What we’re reading (9/12)
“The Fed Is Likely To Bet On Transitory Inflation” (Carson). “The problem is services outside of housing, including things like transportation services, pet services, personal care, and medical care. Normally, you’d expect to see elevated inflation in these categories when the labor market is running hot—if people earn more, they’ll tend to spend more on these services (like in 2021–2023). But the labor market is clearly running weak, and so it’s bit of a puzzle as to why services inflation remains elevated. But the reality is that it is, and CPI for services excluding housing has been accelerating recently[.]”
“Why You Don’t Want To Trade Stocks Like a Member of Congress” (Wall Street Journal). “In the bad old days, some unscrupulous brokers paid by commission churned their clients’ accounts, buying and selling stocks dozens of times a month. These days, stock commissions have mostly disappeared, yet many advisers still trade too often. That might not be their fault alone. Nearly a half-century after index funds made buy-and-hold investing convenient and cheap for just about any investor, people still want to believe in magic: the secret key, the holy grail, the hidden passageway to outperformance.”
“Fitch Downgrades Crisis-Strained France” (U.S. News & World Report). “Credit rating agency Fitch downgraded France's sovereign credit score on Friday to the country's lowest level on record, stripping the euro zone's second-largest economy of its AA- status as it grapples with political crisis and ballooning debt. The move, bringing Fitch's score to A+, heaps pressure on Prime Minister Sebastien Lecornu just days into the job as he scrambles to form a cabinet and draft a 2026 budget that can pass a deeply divided parliament.”
“The $18 Billion Industry Built On Anonymous Employee Complaints” (Wall Street Journal). “It’s an industry operating under the premise that companies run better when workers can safely sound the alarm on everything from bad breath to bribery. The task is often farmed out to third parties with names like SpeakUp, Navex and EQS. SpeakUp, based in Amsterdam, helps operate Nestlé’s line. In 2024, it handled 3,218 calls and messages with allegations ranging from bullying and harassment to fraud and conflicts of interest at Nestlé and its suppliers. Nestlé says it substantiated 20% of them, and 119 people left their jobs as a result.”
“David Ellison’s Hollywood Plan: Lights … Camera … Spend!” (New York Times). “David Ellison’s spending spree in Hollywood is starting to make Netflix’s industry-rocking largess look Lilliputian. It has been 37 days since Mr. Ellison, 42, took over Paramount Global as part of an $8 billion merger that combined his company, Skydance Media, with a beaten-up collection of old-media assets — MTV, the Paramount movie studio, CBS — and two streaming services. In that short amount of time, he has certainly made two things clear: He is moving fast, and he has access to a seemingly endless supply of his father’s cash.”
