1) About two-thirds of the restaurants in New York are expected to permanently close by the end of this year. Restaurants in New York State are not allowed to do indoor dining, only takeout and outdoor dining is permitted. Therefore, a major portion of New York restaurants are unable to meet their revenue requirements without the indoor dinning. Surveys indicated that 64% of restaurant owners are likely to close by the end of this year, and about 55% to shut down before November, which amounts to a collapse of the restaurant industry in New York State. A group of 100 restaurant owners are banning together to launch a class action lawsuit to open up indoor dining.
2) In August, the American economy added 1.37 million jobs, which was above the 1.32 million forecasted by economist. The big winners were the Government and Retail trade, with the 2020 censes accounting for much of the government’s increase in jobs, but like the censes itself, those jobs will be temporary. The job increase in retail is a result of retail stores opening back up, and so those jobs should remain, baring losses from stores closing from failure. With the growing signs that the U.S. economy is improving and jobs are coming back, there is less pressure on Congress to pass a new fiscal stimulus package. The unemployment rate has fallen below 10% to 8.4%, but is still a long way from the 3.5% before the pandemic.
3) The hopes of a comfortable retirement are continually dimming for the youth of America because of a number of reasons. The increase life span after retirement means more money is needed to cover retirement. Retired people are still subject to economic downfalls such as the Great Recession of 08 that robbed workers of earning power. The age of private pensions is gone, with workers now expected to provide all their own retirement out of their own pockets. This goes hand and hand with Social Security’s money reserves dropping as more retirees take their pension. Interest rates are low, making saving for retirement unproductive while the stock market is risky, plus people are reaching retirement with more debt and therefore requiring more money to sustain themselves. The average American needs to have three quarters of a million dollars to retire and be able to maintain their standard of living.
4) Stock market closings for – 4 SEP 20:
Dow 28,133.31 down 159.42 Nasdaq 11,313.13 down 144.97 S&P 500 3,426.96 down 28.10
10 Year Yield: up at 0.72%
Oil: down at $39.51
For- 7 SEP 20:
Dow 28,133.31 down 159.42 Nasdaq 11,313.13 down 144.97 S&P 500 3,426.96 down 28.10
1) The airline industry is one of the hardest hit segments of the economy from the pandemic, with an estimated 36% drop in traffic this year. But the International Air Transport Association is warning that it could worsen with a 53% drop if boarder curbs on emerging market countries and the U.S. remain in place. The U.S. – EU (European Union) air travel market generates $29 billion dollars a year is threaten by the ban on non essential flights from the U.S. as the EU attempts to avoid an resurgence of the virus. Air travel was down over 90% for April and May, with little prospects for improvement in the near future, leaving the future of air carriers in doubt too.
2) The maker of electric automobiles Tesla has become the world’s most valuable automaker, surpassing Toyota’s for the first time on record. Tesla’s valuation is roughly $206.5 billion dollars compared with Toyota’s valuation of about $202 billion dollars. This underscores the vast investor enthusiasm for the automaker, which has yet to turn a profit on an annual basis. While it’s valuation exceeds Toyota, its car production of 103,000 cars lags far behind Toyota’s production of 2.4 million vehicles. The valuation comes from the stock in the company, with investors piling money in since there aren’t any other electric vehicles investments available, with Tesla stock soaring to $1,135 per share.
3) Electricity bills are set to surge this summer because of millions of Americans sheltering in place. This added demand will mean higher electricity costs for months to come. This will mean an additional $30 to $40 per month on electric bills in cities like New York and Philadelphia. Increases are anticipated to be highest for the northeast area of the country, decreasing when going westward. This comes when people’s finances are already stretched tight because of the coronavirus crisis.
4) Stock market closings for – 1 JUL 20:
Dow 25,734.97 down 77.91 Nasdaq 10,154.63 up 95.86 S&P 500 3,115.86 up 15.57
1) Despite more than two centuries in New York, JP Morgan is quietly shrinking its workforce there. The bank has been relocating several thousand New York based employees out of the area to reduce operating cost incase of an economic downturn. JP Morgan is considering moving the hub from New York to other lower cost hubs such as Plano, Texas or Columbus, Ohio or Wilmington, Delaware.
2) The world famous jeweler Tiffany has been offered $14.5 billion dollars from LVMH, which would be the largest take over by LVMH. The goal of the acquisition is to extend the reach of Louis Vuitton into the U.S. markets. Jewelry is one of the few segments of the luxury market where LVMH is not the leader, but having Tiffany would make it a stronger competitor under the ownership of LVMH.
3) The subprime auto giant Santander Consumer USA Holdings has defaulting loans at a faster rate since 2008. Many of these loans are packaged into bonds. The growing number of borrowers defaulting indicates that many of the borrowers may be getting loans based on fraudulent application information. Delinquent auto loans have reached their highest levels this year since 2011. The weakening performance in managed portfolio signals elevated risks and is an overall negative development.
4) Stock market closings for – 28 OCT 19:
Dow 27,090.72 up 132.66 Nasdaq 8,325.99 up 82.87 S&P 500 3,039.42 up 16.87
1) Several state attorney generals will investigate Facebook for possible stifling competition and putting users at risk. This comes after reports that Google will face antitrust investigations from state attorney generals. The investigations will center on actions that endangered consumer data, reduced the quality of consumers’ choices or increased the price of advertising. States investigating include New York, Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia.
2) President Trump unhappy at GM for decision to close four of its domestic auto plants. General Motors, which was once the giant automaker in Detroit, is now one of the smallest. GM has gone from 33 plants in the US to 29, but has an additional 27 manufacturing plants in China. Presently, GM sells more cars in China than it does in America. This accounts for $16 billion dollars in profit for GM.
3) The American consumer is carrying the U.S. economy in last quarter. The personal expenditures rose last quarter while business and residential investment, net exports and inventories have declined. There are concerns that consumers may rein in spending from fears of economic future. Global commerce is slowing, partly in response to the trade war, and without strong consumer spending it’s hard to see alternate sources of economic growth.
4) Stock market closings for – 6 SEP 19:
Dow 26,797.46 up 69.31 Nasdaq 8,103.07 down 13.75 S&P 500 2,978.71 up 2.71
1) Apple’s Apple Tech development system is being used to breach iPhones, giving hackers access to user data. But users who buy their apps from the Apple store do not have to worry.
2) Airbus is taking it’s A380 super jumbo airliner out of production as airlines turn away from the jumbo jets to concentrate on the smaller jet liners for service. The A380 is a double decker 544 passenger aircraft designed to challenge the Boeing 747, its first flight was in 2005 while the 747 first flew in 1967, however A380 never took hold because airlines preferred the smaller two engine aircraft.
3) Amazon announce it is canceling its plans to build its headquarters in New York, amidst quickly rising opposition by the people in Queens and local politicians opposed to the $2.8 billion dollar tax incentives to Amazon. This means the loss of potentially 25,000 new jobs for the New York area. Also, Amazon announced they will not reopen their search for a city, rather they will concentrate on their second headquarters in Virginia.
4) 14 FEB 19 Stock market closings:
Dow 25,439.39 down 103.88 Nasdaq 7,426.96 up 6.58 S&P 500 2,745.73 down 7.30