What I Wrote Last Week
Business
The buy now, pay later holiday debt hangover has arrived, as consumers wonder how they’ll pay bills. It is crazy that some people max out credit cards and still borrow from BNPL providers, especially when it’s only for discretionary purchases, not essential ones. Access to credit is a tool. Users of such tool must know how to use it. Hence, we need to provide basic personal finance and also make sure that there is an oversight mechanism. Reporting the use of BNPL to bureaus is necessary, but that would potentially impact the demand and the business of point-of-sale loan companies.
Stocks Are at Record Highs, but Things Will Only Get Harder From Here. It’s anybody’s guess how the stock market will be in 2024. What I think is more likely to happen is the Feds maintaining rates for the next 6 months. Rate cuts may still be possible, but the odds that they take place in Q1 or Q2 are low.
RFID is the hot decades-old technology being touted by retailers and vendors. “According to Accenture, 93% of North American retailers use RFID in some capacity, and those that have fully adopted RFID reported some 10% ROI in 2021 compared to 9.2% two years prior. Many retailers today use RFID to understand their retail shrink, a problem that covers theft, as well as accounting errors and vendor fraud. Now, L’Orange said, the cost of RFID has come down “astronomically” from about 10 or 11 cents per tag to four, five or six cents. Joe Coll, Macy’s vp of asset protection operations & strategy, said during a panel on Monday. “In the past seven to eight years, it is definitively the biggest innovation change that we’ve had inside of Macy’s,” he said.“
Charles Schwab Just Survived a Year From Hell. The Trouble Isn’t Over Yet. It doesn’t sound like 2024 is going to be a great year for Charles Schwab. If the elevaed interest rates in 2023 impacted the company’s top and bottom line, the same thing is likely going to persist for at least a few months this year. Additionally, the way the company is handling its employees and the morale will sap the productivity and the culture. For good measure, the giant acquisition of TD Ameritrade has already shown cracks and trouble.
The Disney Sequel Bob Iger Never Wanted. Disney is facing a myriad of challenges that make Bob Iger’s second stint as CEO seem like a nightmare. Deterioration in cable businesses, the disappointing box-office results of theatrical releases, the struggle of Disney+ and the evergreen question of succession are among the big obstacles that Bob has to overcome. And I am not sure he can put all of this on Bob Chapek, who was in charge for only 2 years. Bob Iger may have to look into the mirror to find someone whose actions, at least partially, lead to where Disney is today
Other Stuff I Find Interesting
How the U.S. Is Derailing China’s Influence in Africa. I have long been surprised at why the US let China roam free and gain influence in a strategic continent such as Africa. Africa is home to tons of natural resources, millions of young citizens and plenty of business opportunities. Hence, I am relatively pleased to read what the Biden administration has done to rectify the situation and give China a run for its money. An attitude of collaboration is key. The US must not approach countries like it is doing them a favor and dictating terms.
Last male of his kind: The rhino that became a conservation icon. It is sad to read that the northern white rhinoceros are not a “functionally extinct” species as there is no male alive and the two remaining females can’t be pregnant. A lot of people haven’t seen a northern white rhino and future generations won’t. And for what? For people’s misguided belief that rhino horns can cure diseases or for the sick tendency to show off hunting skills? We have nobody but ourselves to blame.
“It’s as if I had never left China”: Vietnam’s tech worker Chinatown. It’s disappointing to see this happen. It’s not unusual to have citizens from the neighboring country in towns near the border. However, China always comes up with low-key schemes to infiltrate and grow influence in its neighbors. It is willing to spend years building Chinese community in other countries and becoming indispensable economically. Once its footing is strong, it will start revealing its hands and benefiting its own at the expense of others. It is happening in Laos, Cambodia, Taiwan, Africa and many other countries. Sadly, I envision the same fate for my own country.
The Most Important Man in Finance You’ve Never Heard Of.
Why More Chinese Workers Are Settling for Less Pay. “Officially, the unemployment rate in Chinese cities was 5.1% in December. While that is higher than the U.S. unemployment rate of 3.7%, it is still relatively low, and better than the full-year average rate of 5.6% in 2022. However, economists have long raised questions about China’s official unemployment report, which only covers urban dwellers, and counts anyone who works an hour or more in a week as fully employed. If underemployment spreads, it could erode confidence and spending further. It could also slow China’s already weak productivity growth, says David Wang, an economics professor at Virginia Tech. That could happen if more people are stuck in jobs they don’t like or that don’t drive innovation, he says.”
Stats
FedNow currently has 400 participating partners, a small number given the thousands of financial institutions in the US
At Least 72 Deaths in U.S. Are Connected to Severe Winter Weather
Remote workers are 35% more likely to be laid off in 2023
Minh Quang Duong 
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