What we’re reading (10/22)
“Just How High Could The Dow Go?” (New York Times). “It can be simultaneously true that capital has enjoyed an enviable position and that markets going up is not a sign of a rigged system. There are now about 4,000 publicly traded companies on the major exchanges in the United States — 20 years ago, there were around 7,000. Capital markets reward those that excel in eking out double-digit growth in a single-digit world. Only the strongest companies survive.”
“It’s Time For Americans To Buy Less Stuff” (Vox). “When the stuff we want is so hard to get ahold of, why go to such great lengths to buy it? Consumers have the option to not order items manufactured overseas, to source things locally from small businesses or artisans. We also have a choice that eliminates the potential for shipping or supply chain mishaps: We can just buy less.”
“Chipotle Earnings Crush Estimates As Sales Jump 22%, Higher Menu Prices Offset Rising Costs” (CNBC). “Chipotle Mexican Grill on Thursday reported quarterly earnings that crushed Wall Street’s estimates as its menu price increases helped the chain weather higher costs. Shares of the company rose more than 1% in extended trading…Chipotle is still experiencing some staffing challenges amid the labor crunch that’s hitting the broader industry. But Chief Technology Officer Curt Garner said in an interview that Chipotle was able to keep that from hitting its sales for the most part by keeping its restaurants open.”
“Deutsche Bank Whistleblower Gets $200 Million Bounty For Tip On Libor Misconduct” (Wall Street Journal). “A whistleblower whose information helped U.S. and U.K. regulators investigate manipulation of global interest-rate benchmarks by Deutsche Bank AG was awarded nearly $200 million for assisting the probe, according to people familiar with the matter. The payout is the largest ever by the Commodity Futures Trading Commission, which along with the Justice Department and U.K. Financial Conduct Authority settled enforcement actions against Deutsche Bank in 2015.”
“A Real-Time Revolution Will Up-End The Practice Of Macroeconomics” (The Economist). “[T]he age of bewilderment is starting to give way to greater enlightenment. The world is on the brink of a real-time revolution in economics, as the quality and timeliness of information are transformed. Big firms from Amazon to Netflix already use instant data to monitor grocery deliveries and how many people are glued to “Squid Game”. The pandemic has led governments and central banks to experiment, from monitoring restaurant bookings to tracking card payments. The results are still rudimentary, but as digital devices, sensors and fast payments become ubiquitous, the ability to observe the economy accurately and speedily will improve. That holds open the promise of better public-sector decision-making—as well as the temptation for governments to meddle.”
