1) Tomato prices could raise 40% from U.S. withdrawing from trade pact with Mexico, called the Tomato Suspension Agreement which expires this Tuesday. This will trigger duties of more than 17% on tomatoes coming from Mexico. Tomatoes from Mexico are selling below domestic production cost.
2) The Dow Jones slid down 648 points, before rising to 473 points on closing, over news that America will impose higher tariffs on Chinese goods late this week. The Nasdaq and S&P 500 also experienced similar significant drops over fears of a full blown trade war with a down turn in global growth and a drop in China’s GDP.
3) Analyst say that a breakdown in the semiconductor field is a warning sign that a trade war with China is coming. This industry is more sensitive to U.S. – Chinese trade tensions. Watch the Philadelphia Semiconductors SOX index, for if the index falls below about the 1,430 level, that indicates trouble.
4) 7 MAY 19 Stock market closings:
Dow 25,965.09 down 473.39 Nasdaq 7,963.76 down 159.53 S&P 500 2,884.05 down 48.42
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
New article posted below, titled “Recession Worries?”
1) China-United States APEC summit ends without a joint statement, a result of US-China tensions. US warns other Asian nations about investing in Chinese infrastructure, specifically China’s ‘Belt and Road’ project, and becoming overwhelmed with debt.
2) Survival of four major retailers may be determined by sales this Christmas season. Sears, JC Penny and Barnes & Noble, and while Toys-‘R’-Us has already closed all its stores, it is trying to capitalize on its name brand.
3) The volatile stock markets give fears among older retirees of a possible crash, resulting in lost of their savings. The baby boomer’s savings have not recovered from the 2008 crash.
4) 19 NOV 18 Stock market closings: Stock market dragged down by major losses of five large technology companies.
Dow 25,017.44 down 395.78
Nasdaq 7,028.48 down 219.40
S&P 500 2,690.73 down 45.54
1) Because of the trade war, General Motor’s third quarter sales in China has dropped.
2) China Markets continue to drop, in part, because China has allowed its banks to reduce their cash reserves in order to inject cash into China’s economy, over worries about China’s economy.
3) UN releases report warning of dire consequences by 2040 from global warming. They warn of increases in world water levels, storms and drops in food production if CO2 levels continue to increase. Revolutionary changes by the industrial countries are required to lower carbon output, which in turn means monumental changes to economies with their energy, transportation and food production.
4) 8 OCT 18 Stock market closings:
Dow 26,486.78 up 39.73
Nasdaq 7,735.95 down 52.50
S&P 500 2,884.43 down 1.14
New posted article below titled “SIRIUS XM TO BUY PANDORA”
1) Today, consumers are in better shape with their debt. Current policy suggests further near-term improvement, but at a price. Increasing the federal debt risk precipitating a new crisis.
2) The China tariffs could hit U.S. consumers with such products as computers, furniture, seats, lamps, luggage, agricultural and food products, vacuum cleaners, cooking appliances and refrigerators among other products.
3) At the start of the trade war, China looked tough on trade, but now its options appear to be dwindling.
4) 25 SEP 18 Stock market closings:
Dow 26,492.21 down 69.84
Nasdaq 8,007.47 up 14.22
S&P 500 2,915.56 down 3.81
1) The Bank of Japan is holding steady amid economic uncertainty, signaling confidence in Japan’s future economy.
2) China announced it will not devalue its currency to boost its exports. Analysis forecast China’s GPD dropping this next year.
3) Janet Yellen suggested the Fed should act ahead of the next recession, by keeping interest rates low until the next downturn is fully offset. This is a significant change from how monetary policy is currently conducted.
4) 19 SEP 18 Stock market closings:
Dow 26,405.76 up 158.80
Nasdaq 7,950.04 down 6.07
S&P 500 2,907.95 up 3.64
1) A glitch in Uber’s system is keeping their drivers from getting paid immediately. This leaves drivers with the problem of paying for gas to operate their Uber service.
2) Trade war with China threatens to expand with new tariffs. China promises to match President Trump’s $200 billion tariffs, just as they did with the initial $50 billion. Their strategy in the trade war is to match each move by the US in kind.
3) Estimates have started coming in for the losses from Hurricane Florence, of $22 billion dollars. The damage is a result of the extensive flooding, which is extending 250 miles inland. The flooding continues, so these estimates may well creep up.
4) 17 SEP 18 Stock market closings: Closings down because of the threats from China-American trade war.
Dow 26,062.12 down 92.55
Nasdaq 7,895.79 down 114.25
S&P 500 2,888.80 down 16.18
New article posted below titled “The Jobs for the Young – Going, Going – Gone!”
1) The crypto currency Bitcom down 20% in 2 days amid legitimacy crisis. With no real material wealth behind these electronic currencies, this is a problem that continually plagues the crypto currencies.
2) Walmart has ordered an additional 12 all electric semi-trucks to go with its initial order of 30 trucks. Despite running on batteries, these trucks are reported to have a range of 500 miles.
3) The economy added 201,000 new jobs in August while the unemployment rate remained at 3.9%. Wage growth accelerated with a 2.9% growth. It’s expected that the Federal Reserve will increase the interest rate two more times this year to check inflation as the economic boom continues.
4) 7 SEP 18 Stock market closings:
Dow 25,916.54 down 79.33
Nasdaq 7,902.54 down 20.18
S&P 500 2,871.68 down 6.37
New article posted below titled “CHINA LOOKING TO REFORM AFTER GROWING TIT 4 TAT WITH U.S.”
1) Africa is presently experiencing a sever infestation of Army Worm, which is posing a serious food problem. This is effecting the food supply of about 300 million Africans by infesting 20 to 50% of the corn crops. Africa has experienced a 28% decline in their corn harvest.
2) International manufacturing is slowing down amid heighten trade tensions. Britain is further effected by questions of Brexit to content with.
3) High gas prices put a damper on the holiday with 35 million Americans driving 50 miles or less. Gas prices are the highest Labor day prices in 4 years. Average national gas price is $2.83 per gallon.