Strong earnings results for Proctor & Gamble and United Technologies helped the Dow to a closing gain after a seesaw session that resembled an Otis Elevator. The Dow today posted a 171-point increase to 24,575. Trading volume was lower than the spirits of a WSU cougar fan after the last Apple Cup. Starbucks reports earnings tomorrow.
Boeing is getting into the autonomous flying taxi craze and recently test flew its own version called the eVTOL. Aurora Flight Sciences, which is a division of Boeing, has been working on an electric-powered, vertical takeoff-and-landing aircraft. Boeing NeXt, the business unit that leads Boeing’s urban air mobility efforts, is overseeing the test program. They could use these things at Davos, Switzerland where all the global finance leaders usually fly private jets to Zurich and then take helicopters from the airport to the village of Davos. Have they not heard of a train? Anyway check out a video of it here on our Faceplant page.
A tale of two banks. Bank of America CEO Brian “Money” Moynihan, who was interviewed at Davos, said all their indicators show the US economy will grow 2.5% in 2019 and that while this is slower than 2018 it should not develop into a recession based on the strength of the US consumer. Meanwhile across the pond in Germany, Deutsche Bank is struggling and there are rumors the German gubment could arrange a merger between Deutsche Bank and Commerzbank AG, which are the two largest banks in Germany. DB was also hit with a US anti-money laundering inquiry into the movement over a billion in cash from Russia, through Estonia possibly facilitated by DB’s US division. DB failed the stress test last year and people are worried about its asset quality, derivative exposure and talent flight. DB could also be an indicator of economic stress in Europe as China slows and “business as usual” trade policy is disrupted. The fate of DB bears watching.
The scouts had a snow camp last weekend. I will get details and pass them on to you. Our next trip is to Blewett Pass in 3 weeks.