1) Despite the economic failure of the first supersonic airliner, the French-British Concorde, there are now attempts to revitalize the supersonic airline service. Boom Supersonic has unveiled its first demonstrator aircraft called the X-B1, which is scheduled to start flight testing next year. The demonstrator is planned as a commercial stepping stone to an actual commercial supersonic airliner to transverse the Atlantic ocean in about three and a half hours- about half the present flight time. Plans called for supersonic jets that are quieter and more fuel efficient than the Concorde. Some might consider a supersonic airliner to be an optimistic endeavor considering the concerns over the airline’s industry future over the next several years.
2) Like other restaurant chains in decline, Ruby Tuesday’s decline was several years in the making, accelerated by the pandemic. Amidst speculation by industry insiders, the renowned Ruby Tuesday has filed for bankruptcy. By April, Ruby Tuesday had closed about 30% of its 470 restaurants, and with the virus crisis, restaurants continued closing. It has closed 300 restaurants in the last three years, 186 this year alone, while amassing a $43 million dollar debt plus $19 million dollars owed to landlords and vendors. The company is filing for chapter 11 bankruptcy and will continue operating about 230 restaurants in its bid to survive. Ruby Tuesday’s decline in sales was due to a major shift in consumer attention from casual dine-in to fast food and fast casual options.
3) The troubled aircraft manufacture Boeing Aircraft cuts their forecast for airplane demand due to the pandemic. Over the next decade, Boeing now expects deliveries of 18,350 commercial aircraft, which is down from its previous forecast by 10.7%. The coronavirus crisis is expected to create minimal demand for new jets during the next few years. Boeing still expects to deliver 43,110 commercial aircraft over the next 20 years, a forecast down only slightly from its previous forecast of 44,040 and so will be able to make up for lost sales in the years after the next decade.
4) Stock market closings for – 7 OCT 20:
Dow 28,303.46 up 530.70 Nasdaq 11,364.60 up +210.00 S&P 500 3,419.45 up 58.50
1) With the government support ending the first of October, American and United airlines are cutting 32,000 jobs. The airlines received $50 billion dollars under the CARES Act to boost liquidity and support payroll in exchange for not laying off employees through the 30th of September. Their revenue down by more than 80% and a full recovery still years off, the industry needs to shrink, so American airlines furloughed 19,000 workers with United airlines to furlough 13,000 people. However, both airlines said they are ready to reverse their course if a new support bill is passed.
2) Red China has announce its program to go to the moon. Its new launch vehicle was unveiled on September 18th, which is designed to send a 27.6 ton spacecraft into trans-lunar injections. At liftoff, it will weight about 4.85 million pounds, which is about three times China’s present largest rocket, the ‘Long March 6′. Made up of three 16.4 foot diameter cores or stages, it is similar to America’s ‘Delta IV Heavy’ and ‘Falcon Heavy’. The new three stage rocket will be 285 feet long, but China has not announced a time frame to start testing.
3) Boeing Aircraft has built some 460 of their 737 MAX jets, whose delivery has been frozen since March of 2019. This is a $16 billion dollar inventory, that with the 737 MAX’s certification to fly approaching, needs to be sold for Boeing to stay viable. Many of these aircraft were built for clients that have since canceled their orders, or worst yet have gone out of business, and are now called ‘White Tails’ from a lack of an airline livery painting. Boeing is now looking for new customers to buy these aircraft, in particular Delta airline which is the only major U.S. carrier without any 737 MAX aircraft in their inventory. But Delta’s relations with Boeing has been poor in recent years, while they have also parked many of their jets because of the slowdown from the pandemic, so with Delta intent on not spending cash on aircraft, this makes for a hard sale.
4) Stock market closings for – 1 OCT 20:
Dow 27,816.90 up 35.20 Nasdaq 11,326.51 up 159.00 S&P 500 3,380.80 up 17.80
1) Boeing aircraft has released its second quarter delivery numbers and they are not good for the worlds second largest aircraft maker. For the second quarter, Boeing delivered a total of 20 commercial jets, which is down 78% from the 90 aircraft a year ago. This drop is primary from the effects of the coronavirus pandemic. This year, Boeing has delivered 70 commercial airplanes compared to 239 in the first half of 2019. The up side for Boeing is deliveries for military aircraft is up from last year. With the pandemic and the 737 MAX problems, Boeing’s stock is down 46% from last year.
2) There are four types of banking accounts to choose from. 1) Checking accounts- Easy access to your money, allowing you to deposit and withdraw money as often as you want. Great for keeping cash for every day use. 2) Savings accounts- For parking your money that you don’t want to spend right away, allows making interest on your money. Can have restrictions on number of times you can withdraw money. 3) Money market accounts- Combination of a checking and savings account. Higher interest rate but requires some minimum balance. 4) CDs- Certificates of Deposits where you invest your money for a certain period of time at a fixed interest rate with a minimum of risk.
3) With demands for $15 an hour wages for fast food workers coupled with political support from the Democrats to mandate that by law, the fast food restaurants immediately started looking for technologies to reduce their work force and consequently the cost impact of higher wages. A big step in automation is being made by White Castle, the maker of sliders or a brand of small size hamburgers. The robotic manufacture Miso robotics, who makes the robot Flippy, which cooks and prepares hamburgers automatically. The work of automating is governed on having a system that is comparable with present White Castle kitchens and Miso’s robot on a Rail seems to fit the bill.
4) Stock market closings for – 14 JUL 20:
Dow 26,642.59 up 556.79 Nasdaq 10,488.58 up 97.73 S&P 500 3,197.52 up 42.30
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) A second round of layoffs is starting, the first being workers at restaurants, malls and hotels, most of them lower skill levels, but now it’s higher skilled jobs threatened. Those higher skilled jobs had seemed secure, however the ‘work at home’ people are seeing layoffs and furloughs to add to the unemployed numbers. Jobs such as corporate lawyers, government workers and managers are seeing the pink slip with a threat of a prolonged labor downturn in 2007-09 recession. Economist anticipated that 14.4 million jobs will be lost in coming months, raising the unemployment rate to 13% for June. Already, 17 million Americans have been laid off, with estimates of 27.9 million jobs to be lost. The information businesses are being hit, with revenues not sufficient to pay electric bills for servers and computers to host web sites. Even large law firms catering to the corporate world are having significant layoffs. State and local governments employ 20 million people, but as tax revenues drop, they too are faced with reducing employees. Analysts consider it will take 5 1/2 years for the labor market to recover.
2) Boeing, the airline manufacture, is further suffering business setbacks with the cancellation of orders for 150 jets in March. This is a result of a near total halt in demand for air travel because of the coronavirus pandemic. There are now nearly 14,000 jets parked by airlines around the world. Boeing did report new orders for 31 aircraft in March. While Boeing still has a backlog of orders for about 5,000 jets, there are fears that delivery will be deferred which will further add to Boeing’s financial woes.
3) The IMF (International Monetary Fund) is predicting that the Great Lockdown recession will be the worst in almost a century, warning the world economy’s contraction and recovery will be worst than anticipated. The IMF estimates the global gross domestic product will shrink 3% this year, compared to a 3.3% growth in January. This will dwarf the 0.1% contraction in the 2009 financial crisis. These forecast dashing any hopes for a V-shaped economic rebound after the virus subsides, with a commutative loss of global GDP of this and next year, of about $9 trillion dollars. Economic damage is driven by how long the virus remains a major threat.
4) Stock market closings for – 14 APR 20:
Dow 23,949.76 up 558.99 Nasdaq 8,515.74 up 323.32 S&P 500 2,846.06 up 84.43
1) PG&E (Pacific Gas & Electric), the massive power supplier of California, has announced they are planning power outages for Northen and Central California which will effect an expected 800,000 customers in 31 counties to reduce the risk of wildfires in windy conditions. The Paradise fire and the 2017 Wind Country fires were ignited when wind blown power lines sparked. It is unknown what the economic impact will be from such a massive loss of electrical power that may last for days on end.
2) The prices for many popular drugs is rising far faster than inflation, more than twice the medical consumer price index since 2017. Prices may not be justified by clinical improvements to the drugs themselves. This is especially important for people with limited income, in particularly the elderly on fixed incomes who are the major consumer of drugs in America. This is at a time when President Trump is vowing to attack high drug prices in America.
3) American Airlines announced extensions of 737 MAX cancellations of flights through January 15, despite Boeing’s promises that the grounded jets would be flying again before year’s end. American said full year profit would be reduced by about $400 million dollars if the jet remained grounded through the second of November, and is likely to spill over into 2020.
4) Stock market closings for – 9 OCT 19:
Dow 26,346.01 up 181.97 Nasdaq 7,903.74 up 79.96 S&P 500 2,919.40 up 26.34
President Elect Trump has indicated that the price tag for the Presidential Air Force One fleet upgrades are a little too expensive to place on the American taxpayer. The President Elect tweeted that the contract Boeing has with the US govt for the upgrades of the Presidential Air Force One Jets, may be too pricey for the American taxpayer.
Mr. Trump tweeted that the contract would cost taxpayers somewhere of around $4 billion dollars, and possibly more. Boeing has indicated that those figures are incorrect, the cost should be around the $2 billion dollar price range and that it could possibly be lower,since they are still in the exploratory stages of the contract, in which they are trying to determine the full cost.
Experts have indicated Boeing has had the Presidential Air Force One air fleet contracts for the past 40 years, starting with President Reagan and that the Air Force One jets are due for upgrades every 30 years, which would mean upgrades are due around this current time going into 2017. -SB