What we’re reading (8/9)
“Warren Buffett's Berkshire Hathaway Recovers From Coronavirus Slowdown” (Reuters). “Warren Buffett's Berkshire Hathaway Inc on Saturday said many of its businesses are enjoying strong recoveries from the early depths of the coronavirus pandemic, fueling rebounds in profits and revenue. The company Buffett has run since 1965 also signaled the billionaire's confidence in its future by repurchasing $6 billion of its own shares in the second quarter, even as its stock price regularly set new highs.”
“Oil Prices Slide on Worries Over China Delta Variant Outbreak” (Wall Street Journal). “The price of oil and other key industrial commodities slid Monday after Chinese government measures to halt the spread of the Delta variant spooked investors about global energy demand. Brent crude oil, the global benchmark, fell 4% to $67.87 a barrel and West Texas Intermediate futures—the main U.S. benchmark—were down 4.3% at $65.38 a barrel. At those prices, both gauges were set for their lowest close in around 2½ months.”
“Gold And Silver Claw Back Losses After Friday's Stellar Jobs Report Ignited Concerns Over Tighter Fed Policy And Unleashed A ‘Flash Crash’” (Business Insider). “Gold and silver prices on Monday recovered slightly from a sharp slide at the start of Asian trading, but were weighed down by rising expectations that the US Federal Reserve will cut back on its bond buying sooner than expected. Spot gold prices declined 4% to $1,707 per ounce late Sunday, while spot silver prices dropped 9% from $24.34 to $22.10 an ounce. Both metals are paring losses after the "flash crash". Gold was trading at $1,748 per ounce at 4:55 a.m. ET Monday, down 0.8% on the day and at its lowest level since April. Silver was down 1.7% at $23.90 an ounce after touching its lowest level since December.”
“Malls Are back. But For How Long?” (CNN Business). “It's an amazing rebound from the dire conditions just more than a year ago. Many, especially the traditional indoor malls, were closed by stay-at-home orders, and rent collections from tenants came to a halt. Anchor tenants such as JCPenney (JCP) and Nieman Marcus filed for bankruptcy and closed many stores permanently. Others, such as Lord & Taylor, went out of business altogether. There were also bankruptcies by major mall operators including Washington Prime Group and CBL Properties, each of which operate more than 100 malls.”
“Senators Go Beyond Biden To End Private-Equity Tax Break” (Bloomberg). “Two senior Senate Democrats are proposing to end a prized tax break for the private-equity industry in a new bill that would go further than President Joe Biden’s plan and potentially raise quadruple the revenue. Senate Finance Committee Chairman Ron Wyden and Rhode Island’s Sheldon Whitehouse, a member of the panel, are introducing legislation Thursday to repeal the break for carried interest, which allows private equity fund managers to pay lower tax rates on their earnings than they would for regular income. The bill would also prohibit them from deferring tax payments on those earnings, another benefit embedded into the current law.”
