14 August 2020

1) This year’s hurricane season was already forecast to be a very active season, but now is going from bad to worst because of La Nina. The hurricane season was already on a record making pace, with the peak of the season coming in just a few more weeks. The possibility of the pacific having a La Nina, a state where the sea surface temperature becomes cooler than usual, is increasing in probability. This change in pacific weather patterns decreases the hurricane killing wind shear across the Atlantic, thus allowing more storms to form and strengthen. The Atlantic has already had 10 storms, which is the earliest number to occur by this date. Predictions are for as many as 25 storms forming, compared with the 2005 record of 28 storms including Hurricane Katrine. Additionally, a La Nina can spell cooler temperatures and storms across the north, with drier weather in the southern U.S., all having significant economic impact on America.

2) Again, the first time jobless claims have dropped, this time it’s the first time below 1 million since last March. Last week, 963,000 people filed for first time unemployment benefits, the first time in five months claims were below 1 million. Although the decline is a positive sign, the economic job situation still remains critical with 15.5 million people still unemployed, but still people are returning back to work. The employment problem still remains worst than for the Great Recession just a decade ago, which had lower jobless claims. It took nearly five years for the peak in 2009 until 2014 to return to what they were before the Great Recession.

3) Oil prices dropped as a result of IEA’s (International Energy Agency) forecasts for global oil demand. This reduction is in part a result of the slowdown in air travel. Price of oil has been creeping up coming to a five month high on Wednesday, but then fell as much as 1.3%, from the forecast of a drop in consumption for every quarter to the end of the year. The forecast also signals a shift in the recovery toward a stalling of economic growth. There remains an inventory overhang that persists, which the oil industry continues to work down.

4) Stock market closings for – 13 AUG 20:

Dow 27,896.72 down 80.12
Nasdaq 11,042.50 up 30.27
S&P 500 3,373.43 down 6.92

10 Year Yield: up at 0.72%

Oil: down at $42.34

GENERAL CHARLES “CQ” BROWN BECOMES FIRST AFRICAN AMERICAN USA MILITARY SERVICE CHIEF

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