Written By: Emily Vo
Utilities
Utilities resume shutoffs despite many still battling the pandemic
When the COVID-19 pandemic hit the United States a year ago, many states passed emergency laws that banned both evictions and utility shutoffs. However, a year later, these laws are going out of effect. Moratoriums on electric shutoffs are expiring and utilities are resuming shutoffs, despite many people across the United States still battling COVID-19. A map from the National Association of Utility Regulators (NARUC) reveals that there are now a total of 38 states where their moratoriums on shutoffs have expired or are now only voluntary for utility companies to abide by. Many residents, such as Mashelle Fields, have had their electricity shut off due to missed payments. Fields contracted COVID-19, which put her out of work for several weeks. Now she doesn’t have the money to pay her electric company to resume power in her apartment. Many other people across the United States are dealing with the same issue, and many are facing evictions as well. Though the pandemic has gotten arguably better due to improved testing and a greater distribution of vaccinations, it is still a large challenge for many working-class Americans who now have even more issues to deal with.
Microsoft vs. Google
At a House Judiciary subcommittee hearing on Friday, Microsoft and Google traded shots at one another
The feud between Microsoft and Google was reignited at a hearing on Friday when Microsoft’s president lashed out of Google. Microsoft President Brad Smith had discussed how Google feeds search and advertising networks so it needs better support the news industry. Smith expressed his support for legislation that would allow news organizations to have more power in bargaining with companies such as Google and Facebook. He also criticized Google’s lack of support for journalists and news overall. Google’s Senior Vice President of Global Affairs Kent Walker had defended Google’s adequate support of journalism beforehand. Walker stated that Google has paid publishers for their work and in turn, accused Microsoft of attacking its rivals to only lobby for its own interests. He also pointed out what Google’s top lawyer fired back in the hearing: that Microsoft’s recent criticisms have come up amid the discovery of their involvement in two recent hacks. Since the early 2000s, Microsoft and Google have fought over who would be the internet’s “gatekeeper.” And Microsoft has not been silent on its criticisms and lobbying against Google, such as in this hearing. While Google continues to defend its support of journalism, Microsoft has similarly worked to support news and publishers. Both are working on offering a news app, with Microsoft’s offering content from more than 1,200 publishers and Google committing $1 billion to support publishers globally on their app, Google News Showcase.
Stocks
Value stocks are beating growth stocks by the widest margin in two decades
Value investors have a reason to celebrate as value stocks are beating growth stocks by a fairly large margin. With COVID-19 vaccines rolling out and economic recovery following a year of shutdowns, portfolio managers are buying up cyclical stocks, or value stocks. These include banks, energy companies, and other stocks that are closely tied to economic growth. Since the financial crisis, growth stocks have been outperforming value stocks. However, there has been a shift in bets that is reversing this trend, which can be seen in the rise of large tech companies such as Apple and Amazon. The gap the value stocks have from growth stocks are the highest they have been since 2001 according to data from Dow Jones Market. Previously, the beginning of the pandemic last March allowed growth stocks to maintain a large lead from value stocks. With the ongoing economic recovery, value stocks have been able to not only catch up, but to outperform as well. Aside from tech stocks, other stocks such as JPMorgan Chase and Chevron have also been rising. These stocks were in decline in 2020, however, they have shown strong growth in line with the improving economy this year.
Food Prices
Global food prices are on the rise, posing threats around the world
For the past few months, global food prices have been rising. This trend has caused additional pressure on the world’s poorest people, and many fear it will lead to unrest. In the past, spikes in food prices, especially staple foods, have been connected to periods of social unrest. For example, the Arab Spring was connected to high food prices. In February, it was reported today by the Food and Agriculture Organization’s Food Price Index that global food prices rose 2.4%. This means that global food prices have risen for the ninth straight month. Adjusted for inflation, this means that prices have reached their highest level since July of 2014. In 2020 and within the United States alone, it was reported that food prices rose 3%. And other countries such as Brazil, Russia, Nigeria, and Indian are not far behind. Governments are concerned about this price increase as they are often very destabilizing. Shutdowns related to COVID-19 have not helped alleviate this issue either. Future implications of this issue have yet to be seen, but many governments are wary of what is to come. While governments and experts worry, the world's poorest people continue to suffer the most from this rise.
Coupang
South Korea’s equivalent of Amazon has just gone public
Coupang is the largest e-commerce company in South Korea, and last week, they went public. Now, Coupang ranks as South Korea’s second-largest publicly held company, just trailing Samsung. Coupang is the largest U.S. initial public offering by a foreign company since Alibaba in 2014. It is also the biggest U.S. new issue of any kind since Uber in 2019. Coupang was founded in 2010 by Bom Kim, who dropped out of Harvard Business School. The company makes up 4% of all of South Korea’s consumer commerce and has become a large force in South Korea’s economy. Coupang is comparable to Amazon, however, it also includes features from companies such as Instacart, DoorDash, and Netflix. It also has geographical and technological advances in comparison to Amazon. South Korea overall is a very dense and tech-savy country, aiding in Coupang’s responsiveness. The company is also working to be very environmentally conscious after already eliminating almost 75% of packaging for its products. In 2020, Coupang saw a total revenue of $12 billion, a 91% increase from 2019. Its growth has also been above 90% in each of its previous four quarters. Though newer than Amazon, Coupang has already shown concrete advancements over its U.S. counterpart. And Coupong shares that are now available to the public are not cheap either. In the IPO, Coupang sold 130 million shares at $35 apiece. Their stock opened for trading at $63.50, giving Coupang a $114 billion market cap. Though, after close on Thursday, their valuation lowered and totaled $90 billion for approximately $50 a share.
COVID-19
The U.S. has surpassed 100 million COVID-19 vaccines administered nationwide
On Friday, the U.S. has officially administered more than 100 million vaccinations across the country. This new milestone comes as the inoculation drive gains pace in the U.S. and as COVID-19 cases have lowered in the past few weeks. President Biden has also announced that he plans to make all adults eligible for the vaccine by May 1st. His plan is a strong indication that the administration is confident in the rollout of vaccines. Though, getting the U.S. on its way to having health guidelines allow small gatherings by July 4th will be a challenge. This requires finding enough health workers to administer the vaccine and having mass vaccination sites across the nation. Underserved communities must also be considered in this plan and they must also be given access to the vaccine. The public may also view Biden’s new plan where all adults will have received the vaccine by May 1st, which is not the case. Simply, enough vaccines will be available for all adults by then according to the plan. Biden also has plans to expand the qualifications for the vaccine in the coming weeks, allowing more people to receive it. All these efforts will hopefully allow the U.S. to complete Biden’s goal by May 1st.
Works Cited
Armour, Stephanie, et al. “U.S. Surpasses 100 Million Covid-19 Vaccines Administered.” The Wall Street Journal, Dow Jones & Company, 12 Mar. 2021, www.wsj.com/articles/more-than-100-million-covid-19-vaccines-administered-in-u-s-cdc-says-11615580615?mod=hp_lead_pos5.
Langley, Karen. “Value Investors Finally Have Reason to Celebrate-for Now.” The Wall Street Journal, Dow Jones & Company, 12 Mar. 2021, www.wsj.com/articles/value-investors-finally-have-reason-to-celebratefor-now-11615545000?mod=hp_lead_pos3.
Matarese, John. “What Pandemic? Utilities Resuming Disconnections.” WCPO, WCPO, 11 Mar. 2021, www.wcpo.com/money/consumer/dont-waste-your-money/what-pandemic-utilities-resuming-disconnections.
Mickle, Tripp, and Aaron Tilley. “Google Says Microsoft's Stance on News Is Effort to Distract From Hack.” The Wall Street Journal, Dow Jones & Company, 12 Mar. 2021, www.wsj.com/articles/google-fires-back-at-microsoft-as-long-simmering-feud-intensifies-11615577733?mod=hp_lead_pos1.
Savitz, Eric J. “Coupang Is the Amazon.com of South Korea, but Maybe Even Better. And Now You Can Buy the Stock.” Coupang Is the Amazon.com of South Korea, but Maybe Even Better., Barrons, 12 Mar. 2021, www.barrons.com/articles/coupang-is-the-amazon-com-of-south-korea-but-maybe-even-better-51615590150.
Walsh, Bryan. “Food Prices Are Rising - and That's Bad for Global Stability.” Axios, 10 Mar. 2021, www.axios.com/global-food-prices-coronavirus-protests-9d81f4c6-7665-4aa5-9250-a5b670efdb30.html.