Highlight of the Week
EY Hires Cargill CFO to Manage Finances of Consulting Spinoff
- EY has recruited the former CFO of Cargill Inc. Jamie Miller to head up the finances of its consulting arm
- Miller will act as the CFO of the stand-alone publicly traded consulting arm once it splits from the audit business
- EY partners are set to begin voting on the deal this spring
- PwC, Deloitte, and KPMG have stated that they do not intend to pursue a similar strategy
Rate Curves
Rapid Report:
Supercore CPI Gains the Focus of Market Analysts
- Typically, market analysts look to the core CPI when measuring inflation which excludes volatile categories such as food and energy
- Due to falling inflation for core goods and rising inflation for services, analysts are seeking to narrow their focus on the CPI even further to a supercore which focuses on the services side of the CPI
- Fed Chair Jerome Powell has also emphasized the importance of “core services excluding housing” when measuring inflation
Several Top Rivian Executives Depart the Electric-Vehicle Startup
- Several top executives at Rivian Automotive Inc. have departed from the company amid manufacturing shortcomings and a declining stock price
- Rivian missed its manufacturing goal of 25,000 vehicles by 700 in 2022. Additionally, Rivian’s stock price has fallen 79% since its initial public offering in November 2021
- Rivian has scaled back growth initiatives and focused on bringing the production line up to speed
- Rivian’s production struggles arise as more established manufacturers dive into the EV market. Moving forward it will be interesting to see if EV startups like Rivian and Tesla can compete with the output capabilities of large automotive manufacturers like Ford, General Motors, and Volkswagen
