What we’re reading (3/9)
“Oil Drops 12% For Worst Day Since November As Wild Ride Triggered By Russia Disruption Continues” (CNBC). “The move in oil lower came amid indications of possible progress by the U.S. in encouraging more oil production from other sources. Reuters reported that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+.”
“Food Crisis Grows As Spiralling Prices Spark Export Bans” (Reuters). “The conflict in Ukraine is threatening global grain production, the supply of edible oils and fertiliser exports, sending basic commodity prices rocketing and mirroring the crisis in energy markets. Palm oil is the world's most widely used vegetable oil and is used in the manufacture of many products including biscuits, margarine, laundry detergents and chocolate. Palm oil prices have risen by more than 50% this year.”
“How The Putin Shock Might Affect The World Economy” (Paul Krugman, New York Times). “[F]ood may actually be a bigger issue than energy. Before Putin’s war, Russia and Ukraine combined accounted for more than a quarter of the world’s wheat exports. Now Russia is sanctioned and Ukraine is a war zone. Not surprisingly, wheat prices have shot up from less than $8 a bushel before Russia began massing its forces around Ukraine to around $13 now.”
“January Was The Eighth Straight Month Where More Than 4 Million Americans Walked Out Of Their Jobs” (Insider). “[It’s] an extraordinary streak, both for its length and the intensity of nationwide quitting. Monthly quits trended at about 3.5 million before the pandemic rocked the US economy. Walkouts have now landed well above that level for the better part of the last year. Record-high quits were also seen as recently as November, with 4.5 million workers leaving their jobs that month alone.”
“Amazon Board Approves 20-For-1 Stock Split, $10 Billion Share Repurchase” (Wall Street Journal). I guess Amazon thinks the market is mispricing its shares. On the one hand, they probably have better insight into the company’s prospects. On the other hand, managers’ forecasts tend to biased relative to truth.
