Week InReview
Friday | Jun 17, 2022
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Photo illustration: Elena Scotti | WSJ, iStock, Shutterstock |
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Colleagues in the conference room. Others in the living room. Hybrid work made meetings even worse. Welcome to the hell of the hybrid meeting. Throw in the related side effects – office-people often ignoring the video-call people and that guy who always forgets to mute – and you’re left longing for the simpler times of toilet-paper shortages, double-masking and all-day Zoom.
The hybrid model has emerged as the leading choice for many companies, with 42% of people with remote-capable jobs working partly at home and 39% working entirely from home, according to a February 2022 Gallup poll.
Microsoft, Google, Zoom and others are trying to solve the problems. The solutions won’t fix everything. But there are big developments coming, along with creative – and some free – options you can start trying with your colleagues right now.
— The Wall Street Journal
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Recession fear sinks stocks; Japan yield tops band
Stocks in Asia are set to extend a selloff on deepening fears of an economic downturn. Equity futures dropped more than 2% for Japan and Australia and were 1% lower for Hong Kong after the S&P 500 closed at its lowest since December 2020. The US dollar posted its biggest two-day drop since March 2020 as European central banks stepped up monetary tightening, heralding a narrower gap between rates there and in the US. Meanwhile, speculation is growing that the Bank of Japan could cause a shock by raising interest rates today.
Traders looking to bet on the path of Federal Reserve policy and its impact on the economy griped about being flummoxed after Chair Jerome Powell’s press conference Wednesday. With precious little to base an investment case on, it took them less than a day to decide to sell everything. (Bloomberg Markets | Jun 16)
Falling share, bond and other asset prices are actively helpful to the Fed. They make people poorer, encouraging them to save more and spend less. This is the opposite of the so-called “wealth effect” the Fed relied on to boost inflation during the past dozen years. The policy of superlow interest rates and trillions of dollars of bond purchases created the Everything Bubble, with prices of virtually every U.S. asset hitting new highs. As the Fed reverses course, the Everything Bubble is going away. (The Wall Street Journal | Jun 14)
The recent extreme moves in the US Treasury market were both unusual and entirely predictable. Market participants say the outsized gyrations coincided with a drop in liquity, or the ability to trade without impacting price. It’s an increasingly odd situation for US Treasuries which, in addition to forming the risk-free rate against which many other assets are judged, are generally considered to be the world’s most liquid market. (Bloomberg Markets | 14 Jun )
The rise of passive investing is distorting price signals and pushing up the volatility of the US stock market, according to academic research. The analysis raises fresh questions about the widespread adoption of index-based investing, a trend that has allowed investors to save billions of dollars a year in the shape of lower fees — seemingly without hurting returns. (Financial Times | Jun 13)
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Photo: Joshua Roberts | Bloomberg |
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(Jun 16) — The Federal Reserve raised interest rates by 75 basis points – the biggest increase since 1994 – and Chair Jerome Powell signaled another big move next month. It’s too soon to call an end to America’s worst bond-market collapse in at least half a century as Powell took a step toward assuming the mantle of inflation slayer Paul Volcker. Policy makers boosted expectations for where the Fed’s benchmark rate will end next year to a median of 3.8% from 2.8% previously. It may take a recession to stamp out inflation — and it’s likely to happen on President Joe Biden’s watch.
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Illustration: Haiyin Wang | Alamy |
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Unlocking the cybersecurity benefits of digital twins
Digital twin technology allows for the creation of a virtual duplicate of a live production system, network environment, or cloud instance in real time — and it promises to be a rapidly growing market and boon to manufacturers and security pros alike, according to a new report from Capgemini. The benefits not only provide fallback during scheduled downtimes and improve performance through optimization, but they also aid organizations through the introduction of new business or operating models, the report, Digital twins: Adding intelligence to the real world, states.
Work remains in fight against ransomware
The authors of an influential report on ransomware said the government response one year on in implementing its recommendations has been admirable, but more should be done in key areas. The Ransomware Task Force, a group of dozens of technology companies and government officials, produced a report in April 2021 to serve as a framework for U.S. government action against ransomware gangs.
Google patches seven Chrome browser bugs, four rated 'high' risk
Google has released updates for Chrome to fix seven security vulnerabilities – including four classed as high risk – discovered in the browser used by millions around the world. According to an alert by the US Cybersecurity & Infrastructure Agency (CISA), attackers could exploit the vulnerabilities in Google Chrome for Windows, Mac and Linux "to take control of an affected system".
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Photo Illustration: Xander Opiyo | WSJ |
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You have only so much time. Are you using it right?
The clock has always ticked, of course. But there’s something about this moment. The pandemic has shown us how finite our time is. Meanwhile, many workers, logging on from home or easing into hybrid setups, no longer have their time determined by someone else the way they did when the boss was one cubicle away, five days a week. We’re fumbling toward a new normal, whatever that means, with more autonomy, more flexibility and a perspective shift, too.
Inflation has Americans uneasy about everything
While an intense anxiety about robust price increases – something the US hasn’t seen in almost four decades – is a big part of kitchen table conversations across the country right now, it’s not just inflation that’s unsettling people. A jarring string of events is raising fears that the underpinnings of modern American life are crumbling.
Return to office triggers anxiety attacks — for the dogs left alone at home
As pet owners get back at their offices, schools, gyms and social gatherings, they are coming up with creative ways to help their pandemic pups cope. Some have tried pet antianxiety medication. Others are turning to spa treatments or canine “beer.” Or court television, such as “Judge Judy” or “The People’s Court.”
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