As Pro-Palestinian protests continue to sweep across major US universities, a unifying message has emerged, with chants such as “Disclose! Divest! We will not stop, we will not rest!” being heard at universities like Princeton and the University of Southern California. Student protesters, particularly at Columbia University, are demanding divestment from companies profiting from Israeli apartheid, genocide, and occupation in Palestine. The demands vary in scope among different universities, with some calling for divestment from weapons manufacturers and others seeking universities to sever academic ties with Israeli institutions.
Israel denies accusations of genocide, but the student protesters remain steadfast in their demands for divestment. The concept of divestment involves selling off shares of a company to avoid complicity in unethical activities and make a public statement. While divestment campaigns have been successful in the past in areas such as apartheid South Africa, critics argue that the impact on corporate behavior is tenuous. Research has shown that stock prices remain steady during divestment campaigns, and it may not necessarily lead to changes in company behavior.
University investments are now more complex than in the past, with endowments managed by asset managers and invested in opaque private equity funds. It may be difficult to fully divest from companies with ties to Israel due to global economic interconnections. Despite the challenges, college students across the US continue to protest and demand divestment from companies and industries they view as unethical. Negotiations between students and university administrations are ongoing at various campuses, with potential agreements on issues such as reinstating suspended students and expunging their records.
In terms of inflation, the United States appears to have a bigger problem than Europe, as annual US inflation has increased while the eurozone has seen a slowdown in consumer price inflation. The European Central Bank is expected to start cutting interest rates before the Federal Reserve in the US. There are indications that the Fed may consider raising interest rates if progress on inflation stalls or reverses. The differences in inflation rates between the US and Europe have implications for monetary policy decisions in the respective regions.
Looking ahead, the upcoming week includes a range of earnings reports from companies like Amazon, McDonald’s, Mastercard, Apple, and more. Economic indicators such as the Chicago PMI, consumer confidence, new orders for durable goods, and job market data will also be released. The Federal Reserve will announce its latest interest rate decision, and Chair Jerome Powell is scheduled to hold a news conference. These events and reports will provide insights into the state of the economy and potential future monetary policy actions.