FT News Briefing Bonds are back, baby!
Aug 16, 2024
A major U.S. oilfield services company is controversially expanding its Russian operations despite geopolitical tensions. Investors are flocking back to bonds amidst recession worries, revealing a fascinating shift in the market. Surging U.S. retail sales signal hopes for an economic 'soft landing.' Meanwhile, Coca-Cola faces a staggering $16 billion tax dispute with the IRS over profit-shifting tactics. The complexities of brand valuation and tax strategies come to the forefront as this legal battle unfolds.
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SLB in Russia
- SLB, a U.S. oilfield services company, is expanding its operations in Russia.
- This contrasts with many Western companies leaving after the Ukraine invasion.
Bonds Rally
- Investors are returning to U.S. government bonds at levels not seen since 2021.
- This is driven by fears of a potential U.S. recession and falling interest rates.
Retail Sales Rebound
- Recent U.S. retail sales data shows a significant 1% jump in July, the highest in 18 months.
- This contradicts earlier reports suggesting decreased consumer spending.