Today a new joyous experience, after receiving a tax bill from the great state of New York alleging that I owe well over $1000 in unapid taxes. Since the first bill I paid right after I got my account back after being pickpocketed was for my income taxes, on Dec. 1, I was in shock since my accounts are still in limbo at the bank I used. It only took 4 hours, but a NY tax expert with the unfortunate name of Antoinette confirmed that I owe nothing. She also claimed the payment was only received yesterday which shows you what cutting funding to the USPO is doing to us. We are still getting Christmas and even Chanukah cards almost daily.
One of my hopes is that some of the same grief will be imposed on another taxpayer in New York NY 10022 when he leaves the White House at last.
I am a long-time shareholder of GE, and I think it has been overpaying rainmakers for decades. So I am incensed that H. Lawrence Culp jr, the current CEO, will be getting a $46.5 million bonus (and up to $230 mn) despite GE not reaching the target price for paying it set in 2018. The directors last summer decided to pay him that amount if GE hits $16.68 this year rather than $31. Moreover GE employees have been let go in the aviation part of the company, its best performer befor Culp and Covid-19 hit.
I'm convinced that the GE habit of overpaying for its CEOs is not good for the company, its shareholders like me, and the USA. Do other people still remember the gold shower curtains and sports seats guaranteed to Jack Welch who retired as CEO of GE in 2001? He began a process of firing 10% of GE employees each year. He also ditched GE's consumer electronics businesses. And he began an affaire with the lady editor of the Harvard Business Review which resulted in the former Mrs Welch spilling the beans on his excessive peerquisites.
I'm afraid that my reaction, despite being a supporter of free enterprise, is to consider Thomas Piketty, the French economist, to have proven his case that capital in the 21st century flows to the richest 1% because the tax system is jigged in their favor and against the needs of the vast majority of the citizenry. He compares the inequality today to France before the Revolution and other countries during the 19th century, because the 20th century move to taxing the rich more than their poorer fellow-citizens has been reversed. GE rose to $10.73 today, up 0.15% despite the outrage shown even by the Financial Times.
More on the news for today. There will probably not be a blog over the weekend because I am locked out of my website and cannot fill in tables with earlier tables. When I start from scratch there are problems. However I will ask my Malaysian techie to come and if he is available you will see how brilliantly we performed in 2021.
A big thank you to the subscribers, so far two, who have sent renewal checks so I can pay my writers. At some point we will get back control of the website which was stupidly handed over to my husband (because he is getting emails not allowed to go to my own account.) I am getting another email account without the words global-investing.com and at some point bluehost will get my access back. Meanwhile you get a sub fulfilled by talkmarkets because I cannot see expiry dates. But of course once it is up and running we will instantly cut off anyone who has abused the system. Anyone with an expired sub will be instantly removed. Please send a check to Vivian Lewis, 35 Sutton Place, New York NY 10022 made out to Agorot Ltd, in a stamped envelope. Thank you.
Today's news:
*Microsoft was a victim of the SolarWinds cyber attack from Russia, according to Dow Jones. I own the stock. Putin's gangsters were able to view internal codes used to build software at MSFT, a new revelation. That means big tech is vulnerable across the board.
*I expected that the stock market will not top yesterday's record but what do I know? It did.
*Don't drink all your French champagne or German wines tonight or tomorrow. The Trump Administration imposed new tariffs on airplane parts and vino from the European Union because of subsidies hurting US plane-makers AKA Boeing.
Meanwhile Mitch McConnel scored a point against the democrats and Pres Trump because our new jobless numbers fell to under 800,000 for the second week in a row. We are back to November
*A deal to open the borders betwee Spain and Gibraltar despite Brexit means that Gibraltar is now part of the Schengen free movement zone. If any EU reader has a Gibraltar bank account please move it to Lichtenstein, Malta, or Switzerland for your own protection. Sterling hit a new high today against the greenback. numbers. But the people who applied for unemployment earlier are still in need.
Energy
*BP reported that its ironback 1 exploration well off the Australian west coast found no gas despite expectations. The hope was that a multi-billion cu ft find was coming but after drilling 6,618 meters down the well prospect proved a dry hole. It disappointed BP and its partners.
*Oil inventories in the US are down because of cold weather by 6.065 mn barrels, more than double last week's draw of 2.583 mn bbls. This despite holiday travel being curtailed. Lower inventories mean higher prices to come, particularly since drilling is lower during the hols. However during 2020 overall, oil consumption fell 20% according to Reuters. Oil prices fell after Exxon today wrote down $18-20 bn of upstream assets (exploration and production) to benefit this year. It may report a loss as a result.
*Nio is the top stock on the MarketBeat watchlist, with 532 new followers in the last 30 days. We sold 2/3 of our holding last month but NIO is still rising in the wake of hot electric vehicle maker TESLA. NIO gained 1.65% today at the opening.
*Canadian Solar (CSIQ) rose another 0.22% today to $50.70.
*Ormat for geo thermal emergy and storage rose 2.7%. ORA is Israeli owned but US incorporated.
Telcos
*Another top stock is AT&T, T, with 271 new followers according to the publication.
*Qualcomm rose another 1.34% because QCOM is making chips
*Canadian BCE is up0.23% today to US$42.98.
*Swedish Ericsson gained 0.5% today, ERIC.Finnish Nokia was flat, NOK.
*Vodafone, a UK earner of euros, fell 1%. VOD.
Drug Dealers
The new corona virus mutation has hit China. It is more contageous than the standard version.
*Most drug stocks are down but Bristol Myers is up 0.2%, a share I inherited from my late mother. She researched cancer drugs when her favorite sister (she had 4) developed breast cancer. I kept it in honor of them both.
*Japanese Eisai which is in the business of seeking an Alzheimer's cure, is up 1% to $71.8. It is also gaining because the yen is doing well. ESALY.
*Test maker Thermo Electron, a US firm, TMO, is the next top performing in the sector, up 0.75% to $465.22.
Funds and Banks
*Fibra Uno, FBASF, the Mexican REIT, fell 2.6% today to 22.3 MXN (pesos).
*Taiwan Fund gained 0.5% today hitting $30.42. It is a defiance of Xi Jinping whose navy is blocking Hong Kongers heading for Taiwan and arresting them.
*Spdr Gold, GLD, gained 35¢ or 2% at the opening today. It fell to $178.23 later but is still up.
*Sampo Oij of Finland rose 2.04%. SAXPY.
*Panama trade funder BLX, Banco Latino-Americano de Comercio Exterieur, is up 0.7%.
*Korea Fund, sold, gained 0.47%. KF.
*Zaibatsu Mitsubishi did not trade but Sumitomo went down 0.25%.
*Hong Kong insurer AIA Group Ltd, AAIGF rose 3.05% to $12.33.
*But Hang Seng Bank which runs the index fell 1.8% after local tycoon Jimmy Lao was jailed.
