🛥️ Oligarchs and yacht-onomics
Hey Snackers,
Ukraine and Russia agreed to create a “humanitarian corridor” to evacuate civilians from Ukraine, and it could come with a temporary ceasefire. The UN said the war could make 4M people refugees. Meanwhile, Russia is gaining ground in critical parts of southern Ukraine.
Stocks ended yesterday lower, while oil briefly soared past $116/barrel for the first time since 2008. In the San Francisco Bay Area, average gas prices topped $5/gallon.
To crank up pressure on Putin, Western powers target Russian oligarchs — and their superyachts
Rough seas for Putin’s pals… First, Western governments went after Russia’s banks — now they’re targeting its oligarchs. Refresher: oligarchs are wealthy individuals with outsized influence over government. Post-Soviet oligarchs have amassed staggering fortunes during the privatization of Russia’s economy by doing favors for politicians like President Putin. By going after oligarchs, Western countries hope to pressure Putin to end the war in Ukraine:
- Seize and freeze: President Biden launched “Task Force KleptoCapture” (real name) to confiscate Russian oligarchs’ yachts, jets, and pricey pads. European authorities have already seized some big boats, like the 280-foot Amore Vero owned by a Putin confidant.
- Cut and run: Some oligarchs are sailing for safer harbors, but even formerly friendly destinations like Monaco have adopted sanctions. Others are trying to sell: Roman Abramovich put Chelsea FC up for sale. FYI: He’s one of a handful of oligarchs who’ve broken rank by publicly criticizing the war.
Yacht-onomics… Putin has spent years sanction-proofing Russia for this day. Moscow stockpiled currency, bought Chinese bonds, and ditched Western trade partners to fortify Russia’s economy. Oligarchs did their part: experts say Putin and his cronies have personally stashed at least $250B of dark money outside Russia. But their laundered loot is hidden in plain sight: $1B+ yachts and Manhattan penthouses aren’t exactly subtle.
Keep your enemies' friends close… So far, government sanctions and international shaming haven’t stopped Putin from escalating his aggression against Ukrainians. Western leaders hope that going after his influential friends could help turn the screws. Russian oligarchs have already lost $83B because of sanctions — and that’s not counting the yachts. And it’s just beginning: the US is said to be expanding sanctions against oligarchs and the businesses that made them rich.
The labor market is resurging — but millions of women are still recovering from the “she-cession”
Let this sink in… After two years of a pandemic, women have still not fully recovered from the labor market pain of 2020. While the US added a record 6.4M jobs last year, and the overall unemployment rate is down to 4%, men have dominated new hirings. Of the jobs gained in January, women filled 40%. This morning’s jobs report will offer fresh insight into how women are rebounding from the she-cession.
- In the US: 2.5M+ women dropped out of the labor force between February 2020 and January 2021, versus 1.8M men. That’s unusual, because men typically fare worse during recessions.
- Globally: 64M+ women lost their jobs in 2020, which resulted in $800B in lost income.
Why women left… Women bore the brunt of childcare when schools closed, which hurt their careers, relationships, and well-being. Women are also overrepresented in jobs with some of the highest burnout rates, including high-contact industries like healthcare, education, and retail. Ultimately, many mothers were forced to decide between being primary caregivers or full-time employees. And while schools have reopened, there’s still a childcare crisis keeping women out of the resurgent labor market:
- 16K licensed childcare facilities permanently closed between December 2019 and March 2021, while childcare costs have increased by 41% since the pandemic began.
- American childcare workers — 95% of whom are women — earn just $12/hr on average, which makes recruitment and retention challenging.
The labor market is still healing… especially for women. Biden’s $1.2T infrastructure bill aims to pump money into industries like construction and transportation, but those sectors have traditionally employed few women. Some say minimizing bias against workers who take career breaks for childcare could help women return to the labor pool.
What else we’re Snackin’
- Mind: Several state AGs are investigating TikTok over its impact on the mental and physical health of young people. Last year, leaked docs showed that Meta knew Instagram had a harmful effect on teen girls.
- Strike: Electronic Arts is removing Russian teams from popular video games like NHL 22 and FIFA 22. It comes after those clubs were barred from playing in (real life) international leagues.
- Khakis: Gap shares popped 16% after hours despite reporting weak sales in the holiday quarter. The retailer said the current quarter’s looking iffy, too, but gave a positive outlook for the full year.
- Encore: Epic Games is buying Bandcamp, the music platform popular with indie fans, for an undisclosed amount. Bandcamp’s known for letting artists set the price for their music, a rarity in the streaming world.
- Bricks: Amazon is closing 68 retail shops, including all its bookstores, to focus on its Whole Foods grocery biz. The Zon’s brick-and-mortar stores made up just 3% of sales last quarter.
Friday
- Monthly employment data
- Paralympics Opening Ceremony
- Earnings expected from Dole
Authors of this Snacks own shares of Amazon
ID: 2065103