General Motors To Close Factories
Well-known US car producer General Motors has announced plans to stop production at 5 North American factories. Along with the almost 14,000 jobs being cut, they also plan to stop production of three foreign plants. GM says they will end production of car models such as the Buick LaCross and the Chevy Impala.
This decision comes as a reaction to the rising costs and the decline of car purchases in the united states. One such cost is the new tariff on steel, which rose production cost by approximately $1Bn. This move is expected to save GM $6Bn over the next two years. In response to this, GM’s stock rose 5% since the announcement.
United Technologies Will Split
United Technologies announced on Monday that they have plans to split into three separate companies. This follows a recent acquisition of aviation device manufacturer Rockwell Collins for $23Bn last week. This split is estimated to be complete by 2020 and will cost $2-3Bn.
The company will split into United Technologies, which will manufacture aerospace and defense supplies. Next, Otis, the manufacturer of elevators and escalators, will be the second company. Carrier, the third and final, will manufacture the air conditioning units. There is no comment on whether or not jobs will be lost in the split.
Microsoft Overtakes Apple
Microsoft has finally passed Apple as the worlds most valuable public traded company. The trading floor reported that Microsoft has taken over Apple’s spot narrowly, following falling stock prices from Apple. This comes as no surprise, as a disconcerting last quarter and less-than-expected sales for their new flagship iPhone.
Where Apple is falling, Microsoft is rising. Their increased emphasis on cloud storage and cloud computing has made them more attractive to not only their consumers, but investors as well. With this emphasis on enterprise instead of consumers, Microsoft is doing well without risk of failure.
New Tariffs Could Cost Homeowners
A new study has revealed that President Trump’s new tariffs could end up costing American homeowners more money. Higher prices, lower wages, and less interest return are all possible responses to the tariffs. Each of these could end up costing Americans almost $1,000 each, adding up to a staggering $17,000 per household by 2030.
This study also predicts heavy job loss and a loss of almost $370Bn from the US GDP by the end of this year, totaling to $2.8 trillion by 2030. President Trump’s tariffs could increase even higher, if negotiations with China escalate to the point where he feels it’s necessary.
Amazon Announces Cloud Communication Upgrades
Amazon has recently announced a new satellite cloud connection service. This marks the company’s first move into space hardware to increase the industries growth. They plan to build a network of satellites, manned by a series of ground stations to augment the date flowing from space to Earth communication. Amazon has also teamed up with Spire, a space communication company that builds and operates small satellites.
They plan to improve Spire’s existing ground stations and satellites as well as build and launch new ones.