What we’re reading (9/13)
“Stocks Suffer Worst Day Since June 2020” (Wall Street Journal). “Stocks suffered their worst day in more than two years after hotter-than-expected inflation data dashed investors’ hopes that cooling price pressures would prompt the Federal Reserve to moderate its campaign of interest-rate increases. Investors sold everything from stocks and bonds to oil and gold. All 30 stocks in the Dow Jones Industrial Average declined, as did all 11 sectors in the S&P 500. Only five stocks in the broad benchmark finished the session in the green. Facebook parent Meta Platforms dropped 9.4%, BlackRock declined 7.5% and Boeing fell 7.2%.”
“Investors Have Begun Pricing In Odds Of A 100 Basis Points Rate Hike At This Month’s Fed Meeting After The Hotter-Than-Expected August Inflation Report” (Insider). “The CME FedWatch tool showed a 34% probability of a rate increase of 100 basis points at the September 20-21 meeting after showing zero probability over the past month.”
“Who Are America’s Missing Workers?” (New York Times). “People at retirement age, who had been staying in the work force longer as longevity increased before the pandemic, dropped out at disproportionate rates and haven’t returned. More puzzlingly, men in their prime working years, from 25 to 54, have retreated from the work force relative to February 2020, while women have bounced back. Magnifying those disparities are two crosscutting factors: the long-term health complications from Covid-19, and a lagging return for workers without college degrees.”
“What The High-Profile Layoffs At Snap, Netflix, And Other Companies Could Mean For The Economy” (Vox). “Julia Pollak, the chief economist at ZipRecruiter, said the layoffs clearly signaled a slowdown in the tech industry, but she didn’t expect that to necessarily be a leading indicator for hiring trends in the broader labor market.”
“King Charles Will Not Pay Tax On Inheritance From The Queen” (The Guardian). “King Charles will not pay tax on the fortune he has inherited from the late Queen, although he has volunteered to follow his mother’s lead in paying income tax. Under a clause agreed in 1993 by the then prime minister, John Major, any inheritance passed “sovereign to sovereign” avoids the 40% levy applied to assets valued at more than £325,000. The crown estate has an estimated £15.2bn in assets, of which 25% of the profits are given to the royal family as the sovereign grant. The estate includes the royal archives and the royal collection of paintings, which are held by the monarch ‘in right of the crown’.”
