What we’re reading (6/13)
“Shell Considering Sale Of Holdings In Largest U.S. Oil Field, Worth Up To $10 Billion” (CNBC). “Oil giant Royal Dutch Shell is reviewing its holdings in the largest oil field in the United States for a possible sale as the company looks to focus on its most profitable oil-and-gas assets and grow its low-carbon investments, according to sources familiar with the matter.”
“In Defense Of SPACs” (DealBook). “Special purpose acquisition companies, better known as SPACs, have single-handedly revived the market for initial public offerings, taking small companies public by the dozens. So far this year, there have been roughly twice as many listings of these blank-check companies as traditional offerings. And since these cash shells — which raise money in an I.P.O. on the promise of merging with a private company within a couple of years, taking it public — often target emerging tech companies, that market has returned to its glory years.”
“Markets Are Leaving Little Room For The Fed To Be Wrong On Inflation” (Wall Street Journal). “[I]nvestors need to consider the possibility that the Fed is wrong, too. The risk that inflation continues to overshoot is clearly much higher than usual, while the risk of undershooting is lower. Instead of leaving a larger margin of error around forecasts, bond markets are leaving little, perhaps none, with a yield of just 1.45% on the 10-year Treasury. The bond market’s best guess on long-term consumer-price inflation, the break-even rate for the five years starting in five years’ time, is down from a peak of 2.38% to just 2.23%; that implies inflation slightly below the Fed’s target on its preferred price gauge.”
“The Fed Says Inflation Is Transitory, But These 10 Companies Have Already Said They'll Pass Along Rising Costs To Customers” (Business Insider). “Whatever side of the argument investors land on [re: whether current inflation is transitory or permanent], one thing is clear, dozens of companies are raising prices due to the increasing costs of basic commodities. From Coca-Cola to Campbell Soup, the majority of these price increases have come from consumer staples companies that are most affected by commodity costs.”
“The Telegram Billionaire and His Dark Empire” (Der Spiegel). “Telegram isn’t just a WhatsApp with different roots. The service touts itself as a platform that is beyond the reach of states and authorities, a place where anyone can write and make whatever claim they want. This attracts conspiracy theorists, like Germany’s "Querdenker” movement, right-wing extremists, drug dealers and con artists. It doesn’t take much searching to find a "hit list” with the names of members of the German parliament on it. Counterfeiters use the app to peddle fake COVID-19 vaccination cards, dealers use it to sell all kinds of drugs. Crimes are openly and visibly planned and committed on Telegram. The app has become the equivalent of a darknet in your pocket.”
