Dear valued client,
Markets have been going sideways for much of February as investors are grappling with incoming economic data as well as future monetary policy decisions. The consensus on Wall Street appears to be that the Fed will raise rates by 0.25 percentage points in both March and May. At the beginning of the week, the broader market was up 7% YTD, while the tech-focused NASDAQ index was up 13.5%. This week, markets shed some gains.
Less is more, at least according to the results of the largest 4-day workweek experiment ever conducted. The study took place in the U.K. and included 61 companies (2,900 workers) in industries ranging from marketing to construction. For 6 months, employees were allowed to work 80% of their usual hours for the same pay (and the same output). The results were overwhelmingly positive in terms of revenue, morale, retention, and productivity. 71% of companies reported a reduction in employee burnout rates, and 60% of employees reported a greater ability to balance responsibilities at work and at home. Most astonishingly, 92% of the businesses in the study have committed to continuing the shorter work week. Only time will tell if more companies from more countries will adopt this new culture.
As expected, people are feeling the pinch of higher interest rates and are beginning to default on their loans. However, in this case, it’s not people, but big office landlords. According to the WSJ, the giant investment manager, Brookfield Asset Management, recently defaulted on over $750 million in debt for a pair of 52-story buildings in Los Angeles. Debt-restructuring talks are in progress with real estate firm RXR as well as other creditors. People familiar with the matter are hopeful a solution will be found. Unfortunate developments such as these are the type to cause insidious ripple effects throughout the economy, negatively affecting many people’s and businesses’ finances.
If anybody has $5-6 billion laying around, Manchester United, one of the most prestigious Premier League clubs is for sale. The current owner, the American Glazer family, is busy evaluating takeover offers. They hope to surpass the $5.3 billion that was paid to purchase Chelsea FC last May.
“It is not the man who has too little, but the man who craves more, that is poor.” – Seneca
Have a terrific weekend,
PW
