India's economic growth rate projections for 2017 and 2018 are exponential. Much has been said about the country of India's economy. During the last quarter, the Indian economy checked in with an impressive 6.1% growth rate. The pundits argue that India's economic growth is slowing. However, the International Monetary Fund (IMF) projects an explosive Gross Domestic Product (GDP) growth rate of 7.2% in 2018, and 7.7% in 2019; this compares to a dismal 1.9% growth rate for the United States GDP during the Socialist's Obama administration.
Though inequality and the caste system exist in the economy, the growth prospects in 2017 and 2018 are impressive; three to four times that of the United States economy! So is India now the land of opportunity? Will the incredible growth rates continue? Will India be a good place to invest? Time will tell.
Much has been said about the country of India's economy. During the last quarter, the Indian economy checked in with an impressive 6.1% growth rate. The pundits argue that the economy is slowing. However, the International Monetary Fund (IMF) projects an explosive Gross Domestic Product (GDP) growth rate of 7.2% in 2018, and 7.7% in 2019; this compares to a dismal 1.9% growth rate for the United States GDP during the Socialist's Obama administration.
Though inequality and the caste system prevail in the economy, the growth prospects are impressive; three to four times that of the United States economy! So is India now the land of opportunity? Will the incredible growth rates continue? Will India be a good place to invest? Time will tell.
President Donald Trump has reversed Barack Obama's policy on Cuba. Trump has re-imposed trade embargoes on the Cubans. Cuba will likely be stuck in a statist economy as a result. Travel will be severely restricted with vacation airline and cruise ship service continuing.
The move comes to stem the flow of money to ultimately Cuba's military regime which owns dozens of hotels, restaurants and tourism businesses in Cuba. Most U.S. travelers to Cuba will again be required to visit the island as part of organized tour groups run by American companies.
President Trump has reversed Barack Obama's policy on Cuba. Now trade embargoes are in place against the Cuban government, the full video of the speech is below:
Outside the Amazon Go brick-and-mortar grocery store in Seattle Washington, U.S. December 5, 2016. (REUTERS/Jason Redmond)
When Kroger (KR) dropped 18% on Thursday following disappointing first quarter results, CEO Rodney McMullen acknowledged straight-on challenges in the industry. “There is a lot of change in the food retail industry, both in terms of the operating environment and the competitive landscape,” he said. “We know there is a lot of upheaval in the food retail industry.”
On Friday, that remark became a historic understatement. Kroger shares fell another 14% on Friday morning after Amazon (AMZN) announced it would acquire Whole Foods (WFM) for $13.7 billion or $42 per share. “The ramifications for all of retail are seismic—not just retailers that sell grocery, but for everyone,” according to Gordon Haskett’s Chuck Grom.
Brick and mortar grocery stores are no longer safe
The online retail boom has been devastating for brick-and-mortar sellers of electronics, clothes, books, and many other goods where price and convenience are priorities for consumers. While online grocery shopping has been around for a while, it was never considered a major threat to traditional grocers like Kroger and Safeway. That is, until now.
“The acquisition says as you look toward the future, you can’t just do brick and mortar groceries and you can’t just do online groceries,” according to Needham’s Kerry Rice. “A big piece of this is logistics, where the grocery stores haven’t been able to do well—Getting it to you quickly and building out a network.”
Barclays’ Karen Short called the deal “Darwinism at its best.”
Whole Foods, which traded as high as $65 a share in October 2013 before falling to under $30 earlier this year, had tried vigorously to push through an online strategy amid declining sales and pressure from activist investor Jana Partners (which revealed in April it had built a 9% stake in the company).
In November 2015, the organic food pioneer outlined a nine-point turnaround plan to combat declining sales, and CEO John Mackey specifically emphasized digital strategies as part of that.
“We will invest in digital strategies to convert the strong traffic we generate online into sales,” he said during the company’s conference call that month. “We have integrated Instacart into our app, will soon launch a national sales flyer, and will continue to make upgrades to provide more functionality and streamline our customers’ digital experience.”
Shoppers line up outside a Whole Foods Market in Palm Beach Gardens, Fla. (Cydney Scott/Palm Beach Post via AP) Mackey continued to tout digital initiatives on the company’s latest conference call, which included a partnership with Instacart for direct delivery to customers fulfilled out of its stores. The company has also made additional investments in an e-store for catering along with meal delivery with DoorDash.
However, these initiatives have failed to move the needle. In the first quarter of 2017, the grocery chain said comparable store sales fell 2.8%, the seventh straight quarter of declines, just as they rejiggered the board of directors with new retail leadership.
Groceries as a way to sell other stuff
This slow shift to digital sales by traditional names has been a cloud over the retail industry more broadly, from Macy’s (M) to Nordstrom (JWN) and beyond. While some brands and industries have been able to dodge this change, today’s deal is a sign that no industry is safe from disruption.
The deal is not just about pain for grocery chains. It’s also about Amazon gaining a new channel for sales in other categories, according to Morgan Stanley’s Brian Nowak.
“Grocery is also an important order/traffic velocity driver, given the average US consumer visits the supermarket 1.6 times per week,” Nowak said. “As such, Amazon’s ability to capture this traffic flow creates upsell opportunities across its other categories.”
Plus, grocery shopping is a significant portion of consumption, accounting for 30% of total US personal spending, according to Morgan Stanley.
Before today, Amazon’s entry into the $800 billion grocery business has been focused largely on Amazon Fresh, which it started a decade ago. The deal confirms the company’s commitment, allowing it to quickly enter the category without upfront build-out costs (Whole Foods has about 460 locations, with the majority in the US).
Amazon’s Whole Foods could wreak havoc on prices
Injecting Amazon’s DNA into Whole Foods’ business could create an incredible challenge for the supermarket industry.
“We anticipate Amazon’s ownership is likely to result in lower prices at Whole Foods, forcing other grocery participants to follow, negatively impacting category margins,” according to Stifel’s Mark Astrachan. “There is a generally strong correlation between price and comp store sales growth, and we also note Amazon has largely foregone profits in other categories in which it competes, which we believe is likely to happen with Whole Foods/grocery.”
In other words, profitability may not be the top priority for Whole Foods, which puts even more pressure on peers to implement what are called “price investments” in the industry, which is another way of saying lowering prices.
This comes at a time of increasing competition over price, which Kroger noted on their conference call Thursday. And beyond online, the brick-and-mortar landscape has already been increasingly challenging and competitive.
Whole Foods’ leadership in the natural food category paved the way for others to expand in the category. Big-box retailers like Costco (COST), Target (TGT) and Walmart (WMT); traditional grocers like Kroger and privately-held Wegmans; and convenience stores like Walgreens (WBA) have all gone organic. Specialty organic rivals have flexed their muscles as well, with names like like Sprouts Farmers Market (SFM) and privately-held Trader Joe’s growing rapidly.
Amazon’s announcement didn’t come with too many details, keeping with the company’s reputation of disclosing minimal information about future plans. So for now, all we can do is speculate. But it’ll certainly be interesting to see how it all unfolds.
— Nicole Sinclair is markets correspondent for Yahoo Finance
Socialist Justin Trudeau is now the Prime Minister of Canada and running the Canadian Government. Services make up 68% of its economy. Canada is heavily depended on natural resources: petroleum / oil accounts for nearly a whopping 25% of its economy. The auto industry makes up for 10%. Interestingly enough, gold makes up 3% of its economy. When one mixes Socialists policies with falling oil and natural resource prices, and a sagging auto industry, that does not make for a good mix for an economy to prosper.
As I mentioned in a post several years ago, the Canadian economy was booming due to high oil prices and a recovering auto industry. The leader, Stephen Harper, was the Prime Minister from Alberta and very friendly towards businesses, especially the oil industry as his home province is a hotbed for the oil industry. Since then oil has fallen, the markets have reacted, and the people have voted for a new regime that has far opposite and leftist policies than that of Harper's party.
Since my last visit to Canada, I noticed that things weren't going as well economically as I thought. I was a bit disappointed because I have relatives and friends in almost every province in the country and my expectations were a little high. But then I learned that Canada is dependent on natural resources such as oil and timber. So what has happened in past couple of years? Oil has collapsed, the Conservative party was ousted and now the Socialists are running the show, not a good mix for an economy to prosper. However, I got a sense that people are alright with it. After all, a lot of Canada's industries are nationalized; pensions, health care, education, timber to name a few. In my next article, I will go more into depth about Canada's economy and government:
Unreal, newly elected French President dissed newly elected United States President Donald Trump. There must be more to this, is this simply a microcosm of the battle between the Capitalists vs. Socialists systems? Anyhow, very interesting what goes on behind the cameras. Will the French economy struggle more with the election of a Socialist? Will the United States economy continue its mighty ascent? Thoughts?
Saturday, June 10, 2017
Interesting article and television interview with legendary investor Jim Rogers. Topics include: Russian and Japanese stocks, the United States economy and Amazon stock:
Nicole Sinclair 19 hours ago 
When Kroger (KR) dropped 18% on Thursday following disappointing first quarter results, CEO Rodney McMullen acknowledged straight-on challenges in the industry. “There is a lot of change in the food retail industry, both in terms of the operating environment and the competitive landscape,” he said. “We know there is a lot of upheaval in the food retail industry.”
Before today, Amazon’s entry into the $800 billion grocery business has been focused largely on Amazon Fresh, which it started a decade ago. The deal confirms the company’s commitment, allowing it to quickly enter the category without upfront build-out costs (Whole Foods has about 460 locations, with the majority in the US).