What we’re reading (6/3)
“Online Banks Are Winning The Deposit War” (Wall Street Journal). “Deposits in the first quarter fell from December at regional-bank powerhouses such as U.S. Bank, Truist Financial and Citizens Financial. They were down more sharply at the smaller regional banks that have been under investor scrutiny, like Western Alliance and PacWest. But deposits were up quarter over quarter at Ally Financial and Goldman Sachs Group’s online bank Marcus, which don’t have branch networks. Deposits were also up at Capital One, which has far fewer branches than the other big regionals.”
“Markets Sense The Inflation ‘Clock Is Running’” (Deutsche Bank). “Over the past week or so, 5y5y breakevens and inflation swaps have risen, particularly relative to the levels implied by fundamental drivers like oil prices. Our models show the highest positive residuals for these market gauges versus oil – consistent with an inflation premium embedded in the former – in quite some time. Indeed, 5y5y inflation swaps are the furthest above levels implied by oil since 2017.”
“Will a Dollar General Ruin A Rural Crossroads?” (New York Times). “Anne Hartley’s brick house in Ebony, Va., overlooks windswept fields, a Methodist church, a general store and the intersection of two country roads, a pastoral setting that evokes an Edward Hopper painting or a faded postcard from the South. Now this scene is being threatened, Ms. Hartley said, by a plan to build what every small American town seems to have: a Dollar General.”
“‘It’s Like Watching A Snuff Film’: Media Elites Shocked By The Atlantic’s Surgical Dismantling Of CNN Boss Chris Licht” (Insider). “‘Let's get real. The problem isn't Licht, it’s his paymasters. The American billionaire class has convinced themselves that the way to save journalism is to make it as bland and as both-sidesy as possible. They chose Licht as their latest champion of harmless vanilla inoffensiveness. The problem is, no one wants vanilla. Not even a tasting spoon of it.’”
“Inside The Meltdown At CNN” (The Atlantic). “CEO Chris Licht felt he was on a mission to restore the network’s reputation for serious journalism. How did it all go wrong?”
