1) Fully 70% of the American economy is consumer spending. Even through wages and incomes have been stagnant for many households, the consumer has continued to spend. It is not new investment by corporations, tax cuts or big new federal spending programs that stimulate the economy, but rather it’s consumer spending. However, fears of the coronavirus is dampening that spending by curtailing business trips, personal travel, sports and other outings. With the interest rate near zero, the major tool used to combat a recession is now impotent.
2) The collapse of the long standing deal between Saudi Arabia and Russia, to limit oil production, fell through this weekend sending oil prices crashing from oil supplies surplus. The coronavirus has caused China to limit economic activity and therefore reduced China’s oil consumption leading to further oil surpluses. China’s purchase of oil is down 20%. The low oil prices has made the world economy very unstable and therefore volatile. For America, independent oil companies have gone deeply into debt to pay for the shale oil extraction process, who are now threaten by low oil prices making it impossible to pay that debt. Failure of these oil companies could ripple through the American economy to pull other segments down.
3) Airlines across the world continue to sink deeper into crisis from the worsening coronavirus epidemic reducing the number of passengers, who are foregoing travel fearing the virus. The situation is made worst by not being able to predict how long the crisis will likely last and therefore unable to make accommodating plans. The lockdown of Italy has further aggravated world air travel, especially with the interruption of tourism just as the tourist season would be ramping up.
4) Stock market closings for – 10 MAR 20
Dow 25,018.16 up 1,167.14 Nasdaq 8,344.25 up 393.577
1) The devastation that the coronavirus fears has wrought on Europe’s tourist industry is brought into glaring focus in front of the famous Mona Lisa painting in Paris. Where there would normally be a continuous surge of admiring people to view the art classic, now just vacant space. The same at St. Peter’s Basilica in Rome, the normally long lines of waiting people to get in, are also gone. The drop in tourism is costing the EU (European Union) $1.1 billion dollars a month, just when the high season is getting under way. Expectations are that it will only get worst as the year progresses.
2) General Motors is making an all out effort to dominate the EV (Electric Vehicle) market and in the process beat Tesla at its own game. GM has developed new battery modules called Ultium that is said to reduce the cost of batteries and therefore make more affordable EVs. Plans are to offer 20 new EVs by 2023, both in America and China, with marketing plans to sell one million electric cars in the next five years. However, the UAW is concerned that EVs will hurt the union because they require less manpower to assemble. Presently, GM holds over 3,000 patents on electric automobile design.
3) Seattle area school district has closed down its 33 schools of more than 23 thousand kids for up to two weeks due to the coronavirus threat. These students will use online teaching during this time through Google Apps for Education. Students needing a device or internet connection will be provided with one. Teaching staff have been provided with a one day instruction on using the apps and how to monitor the progress of their students. ATS (Automated Teaching Systems) has been on the cusp of revolutionizing American schools, and the coronavirus may provide the impetus to open the market to wide spread commercialization.
4) Stock market closings for – 5 MAR 20: The instability of the markets continue with wild swings of the trading indexes.
Dow 26,121.28 down 969.58 Nasdaq 8,738.60 down 279.49 S&P 500 3,023.94 down 106.18
1) The trade war continues to escalate as China takes action against American companies operating in China proper. China is levying fines on Ford’s joint venture for antitrust violations. Changan Ford Automobile Co. will be fined $23.6 million dollars for restricting retailers sale prices. Fed-Ex has recently come under Chinese scrutiny for ‘wrongful’ deliveries. China has threaten to blacklist foreign firms which damage domestic companies’ interests. Chinese citizens are being warned against travel to America, thereby restricting income from tourism and business reaching America.
2) The video game retailer GameStop, with over 5,700 retail outlets, is in decline, and was the place to go to buy video games and virtual reality products. But their sales have been in significant decline, with attempts to use e-commerce to counter the downward slide being of no help. Their forecast for next year show little improvement to its deteriorating business as their business migrates over to Amazon.
3) Bernie Sanders has made good his promise to take his fight for the common worker to Walmart’s annual stockholders meeting, to demand that Walmart workers be given a place on their board of directors. He introduced a shareholder proposal which would make roughly 1.5 million hourly workers eligible for board nominations. Sanders’ consider this move a way to separate himself and his policies from the democratic presidential nomination pack. Walmart is one of the huge American retailers pushing for new robotic technology to use in their stores.
4) Stock market closings for 5 JUN 19:
Dow 25,539.57 up 207.39 Nasdaq 7,575.48 up 48.36 S&P 500 2,826.15 up 22.88
Approx. 13 of the 18 casino’s operating in Puerto Rico are restored; after the devastation that rocked the US island that houses close to 4 million people. Department of Tourism in Puerto Rico, has indicated that cruise and hotel accommodations are nearly restored, insisting that cruises have started departing in and out of ports and harbors.
It’s highly interesting to say the least because more then 85% of the general populace in Puerto Rico is without power and electricity, so the tourism aspect of this revelation is somewhat surprising. Puerto Rico’s tourism accounts for more then $2 billion annually toward the island’s revenue, so at the same token if tourism can get up to speed in production, travelers may revel to tour Puerto Rico, as they have done before Hurricane Maria occured.-SB
The world has reacted to the death of Fidel Alejandro Castro Ruz.
Friday evening into Saturday, world leaders, people around the world, Cubans and Cuban Americans gave their own interpretations and reactions to the man who ruled Cuba for close to 50 years, Fidel Castro. -SB
Dominican Republic economic development is booming and the island/country has alot to be proud of in its economic accomplishments. Tourism has played a key factor in Dominican Republic’s emergence and dominance. The last couple years the island has seen a 7% percent increase in its GDP.
Dominican Republic’s GDP figures show an evasive increase in industries such as construction, tourism, hospitality, and banking. Revenue coming into Dominican Republic has topped $23 billion and much of that has to be accounted from foreign investors who are heavily pouring in capital to this progressive country.
Economic and financial hardships still plaque this diverse island, just like many other countries, such as economic and employment and less increases for wages for private employees and government employees, still Dominican Republic are making progresses by putting in place tools and structures to help everday dominicanos and dominicanas respectively. -SB