Weekly News (September 9, 2020)
This week’s Interest Rate (37th Week)
(By Fairway Asset )
|30 yr fx(%)||15 yr fx(%)||FHA(%)||10 yr Tr Y (%)|
|A year ago||3.500||3.125||1.462|
|A month ago||2.750||2.375||2.625||0.517|
(The rate based on 25% down payment with 740 above credit score)
Prime Rate:3.0% / Ref IR: 0.00- 0.25%
Charging additional 0.5% for Re-Fi will be extended 3 month till December.
Even though stock market went down, unemployment is showing bit of improvement.
Rates are remaining the same.
COVID-19 Change: North Jersey supermarket scene is growing, thriving
- Aldi supermarket in Bergenfield’s Foster Village Shopping Center will open on 9/17. A few blocks away, rival chain Lidl opened its first store in the country at the site of a former Pathmark store on New Bridge Road, in December.
- Bergenfield population is 27,000. Bergenfield Aldi is among four stores that German-based discount grocer plans to open in New Jersey by the end of the year with locations including Marlboro, Totowa, Ramsey.
- Lidl, Aldi’s longtime German competitor are looking to open 10 new stores in New Jersey by the end of 2021.
- Trouble for some: Fairway Market, the New York based grocery chain, closed its stores in Paramus and Woodland Park due to the bankruptcy. Kings Food Market filed the bankruptcy in August and accepted a bid at 75M to sell the company.
New Jersey might delay payment of additional $300 unemployment support
(Korea Times 9/5)
- FEMA has asked New Jersey for additional document to be submitted on the application of LWA. When the state labor department applied LWA program to FEMA, they forecasted the payment might be available in October.
- New Jersey has submitted the application for 3 week portion of August and they will have to apply every week until the fund is depleted.
A lawyer got arrested by FBI for the fraud on PPP
(Korea Daily 9/5)
- FBI arrested Mr. Choi(40’), a lawyer lives in Cliffside Park, NJ for receiving $9M for PPP fund’s fraudulent use. Mr. Choi set up a paper company related to education which has a few hundred employees and received $9M for PPP, and used $1M for remodeling for a house in Cresskill and several million dollars to stock investment.
- While doing so, it is known that he forged tax document, bank document, and driver license.
- Some say about 20,000 fraud cases for Coronavirus funds and total amount can exceed $4B.
NY Stock market index dropped over the Labor Day holiday weekend again
(Korea Daily 9/9)
- Dow Jones dropped 2.25% (632.42) to 27,500.89. S&P dropped 2.78% (95.12) to 3,331.84, and Nasdaq dropped 4.11% (465.44) to 18,0847.69. Nasdaq, mostly high-tech stocks has been dropped continually from 9/3.
- Tesla stock dropped 21.1%, Microsoft dropped 5.4%, Facebook dropped 4.1%, Alphabet dropped 3.7%. Apple dropped 6.7% even though they announced new product.
- New York Exchange warned that more adjustment can be done for technology stocks.
Troubled tenants started receiving Eviction notice
(Korea Daily 9/9)
- Even though Federal and local government are forcing to extend eviction process, more buildings are trying to evict the troubled tenants while the courts began to work and economic activities began after the pandemic period.
- Eviction Tsunami has affected restaurants, clothing stores, hair salon, food establishment, and tenants are receiving eviction notice and lease termination. Saks Fifth in shopping center in Miami are behind of rent $1.9M and the landlord filed the eviction 2 weeks ago. (Paris Baguette in Manhattan owes $217,000 for 5 month rent and LL sued them. CWM 8/19/2020)
- Before pandemic, many eviction cases have ended up mediation before sheriff’s action.
- Meantime, rent collection rate is improved continually: 54% in April and 77% in July.
Goggle will make mixed use complex surrounding area of Silicon Valley HQ
(The Korea Times 9/8)
- Goggle’s mother company Alphabet submitted the plan to the city that they will do remodeling about 40 Ac around HQ building at Mountain View in Silicon Valley: village type corporate campus: 1.3M sf for office, 30,128 sf for retail space, 1850 residential units, 20,000 sf for Event space, 12 Ac for public space.
- Earlier, Google said they will develop 80 Ac similar type of complex at San Jose which is about 10 miles away from Mountain View.
US unemployment rate in August dropped to 8.4%
(Korea Times 9/8)
- Labor department announced that unemployment rate became 8.4% in August which is almost 2% drop from July (10.2%) and the lowest rate since March. US was boasting unemployment rate of 3.5% in Feb before COVID-19 era. The peak was 14.7% in April.
- New job addition, which was peak at 4.76M in June, is slowing down. 37M jobs are added to the market in August.
- In August, job shortage in US was 11.5M, compared to pre pandemic period.
- Trump said job market in US is recovering faster than expected, indicating it will be advantage for him for the November election.
WHO said vaccine for coronavirus will not be available till middle of next year
(Korea Daily 9/5)
- While US and Russia are expecting vaccine will be available in this year, WHO announced different forecast, stating that any vaccine developed so far was not able to prove 50% of effectiveness for sure and they do not expect trustful vaccine will not be available till middle of next year.
- In general, 3rd phase of clinical trial is the most difficult phase because it has to go through 20,000 – 30,000 people to prove the safety and effectiveness.
- “Sputnik V” Russia’s first registered corona vaccine has skipped the 3rd phase clinical trial, other countries claimed. The Lancet, international medical journal said that people who were tried on Sputnik V obtained antibody against Coronavirus.
Consumer borrowing advances solid 3.6% in July
- US consumer borrowing rose by a solid 3.6% ($12.5B) in July, the second monthly gain (3.3% in June) after pandemic has sent consumer borrowing down sharply in previous three months.
- The strength came from the category of auto loans and student loans. The category that covers credit cards fell by $293M, the fifth straight month that the credit card category has declined.
- Consumer borrowing is closely watched for signals it can send about consumer’s willingness to take on more support their spending. Consumer spending accounts for 70% of U.S. economic activities.
Others/Tech News : Samsung will supply 5G equipment to Verizon by signing
(Korea Daily 9/9) $850M Contract
– Verizon can take advantage of both bandwidth: 3.4GHz and 28GHz
– Ericsson and Nokia are major suppliers, but Samsung will exceed them soon.