22 June 2020

1) Oil has passed$40 a barrel, continuing a slow but steady recovery. This could be signaling a reawakening of the U.S. shale oil production. This rally allows the oil industry some breathing room with its high debt burden as the shale oil industry seeks to rebuild after the worst price collapse in a generation. This is far different than earlier this year when oil producers were paying to have their oil taken away. OPEC+ continues efforts to re-balance the global oil market, now abundantly clear that everyone loses in a price war.

2) More encouraging economic news with Ford Motor and Fiat Chrysler returning to pre-coronavirus pandemic production schedules in their American plants. Ford plans to fully return to production levels by July 6 while also ramping up their production facilities in Mexico. Although not given any firm dates, Fiat Chrysler is also returning to former production levels as rapidly as possible.

3) Experts are predicting the restaurant business, as we know it, is coming to an end because of the Convid-19 crisis. The industry generates $900 billion dollars a year, employs 15 million people, which is 15 times more than the airline business, which many are so concerned about now. Estimates vary widely of 20 to 80% of the privately own restaurants succumbing to the pandemic. The big franchise restaurant chains are expected to mostly survive and continue, but the independents are expected to fade out. One factor is change, which is coming too fast for small operations to adapt and keep pace with. The general consensus is that the business was in trouble long before the pandemic, struggling with poor working conditions, very thin profit margins, low wages and increasing competition. But it’s not just the restaurants themselves, for behind them is farming, distribution, suppliers and commercial real estate. It’s apparent that the demise of a significant number of independent restaurants will spell a significant change to the American business environment.

4) Stock market closings for – 19 JUN 20:

Dow 25,871.46 down 208.64
Nasdaq 9,946.12 up 3.07
S&P 500 3,097.74 down 17.60

10 Year Yield: unchanged 0.70%

Oil: up at $39.43

NIGERIA STOCKS PRESENTED 12% RETURNS… LARGEST % PCT IN GLOBAL INDICES FOR 2017

By: Economic & Finance Report

It seems that Nigeria has been on a roll this year, as far as stock indexes are concerned. Nigerian stocks returned 12% to investors in 2017. The largest percent ratio in global stock indices for 2017.

Nigeria recently got out of an economic recession, a recession  that has not occurred in the country in the last twenty five years, so for stocks to be hitting record highs while also climbing out of a recession is a plausible feat.

2018 has begun, so will Nigeria markets continue to flourish? This may be the beginning. -SB

TESLA BUYS SOLAR CITY… LARGEST CLEAN POWER ACQUISITION IN USA HISTORY!!!!!!

solar city-tesla

By:  Economic & Finance Report

Tesla Motors purchased Solar City for $2.6 billion dollars. This initially means that there will be combination with the electric car maker and the solar model company, as they fuse their companies together respectfully. Many people believe with many questions if the effort to pair the two companies was a sound decision.

Solar City shares have been declining lately and many believe Musk wanted to save the company from it own ruins, so in order to do this was a buyout situation in which Tesla would buy Solar City and combine the two entities together.  As for if this was a wise decision by CEO Elon Musk, only time will tell about this merger. -SB

AS THE NEW YEAR 2015 BEGINS…. ENERGY STOCKS MAY CONTINUE EROSION….

By: Economic & Finance ReportENERGY PIC

As the new year begins in 2015 many energy investors are seeking to seethe, especially wondering if the energy stock sector will improve??? It has been a tumultuous roller coaster for  energy stocks in particular. The price of oil increasingly declining brought about low production of oil and energy resources in 2014. Will it differ in 2015???

Insiders believe bigger energy/production companies will  be over leveraged, thus taking out the smaller players (energy/oil companies), also bringing about more partnerships and alliances; along with more mergers and acquisitions definitely could be in play for 2015. The lack of gains in the sector has affected smaller companies already and bigger energy companies also. 

-SB