What we’re reading (11/22)
“Ray Dalio Says, ‘If You Worry, You Don’t Have To Worry’” (DealBook). “Today, Mr. Dalio is most concerned about the end of the American Empire and the beginning of another Chinese Empire, a transition he believes could lead to war. He writes that Americans misunderstand the Chinese and their own place in history…Ultimately he concludes that ‘[i]f the US continues to decline and China continues to rise, what matters most is whether or not each can do so gracefully.’”
“American Inflation: Global Phenomenon Or Homegrown Headache?” (The Economist). “Although consumer prices in America rose by 6.2% in October compared with the year before, faster than in other big rich economies, year-on-year comparisons are flawed because of variations across countries in the timing of their pandemic-induced slowdowns and recoveries. The clearest comparison is instead to look at prices today and those 24 months ago. On this basis, consumer prices are up by about 7.5% in America, more than two percentage points higher than anywhere else in the G7 group of rich countries[.]”
“Fed Looks Likely To Consider Faster Drawdown In Asset Purchases” (Bloomberg). “A faster reduction in the so-called quantitative easing program would give policy makers an earlier opportunity to lift interest rates from near zero should they deem that necessary to keep the economy from overheating. Officials have vouchsafed a reluctance to raise rates and tighten credit at the same time they’re pumping money into the economy though bond buying.”
“Bank Stocks Poised For Best Year Since Global Financial Crisis” (Financial Times). “An MSCI benchmark tracking global bank shares — measured in US dollars — has jumped by around 30 per cent so far in 2021, a stronger performance than the roughly 20 per cent rise for the index provider’s all-sector gauge…US banks in particular have been buoyed by healthy volumes in their trading businesses in recent months, along with ‘extraordinary’ deal advisory activity and the release of reserves set aside to cover bad debts, said Scott Ruesterholz, a fund manager at Insight Investment. ‘It’s a phenomenal environment to be operating in.’”
“Chobani Is Going Public. Its ‘Anti-CEO’ Founder Won’t Be The Only Employee Who Could See A Big Payday” (Forbes). “For most people, big payouts from initial public offerings call to mind software engineers—not yogurt factory workers. But when Chobani goes public, some of its hourly workers could stand to make $1 million or more in stock awards, an uncommon outcome in an industry rarely lauded for its treatment of workers.”
