—— Hybrid office reduces employee turnover; Morgan Stanley is optimistic about the 60/40 portfolio; the Nord Stream natural gas pipeline is restricted again; BYD’s market position is rapidly rising; GM received a $2.5 billion loan from the US Department of Energy; Walmart received a price cut to reduce stockpiling; China has injected capital to support real estate developers.
1. Hybrid office reduces employee turnover
Research conducted by Nicholas Bloom of Stanford University shows that remote and hybrid working methods have reduced employee turnover in tech companies by 35% while increasing employee job satisfaction.
In 2021, the study surveyed 1,612 Trip.com employees with occupational backgrounds including marketing, finance, and technology.
According to another study released by the National Bureau of Economic Research, employees who use a hybrid office work 80 minutes fewer full-time hours when they work from home, but work in the office and on Saturdays and Sundays. The working time is 30 minutes longer, which shows the change in work efficiency and habits.
After the pandemic, many businesses have begun adopting a hybrid approach, allowing employees to decide how and where to get work done.
The U.S. unemployment rate is now near the lowest level in nearly 50 years, and many critics of working from home have now changed their minds.
If working from home can effectively improve the physical and mental health and work efficiency of employees, companies should reconsider it
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2. Morgan Stanley is bullish on the 60/40 portfolio
On Sunday, Morgan Stanley’s chief cross-asset strategist Andrew Sheets said in a statement that a 60% equities 40% bond portfolio is likely to provide higher levels of equity over the next 10 years. return on investment.
In the first six months of the year, a Bloomberg index tracking the return of 60/40 portfolios fell 17%. Andrew admitted that the performance of the first half of the year and the current trend of rising interest rates did make the market less optimistic about the 60/40 combination.
However, Andrew emphasized that although the price movements of stocks and bonds have become more positively correlated in the current market environment, there are also many trading days when the two assets move in opposite directions. In addition, bonds are still very good risk diversification tools.
With stocks in the U.S. and Europe at lower levels, Morgan Stanley recently raised the long-term growth potential for stocks in these two regions.
The 60/40 portfolio posted its worst performance in decades in the first half of the year
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3. Nord Stream Natural Gas Pipeline Restricted Again
At 7 a.m. Moscow time on Wednesday, Russia’s Gazprom PJSC issued a statement announcing that it would reduce the flow of natural gas from the Nord Stream pipeline to Germany by 20% because of another important gas turbine (gas turbine) Repair is required.
The Nord Stream natural gas pipeline, Russia’s main pipeline for the delivery of natural gas to the European Union (EU), has now recovered to 40% of its operation.
European benchmark natural gas prices rose as much as 12% following today’s news. Europe has suffered its most pessimistic energy crisis this year, and governments are hoping to build as much natural gas savings as possible before winter hits.
The Nord Stream pipeline is restricted again, and the natural gas crisis in Europe is likely to continue to worsen
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4. BYD’s market position rises rapidly
This year, due to the impact of the epidemic and supply chain problems, sales of many electric car companies in China have plummeted. However, BYD (BYD), backed by Warren Buffett, used this period to launch an attack on the top of the industry.
The full English name of BYD is “Build Your Dream”. The company is popular with consumers in both the U.S. and China. Starting in March this year, BYD announced that it would no longer produce traditional engine cars
In the first half of this year, BYD’s sales in China ranked second, behind the joint venture between Volkswagen Group and FAW Group. Amazingly, BYD’s sales a year ago didn’t even rank in the top 15.
The reason for BYD’s rapid growth is that the company produces batteries and some semiconductors, two very important components, which can help the company significantly control costs.
BYD’s advantage is that the company produces some of its own batteries and semiconductors, so efficiency and costs are easier to control
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5. GM gets $2.5 billion loan from U.S. Department of Energy
The U.S. Energy Department announced today that it will provide a $2.5 billion conditional loan to Ulitium Cells, a joint venture between General Motors (GM) and South Korea’s LG Energy Solution.
The funding will help Ulitium build three major battery production plants as part of President Biden’s plan to push the market for electric vehicles.
It is reported that the three factories are located in Ohio, Tennessee, and Michigan. GM said the first plant in Ohio will open by the end of this summer.
President Biden wants to help U.S. trolley brands expand production and boost their market position
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6. Walmart gets price cut to reduce stockpiling
Retail giant Walmart Inc. warned again today that it will be forced to cut prices to reduce stockpiling levels as consumers cut back on spending due to high food and energy price inflation.
Walmart’s shares fell more than 8% after hours after Walmart’s announcement.
Walmart revealed that clothing products used to bring the company the highest profit margins, but demand for such products has dropped significantly.
On August 16, Walmart will report its second-quarter earnings.
Higher-margin items, such as apparel, have seen lower demand and Walmart expects revenue to suffer
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7. China injects capital to support property developers
Financial news outlet REDD reported today that the State Council of the People’s Republic of China passed a new bill last week that could provide a total of $44.4 billion in capital injections to various real estate companies.
As soon as the news came out, the index tracking the stock prices of the top 10 real estate companies listed on the Hong Kong Stock Exchange rose by up to 5.4%. Among them, Country Garden (Country Garden) and Longfor Group (Longfor Group) rose 8.3% and 9% respectively.
It is reported that China Construction Bank and the People’s Bank of China will inject RMB 80 billion into the capital pool. The funding will help developers push the project forward, according to people familiar with the matter.
The massive funding could help multiple developers move forward with existing developments and help the industry recover
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.