1) Retail giant Walmart reported a strong second quarter and raised its earnings expectations for the year. This news eases concerns about consumer demand dropping because of the trade war with China. Shoppers spent more at stores and websites, indicating the consumer economy has not lost steam. Walmart posted a 20 quarter or five years of growth unmatched by any other retailer. The retailer gets 56% of its revenues from grocery sales, so it is less vulnerable to tariffs.
2) In July, American’s spent more at retail stores and restaurants, indicating the economic growth remains healthy, despite fears of a coming global economic slowdown and possible recession. Despite such fears, consumer confidence remains steady. Most economists are not forecasting a recession, because consumer spending and the job market remains strong.
3) Saudi Arabia is ramping up its oil exports to China, with crude shipments doubled over the last year, while its oil exports to America have dropped by nearly two thirds. This shift has occurred in part from oil embargo on Iran, which has caused Asian importers to shift away from Iran to other sources, aided by U.S. growing independence of any oil imports. The U.S. is becoming the worlds largest producer of oil.
4) Stock market closings for – 15 AUG 19:
Dow 25,579.39 up 99.97 Nasdaq 7,766.62 down 7.32 S&P 500 2,847.60 up 7.00
1) Tensions increase in U.S. – China trade war with increasing fears that the war could be long and painful. In response to China’s new tariffs on $60 billion dollars President Trump is threatening to impose additional tariffs on $300 billion dollars worth of imports. While just a couple of weeks ago, it seemed that China and America were close to reaching an agreement, now it seems both sides have dug in their heels.
2) One military contractor is reportedly making 9,400% profit on a replacement part, a half-inch drive pin. This part should have cost $46 but the government is being charged $4,361 each. Legislation is being considered that would give contracting officers the power to demand data that would back-up billings.
3) Tensions are increasing in the middle east with Saudi Arabia claims of a terrorist drone attacks on pipeline pumping stations. The reports caused a surged in oil prices with fears of possible oil shortages if attacks on Saudi’s oil production continue.
4) 14 MAY 19 Stock market closings:
Dow 25,532.05 up 207.06 Nasdaq 7,734.49 up 87.47 S&P 500 2,834.41 up 22.54
1) Ghawar, the biggest Saudi oil field is declining faster than was generally accepted by the world oil market. Oil production and reserves have been a state secret for more than forty years, but in a just released prospectus, Saudi Arabia open it’s books to reveal that their largest oil field has a maximum production three quarters what was assumed. Still, the Saudis claim they are able to pump oil at the maximum capacity of 12 million barrels a day, enough for another 52 years.
2) Signet Jewelers plans to close more than 150 of its stores in the fiscal year 2020. This is part of their plan to turn around the company and includes stores from Kay, Zales and Jared. Signet based their decision on a decline of mall foot traffic and increasing promotions required to get sales. They expect sales to drop 2.5% next year.
3) As the dollar weakens, gold has shown little change. Some claim gold prices reveal the true state of US economic health. When high, the economy is not healthy, while when low, it is healthy. People invest in gold as a hedge, a heaven or as a direct investment. The price of gold is more than just supply or demand since gold production is just a small fraction of the world gold supply.
4) 3 APR 19 Stock market closings:
Dow 26,218.13 up 39.00 Nasdaq 7,895.55 up 46.86 S&P 500 2,873.40 up 6.16
1) Saudi Arabia has invested $20 billion dollars in Pakistan, including $10 billion dollars for an oil refinery.
2) Seven members of the British parliament have resigned over Brexit. They couldn’t abide the labor parties movement towards the left with anti-semitism and racism.
3) A Spanish warship tried to intimidate a British civilian ship to exit the waters around Gibralter to assert Spain’s sovereignty claim over the British territory of 300 years. With Britain exiting the European Union (Brexit), Spain is renewing its efforts to reclaim the territory.
4) 18 FEB 19 Stock market closings:
Dow 25,883.25 up 443.86 Nasdaq 7,472.41 up 45.45 S&P 500 2,775.60 up 29.87
Wrap up of 2018 episode, Sammy BE (Bizman Bassey), James Lyman &
on the boards, magic Jon Don Sterling. The trio discussed topics and
issues ranging from economy, business, trade, and a little politics, for
the year of 2018.
Sammy and James spoke on the trade policies
with China, the new USMCA Trade Agreement between USA, Mexico, &
Canada (replacing of NAFTA). Problems that may have handicapped General
Motors (GM); Saudi Arabia policy & reporter death of Jamal
Khashoggi. The gentlemen ended of the 2018 year speaking of the
improving US economy (GDP) and the new Congress (Democratic House,
Republican led Senate), that will be entering in January 2019.
This a mouthful that you don’t want to miss, ending of 2018 wrap up episode…. Happy New Year… See You In 2019
Aramco, Saudi Arabia’s state owned oil corporation is valued over a cool $2 trillion dollars net. Saudi Arabia is selling a stake of the oil giant, somewhere less then 5% according to analysts. The company will be transferred into a holding company as well, which will have a board that would be elected to monitor the business dealing of Aramco and its subsidiaries.
The Saudi government plans to institute a $2 trillion wealth fund that will diversify the Saudi economy and have the entity to be less dependent on oil and crude products. The Saudi government wants to move away from being too reliant on oil and crude since the depletion of oil prices within the past year. -SB
Saudi Arabia has been shortening its dependence on crude prices, even though they have been increasing the production of oil. Saudi Arabia’s budget for next year adheres to 70% of crude revenue.
The Saudi Arabia budget is the first budget in approximately a decade in which oil prices are less then $50/barrel. The truth of the matter is that the Saudi government is ready to face the reality of a declining of oil revenue an d so they have formatted their budget to be indicative of this. -SB
Aramco state oil firm will be seperated from Saudi Arabia’s petroleum ministry, and will be provided as a separate entity. The Saudi Arabian king King Salman promoted Aramco CEO as the new Chairman of Aramco as well as Saudi Arabia’s health minister.
It has been speculated that the King’s son will be in charge of state oil giant Aramco, pretty soon…-SB
Opec has indicated that the demand for oil will rise the latter year of 2015. This is indication by Opec is noted because they stated that they are winning the war on oil prices. Opec has been targeting the United States in oil prices as US oil shale producers have been succeeding driving the prices of oil downward. Opec believes this will eventually change in the coming months, as many shale producers are deteriorating and going out of business, because of limited production.
The shale production in the US has levied Saudi Arabia from becoming the U.S. partner to eventually becoming the United States main competitor. In 2015 the majority of oil growth seems to be coming from Asia, countries such as China, Indonesia, Malaysia, Philippines and Thailand seem to be leading the way in oil demand…-SB