What we’re reading (10/18)
“Inflation: Persistently Transitory” (Charles Schwab). “If the global economy persistently goes from one transitory source of inflation to the next, it may keep inflation elevated for longer than markets currently anticipate. Following this year’s supply disruptions and recent climb in energy prices, markets may begin to price another potential source of inflation: workers demanding higher wages as strikes blanket the news. Yet, central banks’ attitude toward inflation has changed. This may mean that the lift to earnings from inflation could more than offset any compression on stock valuations from tighter financial conditions.”
“The Revolt Of The American Worker” (Paul Krugman, New York Times). “[s]omething…fundamental and lasting may be happening in the labor market. Long-suffering American workers, who have been underpaid and overworked for years, may have hit their breaking point…[w]hat seems to be happening instead is that the pandemic led many U.S. workers to rethink their lives and ask whether it was worth staying in the lousy jobs too many of them had.”
“A Secretive Hedge Fund Is Gutting Newsrooms” (The Atlantic). “In May, the [Chicago] Tribune was acquired by Alden Global Capital, a secretive hedge fund that has quickly, and with remarkable ease, become one of the largest newspaper operators in the country. The new owners did not fly to Chicago to address the staff, nor did they bother with paeans to the vital civic role of journalism. Instead, they gutted the place.”
“Rising Mortgage Rates Shift Lenders’ Focus To Home Buyers” (Wall Street Journal). “Lenders still packaged up hundreds of billions of dollars of refinance loans last quarter. But business is harder to come by these days, Mr. Menatian said. Instead of taking inbound calls, he has been phoning clients whose home values have risen enough that they can refinance out of their mortgage insurance policies.”
“China Tests New Space Capability With Hypersonic Missile” (Financial Times). “China tested a nuclear-capable hypersonic missile in August that circled the globe before speeding towards its target, demonstrating an advanced space capability that caught US intelligence by surprise. Five people familiar with the test said the Chinese military launched a rocket that carried a hypersonic glide vehicle which flew through low-orbit space before cruising down towards its target.”
