John Authers of Bloomberg writes in an email note this morning. The number of Banks in America has come down to the 6,000 range which is a 100% reduction over the last 30 years. We can expect that number of Banks to continue to reduce as retrenchment becomes mandatory for survival. Despite the fire sale of First Republic over the weekend, confidence in regional banks grows ever weaker, with yet more selling of their shares Thursday. This is now getting to an extreme. Their valuation is almost back to the slough of despond in the Global Financial Crisis, while their … Continue reading The US regional bank crisis

Lant makes a wonky but strong argument for “people over robots” His argument in Foreign Affairs (link below) centres on productivity and he argues that resisting immigration by building out expensive technology rather than ease immigration controls is fundamentally an inefficient solution. I admit ti falling into the technology evangelist category however his economic arguments are a refreshing take on current economics that we have taken for granted, and possibly too easily. It is easier to build massively expense and difficult technology than deal with the political difficulties associated with “immigrants stealing my job”. In fact he argues that immigration … Continue reading The Global Economy Needs Immigration Before Automation – Lant Pritchett – further thoughts

UK Competition and Markets Authority effectively killed Microsofts acquisition of Activision Blizzard in an unclear yet decisive decision. I do not see how this decision helps anyone. Activision Blizzard blasts UK after regulator blocks $75bn Microsoft deal FT The UK competition regulator has blocked Microsoft’s $75bn acquisition of Activision Blizzard, drawing a furious response from the video games maker, which branded Britain “clearly closed for business”. The Competition and Markets Authority on Wednesday delivered a potentially fatal blow to Microsoft’s biggest deal by concluding the software giant could make Activision’s games exclusive to its own cloud gaming service. During the … Continue reading Activision Blizzard blasts UK after regulator blocks $75bn Microsoft deal

The topic is the recently published OSFI Risk outlook update. First, here is my take: The following are quoted from the OSFI Annual Risk Outlook 2023-2024 Original link https://www.osfi-bsif.gc.ca/Documents/WET5/ARO/eng/2023/aro.html Risk environment – The 9 financial risks that OSFI views as most pressing: Overview of changes to the risk environment The financial system is adjusting to a higher interest rate environment. Given the rapidity at which interest rates globally have increased, the risk has grown that such an adjustment may not be completely smooth. This phenomenon places a premium on Canada’s notable financial system resiliency. Other risks also present themselves on … Continue reading OSFI’s Annual Risk Outlook – Fiscal Year 2023-2024

Goldman Sachs have a new report with fairly predictable outcomes. They see the “Influencer economy” growing following a linear trajectory to achieve a base of $500 billion by 2027. As I read this I see a prediction that says what we see today will provide more of the same. What is missing is the next TikTok shifting the paradigm of the TikTok Influencer model. This is the more relevant as we see the usual suspects piling on with TikTok like add-ons to their platforms (YouTube, FaceBook, Instagram etc) The Financial Times have a great analysis (Gen-X bankers warn Gen-Z content … Continue reading Goldman Sachs new report on Influencer Economy