1) The White House is considering putting limits on U.S. investment in China, which would aggravate the protracted trade dispute between the two largest economies in the world. Advisers are discussing ways to limit U.S. investors’ portfolio flows into China, including limiting all U.S. investment in China. One possible method being considered is to delist Chinese companies on the U.S. stock exchanges thereby limiting American’s exposure to the Chinese market.
2) Alexandria Ocasio-Cortex, the New York Representative, announced a comprehensive anti-poverty bill that would provide new protections for tenants, children, immigrants and other Americans who are increasingly vulnerable to the high cost of inequality. One part of the bill is a tenant rights bill which would significantly expand federal housing policy. This would include a cap on annual rent increases or rent control.
3) General Motors has reversed itself and reinstated health care benefits to its striking workers, as a result of sever criticism from politicians and social media. Normal procedure in strikes is for the cost of health care to shift from the company to the union. The strike of 49,000 GM workers has shut down 30 GM plants across the nation for nearly two weeks. The GM plant in Mexico has been forced to close due to parts shortages as a result of the strike.
4) Stock market closings for – 27 SEP 19:
Dow 26,820.25 down 70.87 Nasdaq 7,939.63 down 91.03 S&P 500 2,961.79 down 15.83
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
1) With just seven weeks remaining before Brexit, Scotland is warning of the looming consequences, but so far has been sidelined and ignored. Contend that Britain is not remotely prepared for exit and therefore calls for an extension, fearing a ‘crash out’ will be a catastrophe because EU rules touches every aspect of EU trade, and therefore will cause trade to come to a sudden halt.
2) White House economic adviser critiqued the Democratic tax proposals being pursued as being economically illiterate.
3) Car dealers are holding large numbers of unsold cars with sales expected to drop this year. This will put pressure on manufactures to cut car production and offer deep discounts to lower inventories.
4) 4 FEB 19 Stock market closings:
Dow 25,239.37 up 75.48 Nasdaq 7,347.54 up 83.67 S&P 500 2,724.87 up 18.34
Could a possible “trade war” be on the horizon, over Pres. Trump’s aluminum & steel tariffs? It could be the case says economic and international business negotiators.
Many economists have indicated that the tariffs imposed could be detrimental to the US economy, while others believe that the impact is minimal, because the tariffs Trump is planning to issue, will only cost American taxpayers a few cents more on the dollar, to support home grown/home based manufacturers, in the steel and aluminum industries.
Gary Cohen, White House director of the National Economic Council is against imposing a tariff on steel and aluminum, while Commerce Secretary Wilbur Ross and White House National Trade Council Director Peter Navarro, are for imposing the tariffs on steel and aluminum goods & products. –SB
Check out Businessman Bassey and his co host James Lymon & Kyle Harper, interviewing a prominent political science expert (Dr. Helmut Norpoth). He has predicted the last 5 presidential elections correctly and who has also indicated with his data & analytical model, Donald Trump will come out as being the next president of the United States of America.
*Special Side Note: The interview with Dr. Helmut Norpoth was taped a day before the elections. It was recorded on November 8, 2016 (Tuesday).
He was one of the few people who predicted a Trump victory, along with David Lauter from the USC/LA Times “DayBreak” Tracking Poll, and Professor Allan Lichtman of American University (Though in the coming days before the presidential election, Dr. Lichtman did double down on Trump victory).