McKinsey

Why Wage Growth Will Remain Elusive

"Even if we rebuild factories here and you build plants here, they’re just not going to employ thousands of people — that just doesn’t happen.  Find a factory anywhere in the world built in the last 5 years - not many people work there.”

Frontrunning: July 10

  • World stocks rally, dollar up to two-month high against yen (Reuters)
  • Oil Prices Fall Amid Rising U.S. Production (WSJ)
  • Trump’s ‘America First’ Policy Proves to Be an Immovable Object at G-20 (WSJ)
  • Russia says joint cyber unit with U.S. will take time to set up (Reuters)
  • Senate Health Bill Fails to Pick Up Support After Week of Recess (BBG)

"Technology Is Replacing Brains As Well As Brawn" - Challenging The 'Official' Automation Narrative (& Social Order)

...even if the academics are right and new high-skill jobs emerge to replace the ones that are being automated away, huge disruptions would still await. Large portions of the global workforce would still need retraining. And if work becomes a luxury, widespread joblessness and greater inequality could make it increasingly more difficult for the government to maintain social order.

Nomura Demands $134,000 For Premium Research

As Wall Street scrambles to find a market clearing price for the true value of its now unbundled research, a first attempt comes from Nomura, which has proposed that clients pay as much as 120,000 euros ($134,000) a year to access their favorite analysts

McKinsey: Banks Will Have To Slash 30% Of Analyst Jobs To Comply With New Research Rules

"Two to three global banking players will preserve their status in the new era, winning the execution arms race and dominating trading in equities around the globe.  Over the coming five years, banks will need to make hard choices and play to their strengths. Not only will the top ranks be thinned out, there will be shakeouts in regional markets."

Is This The Scariest Chart For Central Banks?

"Monetary policy has left the allocation into risky assets stretched at very high prices in a modest recovery with major structural issues still unresolved. The efficacy of existing policy tools in the future seems greatly diminished."

Frontrunning: June 5

  • Saudis, U.A.E., Bahrain and Egypt Cut Ties With Qatar (WSJ)
  • Saudi-Led Alliance Cuts Ties With Qatar (BBG)
  • Saudi, Egypt lead Arab states cutting Qatar ties, Iran blames Trump (Reuters); Qatar asks citizens to leave UAE within 14 days: embassy (Reuters)
  • London Fortifies Bridges to Protect Pedestrians From Attack (BBG)
  • Bank at Center of U.S. Inquiry Projects Russian ‘Soft Power’ (NYT)