On 30 June, the S&P 500 ended its best quarter in 20 years as U.S. stock prices continued rising against a backdrop of record unemployment, business closures, and future economic uncertainty. Analysts attribute the strong performance to hopes for a COVID vaccine, early signs of an economic recovery, and, above all, the U.S. Federal Reserve’s...
Category: TRENDS ON THE U.S. ECONOMIC FRONT
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GOLD BREAKS OUT
For several months, we have forecast that gold prices would have to solidify over $1,740 per ounce before climbing above $2,000. Today, gold closed $1,796.80 an ounce, its highest level since November 2011. Of course, there will be pull backs, however, we maintain our forecast since there will be sharp declines in the overvalued equity markets...
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GLOBAL OVERVIEW: BUSINESSES GOING DOWN, GOING OUT
The following is a global overview of what is going on with businesses financially and where the trends are leading. 20 Percent of German Companies Doubt Their Survival. More than one in every five German businesses believe they may not survive the effects of the global economic shutdown, according to a June survey by Germany’s...
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WALL STREET vs. MAIN STREET
It makes perfect no-sense. Take a trip across America, the land of the freedom-less home of the fearful. Business are out of business or barely back in business. Workers are out of work. At the end of May, 21 million were unemployed, or nearly four for every job opening. According to the Economic Policy Institute,...
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IMF GLOOM
GLOBAL ECONOMIC OUTLOOK WORSENS, IMF WARNS. The International Monetary Fund (IMF) again sharpened its forecast for the global economy’s contraction to -4.9 percent this year from the -3 percent it predicted in April. It also downgraded its 2021 worldwide growth projection from 5.8 percent to 5.4. “The COVID-19 pandemic has had a more negative impact...
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NEW YORK CITY FACES $9-BILLION LOSS
The costs of treating COVID patients and the impact of the economic shutdown could reach $9 billion and have strained New York City’s finances to the point that the city is likely to slash infrastructure spending and lay off masses of the its’ 326,000 employees, mayor Bill DeBlasio said on 24 June. The mayor’s office...
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SWANKY NYC DEPARTMENT STORES REOPEN
Saks Fifth Avenue reopened all 40 of its stores in the U.S. by 24 June, including its flagship New York City store. The Manhattan emporium has installed ultraviolet handrail cleaners on its 22 escalators and scattered 100 hand sanitizing stations throughout the 10-floor store. Shoppers and staff are required to wear face masks. Elevators are...
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BAYER TO PAY $9.6 BILLION TO SETTLE U.S. ROUNDUP SUITS
Bayer AG, the German company that owns the Roundup brand of glyphosate weed killer, will pay $9.6 billion to settle about 95,000 U.S. lawsuits alleging that the herbicide causes non-Hodgkins lymphoma, a form of cancer. Roundup was developed by American chemical giant Monsanto, which Bayer bought for $63 billion in 2018. An additional 30,000 Roundup-related...
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GNC VITAMIN-STORE CHAIN GOES BUST
GNC Holdings, which owns about 7,300 GNC nutrition supplement stores and has outlets in almost 50 countries, has filed for Chapter 11 bankruptcy. It plans to shed about 1,200 shops, and has put itself up for sale. The company blamed the economic shutdown, suppliers demanding quicker payments, interest payments due on bonded debt, and underperforming...
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SHALE LEADER CHESAPEAKE ENERGY FILES FOR BANKRUPTCY
Chesapeake Energy, the Oklahoma company that spearheaded the U.S. shale oil revolution, filed for Chapter 11 bankruptcy protection on 28 June. The company had signaled in May that it probably would be unable to meet its debt payments. The bankruptcy will erase $7 billion in debt. Chesapeake will reorganize and secure $2.5 billion in new...