find liquidity over the next twelve months, including job cuts and new debt financing. The chain has stopped paying rent for its stores, thereby amassing an additional debt of $115 million dollars. Its stock has fallen nearly 60% this year.
3) The coronavirus pandemic is spawning another economic consequence- lawsuits! Carnival Corp. is facing suits from several passengers who claimed they weren’t warned of the high risk from virus onboard ships. Wells Fargo, Bank of America, JP Morgan Chase and US Bancorp are being sued by small businesses who missed out on coronavirus rescue loans. Even universities are threaten with lawsuits for reimbursements of tuition, fees and housing. Judging from past disasters, it’s expected that more lawsuits will emerge in waves, as people seek someone to blame for their misfortunes while opportunistic attorneys capitalize on the crisis.
4) Stock market closings for – 23 APR 20:
Dow 23,515.26 up 39.44 Nasdaq 8,494.75 down 0.63 S&P 500 2,797.80 down 1.51