25 July 2019

1) Boeing Aircraft, the manufacture of the now grounded 737 MAX, has not ruled out further reductions or even shutting down production of its 737 MAX. Boeing had cut production of its best selling jet from 52 per month to 42, a 20% reduction. For its second quarter, Boeing has expended $1.01 billion dollars in cash as a result of the grounding, compared to the $4.3 billion dollars of free cash it had on hand last year. With deliveries on hold, Boeing isn’t receiving payments while also footing the cost of aircraft being stored waiting for re-certification.

2) With the commodity prices of coffee bottomed out and depressed incomes, coffee growers in Guatemala are facing a crisis. This crisis is made worse with threats of tariffs on Guatemala over undocumented migrants. Additional remittance fees and sanctions could spell disaster for Guatemala’s principle export if implemented, which in turn may actually exacerbate the flow of migration as small growers are forced out of business and head north.

3) The food giant Kraft Heinz, faced with a large corporate debt, has been exploring methods to pay down that debt by selling off some of its brands, so it can focus on its staple brands such as Heinz ketchup. But the sale of Maxwell House coffee, Breakstone’s sour cream and cottage cheese and Plasmon baby food, has glean lukewarm response from potential buyers. For years, the giant has been run by a ‘cost focused’ management team, but now management considers the company should be driven more by growth. The soup giant Campbell soup faced the same problems earlier this year.

4) Stock market closings for – 24 JUL 19:

Dow              27,269.97    down    79.22
Nasdaq           8,321.50          up    70.10
S&P 500          3,019.56          up    14.09

10 Year Yield:    down   at    2.05%

Oil:    up   at    $55.94

2 May 2019

1) Wall Street is expecting another surge upwards of the markets, which they are terming a ‘melt up’ and analysts are recommending call options contracts which pay off in a move higher. Call option contracts give the investor the option to buy in at an agree price, but are not obligated to buy.

2) Pork prices are expected to jump this year because African swine fever is ravaging the hog population of China, a big consumer of pork. Because there still isn’t any containment of the disease, analysts estimate it will be at least twenty months of elevated pork prices. Non-domestic pork demand will continue into 2020 at a minimum.

3) With U.S. crude stockpiles rising, traders are fearing oil prices will slide despite bullish forces traditionally pushing oil prices up. The tightening sanctions on Iran, the unstable state of Venezuela and OPEC’s desired to reduce production, are all forces that push oil prices up, but U.S. domestic production and rising stockpiles may counter these forces.

4) 1 MAY 19 Stock market closings:

Dow              26,430.14    down    162.77
Nasdaq           8,049.64    down      45.75
S&P 500          2,923.73    down      22.10

10 Year Yield:     up   at   2.51%

Oil:    up   at    $63.62

17 April 2019

1) The Russian company Rusal plans to build an up-to-date $200 million dollar aluminum rolling mill in Kentucky, which they intend to start construction of after sanctions have been lifted. The mill will provide about 1,500 jobs and is expected to open in 2021.

2) Gasoline prices are quickly rising to the three dollar a gallon mark, even four dollars for parts of California. This rise in price is attributed to several different factors, such as problems with loss of refinery capacity, reduced production from OPEC, higher domestic consumption, flooding reducing grain production for ethanol and sanctions on oil exporting countries.

3) Donations are already coming in to restore Notre Dame less than twenty-four hours after the fire. So far, several billionaires have contributed $700 million dollars to restore the 850 year old church. No doubt, the restoration will require substantially more money and will probably take decades to accomplish.

4) 16 APR 19 Stock market closings:

Dow            26,452.66    up    67.89
Nasdaq         8,000.22    up    24.21
S&P 500        2,907.06    up      1.48

10 Year Yield:    up   at    2.59%

Oil:    up   at    $64.29

Energy Decline Having An Lasting Effect On European Stocks

By: Economic & Finance Report

Financial market losses on Friday, sent currencies in Russia and Norway to fresh multiyear lows. Defining concrete losses to European equity indexes.

l

The Stoxx Europe 600 index closed the session down 2.5 per cent, with the European subindex of oil and gas companies falling 3.6 per cent.

London’s FTSE 100, which has a very high exposure to the oil and gas sector, declined 2.5 per cent and notched up its biggest weekly loss in around two years. Howevr the DAX in Frankfurt dropping 2.7 per cent and the CAC-40 in Paris ending down 2.8 per cent. In the U.S., the S&P 500 dropped more than 1 per cent in late European trade.

The European central bank indicated a need to sell off the euro against the dollar and British pound…