1) The dreaded coronavirus seems to be on the rise again in Europe, with some European countries experiencing an increase of new cases, but this time with fewer deaths. This resurgence of recent weeks, has not forced as many people into medical wards as last spring. However, the increase of Convid-19 is widespread, unsettling people who hoped the worst was behind them. So far, the rise in cases is in France, Germany and Spain, with Spain hit particularly hard. Europe had just started their schools for the new academic year.
2) The E-commerce giant Amazon has just opened its first ‘shop-in-person’ grocery store under its own name. The new store in the Los Angeles suburb of Woodland Hills, is a traditional physical store open from 7 a.m. to 10 p.m. PST. But the store has lots of high-tech touches such as a new feature called Dash Cart which allows you to use Alexa. This allows the customer to create a shopping list in advance then be guided around the store to those items on the list. The store uses cashierless checkout, so there isn’t any line to wait in. The customer has the option of using their Amazon account and Prime membership to order and get free delivery. Amazon is soon opening additional stores in other cities.
3) One of the most powerful storms to ever hit the US Gulf Coast, Hurricane Laura has left the usual damage and destruction, but having missed the Houston and New Orleans areas, caused far less damage than it could have. The death toll was six people and monetary damages are estimated to be between $8 billion and $12 billion dollars, most of the loss in Louisiana with only about $500 million dollars in Texas. The total economic cost from damaged structures and closed businesses is estimated to be about $20 billion dollars.
4) Stock market closings for – 28 AUG 20:
Dow 28,653.87 up 161.60 Nasdaq 11,695.63 up 70.30 S&P 500 3,508.01 up 23.46
1) Large hurricanes bring economic damage on a large scale when they make landfall. This season’s biggie is Hurricane Laura now expected to make landfall as a category 4 storm this Wednesday evening or early Thursday morning. The National Hurricane Center rates the storm as having an “un-survivable storm surge” with large and destructive waves causing catastrophic damage along the coast of eastern Texas to the eastern part of Louisiana. The surge could penetrate up to 30 miles inland from the coast. Add to this, the catastrophic wind damage, and Laura promises to carry a large price tag economically as the storm continues first up into Arkansas then across the United States for the Atlantic with rains and flooding. This year is forecast to be a very active hurricane season so more economic damage may be in the play book.
2) Walmart is suspending its InHome delivery service, which offered the convenience of having people’s groceries delivered and unpacked by the delivery person in the customer’s kitchens. But because of the Convid-19 crisis and the need for contactless service, Walmart is discontinuing the service in favor of its Doorstep Delivery service, where groceries are delivered to consumers but now is left on the door step. With its other two delivery service, Walmart is becoming a strong contender in the e-commerce business.
3) Two long established regional grocery chains have filed for bankruptcy, another sign of the shifting of retail business in America, as traditional retailers fail to adapt to the new economic world. Balducci’s and Kings Food Markets of the north eastern coast were having financial struggles before the pandemic set in, but even thought both had a boost in sales from the pandemic, it wasn’t enough to save them. All stores will remain open as their holding company seeks a buyer. The two grocery chains date back to the first half of the twentieth century and they prospered through the decades before e-commerce.
4) Stock market closings for – 26 AUG 20:
Dow 28,331.92 up 83.48 Nasdaq 11,665.06 up 198.59 S&P 500 3,478.73 up 35.11
1) With the expiration of the stimulus bill, there are now 40 million Americans who are at risk of eviction unless the new stimulus bill is passed. This means the threat of eviction by the end of this year. Forty-three percent of renter households are facing eviction. This will result in homelessness and negative health outcomes, greater unemployment, educational decline and long term harm for renters, property owners and communities. Renters in the southern part of the country face the highest risk of eviction, with Mississippi the highest at 58% followed by Louisiana at 56%.
2) The sheltering in place, because of the pandemic, has brought a boom to the home remodeling market. Now unable to go out people are looking to make improvements to their homes, both inside and out, to make them more comfortable. Home improvements have shot up 58% since the stay at home orders started, with the outdoors improvement the most. New swimming pools and spas are now three times as many as they were last year. With most people now cooking at home, demand for decks, patios and barbeques are also in high demand.
3) Restaurant Brands International, the holding company for Burger King, Tim Hortons and Popeyes restaurants is planning to close hundreds of locations this year. These are restaurants deemed to be underperforming, and closing outlets is a measure usually taken to curb cash outflow. No words on which restaurants might be close or even what country they are in. The closings will balance out the new openings for this year, for a net zero count of closures. RBI is still the process of researching which restaurants are unprofitable and need to be closed with the aim of making the company stronger financially, but closures are expected to start in the second half of 2020.
4) Stock market closings for – 7 AUG 20:
Dow 27,433.48 up 46.50 Nasdaq 11,010.98 down 97.09 S&P 500 3,351.28 up
1) The automaker of electric cars Tesla has made its first deliveries of their Model 3 that were manufactured in China. The gigafactory in Shanghai is Tesla’s first outside the U.S., which is expected to significantly boost Tesla sales in China, which Tesla considers will become its largest market for the Model 3. Production will soon be 1,000 cars a week, eventually reaching an annual production of 150,000 a year.
2) The national average price for gasoline increased by 1.6 cents to $2.57 a gallon. Gas prices had been dropping for seven consecutive weeks prior to the upswing. The price increase is a result of the drop in oil inventories while oil prices are above $61 a barrel. Gas prices are above $3 a gallon in Hawaii, California, Nevada, Alaska and Washington, while Missouri, Oklahoma, Mississippi, Texas and Louisiana are the five states with the lowest priced gas states.
3) Vietnam is switching from producing and selling raw robusta beans on the commodity markets, to producing instant coffee for the burgeoning Asian market. Instant coffee brings more profit with less risk while also bringing protection from large swings in international commodity prices. Vietnam aims to overtake Nestle as Vietnam’s biggest pure instant coffee supplier in the next five years, and doubling its coffee exports to $6 billion dollars a year.
4) Stock market closings for – 30 DEC 19:
Dow 28,462.14 down 183.12 Nasdaq 8,945.99 down 60.62 S&P 500 3,221.29 down 18.73
Texas oil refineries began production of oil again Saturday Sept 3, 2017. This is after a rocky and unstable week presented to the Texas and Louisiana region from the turbulent hurricane called Harvey. Hurricane Harvey being categorized as a Category 4 hurricane, ruined and destroyed billions and billions of dollars of infrastructure and property (residential and commercial); and distablized the southern gulf region.
The federal government has indicated that close to $200 billion will be needed to infuse in the economies; of Texas and Louisiana especially to jump start business initiatives and future business development projects in the region.
Alot of the Texas refineries had to drastically cut production because of the damage Harvey propelled. More then half of the oil refineries in the US is in the Gulf, so when Harvey hit the region, it really made a impact to oil production.
As the refineries begin to resume their productivity, many people and businesses will have to find ways to pick up and resume their lives, from the turmoil this horrible hurricane has inflicted on them. -SB
Businessman Bassey (Sammy BE) along with co host James Lymon and KH (Kyle Harper)on the boards, interviewed G-Unit’s very own Kidd Kidd. Kidd Kidd discussed with us his economic and financial grind, and his upbringing in N.O. (New Orleans).