31 July 2020

1) The American economy last quarter is the worst on record, with a 32.9% annual rate contraction (April – June). American business ground to a halt from the pandemic lockdown this spring, leaving the country in its first recession in eleven years. This wipes out five years of economic gains in just months. From January to March, the GDP (Gross Domestic Product) declined by an annualized rate of 5%. While the unemployment is declining as states open up from the shutdown, there are still about 15 million unemployed workers. Americans are spending less money during th lockdown, partly because of lost of jobs. Consumer spending is the biggest driver of the economy, and it declined at an annual rate of 34.6% for the second quarter.

2) While Walmart has posted surging sales for each month, it is still taking cost savings measures. The retailer has laid off hundreds of workers including store planning, logistics, merchandising and real estate. Also, Walmart is reorganizing its 4,750 stores by consolidation of divisions and eliminating some regional manager roles. Walmart is performing well because of high demand and low prices during the pandemic. The company isn’t opening as many new stores in the U.S. anymore, so Walmart doesn’t need as many people to find new locations and so design them.

3) Job postings in technology are 36% down from 2019 levels. This is attributed to increased competition, low priority in hiring and uncertainty over the pandemic. Therefore, the tech industry is also feeling the economic effects of the coronavirus pandemic. Sending a very significant portion of its workers remote to work at home, there were predictions tech jobs would lead the recovery with increase job numbers. The ‘work at home’ was thought to show tech jobs might be available outside the traditional hubs. Neither has proved to be true. In short, the tech jobs are faring worst than the overall economy.

4) Stock market closings for – 30 JUL 20:

Dow 26,313.65 down 225.92
Nasdaq 10,587.81 up 44.87
S&P 500 3,246.22 down 12.22

10 Year Yield: down at 0.54%

Oil: down at $40.45

EFR Podcast Ep #21: THE LOGISTICS OF GUNS AMERICA………….

By: Economic & Finance Report

Latest podcast episode #21, hosts Bizman Bassey (Sammy BE), James Lymon, and Jon Don Sterling on the sound boards, speak on the current climate of gun violence in the US, while also delving into gun sales & revenue guns generate.

The trio discusses gun purchases across the USA; while speaking on the roles media, lobbyists, politicians play in the entire narrative.

This a must listen to, if I must say…. -SB

 

HYUNDAI WILL BE SELLING ITS LOGISTICS UNIT!!!!!!!!!

 

Hyundai motors

By: Economic & Finance Report

Hyundai  the global automaker will be selling off its logistical unit. The company is sellig a stake actually of about 13%, from their logical unit. The company is selling the unit because of a new law that was established in South Korea last year (2014), about controlling families and the company boards having conflict of interest in running day to day operations and regulating company governance.

The family and the company executive body, maybe using the sale as a maneuvering role by the Hyundai family to attain a larger controlling interest in their Hyundai Mobis franchise.

It is also speculated that the Hyundai family is building a 571 meter tower in South Korea which would then make it the tallest building structure in South Korea…

-SB