1) Peloton, the exercise machine maker, has recalled pedals on 27,000 of their bikes which have caused some injuries. The 27,000 bikes were manufactured between July 2013 and May 2016. The company has received 120 reports of the pedals breaking resulting in 16 injuries to users, with 5 people requiring medical care including stitches. Peloton is one of the few companies who have benefitted from the coronavirus crisis because with people staying at home for long periods, they are purchasing home exercise machines. Their stock is up 380% a year to date, while their fitness subscribers is up 113% from a year ago.
2) The investment firm BlackRock considers China’s domestic bond market to be a good investment, offering a level of returns that may be difficult to find elsewhere in the current world economy. Economic data and continued monetary policy support, point to a sustained economic recovery, with foreign investors remaining under-invested in Chinese bonds. These investors account for only about 2% of the $16 trillion dollar market. Using diversified and resilient portfolio allows investors to avoid being exposed to risk specific for a company or sector. While there are some troubling signs, such as China Evergrande Group seeking government help in meeting its debt, looking across the whole spectrum, a fairly diversified portfolio can be built to yield a reasonable income.
3) General Motors will start operating robot cars in San Francisco without any human backups in the cars by the end of this year. The company Cruise has received a permit from California’s Department of Motor Vehicles to allow them to operate robot cars, without humans, on public highways. Other companies have gotten permits for autonomous automobile operation without humans, including Waymo, but none have set a date for autonomous ride-hailing services. Cruise will start ride-hailing service first in the surround neighborhoods, one at a time, slowly working their way into the heart of San Francisco with it’s dense traffic challenges. Progress towards fully autonomous ride-hailing services was retarded in 2018 when an Uber autonomous test car ran down a pedestrian in Temple Arizona.
4) Stock market closings for – 15 OCT 20:
Dow 28,494.20 down 19.80 Nasdaq 11,713.87 down 54.86 S&P 500 3,483.34 down 5.33
1) The airline industry is one of the hardest hit segments of the economy from the pandemic, with an estimated 36% drop in traffic this year. But the International Air Transport Association is warning that it could worsen with a 53% drop if boarder curbs on emerging market countries and the U.S. remain in place. The U.S. – EU (European Union) air travel market generates $29 billion dollars a year is threaten by the ban on non essential flights from the U.S. as the EU attempts to avoid an resurgence of the virus. Air travel was down over 90% for April and May, with little prospects for improvement in the near future, leaving the future of air carriers in doubt too.
2) The maker of electric automobiles Tesla has become the world’s most valuable automaker, surpassing Toyota’s for the first time on record. Tesla’s valuation is roughly $206.5 billion dollars compared with Toyota’s valuation of about $202 billion dollars. This underscores the vast investor enthusiasm for the automaker, which has yet to turn a profit on an annual basis. While it’s valuation exceeds Toyota, its car production of 103,000 cars lags far behind Toyota’s production of 2.4 million vehicles. The valuation comes from the stock in the company, with investors piling money in since there aren’t any other electric vehicles investments available, with Tesla stock soaring to $1,135 per share.
3) Electricity bills are set to surge this summer because of millions of Americans sheltering in place. This added demand will mean higher electricity costs for months to come. This will mean an additional $30 to $40 per month on electric bills in cities like New York and Philadelphia. Increases are anticipated to be highest for the northeast area of the country, decreasing when going westward. This comes when people’s finances are already stretched tight because of the coronavirus crisis.
4) Stock market closings for – 1 JUL 20:
Dow 25,734.97 down 77.91 Nasdaq 10,154.63 up 95.86 S&P 500 3,115.86 up 15.57
Facebook launched a photo sharing app in the beginning of 2017. The social media giant wants to get in Asia’s biggest population.
Facebook, Twitter, Youtube, have been censored and/or blocked in China because the Chinese government believes these social media platforms can create disturbances, which can then lead to jeopardizing Chinese national security.
The app that Facebook created along with Youge Internet Technology, a Chinese based internet tech company; is called Colorful Balloons.
Initially, news of the Facebook developing “Colorful Balloons” media app in China, the story was released first by the New York Times (Friday, August 11, 2017). -SB