Friday, August 17, 2018

Tariff Job Gains Exceed Losses By 20:1



As of today, job gains exceed job losses by a 20:1 ratio. This week we’re showing gains of 11,100 jobs in four major sectors affected by tariffs. Tariffs are creating far more jobs than they are sacrificing.  The tariffs are working. So far, we have identified 514 job losses specifically due to tariffs. All job gains and job losses refer to job changes that have either happened or have been publicly announced as planned to happen by the companies involved, with specific numbers included. We have not estimated any of these numbers; they all come from the companies concerned. We do not include threats of potential job losses, such as the threat of sacrificing an alleged 4,000 future jobs recently made by the CEO of Chinese-owned Volvo Cars. Many corporate leaders are making vague threats or forecasts with clear political motivations. We are going deeper and looking at facts and facts only. [more...]

Wednesday, May 9, 2018

2018 Great for Mergers & Acquisitions



2018 has been a great year thus far for M&A. The number of deals is down, but the deal sizes are increasing. Record-breaking deals are being proposed and executed both in the United States and globally. Just in the last week, Sprint and T-Mobile announced a $26 billion merger, and Marathon Petroleum announced a $36 billion acquisition. Other potential deals include Walmart and J Sainsbury, Walmart (or Amazon) and Flipkart, and Bayer and Monsanto. To provide a better idea, as of mid-last week, there have been 11,828 deals valued at $1.71 trillion globally. Deals are valued to be 63% larger on average than last year. [more...]

Monday, April 23, 2018

Amazon and Walmart - Who Will Take India?



The two American giants’ fight for Indian territory has started to intensify. Amazon and Walmart have been competing to acquire majority stake in India’s largest e-commerce company, Flipkart. Recent developments suggest Walmart has proposed a $10-12 billion offer for a 51% stake; the deal could close by the end of June. On the other hand, Amazon has marked its presence by attaching a breakup fee of up to $2 billion. A breakup fee is a penalty established in the deal process that requires payment if the purchaser or seller backs out. In this case, Amazon will pay a hefty fee if the deal is incomplete for whatever reason. Nonetheless, the deal structures emphasize the seriousness of both parties. [more...]

Welcome to the Class War



In the Great Class War between the “rich” and the government, whose side are you on? This week MarketWatch reported that by 2030, “the richest 1%” are on track to “control nearly 66% of the world’s money.” This is approximately $305 trillion, it reported, based on data from the hard-left British newspaper The Guardian, best-selling French Marxist economist Thomas Piketty, and other sources with comradely views. The activist group Oxfam warns that “just eight billionaires have as much wealth as 3.6 billion people – the poorest half of the world.” [more...]

Monday, March 19, 2018

Spreading the Wealth Trump Style - Get Ready for More Tax Cuts



I’m no proponent of runaway government spending and the headlong rush into national insolvency. But, if the government is going to do it anyway, we as citizens should get to hold onto every last red cent, regardless what it might eventually be worth. And, who knows, perhaps the added attention to the deficit will help the Congress to return to fiscal sanity. It’s doubtful, but we always hope for change we can all believe in. Like clockwork, President Trump raised the prospect of more tax cuts during the Republican Congressional Retreat. He recently delivered, promising Phase 2. [more...]

The U.S. Surprises Estimates by Adding 313,000 Jobs



The U.S. Bureau of Labor Statistics released the employment report for February 2018. It surpassed and surprised analysts’ estimates by adding 313,000 jobs. The unemployment rate remained at 4.1% for the fifth consecutive month, the lowest rate in 17 years. Analysts had expected that the U.S. had added about 200,000 jobs and that the pool of potential workers has been depleting. These new figures suggest otherwise; the last time the U.S. experienced large gains with low unemployment was during the economic boom of the 1990s. The U.S. has added over 500,000 new jobs since the start of 2018, and the labor force participation rate has increased as well - its best one month gain in over 8 years. [more...]


Monday, February 26, 2018

How Facebook Can Help Rebuild U.S. Manufacturing



How could Facebook regain public and political support? Here’s a simple proposal: the company is investing $14 billion this year on capital spending. That’s a huge sum of money (and double its 2017 spend). The vast majority of it goes on the data centers Facebook is building in the U.S. and worldwide. And the vast majority of that money goes to the servers, storage, and networking gear crammed, floor to ceiling, into those data centers. Today, virtually all that money is going to Asian-manufactured IT equipment, simply because all that equipment is manufactured over there and almost none of it here. What if Facebook said it would spend a quarter of its data center budget on U.S.-manufactured equipment? If Facebook committed to spend one quarter of its IT budget on U.S.-made product, and was followed by other Internet giants, the U.S. might soon have some 3 million people working on manufacturing the products that make the Internet hum. [more...]