What we’re reading (9/2)
“Recession Or Not, There Will Be Pain” (Morningstar). “When is a recession not really a recession? When it’s a ‘rolling’ recession. A rolling recession occurs when different segments of the economy slump at different times, resulting in very low overall growth in gross domestic product output. By maintaining the barest minimum of growth and avoiding a sharp and prolonged economic contraction, rolling recessions sidestep being labeled as official recessions. Rolling recessions are also referred to frequently as ‘growth’ recessions.”
“Meet Starbucks’s New Chief Executive” (DealBook). “He’s a veteran of American and British companies. Born in Pune, India, Narasimhan studied engineering and moved to the U.S. to attend the University of Pennsylvania’s Wharton School. He then joined McKinsey & Company, becoming a senior partner, before shifting in 2012 to PepsiCo, where he oversaw operations in regions including Latin America and Europe. In 2019, he was hired to lead Reckitt Benckiser, the British conglomerate that makes Lysol disinfectant and Durex condoms.”
“CVS Is In Advanced Talks To Buy Signify Health For Around $8 Billion” (Wall Street Journal). “CVS Health Corp. is in advanced talks to acquire the home-healthcare company Signify Health Inc. for around $8 billion, according to people familiar with the matter. CVS appears to have beat out other heavy hitters including Amazon.com Inc. and UnitedHealth Group Inc., which had been circling Signify for a deal that could be announced soon. UnitedHealth never submitted an official bid, one of the people said. There is still no guarantee that CVS will reach a deal for Signify, which has been exploring strategic alternatives since earlier this summer.”
“The Fed’s Hawkishness Dents Pershing Square’s Turnaround” (Institutional Investor). “Until recently, Bill Ackman had been browbeating the Federal Reserve to raise interest rates aggressively. But the Fed’s recent signals that it plans to keep doing so isn’t helping the stock market as the hedge fund manager hoped. Nor is it helping Ackman’s Pershing Square Capital hedge funds.”
“This Remote Mine Could Foretell The Future Of America’s Electric Car Industry” (New York Times). “mines that extract metal from sulfide ore, as this one would, have a poor environmental record in the United States, and an even more checkered footprint globally. While some in the area argue the mine could bring good jobs to a sparsely populated region, others are deeply fearful that it could spoil local lakes and streams that feed into the Mississippi River. There is also concern that it could endanger the livelihoods and culture of Ojibwe tribes whose members live just over a mile from Talon’s land and have gathered wild rice here for generations.”
