What we’re reading (5/22)
“Antitrust Cops Say BlackRock, Other Fund Giants May Have Hurt Coal Competition” (Wall Street Journal). “Large institutional investors who own shares in rival companies risk violating antitrust laws if they use their influence to affect how those businesses compete, U.S. antitrust enforcers argued Thursday for the first time. The Justice Department and Federal Trade Commission made those views public by submitting a brief in a case filed last year by Texas Attorney General Ken Paxton and other Republicans against BlackRock, State Street and Vanguard Group. The federal government’s filing, known as a statement of interest, says the asset managers’ holdings of multiple companies in the coal industry—known as common ownership—could violate competition laws.”
“Jamie Dimon Says The US Is Still At Risk Of A Fate Worse Than Recession” (Business Insider). “‘I think there's a chance you'll have stagflation,’ Dimon said, adding that he’s not predicting such a scenario necessarily but that he wants to be prepared. ‘I think global fiscal deficits are inflationary. I think the remilitarization of the world is inflationary. The restructuring of trade is inflationary,’ he said, adding that the sharp decline in oil prices could be a deflationary offset.”
“Japan’s Core Inflation Climbs To 3.5%, Highest In More Than 2 Years” (CNBC). “Japan’s core inflation accelerated to 3.5% in April, government data showed Friday, bolstered in part by surging rice prices, as the central bank considers pausing its rate hike posture to assess the impact of U.S. tariffs. The core inflation figure, which strips out prices for fresh food, was higher than expectations of 3.4%, according to economists polled by Reuters, rising from 3.2% in the previous month and marking the highest level since January 2023.”
“What Makes An Asset ‘Safe’?” (Joachim Klement). “[T]he lack of ingrained investor base helps to explain why European supranational bonds trade at higher yields than German or Dutch government bonds, even though the European bonds are guaranteed by all EU member states, not just one, which should make them safer. And it is this psychological disconnect that makes these supranational bonds the safe asset for banks and funds, while national government bonds are the safe asset for private investors.”
“An Ode To The Penny” (Wall Street Journal). “After a lifespan nearly as long as the nation itself, America’s one-cent coin will begin to fade from the money supply. The U.S. Mint has ordered its last batch of the blanks used to mint the coins, and the Treasury expects to stop putting them into circulation early next year. The penny’s reputation has shifted over more than two centuries. At times a symbol of thriftiness, practicality and even luck, the penny more recently has come to symbolize wasteful government spending.”
