Bitcoin has choppy week with El Salvador debut, PayPal buys now for BNPL, and a mega-endowment drops fossil fuels: This Week in Finance
Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe to be notified of each edition. This week:
U.S. jobless claims drop to pandemic low
First-time filings for U.S. unemployment insurance benefits didn’t just notch another pandemic low last week of 310,000 — they fell by more than expected and the most since June. The claims, a proxy for layoffs, show employers are holding onto workers despite the spread of the delta variant. But a recent Census Household Pulse Survey also shows that the number of Americans who say they’re not working because of concerns about “getting or spreading the virus” has jumped by almost 30%, a sign that holding on to workers may get harder. 💲 Here's what people are saying.
Bitcoin's rocky El Salvador debut
El Salvador has gone crypto, becoming the first country to adopt bitcoin as legal tender — and it wasn't without first-day hiccups. The digital coin fell by 17%, to $43,000, while the government’s app for transactions went offline briefly and protesters converged on the capital. By allowing bitcoin's use alongside the U.S. dollar, the government is hoping to make financial services more affordable in an economy that is mostly cash-based and underground.
Big banks should watch their backs
After emerging from depths of the pandemic relatively unscathed, Canada’s Big Six banks are gearing up to face new challenges in an increasingly competitive financial market. The Financial Post reports the looming threat of a new open banking era is pushing incumbent financial institutions to offer new services and rewards in a bid to win customers. National Bank has become the bank-affiliated brokerage in Canada to offer commission-free trading, while other banks are trying their hands at the “buy now, pay later” trend. 💲 Here's what people are saying.
PayPal buys into 'buy now, pay later'
The "buy now, pay later" craze is going strong, with PayPal set to acquire Japan-based BNPL unicorn Paidy for $2.7 billion. PayPal is aiming to gain a foothold in Japan's e-commerce market — already the third-largest in the world but where cash is still king. The move underscores the soaring popularity of splitting purchases over multiple installments, to the dismay of some who say "buy now, pay later" may encourage reckless borrowing. 💲 Here's what people are saying.
Recommended by LinkedIn
Mega-endowment to end fossil fuel investing
Harvard University's endowment, which managed more than $40 billion as of last year, says it's ending all investments in fossil fuels, capping a years-long effort by climate activists and many students and alumni. Harvard's move to stop direct investments in oil and gas — and let indirect investments end — is expected to ripple across higher education as environmentalists increase pressure. The American Petroleum Institute says it hopes other schools continue "working with our industry to achieve ambitious climate goals together," echoing critics who say schools with stakes in fossil fuels should work to reshape the industry from within. 💲 Here's what people are saying.
Shipping remains in supply-chain turmoil
Pandemic-snarled supply chain problems are making shipping container costs skyrocket. CNN reports they’re "incredibly scarce and extremely expensive," citing data from a maritime consultancy that said the price of a 40-foot container on a standard China-to-Europe route spiked from $1,920 last year to $14,000 now; prices to buy a container outright doubled. The increase is brutal for smaller businesses as major holidays approach. Large retailers, including Walmart, Home Depot, and Ikea, are leasing entire ships, buying containers, or leasing blocks of containers strictly for their own use. 💲 Here's what people are saying.
Who deserves stock: CEOs or workers?
Virtually all CEOs are shareholders in their businesses. Should employees be too? Conditions are "ripe" for an overhaul of pay practices, argues an opinion piece in the Financial Times, so that companies' relations with investors improve and employees reap similar rewards as ever-wealthier executives. Boards of directors should reflect on what could happen "if they took a chunk of the stock reserved for executives and distributed it around people for whom even a small stock payout would be a transformative incentive," the FT writes. Firms that have experimented with it have already seen positive results. 💲 Here's what people are saying.
More leaders eye financial wellness
Workers' financial well-being is increasingly on the radar of corporate leaders as the labor market remains tight — with job openings at a record high — and as regulators signal it may be a new area of interest for them. The top U.S. financial regulator, SEC Chair Gary Gensler, recently asked his staff to consider requiring a new disclosure from companies that would include "human capital" metrics such as compensation and benefits. A group led by nonprofit JUST Capital and fintech giant PayPal recently launched a Worker Financial Wellness Initiative, committing to ongoing assessments of employees' financial vulnerability and pledging to improve those conditions. Chipotle, Chobani, Even, Prudential Financial, and Verizon have since joined the cause. 💲 Here's what people are saying.
With Cate Chapman, Jessica Hartogs, Kelli Nguyen, Gianna Prudente, Yunita Ong, Jake Perez, and Emma Hudson.
What's your take on the week's news and other developments impacting you or your business? Join the conversation in the comments below.
I'm searching for a cashier job
2yC'EST BON
Strategic Leader l Finance & Controllership I Cofounder & COO l Technical Data-driven and Qualitative Insights I Aerospace & Defense I Sustainability I SaaS I 2x IPO
3yThanks for the weekly summary Devin Banerjee, CFA.
Ensuring money MAGNIFIES your values instead of UNDERMINING them so you can enjoy the life of your dreams without regret.
3yNew here. Thought this might be a serious place to get financial news. Find this headline about Bitcoin ridiculous. BTC is worthless speculation, not an investment. People that treat it as an investment are irresponsible. Buh-bye.
Devin, Nice Weekly Financial Roundup! Unemployment is high bur salaries are increasing!
The Italian translator who contributes to your success ▪️ From English and German to Italian and Swiss Italian ▪️ PR, Corporate Communications, Content Marketing ▪️
3yEmployees would certainly be more motivated if they received stocks likes CEOs do.