1) Ford Motor Company’s sales in China has declined for the third straight year, falling by 26.1%. The company has been trying to revive sales in China after the decline started in 2017 and plans to introduce thirty new models in the next three years, with a third being electric models. General Motors has also experienced a decline in sales of 15% this last year.
2) One of the largest suppliers of parts to Boeing’s 737 MAX, Spirit AeroSystems, is laying off 2,800 workers. Based in Wichita Kansas, will eliminate 20% of its workforce. Smaller layoffs will happen at its facilities in Tulsa and McAlester, with half its annual sales from parts for the 737 MAX. Since last February, Spirit’s stock has fell from a high of $100 a share to $71.50 on news of the layoffs.
3) Expectations are that the U.S. will remove China from its list of currency manipulators two days before the signing of initial U.S. – China trade agreement. Part of the agreement is that both nations will not devalue its currency to gain a competitive advantages of exports. Labeling China a currency manipulator was viewed largely as a symbolic action.
4) Stock market closings for – 13 JAN 20: Stocks are up 495% in the past decade.
Dow 28,907.05 up 83.28 Nasdaq 9,273.93 up 95.07 S&P 500 3,288.13 up 22.78
1) Timothy Litzenburg, a Virginia lawyer involved in litigation over the health risks of Monsanto’s roundup weed killer product, has been arrested. He is charged with interstate intentions to extort an unnamed company into a $200 million dollar consulting fee for his firm. Litzenburg threatened to find people who he would advise to sue companies for exposing them to the chemical, but that he would cease searching for potential plaintiffs in exchange for a multi million dollar consulting agreement.
2) Freddie Mac has offered early retirement to about 25% of its staff in a drive to overhaul its workforce, as a result of the Trump administration’s reforming the housing finance giant. There are 1,650 eligible employees being offer the early out, with about one quarter expected to take the buyout. This will be about 6% of Freddie Mac’s workforce.
3) The number of Americans filing applications for unemployment benefits dropped from more than a two year high, decreasing 18,000 to 234,000. This points to a sustained labor market strength, another sign of a strong American economy. Despite trade tensions and slowing global growth with a weighing down on manufacturing, the economy is on a moderate growth path.
4) Stock market closings for – 19 DEC 19:
Dow 28,376.96 up at 137.68 Nasdaq 8,887.22 up at 59.48 S&P 500 3,205.37 up at 14.23
1) Despite more than two centuries in New York, JP Morgan is quietly shrinking its workforce there. The bank has been relocating several thousand New York based employees out of the area to reduce operating cost incase of an economic downturn. JP Morgan is considering moving the hub from New York to other lower cost hubs such as Plano, Texas or Columbus, Ohio or Wilmington, Delaware.
2) The world famous jeweler Tiffany has been offered $14.5 billion dollars from LVMH, which would be the largest take over by LVMH. The goal of the acquisition is to extend the reach of Louis Vuitton into the U.S. markets. Jewelry is one of the few segments of the luxury market where LVMH is not the leader, but having Tiffany would make it a stronger competitor under the ownership of LVMH.
3) The subprime auto giant Santander Consumer USA Holdings has defaulting loans at a faster rate since 2008. Many of these loans are packaged into bonds. The growing number of borrowers defaulting indicates that many of the borrowers may be getting loans based on fraudulent application information. Delinquent auto loans have reached their highest levels this year since 2011. The weakening performance in managed portfolio signals elevated risks and is an overall negative development.
4) Stock market closings for – 28 OCT 19:
Dow 27,090.72 up 132.66 Nasdaq 8,325.99 up 82.87 S&P 500 3,039.42 up 16.87
Uber has hired two top female executives because of the arising sexual harassment claims that has hit the expanding technology company.
Bozoma St. John and Frances Frei have been hired to try to bring a more productive and diverse female workforce to the giant tech company. Bozoma a former marketing and brand executive at Apple Music, will oversee marketing and branding at Uber as Chief Branding Officer; while Frei who was previously senior associate dean and professor of executive education at Harvard, will be Uber’s Senior Vice President of Strategy.
Both women bring a plethora of experience and knowledge to their respective positions, and Uber utilizing both individuals helps the company with a formal image problem that has been tainting the company with their female workforce. The hires allows Uber to mitigate and develop a consensus of opportunities for their women demographic at the workplace. A demographic that Uber has been battling for quite some time now. -SB
AMAZON (AMZN) has done it again folks!!!!!! One of the world’s largest online retailers has just bought the biggest Middle East online e-commerce retailer. Amazon has recently acquired Souq.com; the biggest ecommerce retailer in the Middle East. The company which is based in Dubai, United Emirates is the largest of its kind, in the middle east. Souq is valued at over $1 billion dollars .
Amazon has been serving customers in the Middle East for years, but wanted to expand its portfolio in the region, and they have with the purchase of Souq. It has been noted that Souq.com sells more than eight million products in the region.
Souq.com has over 3,000 employees in the Middle East and Arab countries; when the company started in Dubai, they only had five employees. Souq CEO Ronaldo Mouchawar, believed Amazon was the only choice as far as his concern, though the company had a $800 million counter offer buyout on the table; Mouchawar and his team believed Amazon was a very suitable home for Souq’s long term vision. -SB