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.
As nearly half of US states move to restrict or ban abortion, corporate behemoths are stepping in to offer employees support
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:
- Disney, Microsoft, Chase, and Levi were among those that said they'd cover employee travel expenses for abortions.
- Citi, Salesforce, and Tinder-owner Match vowed to provide financial support for affected employees back in May, when the draft opinion was leaked.
- Others like Apple, Netflix, and Uber say they already cover travel expenses for healthcare treatments, including abortion and gender-affirming care.
- Some GOP lawmakers are considering ways to retaliate against companies which help cover medical and travel costs. Think: asking Congress to cancel its contract with Citi.
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 $$. Duolingo already warned that it would limit expansion in places that outlaw abortion.
G7 leaders consider capping Russian oil prices to punish Putin — without punishing everyone else with extra 'flation
Loose collars… Still plenty of pressure. This year’s Group of 7 meeting, which wraps today in Germany, had a surprisingly casual dress code. The agenda: not-so-casual. President Biden and other leaders of the world’s wealthiest democracies spent three days debating how to punish Russian President Putin for his continued war in Ukraine — without punishing consumers. The details:
- Oil be darned: The US already banned Russian oil imports, and the EU is phasing them out. But thanks to wild prices, Russia’s making even more $$ from oil than it did pre-Ukraine war.
- Set the max: G7 leaders want to cap Russian oil prices to shrink Russia’s oil sales without shrinking global supply. Think: countries all agree to pay a lower price for Russian oil.
- Going for the gold: The G7 needs other nations to participate for the price cap to succeed, and hasn’t finalized the plan. In the meantime, it’s banning Russian gold imports, which earned the country $15B last year.
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.
What else we’re Snackin’
- Bear: Banks like Goldman Sachs and Morgan Stanley went on pandemic hiring sprees when markets and deals were booming. Now, a wave of Wall Street layoffs is likely as the bear market darkens forecasts.
- Avo: Sweetgreen is gamifying its salad app with discount-based “rewards and challenges'' to drive lettuce loyalty. Digital orders made up 66% of its sales last quarter.
- Blow: A Swiss court found Credit Suisse guilty of helping a Bulgarian crime syndicate launder cocaine money 14 years ago. The banking bigshot was ordered to pay the Swiss government $20M but plans to appeal.
- Paged: Authors are protesting Amazon's e-book return policy, which lets readers cancel “accidental” orders within seven days. Writers say it lets customers finish their reads in a week for free.
- Short: As the crypto meltdown continues, hedge funds are betting millions against Tether, the world’s largest stablecoin. Short sellers have been increasingly betting against it since TerraUSD collapsed.
Tuesday
- G7 Summit in Germany
- Earnings expected from Concentrix and Roivant Sciences
Authors of this Snacks own: shares of Apple, Amazon, Microsoft, Disney, Uber, Match, and Netflix
ID: 2263868