What we’re reading (1/12)
“Investors Are Underestimating Inflation Again” (CNN Business). “Investors are holding their breath in anticipation of Thursday morning’s Consumer Price Index inflation report — arguably the most important piece of economic data so far this year. There’s a lot riding on the outcome — if inflation keeps falling, that could support a market rally, while higher-than-expected inflation could send stocks sinking.”
“Elon Musk’s Starlink Is Only The Beginning” (Vox). “Space internet has the reputation for slow service. With its questionable signal strength and hardly Netflix-friendly bandwidth, the internet that’s beamed down from low-Earth orbit is the kind of thing you only turn to as a last resort or if you’re stuck on a long-haul flight. But in 2023, satellite-based internet is getting a major revamp.”
“Apple CEO Tim Cook To Take A 40% Pay Cut This Year” (Wall Street Journal). “Chief Executive Tim Cook has asked for a big cut in compensation this year. Mr. Cook’s total compensation target for 2023 will be $49 million, the company said in a Thursday filing. It said that is more than 40% lower than his target compensation of 2022. The iPhone giant said its board committee on executive compensation took into consideration shareholder feedback as well as a recommendation from Mr. Cook in making the adjustment.”
“The Economics Of Non-Competes” (Marginal Revolution). “The value of noncompete clauses is easy to illustrate. Say you run a hedge fund. Many members of your trading team will have partial access to your firm’s trading secrets, and if they leave they can take those secrets with them. In the absence of noncompete agreements, firms would be more likely to “silo” information — becoming less efficient and less able to pay higher wages. Nondisclosure agreements for workers in such positions are common, but they are difficult to enforce — making noncompete agreements more relevant. How exactly might you find out if some other newly created hedge fund is using your trading algorithms?”
“Crypto’s Tax Shelter Problem” (Institutional Investor). “Bankman-Fried, the 30-year-old crypto wunderkind from California accused by U.S. authorities of money laundering, defrauding customers and lenders, committing securities and commodities conspiracy, and violating campaign-finance laws, seems to have been under the impression that he might sidestep U.S. agencies, regulators, and law enforcement from his beachy tax shelter idyll.”
