The 3Cap // UPS Drone Deliveries

What’s up dough? I’m Ryan Grace it’s October 2nd 2019 and this is the 3Cap. Today we’re talking about a rough start to the month, Libra possibly failing to launch, and U.P.S. asking the first license for drone deliveries. Given the sell-off in the market yesterday and how it’s continuing again today. Goldman might be right. Could be a wild month. Last week we highlighted a report from the bank showing that volatility tends to be around 25% higher during the month of October, and this is going all the way back to 1928. Yesterday the S&P 500 ETF, SPY fell over 1%, following what many might consider, some pretty crappy economic data. The ISM manufacturing index which is one gauge of the strength of the economy dropped a 47.8 compared to a reading of 50 that many analysts were estimating. An ominous sign which tends to bring that R word to people’s minds. A level below 50 typically indicates a slowdown in manufacturing and to make matters worse, this was the lowest level since the end of the great recession in June of 2009. Might be too quick to jump to doom and gloom conclusions. But looking ahead on Thursday we get the ISM non-manufacturing index which measures the service sector and on Friday we get the jobs report for the month of September. So we’ll be watching these closely for any more signs of an economic slowdown which if it is happening could mean the Fed cuts interest rates again this month. Is it possible Facebook cryptocurrency Libra never even launches? Yesterday The Wall Street Journal reported that some of the existing backers of Facebook crypto project are reconsidering whether to even stay involved with it. Visa, MasterCard and others have declined requests from Facebook to publicly support Libra following scrutiny from regulators in both the US and Europe. Governments are concerned about the lack of details Facebook has provided to this point, and the fact that Libra could be used for money laundering or terrorist financing. One of the major focal points of Libra was a consortium of financial partners Facebook had lined up to back it but none of these institutions have actually signed on yet. If they don’t, you’ve got to wonder if it’ll even get off the ground. But the symbol is FB if you want to trade it. U.P.S. has received the first license from the FAA for operating a drone airline. The U.P.S. program called flight forward is currently operating on college and hospital campuses with drones that can fly up to six miles carrying a payload of five pounds. But this license could be the first step in a full scale drone delivery network. The FAA certification allows U.P.S. drones to carry fifty five pounds and fly at night which could eventually enable U.P.S. to fly from city to city or even across the country. This could open up new revenue possibilities for the company but unfortunately could also put thousands of its existing delivery drivers out of work in a logistics network in the sky is still a ways away. But add UPS to your favorites to follow it. That’s it. I’m Ryan Grace and that’s a 3Cap, check back again to stay on top of what’s going on in the market.

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