What we’re reading (1/29)
“Why Oil Prices Rose After Shrugging Off A Crisis” (Wall Street Journal). “Futures on Brent crude gained more than 6% last week to settle at $83.55 a barrel Friday, their highest level since early November. The rise came after winter storms slammed U.S. oil production and new data showed the country’s economy has remained resilient, suggesting robust demand for fuel ahead. The jump roused an oil market that has been surprisingly sleepy, given the growing threat that the Israel-Hamas war will spread into a wider conflict. On Monday, Brent crude retreated 1.4% despite another attack by Yemen’s Houthi rebels on an oil-carrying vessel over the weekend.”
“What Evergrande’s Collapse Might Mean For Global Business” (DealBook). “A Hong Kong court on Monday ordered the liquidation of Evergrande, the heavily indebted Chinese property giant. The decision comes two years after the company defaulted, setting off a financial crisis at other developers and adding to the challenges facing the world’s second-largest economy.”
“What About Gradualism?” (EconLib). “[W]hat did we learn from the 1982 experience? Did this show that gradualism doesn’t work? Not exactly, as a necessary precursor for gradualism never occurred. The 1982 recession showed that gradualism is not easy to implement, but it provided no evidence on whether it would work if implemented. So what is the necessary precondition for gradualism to work? The central bank must engineer a gradual slowdown in the growth rate of NGDP. That’s the only reliable method for achieving a ‘soft landing’.”
“Big Tech Is Thriving Despite The Layoffs” (Axios). “Microsoft announced this past week that it would cut 1,900 workers from its gaming division. Microsoft recently closed its acquisition of Activision Blizzard, which is where most of the cuts — representing about 8% of the company's total gaming workforce of 22,000 — are landing. Google also announced a smaller round of layoffs earlier this month and said some cuts would continue to be made throughout the year. Google and Microsoft's stocks both hit record highs this week.”
“FanDuel Parent Flutter Lists On The NYSE, Challenging DraftKings As Sports-Betting Pure Play” (CNBC). “FanDuel parent Flutter listed on the New York Stock Exchange on Monday, offering U.S. investors an alternative to the biggest pure play in sports betting, DraftKings. It’s a secondary listing for the international sportsbook, which will retain its primary listing on the London Stock Exchange and inclusion in the FTSE 100 index. But Flutter’s most important market for revenue and growth is the United States, where FanDuel is the market share leader. In the fourth quarter, FanDuel had 43% market share based on gross revenue and 51% based on net revenue.”
