1) The electric car manufacturer Tesla has been getting significant revenues by selling credits to other car makers who need to offset sales of polluting vehicles. General Motors and Fiat-Chrysler disclosed that they have reached agreements to buy federal greenhouse gas credits from Tesla. These companies want to bank their green credits for use later when emission rules get tougher, especially if democrats regain the White House.
2) Bond yields are dropping at the fastest rate since th 2008 global financial crisis, in anticipation that the Federal reserve will cut interest rates to counter the fallout from the trade tensions. The two year Treasury yield has fallen for five straight days. This is likely to have damaging effects on business confidence as businesses become more concerned with future growth.
3) The U.S. Manufacturing Purchasing Managers’ Index fell by more than 2 points in May, the lowest level since September 2009, 6 points over the last year. This index reflects a drop in new orders or postponement of orders due to the uncertainty of the economic future. Manufactures are having to hold selling prices lower because of diminished sales, which in turn is squeezing profits.
4) 3 JUN 19 Stock market closings:
Dow 24,819.78 up 4.74 Nasdaq 7,333.02 down 120.13 S&P 500 2,744.45 down 7.61
We’rrreeeeeeee back new episode of the EFR Podcast with your hosts Businessman Bassey (Sammy BE) @Ecofiretv, James Lyman @ObsoletePeople (finally getting a twitter handle), and on the engineering boards Jon “The Don” Sterling @TheDramaBlock.
trio discussed the tax season in the U.S. of A, month of April, as well
as topics ranging from President Donald J. Trump’s tax returns,
American citizen having to pay taxes (or if you don’t want to, face the
penalty & consequences), @ YOUR OWN RISK, of course.
as topics, such as Herman Cain & Stephen Moore possibly being
nominated for the prestigious Federal Reserve Board; then both gentlemen
dropping out from the nomination process; and plenty of more economic,
financial and business discussion topics…..
President Donald J. Trump has chosen Mr. Jerome Powell to head the US Federal Reserve Bank.
Mr. Powell is a member of the Federal Reserve Board, born in Washington DC and educated at Princeton University, with a law degree from Georgetown University.
He is a Republican and has extensive experience working within the Federal Reserve system and in the private sector, in investment banking. He has tended to be more moderate in voting on Federal Reserve monetary policies, and since becoming a Federal Reserve Governor, he has voted on every monetary policy bill that has been accounted for.
Mr. Powell will replace US Fed Chairwoman Janet Yellen in February 2018, when her four year term expires. -SB
Mr. Steven Mnuchin was confirmed and sworn in as the new US Treasury Secretary Monday evening, February 13, 2017. Secretary Mnuchin who takes the helm of the Treasury Dept from his predecessor Mr. Jack Lew, was a former executive at Goldman Sach’s (which seems to be a prerequisite in attaining the Treasury post; past Goldman Sach alum who have garnered at the helm of Treasury have been people such as Robert Rubin, and Henry Paulson).
Secretary Mnuchin was also a Hollywood financier in the past, helping to assist in financing big blockbuster movies; as well as taking conservatorship of IndyMac, turning the loan entity, which happened to go bankrupt into a profit, before selling it for billions. -SB
President Elect’s Donald Trump’s Treasury Secretary nominee, Mr. Steven Mnuchin was on the HILL today, being grilled by senators, on his various role(s) in US housing forecloseres, off shore investments, and banking regulations. Mr. Mnuchin is seeking to be the new Trump’s Treasury Secretary, and such is the case for candidates for any US secretary position, Mr. Mnuchin took the mound on Capitol Hill (Capital Hill), no pun intended.
Mnuchin answered questions on his numerous roles in housing foreclosures, banking investment and regulations; and how he managed to be appropriated upon all these different type of managerial skill sets, one may add? He answered all questions by senators and gave his opinion on what his duties as Treasury Secretary; under a Trump Administration would entail. -SB
P.s. Donald J. Trump gets inaugurated as the 45th US President on January 20, 2017 at around noon 12pm est.
The Federal Reserve has raised important interest rates because the US economy has increased drastically. This is the second time the FED has raised interest rate benchmarks since 2008. The Fed indicated that next year in 2017, the interest rate will raise again also.
The benchmark had been 0.50%, now with the recent increase the benchmark will be 0.75%. When it comes to low rates, it helps the economy because it provides an environment for growth economically . This in turns allows businesses to borrow to finance deals, products, services, expansion, and leads toward enabling their businesses to take risk in growing their enterprises.
The interest rate being raised was on par to what many analysts and economists predicted, the economy improving as it is these days made sense for the interest rate to increase according to many experts. -SB