23 June 2020

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

10 Year Yield: up at 0.70%

Oil: up at $41.13

19 August 2019

1) Home construction in America fell in July by 4.0%, in particular apartments. While a solid job market coupled with falling mortgage rates have boosted the desire to purchase new homes, the inventory shortage and rising prices have stifled sales. However, building permits issued have risen 8.4% with apartment complexes accounting for most of the increase.

2) Japan surpasses China as the largest foreign holder of American Treasury notes. Japan now holds $1.12 trillion dollars of Treasurys while China has $1.11 trillion dollars worth. Since the start of the trade war, China has bought less of the U.S. sovereign debt, with speculation that one tactic China could take in the trade war is to unload its holdings of U.S. debt. So far, there are no indications of China doing that.

3) The threat of fresh water shortages across the world is becoming more pronounced, with western America experiencing growing problems. The Colorado River, is a 1,450 mile source of water for seven states, who’s flow decreased 19% from 2000 to 2014. The river’s water is drawn off to supple cities and agriculture so almost nothing reaches the Pacific ocean. The bulk of the water is used by farmers producing a significant amount of America’s food, with almost 90% of the winter’s vegetables come from the river’s irrigation.

4) Stock market closings for – 16 AUG 19:

Dow             25,886.01    up    306.62
Nasdaq          7,895.99    up    129.38
S&P 500         2,888.68    up      41.08

10 Year Yield:    up   at    1.54%

Oil:    up   at    $54.94

29 July 2019

1) Newly released reports says that raising the minimum wage to $15 per hour by 2025 will raise the wages for 22.2% of American workers. They claim that 33.5 million workers would experience a $92.5 billion dollar increase in pay or $2,800 per worker. Currently, the minimum wage is $7.25 per hour, but it’s not expected such legislation to increase the federal minimum wage can pass through congress and not be vetoed.

2) China is looking for new markets to sell to. Presently, it has too many factories making too many goods because the trade war has diminished sales to its biggest customer America. China is seeking to create free-trade zones across the Asia-Pacific region in the hopes of opening new markets. Additionally, China is talking with Japan and South Korea to lower trade barriers. The problem is no country can absorb the volume of goods that China sells to America.

3) High tech companies are taking business to Canada and her supple of technology skilled immigrants. Canada has more relaxed controls over entry for workers having the education and skills sought by high tech companies, and therefore provides a base for such companies to expand into. Canada processes work visas for such workers in weeks, while the U.S. is noted for its long delays to grant the needed visas.

4) Stock market closings for – 26 JUL 19:

Dow             27,192.45    up    51.47
Nasdaq          8,330.21    up    91.67
S&P 500         3,025.86    up    22.19

10 Year Yield:    up   at    2.08%

Oil:    down   at    $56.16

26 July 2019

1) Tesla, the manufacture of all-electric automobiles, has suffered a worse than expected loss. Additionally, there has been another major management shakeup, all of which is casting doubts on the future of the unique automaker. While Tesla delivered a record number of cars in its second quarter, its stock dropped 14% with a loss of $1.12 per share. Nevertheless, Tesla has opened twenty-five new stores and service centers.

2) Concerns grow that the trade tensions may be pushing U.S. economic growth downwards. Fears that the gross domestic product figures due out this Friday will show business investment has weakened. Additional factors stem from slow global growth and falling oil prices. The gains in jobs and wages are preventing growth from sinking. It’s anticipated that the Federal Reserve will lower interest rates by a quarter point to check softening of the economy.

3) Nissan, the world automobile manufacture, has announced the layoff of 12,500 employees worldwide, or about 10% of its work force. Nissan is striving to rein in the costs increases incurred during the former CEO Carlos Ghosn tenure and alleged financial misconduct. Japan’s number two automaker has suffered a collapse in its quarterly profits, a result of sluggish sales and rising cost. This is another indication of the world’s depressed auto market with other renowned automakers like Ford suffering similar major financial problems.

4) Stock market closings for – 25 JUL 19:

Dow             27,140.98    down    128.99
Nasdaq          8,238.54    down      82.96
S&P 500         3,003.67    down      15.89

10 Year Yield:    up   at    2.07%

Oil:    down   at    $55.91

19 June 2019

1) The pizza giant Domino’s will test pizza delivery using fully autonomous vehicles in Houston. Domino’s has been exploring this technology for the last two years with robot cars that had standby drivers for safety, but these robots will be human free. The Silicon Valley startup Nuro, who has been working with the grocery chain Kroger testing home delivery service, will provide the automobiles. Customers will be able to make orders via their smart phones, track progress of the cars, then use their smart phone to unlock the robot car to obtain their pizza.

2) Boeing Aircraft Co., the manufacture of the grounded 737 MAX, announce they have not received one single order for new airliners at the Paris air show. Their rival Airbus recorded orders and options for 123 new planes. Overall orders for this year’s Paris air show is expected to be the lowest since 2016, with emphasis on defense spending.

3) President Trump announced he will meet with China’s Xi Jinping at the G-20 summit, raising hopes of resumption of Chinese-American trade talks and a deal which will resolve the current trade war. The President says he will have extended meetings next week at the G-20 conference in Japan. News of the meeting coupled with expectations of near future cuts in the interest rates boost confidence in the markets.

4) Stock market closings for- 18 JUN 19 Stocks rally on news of US-China trade talks.

Dow                    26,465.54    up    353.01
Nasdaq                 7,953.88    up    108.86
S&P 500                2,917.75    up      28.08

10 Year Yield:     down   at    2.06%

Oil:    up   at    $53.97

22 April 19

1) New Jeep Wranglers are being offered for as much as $9,500 dollars off list price. There is an over supply of leftover JL Wranglers, which makes for some really good deals for auto buyers wanting a traditional style SUV.

2) Panama disease is a highly contagious infection which is ravaging banana plantations across the world from Asia to Australia. The Philippines has suffered $400 million dollars in losses, where the world banana cultivation is a $44 billion dollar industry involving the livelihood of 400 million people.

3) Japan’s Mitsubishi Aircraft it about to build Japan’s first airliner in fifty years, to compete with Boeing and Airbus. The small 88 passenger airliner is for the regional air carrier business. Other small aircraft manufactures are also getting into the small carrier airline business betting they can build smaller, simpler and cheaper airliners than Boeing or Airbus.

4) 19 APR 19 Stock market closed for Easter:

20 February 2019

1) PMI readings released for America, Japan and the Eurozone indicate a slowing down. This is a result of international tensions, with America having a one in four chance of a slowdown.

2) Honda announced it is pulling out of England, with a loss of 3,500 jobs. Honda claimed their decision wasn’t a result of Brexit, but Britain is considered to be a business friendly country and therefore a portal into the European Union, but with Brexit that will now be going away. Presently, about half the cars in Britain are Japanese models, and Honda’s withdrawal is raising fears that the other Japanese automakers will decide to also withdraw.

3) Fears deepen that the sharp rise of the yen may hurt Japan’s economy. Japan is plagued by low growth, tepid consumer purchases, fast falling of exports and an aging population, all which contribute to Japan’s economic woes.

4) 19 FEB 19     Stock market closings:

Dow                 25,891.32     up      8.07
Nasdaq             7,486.77     up    14.36
S&P 500            2,779.76     up      4.16

10 Year Yield:      down    at     2.65%

Oil:       unchanged   at    $56.09

19 December 2018

1) Japan has embarked on a massive military buildup to counter the growing threat of China.   They are purchasing F35’s for use on their new aircraft carrier, their first since World War II.  Japan will be buying weapons from the United States, with an initial outlay of $10 billion dollars.

2) Sears, who is in bankruptcy and is closing many stores with large numbers of layoffs, plans to give out $25 million dollars in bonuses to their top executives.

3) The stock markets have had their worst December since the Great Depression.

4) 18 DEC 18              Stock market closings:

 Dow          23,675.64         up         82.66
Nasdaq        6,783.91         up         30.18
S&P 500       2,546.16         up            0.22

10 Year Yield:       down   at      2.82%

Oil:     up    at     $46.30