What we’re reading (6/10)
“U.S. Inflation Hit 8.6% In May” (Wall Street Journal). “U.S. consumer inflation reached its highest level in more than four decades in May as surging energy and food costs pushed prices higher, with little indication of when the upward trend could ease.”
“Tesla Files For 3-For-1 Stock Split” (CNBC). “Tesla just filed its annual proxy statement with the SEC and revealed it plans a three-for-one stock split, and that board member Larry Ellison does not plan to stand for re-election.”
“State Street Agrees: Buying Credit Suisse Would Be Stupid” (Dealbreaker). “Would you like to buy a bank that’s issued six profit warnings in the last seven quarters? One nursing not one but two multi-billion dollar risk-management disasters, to which it responded with a bit of alleged collusion (that didn’t work) and the apparently shocked realization that a major global bank needs someone looking after counterparty risk, especially in not-especially-profitable business lines? One that’s essentially headquartered in court, where its track record is no better than its quarterlies? One where new executives are greeted on their first day by the police? One that does loads of spying, just not on the right people (despite a client list chockful of unsavory spymasters)? Whose reaction to the Russian sanctions was (allegedly) to kindly ask clients to shred everything? Whose shareholders are itching to sue the pants off of everybody involved? Whose own CEO thinks that buying it would be "really stupid"? Yea, State Street doesn’t, either. Even at this price.”
“One Way To Reduce The Hit Of Higher Mortgage Rates” (CNN Business). “The average 30-year fixed-rate mortgage has been hovering above 5% for more than a month, taking a toll on prospective homebuyers. While many hopeful buyers have bowed out of the market for now, some are exploring what once seemed like an unlikely option: adjustable rate mortgages, or ARMs.”
“Even Deep-Pocketed Buyers Are Starting To Back Away From The U.S. Housing Market” (Wall Street Journal). “‘There’s a sense that prices are frothy in many markets across the country,’ said Ryan Serhant, CEO of real-estate brokerage Serhant, who says the market is normalizing after a period of rapid appreciation, fueled by heightened demand. ‘You’re now starting to see buyers become a little hesitant to be caught at the top,’ he said.”
