12 February 2020

1) The demise of the big box and department stores in malls, has spawned a move to trendy local shops. These are standalone small format stores designed to experiment with new retail strategies and increased foot traffic. These stores tend to be positioned closer to neighborhoods away from the malls. The department stores and big box retailers grew rapidly and over saturated the market, while the small format stores have less investments and lower lease costs.

2) Boeing Aircraft company reported zero new orders for this January, while Airbus tallied 274 orders for commercial airplanes in the same month. The company did deliver 13 new airplanes in January, six were 787 Dreamliners, two 777s, two 767 and three 737NG. Boeing is anticipating re-certification of its 737MAX by the middle of 2020.

3) California is now estimated to have 150,000 homeless people, reaching record numbers, of which two-thirds are living on the streets. There are more than 100 homeless camps across Oakland, in which authorities are in the process of dismantling. The homeless scratch out a living doing odd jobs, focus groups or medial trials. The rising cost of housing is the prime force driving people to homelessness, the number increasing each day despite the soaring stock market and record low unemployment rate.

4) Stock market closings for – 11 FEB 20:

Dow 29,276.34 down 0.48
Nasdaq 9,638.94 up 10.55
S&P 500 3,357.75 up 5.66

10 Year Yield: up at 1.59%

Oil: up at $50.07

13 January 2020

1) Several name brand products have decided to withdraw from Amazon for direct sales, the latest being Ikea, who started selling through Amazon in 2018. Other brand names such as Nike, Birkenstock and PopSockets are withdrawing too, considering it isn’t worth the hassle. There are growing fears that more big brands will flee the site, although their products can still be purchased through third party sellers on Amazon.

2) A ransom ware attack on foreign currency exchange company Travelex on New Year’s Eve has disrupted cash deliveries from its network of vaults to world banks. Banks in U.K. such as Barclays PLC, Lloyds Banking Group PLC and Westpac Banking Corp. are unable to take orders from customers in branches relying on Travelex services. Travelex was attacked with a ransom ware software virus called Sodinokibi often called Revil that locks up data via encryption.

3) Half the work force doesn’t expect to retire at age 65, while 13% don’t expect to retire at all. The average worker needs to have three quarters of a million dollars saved for retirement in order to maintain their standard of living. People are just not able to accumulate such wealth with conventional 401K plans, requiring significant additional investments by individuals. This is particularly difficult for middle and lower class American workers who are struggling to meet their basic livelihood expenses.

4) Stock market closings for – 10 JAN 20:

Dow            28,823.77    down    133.13
Nasdaq         9,178.86    down      24.56
S&P 500        3,265.35   down          9.35

10 Year Yield:    down   at    1.82%

Oil:    down   at    $59.11

7 November 2019

1) The Oklahoma energy company Chesapeake Energy, who helped pioneer America’s shale natural gas revolution, is now warning that it may not survive the era of cheap gas it helped usher in. In a filing to the Securities and Exchange Commission, the company stated that if depressed prices persist, there is substantial doubt if it can survive. Fracking made it a natural gas powerhouse, at one time the number two natural gas producer, but now it is drowning in $10 billion dollar debt.

2) The U.S. productive has fallen for the first time since 2015. American productivity fell 0.3% in the third quarter, after two quarters of healthy gains, while productivity had increased 1.4% in the past year, about two-thirds of its long run average. Additionally, the low unemployment rate is driving up labor costs by forcing companies to pay more for workers, a trend that could eventually raise inflation. Labor cost rose at 3.6% in the third quarter, up 3.1% for the past year.

3) SoftBank Group Corp. reported an enormous loss from investments in the two money losing startups WeWork and Uber Technologies Inc. SoftBank reported a loss of $6.5 billion dollars after writedowns in WeWork and other investments, the first such loss in 14 years. The massive losses were incurred when WeWork’s IPO failed leaving the startup company cash starved so SoftBank had to extend a $9.5 billion dollar rescue package and take an 80% stake in the company.

4) Stock market closings for – 6 NOV 19:

Dow           27,492.56         up       0.07
Nasdaq        8,410.63    down    24.05
S&P 500       3,076.78          up      2.16

10 Year Yield:    down   at    1.81%

Oil:    down   at    $56.39

BED & BREAKFAST U SAY??? GOLDMAN SACHS (GS) IN NEGOTIATIONS TO BUY B&B HOTELS!!!!!!!!!!!!!!!!!

Image Credit: Bitcoin.com

By Economic & Finance Report

Financial investment power house Goldman Sach (GS); is in negotiations to aquire B&B Hotels and all its subsidiary chains. They will be acquiring the chain from PAI Partners (French hospitality investment firm).

The purchase will happen in the latter part of 2019. The deal is supposed to be worth around $2.2 billion (USD). B&B Hotels has over 486 hotels (in total). The company was founded in 1990 and operates in the hospitality market in countries such as Brazil, Morrocco, and many Euro countries.

GS merchant banking division will be pursuing the close of the transaction, which is supposedly going to happen later this year (2019). -SB

7 November 2018

1) Ford Motor Co. is making great inroads in the Indian auto market after investing $2 billion dollars in India, such as opening 100 new dealerships in the last 18 months.  This has resulted in profits for the first time in a decade.

2) Chinese stocks are sending warning signals about China’s economy with stocks closing lower.  In a trade war, China was counting on its powerful domestic-consumption engine to provide protection for investors in the nation’s stocks, but that’s not working out so well.  China’s domestic consumer suppliers are reporting lower earnings than expected.  China’s consumers just aren’t spending as they had been.

3) 6 NOV 18     Stock market closings:

Dow                    25,635.01    up    173.31
Nasdaq                 7,375.96    up      47.11
S&P 500                2,755.45    up      17.14

10 Year Yield:    up   at    3.21%

Oil:     down   at    $61.78

23 October 2018

1) President is considering a 10% tax cut for middle income earners.

2) The Chinese stock market surged up amidst favorable comments from lenders and regulators.

3) Netflix is planning to raise another $2 billion dollars using debt for funding new content.  This is the second time for Netflix to use debt to finance new content.  Netflix is investing heavily in new shows and content because of the streaming competition.

4) 22 OCT 18      Stock   market   closings:

Dow                        25,317.41        down      126.93
Nasdaq                     7,468.63              up        19.60
S&P 500                    2,755.88         down        11.90

10 Year Yield:     unchanged   at     3.20%

Oil:         $69.63     up    from    $69.37

21 September 2018

1) Britain has again declared they will exit the EU (European Union) even if negotiations are not completed at the end of March.  The EU council president is calling for a Brexit conference in mid November.

2) Amazon announced the opening of 3,000 of their ‘Go Stores’ across the country as Amazon expands out of internet commerce into the more traditional brick and mortar commerce.

3) The United States is now the top supplier of soy beans to the European Union, supplying 52% of EU needs.  Soy beans was one of the first imports China imposed retaliatory tariffs on.

4) 20 SEP 18         Stock market closings:   Record high closing today.  Economy looks very healthy.

Dow                  26,656.98          up        251.22
Nasdaq               8,028.23          up          78.19
S&P 500              2,930.75          up          22.80

10 Year Yield:    no   change   at   3.08%

Oil:     $70.21    down   from   $71.32

WEB EPISODE #3 “BIZ PARTNER LINK UP” from the series: STRICTLY BUSINESS,NOTHING PERSONAL

By: Economic & Finance Report

Webisode episode #3, Sammy BE meets with a potential business partner “Alexis” (Armentha “Hazel” Carrington), to discuss partnering on a business venture, as well as conjuring up investment ideas and business as usual; this is an episode you have to watch….Peep GAME… & remember “REAL RECOGNIZE DEALS” . -SB

Social Media Accounts:

IG: @EcoFireTV

Twitter: @EcoFireTV

Actress: Armentha “Hazel” Carrington (Alexis)

IG: @Haze_Keyss

Twitter: @HazelLovesYuh

 

BITCOIN & CRYPTOCURRENCY: The Profusion of Cryptocurrencies will Change the Monetary-Banking System Enhancing Economies For the Millennials!

Economic & Finance Report

By: James Lyman BSAE, BSEE, MSSM

I just got my January issue of Scientific American with a collection of articles about the future of money detailing how new technologies promises to profoundly change the monetary and banking systems and hence the economic system which millennials are already struggling for a place in.  This special report of four articles is very interesting giving a glimpse of how the world of the millennials and Z-generation is changing such as stopping the concentration of wealth, increased transparency while reducing risks, but increasing risks to our digital identities.  This issue is a good introduction to the ‘what and particulars’ of the new technologies of money, but leaves the reader with the question: How will the millennials fair in a new economy when they’re now struggling so much in the old one?

                       

First, just what is cryptocurrencies such as Bitcoin and Tradecoin?   Well, as the articles explains, cryptocurrencies are just as the name implies, money or currency that is data bits in computer systems instead of the traditional metal coins and paper bills we’ve come to think of money as.  This allows individuals and companies to buy and sell physical assets across the internet using cryptocurrencies instead of traditional money.  These cryptocurrencies are not like credit cards used to transfer money, which are in fact just another manifestation of tradition money issued by nations that we use every day.  Instead they are a money or currency created by individual private companies.  These use the technology of blockchaining to give a peer-to-peer digital payment system without any central authority.

 

Immediately there is the obvious problem of what gives this kind of  money any value? The money of a nation represents the cumulative value of a nation. The sum value of a nation’s factories, farms, mineral resources and infrastructure, coupled with the value of all the personal property such as houses and cars is what gives money its value.  The sum total of all the assets of a nation!  So the money from a rich nation is more valued, considered more stable, than one from a poor nation.  During World War II and several decades after, the American dollar was more valued than gold.  It was more sought after, more readily accepted than pure gold, because of the vast wealth that stood behind the dollar.  People across the world wanted American dollars above all else.

 

But cryptocurrencies is the creation of money out of thin air . . . there is no physical assets to back Bitcoin and Tradecoin.  (Tradecoin does used commodities to back their currency, but commodities are perishable, and so its value can be questionable.)  One only has to look briefly at history, at the Weimar Republic after World War I, when the defeated Germans decided to pay reparations to the Allies by simply printing more money.  Quickly inflation became ramped with a wheelbarrow of paper money needed to buy a loaf of bread.  The paper used to print the money on, cost more than what the money was worth.  And this opened the door for the National Socialist and Hitler to step in and gain total power.  Cryptocurrencies lack hard tangible wealth for their money to represent.

 

Creating money is a finicky endeavor.  Prior to the great depression of the thirties, the American dollar was on the gold standard, that is a dollar bill could be redeemed from the American government for a set amount of gold.  It had value because it was backed by gold which most people consider to have value.  The paper dollar bill was a light weight convenient way to carry gold around and exchange for goods and services.   But there was a fixed amount of gold that America had, which in turn fixed how much money the government could issue.  That put a limit on how big America’s economy could be, so to have room to grow further and get America out of the depression, President Roosevelt took America off the gold standard.  Some people say we should return to the gold standard to return stability to the dollar and America’s economy, but there simply isn’t near enough gold for all the money now needed for our economy to operate. 

 

Therefore, if you create too much money, then you risk inflation with its value falling away, while if you create too little, then you risk strangling the economy which can be just as bad.

 

That’s the real risk with cryptocurrencies, the creation of money out of thin air, without any consideration over the consequences of too much or too little money, coupled with no anchor to real material wealth.  This translates into Trust, one of the most important factors of any currency.  To use a currency, to accept it in exchange for some material item of value, both parties must have trust that the currency will be accepted and trust that the currency has value to warrant trading something of value for.

                                                           

As with any new technology, many have plans to revolutionize banks, economies and money.  Some think they can use cryptocurrencies to cut the banks and governments out of the financial world and thus make the world a better place, others that they can fix a flawed system.  For instances, Venezuela is trying to cure its hyper inflation by creating a cryptocurrency.  One thing is for sure, the future economies, which millennials will have to live in and with . . . are now being formed and remade.  But what’s in it for them?  Will the new cryptocurrencies mean more opportunities for them with a brighter future, or will there be more technology displacements of millennials?

 

These are a set of financial articles each millennial needs to read and ponder, since they are the ones who’s world will be changed one way or the other.

 

JEFF BEZOS WEALTHIEST PERSON ON EARTH EVER……

By: Economic & Finance Report

Jeff Bezos is the richest person in the world ever. He has amassed a net worth of $105 million dollars (as of Monday, January 8, 2018).

Mr. Bezos has accumulated alot of his wealth amassing a diversified portfolio, which includes majority ownership stakes in Amazon; a company he created, Whole Foods, & Washington Post, just to name a few. -SB