What we’re reading (10/8)
“America's CEOs Are Losing Confidence In The Economy” (CNN Business). “US business leaders are still upbeat about the economic recovery. But they're not as confident as they were just a few months ago, and they blame the Delta variant and a super tight labor market for the drop in sentiment. The Conference Board, a leading business research think tank, reported Thursday a steep slide in its CEO confidence index for the third quarter.”
“Builders Hunt For Alternatives To Materials In Short Supply” (Wall Street Journal). “Shortages of key construction materials are forcing some builders and contractors to turn to substitutes and hunt for alternative suppliers as they rush to meet high demand for new housing. Construction companies are looking for replacements and new sources for everything from wood paneling to ceiling joists to pipes, saying that potentially higher costs and added complications to design and construction can be preferable to putting a project on hold for months while waiting for planned supplies.”
“Banks Don’t Want Your Money Right Now” (Vox). “US interest rates and inflation are on the rise again, which means Americans can expect to pay higher rates for mortgages, auto loans, and credit cards. But don’t expect it to lead to higher interest on your savings account anytime soon. Banks don’t want your money. That’s why they’re offering such low rates.”
“Yet Another Covid Victim: Capitalism” (New York Times). “Professor Stiglitz — winner of the 2001 Nobel Memorial Prize in Economic Sciences, a former chief economist at the World Bank and a professor at Columbia University — said in a pre-conference interview that the private sector had proven incapable of responding alone to the global health challenge and that government had a big role to play.”
“Want to Pick the Best Stocks? Pick the Happiest Companies.” (Institutional Investor). “According to a paper published on October 1, a portfolio that includes companies with high employee-satisfaction ratings can measurably outperform a portfolio that doesn't feature such firms. And these returns were even better in crisis periods. Researchers Hamid Boustanifar and Young Dae Kang at EDHEC Business School in Nice, France, said the paper, entitled Employee Satisfaction and Long-run Stock Returns, 1984-2020, builds on a similar 2011 study by expanding the dataset and controlling for more variables.”
