15 March 2019

1) GE (General Electric) paid $1.5 billion dollars civil penalty for sub-prime house loans prior to 2007, to resolve claims over residential mortgage loans made by their WMC Mortgage unit, a company purchased by GE during the boom prior to the economic collapse in 2008. Their lending activities concealed the poor quality of the loans being made.

2) The Chevron oil company is buying the Anadarko Petroleum Corporation for $33 billion dollars which will put Chevron Corporation in the top ranks of energy companies. Chevron will be the third largest oil producer behind Exxon and Shell.

3) The GE20 group announced the global economy is slowing down faster than was expected, with an anticipated global growth of 3.3% for this next year. This is the lowest expansion since 2016, which may become worst if US-China trade tensions should increase.

4) 12 APR 19 Stock market closings: JP Morgan-Chase and Disney pushed stocks up.

Dow             26,412.30    up    269.25
Nasdaq          7,984.16    up      36.80
S&P 500         2,907.41    up      19.09

10 Year Yield:    up   at    2.56%

Oil:    down   at    $63.76

5 March 2019

1) Shale oil companies are adding even more new wells, but that is threatening the future of the US oil boom. Their strategy of drilling more wells chose to old wells has backfired because the new wells not only have lower outputs than the old wells, but the production of the old wells also declines.

2) Again, there are reports that the US-China trade talks are still progressing well and soon may end with an agreement to end the trade war tariffs.

3) 4 MAR 19   Stock market closings:

Dow             25,819.65    down    206.67
Nasdaq          7,577.57    down      17.79
S&P 500         2,792.81    down      10.88

10 Year Yield:    down   at    2.72%

Oil:    down   at    $56.45

28 February 2019

New article posted below titled, “NIGERIADECIDES: BABA MUHAMMADU BUHARI REELECTED AS NIGERIA’S PREZ.”

1) The takeover of Time Warner by AT&T, an $81 billion dollar acquisition, has been cleared by the US Appeals Court. This acquisition will bring Warner Brothers, HBO and Turner to AT&T’s video, mobile and broadband services.

2) US farm debt soars to levels that haven’t been seen since the 1980’s farm crisis. The debt has risen from $385 billion dollars to $409 billion dollars which indicates a high strain on the US farm belt, a result of commodity prices, storm damage and loss of key exports principally China. The present day situation is similar to 1980’s financial collapse of American farms.

3) China-US are making real progress in trade talks, but the talks are far from being completed. US is taking a tougher stand by insisting on an all or nothing agreement.

4) 27 FEB 19     Stock market closings:

Dow               25,985.16     down    72.82
Nasdaq            7,554.51          up       5.21
S&P 500           2,792.38     down       1.52

10 Year Yield:    up   at    2.69%

Oil:    up   at    $56.96

25 February 2019

1) Germany’s business outlook falters amid Brexit concerns of potential US tariffs, especially on their car exports in addition to uncertainty of the German people. Germany has the largest European economy.

2) The father of Reaganomics says it’s time to get out of the market. He cautions that the end of easy money policies, the huge deficit and a near record economic expansion are all signs of a pending market collapse.

3) Trade talks continue between China and US as tariff deadline nears causing worries of talks failing. But after meeting with his advisers and Chinese officials, President Trump has extended that deadline citing the talks are going so well. Negotiators have reached a compromise on key issues, such as China’s requirement that American companies give intellectual property and technology to do business in China, more purchases of agriculture and energy products such as liquid natural gas. But so far, there hasn’t been a signing of an official agreement.

4) 22 FEB 19 Stock market closing:

 Dow               26,031.81    up    181.18
Nasdaq             7,527.54    up      67.84
S&P 500            2,792.67    up      17.79

10 Year Yield:     down    at    2.66%

Oil: down    at    $57.07

US SUPREME COURT WILL HEAR CASE ON INSIDER TRADING!!!!!

us-supreme-court

By: Economic & Finance Report

 The US Supreme Court in the first week of October, will be hearing an important case on insider trading. The case is important because it will limit prosecutors setting out on litigation against hedge fund managers and their hedge funds.

The case that the justices will hear is one of Bassam Salman, an Illinois investor who  accumulated $1.2 million dollars from inside trading, because his brother in law had insider trading information on Citigroup Inc clients.  Salmon’s brother worked for the Citigroup as well.

In over 20 years the Supreme Court has never once decided an insider trading case, most times cases were handled in lower courts and were defined by the SEC to pursue litigation. This case is one of its kind for the financial regulatory body.

It is noted that the outcome and decision of this particular case could have an enormous effect in the investment and trading community; and better be sure the financial watch dogs will be monitoring the outcome of this definitive case. -SB

US FED RESERVE PLANNING INTEREST RATE HIKE IN SEPTEMBER!!!!!!!!!!!!

federal-reserve pic

By: Economic & Finance Report

US Federal Reserve may be raising interest rates as early as  the first week of September. The Federal Reserve just completed their annual retreat in Jackson Hole, Wyoming.  The interest rate  hike coming, has seen a surge of the dollar against it’s Asian market counterparts.

The Financial sector has been the leading sector leading  the stock market, and  probability of an interest rate hike sooner then later, seems to be paramount. This seems to have a very formal effect on how the 3rd quarter will develop. Stocks have been rebounding and gaining in the last couple of weeks, because of a possibility of a interest rate hike, and it certainly seems to be heading in that direction… -SB

 

CHINA’S INSTITUTIONAL INVESTORS ARE FOCUSED ON GLOBAL REAL ESTATE INVESTMENTS!!!!!!!

Chinese real estate investments

By: Economic & Finance Report

China’s institutional buyers are closely intertwined in global real estate markets. China’s investors have long been focused on long term investments, particularly in real estate assets.  China’s largest real estate investor CIC (China Investment Corporation) has been investing in large real estate assets since 2013. They poured in over 5 billion dollars in financing real estate purchases.

China collectively has spent over $300 billion on real estate in the US. In 2015 Chinese investors surpassed Canadian investors for the very first time, in purchasing USA real estate.  Chinese buyers purchased close to 100 billion dollars worth of real estate in 2015 in the US, and the trend does not seem to be slowing down. Chinese President XI Jinping has indicated that he world put in place more supply side reforms and increase the Chinese middle class because of the recent slowdown; in the Chinese economy during 2016. -SB

 

US BANKS AHEAD OF THEIR EUROPEAN COUNTERPARTS BECAUSE OF BREXIT!!!!!!!!!

Brexit

By: Economic & Finance Report

The US banks revenue from 2015, beat the revenue of Euro banks by almost double in profit. European banks earned $26B last year, compared to their American counterparts, whom earned $43B the same year (2015).

In 2016 the revenue between the two powerful continents will expand wider; especially since Great Britain has made the decision to BREXIT the EU. Analysts believe this will leave a monstrous dent in the financial sector and the banking industry in Great Britain. With no power players in sight; many investment bankers are already inquiring high end employment agencies about referrals and transfer opportunities in the US, or other market driven countries.

I guess to them, the money does not seem to be in Europe right now; well at least not in Great Britain, with economic prices fluctuating rapidly and uncertainty brewing, where else can anyone turn??? Cheerio -SB

NAIRA BONDS UP THIS YEAR IN 2015…. BEATING ESTIMATES….

Naira bonds

By: Economic & Finance Report

Nigerian bonds are up over 7% this year  alone.  In October Naira bonds beat the US stock market over 24% according to data provided by Standard & Poors report, first reported by Channels Tv online.

Nigerian bonds have beaten other African bonds in yield, surpassing South Africa and Kenyan bonds collectively. Kenyan and South African bonds have returned negatively in the red by 13%, while Naira bonds have gained a respective positive 7%.-SB 

*( reporting & data provided by Channels Tv & S&P index)*

ASIAN MARKETS POST SMALL GAINS AFTER CHINA’S RATE CUT…..

 

asian markets pic

 

 

 

 

By: Economic & Finance Report

 Asian stocks posted higher gains because of the rate cuts that were provided by China. China cut it’s deposit and lending rates, so it can offset deflation. The gains posted in Asia were somewhat limited because of small data adhered in the U.S.  equity markets, which did not show major significance in its economic data.

US consumer buying did beat expectations but it did not send a ripple effect in the equity markets. The US dollar inched up .01%, while the Euro snagged  $1.1160, which happened to be the Euro’s five year low. China yuan fell greatly to the US dollar, while US crude fell $.37 cents. In February US crude oil netted its first gain monthly, the last monthly gain in crude oil was in June 2014…

-SB