What we’re reading (10/23)
“Notes On A Statistical Scandal” (Financial Times). “Even a spreadsheet can become a victim of its own success. Just ask the World Bank’s Doing Business report. While many worthy publications from the World Bank are never downloaded, Doing Business has been a smash hit for years. No longer. Amid an ugly scandal about data manipulation that has left the head of the IMF, Kristalina Georgieva, fighting for her career, Doing Business has been cancelled.”
“WeWork Hits The Stock Markets” (WeWork). “After two years, a failed I.P.O., a plunging valuation and a pandemic that reset many workers’ relationships with the office, the co-working company WeWork [began] a new life [yesterday] as a publicly traded company. WeWork argues it’s a better company now. It has renegotiated or exited some 500 leases this year, saving over $400 million, according to its C.E.O., Sandeep Mathrani. And its deal to go public via a merger with a SPAC, BowX, will provide $1.3 billion in new capital.”
“Housing Is The Economy’s Energizer Bunny: It Keeps Going And Going” (CNN Business). “Even as some sectors of the economy remain muted, the housing boom keeps going and going. That's obviously good for builders, but it could also be great news for the broader economy and stock market — especially since this strength appears to be nationwide. ‘Residential is still pretty hot. Remodeling activity is good. Housing starts are good,’ said Mark Sheahan, CEO of Graco, which makes paint sprayers for home owners and contractors, on an earnings call Thursday. ‘I don't see any real negatives in the future. No storm clouds on the horizon, I would say, from our viewpoint,’ Sheahan added.”
“The Coming Electric Car Disruption That Nobody’s Talking About” (Bloomberg). “Making the massive batteries that line the bottom of electric cars promises to employ thousands. But where a conventional car’s engine and transmission have hundreds of parts, some electric-vehicle powertrains have as few as 17, according to the Congressional Research Service. That doesn’t take into account the radiators, fuel tanks or exhaust systems that electric vehicles don’t need. Once operating, an electric car has no spark plugs or oil that need changing or mufflers that wear out. And with so few moving parts, service stations could be relegated to changing tires and windshield wipers.”
“Powell Says Supply-Side Constraints Have Worsened, Creating More Inflation Risk” (Wall Street Journal). “Federal Reserve Chairman Jerome Powell indicated he is now somewhat more concerned about higher inflation and said that the central bank would watch carefully for signs that households and businesses were expecting sustained price pressures to continue. ‘Supply-side constraints have gotten worse,’ Mr. Powell said Friday at a virtual conference. ‘The risks are clearly now to longer and more-persistent bottlenecks, and thus to higher inflation.’”
