Hey Snackers,
Possibly the most depressing corporate survey: Oracle found that nearly half of respondents haven’t felt true happiness in over two years — and one-quarter say they don’t know what true happiness feels like.
On that note: stocks ticked down after a relatively mild trading day. Compare that to Friday, when the S&P 500 posted its largest one-day percentage gain in two years.
The headline that no one missed… On Friday, the Supreme Court ruled to overturn Roe v. Wade, the 1973 landmark ruling that protected abortion as a federal right covered by the Constitution. Nearly half of US states have plans to quickly ban or limit abortion — and several already have. In order to legally terminate a pregnancy, women in those states will have to travel to states where abortion isn't criminalized. For many, this travel may not be an option.
Now corporate's stepping in... After the ruling, several large companies pledged to provide financial support for employees — and in some cases, even their dependents — who live in states where abortion's outlawed. The response has been swift:
Corporations can try to be the 4th branch... of government. Companies are becoming increasingly active on social and political issues. That’s largely because many customers, employees, and investors no longer accept inaction. While companies don't have executive, legislative, or judicial power, they have financial influence — from where they choose to open offices, to where they put their $$. Duolingo already warned that it would limit expansion in places that outlaw abortion.
Loose collars… Still plenty of pressure. This year’s Group of 7 meeting, which wraps today in Germany, had a surprisingly casual dress code. The agenda: not-so-casual. President Biden and other leaders of the world’s wealthiest democracies spent three days debating how to punish Russian President Putin for his continued war in Ukraine — without punishing consumers. The details:
IOU… Western sanctions are hurting Russia’s access to cash. On Sunday, Russia reportedly defaulted on $100M of foreign debt payments for the first time in a century — Putin denies it. But Russia’s economy has been relatively resilient: the ruble has rebounded and shelves have stayed stocked thanks to domestic production and increased trade with Turkey, India, and China — they’re snapping up Russian oil.
It’s a delicate balancing act… So far, Western sanctions haven’t shut down Russia’s economy or forced it to end its war. But if enough countries agree to participate in an oil-price cap, they could curb Russia’s oil sales immediately without hurting consumers. It’s not a risk-free strategy: if Russia cuts production in response to the cap, global oil prices could soar even higher.
Authors of this Snacks own: shares of Apple, Amazon, Microsoft, Disney, Uber, Match, and Netflix
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