August 31, 2022

The Appetizer

“I think there’s a good probability that my generation is – hopefully with the advances in science – either will be the first generation to live forever or the last generation that’s going to die”

– Jared Kushner when answering a question on his daily routine since leaving the White House.

Now, on to the numbers. Drum roll, please …

• 1882: The year in which the first Labor Day holiday was observed in the U.S.
• 14 million: The number of wage and salary workers belonging to unions in the U.S. in 2021, down from over 17 million in 1983.
• 3,700+: The number of reported crashes of HBO Max in the minutes after “House of the Dragon” premiered.
• 2027: The year that shipmakers in South Korea, the world’s biggest producer of liquefied natural gas tankers, will have capacity for new orders.
• 80.7: The life expectancy for Hawaii residents in 2020, the highest of any U.S. state.

Dig In
Taiwan Tensions

The recent visits by House Speaker Nancy Pelosi and other officials to Taiwan raised tensions and put the U.S.-China balancing act in sharp focus. How come?

The short, short version of the China-Taiwan history is this: Taiwan has been governed independently and democratically – with its own constitution and military – since the end of the Chinese Civil War in 1949. They don’t want anything to change.

Meanwhile, the Chinese Communist Party sees the island as a renegade province (aka rebel child), with President Xi Jinping stating that “reunification” with Taiwan “must be fulfilled.” Awkward.

Taiwan Semiconductor Manufacturing Company (TSMC) produces the majority of the world’s advanced semiconductors and the Taiwan Strait is one of the world’s busiest shipping lanes. So Taiwan is kind of a big deal to global supply chains.

Naturally, the U.S. wants stability in the Taiwan Strait and doesn’t formally support Taiwan’s independence. However, the U.S. also hasn’t ruled out defending Taiwan if China attacks, and recent showings of support have aggravated Beijing. Tensions remain high.

Check out Sight|Lines for more on this topic and what we think may happen.

Weekly Specials

Last week’s student loan announcement crashed the internet. Well, actually just part of it. The Federal Student Aid website, along with most loan servicers’ sites, went down as millions searched for more information. The proposal includes $10,000 in loan forgiveness for those earning less than $125,000, but it lacked key details such as when or how to claim benefits.

Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium put a damper on the weekend. He said bringing inflation down means a “restrictive policy stance for some time.” The event’s agenda appeared to include discussion of supply-side constraints along with hiking and fishing in the Grand Tetons. There are definitely worse places to work through the economy’s tough questions.

Chinese censors are at it again. This time, their PowerPoint-style revisions targeted the ending of the new “Minions” movie. It’s relatively common for Hollywood films shown in China to have scenes omitted or altered, sometimes drastically, such as the “Fight Club” editing we called out earlier this year. And yes, we’ll still accept credit for its restoration.

Corporate Lunch

U.S. Open sponsor Evian and sustainable accessory brand Rothy’s teamed up to create a new line of clothes made from over 72,000 recycled water bottles during last year’s tournament.

Amazon bet a cool $1 billion on its new Lord of the Rings series, “Rings of Power.” That is a lot of doubloons.

Peloton is partnering with Amazon to broaden its customer base and win back investors’ confidence.

Tesla and Nio suspended some EV charging operations in China as the country’s worst drought since the 1960s is impacting hydropower generation.

Sony plans to release a high-end controller for the PS5. Buy one if you want, but your 12-year-old nephew will still destroy you in Call of Duty.

Two Air France pilots were suspended after brawling in the cockpit during a flight between Geneva and Paris.

McKinsey, Bain, and BCG raised salaries for new hires by the most in two decades amid growing competition for talent. Base pay for MBA graduates will range between $175,000 and $190,000.