3 December 2018

1) President Trump has signed USMCA, the new trade agreement with Mexico which will replace the NAFTA, the current agreement.

2) Microsoft has been awarded a $480 million dollar contract from the military to adapt their HoloLens for virtual reality training and combat.  This could mean sales of up to 100,000 units.

3) Microsoft surpassed Apple as the most valuable publicly traded company, closing with a total stock value of $851.2 billion compared to Apple’s value of $847.4 billion.  Apple’s stock dropped 20% last month.

4) 30 NOV 18    Stock market closings:    Ninety day truce of American-China trade war is expected to boost markets.

Dow                     25,538.46      up      199.62
Nasdaq                  7,330.54      up        57.45
S&P 500                 2,760.17      up        22.41

10 Year Yield:    down    at    3.01%

Oil:    down    at    $50.72

9 November 2018

1) Eighteen states will increase their minimum wage starting in 2019, but eight of these states will have smaller initial increases with automatic increases that adjust the minimum wage to keep pace with price growth.

2) Amazon’s ‘Alexa’ has been reprogram to speak Spanish, so is being released for sale in Mexico as Amazon expands into the Mexican market.

3) The Federal Reserve has held interest rates the same, but signaled that most likely it will be increased this next month.

4) Amazon plans to split it’s new headquarters (HQ2) between two cities, Long Island City in New York and Arlington, Virginia.

5) 8 NOV 18     Stock  market  closings:

Dow                        26,191.22           up        10.92
Nasdaq                     7,530.88      down        39.87
S&P 500                    2,806.83      down          7.06

10 Year Yield:      up    at    3.23%

Oil:                    down    at      $60.74

1) Lowe’s announced they are closing 51 stores in the US and Canada. American’s are doing less home remodeling because of the strong housing market, so building supply stores are doing less business.  Lowe’s is having trouble keeping up with Home Depot and so is also cutting back its inventory.

2) Uber’s strongest growth is in depressed Argentina.  The government has barred Uber drivers from accepting credit and debit cards, so now drivers can only take cash, leaving Uber unable to receive its share of revenues.

3) 5 NOV 18    Stock market closings:

Dow                  25,461.70           up      190.87
Nasdaq               7,328.85      down       28.14
S&P 500              2,738.31            up       15.25

10 Year Yield:    down   at    3.20%

Oil:      down   at    $62.91

5 September 2018

New article posted below titled “CHINA LOOKING TO REFORM AFTER GROWING TIT 4 TAT WITH U.S.”

1) Amazon became the second mega corporation to reach the $1 trillion dollar value, second after Apple which recently reached the one trillion mark.

2) World currencies that are virtually worthless, needing a laundry bag or wheelbarrow to carry enough money to buy a loaf of bread. The Venezuelan bolivar, South Sundanese pound, Nigerian naira, Zimbabwean dollar, Somaliland shilling, Iran rial, Uzbeks uzbekistani and Vietnamese d?ng are worth next to nothing.

3) 4 SEP 18 Stock market closings:

Dow             25,952.48     down      12.34
Nasdaq          8,091.25     down      18.29
S&P 500         2,896.72     down        4.80

10 Year Yield:    up   at   2.90%

Oil:    down   at   $69.48

1) The plummet of the Turkish lira has push down the currencies of Argentina, India, Indonesia, Mexico, Russia, South Africa, and Zambia while raising Italy’s borrowing costs to their highest level. Conditions for a crisis are ripe, so the financial weakness and poor policies in Turkey and other vulnerable nations make for dry tinder.

2) Today marks 3,453 days of a bull market setting a new record for American’s stock market. The U.S. blue-chip index has more than quadrupled, creeping within striking distance of its January all-time record and outpacing most rival major global indexes. Greatest advances have been concentrated in the U.S. technology companies.

3) Today, Venezuela tried to address it’s multitude of economic problems by dropping five zeros from it’s currency leaving citizens confused and perplexed in trying to do business. So far, about 2.3 million have fled Venezuela, which is one of the most wealthiest nations in South America. Venezuela’s economic problems are blamed on currency control, price controls and nationalization of industries.

4) 22 AUG 18   Stock  market  closings:

Dow                         25,733.60      down     88.69
Nasdaq                      7,889.10            up     29.92
S&P 500                     2,861.82       down       1.14

10 Year Yield:     down   at   2.82%

Oil:           up   at   $68.02


By: Economic & Finance Report

United States Energy Secretary Rick Perry applauded Mexico’s incoming administration for ending gasoline and diesel imports. The imports come directly from the United States and the effects will prove profitable for Mexico, long term. 

 Mr. Lopez Labrador, Mexico’s incoming President, has indicated he was would end foreign imports to Mexico within the next 3 years. Refiners in the U.S. have invested billions of capital in Mexico and it has been prosperous for both countries.

Energy trading between United States and Mexico has been advantageous between both countries. -SB


By: Economic & Finance Report

General Motors announced they were closing its operations in Venezuela. GM is closing shop in Venezuela because the Maduro government has seized their plant in Valencia.

As protests were on going in the country on April 19, 2017; protesters were clashing with the Maduro government over free and fair elections; and food scarcity within the country. Maduro’s government decided to take over the factory in Valencia. This seemed to be the last straw for the General Motors corporation.

The plant in Valencia, last produced a car in 2015 but the company has over 79 dealerships in Venezuela and close to four thousand employees.  Venezuela has taken over private companies property many times before, especially when protests have broken out in the country. -SB



By: Economic & Finance Report

Opec may soon be curbing oil prices, after releasing extensive amounts of oil for the past two years, without limitations. Opec is negotiating with Iran other  body members about placing a cap on production, and perhaps reducing production to what it was in the first quarter of 2016.

Saudi Arabia and Opec members have been pumping out almost 34 million barrels a day, this has led US output to increase 11% from previous. Opec is assumed to take some type of action before the end of the year, exactly what transitioning may take place; no description has been presented yet to the media.

There is some speculation that the Saudi led Opec will take on some reduction of the output, maybe before the end of the year. It makes no sense to have increased oil output, when the Saudi’s have already retained the market share, the so called “oil war crusade” with the western oil companies and distributors should be neutralized. -SB


Venezuela-Caribe islands

By: Economic & Finance Report

Venezuela’s Foreign Trade Minister has indicated that Venezuela would expands its outreach into the Caribbean islands. Jesus Farias (Foreign Trade Minister of Venezuela) indicated that the south American oil exporter was seeking to diversify its economy, and drive more economic and investment presence in the caribe isles.

Venezuela will focus in the dutch territory of Bonaire first and perhaps expand its outreach to other islands as far as economic investments. Mr. Farias stated that it was very important to have foreign trade and foreign investments in the Caribbean as a means for Venezuela to broaden its trading capacity regionally and internationally. -SB


infrastructure pic

By: Economic & Finance Report

Canada Pension Plan Investment Board along with Ontario Teachers Pension Plan have teamed up in investing capital in IDEAL, a Latin American infrastructure/building conglomerate.  The partnership combined exceeds 1.35 billion. It said to be one of the biggest projects in Mexico as far as infrastructure and road development. Billionaire investor Carlos Slim own a major stake in the company.

The partnership seems to be beneficial for both parties as IDEAL was seeking funding and the pension funds were seeking to invest their funds in projects that would have logistical impact in Latin America and in Canada. IDEAL trades on the Mexican stock market, and has offices all over Latin America as expands its business and structural model in Mexico and the rest of Latin America. -SB