By: Economic & Finance Report
Image Credit: Forbes.com
By: Economic & Finance Report
Image Credit: Forbes.com
1) Across America, schools are struggling over if and how they should open and operate amidst the Covid-19 crisis while knowing students are infected in growing numbers. Schools are opening their doors only to have to quickly backtrack as soon as infections pop up. Debates rage over using ‘remote learning’ verse ‘in class’, with a mirid of problems with either strategy. Add to this is fears of teachers and bus drivers being exposed to potentially life threatening infections. The main problem is schools just aren’t designed for social distancing, either in the classroom or hallways. There isn’t any federal standards to guide local schools in the opening and operating of schools in the shadow of the pandemic.
2) First class mail volume had declined significantly in America, especially since the pandemic, so the USPS (United States Postal Service) is removing mailboxes in parts of Oregon. The USPS has seen a significant decline in revenue, a decline that has been on going for many years as electronic billing/payment and email has become increasingly popular. This could be portends of things to come in the near future, as the USPS struggles with money to operate.
3) With China’s announcement of its latest combat drills near Taiwan, the democratic island is increasing its defense spending. China’s aggressiveness, both military and economic, in the pacific area is raising fears of surrounding countries about their safety. Japan is also concerned over what China might do with her fast growing military power. Taiwan is increasing their military budget by 10.2%. Since the early days of the cold war, Taiwan has been threatened by China, including direct military attacks, so Taiwan knows that China has to be taken seriously. The island nation is discussing acquiring sea mines to deter amphibious landings as well as cruise missiles for coastal defense. Last year the State Department approved $10 billion dollars in arms sales. Additionally, Taiwan is beginning free trade talks with the U.S., a move that would bring the two countries closer together.
4) Stock market closings for – 14 AUG 20:
Dow 27,931.02 up 34.30
Nasdaq 11,019.30 up 23.20
S&P 500 3,372.85 up 0.58
10 Year Yield: down at 0.71%
Oil: down at $42.23
1) Both Japan and China are building up their military forces for possible future contest over Pacific islands. This is another sign of China’s increasing contentious relations with neighbors, in particular Japan over disputes of several islands in the East China Sea. This is necessitating the buildup of military forces to approach, capture and defend islands. So this means a build up of Marine forces, which both countries are in the process of doing. This includes amphibious armored vehicles and self propelled artillery. U.S. intelligence consider the Chinese Marines to be fully amphibious and able to use combined arms tactics and multiple avenues of approach. This includes building a blue water navy with well over 300 vessels. In response, Japan is starting up its first Marine unit since World War II, modeled after the U.S. Marine Corps, to defend its southern islands. This buildup means massive expansions which neither country’s economies are able to tolerate with the worsening world economy.
2) Boeing aircraft manufacture’s troubles continue to get worst with the loss 737 MAX orders now over 400 and stymied shipments of its 787 Dreamliner because of the world pandemic. Last month, Boeing delivered just four jetliners while also booking zero new orders. Their total stockpile of orders was 4,496 aircraft at the end of July, which is down 1.2% from June. There is the risk that Boeing will have to halt 787 production to preserve cash. Most airline companies have grounded a significant portion of their fleets and are operating only a fraction of their pre-pandemic schedules.
3) Instacart, the young food delivery service, is partnering with Walmart, Amazon’s biggest competitor, to bring Walmart one day delivery service. This will make thousands of items, from groceries to home decor and improvement, personal care and electronics go from Walmart stores to customers’ doors as fast as an hour. This is another ratchetting up of the retail business, when many big name retailers are floundering and some going under. A fundamental change in the way Americans are buying things for their everyday lives is occurring.
4) Stock market closings for – 11 AUG 20:
Dow 27,686.91 down 104.53
Nasdaq 10,782.82 down 185.53
S&P 500 3,333.69 down 26.78
10 Year Yield: up at 0.66%
Oil: down at $41.66
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
10 Year Yield: down at 0.62%
Oil: up at $40.44
1) Robert De Niro, the world famous actor, has had his personal finance’s badly hit by the coronavirus pandemic. He’s been forced to cut the credit limit of his ex-wife from $100,000 to $50,000 a month because of his cash flow problems. His restaurant and hotel chain, the Nobu and The Greenwich Hotel, have had huge losses over the past few months. Additionally, his earnings from the movie “The Irishman” have almost dried up. It’s reported that the actor will be lucky to make $7.5 million this year. Both the restaurant chain and hotel have been closed or partially closed for months with next to no income. The Nobu lost $3 million in April and $1.87 million in May, with De Niro forced to borrow money to pay investors $500,000 on a capital call.
2) The online retailer giant Amazon is requiring employees to remove the Tik Tok application from their phones if their device accesses Amazon email because of security concerns. Tik Tok is a video sharing app which has become the most popular social media apps in the world. But government officials and business leaders are becoming wary of the Chinese owned company. The U.S. military has already banned using Tik Tok because of threat of spying by the Chinese. A new privacy feature in iOS 14 revealed Tik Tok was accessing users’ clipboard content despite promises by the Chinese to discontinue the practice last year.
3) An underwater or upside-down mortgage occurs when the home value is lower than the mortgage. While not common, this occurs when home values decline leading to owing more than the current house value and therefore having negative equity. Factors which cause home values to rise and fall are interest rates, high rates of foreclosures and short sales in your area, and natural disasters. Underwater mortgages usually occur during an economic downturn where home values fall off. One way to become up-side down is when secondary financing (home equality loan) equals more than 100% of the home value.
4) Stock market closings for – 10 JUL 20:
Dow 26,075.30 up 369.21
Nasdaq 10,617.44 up 69.69
S&P 500 3,185.04 up 32.99
10 Year Yield: up at 0.63%
Oil: up at $40.62
1) Economists are concerned about four major factors bearing down on a recovery of the economy. These are 1) the household fiscal cliff, 2) a great business die-off, 3) state and local budget shortfalls, and 4) the lingering health crisis. The pandemic shutdown cost the jobs of 40 million Americans, 40% of them low wage workers. This has left many households short of money, having little to no savings to meet their fiscal obligations such as rent and utilities. Add to this, there has been a steep decline in consumer spending leaving large numbers of businesses to face bankruptcy, thereby making a contraction of the economy. But businesses are not the only one facing revenue shortfalls, for governments are also facing shortages of money needed for their operations and paying employees, as in more layoffs. Finally, the cost of controlling the Convid-19 virus, especially if a major second wave does emerge, for both preventive treatment and caring for the sick. All four of these factors may very well be pushing America’s economy towards another Great Recession, which could last for many years.
2) The New York eviction moratorium ended this weekend, raising fears that tens of thousands of residents will soon face evictions which will flood the courts. This problem is a reflection of a problem across all of America as those 40 million laid-off workers have been unable to pay rent or mortgage payments and now face losing their residence. But it isn’t one sided, for landlords and lenders are also facing money shortages to meet their obligations too, which can lead to their fiscal demise. Most of the tenants and home owners have limited monies beyond their income, so paying back rent and mortgage is going to be near impossible.
3) China is warning of the risk of a naval incident with the US. Claiming that the U.S. military is deploying in unprecedented numbers to the Asia-Pacific region, which makes for a rising risk of an incident with China’s navy. The United States freedom of navigation operations in the South China Sea has angered the Chinese, who is trying to establish dominance in the area and hence control of the territory. The Chinese claim that 60% of America’s warships and 375,000 soldiers are deployed in the Indo-Pacific region, including three aircraft carriers. So far, the U.S. Navy has conducted 28 freedom of navigation operations by sailing through the area where China has built islands, and therefore claiming the area as theirs.
4) Stock market closings for – 23 JUN 20:
Dow 26,156.10 up 131.14
Nasdaq 10,131.37 up 74.89
S&P 500 3,131.29 up 13.43
10 Year Yield: unchanged at 0.71%
Oil: up at $40.02
By: Economic & Finance Report
General Charles “CQ” Brown has done it…. He is the first African American US Air Force chief of staff, and the first African American to lead a military branch in the United States. Nominated by President Trump in March 2020. He is second African American to join the US Joint Chiefs of Staff (after former Sec. of State General Colin Powell). He was confirmed by the Senate with a 98-0 vote, on June 9, 2020 (Wednesday).
General Brown has decorated accomplishments to him. He is a 4 star general; and until recently he lead the Air Force in the pacific. General Brown started his career in the Air Force in 1984, as F-16 fighter pilot and instructor. He served in duties around the globe particularly in Europe, Asia and the Middle East. -SB
Image Credit: AF.mil
By: Economic & Finance Report
Special day in the United States. Memorial Day is a day of rememberence, recognition and reflection, for those who have sacrificed and who continue to sacrifice their service and lives for our country’s sovereignty, liberty, and unconditional freedoms…
I salute and commend our servicemen and servicewomen, who tend to the challenges daily, that face this great nation….
*Salute & God’s Many Blessings*… Happy Memorial Day -SB