11 December 2019

1) Analyst say Netflix, the video streaming service, must lower its prices in 2020 to avoid lost of millions of its U.S. customers because of the rising competition. It is suggested that Netflix must add a second lower priced service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock, otherwise they risk losing four million U.S. subscribers. Since Netflix’s balance sheet cannot withstand lower revenues, the company must create a pricing tier that has lower monthly cost, but still support advertising revenue.

2) Mortgage lenders are warned to brace for a downturn, with Fannie Mae and Freddie Mac pulling back on some mortgages meant to make home ownership more affordable. They are reducing the proportion of loans they back to borrowers with small down payments. This tamping down on risk is to limit their defaults thereby producing greater profits.

3) Morgan Stanley, the investment bank giant, is cutting about 1,500 jobs globally in a year end push for efficiency. The cuts are more in the technology and operations divisions, but include executives in sales, trading and research operations including several managing directors. These reductions amount to about 2% of the firm’s workforce with a charge between $150 to $200 million dollars in its fourth quarter.

4) Stock market closings for – 10 DEC 19:

Dow            27,881.72    down    27.88
Nasdaq         8,616.18    down      5.64
S&P 500        3,132.52    down      3.44

10 Year Yield:    unchanged   at    1.83%

Oil:    up   at    $59.09

28 October 2019

1) The telecommunications giant AT&T is making its belated entry into the streaming video business to compete with Netflix, Apple and Disney. AT&T plans to reach about 80 million subscribers globally, 50 million in the United States by 2025. HBO Max is expanding its customer base into the streaming market through AT&T wireless. AT&T also owns the satellite service DirecTV.

2) The UAW (United Auto Workers) has approved a new contract with GM (General Motors) which ends the six week strike. GM is calling back technicians to prepare the plants to resume production, with production resuming as early as Monday at some plants. The new contract gives workers a series of wage increases and a path for temporary workers to become permanent employees. Permanent workers can earn as much as $32 an hour.

3) The U.S. government has ended its 2019 fiscal year with the largest deficit since 2012. Gains in tax receipts were offset by higher spending and growing debt service payments. The budget deficit has widened to $984 billion dollars, which was 4.6% of the nation’s gross domestic product. Last years deficit was $779 billion dollars and 3.8% of the GDP. Defense, healthcare and social security programs are a major source for driving the deficit, with worries that these expenditures will not be sustainable.

4) Stock market closings for – 25 OCT 19:

Dow             26,958.06    up    152.53
Nasdaq          8,243.12    up      57.32
S&P 500         3,022.55    up      12.26

10 Year Yield:    up   at    1.80%

Oil:    up   at   $56.63

MOBILE DEVICES & THE INTERNET: HUGE DRIVING FORCES IN AFRICA’S GROWTH

Africa mobile

By: Economic & Finance Report

The mobile industry has committed billions of dollars in the growth and expansion of Sub Saharan Africa. A new GSMA report indicated the “US$102 billion economic contribution in 2014 was equivalent to 5.7 per cent of the region’s GDP.” By 2020 the mobile industry is expected to contribute over $166 billion throughout the continent.

In 2014 Africa surpassed Latin America, as the #3 largest mobile subscriber market, after Europe and Asia. On the continent by the end of 2015 there will be over 385 million subscribers. The increasing revelation of broadband has expanded subscriberships and usage within the diverse continent. By 2020 Africa’s subscriberships within mobile devices, will be over 540 million, as indicated by telecom analysts. -SB

AT&T BEAT EXPECTATIONS & SHARES RISE BECAUSE OF RESULTS!!!!!!

at&t pic

By:  Economic & Finance Report

AT&T beat analysts expectations Wednesday, when their reported company earnings came out, beating analysts expectations of $.62 cents a share. Revenue from the company came in at $32.57 billion. It seems that the first quarter for AT&T was a productive year for the telecom giant, and its subsidiaries.

AT&T is the #2  wireless carrier and they are gearing up for their acquisition in DirecTv. The acquisition is supposed to be completed by the second quarter of 2015, if all goes well by federal regulators and federal proceedings. AT&T has already acquired NII Holdings in January 2015,  parent company of Nextel Mexico for a reported $1.88 billion dollars. The deal is to give AT&T an extra three million subscribers in Mexico terrain. -SB