Pro-Palestinian protests have been sweeping major US universities, with a unified message demanding divestment from companies exploiting Israeli apartheid in Palestine. The protests range in scope, with some students demanding divestment from companies linked to Israel and others calling for an end to investments in weapons manufacturers. Common demands include transparency in university investments, severing ties with Israeli universities, and supporting a ceasefire in Gaza. Despite universities refusing to comply, students remain firm in their demands.
The concept of divestment involves selling shares in a company to avoid complicity in unethical activities. This action is intended to shift funds to more ethical investments and pressure companies or governments to change policies. While past student divestment campaigns have been successful, critics argue that the impact on corporate behavior and market trends is limited. Research shows that divestment campaigns have little effect on stock prices and company behavior, as the boycotts primarily shift shares between investors.
University investments are now more complex than in the past, involving asset managers and investments in opaque private equity funds. Calls for divestment from companies with Israeli ties raise questions about the feasibility of full divestment due to close political and trade ties between the US and Israel. Despite these challenges, students at universities across the US are continuing their protests until administrators meet their demands. Negotiations are ongoing, with discussions around reinstating suspended students and expunging their records among the points of contention.
Inflation rates in the US have remained high, surpassing the Fed’s target of 2%. Meanwhile, Eurozone inflation has been slowing down, prompting the European Central Bank to consider cutting interest rates sooner than the Federal Reserve. Fed Governor Michelle Bowman has suggested the possibility of a rate hike if progress on inflation stalls. The divergence in inflation rates between the US and Europe raises questions about the underlying causes of the inflation problem in the US compared to Europe.
Upcoming economic events include earnings reports from major companies like Domino’s Pizza, Amazon, Coca-Cola, McDonald’s, and Apple. Economic indicators such as the Chicago PMI, consumer confidence, durable goods orders, and labor market data will provide further insights into the state of the US economy. The Federal Reserve’s interest rate decision and Chair Jerome Powell’s news conference will be closely watched for signals on the future direction of monetary policy. The ongoing divergence in inflation rates between the US and Europe adds uncertainty to the economic outlook.
