Something for the weekend
(Bloomberg) — Greetings from New York City. Have we mentioned that it’s really expensive here? Unspectacular takeout RTO lunch: around $15. You could do better WFH, but rents have hit yet another record, a median of $4,241 in Manhattan.
It won’t help if the US defaults on its debt — “catastrophic” is the most common adjective. Negotiators resumed talks late Friday with a 90-minute meeting after markets were rattled by a GOP walkout. Conversations are expected to continue through the weekend. Asked at the Group of Seven meeting in Japan if he was concerned, President Joe Biden said: “Not at all.” Treasury Secretary Janet Yellen has signaled a default may become a risk as soon as June 1.
Volodymyr Zelenskiy met with Indian Prime Minister Narendra Modi on the sidelines of the G-7 summit, as the Ukrainian president uses his visit to Japan to speak with leaders of countries who have taken a more neutral stance over Russia’s invasion. Zelensky’s unannounced attendance has unnerved the Brazilian delegation, which now feels pressure to accept an invitation for a face-to-face meeting with President Luiz Inacio Lula da Silva. As opposed to G-7 countries, Brazil has taken a more neutral stance on the war.
Despite all the naysayers’ warnings that the market rally won’t last, this week the S&P 500 Index reached its highest level in nine months. Or maybe the benchmark is gaining because of all the pessimism, since when equities march higher, bears are forced to unwind positions. Regional lenders, a group targeted by short sellers during the latest banking turmoil, jumped almost 8% over five days for the best week in 16 months.
Yet more pessimism: Money managers that trade derivatives linked to oil and fuel prices are about as bearish as they’ve been in more than a decade, suggesting they’re braced for a recession that could cause contracts from crude to jet fuel to take another tumble.
The dining sheds that proliferated the streets of New York City during the pandemic will be allowed to continue — but operating only 10 a.m. to midnight and April through November under legislation introduced this week. That’s reason to celebrate for lovers of outdoor dining, but a cause of concern for those anxious the structures encourage rats, noise and traffic obstacles.
What does it mean to be part of the 1%? Depends where you live: In Monaco it takes $12.4 million and in the US $5.1 million will get you over the threshold. But in the Philippines, just $57,000 makes the cut. The new data underscore how the pandemic and surging living costs are widening the gap between rich and poor nations.
By 2050, almost 70% of the world’s population will live in cities — and nearly 1,000 cities will see their average high temperatures reach or surpass 35C, or 95F, during summer months. “The centers of our cities, the way they’re built today, are death traps,” says Eleni Myrivil, the first “global chief heat officer” appointed by UN Habitat and the Arsht-Rock Resilience Center. She joined the Zero Podcast to discuss the future of cities as climate change worsens.
The Biden administration has made EVs a cornerstone of his climate agenda but public charging stations often don’t work. Watch this Quicktake video to understand why — and get entertaining footage of charging stations battered by simulated earthquakes and a hefty steel ball.
Finally, consider some time with Hal Brands’ essay in Bloomberg Opinion on strategy, as he defines it, “the craft of using power to achieve one’s central purposes, amid the friction of global events and the resistance of enemies.” He writes that “the greatest empires may survive for a while if they lack good strategy, but none can thrive for long without it.” On Russia’s war in Ukraine: “Putin’s performance has been a master class in strategic self-harm.”
Enjoy your tactical retreat from the worries of the week.
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