Daily Archive: September 26, 2020

Big Tech is suffering from ‘mean reversion.’ And the downdraft isn’t over yet

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No force in financial markets is as powerful and predictable as “mean reversion,” the tendency of stock and bond prices that are extraordinarily high or low versus history to return to their long-term norms. The big drop we’re now seeing in tech shares looks like a classic case in point, as economic gravity takes charge, pulling high-flying prices closer to where they’ve traditionally hovered relative to earnings. We’re hearing sundry explanations for the fall—”a second lockdown is on the way,” “chances for new stimulus are fading,” or “the trade war with China is endangering Big Tech”—but the one that makes the most sense is most basic: mean reversion that comes and goes, but always comes again.

In a previous story, this reporter studied the amazing trajectory of Read More

South African Airways’ subsidiary suspends services to parent over non-payment By Reuters

© Reuters. FILE PHOTO: South African Airways (SAA) plane taxis after landing at O.R. Tambo International Airport in Johannesburg

JOHANNESBURG (Reuters) – South African Airways’ maintenance subsidiary has withdrawn its services to its parent after the struggling airline failed to pay money it owes, SAA spokesman Tlali Tlali told local news channel eNCA on Saturday.

Administrators took control of SAA in December after almost a decade of financial losses, and have been trying to keep it afloat as the coronavirus pandemic compounds its problems.

Tlali said SAA Technical, a subsidiary of SAA that provides critical maintenance services including inspections required before a flight can take off, said in a letter it had taken the decision after the national carrier did not pay for services rendered.

“SAA Technical… as a company registered on its own is pursuing its commercial interests,” Tlali said, adding meetings would take place over the weekend to

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