What we’re reading (6/21)
“The Death Of Car Ownership: This $30 Trillion Trend Could Kill The Auto Industry” (OilPrice.Com). “The idea of recurring revenue has been around a long time, but the past three years have seen it become a huge megatrend. When you apply it to the auto industry, you could get a serious disruptor of our views of car ownership. Just like Adobe made it possible for so many more people to use its high-end software packages, so might car subscription services make it that much easier for people to drive a car--or a second (or third) vehicle.”
“Global Markets Adapt To A Change In The Federal Reserve’s Tone” (The Economist). “[I]nvestors will ask whether the shift signalled by the Fed warranted such strong reactions. It is possible that markets overdid it. When many investors hold the same portfolio of positions, they can be forced to bail out in a hurry if markets move violently against them. This liquidation of positions can exacerbate volatility. In fact, there are reasons to think the great reflation trade has further to run: the full reopening of the American economy is still in its early stages and the end of 2022 is a long way off.”
“An Inflation Storm Is Coming For The U.S. Housing Market” (MarketWatch). “The primary solution to address runaway inflation in housing will be to build more homes — something that’s easier said than done…[the] challenges run the gamut from the high cost of lumber to the lack of skilled workers to complete construction projects. Another factor: Zoning regulations across the country prevent the construction of more dense housing in many cities, effectively driving up home prices and rents in the process.”
“American Airlines Canceling Hundreds Of Flights Through Mid-July In Part Due To Labor Shortages” (CNN Business). “American Airlines is canceling hundreds of flights through at least mid-July as the company strives to maintain service in the midst of massively increasing travel demand while the coronavirus pandemic continues to recede in the United States, according to a spokesperson from the airline.”
“IRS: Ransomware Payments May Be Deductible” (Axios). “The federal government for years has recommended that companies do not pay criminals during ransomware attacks, but the feds have a consolation for those who do pay: the ransoms may be tax deductible…[t]he IRS offers no formal guidance on ransomware payments. But multiple tax experts interviewed by AP said deductions are usually allowed under law and established guidance.”
