good morning.
Yesterday’s unfortunate inflation report sealed the deal. “Short and shallow” has given way to “higher and longer,” high inflation and interest rates over a longer period. Investors and business his leaders would better get used to it.
Meanwhile, investors were quick to react to the news as the market plunged into its biggest sell-off since June 2020. “The biggest mistake right now is the belief that we are basically going back to prices similar to what they were before COVID. [era],” He said.
Business leaders face similar adjustments. “It may take years to bring inflation down to the Fed’s target level,” says a soon-to-be-published McKinsey paper.CEO Daily saw earlier). “Companies must utilize proven strategies to thrive in a world of low growth, high inflation and higher capital costs.”
What does that playbook look like? The consulting firm offers four pieces of advice:
— Don’t put growth projects on the back burner“Our research shows that growth-minded leaders respond decisively to short-term disruptions that can be turned into opportunities.”
— Build your talent smart“Employers overestimate ‘deal’ factors such as salary and development, and overestimate ‘relationships’ such as feeling valued by managers and the organization, dating trusted teammates, a sense of belonging, and flexible work schedules.” ” element tends to be underestimated. Employees say the most important thing. ”
—Stay on course in sustainability. “In an economically constrained environment, a full cycle view of sustainability can be a means for companies to build resilience, reduce costs and create value. ”
— Rebuild your supply chain for resilience and efficiency. “We have found that a careful assessment of supply chain vulnerabilities can reduce spending on high-risk suppliers by 40% or more. ”
It’s very simple, isn’t it?
Also, thanks to Alison Taylor of NYU for sharing with members of the Fortune Impact Initiative yesterday. Thank you for sharing this clear view of why companies’ focus on social and environmental goals is driven by business realities, not politics.
“If you think about it very simply, we see a shift from tangible value to intangible value in terms of corporate valuation. , branding, network effects, stakeholder trust, R&D, IP, etc. So all of these basically make stakeholder perception, public perception, and employee perception far greater than before. , which means it represents a significant percentage of the company’s value, and that’s a big part of investor interest.” on social and environmental indicators.
Learn more about the Fortune Impact Initiative here. More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
top News
energy market
The German government is reportedly considering nationalizing Uniper, the country’s largest natural gas importer, which still needs help to survive. Meanwhile, the European Commission now supports decoupling the impact of high gas prices on overall electricity prices so that consumers can “benefit from low-cost renewable energy”, and , believes the EU will raise more than $140 billion from windfall taxes on energy companies. profit.bloomberg
google fine
The General Court of the European Union has broadly upheld the huge fines that antitrust enforcers imposed on Alphabet several years ago. This was due to abuse of position. The court reduced the record-breaking fine slightly from $4.34 billion to $4.125 billion because its reasoning deviated slightly from the Commission’s view, but Alphabet’s current sole ‘s wish is to appeal to the EU Court of Justice from a legal point of view. (Bonus: South Korea fined both Google and Meta for privacy.) Bloomberg
Xi appears
President Xi Jinping will make his first trip outside China in more than two and a half years, visiting Kazakhstan and meeting with Russian President Vladimir Putin and other regional leaders in Uzbekistan. Xi’s diplomatic offensive comes weeks before a pivotal meeting of the Communist Party, where he is likely to win another five-year term as president. new york times
around the water cooler
According to Bloomberg, Terraform Labs co-founder Do Kwon has been served with an arrest warrant in connection with the discovery that Terra is behind the cryptocurrency runaway.
Climate change and the energy crisis are making a comeback to 1970s technology, which is being installed in 40% of new homes in the US. By David Meyer
Michael Thaler Announces New Bitcoin Bet – And The Weirdest Part Is The Math By Sean Tully Could Actually Work For Shareholders
A DARPA grant inspired MIT scientists to build a briefcase-sized desalination device that turns seawater into potable water.By Ian Mount
Uber’s CEO believes inflation may encourage participation in ride-hailing platforms.
of this edition CEO Daily Edited by David Meyer.
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