A&G Financial Management Week in Review September 22, 2017
“Once you choose hope, anything's possible”. ~Christopher Reeve
Happy First Day of Fall. 🍂
Things are quiet.
With the worst hurricane to hit the US in over a decade and ongoing tensions with North Korea, Mr. Market continues to climb the wall of worry in a calm fashion. Bottom line is, the global economy continues to improve, led by strong corporate earnings growth and modest consistent economic growth. I don't expect things to remain this calm over the rest of the year, but so far 2017 is chillin.
Toys R Us Files for Chapter 11 Bankruptcy
Toys R Us late Monday said it has voluntarily filed for chapter 11 bankruptcy. Executives are blaming outstanding debt and slowing sales due to online competition. (I think that has become code for Amazon). In a statement, the retailer said it plans to use bankruptcy to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth.
Burger Flipping Robot Flippy Getting First Gig
Burger flipping robot "Flippy" is the new attraction at Caliburger restaurant at its Pasadena location. Flippy is an industrial robotic arm replacing clasping claw with a spinning spatula. The restaurant chain is planning to assign robots for burger flipping at its other locations. Caliburger was an investor for the startup that created Flippy. So it’s enjoying a six month exclusive period. Miso Robotics created Flippy the robotic kitchen assistant. Artificial intelligence is making its way into our lives.
FED Stays the Course
The big news on Wednesday wasn't the Federal Reserve's decision to start reducing its balance sheet in October. That was expected. The big news was that twelve of the sixteen members of the Fed's interest-rate setting body – the Federal Open Market Committee – think the Fed will be raising interest rates by at least 25 basis points later this year. Don’t think the market know how to handle that. Banks have done well and technology companies have been sold over the past two day.