What we’re reading (10/23)
“Surge In Treasury ‘Term Premium’ Warns Of Rising Bond Risks” (Bloomberg). “The US Treasury market, already mired in one of its worst losing stretches of the year, is flashing a fresh warning sign of mounting risks as yields surge.”
“‘Back to Starbucks’ Could Have A Retro Feel—And Valuation” (Wall Street Journal). “A reset might help Starbucks get its mojo back but, even if it rights the ship, it probably can’t grow at that pace again, and that should be reflected in its share price. Back in 1998, Starbucks was already so ubiquitous that the Onion ran a satirical story with the headline ‘New Starbucks Opens in Restroom of Existing Starbucks.’ Yet it had fewer than 2,500 stores at the time. Today it has three times as many in China alone, a market it was just entering, and about 40,000 worldwide.”
“The US Is Facing A Drugstore Graveyard As Stores Close. Filling The Leftover Spaces Is The Next Challenge.” (Business Insider). “Thousands of drugstores are expected to close over the next several years, including CVS, Walgreens, and Rite Aid stores. Walgreens CEO Tim Wentworth said in June that the retail pharmacy industry was ‘largely overbuilt for where the future was going to be.’”
“OpenAI Hires Former White House Official As Its Chief Economist” (New York Times). “The addition of a chief economist is indicative of OpenAI’s enormous ambition and where its executives see their company in the tech industry’s pecking order. Silicon Valley giants like Google and Facebook hired seasoned economists early in their transformations from promising start-ups into trillion-dollar companies whose technologies changed global markets.”
“Cash-Strapped Colleges Are Selling Their Prized Art And Mansions” (Bloomberg). “Selling cherished assets is a tricky calculus. While the funds generated can provide immediate relief, the effect of the disposals may hurt schools’ appeal, ultimately deepening their plight without even solving structural issues. After all, these sales don’t lead to a steady stream of revenue they can rely on, said Emily Raimes, a higher education analyst for Moody’s Ratings.”
