Boeing’s quality issues are causing airlines to cut back on flights as well as hiring, per Bloomberg. So, get ready for a dismal summer travel season of high prices and angry customers. BA’s stock is -29% already this year, with Airbus as the beneficiary.
Globally, dividends were at record levels in 2023 ($1.66 trn per Janus Henderson). Payouts were up +5%, with nearly 50% coming from banks. We’re at the 3rd annual record, and 2024 looks like it could make it a 4th.
Just when folks in the EZ are seeing light at the end of the economic tunnel, they’re facing rising exports from China, which the NYT argues could cause a loss of jobs in the EZ and South Asia. We’re talking steel, cars, consumer electronics, solar panels…you get the idea. The EZ announced last week it’s prepping tariffs on EVs from China, as they believe they’re getting subsidized by the gov.
Reuters is reporting that Japan’s biggest co’s (Toyota, Nippon Steel, etc.) agreed to significant wage hikes, which should enable the BOJ to start raising rates.
Small biz are hiring fewer folks. It’s not a supply problem. You have to watch these statistics because it matters for growth, spending, etc.
We may need to use the off ramp after enjoying this nice gold ride. Just saw a piece by ASR that said the same thing—cycle back into commodities from gold.
The implied cost of refinancing junk bonds is now the lowest since May 2022 globally, per BBG. For IG, it’s the lowest since the summer of 2022. So, we’re seeing a lot of corporate bond sales, which doesn’t support the thesis-of-concern from the past couple of years with the wall of debt coming due. So, all those debt funds looking to bottom fish may have less to choose from. BBG calcs that a co would add 177bps to its annual interest tally, versus a refi back in Oct 2022 which was 463bps.
That’s what WF called Tesla. Remember when the stock could do no wrong and was the life of the market party? Seems like guests have left for a better bash.
Research shows that we’re actually working fewer hours than ever…versus all the clickbait you see out there. Tech is making certain work more efficient (housework), and it takes fewer hours to make a good living these days. But that’s for most folks. Knowledge workers are working more, though. Another fun stat? The ave worker devotes between 1.5-3 hrs/day pretending to work. The market implications would be many—from where people are working (home) and playing (online), how they spend free time (gaming, Netflix), and where they spend their money (experiences).
