What we’re reading (5/25)
“The Great Commodities Boom Hits A Chinese Wall” (CNN Business). “In recent weeks, investors have poured money into bets on raw materials like steel and iron ore, confident that limits to supply and massive post-pandemic demand would trigger one of the biggest price spikes in decades. Now, thanks to action from China, the frenzy may be on hold. What's happening: Five top Chinese regulators announced Monday that they had jointly summoned key companies in the iron ore, steel, copper and aluminum sectors over the weekend…to step up regulation and closely monitor commodities markets, warning that there would be ‘zero tolerance’ for speculation or market manipulation.”
“Bitcoin Traders Using Up To 100-To-1 Leverage Are Driving The Wild Swings In Cryptocurrencies” (CNBC). “Bitcoin’s aggressive moves are being driven by much more than the next China crackdown or Elon Musk headline. Traders taking excessive risk in the unregulated cryptocurrency market being forced to sell when prices go down were in large part responsible for last week’s 30% drop in prices and outages for major exchanges, according to analysts. A burgeoning bitcoin lending market is also adding to the volatility.”
“900 People A Day Are Moving To Florida, Many Fleeing ‘Tax Hell’ In New York And New Jersey, The State's CFO Said” (Business Insider). “About 900 people a day are moving to Florida, the state's CFO, Jimmy Patronis, told Fox Business on Monday, attributing it mainly to higher taxes in states such as New York and New Jersey. Migration to Florida had steadily risen over the past decade before booming during the coronavirus pandemic as remote working and the warm climate drew people to the Sunshine State. Florida also has no personal income tax. In comparison, New York unveiled proposals in April to bump up its income-tax rates for its wealthiest residents. Patronis told Fox that states like New York and New Jersey were ‘financial train wrecks.’”
“If You Thought Working From Home Was Messy, Here Comes Hybrid Work” (Wall Street Journal). “It took months for bosses and employees to adjust to working remotely in the pandemic. The next era of work might be even more messy. Companies are laying down new rules and setting expectations for hybrid work as some workers come back in and others remain out of office…after months of discussions, big employers from Humana Inc. in Louisville, Ky., to Nike Inc. near Portland, Ore., say they are cementing plans to return to corporate complexes after Labor Day[.]”
“Global Uncertainty Is On The Wane” (The Economist). “The covid-19 pandemic created a wave of economic uncertainty around the world in 2020. But at the start of this year, even as infections mounted globally, a sense of confidence appeared to be returning. Such is the signal recorded by the World Uncertainty Index, a quarterly measure of global economic and political turmoil. It hit a record high in the first quarter of 2020, but fell sharply in the three months to the end of March this year, touching a 14-year low.”
