Its The Economy, Stupid - Economic & Business News From Around The World

"Declines were seen across the board — but food price growth continues to accelerate faster than other categories, climbing 6.7% overall year on year. Food-at-home prices rose 5.8% while prices for food away from home climbed 8.3%."

Higher rates! 2% is the target!

"Beijing-controlled chemical giant Sinochem is Pirelli's biggest shareholder, with a 37% stake in the 151-year-old Milan-based firm.

On Sunday, Pirelli said in a statement to investors that the Italian government had ruled that only Camfin - a company controlled by Pirelli's boss Marco Tronchetti Provera - could nominate candidates to be its chief executive. Pirelli also said the government had decided that any changes to the company's corporate governance should be subject to official scrutiny."

We will take your money but you will not have any control nor influence...but we will take your money.


I guess 10% inflation isn't so bad after all.


"Credit Suisse offices in the capital are expected to be among of the worst hit as UBS seeks to protect operations in Switzerland. Senior executives, traders and thousands of support staff in New York and some parts of Asia are also expected to be told their positions are redundant, according to the report."

“In our opinion the Street has severely underestimated the massive installed base upgrade opportunity around iPhone 14 and now a mini super cycle iPhone 15 ahead with roughly 25% of Apple’s golden customer base not upgrading their iPhones in over 4 years,”

Get those iPhones upgraded.

"At the time Tesla said that its overall revenue had risen by almost a quarter in the first quarter from a year ago, as car sales increased."

Hurray! The genius of Elon Musk.

"However, its profit for the same period dropped by 24%, because of price cuts and higher costs of raw materials and other commodities."


"That was fewer than expected, though the unemployment rate still fell to 3.6%, down from 3.7% in May."

Jobs aplenty. Come on in migrants.

"The unemployment rate among young people ages 16 to 24 was 21.3% in June, a new record.

The 6.3% GDP print for the second quarter marked a 0.8% pace of growth from the first quarter, slower than the 2.2% quarter-on-quarter pace recorded in the first three months of the year. Analysts polled by Reuters had predicted a 7.3% increase in the second-quarter GDP."

Trouble in the second largest economy in the world.

"China Evergrande Group posted a combined loss of $81 billion in its long overdue earnings report late on Monday.

Evergrande’s net losses for 2021 and 2022 were 476 billion yuan ($66.36 billion) and 105.9 billion yuan ($14.76 billion), respectively, as a result of writedowns of properties, return of lands, losses on financial assets and financing costs, the company said."

I wonder how many years you will need to wait for the 2023 earnings to come out. It must be fun to be in Finance there working 3 fiscal years simultaneously.

"'...and the reason is — one explanation for it is — that labor costs are really the biggest factor by far in most parts of that sector.'

Of course, higher pay is good for workers — and for the first time in the post-pandemic period, data showed inflation-adjusted wages outpacing inflation.

But a rapidly rising pace of wage increases concerns the Fed because it is linked to higher inflation. Businesses will raise prices if they believe their customers have more money to spend."

Stop paying the people so much...

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,”

Yes. It's the political theatre and last minute deadlines that are the issue. Not the fact there is a persistent deficit that requires raising the debt limit in the first place.

"On Tuesday, official figures showed that China's exports fell by 14.5% in July compared with a year earlier, while imports dropped 12.4%. The grim trade data reinforces concerns that the country's economic growth could slow further this year."

Weren't they still projecting a 5%+ growth this year?

"Subscriber losses continued over the last three months, with the company reporting 146.1 million Disney+ subscribers during the most recent quarter, a 7.4% decline from the previous quarter and a larger loss than Wall Street expected. The majority of subscriber losses came from Disney+ Hotstar, where the company saw a 24% drop in users after it lost out on the rights to Indian Premier League cricket matches.

Facing dwindling users and falling revenue in its media and entertainment distribution segment, Disney announced Wednesday it would raise the price on its ad-free streaming tier in October and that it would crack down on password sharing, as streaming rival Netflix did earlier this year."

Okay so even Disney is losing streaming subscribers which experienced peak growth when everyone had to sit at home.

I can understand how it's useful to entertain kids with an endless library of cartoons but even with the Fox library and their own library of classic dramas, comedies, etc. - what is the business model here? Netflix has realised coming out with 300 new productions a year of which 50% was Hallmark levels of mediocre is not going to keep people subscribed when there are better things "in real life" to do than sit in front of a screen. Deep archive libraries of content which was why every media company broke off on their own won't keep people hooked either.

The streaming market has reached a saturation point and some entrants will need to drop out (probably not Disney) for it to be sustainable for the handful of companies that remain. Unless you're Amazon where you're minting money selling toilet paper online it's becoming an unlimited money pit for media companies.

I was not surprised streaming only entities like Netflix had to figure this out the hard way. I'm doubly surprised a traditional media company which has gone through this type of cannibalization on cable/satellite/broadcast TV journeys are falling on to the same trap.
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"The largest wealth increases last year were recorded for Russia, Mexico, India and Brazil. The report forecast wealth in emerging economies, including the BRICS countries - Brazil, Russia, India, China and South Africa - will rise 30% by 2027."

I thought some of those countries were facing sanctions....

"Around 70% of young people in China now go to university and so expect to get a white-collar job afterwards. They want desk jobs, staring at computers. But that's not possible."

simpsons bird GIF

A long read but a scathing expose if you are the boss and you are leaving, you need to know when it's time to go. For the new boss, bringing in your own crew and confidant is essential. Trust and loyalty above all.

"However, Chapek saw two major problems with the streaming operation. First, he believed there were too many people making decisions about what content was slated for Disney+. Iger and Mayer had tasked this responsibility to Agnes Chu, senior vice president of content, and Ricky Strauss, president of content and marketing for Disney+. Both Chu and Strauss have since left Disney.

Others wanted a say, including Mayer, Chu and Strauss’s boss, as well as Marvel Studios President Kevin Feige, Lucasfilm head Kathleen Kennedy, and the heads of Walt Disney Television and Walt Disney Studios. Mayer told Chapek the structure was messy and needed fixing."

"Chapek brought a business school mentality to this challenge, which naturally rubbed creative executives the wrong way. He often cited the concept of ARCI — which stands for 'accountable, responsible, consulted and informed' — as a framework for ensuring clear decision-making structures. Chapek would often say, 'Who’s got the A?' — referring to accountability. With streaming, the answer wasn’t clear."

That explains why the Disney+ library is a bit of a mess. Things you think they ought to have aren't there and shows/movies often seem like they're hidden.

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