1) China has announced they are ending caps to foreign financial ownership, allowing foreign firms to have full ownership of financial services companies. Starting in 2020, overseas institutions can apply for total control of onshore ventures. China has been opening its financial sector at an unprecedented pace to lure financial giants such as Goldman Sachs, JP Morgan Chase and Morgan Stanley into greater participation in China’s economy.
2) Investors are retracting the fastest since the collapse of Lehman Brothers. In the past six months, money market funds have attracted billions of dollars of inflows, the largest flight to safe assets since the second half of 2008, with investors raising their cash holdings despite falling interest rates. This is being driven by unresolved issues of the trade war, Brexit and the domestic political turmoil mixed with fears of a recession.
3) The U.S. and China have reached a partial agreement Friday which would broker a truce in the trade war. This will lay the groundwork for a broader deal later with Presidents Trump and Xi Jinping. News to the agreement cause the markets to shoot up over 300 points. Part of the agreement is for China to make agricultural concessions and the U.S. provide some tariff relief.
4) Stock market closings for – 11 OCT 19:
Dow 26,816.59 up 319.92
Nasdaq 8,057.04 up 106.26
S&P 500 2,970.27 up 32.14
Online stock brokers TD Ameritrade, E*Trade & Charles Schwab have officially cut their online broker commissions to zero. Charles Schwab was the first brokerage, Interactive Brokers followed suit in cutting their commission rates, then came along TD Ameritrade and E*Trade.
Many online brokers are cutting their commissions to nil (0 zero), because of the climate that brokerages such as Robin Hood has had on the industry, allowing free trades of equities to their clients.
Since then other brokers have also cut their commissions to incur more of fairer playing field for their investors, traders and account holders. Many have speculated this was bound to happen at some point. Well, it looks like it has finally arrived. -SB
1) The drone attacks on two Saudi oil refineries has caused a jump in world oil prices. The strikes wiped out half of Saudi Arabia’s output capacity leading to fears of de-stabilization of the world’s crude producing region and therefore to the world’s economy. Prices for oil leaped with the opening of markets on Monday, the biggest jump in prices ever. President Trump claims that Iran was behind the attacks and that a coalition should be formed to counter the threat of Iran. The strike was made using 10 drones with the disruption surpassing the Kuwaiti invasion by Saddam Hussein in 1990.
2) UAW (United Auto Workers) workers at GM (General Motors) have gone on strike which has shut down the automakers highly profitable U.S. operations. Lost production is expected to cost GM $40 to $50 million dollars a day. There are a number of issues which GM and union officials said must be resolved before a new contract can be signed. The UAW wants to block the closing of plants engaged in manufacturing of sedans, which the company and other manufactures are discontinuing as the market goes to SUVs and crossover automobiles.
3) Gold and silver prices have surged from the global turmoil of Saudi oil attacks. Gold and silver are the traditional safe haven for investors in times of uncertainty. This gives further impetus to lower the interest rates by a quarter point to counter a slide into a recession.
4) Stock market closings for – 16 SEP 19:
Dow 27,076.82 down 142.70 Nasdaq 8,153.54 down 23.17 S&P 500 2,997.96 down 9.43
1) Disney announced it has sold its stake in the YES Network to investors including Amazon for 347 million dollars. The YES Network airs the Yankees games as well as other local sports and specialty content, and was one of the assets the Department of Justice required Disney to sell. It’s unknown what Amazon’s role in this acquisition will be.
2) The traditional shipping companies UPS and FedEx are now being challenged by Amazon’s emerging shipping empire as exemplified by its recent breakup with FedEx. As its consumer business has expanded, Amazon has built a network of suburban warehouses package and sorting centers feeding a fleet of delivery vehicles. This is turning it from a customer delivery service to a rival. In expanding with new service centers, Amazon is gobbling up failed malls. This expansion is driven in part by its rapidly expanding Prime membership, now with 100 million subscriptions in the US, with Amazon now delivering over half of its own orders.
3) Jack Ma, the billionaire founder of Chinese e-commerce giant Alibaba, the equivalent of Amazon.com, predicts that by 2030 computers and artificial intelligence will not only shrink the number of jobs by as much as 40%, but also reduce the number of work hours available to the remaining workers. This is just one more prediction of near term technology displacement coming in the next ten to twenty-five years that have recently been made public.
4) Stock market closings for – 30 AUG 19:
Dow 26,403.28 up 41.03 Nasdaq 7,962.88 down 10.51 S&P 500 2,926.46 up 1.88
1) Fears are growing that the world is moving towards an economic crisis, based on signs from Washington and Wall Street, starting with President Trump’s retreat from adding new tariffs. The stock market rose over the news meaning Christmas had been saved for this year’s sales. But the bond market wasn’t as optimistic, the rates dropping indicating a lack of confidence in the future economy. Called an inverted yield curve, it signals investors expect a weak growth and lower inflation over the years.
2) The troubling signals from the bond market caused the stock markets to drop, with the Dow dropping 800 points to erase all of Tuesdays gains. Worried about the state of the economy, investors are rushing to long term safe haven assets, pushing the yield on 30 year Treasury bonds to a new record low. The Cboe Volatility Index jumped to a high of 22.
3) The financial problems plaguing Boeing aircraft from the 737 MAX grounding may delay or even cancel Boeing’s next airliner design, the 797. A mid-size airplane, the aviation industry expected Boeing would go ahead with a new design, but the sever loses from the 737 MAX are now casting doubt on that happening, especially if the world economy does deteriorate. The 797 is expected to be a long range jet seating about 250 passengers. The design would make extensive use of light weight composites giving good fuel economy and range. Additionally, engineering resources are being pulled away from the 797 to work the 737 MAX problem.
4) Stock market closings for – 14 AUG 19:
Dow 25,479.42 down 800.49 Nasdaq 7,773.94 down 242.42 S&P 500 2,840.60 down 85.72
1) Boeing aircraft has not received any new orders for their 737 MAX in six months. This could give Boeing’s competitor Airbus a major market advantage having made 389 commercial plane deliveries in the same six months, making Airbus the largest supplier of this market segment with its A320 design. The grounding of the 737 MAX has forced Boeing to park completed aircraft to await its air worthiness to be restored.
2) Signs of inflation are increasing as U.S. consumer prices increased broadly in July. Expectations are for the Federal Reserve to again cut interest rates next month as much as half a percentage point in September. Continue trade tensions between China and America out weight fears of inflation so interest rates will continue to remain low, if not go lower.
3) Fears grow that protests in Hong Kong, which have persisted for the last two months, could have a lasting detrimental effect on U.S. and global markets. Hong Kong operates with a high degree of autonomy from China, having its own currency and judiciary system. This is fueling the rising concerns of investors of a major violent eruption of conflict between Hong Kong and main line China, coupled with concerns over U.S. – China trade war and the total impact on the world markets. With Hong Kong a financial hub, an invasion by Chinese troops with sever repressive measures on the people could disrupt other markets across the world. Furthermore, violence with loss of life could make it impossible for President Trump to resolve differences with China.
4) Stock market closings for – 13 AUG 19:
Dow 26,279.91 up 382.20 Nasdaq 8,016.36 up 152.95 S&P 500 2,926.32 up 43.23
1) Cattle producers are now using DNA testing to develop higher prime herds that produce a higher quality of beef. DNA testing allows predicting which bulls and cows have the characteristics that will improve herds to produce higher quality meat products. Where once there was only the ‘practiced eye’ of the stockman to judge which cattle would produce the product with breeding, the DNA techniques has vastly accelerated the process, with the expectation that the vast majority of U.S. herds will become high quality beef in just a few years.
2) The nation wide bus coach service Greyhound is up for sale. The holding company FirstGroup is facing demands for strategic changes by investors for a return on their investment. Greyhound is the only remaining nation wide intercity bus carrier, which carries about seventeen million passengers a year.
3) An executive order being issued by President Trump will require greater price transparency in the health-care industry, is encountering stiff industry opposition. One point of contention is a provision to slow the consolidation of medical facilities thereby maintaining competition resulting in lower cost. Health insurers and hospitals don’t want to publicly share the rates they have agree to amongst themselves.
4) 30 MAY 19 Stock market closings:
Dow 25,169.88 up 43.47 Nasdaq 7,567.72 up 20.41 S&P 500 2,788.86 up 5.84
1) Boeing has not received any new orders for its 737 since its grounding, in addition, Boeing has had 100 cancellations of orders. Its stock is down 19%, but worst its stockholders have filed a law suit against Boeing claiming the company has defrauded its investors because Boeing failed to disclosed safety issues concerning their 737 MAX-8.
2) British Prime Minister May has asked the EU (European Union) for a second extension. Britain will be leaving the EU this Friday if an extension is not granted, so the EU held an emergency summit to consider warnings that a crash-out might cause a recession. Last reports are that the EU will grant an extension to 31 October this year.
3) The ECB (European Central Bank) will leave interest rates steady, forecasting no change for 2019. The ECB is being forced to backtrack on its tightening monetary policy as signs of a world economic slowdown are increasing.
4) 10 APR 19 Stock market closing:
Dow 26,157.16 up 6.58 Nasdaq 7,964.24 up 54.97 S&P 500 2,888.21 up 10.01
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
It seems that Nigeria has been on a roll this year, as far as stock indexes are concerned. Nigerian stocks returned 12% to investors in 2017. The largest percent ratio in global stock indices for 2017.
Nigeria recently got out of an economic recession, a recession that has not occurred in the country in the last twenty five years, so for stocks to be hitting record highs while also climbing out of a recession is a plausible feat.
2018 has begun, so will Nigeria markets continue to flourish? This may be the beginning. -SB