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Tag: USA

  • Five wealthiest Americans worth more than top 5 richest in China, Russia, India

    Five wealthiest Americans worth more than top 5 richest in China, Russia, India

    Data presented by Buy Shares indicates that the net worth of five richest Americans is more than the cumulative wealth of five richest individuals from China, Russia, and India.

    According to the data, the Americans account for $609.3 billion while their counterparts are worth $463.6 billion combined.

    Bezos wealth continues to surge

    From the overviewed countries, the combined wealth of China’s five richest stands at $207.6 billion, while India’s wealthy account for $143.6 billion. On the other hand, the top five Russian wealthy people have a net worth of $112.4 billion. 

    In total, the 20 richest people sampled from the four countries are worth $1.72 trillion. Jeff Bezos emerges as the richest person globally with a fortune of $205 billion as of August 26, 2020.

    Notably, Bezos is $88.8 billion richer than Microsoft founder Bill Gates who ranks as the second richest person in the world.

    The Buy Shares report notes the contribution of the coronavirus pandemic to the increasing wealth of the global billionaires.

    According to the report: ”During the coronavirus pandemic, the global billionaires are among the biggest beneficiaries. For example, Jeff Bezos crossed the $200 billion mark, a record milestone since Amazon was among the biggest beneficiaries of the pandemic.”

    The wealth of overviewed individuals is estimated based on their documented assets and also factoring liabilities like debts. 

  • U.S. GDP biggest quarterly slump in last 70 years at 32.9%

    U.S. GDP biggest quarterly slump in last 70 years at 32.9%

    Data presented by Buy Shares indicates that the United States’ real GDP slumped by 32.9% during Q2 2020. The drop was the worst in about seventy-three years.

    Over the last 70 years, notable slumps were recorded at the end of Q1 1958 when the real GDP declined by 10%.

    During Q2 of 1980, there was also a major drop of 8%. In the wake of the recession at the end of Q4 2008, the real GDP declined by 8.4%.

    The Buy Shares research also overviewed the real US GDP figures over the last decade where the highest figure was recorded in 2019 at $19.09 trillion.

    By Q1 2020, the GDP dropped to but $19.01 trillion. 

    By Q2 2020, the real GDP dropped by 9.5% to about $17.2 trillion. Over the last ten years, the lowest GDP was recorded in 2010 at $15.59 trillion. 

  • Kindred expands Unibet network in third American state, Indiana

    Kindred expands Unibet network in third American state, Indiana

    Kindred continues its US expansion by entering the third state after the launches in New Jersey and Pennsylvania. As of today, Unibet is avaible in Indiana.

    Through a multi-state agreement with Caesars Entertainment, Kindred gains access to sports betting fans in Indiana.

    This is Kindred’s third state in the US, after successfully launching an online casino and sportsbook in New Jersey and an online casino in Pennsylvania.

    “We look forward to Unibet’s success in Indiana and the incremental revenue stream it will provide our sportsbook business,” says Christian Stuart, Head of Caesars Sports and Online Gaming. “Unibet’s launch comes at an exciting time for fans with the return of professional sports.”

    Kindred will use Pala Interactive’s online gaming platform in Indiana and will continue to use Kambi’s sports betting platform, which has also been communicated at an earlier stage.

  • United States: Two-speed business bankruptcies

    United States: Two-speed business bankruptcies

    As the COVID-19 epidemic hits the United States very hard, Coface forecasts in its baseline scenario that the country’s GDP will contract by 5.6% in 2020, before rebounding by 3.3% in 2021.

    Nevertheless, this forecast is threatened by the resurgence of the outbreak in several states, which are already pausing or even reversing the resumption of activity after the extensive lockdown of April.

    On the bankruptcy front, the sharpest drop in GDP should be followed by a massive increase in business bankruptcy filings.

    Nonetheless, since the beginning of the crisis, the latter has fallen since February, driven by a significant drop of bankruptcy filings under Chapter 7 of the US bankruptcy law (liquidation).

    At the same time the number of companies seeking Chapter 11 protection (reorganization) is up sharply (+48% year-on-year in May), indicating that bankruptcies related to COVID-19 are already brewing. Coface forecasts bankruptcy to rebound in the second half of 2020, with an expected increase of 43% between the end of 2019 and the end of 2021.

    Furthermore, Coface’s estimates show that the “zombie” companies, which have grown over the last decade to represent more than 6% of companies in 2019, could also be pushed into bankruptcy in the coming months. The number of companies in difficulty is also likely to multiply as a result of the accumulation of debt.

    Falling bankruptcies in recent months: a sham situation

    2019 saw the first annual increase in bankruptcies since 2009 with an increase in proceedings initiated in 2019 by 2.5% compared to 2018. Data released after the first quarter of 2020 shows that after a jump of 21% in January, corporate bankruptcy proceedings began to decline starting in February.

    As in Europe, measures to support corporate liquidity, a wait-and-see attitude of debtor companies and the closure of bankruptcy courts might explain this trend.

    However, given the magnitude of the shock and while the support measures should gradually expire, business failures in the United States are expected to accelerate.

    The health of aggregate company balance sheets highlights that the aerospace, retail, automotive and energy sectors are the most vulnerable to this situation.

    Bankruptcies and “zombification” threaten debt-laden companies

    The “zombie” companies, which continue to operate despite precarious solvency and profitability, could also be pushed into bankruptcy in the coming months.

    More importantly, with more companies forced to leverage debt to cope with revenue losses, the threat of a multiplication of distressed companies is added to the risk of bankruptcy.

  • US personal saving rate rockets 4x. Commercial banks deposits up by 15%

    US personal saving rate rockets 4x. Commercial banks deposits up by 15%

    Data gathered by Buyshares.co.uk indicates that the United States’ personal saving rate grew by at least four times between January and April 2020.

    According to the data, the rate stood at 33% as of April this year.

    In January, the rate was 7.9% before slightly rising to 8.2%. By March, it hit 13.1% before the April high.

    Before the 2020 spike, the highest rate was in December 2018 at 8.8% while the lowest rate was in December 2015 at 5.8%. Between June 2015 and December 2019, the rate remained fairly constant averaging at 7.2%.

    Commercial banks deposits up by 15%

    Buyshares.co.uk’s research also reviewed the United States commercial banks’ deposits.

    Between January and May this year, the rate grew by 15.22%. In January, the figure stood at $13.3 trillion while in May it was $15.32 trillion.

    In March, the deposit increased to $13.85 trillion a percentage increase of 3.5%. By April, the growing amount in deposits kept growing to stand at $14.72 trillion.

    From July 2015, the deposit has been undergoing an upward trajectory to grow by 42.58% by May this year.

    During the period under review, the lowest deposits held by US commercial banks were recorded in December 2015 at $10.92 trillion.

    The Buyshares.co.uk research report notes that most Americans who lost their jobs as a result of the pandemic were depositing checks from Federal unemployment benefits hence the spike.

  • US commercial and industrial loans at an all-time high since 1973

    US commercial and industrial loans at an all-time high since 1973

    Data gathered by Learnbonds.com indicates that the United States commercial and Industrial loans hit $3.04 trillion in the third week of May.

    According to the data, this is the highest amount since January 1973 when the figure was $134.04 billion.

    A notable spike in the loans by all the commercial loans was recorded in the second week of March 2020 when the amount stood at $2.38 trillion. Eight weeks from this period, the loans grew by 27.86% to the May figure.

    Between the first week of this year and May, the loan amount has grown by 29.6% after standing at $2.35 trillion in January. The lowest amount in commercial loans was in the first week of 1973 at $134.04 billion. The loan amount first hit the one trillion mark in the last week of September 2005 when the figure stood at $1.001 trillion.

    Before the current high of $3.04 trillion, the last time commercial loans were notably high was in the fourth week of November 2008 when the number stood at $1.57 trillion. Another high was in the third week of January 2001 at $1.09 trillion.

    Based on the data, it clear that spike was recorded when the Coronavirus pandemic began impacting the economy. According to our research report:

    Based on the monthly percentage change in commercial loans, March and April this record the highest rate at 169.3%. Before the 2020 spike, the last highest rate was between December 1951 and January 1952 at 68.3%. Another notable high was in February 1973, April 1974, October 2008 at 47.5%, 43.7%, and 41.8% respectively.

    On the other hand, the lowest percentage difference was recorded between June and July 2009 at 33.7%. Another notable low was in November and December 1953 at 34.3%.

  • US imports from China slumps by 45% in just 7 months

    US imports from China slumps by 45% in just 7 months

    Data gathered by Learnbonds.com reveals that the value of United States trade in goods for both exports and imports with China has dropped by 45.12%.

    The dropped is largely attributed to the trade war between the United States and China.

    The data shows that in March 2020, the value of U.S. trade in goods with China amounted to around $27.78 billion with imports totaling to $19.81 billion and exports at $7.97 billion.

    In August last year, the total trade value stood at $50.62 billion with imports at $41.19 billion while exports were $9.43 billion. From August last year, the value declined and slightly rose in October to $49.04 billion.

    Between January and March this year, the trade value dropped by about 32.09%. Between March last year ($41.6 billion) and March this year ($27.78 billion), the total trade value has slumped by 33.2%.

    The data further shows that between August last year and March 2020, imports dropped by a staggering 51.9% while exports slightly plunged by 15.48%.

    From the data, it is clear that the trade value shows that imports are the most impacted compared to exports. Generally, the drop is expected to continue. According to our research report:

    The research also compared the monthly value of export for both the United States and China from April 2017 to March 2020. China’s total export value stood at $7.27 trillion while the United States value was $7.18 trillion, a percentage difference of 1.2%. The US export value has been consistent and the lowest figure was $187.7 billion while the highest value for the export was in April 2018 at $213.3 billion.

    For China, the exports were valued highest in January and February at $292.45 billion. The lowest value was registered in February last year at $135.24 billion. 

  • Pandemic pushes US personal spending to record decline since 1959

    Pandemic pushes US personal spending to record decline since 1959

    Research by Finbold.com shows that the United States’ personal spending has significantly dropped by 7.5 percent monthly.

    Data obtained indicate that between March and February this year, the US personal spending registered its worst figure since 1959.

    Personal spending to improve in mid-2021

    From the data, personal spending in the US increased by 0.2 percent in February compared to January this year. The decline has been attributed to the Coronavirus pandemic that peaked between March and April. According to our research report:

    This massive drop represents the largest decline in personal spending on record, which means since 1959. There was no crisis during the last 60 years that affected in such a negative way the personal spending of U.S. families.

    The report further indicates that personal spending in the US is projected to drop by 2 percent by the end of this quarter. Further projections indicate that personal spending in the U.S. could stand at 0.50 in the next 12 months. By mid-2021 the situation will start improving with personal spending moving towards 0.70 percent.

    The U.S. Personal spending is measured by the Personal consumption expenditures (PCE) index, which takes into account how much of the income earned is spent by U.S. families.

    Global economies have been impacted by the Coronavirus and the United States has not been spared either. Several states have imposed lockdowns to curb the spread of the Coronavirus.

  • Only 10 countries make 82% of all investments in the US

    Only 10 countries make 82% of all investments in the US

    • Data compiled by Finbold shows that Japan has the highest portfolio investment in the United States at $1.67 trillion.
    • According to the data, the total investment in assets by foreign countries in the US stands at $11.66 trillion.

    The data places the Cayman Islands in the second position with an investment worth $1.64 trillions followed by Luxembourg at $1.20 trillion. The United Kingdom is third with $1.15 trillion while Canada closes the top five categories with investments valued at $1.13 trillion.

    Other top investors in the US include Ireland ($1.04 trillion), Netherlands ($542 billion), Germany’s ($438 billion), Singapore ($371.57 billion), and France ($354.64 billion).

    In total, these countries’ investments in the US are $9.56 billion which represents 82% of the global value.

    The assets in the portfolio invested by these countries comprise equity and investment fund shares, long-term debt securities, and short-term debt securities.

    According to the report, „foreign portfolio investment assets show up in a country’s capital account. It is also part of the balance of payments which measures the amount of money flowing in and out of a country over a given period”.