1) There are mounting fears that a surge in Covid-19 this fall and winter could kill 2,900 people a day in America. This is reminiscent of the World War I Spanish Flu pandemic in the fall of 1918 which killed 195,000 Americans in just the month of October. With colder weather, more people gather indoors increasing the risk of coronavirus spread. There are also the risk of catching the flu and Covid-19 at the same time, with makes a person more vulnerable by overwhelming the immune system. Risk of infection spreading has increased with the opening of schools. The increase risk isn’t in just America, with infections spikes in Europe. Paris is closing its bars again trying to arrest the increasing spread of the virus. The city is also banning student parties and putting limitations on outdoor gatherings.
2) The huge movie theater chain Regal Cinemas has announced it is closing all of its locations in the U.S. and U.K. There are 536 stateside Regal Cinemas and 127 Regal and Picturehouse Cinemas in the U.K., all to close down. This is a result of two factors, the first is limited seating and hence reduced revenues in theaters. A further consequence of the pandemic is the limited cinematic offerings for customers because of film release delays. The theater chain will reopen when movie studios resume regular production. The majority of its 45,000 employees will either be furloughed or forced to take unpaid leave until then. AMC, the world’s largest movie theater chain has announced that it is generating almost no revenue and has lost as much as $2.4 billion dollars in the first quarter of 2020 alone.
3) Another result of the coronavirus is the shape increase in drug costs such as cocaine, heroin, marijuana and methamphetamine, which are up 20 to 50% of pre-virus prices. This is largely because of restriction on the U.S. – Mexico boarder, which now restricts non-essential travel across the boarder, where most of the illicit drugs is entering the country. The virus is effecting the drug prices by also interfering with the cultivation of coca and poppies in foreign lands.
4) Stock market closings for – 5 OCT 20:
Dow 28,148.64 up 465.83 Nasdaq 11,332.48 up 257.47 S&P 500 3,408.63 up 60.19
1) The aircraft manufacture Boeing is laying off almost 12,000 workers this week, a result of the coronavirus crisis impact on the aircraft company. Boeing, which is the largest exporter in the U.S., is trimming its workforce by about 10% which include international locations. It is anticipated the airline industry will take some years to recover with air travel dropping a whopping 95% because of the virus, and major airlines canceling the majority of their domestic flights while suspending nearly all international flights. The company suffered a major set back with its 737 MAX grounding that resulted in near record number of order cancellations for passenger jets with zero new orders in April. This has been Boeing’s worst year in decades.
2) The discount home goods retailer Tuesday Morning has filed for bankruptcy, a result of the prolong store closings from Covid-19. The lost revenues created an insurmountable financial hurdle in a company that was thriving before the pandemic. The chain is closing 230 of its nearly 700 US stores across America. The first phase of closures of 130 stores will begin this summer. This is in line with another home goods retailer, Pier 1, which filed for bankruptcy in February, another casualty of the virus.
3) More than one in every six young workers have stopped working because of the coronavirus pandemic world wide. There are fears that young workers (15 to 28 years old) could face the inability to get proper training or gain access to jobs long after the pandemic ends, maybe even deep into their careers. Of those still working, about 23% report reduction in the number of hours they work. For 178 million young workers around the world, more than 40% are in the food services and hospitality industries, which is the hardest hit sector from the virus. Three fourths of the young workers are in informal jobs or casual labor. In addition, many companies in the U.S. are cutting salaries of those who still have a job, trying to remain in business, which will reduce discretionary income that will further slow economic recovery.
4) Stock market closings for – 27 MAY 20:
Dow 25,548.27 up 553.16 Nasdaq 9,412.36 up 72.14 S&P 500 3,036.13 up 44.367
1) The local economies of oil country are being hit hard by the shale oil bust as royalties from oil pumped have shrank to near insignificance. While the oil bust has erased tens of thousands of jobs, while drying up local tax revenues, it has also greatly reduced the inflow of money to local economies from the royalties being paid out. There are about 12 million U.S. mineral owners collecting royalties for oil and gas extracted from their land. Royalties range from 12.5% to 25% of the value of gas and oil pumped, with the average oil land owner collecting about $500 dollars a month.
2) The coronavirus pandemic is causing more economic troubles with increased prices at supermarkets. The virus caused unprecedented demand, the shutdown of some food manufacturing facilities and the need for more labor to assemble orders for pickup and delivery are adding to costs of the grocery business. Since supermarket’s get all their money from the checkout lanes, this translates into higher grocery prices. Some say the grocery business will never be the same again. Furthermore, with demand driven so high by the pandemic, stores have no need to offer incentives and sales. This demand has been felt up the supply chain further increasing cost. One note, the pickup and delivery business of groceries has been catapulted ahead bringing automation to the grocery business closer.
3) The New York Stock Exchange has started a phased reopening of its trading floor, having been closed for two months because of the pandemic crisis. The NYSE has been limited to all electronic trading since March 23 in a measure to prevent the spread of the virus. But there will be fewer floor brokers, and they will wear face masks and do social distancing. Nevertheless, many brokers will continue to do their jobs remotely with electronics, and stay away from the trading floor. Another example of how American business has been changed by the need to keep people spaced apart, even isolated in order to halt the spread of the virus.
4) Stock market closings for – 26 MAY 20:
Dow 24,995.11 up 529.95 Nasdaq 9,340.22 up 15.63 S&P 500 2,991.77 up 36.32