Fortune (August 20)
“Even as Ukrainian advances in the Kursk region pierce Russia’s aura of military invincibility, resurgent cynics have painted an unrealistically optimistic picture of a supposedly resilient Russian economy despite sanctions and the exit of over 1,000 global multinational corporations…. A significant economic slowdown or recession appears not just possible but increasingly probable.”
Seeking Alpha (August 20)
“Harley-Davidson (HOG) is the latest corporation to back away from DEI initiatives following a backlash kickstarted by activist and political commentator Robby Starbuck. An online campaign against the 120-year-old motorcycle company accused the firm and its CEO, Jochen Zeitz, of embracing a ‘woke agenda of the very far left’ that does not align with the business’s core customers. It follows similar campaigns against Deere (DE) and Tractor Supply (TSCO), which both shelved their DEI protocols earlier in the summer.”
Tags: Activist, Align, Backlash, Campaigns, CEO, Core customers, Deere, DEI initiatives, Harley-Davidson, Kickstarted, Shelved, Woke agenda
Mining.Com (August 18)
“Global investors are lasered onto China’s struggling economy, even as they also contemplate the possibility of a recession in the US, with the Federal Reserve moving toward interest rate cuts.” But now the chairman of the world’s biggest steel group, China-based Baowu, has warned of a “worse challenge than major traumas in 2008 and 2015.” His warning “underscores risks to demand and prices” for steel and other commodities, along with “what ArcelorMittal SA, the industry No. 2, called an ‘aggressive’ surge of exports from China.”
Wall Street Journal (August 17)
“Volkswagen, GM and other big brands are losing their grip on a once-lucrative market as Chinese consumers embrace homegrown electric vehicles.” The issue is broad ranging. “Manufacturers from China’s Asian neighbors aren’t faring better… Toyota’s Chinese JV income fell 73% in the quarter through June compared with the same period of 2023, while Honda’s equity income was all but wiped out.” China is turning into “a money pit for foreign automakers.”
Tags: Big brands, China, Consumers, Equity, EVs, GM, Homegrown, Honda, Income, JV, Manufacturers, Market, Money pit, Once-lucrative, Toyota, Volkswagen
Sustainable Views (August 15)
Estimates from Swiss Re indicate “only 38 per cent of global economic losses caused by natural disasters were insured” in 2023 “Climate change is likely to compound the problem,” however, “the growing catastrophe bond market could potentially help to plug this insurance gap.” While primarily “focused on earthquakes and hurricanes,” the cat bond market is exploring “other risks such as wildfires, floods and droughts” and grew to “$12.3bn worth of primary issuance in the first half of this year – an all-time high.”
Tags: $12.3bn
Investment Week (August 15)
“The UK economy grew by 0.6% in the second quarter, following an increase of 0.7% in the previous three months.” Year over year, “gross domestic product expanded by 0.9% from April to June…. The figures confirm that the economy has enjoyed a strong recovery from its mild technical recession last year.”
Tags: 0.6%, 0.7%, 0.9%, Economy, Expanded, GDP, Grew, Q1, Q2, Strong recovery, Technical recession, UK
The Guardian (August 13)
Ukraine’s attack on Russia has boosted momentum and may undercut “Putin’s strongman image,” possibly “prompting doubts among the elite” or “encouraging squabbling over who is to blame for this embarrassment.” Ultimately, however, “the final judgment on Kyiv’s bet” remains to be seen. “Taking the enemy by surprise is a short-term win. But the consequences of this bold gamble are still playing out.”
Tags: Attack, Blame, Consequences, Doubts, Embarrassment, Momentum, Putin, Russia, Short-term win, Strongman, Surprise, Ukraine, Undercut
New York Times (August 12)
“A sense of calm has returned to global markets on Monday, but the economic conditions that triggered last week’s roller coaster swings are still on many minds ahead of a pivotal week.” All eyes are on “Wednesday’s inflation data.” Economists are forecasting “a slight uptick” in CPI, but the consensus believes the Fed will nevertheless cut interest rates. “With markets on edge, traders see a big potential swing in the S&P 500 after the report comes out.”
Tags: S&P 500
Hartford Courant (August 12)
“Why aren’t we taking climate change more seriously” even though the consequences are all around. “The good folks living in the small town of Fairbourne, Wales have a problem. Those who want to sell their homes to buyers looking for 30-year mortgages can’t” because local banks “have determined that the town of Fairbourne will not exist in 30 years. It will be underwater.” Before it is too late, “we need to take climate change more seriously.”
Tags: 30-year mortgages, Banks, Buyers, Climate change, Consequences, Fairbourne, Homes, Sell, Underwater, Wales
Institutional Investor (August 12)
“Institutional investors have long called for better transparency and disclosure regarding fees, expenses, pass-through costs, and conflicts of interest,” but the SEC’s private fund adviser rules “were struck down in June after being challenged in court by a number of industry organizations largely representing managers.” The “regulatory saga” seemed to pit “investors and managers against one another…. But this picture is too simple, ignoring the industry’s own track record of collaboration to improve practices and address many of these challenges.” Going forward, “stakeholders must pick up where regulators left off.”
Tags: Collaboration, Conflicts of interest, Costs, Court, Disclosure, Expenses, Fees, Institutional investors, Managers, Regulators, SEC, Stakeholders, Transparency
