E People Needed

A day after he warned about inflation risks in the Financial Times, Mohamed El-Erian, president of Queens’ College, Cambridge university and adviser to Allianz ALIZF, a German insurance company, warned about inflation risks in US media. He wrote: “the labor market is getting scary”. Supply problems can lead to inflation. Actually, there are also problems hiring people needed in the USA. 850,000 people were new hires in June, very much higher than the consensus estimate of 706,000. The unemployment rate was 5.9%. If qualified people are not looking for work, they will have to be lured to do so with higher wages. To pay the higher wages, companies will have to raise the prices they charge for goods and services. Whoops, that takes down the buck and hurts investors.

Business newspaper article

image source

I am impressed that El-Erian can write the same article for Brits and Yanks. He is currently British-based but is an American citizen.


*Another day, another mess from seekingalpha.com. For the second time in a week, the financial news provider wrote about Taiwan Semiconductor, NYSE-TSM, the largest maker of chips on earth, and headlined the article with the ticker symbol of its mini US-Israeli rival Tower Semiconductor, TSEM, which trades OTC. We own both. And both rose today but the Israeli stock is likely to lose when investors realize what happened. Tel Aviv is closed Fridays, the Muslim Sabbath, but will be open Sunday and Monday when US markets are closed. If you own TSEM you may want to cut back your position. Chips are in short supply but the firm from which Apple reportedly bought semiconductors made by the 3nm process was Taiwan Semi. The news also affects other stocks based on the island which China is seeking to add to its territory. TSEM is up 0.25% to 29.44 while TSM gain 0.1% to 118.75.

More for paid subscribers follows:

*Our shares of Taiwan Fund (TWN) galloped up 1.79% to $35.62. The shares gained despite the happy-clappy celebration of the 100th Anniversary of the Chinese Communist party. Boss Xi Jinping, dressed in a Mao suit, said China wants to add Taiwan to its territory.

*Never underestimate the stupidity of reds. China is blotting its copybook by starting a regulatory review of newly-listed Didi Chuxing for cyber-security violations.

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William K. 2 months ago Member's comment

No Clue about "what happened" to Tower? And other places as well. so it seems that we get left hanging. Clearly I have missed some news, possibly quite a lot of it.

But the reports are always interesting.