5 November 2019

1) Saudi Arabia has started its long anticipated IPO (Initial Public Offering) of Aramco, the Saudi state run oil giant. A sliver of the firm will be offered on a local stock exchange with the intent of raising billions of dollars for the kingdom. Initially, the firm’s shares will be traded on Riyadh’s Tadawul stock exchange, but later shares will be offered on foreign exchanges. Aramco is valued at $2 trillion dollars, with first and second quarter income of $46.8 billion dollars.

2) The high end luxury retailer Barneys of New York fell into bankruptcy, parts sold off as scrape to end an era. The retailer introduced such names as Armani, Alaia, Comme des Garcons, Louboutin and Zegna. The name Barneys was taken control of by Authentic Brands Group, a name which is part of the New York culture since 1923, and will license it to other companies like Saks Fifth Avenue. Next week, the company’s inventory at its five stores and two warehouse locations will be sold.

3) Predictions for 2020 investors include a recession, questions of interest rate cuts, market volatility, impact of the up coming election cycle, Brexit, earnings growth, low unemployment, mild inflation and wage growth. Each of these uncertainties can play a part on the ultimate outcome for the 2020 economy with interactions of them making the future economy uncertain for investors.

4) Stock market closings for – 4 NOV 19:

Dow           27,462.11    up    114.75
Nasdaq        8,433.20    up      46.80
S&P 500       3,078.27    up      11.36

10 Year Yield:    up   at    1.79%

Oil:    up   at    $56.45

12 June 2019

1) For the sixth straight month of a gold buying spree, China continues to add to it’s gold reserves under the protracted trade war. China added 58 tons of gold to its reserves in the five months to April, then added 15.86 tons in May. At this rate China could buy as much as 150 tons of gold in 2019, as they diversify away from the U.S. dollar.

2) The retailer giant Amazon has opened a second cashier-free store in New York, which makes the thirteenth ‘Amazon Go’ store to open in America. The convenience robot store is about 1,700 square feet with Amazon announcing its fourteenth store will open in San Francisco. By 2021, Amazon may open as many as 3,000 of these robot retailing stores which threaten other retailers like 7-Eleven shops, CVS and Walgreens.

3) Ten state attorney generals plan to jointly file a lawsuit to stop the merger of Sprint and T-Mobile. The $26 billion dollar merger will reduce the number of nationwide wireless carriers to three. So far, the deal has won the backing of the majority of the FCC, which makes the Federal Government in favor of the move.

4) Stock market closings for 11 JUN 19:

Dow            26,048.51    down    14.17
Nasdaq         7,822.57    down      0.60
S&P 500        2,885.72    down      1.01

10 Year Yield:    down   at    2.14%

Oil:    down   at    $53.05