What we’re reading (11/15)
“Inflation Is Killing The Dollar Carry Trade In Emerging Markets” (Bloomberg). “A short-lived reprieve for emerging-market carry trades funded in dollars looks to be over, with an upsurge in U.S. inflation making the outlook increasingly treacherous. A Bloomberg index of these bets has dropped more than 4% in the past two months, the biggest slide since March 2020 for a strategy of borrowing in the greenback and investing in developing-nation currencies. The quickest U.S. inflation in three decades is putting pressure on the Federal Reserve to tighten, raising the prospect of higher costs for dollar borrowers, and less extra yield -- or carry.”
“Fed’s Kashkari Expects Higher Inflation Continuing Over Next Few Months” (Reuters). “Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday he expects higher inflation continuing over the next few months but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary. ‘The math suggests we're probably going to see somewhat higher readings over the next few months before they likely start to taper off,’ Kashkari told CBS News’ “Face the Nation” in an interview on Sunday.”
“As American Workers Leave Jobs In Record Numbers, A Closer Look At Who Is Quitting” (Wall Street Journal). “American workers’ stampede toward the exits hasn’t let up. New data puts a finer point on who, exactly, is leaving jobs these days. Workers resigned from a record 4.4 million jobs in September, according to Labor Department data, and new surveys show that low-wage workers, employees of color and women outside the management ranks are those most likely to change roles. The findings signal that turnover isn’t evenly spread across the U.S. workforce even as employers across industries struggle to fill a variety of roles.”
“The Rise Of The Anti-Woke ETFs” (Bloomberg Quint). “A new batch of ETFs seeks to appeal to right-leaning investors who want an alternative to ‘woke’ Corporate America and ESG activism. While political-themed ETFs aren't a new idea, they've never really managed to attract meaningful assets. With Americans more polarized than ever before, could this be the moment that these ETFs actually find an audience?”
“Americans Are Still Buying Up A Storm” (CNN Business). “Consumer spending continues to power the US economy. Whether it's to buy a new house or just a Squid Game plush toy from Amazon (AMZN), people still seem willing to shell out their hard earned cash for stuff. Retail sales in the United States soared more than expected in September and figures for August were revised higher to show a bigger jump than initially reported. October numbers will be released Tuesday. More healthy gains are expected, despite lingering worries about rising prices and supply chain disruption.”
