5 September 2019

1) A federal judge has ruled that investors may sue five big banks for conspiring to rig prices on bonds worth hundreds of billions of dollars issued by Fannie Mae and Freddie Mac for a seven year period. This clears the way for investors to pursue antitrust claims against Bank of America, BNP Paribas SA, Deutsche Bank AG, Goldman Sachs Group and Morgan Stanley. The banks are accused of fixing prices at a specific level before bringing the bonds to the secondary market.

2) The U.S. trade deficit narrowed overall slightly in July, however the gap with China surged to a six-month high. The trade tensions have caused wild swings in the trade deficit as exporters and importers try to stay ahead of the tariff fight between America and China. The Atlanta Federal Reserve is forecasting the economy growing at a 1.7% pace in the third quarter.

3) Oil dependent nations are facing economic troubles because gas and oil production are unsustainable. As oil and gas supplies dwindle and demand decreases, their once lucrative revenues may be decreasing. Nations whose economies are principally oil production face a trouble future as their oils supplies decline in the next few decades, with nothing to replace those revenues. Those nations facing economic troubles are the UAE, Nigeria, Qatar, Libya, Angola, Kuwait, Venezuela, Iraq and Saudi Arabia.

4) Stock market closings for – 4 SEP 19:

Dow            26,355.47    up    237.45
Nasdaq        7,976.88    up    102.72
S&P 500       2,937.78    up    31.51

10 Year Yield:    down   at    1.46%

Oil:    down   at    $55.98

2 July 2019

1) At a time when auto sales are slowing or even sagging, pickup truck sales continue to rise even with hefty yearly price increases. The industry average for full size pickups is $45,260 in 2019. Chevrolet has announced an all new version of its Silverado that tops the $100,000 price. Profit margins for pickups are large compared with standard automobiles, about $10,000 per truck, with high end trucks bringing as much as $20,000.

2) Importers are dodging the tariffs on Chinese goods by entering the U.S. via third countries such as Vietnam. This practice is called transshipment where Chinese goods are minimally processed or altered in a third country then shipped to America as exports from that third country. The administration has spent this last year investigation strategies to best counter this ploy, which cost America billions of dollars in uncollected tariffs.

3) As global demand for oil weakens amid America’s shale oil boom, OPEC considers extending its production cuts for another nine months. The supply growth in oil is expected to exceed the demand growth for 2020 with OPEC members wanting to get ahead of the situation to avoid a drastic drop in world oil prices. Russia in particular is pushing for extension as it strives to raise its production capacity.

4) Stock market closings for- 1 JUL 19:

Dow                 26,717.43    up    117.47
Nasdaq              8,091.16    up      84.92
S&P 500             2,964.33    up      22.57

10 Year Yield:    up   at    2.03%

Oil:    up   at    $59.19