Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
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Cashflow
Peloton CEO John Foley to Step Down, Firm to Cut 2,800 Jobs by Cara Lombardo (WSJ)
After a drop-off in demand, connected fitness company Peloton has re-oriented towards slower growth and cut back on ambitions for massive scale. [Link; paywall]
This Could Be When Shale Driller Discipline Cracks, Citi Warns by David Wethe (Bloomberg)
Tight oil management companies are getting ready to raise capex by 40% to take advantage of high crude oil prices, in a move that may cap prices amidst a massive rally in WTI this year. [Link; soft paywall]
Inflation
Bottlenecks and monetary policy by Philip R. Lane (ECB)
A thoughtful examination of the drivers of post-pandemic inflation and how they have been influenced by supply chains and swings in durable goods demand. [Link]
What Are You Expecting? How The Fed Slows Down Inflation Through The Labor Market by Skanda Amarnath and Alex Williams (Employ America)
A critical examination of the conventional wisdom around how monetary actually works in practice, which is likely to leave you wondering whether conventional monetary policy approaches are worthwhile. [Link]
Searching for Maximum Employment by Sarah Albert and Robert G. Valletta (FRBSF)
A series of adjustments to headline labor market data seeking to answer the question “How close are we to maximum employment?”. [Link]
Transportation
Transit Time: Golf cart market picks up speed by Cristina Bolling (The Charlotte Ledger)
With auto prices high and amenities close by, some senior citizens are turning to golf carts for transportation around their neighborhoods. [Link]
Car Insurers Rush to Raise Rates as Inflation Takes a Toll by Leslie Scism (WSJ)
With claims rising thanks to higher prices for repairs, replacement parts, and rental cars, insurers are raising rates to offset the increased cost of covering their clients’ claims. [Link; paywall]
Good Tech
Nuclear fusion heat record a ‘huge step’ in quest for new energy source by Iam Sample (The Guardian)
A test fusion reactor in the UK has set a new record for heat generated during a fusion reaction, emitting the same amount of energy as more than 30 pounds of TNT in a 5 second burst. [Link]
New FDA-approved eye drops could replace reading glasses for millions: “It’s definitely a life changer” (CBS News)
A new eye drop product corrects vision loss that can lead to a need for reading glasses, with drops lasting six to ten hours and costing about $80 for a 1 month supply. [Link; auto-playing video]
Bad Science
SpaceX Satellites Falling Out of Orbit After Solar Storm by Marcia Dunn (Cheddar)
A geomagnetic storm caused by elevated solar activity knocked 40 SpaceX Starlink satellites out of orbit by making the atmosphere thicker and dragging them back to earth. [Link; auto-playing video]
Kids are flocking to Facebook’s ‘metaverse.’ Experts worry predators will follow. by Will Oremus (WaPo)
While Meta’s virtual reality is supposed to be adults only, large numbers of children appear to be getting access to spaces that have few safety tools and present serious dangers to young people. [Link; soft paywall]
Crypto
Alfa Romeo unveils new electric-hybrid SUV with NFT, blockchain technology by Michael Wayland (CNBC)
A new Alfa Romeo model will come with an NFT for buyers, part of the iconic brand’s shift towards electric vehicles by 2027. [Link]
BlackRock Planning to Offer Crypto Trading, Sources Say by Ian Allison (CoinDesk)
The $10trn asset manager is adding crypto trading and credit facilities that allow clients to trade and borrow against existing positions. [Link]
Smart Money
The craziest ways Wall Street is spending this year’s record-setting bonuses by Zachary Kussin and Christopher Cameron (NYP)
Flush with bonuses from booming issuance and strong markets activity, bankers are leaning in to big payouts with caviar, cars, and wine all seeing robust demand. [Link]
Adults Back in Charge of Stock Market as Fed Awakens Big Money by Lu Wang (Yahoo!/Bloomberg)
The retail trading craze has subsided, with institutional volumes ramping up activity as smaller amateurs and market newcomers leaving the scene. [Link; auto-playing video]
Models Behaving Badly
Climate Scientists Encounter Limits of Computer Models, Bedeviling Policy by Robert Lee Hotz (WSJ)
Models for the earth’s climate are necessarily extremely complex, but sometimes adding more detail only makes problems worse. That presents a unique challenge in the effort to better understand how the climate shifts. [Link; paywall]
DNA
Macron refused Russian COVID test in Putin trip over DNA theft fears by Michel Rose (Reuters)
French authorities were so concerned Russian intelligence were trying to get ahold of President Macron’s DNA that they refused to submit to a PCR test during a recent state visit. [Link]
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Have a great weekend!
