What we’re reading (10/7)
“Activist Starboard Value Takes $1 Billion Stake In Pfizer” (Wall Street Journal). “Pfizer had a market value of about $162 billion as of Friday. Its shares have been roughly cut in half from a record high notched in late 2021 after the company delivered the world’s first Covid-19 vaccine. They are little changed so far this year, compared with a 21% rise in the S&P 500.”
“New titans Of Wall Street: How Jane Street Rode The ETF Wave To ‘Obscene’ Riches” (Financial Times). “Last year was the fourth straight year that Jane Street generated net trading revenues of more than $10bn, according to investor documents seen by the Financial Times. Its gross trading revenues of $21.9bn were equivalent to roughly one-seventh of the combined equity, bond, currency and commodity trading revenues of all the dozen major global investment banks last year, according to Coalition Greenwich data. ‘The amount of money they make is almost obscene. And that comes from handling instruments that many other people don’t want to touch,’ said Larry Tabb, a longtime analyst of the industry who now works at Bloomberg Intelligence. ‘That’s where the greatest profits are, but also the greatest risks.’”
“Can AI Pick Stocks? 5 AI Investing Apps To Try” (U.S. News & World Report). “Artificial intelligence is helping companies run more efficiently and offer more choices for their customers. The technology can minimize human errors and reduce operating costs, leading to higher profits. It can make people's lives easier with personalized product recommendations, enhanced cybersecurity and quicker access to relevant information. Some investors are also turning to new AI tools for stock picks and advice on how to manage their portfolios.”
“Tennessee’s HPR Law And Its Transformation Of Nashville’s Housing Market: A Model For Other States” (Mercatus Center). “Since the mid-2000s, Nashville, Tennessee, has undergone a housing boom that created thousands of new homeownership opportunities in established urban districts. Among the nation’s 50 largest metropolitan areas, Nashville now ranks second for having the most recently built, single-family, attached and detached homes for sale within five miles of the central business district…Charles Gardner and Alex Pemberton examine the obscure state law that rejuvenated Nashville’s aging neighborhoods and show how passing similar legislation might boost housing supply in other cities and states as well.”
“Homeowners Hit By Helene Are In For An Insurance Claim Shock” (Wall Street Journal). “Helene is one of the deadliest and most destructive hurricanes to hit the U.S. in recent years, with property damage pegged at $15 billion to $26 billion by ratings firm Moody’s. The insured loss, however, will likely be at the lower end of initial forecasts, which ranged from around $5 billion to $15 billion, according to John Neal, chief executive of the Lloyd’s of London insurance marketplace. Much of the shortfall is because typical home insurance policies don’t cover flooding, and most people don’t have separate flood insurance. Another reason is an increase in coverage restrictions.”
