What we’re reading (7/27)
“Rookie Bankers Sour On Wall Street’s Pitch Of Big Pay And Long Hours” (New York Times). “Although top executives of the biggest banks have recently talked tough about the need for employees to return to the office, many are paying heed to the complaints of their youngest workers. Goldman’s chief executive, David Solomon, said in an earnings call this month that his firm would pay more competitively and enhance rewards for performance. Goldman is also enforcing its no-work-on-Saturday rule. JPMorgan is rolling out technology to automate some aspects of analysts’ work, and recently hired more than 200 additional junior bankers to ease the pressure in a particularly busy year.”
“Work-From-Anywhere Perks Give Silicon Valley A New Edge in Talent War” (Wall Street Journal). “Some of the biggest names in tech aren’t just allowing existing workers to relocate out of the Bay Area, they are also starting to hire in places they hadn’t often recruited from before. The result is the most geographically distributed tech labor market to date. That’s leading to above-market rates for workers in smaller hubs, forcing local companies to raise wages to keep up with the cost of living and fend off deeper-pocketed rivals from California, Seattle and New York.”
“IMF Warns That Inflation Could Prove To Be Persistent And Central Banks May Need To Act” (CNBC). “The International Monetary Fund warned Tuesday that there’s a risk inflation will prove to be more than just transitory, pushing central banks to take pre-emptive action. The issue is currently dividing the investment community, which has been busy contemplating whether a recent surge in consumer prices is here to stay. In the U.S., the consumer price index came in at 5.4% in June — the fastest pace in almost 13 years. In the U.K., the inflation rate reached 2.5% in June — the highest level since August 2018 and above the Bank of England’s target of 2%.”
“Private Equity Firms To Scramble For Exit After China's New Tutoring Rules” (Reuters). “China's move to ban private tutoring firms from making a profit from teaching core school subjects and raising capital is set to trigger a scramble among venture and private equity investors to find an exit after pouring billions of dollars into the sector.”
“Home Prices Can't Go Straight Up Forever. But This Probably Isn't A Bubble” (CNN Business). “[T]oday's housing market is very different from the mid-2000s bubble that wrecked the economy. Unlike then, there is currently a massive shortage of homes and home builders are being very cautious about adding new supply. The other key difference is that banks, home buyers and regulators appear to have learned a painful lesson about the pitfalls of overborrowing…Economists at Bank of America concede that home prices may correct lower in some markets in the short to medium term. Still, the bank told clients in a recent note that a ‘hard landing is unlikely’ this time around.”
