1) Experts say it could take as much as a decade for America’s economy to fully recover from the coronavirus and the subsequent massive shutdown of businesses. Presently, it’s expected that the GDP (Gross Domestic Product) will decrease about 3% from 2020 to 2030 or about $7.9 trillion dollars. It’s expected that the measures to counter the virus, the business closures and social distancing measures, will reduce consumer spending, which in turn will cool the economy. With 41 million people now unemployed, more layoffs are expected for the next week with an unemployment rate of 19.6%. Furthermore, it’s expected that the coronavirus will cost the economic about $7.9 trillion dollars.
2) The reopening of America from the lockdown was going to be difficult enough, but now the growing violence of protest is threatening to hamper that recovery. Stores in the protest areas are closing for the protection of its employees such as CVS and Target, with doubts mounting if some of the stores will ever reopen. Mayor Lightfood of Chicago said the continuing violence is making the city reconsider the opening of Chicago’s businesses. Also, the wireless carriers T-Mobile has closed Metro and Sprint stores over the same consideration of possible violence.
3) China has stopped some imports of U.S. farm products such as soybeans and pork meat. This is the latest sign that the January phase one trade deal between the world’s two largest economies is unraveling. The halts come after President Trump’s criticism of China’s efforts to bring Hong Kong under the firm control of the communist. The president is threatening to strip Hong Kong of some of it’s special privileges, which in turn would make Hong Kong less valuable economically to China. Further aggravating U.S. and Chinese relations is the charges that China shares some responsibility for the Convid-19 pandemic.
4) Stock market closings for – 1 JUN 20:
Dow 25,475.02 up 91.91 Nasdaq 9,552.05 up 62.18 S&P 500 3,055.73 up 11.42
1) Avia Capital Services, a Russian aircraft leasing company, has filed a law suit against Boeing aircraft to cancel an order for 35 737 MAX jets. The law suit alleges that Boeing failed to disclose safety issues and therefore knowingly sold defective products. The company seeks $115 million dollars in compensation damages. Boeing had a $2.9 billion dollar loss for its second quarter, the biggest loss ever for Boeing.
2) An Oklahoma lawsuit against Johnson & Johnson for $572 million dollars over its marketing of opioid drugs will spur further trials and legal settlements. This ruling will shape negotiations with about 1,500 similar lawsuits across the country. Plaintiffs content that Johnson & Johnson failed to market the drugs responsibly and failed to stop suspicious orders from shipping.
3) Telecommunications provider Sprint announced the next phase of its 5G rollout adding the big cities of New York City, Phoenix and Washington DC to launch service starting 27 August. Atlanta, Chicago, Dallas, Houston and Kansas City already have Sprint’s 5G service, with Sprint saying they now have 2,100 square miles of 5G.
4) Stock market closings for – 27 AUG 19:
Dow 25,777.90 down 120.93 Nasdaq ,826.95 down 26.79 S&P 500 2,869.16 down 9.22
1) For the sixth straight month of a gold buying spree, China continues to add to it’s gold reserves under the protracted trade war. China added 58 tons of gold to its reserves in the five months to April, then added 15.86 tons in May. At this rate China could buy as much as 150 tons of gold in 2019, as they diversify away from the U.S. dollar.
2) The retailer giant Amazon has opened a second cashier-free store in New York, which makes the thirteenth ‘Amazon Go’ store to open in America. The convenience robot store is about 1,700 square feet with Amazon announcing its fourteenth store will open in San Francisco. By 2021, Amazon may open as many as 3,000 of these robot retailing stores which threaten other retailers like 7-Eleven shops, CVS and Walgreens.
3) Ten state attorney generals plan to jointly file a lawsuit to stop the merger of Sprint and T-Mobile. The $26 billion dollar merger will reduce the number of nationwide wireless carriers to three. So far, the deal has won the backing of the majority of the FCC, which makes the Federal Government in favor of the move.
4) Stock market closings for 11 JUN 19:
Dow 26,048.51 down 14.17 Nasdaq 7,822.57 down 0.60 S&P 500 2,885.72 down 1.01
1) Amazon announced it is shutting down its store in China, and instead will focus on cross boarder global sales to China. Amazon cited the high competition in China from local companies, with 80% coming from Alibaba, the giant Chinese online retailer.
2) The magazine National Enquirer is being sold for $100 million dollars, along with two sister publications to reduce the $355 million dollar debt of the holding company AMI. National Enquirer sales have dropped by half over the last four years.
3) Sprint, the wireless carrier, has revealed they are not as strong a performer as the public had been lead to believe. In a proposed merger with T-Mobile, Sprint had to make full disclosure with regulators, disclosing that many of their added new connections were actually free lines.
4) 18 APR 19 Stock market closings:
Dow 26,559.54 up 110.00 Nasdaq 7,998.06 up 1.98 S&P 500 2,905.03 up 4.58
It seems that two cell phone providers are seeking to merge in a global partnership. It has been noted that T-Mobile and Sprint are mergering to form a super cell phone network; which will then in place only bring about three top cell phone providers internationally.
The new company will be called T-Mobile. The deal is worth around $26.5 billion and values estimates the alliance to be worth around $150 billion after completion.
The merger can expect tough regulatory hearings on the formation of the partnership, especially by Chairman Ajit’s FCC, and select congressional committees.
Many analysts see the merger approving between 50%-60%, in passing regulatory approval. They also indicate the stakes are higher for Sprint then they are for T-Mobile, for regulatory approval. -SB