1 February 2021

1) While on the campaign trail, the new President Biden didn’t say much about space technology or projects. The space agency funding makes up just 0.4% of the national budget compared to 4% back in the mid-1960s. The Congress has not provided the funds for a earth to moon vehicle yet, so this raises the question of just how much will the new President support the space program. With Biden’s focus on the planet and global warming, concerns about worlds beyond earth appear to be diminishing. NASA already supports the earth sciences with its satellites and aircraft, and with the massive federal spending this last year, the Congress and maybe the President will seek to reduce spending so NASA may face cuts these next few years.

2) The automaker Dodge is warning that regulations are killing the V8 engine. They say the days of an iron block supercharged 6.2 liter V8 are numbered because of all the compliance costs. The Biden administration is widely expected to announce stricter emissions regulations in the near future. But electrification can help ensure muscle car enthusiasts don’t suddenly loose their passion, that we’ll start seeing battery-powered drive trains with massive horsepower for cars . . . electric muscle cars.

3) It is expected that 10,000 stores will close by the end of 2021 due to COVID-19. Consumers are increasingly favoring the convenience and safety of shopping online during the pandemic. This is a 14% jump in the retail industry closures from last year, when a record number of major vendors closing more than 8,700 stores. Businesses that sell apparel accounted for the most store closures in 2020. More than 3,000 clothing, footwear and accessories stores were shuttered last year, with Ascena Retail Group (brands Ann Taylor and Lane Bryant), closing more than 1,100 of its store locations. However, virtually no category of retail business was spared, with discount home and office retailer Pier 1 Imports filing for bankruptcy and closed all 936 of its stores. As of January 22, nearly 1,700 retailers have already closed. Other retailers are closing with 7-Eleven closing 300 stores, Family Video is closing its remaining 250 locations, ending its 42-year-old run. Ascena Retail Group will also close 195 brick-and-mortar stores in 2021.

4) Stock market closings for – 29 JAN 21:

Dow 29,982.62 down by 620.74
Nasdaq 13,070.70 down by 266.46
S&P 500 3,714.24 down by 73.14

10 Year Yield: up at 1.09%

Oil: down at $52.15

TODAY INAUGURATES A NEW PRESIDENT & NEW VICE PRESIDENT……..

By Economic & Finance Report:

President Elect Joe Biden and Vice President Elect Kamala Harris will be sworn in at the capital at approx. 12pm est today, Wednesday, January 20, 2021. It has been reported that they will be sworn in at Capitol Hill outside to a small audience of 2,000 invited only guests (socially distancing) because of Covid-19 protocols.

President Donald Trump has already vacated the White House earlier this morning at 8am est, Wednesday, January 20, 2021. Making a smooth transition for the incoming President (Joe Biden) to occupy the “People’s House”, the historic White House. -SB

Image Credit: Business Insider

18 January 2021

1) One Chinese province, Heilongjiang, with more than 37 million, has declared an emergency state to snuff out a handful of Covid-19 cases, as China moves decisively to contain infections. China had largely brought the coronavirus under control since its emergence in Wuhan late in 2019, however in recent weeks China has seen smatterings of cases, prompting localize lock downs, immediate travel restrictions and widespread testing of tens of millions of people. China is trying to squash the virus ahead of next month’s Lunar New Year festival, when hundreds of millions of people are due to travel across the country. Those highly anticipated annual journeys are often the only time for many migrant workers to see their families.

2) Biden has promised to extend the pause on student loan payments during his first day in office. Here are other steps the new administration could take for student debt relief. Forgiving $10,000 in student loan debt for each person, but it’s unclear of the time frame to do so. Also, it is unclear on whether Biden can use executive powers to cancel student debt or if only the Congress can do it. On day one Biden will direct the Department of Education to extend the student loan forbearance program, the first promise the president-elect has made in combating the $1.6 trillion student debt crisis. Senator Elizabeth Warren of Massachusetts is pushing for $50,000 to be forgiven.

3) Scientist warns that civilization is on the precipice of a ‘ghastly future’ that humanity has gravely underestimated the effects of biodiversity decline, climate change, and pollution. A review of over 150 studies finds the central problems we face are economic and political systems centered around unsustainable human consumption and population growth at the expense of all else. Biodiversity loss started some 11,000 years with the start of agriculture, which has vastly accelerated in recent centuries due to ever-worsening pressures placed on natural ecosystems. With a world population of 7.5 billion, which is expected to peak at 10 billion, that is worsening existing food insecurity, soil degradation, biodiversity decline, pollution, social inequality, and regional conflicts. Food production is sustained with the increasing use of fossil fuels and petrochemicals. Humanity is running an ecological Ponzi scheme in which society robs nature and future generations to pay for boosting incomes in the short term, all supported with petrochemicals. Half the large mammals in the world are humans, the other half are the domestic animals providing humanity with subsistence. All the other large mammals fit into just a 5% sliver.

4) Stock market closings for – 15 JAN 21:

Dow 30,814.26 down by 177.26
Nasdaq 12,998.50 down by 114.14
S&P 500 3,768.25 down by 27.29

10 Year Yield: down at 1.10%

Oil: down at $52.04

15 January 2021

1) As Joe Biden approaches taking office, the question of a third stimulus check is already open, but one point is the amount, either $2,000 or $1,400. With $600 checks already being dispersed, the question expands to having the second and third payments combined to total of up to $2,600. In turn , Biden may propose a third stimulus check for $1,400 per eligible adult, for a total of $2,000 between the two payments. But America isn’t the only nation amassing huge national debts with cash back programs to its citizens. From small third world nations to the most advance western nations, a large number of nations have stimulus payments in an attempt to salvage their economies, several paying more per person than America. There has been little to no concern of how these national debts will be paid back, leaving a growing instability of the world economic system. If one of these indebted nations should start collapsing, the other economies could then be pulled down and collapse too. Like a gaggle of standing dominos, one falls, knocks down more, who in turn knocks down more until the whole comes tumbling down resulting in disaster.

2) Even with majorities in the house and senate, the new president Biden faces a hard time getting his Covid relief bill passed. This could further be hindered if the Senate becomes embroiled in an impeachment trial of President Trump and the confirmation of Biden’s Cabinet in the early days of his administration. Typically, a new president has his first hundred days, the honeymoon time, when the Congress is most willing to support and pass the legislation the new president proposes. But continuing actions and debates against Trump will eat into that honeymoon, plus distracting by the press away from the president, leaving Biden ‘holding the bag – possibly empty’.

3) China joins the rush to driverless cars, with the Chinese startup company WeRide raising $310 million dollars in funding as the race to robot cars heats up. This funding and new investors will give the company the strategic resources to commercialize self-driving technology. The company says it will launch trial operations for their Mini Robobuses immediately. WeRide valuation is estimated to top $5 billion. Other companies including search giant Baidu, start-up AutoX and ride-hailing firm Didi, who are competing in the same space.

4) Stock market closings for – 14 JAN 21:
Dow 30,991.52 down by 68.95
Nasdaq 13,112.64 down by 16.31
S&P 500 3,795.54 down by 14.30
10 Year Yield: up at 1.13%
Oil: up at $53.80

CONGRESS FINALLY REACHES $900 BILLION STIMULUS DEAL BEFORE HOLIDAYS!!!!!!!!!!

By: Economic & Finance Report

Eureka!!!!!! Finally a resolution for the stimulus package to be garnered to the American people and American struggling small businesses; in the United States. The stimulus package reached by the Republican & Democrat Senate & House leadership; will have a full vote by the US Senate & House of Reps on Monday, December 21, 2020.

The $900 billion price tag leaves out state aid, that governors and mayors across party lines have indicated they desperately need, to revive their local economies. Local officials will have to figure out ways to attribute their fiscal budget without the aid support being provided by the federal government.

The stimulus deal was reached late Sunday night December 20, 2020 by both Republicans and Democrats. It had been in negotiations for months, as Democrats and Republicans had been jostling for superiority on what should be included for the second wave of stimulus checks to the American people and American small businesses. The package aid was desperately needed because of the collapse of the economy, caused by the coronavirus pandemic. -SB

Image Credit: Forbes.com

23 November 20

1) When Joe Biden takes the presidential oath of office next year, he will need to address the question of his son and brother’s business arrangements with entities of foreign governments. A five-page report, with 65 pages of evidence, confirms the connections between the Biden family and the communist Chinese government, as well as the links between Hunter Biden’s business associates and the Russian government. Bidens’ global web of “consulting” and influence-mongering has created some unsavory question about conflicts of interest. Even if every past, present, or future business arrangement by Hunter and Jim Biden is technically legal, which is still an open question, plenty of difficulties can arise from financial pressure to do the bidding of those adversaries. To maintain public trust in his new administration’s diplomacy, the new president must force his son and brother to divest from many aspects of Biden family business.

2) Earlier this year, Australia was among the first countries to call for an official investigation into the coronavirus origins. China responded angrily which accusations that Australia’s highly irresponsible acts could disrupt international cooperation in fighting the pandemic. In recent months, China has imposed trade tariffs on Australia, targeted Australian journalists, and issued angry missives regarding Australia’s dealings with other regional powers. Chinese diplomats have distributed a document to Australian media listing Beijing’s grievances with Australia. These include unfairly blocking Chinese investment, spreading disinformation about China’s coronavirus response, falsely accusing Beijing of hacking, and engaging in incessant wanton interference in Xinjiang, Taiwan and Hong Kong. Yet while there may be legitimate concerns about China in a number of countries, such as the role of telecoms manufacturer Huawei in 5G networks, Australia has become more hawkish than most, but Australia could look foolish if Biden opens up partnerships with China on climate and pandemic management leaving Australia standing alone.

3) As Congress breaks for Thanksgiving, 12 million Americans may lose their jobless benefits on December 26 unless Congress can agree on a new stimulus deal in the next few weeks. More than half of the 21 million people currently collecting unemployment benefits can be effected. If lawmakers head home for Thanksgiving soon, it is even less likely they will reach a deal before they break for the year in December. As they do, millions of Americans could potentially lose their own residences when the nationwide eviction moratorium also expires at the end of the year. Tens of millions more cannot afford enough food to eat. Additionally, long-term unemployment is on the rise with the share of jobless workers out of work for 27 weeks or more, shot up from 19.1% to 32.5% in October, because there are simply not enough jobs being created to support all of the workers running out of aid before the end of 2020.

4) Stock market closings for – 20 NOV 20:

Dow 29,263.48 down by 219.75
Nasdaq 11,854.97 down by 49.74
S&P 500 3,557.54 down by 24.33

10 Year Yield: down at 0.83%

Oil: up at $42.47

U.S. Presidential Election 2020: TOO CLOSE 2 CALL

By: Economic & Finance Report

The USA Presidential Elections 2020 is in a dead heat, the stakes could not be higher. Only a few states are now the determining factor in deciding the next U.S. President, for the next 4 years. Both candidates, President Donald Trump and former Vice President Joe Biden need 270 electoral college votes to become the president of the United States.

There have been a pendulum of states going back and forth for each candidate, and a few “swing states” will be the determining factor on who becomes the next president of the United States of America. Stay Tuned-SB

Image Credit: ABCNews.com

AMERICANS THAT ARE WEALTHY; ARE CLOSELY MONITORING THEIR FINANCES UNDER TRUMP PRESIDENCY OR BIDEN PRESIDENCY

By: Economic & Finance Report

Wealthy Americans are monitoring their finances and tax proposals from both candidates as the 2020 presidential election gets closer.

Money managers, financial advisors and accountants across the United States spectrum, have been advising their wealthy clients about what they may expect from either a Trump reelection presidency or a Biden presidency.

Some experts have advised their clients on what they will be paying in taxes under a Biden Democratic Presidency and Congress; what to expect with the current Trump Presidency and a full Republican Congress.

Things may be mightly different in comparison, opposed to exemptions and what the rich/wealthy will have to shell out and what they will save in either presidency. -SB

28 July 2020

1) Economist are warning that the economy needs help now to avoid faltering. As the President and Congress struggle to create another economic aid package, evidence is growing that the U.S. economy is headed for trouble, especially if the government doesn’t take steps to support hiring and economic growth. Experts say the economy is in a pretty fragile state again and needs another shot in the arm. Unemployment is still at a high 11.1% and hiring seems to be slowing in July, so the economy is likely to weaken further. Few economist consider that the recovery will be a V-shaped path, that is, the sharp recession will be followed by a quick rebound. In addition to helping the millions of unemployed Americans, the governments needs to help businesses from going bust.

2) There are five trends which indicate the U.S. economy is not rebounding as hope. The first is ‘Direction Requests’ on smart phones for walking and driving directions, have gone flat over the last few weeks indicating people are staying at home. The second is ‘Restaurant Bookings’ which show a 60% drop from last year. Third trend is ‘Hotel Occupancy’ which has stagnated with occupancy at 47%. ‘Air Travel’ was slowly increasing, but has also stagnated this last month with air travel down 70% from last year. Finally, ‘Home Purchases’ is increasing at a slow rate, a reflection of peoples uncertainty and changing employment status of potential buyers.

3) Price of gold continues to climb, as investors seek the safety of the yellow metal amidst economic fears of the future. Gold has historically been a refuge for money in times of economic uncertainty, a panic investment. Bullion has climbed to a record high of $1,946 per ounce. The real interest rates (less inflation) is driving investors to gold, as well as the tumbling dollar. Silver bullion is also increasing in price as another safe heaven for investing.

4) Stock market closings for – 27 JUL 20:

Dow 26,584.77 up 114.88
Nasdaq 10,536.27 up 173.09
S&P 500 3,239.41 up 23.78

10 Year Yield: up at 0.61%

Oil: up at $41.66

10 April 2020

1) Jerome H. Powell, the Federal Reserve Chair, said the U.S. economy is in an emergency, which is deteriorating with alarming speed. His remark comes after unveiling over $2 trillion dollars in new loans to keep the economy afloat, a result of the coronavirus shutdown. America is moving from the lowest unemployment in fifty years to a very high unemployment in just weeks. Claims for unemployment aid is now up to 17 million and still climbing as more businesses fight to survive. It is expected the U.S. economy may shrink by more than 30% between April and the end of June. The Fed will soon begin purchasing up to $750 billion dollars in corporate loans from big businesses who have a low investment grade, in the hopes of preventing their bankruptcy bringing further damage to the American economy. The Feds are making a wide range of loans to various size businesses which it doesn’t expect to get paid for. No one is making estimates on how extensive this will ultimately be to the American economy.

2) Although Saudi Arabia and Russia have reached an agreement on limiting oil production, it’s not yet known just how large those reductions are going to be, so oil prices had turned negative while awaiting details of OPEC+ cuts in oil production. The general consensus is each nation will cut production by 10 million barrels a day, but with world oil consumption way down because of the pandemic, it’s not certain if the OPEC+ cuts will have much effect, especially for U.S. domestic oil production (shale oil).

3) The Treasury Secretary Steven Mnuchin considers it may be possible for the U.S. to be open and back to business next month, considering it’s just a matter of medical considerations. The administration is doing everything possible for business to resume as soon as the ‘all clear’ is sounded and they have the necessary liquidity to operate. The president is forming a second taskforce charged with addressing the economic devastation which the virus has wrought and take measure to resume economic activity as soon as possible.

4) Stock market closings for – 9 APR 20:

Dow 23,719.37 up 285.80
Nasdaq 8,153.58 up 62.67
S&P 500 2,789.82 up 39.84

10 Year Yield: down at 0.73%

Oil: down at $23.19