September 17, 2019
WHAT’S HAPPENING AROUND HERE
The Monte Sano Art Festival has been an enjoyed tradition in Huntsville, Alabama for seventeen years. There will be more than 140 of the region’s finest artists in an array of wonderful media. Along with the outdoor festival exhibitors, 2019 will welcome local food trucks and musicians throughout the park. The festival is Saturday, September 21st and Sunday, September 22nd. While the event is free to attend, Monte Sano State Park will charge $10 per car for parking or $5 per walk-in. Cash only.
THIS WEEK’S ECONOMIC DATA
Jobless claims dropped slightly in the first week of September.
On Friday, the Commerce Department reported that retail sales had risen a healthy 0.4% in August, although a rise in volatile auto sales deserved the credit.
ECONOMY AND EQUITY MARKETS
Chinese companies have begun inquiring about prices for U.S. agricultural goods in a move many hope leads to the de-escalation of trade tensions between the world’s two largest economies. The announcement from China’s commerce ministry comes ahead of a planned meeting of U.S. and China trade negotiators scheduled to take place in Washington in early October. Possible U.S. farm goods purchases could include soybeans and pork, which are subject to hefty Chinese duties.
The European Central Bank (ECB) introduced a massive bond buying program and cut interest rates deeper in negative territory on September 12th in an effort to stimulate the ailing eurozone economy. The renewed quantitative easing program will include bond purchases of $21 billion per month starting November 1st and last “as long as necessary.” The ECB also slashed its deposit rate by 10 basis points to -0.5%, a new low, but within market expectations.
Great American Companies – The world’s biggest retailer has announced it is taking a new “unlimited” grocery delivery service to 1,400 stores this fall. Walmart’s Delivery Unlimited costs $98 annually for customers to receive limitless grocery delivery orders to their homes. In addition to fresh produce, meat and bakery items, the service will offer some general merchandise, the company said. Walmart has more than 45,000 personal shoppers to fill Delivery Unlimited orders. These employees must complete three weeks of training to be eligible to work in the new service.
A Losing Deal – Uber is losing $3.36 on every order on its food-delivery platform, Uber Eats. The company paid $253 million more to delivery drivers than it took in from them as revenue in the second quarter.
Not a Bad Return – A family-owned, 165,000-acre ranch in West Texas could fetch up to $7 billion, if sold to drillers. The original owner, David Fasken, paid $1.50 an acre in 1913 for oil-rich land in the Permian basin now selling for nearly $70,000 an acre.
Wednesday: Housing Starts, Housing Starts MoM, FOMC Rate Decision (Upper Bound)
Thursday: Initial Jobless Claims
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QUOTE OF THE WEEK
“Be thankful we’re not getting all the government we’re paying for.” Will Rogers
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*This Week’s Economic Data…(Source: Bloomberg, Business Insider)
*Economy and Equity Markets…(Source: Reuters)
*Fixed Income…(Source: CNBC)
*Global Rebalancing…(Source: Reuters)
*Great American Companies…(Source: CNBC)
*A Losing Deal…(Source:Qz.com)
*Not a Bad Return…(Source: Bloomberg.com)