Mr. Trump’s State of the Union address was a hit with his Republican base. The president was in rare form when he reached the pulpit to deliver what some Democrats called a “pack of lies.” President Trump handed a copy of his address to Mike Pence and Nancy Pelosi. Mr. Trump shook Pence’s hand, but he gave Nancy the cold shoulder.
At the end of his 78-minute speech, Pelosi ripped up her copy of his address. The war in Washington continues to rage, but Trump claimed America’s future is bright during his Senate Chamber performance. The president gave his voter base reasons to keep loving him. In fact, the president’s approval rating hit the 49% mark. That jump in support shows how powerful Trump’s defense team was during the impeachment trial.
The president told the audience America’s economy is on fire, but the recently-released construction figures tell another story. Construction projects in the U.S. dropped by .2% in January, and construction spending declined by .3% in 2019. Plus, farm bankruptcies hit an 8-year high in 2019. Dairy farm bankruptcies were the flavor of the day in 2019.
The farmers are still in limbo thanks to the tariff war with China. Even though phase one is a go, the Chinese won’t fulfill their part of the agreement until the government gets the coronavirus under control. The virus sent $400 billion down the Chinese stock market’s economic drain even though the central bank injected more than $170 billion into the economy to keep it stable.
The recent bond yield curve inversion has investors running for cover. When three-month Treasury notes yield more than 10-year notes, there’s danger dead ahead, according to the economic history books. The recent inversion is the second inversion since last October. Some economists claim the upside-down position in the bond market is not a sign recession is on its way to American shores.
But it’s not just the bond market that’s flashing red. Out-of-control spending, the trade war, Brexit, and the coronavirus will erode economic growth in 2020.
Macy’s announced it will close 125 stores and cut 2,000 stores over the next three years. Macy’s revenue numbers keep falling, so the plan is to focus on smaller stores in stripe centers to stop the financial bleeding. Store-for-store sales are flat. Closing large inventory packed unprofitable stores might save the company. But retail experts claim Macy’s may be on its way to the retail boneyard before the end of the decade.
Source: http://www.dailyjournal.net/2020/02/05/us-macys-store-closures/
Dil Bole Oberoi
